Document:

Exhibit
4.17 

 

ESCROW
AGREEMENT

 

THIS
AGREEMENT (this “Agreement”) is made this May [__], 2019 by and among Chanticleer Holdings, Inc., a Delaware
corporation (the “Issuer”), whose name and address appears on the Information Sheet (as defined herein) attached
to this Agreement and Securities Transfer Corporation, a Texas corporation with its principal address at, 2901 N. Dallas Parkway,
Suite 380, Plano, Texas 75093 (the “Escrow Agent”).

 

W
I T N E S S E T H:

 

WHEREAS,
the Issuer has filed with the Securities and Exchange Commission (the “SEC”) a Registration Statement (the
“Registration Statement”) covering a proposed offering of subscription rights (the “Rights”)
as described on the Information Sheet (the “Rights Offering”);

 

WHEREAS,
the Issuer is distributing, at no charge, to holders of record on June 7, 2019 of its common stock and certain warrants to purchase
shares of its common stock, non-transferrable subscription rights to purchase shares of the Issuer’s common stock, $0.0001
par value per share (the “Shares”), at the subscription price of $[_____] per Share, for a maximum of $16.0
million of subscription proceeds;

 

WHEREAS
the parties propose to establish an Escrow Account (the “Escrow Account”), to which subscription monies
which are received by the Escrow Agent in connection with such Rights Offering are to be credited, and the Escrow Agent is willing
to establish the Escrow Account and the terms are subject to the conditions hereinafter set forth; and

 

WHEREAS,
the Escrow Agent has agreed to establish a special Bank Account with EagleBank (the “Bank”) into which the
subscription monies, which are received by the Escrow Agent and credited to the Escrow Account are to be deposited.

 

NOW,
THEREFORE in consideration of the premises and mutual covenants herein contained, the parties hereto hereby agree as follows:

 

	 	1.	Information
    Sheet. Each capitalized term not otherwise defined in this Agreement shall have the meaning set forth for such term
    on the information sheet which is attached to this Agreement and is incorporated by reference herein and made a pact hereof
    (the “Information Sheet”).
	 	 	 
	 	2.	Establishment
    of the Bank Account

 

	 	a)	The
    Escrow Agent shall establish a non-interest bank account at the branch of the Bank selected by the Escrow Agent (heretofore
    defined as the “Bank Account”). The purpose of the Bank Account is for (a) the deposit of all subscription
    monies (checks or wire transfers) which are received from prospective purchasers of the Shares and are delivered to the Escrow
    Agent, (b) the holding of amounts of subscription monies which are collected through the banking system, and (c) the disbursement
    of collected funds, all as described herein.

 

    	 	1	 

    	 	 	 

    

 

	 	b)	On
    or before the date of the initial deposit in the Bank Account pursuant to this Agreement, the Issuer shall notify the Escrow
    Agent in writing of the effective date of the Registration Statement (the “Effective Date”), and the Escrow
    Agent shall not be required to accept any amounts for credit to the Escrow Account or for deposit in the Bank Account prior
    to its receipt of such notification.
	 	 	 
	 	c)	The
    Initial Offering Period, which shall be deemed to commence on the Effective Date, shall consist of the number of calendar
    days or business days set forth on the Information Sheet. The Initial Offering Period shall be extended by an Extension Period
    only if the Escrow Agent shall have received written notice thereof at least three (3) business days prior to the expiration
    of the Initial Offering Period. The Extension Period, which shall be deemed to commence on the next calendar day following
    the expiration of the Initial Offering Period, shall consist of the number of calendar days or business days set forth in
    such written notice, but in no event more than that number of calendar days or business days set forth on the Information
    Sheet. The last day of the Initial Offering Period, or the last day of the Extension Period (if the Escrow Agent has received
    written notice thereof as hereinabove provided), is referred to herein as the “Termination Date.” Except
    as provided in Section 4(c) hereof, after the Termination Date the Escrow Agent shall not accept any additional amounts representing
    payments by prospective purchasers.

 

	 	3.	Deposits
    to the Bank Account.

 

	 	a)	All
    monies in the form of checks or wire transfers which the Escrow Agent receives from or on behalf of prospective purchasers
    of the Shares shall be credited to the Escrow Account. All checks delivered to the Escrow Agent shall be made payable to “STC
    as Rights Agent for Chanticleer Holdings, Inc.” Any check payable other than to the Escrow Agent as required hereby
    shall be returned to the prospective purchaser (together with any Subscription Information, as defined below or other documents
    delivered therewith) following receipt of such check by the Escrow Agent, and such check shall be deemed not to have been
    delivered to the Escrow Agent pursuant to the terms of this Agreement.
	 	 	 
	 	b)	Promptly
    after receiving subscription monies as described in Section 3(a), the Escrow Agent shall deposit the same into the Bank Account.
    Amounts of monies so deposited are hereinafter referred to as “Escrow Amounts.” The Escrow Agent shall
    cause the Bank to process all Escrow Amounts for collection through the banking system. Simultaneously with each deposit to
    the Escrow Account, the Escrow Agent shall be given a written account with respect to each subscription, in writing, which
    account shall set forth, among other things, the name, address, and the tax identification number of the purchaser, the amount
    of Shares subscribed for by such purchase, and the aggregate dollar amount of such subscription (collectively, the “Subscription
    Information’).

 

    	 	2	 

    	 	 	 

    

 

	 	c)	The
    Escrow Agent shall not be required to accept for credit to the Escrow Account or for deposit into the Bank Account checks
    which are not accompanied by the appropriate Subscription Information, which at minimum shall include the name address, tax
    identification number and the number of Shares. Wire transfers representing payments by prospective purchasers shall not be
    deemed deposited in the Escrow Account until the Escrow Agent has received in writing the Subscription Information required
    with respect to such payments.
	 	 	 
	 	d)	The
    Escrow Agent shall not be required to accept in the Escrow Account any amounts representing payments by prospective purchasers,
    whether by check or wire, except during the Escrow Agent’s regular business hours.
	 	 	 
	 	e)	Only
    those Escrow Amounts, which have been deposited in the Bank Account and which have cleared the banking system and have been
    collected by the Escrow Agent, are herein referred to as the “Fund.”
	 	 	 
	 	f)	If
    the Rights Offering is terminated before the Termination Date, the Escrow Agent shall refund any portion of the Fund prior
    to disbursement of the Fund in accordance with Article 4 hereof upon instructions in writing signed by the Issuer.

 

	 	4.	Disbursement
    from the Bank Account.

 

	 	a)	If
    by the close of regular banking hours on the Termination Date the Issuer informs the Escrow Agent that the Rights Offering
    has been terminated, (the “Termination Contingencies”), then the Escrow Agent shall promptly refund to
    each prospective purchaser the amount of payment received from such purchaser which is then held in the Fund or which thereafter
    clears the banking system, without interest thereon or deduction therefrom, by drawing checks on the Bank Account for the
    amounts of such payments and transmitting them to the purchasers. In such event, the Escrow Agent shall promptly notify the
    Issuer of its distribution of the Fund.
	 	 	 
	 	b)	If
    at any time up to the close of regular banking hours on the Termination Date the Termination Contingencies have been satisfied,
    the Escrow Agent shall promptly notify the Issuer of such fact in writing. The Escrow Agent shall promptly disburse the Fund,
    by drawing checks on the Bank Account in accordance with instructions in writing signed by the Issuer as to the disbursement
    of the Fund, promptly after it receives such instructions.

 

    	 	3	 

    	 	 	 

    

 

	 	c)	Upon
    disbursement of the Fund pursuant to the terms of this Article 4, the Escrow Agent shall be relieved of all further obligations
    and released from all liability under this Agreement. It is expressly agreed and understood that in no event shall the aggregate
    amount of payments made by the Escrow Agent exceed the amount of the Fund.

 

	 	5.	Rights,
    Duties and Responsibilities of the Escrow Agent. It is understood and agreed that the duties of the Escrow Agent are
    purely ministerial in nature, and that:

 

	 	a)	The
    Escrow Agent shall notify the Issuer on a weekly basis, of the Escrow Amounts which have been deposited in the Bank Account
    and of the amounts, constituting the Fund, which have cleared the banking system and have been collected by the Escrow Agent.
	 	 	 
	 	b)	The
    Escrow Agent shall not be responsible for or be required to enforce any of the terms or conditions of the dealer-manager agreement
    or any other agreement between the Dealer-Manager and the Issuer nor shall the Escrow Agent be responsible for the performance
    by the Dealer-Manager or the Issuer of their respective obligations under this Agreement.
	 	 	 
	 	c)	The
    Escrow Agent shall not be required to accept any Subscription Information pertaining to prospective purchasers unless such
    Subscription Information is accompanied by checks or wire transfers meeting the requirements of Section 3(a), nor shall the
    Escrow Agent be required to keep records of any information with respect to payments deposited except as to the amount of
    such payments; however, the Escrow Agent shall notify the Issuer within a reasonable time of any discrepancy between the amount
    set forth in any Subscription Information and the amount delivered to the Escrow Agent therewith. Such amount need not be
    accepted for deposit in the Escrow Account until such discrepancy has been resolved.
	 	 	 
	 	d)	The
    Escrow Agent shall be under no duty or responsibility to enforce collection of any check delivered to it hereunder. The Escrow
    Agent, within a reasonable time, shall return any check received which is dishonored, together with the Subscription Information,
    if any, which accompanied such check.
	 	 	 
	 	e)	The
    Escrow Agent shall be entitled to rely upon the accuracy, act in reliance upon the contents, and assume the genuineness of
    any notice, instruction, certificate, signature, instrument or other document which is given to the Escrow Agent pursuant
    to this Agreement without the necessity of the Escrow Agent verifying the truth or accuracy thereof. The Escrow Agent shall
    not be obligated to make any inquiry as to the authority, capacity, existence or identity or any person purporting to give
    any such notice or instructions or to execute any such certificate, instrument or other document.

 

    	 	4	 

    	 	 	 

    

 

	 	f)	If
    the Escrow Agent is uncertain as to its duties or rights hereunder or shall receive instructions with respect to the Bank
    Account, the Escrow Amounts or the Fund which, in its sole determination, are in conflict either with other, instructions
    received by it or with any provision of this Agreement, it shall be entitled to hold the Escrow Amounts, the Fund, or a portion
    thereof, in the Bank Account pending the resolution of such uncertainty to the Escrow Agent’s sole satisfaction, by
    final judgment of a court or courts of competent jurisdiction or otherwise; or the Escrow Agent, at its sole option, may deposit
    the Fund (and any other Escrow Amounts that thereafter become part of the Fund) with the Clerk of a court of competent jurisdiction
    in a proceeding to which all parties in interest are joined. Upon the deposit by the Escrow Agent of the Fund with the Clerk
    of any court, the Escrow Agent shall be relieved of all further obligations and released from all liability hereunder.
	 	 	 
	 	g)	The
    Escrow Agent shall not be liable for any action taken or omitted hereunder, or for the misconduct of any employee, agent or
    attorney appointed by it, except in the case of willful misconduct or gross negligence. The Escrow Agent shall be entitled
    to consult with counsel of its own choosing and shall not be liable for any action taken, suffered or omitted by it in accordance
    with the advice of such counsel.
	 	 	 
	 	h)	The
    Escrow Agent shall have no responsibility at any time to ascertain whether or not any security interest exists in the Escrow
    Amounts, the Fund or any part thereof or to file any statement under the Uniform Commercial Code with respect to the Fund
    or any part thereof.

 

	 	6.	Amendment:
    Resignation.

 

	 	a)	This
    Agreement may be altered or amended only with the written consent of the Issuer and the Escrow Agent.
	 	 	 
	 	b)	The
    Escrow Agent may resign for any reason upon thirty (30) business days’ written notice to the Issuer. Should the Escrow
    Agent resign as herein provided, it shall not be required to accept any deposit, make any disbursement or otherwise
    dispose of the Escrow Amounts or the Fund, but its only duty shall be to hold the Escrow Amounts until they clear the banking
    system and the Fund for a period of not more than five (5) business days following the effective date of such resignation,
    at which time (a) if a successor escrow agent shall have been appointed and written notice thereof (including the name and
    address of such successor escrow agent) shall have been given to the resigning Escrow Agent by the Issuer and such successor
    escrow agent, then the resigning Escrow Agent shall pay over to the successor escrow agent the Fund, less any portion thereof
    previously paid out in accordance with this Agreement; or (b) if the resigning Escrow Agent shall not have received written
    notice signed by the Issuer and a successor escrow agent, then the resigning Escrow Agent shall promptly refund the amount
    in the Fund to each prospective purchaser without interest thereon or deduction therefrom, and the resigning Escrow Agent
    shall promptly notify the Issuer in writing of its liquidation and distribution of the Fund; whereupon, in either case, the
    Escrow Agent shall be relieved of all further obligations and released from all liability under this Agreement. Without limiting
    the provisions of Section 8 hereof, the resigning Escrow Agent shall be entitled to be reimbursed by the Issuer and the Dealer-Manager
    for any actual expenses incurred in connection with its resignation, transfer of the Fund to a successor escrow agent or distribution
    of the Fund pursuant to this Section 6.

 

    	 	5	 

    	 	 	 

    

 

	 	7.	Representations
    and Warranties. The Issuer hereby represents and warrants to the Escrow Agent that:

 

	 	a)	No
    party other than the parties hereto and the prospective purchasers have, or shall have, any lien, claim or security interest
    in the Escrow Amounts or the Fund or any part thereof.
	 	 	 
	 	b)	No
    financing statement under the Uniform Commercial Code is on file in any jurisdiction claiming a security interest in or describing
    (whether specifically or generally) the Escrow Amounts or the Fund or any part thereof.
	 	 	 
	 	c)	The
    Subscription Information submitted with each deposit shall, at the time of submission and at the time of disbursement of the
    Fund, be deemed a representation and warranty that such deposit represents a bona fide payment by the purchaser described
    therein for the amount of Shares set forth in such Subscription Information.
	 	 	 
	 	d)	All
    of the information contained in the Information Sheet is, as of the date hereof, and will be, at the time of any disbursement
    of the Fund, true and correct.

 

	 	8.	Fees
    and Expenses. The Escrow Agent shall be entitled to the Escrow Agent Fees set forth on the Information Sheet, payable
    as and when stated therein. In addition, the Issuer agrees to reimburse the Escrow Agent for reasonable expenses incurred
    in connection with this Agreement, including, but not limited to, reasonable counsel fees. The Escrow Agent shall have a lien
    upon the Fund to the extent of its fees for services as Escrow Agent.
	 	 	 
	 	9.	Indemnification
    and Contribution.

 

	 	a)	The
    Issuer agrees to indemnify the Escrow Agent and its officers, directors, employees, agents and shareholders (collectively
    referred to as the “Indemnitees”) against, and hold them harmless of and from, any and all loss, liability,
    cost, damage and expense, including without limitation, reasonable counsel fees, which the Indemnitees may suffer or incur
    by reason of any action, claim or proceeding brought against the Indemnitees arising out of or relating in any way to this
    Agreement or any transaction to which this Agreement relates, unless such action, claim or proceeding is the result of the
    willful misconduct or gross negligence of the Indemnitees.

 

    	 	6	 

    	 	 	 

    

 

	 	b)	If
    the indemnification provided for in Section 9(a) is applicable, but for any reason is held to be unavailable, the Issuer shall
    contribute such amounts as are just and equitable to pay, or to reimburse the Indemnitees for, the aggregate of any and all
    losses, liabilities, costs, damages and expenses, including counsel fees, actually incurred by the Indemnitees as a result
    of or in connection with, and any amount paid in settlement of, any action, claim or proceeding arising out of or relating
    in any way to any actions or omissions of the Indemnitors.
	 	 	 
	 	c)	The
    provisions of this Article 9 shall survive any termination of this Agreement, whether by disbursement of the Fund, resignation
    of the Escrow Agent or otherwise.

 

	 	10.	Governing
    Law and Assignment. This Agreement shall be construed in accordance with and governed by the laws of the State of
    Texas and shall be binding upon the parties hereto and their respective successors and assigns; provided, however, that any
    assignment or transfer by any party of its rights under this Agreement or with respect to the Escrow Amounts or the Fund shall
    be void as against the Escrow Agent unless (a) written notice thereof shall be given to the Escrow Agent; and (b) the Escrow
    Agent shall have consented in writing to such assignment or transfer.
	 	 	 
	 	11.	Notices. All notices required to be given in connection with this Agreement shall be sent by registered or certified mail,
    return receipt requested, or by hand delivery with receipt acknowledged, or by the Express Mail service offered by the United
    States Post Office, and addressed, if to the Issuer at its respective address set forth on the Information Sheet, and if to
    the Escrow Agent, at its address set forth above.
	 	 	 
	 	12.	Severability. If any provision of this Agreement or the application thereof to any person or circumstance shall be determined to
    be invalid or unenforceable, the remaining provisions of this Agreement or the application of such provision to persons or
    circumstances other than those to which it is held invalid or unenforceable shall not be affected thereby and shall be valid
    and enforceable to the fullest extent permitted by law.
	 	 	 
	 	13.	Execution
    in Counterparts. This Agreement may be executed in several counterparts or by separate instruments, and all of such
    counterparts and instruments shall constitute one agreement, binding on all of the parties hereto.
	 	 	 
	 	14.	Entire
    Agreement. This Agreement constitutes the entire agreement between the parties hereto with respect to the subject
    matter hereof and supersedes all prior agreements and understandings (written or oral) of the parties in connection therewith.

 

[Remainder
of Page Intentionally Left Blank; Signature Pages to Follow]

 

    	 	7	 

    	 	 	 

    

 

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

 

	 	SECURITIES
    TRANSFER CORPORATION
	 	 	 
	 	BY:	 
	 	NAME:	 
	 	TITLE:	 
	 	 	 
	 	CHANTICLEER
    HOLDINGS, INC.
	 	 	 
	 	BY:	              
	 	NAME:	 
	 	TITLE:	 

 

    	 	8	 

    	 	 	 

    

 

EXHIBIT
A

 

ESCROW
AGREEMENT INFORMATION SHEET

 

The
Issuer:

 

Name:
Chanticleer Holdings, Inc.

Address:
7621 Little Avenue, Suite 414

Charlotte,
NC 28226

 

The
Dealer-Managers

 

Name:
Chardan Capital Markets, LLC

Address:
17 State Street, Suite 2100

New
York, NY 10004

 

Name:
The Oak Ridge Financial Services Group, Inc.

Address:
701 Xenia Avenue, Suite 100

Minneapolis,
MN 55416

 

The
Rights:

 

Non-transferrable
subscription rights to purchase shares of the Issuer’s common stock.

 

Conditions
Required for Disbursement of the Escrow Account:

 

Plan
of Distribution of the Rights:

 

Initial
Offering Period: Through 5:00 p.m., Eastern time, on [_____], 2019.

Extension
Period, if any: up to thirty (30) calendar days after the expiration of the Initial Offering Period.

 

Title
of Escrow Agent:

 

“Securities
Transfer Corporation, as Rights Agent for Chanticleer Holdings, Inc.”

 

Escrow
Agent Fees and Charges:

 

$3,500.00
payable at signing of the Escrow Agreement. Includes up to 200 incoming shareholder payments. $10 per incoming shareholder payment
thereafter. A fee of $500 will be payable for document review services related to each amendment/extension to the Escrow Agreement.
In addition, the Escrow Agent shall be paid a fee of $250.00 for each additional escrow break beyond the Initial Escrow Break.

 

	Distribution
    charges:	 
	 	$4.99
    per check
	 	$100.00
    per check returned (NSF) check
	 	Bank
    Fees + $10 per wireExhibit
10.51

 

CHANTICLEER
HOLDINGS, INC.

 

DEALER-MANAGER
AGREEMENT

 

May
__, 2019

 

Chardan
Capital Markets, LLC

17
State Street, Suite 2100

New
York, NY 10004

 

The
Oak Ridge Financial Services Group, Inc.

701
Xenia Avenue, Suite #100

Minneapolis,
Minnesota 55416

 

As
Dealer-Managers

 

Ladies
and Gentlemen:

 

The
following will confirm our agreement relating to the proposed rights offering (the “Rights Offering”) to be
undertaken by Chanticleer Holdings, Inc., a Delaware corporation (the “Company”), pursuant to which the Company
will distribute to holders of record of its common stock, par value $0.0001 per share (the “Common Stock”),
and certain holders of its warrants to purchase shares of Common Stock subscription rights (the “Rights”) to
subscribe for up to an aggregate of   _______ shares of Common Stock (the “Rights Shares”), at a
subscription price of $____ per Rights Share in cash (the “Subscription Price”).

 

1.
The Rights Offering.

 

(a)
The Company proposes to undertake the Rights Offering, pursuant to which each holder of Common Stock and certain warrants shall
receive three Rights for each share of Common Stock and each share of Common Stock underlying warrants held of record at 4:00
p.m. New York City time on June 7, 2019 (the “Record Date”). Holders of Rights will be entitled to subscribe
for and purchase, at the Subscription Price, one Share for each Right held (the “Basic Subscription Right”).
Rights may only be exercised for whole Rights Shares; no fractional Rights Shares will be issued in the Rights Offering.

 

(b)
The Rights will not trade or be listed for quotation on any exchange or service, and shall be non-transferable.

 

(c)
Any holder of Rights who fully exercises all Basic Subscription Rights issued to such holder is entitled to subscribe for Rights
Shares which were not otherwise subscribed for by others pursuant to their Basic Subscription Rights (the “Over-Subscription
Right”). The Over-Subscription Right shall allow a holder of a Right to subscribe for an additional amount of Rights
Shares above the amount which such holder was otherwise entitled to subscribe. Rights Shares acquired pursuant to the Over-Subscription
Right are subject to allotment, as more fully discussed in the Prospectus (as defined herein).

 

    	 	1	 

    	 	 	 

    

 

(d)
The Rights will expire at 5:00 p.m., New York City time, on ____ __, 2019 (the “Expiration Date”). The Company
shall have the right to extend the Expiration Date in its sole discretion. Any Rights not exercised on or before the Expiration
Date will expire worthless without any payment to the holders of unexercised Rights.

 

(e)
All funds from the exercise of Basic Subscription Rights and Over- Subscription Rights will be deposited with Securities Transfer
Corporation (“STC”), as subscription agent (in this context, the “Subscription Agent”),
and held in a segregated account with the Subscription Agent pending a final determination of the number of Rights Shares to be
issued pursuant to the exercise of Basic Subscription Rights and Over-Subscription Rights. The Company may conduct a closing of
the Rights Offering (a “Closing”) at its sole discretion at any time following the Expiration Date.

 

2.
Appointment as Dealer-Manager; Role of Dealer-Manager.

 

(a)
On the terms and conditions set forth herein, the Company hereby appoints Chardan Capital Markets, LLC (“Chardan”)
and The Oak Ridge Financial Services Group, Inc. (“Oak Ridge”) as the dealer-managers (each a “Dealer-Manager”
and together, the “Dealer-Managers”) for the Rights Offering and authorizes the Dealer-Managers to act as such
in connection with the Rights Offering.

 

(b)
The services previously provided by the Dealer-Managers under that certain engagement letter, dated April 5, 2019, between the
Company and the Dealer-Managers (the “Engagement Letter”), or to be provided by the Dealer-Managers through
the Closing, consist of the following:

 

(i)
providing marketing assistance in connection with the conduct of the Rights Offering (which shall include assisting the Company
in drafting a presentation that may be used to market the Rights Offering to investors and assistance in the coordination of the
Rights Offering together with STC);

 

(ii)
providing financial advice to the Company in connection with the Rights Offering (including advice regarding the structure, pricing,
timing and other terms and conditions of the Rights Offering);

 

(iii)
responding to requests for information and materials in connection with the Rights Offering (it being agreed that STC (in this
capacity, as the “Information Agent”) will be the Company’s primary third party source of information
regarding the Rights Offering and will be identified by the Company as such in the Registration Statement (as defined herein))
(the services described in clauses (i), (ii) and (iii) being collectively referred to as the “Advisory Services”);
and

 

(iv)
in accordance with customary practice, using best efforts to market the Rights Offering to new investors and to solicit the exercise
of the Rights and subscriptions for the Rights Shares pursuant to the Offer Documents (as defined herein) (the services described
in this clause (iv) being referred to as the “Solicitation Services”);

 

(c)
The services of the Dealer-Managers described in clauses (b)(iii) and (iv) above shall commence on the date that the Registration
Statement is declared effective by the U.S. Securities and Exchange Commission (the “Commission”). The Company
hereby authorizes the Dealer-Managers, or one or more registered broker-dealers chosen exclusively by the Dealer-Managers, to
act as the Company’s agent in making the Rights Offering to residents of such states as to which such agent designation
may be necessary to comply with applicable law.

 

    	 	2	 

    	 	 	 

    

 

(d)
The Company hereby acknowledges that each of Chardan and Oak Ridge is acting only as a dealer- manager in connection with the
Rights Offering. The Dealer-Managers shall not (and shall not be obligated to) underwrite or place any Rights or any Rights Shares,
and the Company acknowledges and agrees that each of Chardan’s and Oak Ridge’s participation as Dealer-Manager does
not ensure or guarantee that the Company will raise any funds through the Rights Offering.

 

(e)
The Company further acknowledges that each of Chardan and Oak Ridge is acting as an independent contractor pursuant to a contractual
relationship created solely by this Agreement entered into on an arm’s length basis and in no event do the parties intend
that Chardan or Oak Ridge act or be responsible as a fiduciary to the Company, its management, shareholders, creditors or any
other natural person, partnership, limited liability partnership, corporation, limited liability company, business trust, joint
stock company, trust, unincorporated association, joint venture, or other entity or organization (each, a “Person”)
in connection with any activity that Chardan or Oak Ridge may undertake or has undertaken in furtherance of the Rights Offering,
either before or after the date hereof. Each of Chardan and Oak Ridge hereby expressly disclaims any fiduciary or similar obligations
to the Company, either in connection with the transactions contemplated by this Agreement or any matters leading up to such transactions,
and the Company hereby confirms its understanding and agreement to that effect. The Company, Chardan and Oak Ridge agree that
each party is responsible for making its own independent judgments with respect to any such transactions, and that any opinions
or views expressed by Chardan or Oak Ridge to the Company regarding such transactions, including but not limited to any opinions
or views with respect to the price or market for the Company’s securities, do not constitute advice or recommendations to
the Company. The Company hereby waives and releases, to the fullest extent permitted by law, any claims that the Company may have
against Chardan or Oak Ridge with respect to any breach or alleged breach of any fiduciary or similar duty to the Company in connection
with the transactions contemplated by this Agreement or any matters leading up to such transactions.

 

3.
No Liability for Acts of Brokers, Dealers, Banks and Trust Companies. The Dealer-Managers shall not be subject to any liability
to the Company (or any of the Company’s Subsidiaries (as defined below) or “Affiliates,” as such term is defined
in Rule 144 under the Securities Act of 1933, as amended (the “Securities Act”), for any act or omission on
the part of any broker or dealer in securities (other than the Dealer-Managers) or any bank or trust company or any other Person,
and no Dealer-Manager shall be liable for its own acts or omissions in performing its obligations as advisor or Dealer-Manager
hereunder or otherwise in connection with the Rights Offering or the related transactions, except for any losses, claims, damages,
liabilities and expenses determined in a final judgment by a court of competent jurisdiction to have resulted directly from any
such acts or omissions undertaken or omitted to be taken by such Dealer-Manager through its gross negligence, intentional omission
or willful misconduct. In soliciting or obtaining exercises of Rights, no Dealer-Manager shall be deemed to be acting as the agent
of the Company or as the agent of any broker, dealer, bank or trust company, and no broker, dealer, bank or trust company shall
be deemed to be acting as such Dealer-Manager’s agent or as the agent of the Company. As used herein, the term “Subsidiary”
means a significant subsidiary of the Company as defined as defined in Rule 1-02 (w) of Regulation S-X of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”). Unless the context specifically requires otherwise, the term
“Company” as used in this Agreement means the Company and its Subsidiaries collectively on a consolidated basis.

 

    	 	3	 

    	 	 	 

    

 

4.
The Offer Documents.

 

(a)
There will be used in connection with the Rights Offering certain materials in addition to the Registration Statement, any Preliminary
Prospectus or the Prospectus (each as defined herein), including: (i) all exhibits to the Registration Statement which pertain
to the conduct of the Rights Offering; and (ii) any soliciting materials relating to the Rights Offering approved by the Company
(collectively with the Registration Statement, any Preliminary Prospectus and the Prospectus, the “Offer Documents”).
Each Dealer-Manager shall be given such opportunity to review and comment upon the Offer Documents.

 

(b)
The Company agrees to furnish the Dealer-Managers with as many copies as it may reasonably request of the final forms of the Offer
Documents and each Dealer-Manager is authorized to use copies of the Offer Documents in connection with its acting as Dealer-Manager.
The Dealer-Managers hereby agree that they will not disseminate any written material for or in connection with the solicitation
of exercises of Rights pursuant to the Rights Offering other than the Offer Documents.

 

(c)
The Company represents and agrees that no solicitation material, other than the Offer Documents and the documents to be filed
therewith as exhibits thereto (each in the form of which has been approved by the Dealer-Managers), will be used in connection
with the Rights Offering by or on behalf of the Company without the prior approval of the Dealer- Managers, which approval will
not be unreasonably withheld. In the event that the Company uses or permits the use of any such solicitation material in connection
with the Rights Offering, then the Dealer-Managers shall be entitled to withdraw as Dealer-Managers in connection with the Rights
Offering and the related transactions without any liability or penalty to the Dealer- Manager or any other Person identified in
Section 11 hereof as an “indemnified party,” and each Dealer-Manager shall be entitled to receive the payment of all
fees and expenses payable under this Agreement or the Engagement Letter which have accrued to the date of such withdrawal.

 

5.
Representations and Warranties. The Company represents and warrants to the Dealer-Managers that:

 

(a)
The Registration Statement on Form S-1 (Registration No. 333- ______) with respect to the Rights and the Rights Shares has: (i)
been prepared by the Company in conformity with, in all material respects, the requirements of the Securities Act and the rules
and regulations of the Commission (the “Rules and Regulations”) promulgated under the Securities Act; (ii)
been filed with the Commission under the Securities Act; and (iii) become effective under the Securities Act. Copies of such Registration
Statement as amended to date have been delivered or made available by the Company to the Dealer-Managers. For purposes of this
Agreement, “Effective Time” means the date and the time as of which such registration statement, or the most
recent post-effective amendment thereto, if any, was declared effective by the Commission; “Effective Date”
means the date of the Effective Time; “Preliminary Prospectus” means each prospectus included in such registration
statement, or amendments thereof, before it becomes effective under the Securities Act and any prospectus filed with the Commission
by the Company with the consent of the Dealer-Managers pursuant to Rule 424(a) of the Rules and Regulations; “Registration
Statement” means such registration statement, as amended at the Effective Time, including any documents which are exhibits
thereto; and “Prospectus” means such final prospectus, as first filed with the Commission pursuant to paragraph
(1) or (4) of Rule 424(b) of the Rules and Regulations. The Commission has not issued any order preventing or suspending the use
of any Preliminary Prospectus or the Prospectus. All references in this Agreement to the Registration Statement, a Preliminary
Prospectus, and the Prospectus, or any amendments or supplements to any of the foregoing shall be deemed to include any copy thereof
filed with the Commission pursuant to its Electronic Data Gathering, Analysis and Retrieval System (“EDGAR”).
Additionally, any reference in this Agreement to the Registration Statement, any Preliminary Prospectus or the Prospectus shall
be deemed to refer to and include the documents incorporated by reference therein pursuant to Item 12 of Form S-1 under the Securities
Act, as of the effective date of the Registration Statement or the date of such Preliminary Prospectus or the Prospectus, as the
case may be. The Prospectus delivered to the Dealer-Managers for use in connection with the Rights Offering will be identical
to the electronically transmitted copies thereof filed with the Commission pursuant to EDGAR, except to the extent permitted by
Regulation S-T promulgated by the Commission.

 

    	 	4	 

    	 	 	 

    

 

(b)
The Registration Statement (together with all exhibits filed as part of the Registration Statement) conforms, and any Preliminary
Prospectus and the Prospectus and any further amendments or supplements to the Registration Statement conform or will conform,
when they are filed with or become effective by the Commission, as the case may be, in each case, in all material respects, to
the requirements of the Securities Act and the Rules and Regulations and collectively do not and will not, as of the applicable
Effective Date (as to the Registration Statement and any amendment thereto) and as of the applicable filing date (as to the Prospectus
and any amendment or supplement thereto) 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 (with respect to the Prospectus, in the light of the circumstances
under which they were made) not misleading; provided that no representation or warranty is made by the Company as to information
contained in or omitted from the Registration Statement or the Prospectus in reliance upon and in conformity with written information
furnished to the Company by or on behalf of the Dealer-Managers specifically for inclusion therein, it being acknowledged and
agreed that such information provided by or on behalf of the Dealer-Managers consists solely and exclusively of the following
disclosure contained in the Prospectus (collectively, the “Dealer-Manager Information”): (i) the names of Chardan
and Oak Ridge acting in their capacity as dealer-managers for the Rights Offering; (ii) “Prospectus Summary - The Rights
Offering — Distribution Arrangements”; (iii) “Description of Subscription Rights – Distribution Arrangements;”
and (iv) “Plan of Distribution.”

 

(c)
Neither: (i) any Issuer-Represented General Free Writing Prospectus(es) (as defined below) issued at or prior to the Closing and
the Prospectus, all considered together (collectively, the “General Disclosure Package”), nor (ii) any individual
Issuer-Represented Limited-Use Free Writing Prospectus(es) (as defined below), when considered together with the General Disclosure
Package, includes or will include as of the Closing any untrue statement of a material fact or omits or will omit as of the Closing
to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they
were made, not misleading. The preceding sentence does not apply to statements in or omissions from any Prospectus included in
the Registration Statement, the General Disclosure Package or any Issuer-Represented Limited-Use Free Writing Prospectus in conformity
with written Dealer-Manager Information. For purposes of this Agreement, (x) “Issuer-Represented Free Writing Prospectus”
means any “issuer free writing prospectus,” as defined in Rule 433 under the Securities Act, relating to the Rights
that (A) is required to be filed with the Commission by the Company, or (B) is exempt from filing pursuant to Rule 433(d)(5)(i)
under the Securities Act because it contains a description of the Rights or of the Rights Offering that does not reflect the final
terms or pursuant to Rule 433(d)(8)(ii) because it is a “bona fide electronic road show,” as defined in Rule 433 under
the Securities Act, in each case in the form filed or required to be filed with the Commission or, if not required to be filed,
in the form retained in the Company’s records pursuant to Rule 433(g) under the Securities Act; (y) “Issuer-Represented
General Free Writing Prospectus” means any Issuer-Represented Free Writing Prospectus that is intended for general distribution
to prospective investors, as evidenced by its being specified in Schedule I to this Agreement; and (z) “Issuer-Represented
Limited-Use Free Writing Prospectus” means any Issuer-Represented Free Writing Prospectus that is not an Issuer-Represented
General Free Writing Prospectus. The term Issuer-Represented Limited-Use Free Writing Prospectus also includes any “bona
fide electronic road show,” as defined in Rule 433 under the Securities Act, that is made available without restriction
pursuant to Rule 433(d)(8)(ii), even though not required to be filed with the Commission.

 

    	 	5	 

    	 	 	 

    

 

(d)
Each Issuer-Represented Free Writing Prospectus, if any, as of its issue date and at all subsequent times until the Closing or
until any earlier date that the Company notified or notifies the Dealer-Managers as described in the next sentence, did not, does
not and will not include any information that conflicted, conflicts or will conflict with the information contained in the then-current
Registration Statement or Prospectus. If at any time following issuance of an Issuer-Represented Free Writing Prospectus there
occurred or occurs an event or development as a result of which such Issuer-Represented Free Writing Prospectus conflicted or
would conflict with the information contained in the then-current Registration Statement or Prospectus relating to the Rights
or the Rights Shares or included or would include an untrue statement of a material fact or omitted or would omit to state a material
fact necessary in order to make the statements therein, in the light of the circumstances prevailing at that subsequent time,
not misleading, the Company has notified or will notify promptly the Dealer-Managers so that any use of such Issuer-Represented
Free Writing Prospectus may cease until it is promptly amended or supplemented by the Company, at its own expense, to eliminate
or correct such conflict, untrue statement or omission.

 

(e)
The Company has not distributed and will not distribute any prospectus or other offering material in connection with the Rights
Offering and sale of the Rights Shares other than the General Disclosure Package, any Issuer-Represented Limited-Use Free Writing
Prospectus or the Prospectus or other materials permitted by the Securities Act to be distributed by the Company. Unless the Company
obtains the prior consent of the Dealer-Managers, the Company has not made and will not make any offer relating to the Rights
Shares that would constitute an “issuer free writing prospectus,” as defined in Rule 433 under the Securities Act,
or that would otherwise constitute a “free writing prospectus,” as defined in Rule 405 under the Securities Act, required
to be filed with the Commission; provided that the prior written consent of the Dealer-Managers shall be deemed to have been given
in respect of any free writing prospectus referenced on Schedule I attached hereto. The Company has complied and will comply with
the requirements of Rules 164 and 433 under the Securities Act applicable to any Issuer-Represented Free Writing Prospectus as
of its issue date and at all subsequent times through the Closing, including timely filing with the Commission where required,
legending and record keeping. To the extent an electronic road show is used, the Company has satisfied and will satisfy the conditions
in Rule 433 under the Securities Act to avoid a requirement to file with the Commission any electronic road show.

 

(f)
There are no contracts, agreements, plans or other documents which are required to be described in the Prospectus or filed as
exhibits to the Registration Statement by the Securities Act or by the Rules and Regulations which have not been described in
the Prospectus or filed as exhibits to the Registration Statement or referred to in, or incorporated by reference into, the exhibit
table of the Registration Statement as permitted by the Rules and Regulations.

 

(g)
The Company and each of its Subsidiaries have been duly incorporated and are validly existing as corporations or limited liability
companies in good standing under the laws of their respective jurisdictions of incorporation or formation, are duly qualified
to do business and are in good standing as foreign corporations or limited liability companies in each jurisdiction in which their
respective ownership or lease of property or the conduct of their respective businesses requires such qualification, and have
all power and authority necessary to own or hold their respective properties and to conduct the businesses in which they are engaged,
except where the absence of such power or authority (either individually and in the aggregate) could not reasonably be expected
to have a material adverse effect on: (i) the business, condition (financial or otherwise), results of operations, shareholders’
equity, properties or prospects (as such prospects are disclosed or described in the Prospectus) of the Company or its Subsidiaries;
(ii) the long-term debt or capital stock of the Company or its Subsidiaries; or (iii) the Rights Offering or consummation of any
of the other transactions contemplated by this Agreement, the Registration Statement or the Prospectus (any such effect being
a “Material Adverse Effect”).

 

(h)
This Agreement has been duly authorized, executed and delivered by the Company and, assuming the due authorization, execution
and delivery by the Dealer-Managers, constitutes the valid and legally binding agreement of the Company, enforceable against the
Company in accordance with its terms, except as the enforceability thereof may be limited by bankruptcy, insolvency, reorganization,
moratorium or similar laws relating to or affecting creditors’ rights generally and by general principles of equity.

 

(i)
Except as set forth in the Registration Statement and Prospectus, neither the Company nor any of its Subsidiaries: (i) is in violation
of its charter or by-laws, (ii) in default under or in breach of, and no event has occurred which, with notice or lapse of time
or both, would constitute a default or breach under or result in the creation or imposition of any lien, charge, mortgage, pledge,
security interest, claim, equity, trust or other encumbrance, preferential arrangement, defect or restriction of any kind whatsoever
(each, a “Lien”) upon any of their property or assets pursuant to, any material contract (including Government
Contracts (as defined below), agreement, indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to
which it is a party or by which it is bound or to which any of its properties or assets is subject or (iii) is in violation in
any respect of any law, rule, regulation, ordinance, directive, judgment, decree or order, foreign and domestic, to which it or
its properties or assets may be subject or has failed to obtain any material license, permit, certificate, franchise or other
governmental authorization or permit necessary to the ownership of its properties or assets or to the conduct of its business,
except, in the case of clauses (ii) and (iii) above, any violation, default or failure to possess the same that would not have
a Material Adverse Effect.

 

    	 	6	 

    	 	 	 

    

 

Each
Government Contract is in full force and effect and constitutes a legal, valid and binding agreement, enforceable in accordance
with its terms against all parties thereto and was awarded in compliance with applicable Law (as defined below). The Company has
complied in all material respects with all terms and conditions of each Government Contract, including all clauses, provisions
and requirements incorporated expressly by reference or by operation of Law therein and including any requirements relating to
the charging of prices or costs, minimum qualifications of personnel and warranties. No Government Contract has, to date, or is
currently projected to have, fully burdened costs incurred in excess of the Government Contract fixed price, or, in the case of
flexibly-priced or cost-reimbursement contracts, fully burdened costs incurred in excess of the ceiling price or funded amount
of the Government Contract. The Company is not aware of any adverse or negative past performance evaluations or ratings pertaining
to any Government Contract. There has not been any withholding or setoff of any payments by a Governmental Authority or prime
contractor or higher-tier subcontractor nor, to the Company’s knowledge, has there been any attempt to withhold or setoff,
any payments due under any Government Contract on any basis, including the basis that a cost incurred or invoice rendered by the
Company was questioned or disallowed by a Governmental Authority, prime contractor or higher-tier subcontractor or any of their
audit representatives, nor is there any basis for any such withhold or setoff. “Government Contract” means
any material prime contract, subcontract, teaming agreement or arrangement, joint venture, basic ordering agreement, blanket purchase
agreement, pricing agreement, letter contract, contract awarded under the Federal Supply Schedule program, purchase order, task
order or delivery order or other Contract or similar arrangement of any kind, between the Company and (a) any Governmental Authority,
(b) any prime contractor of a Governmental Authority in its capacity as a prime contractor, or (c) any subcontractor (or lower
tier subcontractor) with respect to any contract of a type described in clauses (a) or (b) above. “Governmental Authority”
means any federal, state, local, foreign or other governmental, quasi-governmental or administrative body, instrumentality, department
or agency or any court, tribunal, administrative hearing body, arbitration panel, commission, or other similar dispute resolving
panel or body and shall include any Person acting on behalf of a such Governmental Authority. “Law” means any
federal, state, local, municipal, foreign or other law, statute, legislation, principle of common law, ordinance, code, edict,
decree, proclamation, treaty, convention, rule, regulation, directive, requirement, writ, injunction, settlement, Permit or Order
that is or has been issued, enacted, adopted, passed, approved, promulgated, made, implemented or otherwise put into effect by
or under the authority of any Governmental Authority.

 

(j)
Prior to or on the date hereof the Company and STC have or will have entered into a subscription and information agent agreement
(the “Agent Agreement”). When executed by the Company, the Agent Agreement will have been duly authorized,
executed and delivered by the Company and, assuming due authorization, execution and delivery by STC, will constitute a valid
and legally binding agreement of the Company enforceable in accordance with its terms, except as the enforceability thereof may
be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or affecting creditors’ rights
generally and by general principles of equity.

 

(k)
The Rights to be issued and distributed by the Company have been duly and validly authorized and, when issued and delivered in
accordance with the terms of the Offer Documents, will be duly and validly issued, and will constitute valid and legally binding
obligations of the Company enforceable against the Company in accordance with their terms, no holder of the Rights is or will
be subject to personal liability by reason of being such a holder, and the Rights conform to the description thereof contained
in the Prospectus.

 

    	 	7	 

    	 	 	 

    

 

(m)
The Rights Shares have been duly authorized and reserved for issuance by all necessary corporate action on the part of the Company
and, when issued and delivered and paid for, will be validly issued, fully paid, nonassessable and free of preemptive rights and
will conform to the description thereof in the Prospectus.

 

(n)
The Common Stock is listed for trading on the Nasdaq Capital Market (“Nasdaq”). Except as set forth in (i)
the Company’s filings with the Commission or (ii) the Registration Statement, the Company has not received an oral or written
notification from Nasdaq or any court or any other federal, state, local or foreign governmental or regulatory authority having
jurisdiction over the Company or any of its Subsidiaries or any of their properties or assets (“Governmental Authority”)
of any inquiry or investigation or other action that would cause the Common Stock, including the Rights Shares, to not be listed
for trading on Nasdaq.

 

(o)
The Company has an authorized capitalization as set forth under the caption “Description of Securities” in the Prospectus
and all of the issued shares of capital stock of the Company have been duly and validly authorized and issued, are fully paid
and non- assessable and have been issued in compliance with federal and state securities laws. None of the outstanding shares
of the Company capital stock were issued in violation of any preemptive rights, rights of first refusal or other similar rights
to subscribe for or purchase securities of the Company. There are no authorized or outstanding options, warrants, preemptive rights,
rights of first refusal or other rights to purchase, or equity or debt securities convertible into or exchangeable or exercisable
for, any capital stock of the Company or any of its subsidiaries other than those accurately described in the Registration Statement
and Prospectus. The description of the Company’s stock option, stock bonus and other stock plans or arrangements, and the
options or other rights granted thereunder, set forth in the Registration Statement accurately and fairly presents in all material
respects the information required to be shown with respect to such plans, arrangements, options and rights.

 

(p)
The Company and its Subsidiaries own or lease all such assets or properties as are necessary to the conduct of its business as
presently operated and as proposed to be operated as described in the Registration Statement and the Prospectus. The Company or
its Subsidiaries have good and marketable title in fee simple to all assets or real property and good and marketable title to
all personal property owned by them, in each case free and clear of any Lien, except for such (i) Liens as are described in the
Registration Statement and the Prospectus, (ii) 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 (iii) Liens for the
payment of federal, state or other taxes, for which appropriate reserves have been made in accordance with GAAP, and the payment
of which is neither delinquent nor subject to penalties. Any assets or real property and buildings held under lease or sublease
by the Company or any Subsidiary is held under valid, subsisting and enforceable leases with such exceptions as are not material
to, and do not interfere with, the use made and proposed to be made of such property and buildings by the Company or such Subsidiary.
Neither the Company nor any Subsidiary has received any notice of any material claim adverse to its ownership of any real or personal
property or of any material claim against the continued possession of any real property, whether owned or held under lease or
sublease by the Company or any Subsidiary.

 

    	 	8	 

    	 	 	 

    

 

(q)
The execution, delivery and performance of this Agreement by the Company, the issuance of the Rights in accordance with the terms
of the Offer Documents, the issuance of Rights Shares in accordance with the terms of the Rights Offering, and the consummation
by the Company of the transactions contemplated hereby, will not conflict with or result in a breach or violation of any of the
terms or provisions of, or constitute a default under, any material indenture, mortgage, deed of trust, loan agreement or other
material agreement (including any agreement with any broker dealer, placement agent, financial advisor or similar person or entity)
or instrument to which the Company or any of its Subsidiaries or any of its Affiliates is a party or by which the Company or any
of its Subsidiaries or its Affiliates is bound or to which any of the properties or assets of the Company or any of its Subsidiaries
or its Affiliates is subject, nor will such actions result in any violation of the provisions of the charter or by-laws of the
Company or any of its Subsidiaries or any statute or any order, rule or regulation of any Governmental Authority, except where
such violation would not reasonably be expected to have a Material Adverse Effect; and except for the registration of the Rights
and the Rights Shares under the Securities Act and such consents, approvals, authorizations, registrations or qualifications as
may be required under the Exchange Act and applicable state securities laws in connection with the distribution of the Rights
and the sale of the Rights Shares by the Company, no consent, approval, authorization or order of, or filing or registration with,
any such court or Governmental Authority is required for the execution, delivery and performance of this Agreement by the Company
and the consummation by it of the transactions contemplated hereby.

 

(r)
Except as otherwise set forth in the Registration Statement and the Prospectus, there are no contracts, agreements or understandings
between the Company and any Person granting such Person the right to require the Company to file a registration statement under
the Securities Act with respect to any securities of the Company owned or to be owned by such Person or to require the Company
to include such securities in the securities registered pursuant to the Registration Statement or in any securities being registered
pursuant to any other registration statement filed by the Company under the Securities Act. No holder of any security of the Company
has any rights of rescission of similar rights with respect to such securities held by them.

 

(s)
Neither the Company nor any of its Subsidiaries has sustained, since the date of the latest balance sheet included in the Prospectus
or after such date and as disclosed in the Prospectus, any material loss or interference with its business from fire, explosion,
flood or other calamity, whether or not covered by insurance, or from any labor dispute or court or governmental action, order
or decree; and, since such date or after such date and as disclosed in the Prospectus, there has not been any change in the capital
stock or long-term debt of the Company or any of its Subsidiaries or any material adverse change, or any development involving
a prospective material adverse change, in or affecting the general affairs, management, financial position, stockholders’
equity, results of operations or prospects (as such prospects are disclosed or described in the Prospectus) of the Company and
its Subsidiaries (a “Material Adverse Change”). Since the date of the latest balance sheet presented in the
Prospectus, the Company has not incurred or undertaken any liabilities or obligations, whether direct or indirect, liquidated
or contingent, matured or unmatured, or entered into any transactions, including any acquisition or disposition of any business
or asset, which are material to the Company, except for liabilities, obligations and transactions which are disclosed in the Registration
Statement, any Preliminary Prospectus and the Prospectus.

 

(t)
Cherry Bekaert LLP (“Cherry Bekaert”), whose reports relating to the Company are included in the Registration
Statement, are independent public accountants as required by the Securities Act, the Exchange Act, the Rules and Regulations and
the rules and regulations promulgated by the Public Company Accounting Oversight Board (the “PCAOB”). Cherry
Bekaert is duly registered and in good standing with the PCAOB. Cherry Bekaert has not, during the periods covered by the financial
statements included in the Registration Statement, the Preliminary Prospectus and the Prospectus, provided to the Company any
non-audit services, as such term is used in Section 10A(g) of the Exchange Act.

 

    	 	9	 

    	 	 	 

    

 

(u)
The financial statements, including the notes thereto, and any supporting schedules included in the Registration Statement, any
Preliminary Prospectus and the Prospectus present fairly, in all material respects, the financial position as of the dates indicated
and the cash flows and results of operations for the periods specified of the Company. Except as otherwise stated in the Registration
Statement, any Preliminary Prospectus and the Prospectus, said financial statements have been prepared in conformity with United
States generally accepted accounting principles applied on a consistent basis throughout the periods involved. Any supporting
schedules included in the Registration Statement, any Preliminary Prospectus and the Prospectus present fairly, in all material
respects, the information required to be stated therein. No other financial statements or supporting schedules are required to
be included or incorporated by reference in the Registration Statement. The other financial and statistical information included
in the Registration Statement, any Preliminary Prospectus and the Prospectus present fairly, in all material respects, the information
included therein and have been prepared on a basis consistent with that of the financial statements that are included in the Registration
Statement, such Preliminary Prospectus and the Prospectus and the books and records of the respective entities presented therein.

 

(v)
There are no pro forma or as adjusted financial statements which are required to be included in the Registration Statement, any
Preliminary Prospectus and the Prospectus in accordance with Regulation S-X under the Securities Act which have not been included
as so required. The pro forma and/or as adjusted financial information included in the Registration Statement, any Preliminary
Prospectus and the Prospectus has been properly compiled and prepared in accordance with the applicable requirements of the Securities
Act and the Rules and Regulations and include all adjustments necessary to present fairly, in all material respects, in accordance
with generally accepted accounting principles the pro forma and as adjusted financial position of the respective entity or entities
presented therein at the respective dates indicated and their cash flows and the results of operations for the respective periods
specified. The assumptions used in preparing the pro forma and as adjusted financial information included in the Registration
Statement, any Preliminary Prospectus and the Prospectus provide a reasonable basis for presenting the significant effects directly
attributable to the transactions or events described therein. The related pro forma and pro forma as adjusted adjustments give
appropriate effect to those assumptions; and the pro forma and pro forma as adjusted financial information reflect the proper
application of those adjustments to the corresponding historical financial statement amounts.

 

(w)
The statistical, industry-related and market-related data included in the Registration Statement, any Preliminary Prospectus and
the Prospectus are based on or derived from sources which the Company reasonably believes are reliable and accurate, and such
data agree with the sources from which they are derived. All required third party consents have been obtained in order for such
data to be included in the Registration Statement, any Preliminary Prospectus and the Prospectus.

 

    	 	10	 

    	 	 	 

    

 

(x)
Except as disclosed in the Registration Statement and the Prospectus, the Company maintains a system of internal accounting and
other controls sufficient to provide reasonable assurances that: (i) transactions are executed in accordance with management’s
general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements
in conformity with United States generally accepted accounting principles and to maintain accountability for assets, (iii) access
to assets is permitted only in accordance with management’s general or specific authorization, and (iv) the recorded accounting
for assets is compared with existing assets at reasonable intervals and appropriate action is taken with respect to any differences.

 

(y)
The Company’s Board of Directors has validly appointed an audit committee and compensation committee whose composition satisfies
the requirements of the rules and regulations of the Commission and Nasdaq and the Company’s Board of Directors and/or audit
committee and the compensation committee has each adopted a charter and such charters are in full force and effect as of the date
hereof. Neither the Company’s Board of Directors nor the audit committee thereof has been informed, nor is any director
of the Company aware, of: (i) except as disclosed in the Registration Statement and the Prospectus, any significant deficiencies
or material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to
adversely affect the Company’s ability to record, process, summarize and report financial information; or (ii) any fraud,
whether or not material, that involves management or other employees who have a significant role in the Company’s internal
control over financial reporting.

 

(z)
The Company is in material compliance with the provisions of the Sarbanes-Oxley Act of 2002, as amended (“Sarbanes-Oxley”)
applicable to the Company, and the rules and regulations promulgated thereunder and related or similar rules and regulations promulgated
by any other Governmental Authority or self-regulatory entity or agency, except for violations which, singly or in the aggregate,
are disclosed in the Prospectus or would not have a Material Adverse Effect.

 

(aa)
No relationship, direct or indirect, exists between or among any of the Company or any Affiliate of the Company, on the one hand,
and any director, officer, shareholder, customer or supplier of the Company or any Affiliate of the Company, on the other hand,
which is required by the Securities Act, the Exchange Act or the Rules and Regulations to be described in the Registration Statement
or the Prospectus which is not so described as required. Except as disclosed in the Registration Statement and the Prospectus,
there are no outstanding loans, advances (except normal advances for business expenses in the ordinary course of business) or
guarantees of indebtedness by the Company to or for the benefit of any of the officers or directors of the Company or any of their
respective family members. The Company has not, in violation of Sarbanes-Oxley, directly or indirectly, including through any
Affiliate of the Company (other than as permitted under the Sarbanes-Oxley for depositary institutions), extended or maintained
credit, arranged for the extension of credit, or renewed an extension of credit, in the form of a personal loan to or for any
director or executive officer of the Company.

 

(bb)
Except as described in the Prospectus, there are no legal or governmental proceedings pending to which the Company or any of its
Subsidiaries is a party or of which any property or asset of the Company or any of its Subsidiaries is the subject, including
without limitation any federal, state, local or foreign governmental bodies which, if determined adversely to the Company or any
of its Subsidiaries, are reasonably likely to have a Material Adverse Effect.

 

    	 	11	 

    	 	 	 

    

 

(cc)
The Company and its Subsidiaries have filed all necessary federal, state and foreign income and franchise tax returns and have
paid all taxes required to be paid by any of them and, if due and payable, any related or similar assessment, fine or penalty
levied against any of them, except where the failure to make such filings or make such payments, either individually or in the
aggregate, could not reasonably be expected to have, a Material Adverse Effect. The Company has made adequate charges, accruals
and reserves in its financial statements above in respect of all federal, state and foreign income and franchise taxes for all
periods as to which the tax liability of the Company or any of its Subsidiaries has not been finally determined.

 

(dd)
Each of the Company and its Subsidiaries maintains insurance of the types and in the amounts which the Company believes to be
reasonable and sufficient for a company of its size operating in the Company’s industry, including, but not limited to:
(i) directors’ and officers’ insurance (including insurance covering the Company, its directors and officers for liabilities
or losses arising in connection with the Rights Offering, including, without limitation, liabilities or losses arising under the
Securities Act, the Exchange Act, the Rules and Regulations and applicable foreign securities laws), (ii) insurance covering real
and personal property owned or leased against theft, damage, destruction, acts of vandalism and all other risks customarily insured
against, (iii) business interruption insurance and (iv) product-related insurance. There are no material claims by the Company
or any of its Subsidiaries under any policy or instrument described in this paragraph as to which any insurance company is denying
liability or defending under a reservation of rights clause. All of the insurance policies described in this paragraph are in
full force and effect. Neither the Company nor any of its Subsidiaries has been refused any insurance coverage sought or applied
for, and the Company has no 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 at a cost that
would not have a Material Adverse Effect.

 

(ee)
Intellectual Property.

 

(i)
The Company owns, licenses or possesses the right to use sufficient trademarks, trade names, patents, patent rights, copyrights,
domain names, licenses, approvals, trade secrets, inventions, technology, know-how and other similar rights (collectively, “Intellectual
Property Rights”) as are reasonably necessary or material to conduct its business as now conducted and contemplated
to be conducted, each as described in the Registration Statement, any Preliminary Prospectus and the Prospectus. To the Company’s
knowledge, all Intellectual Property Rights are valid and enforceable.

 

(ii)
Except as set forth in the Registration Statement, any Preliminary Prospectus and the Prospectus: (A) there is no actual, pending
or, to the Company’s knowledge, threatened action, suit, proceeding, or claim by others challenging the rights of the Company
and its Subsidiaries and Affiliates in or to any Intellectual Property Rights, and the Company is unaware of any facts which would
form a reasonable basis for any such claim; (B) there is no actual, pending or, to the Company’s knowledge, threatened action,
suit, proceeding, or claim by others that the Company or its Subsidiaries or Affiliates infringes, misappropriates, or otherwise
violates any Intellectual Property Rights of others, and the Company is unaware of any facts which would form a reasonable basis
for any such claim; (C) there is no actual, pending or, to the Company’s knowledge, threatened action, suit, proceeding,
or claim by others challenging the validity or scope of any such Intellectual Property Rights owned by the Company or its Subsidiaries
or Affiliates and the Company is unaware of any facts which would form a reasonable basis for any such claim; (D) to the Company’s
knowledge, the operation of the business of the Company, its Subsidiaries and its Affiliates as now conducted and in connection
with the development and commercialization of its technology described in the Registration Statement, any Preliminary Prospectus
and the Prospectus does not infringe any claim of any patent or published patent application nor would such infringement, misappropriation
or violation arise upon the commercialization of any product or service described in the Registration Statement, any Preliminary
Prospectus and the Prospectus as under development; (E) to the Company’s knowledge, there is no “prior art”
of which the Company is aware that may render any patent owned or licensed by the Company invalid or any patent application owned
or licensed by the Company or its Subsidiaries or Affiliates unpatentable which has not been disclosed to the applicable government
patent office; and (F) the patents, trademarks, and copyrights maintained by the Company or its Subsidiaries or Affiliates are
in full force and in effect, and none of such patents, trademarks and copyrights have been adjudged invalid or unenforceable in
whole or in part. Neither the Company nor its Subsidiaries or Affiliates is a party to or bound by any options, licenses or agreements
with respect to the Intellectual Property Rights of any other Person that are required to be set forth in the Registration Statement,
any Preliminary Prospectus and Prospectus and are not described therein in all material respects.

 

    	 	12	 

    	 	 	 

    

 

(ff)
Neither the Company nor, to the Company’s knowledge, any of the Company’s directors, officers or employees has violated:
(i) the Bank Secrecy Act, as amended, (ii) the Money Laundering Control Act of 1986, as amended, (iii) the Foreign Corrupt Practices
Act, or (iv) the Uniting and Strengthening of America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism
(USA PATRIOT ACT) Act of 2001, and/or the rules and regulations promulgated under any such law, or any successor law, except for
such violations which, singly or in the aggregate, would not have a Material Adverse Effect.

 

(gg)
Neither the Company nor any of its Affiliates has, prior to the date hereof, made any offer or sale of any securities which are
required to be “integrated” pursuant to the Securities Act or the Rules and Regulations with the issuance or exercise
of the Rights or the offer and sale of the Rights Shares pursuant to the Registration Statement.

 

(hh)
Transactions Affecting Disclosure to FINRA.

 

(i)
Except as described in the Registration Statement and the Prospectus, there are no claims, payments, arrangements, agreements
or understandings relating to the payment of a finder’s, consulting or origination fee or other compensation by the Company
with respect to the issuance or exercise of the Rights or the sale of the Rights Shares or any other arrangements, agreements
or understandings of the Company or, to the Company’s knowledge, the Company’s officers, directors and employees or
Affiliates that may affect the Dealer-Managers’ compensation, as determined by the Financial Industry Regulatory Authority,
Inc. (“FINRA”).

 

(ii)
Except as previously disclosed by the Company to the Dealer- Managers in writing, no officer, director, or beneficial owner of
5% or more of any class of the Company’s securities (whether debt or equity, registered or unregistered, regardless of the
time acquired or the source from which derived) or any other Affiliate is a member or a Person associated, or affiliated with
a member of FINRA.

 

(iii)
No proceeds from the exercise of the Rights will be paid to any FINRA member, or any Persons associated or affiliated with a member
of FINRA, except as specifically contemplated herein.

 

    	 	13	 

    	 	 	 

    

 

(iv)
Except as previously disclosed by the Company to the Dealer- Managers, no Person to whom securities of the Company have been privately
issued within the 180-day period prior to the initial filing date of the Registration Statement has any relationship or affiliation
or association with any member of FINRA.

 

(ii)
There are no contracts, agreements or understandings between the Company and any Person that would give rise to a valid claim
against the Company or the Dealer-Managers for a brokerage commission, finder’s fee or other like payment in connection
with the transactions contemplated by this Agreement. Other than the Dealer-Managers, the Company has not employed any brokers,
dealers or underwriters in connection with solicitation of exercise of Rights in the Rights Offering, and except provided for
in Sections 6 and 7 hereof, no other commissions, fees or discounts will be paid by the Company or otherwise in connection with
the Rights Offering.

 

(jj)
The Company and its Subsidiaries have at all times operated their businesses in material compliance with all Environmental Laws,
and no material expenditures are or will be required in order to comply therewith. The Company has not received any notice or
communication that relates to or alleges any actual or potential violation or failure to comply with any Environmental Laws that
will result in a Material Adverse Effect. As used herein, the term “Environmental Laws” means all applicable laws
and regulations, including any licensing, permits or reporting requirements, and any action by a Governmental Authority pertaining
to the protection of the environment, protection of public health, protection of worker health and safety, or the handling of
hazardous materials, including without limitation, the Clean Air Act, 42 U.S.C. § 7401, et seq., the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, 42 U.S.C. § 9601, et seq., the Federal Water Pollution Control Act, 33
U.S.C. §1321, et seq., the Hazardous Materials Transportation Act, 49 U.S.C. § 1801, et seq., the Resource Conservation
and Recovery Act, 42 U.S.C. § 690-1, et seq., and the Toxic Substances Control Act, 15 U.S.C. § 2601, et seq.

 

(kk)
Except as set forth in the Registration Statement, any Preliminary Prospectus or the Prospectus, the Company is not a party to
an “employee benefit plan,” as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974 (“ERISA”)
which: (i) is subject to any provision of ERISA and (ii) is or was at any time maintained, administered or contributed to by the
Company and covers any employee or former employee of the Company or any ERISA Affiliate (as defined hereafter). These plans are
referred to collectively herein as the “Employee Plans.” For purposes of this paragraph, “ERISA Affiliate”
of any Person means any other person or entity which, together with that person or entity, could be treated as a single employer
under Section 414(m) of the Internal Revenue Code of 1986, as amended (the “Code”), or is an “affiliate,”
whether or not incorporated, as defined in Section 407(d)(7) of ERISA, of the Person.

 

(ll)
Each employment, severance or other similar arrangement or policy and each material plan or arrangement providing for insurance
coverage (including any self-insured arrangements), workers’ compensation, disability benefits, severance benefits, supplemental
unemployment benefits, vacation benefits, retirement benefits or for deferred compensation, profit-sharing, bonuses, stock options,
stock appreciation or other forms of incentive compensation, or post-retirement insurance, compensation or benefits to which the
Company or any Subsidiary is a party and which : (i) is not an Employee Plan, (ii) is entered into, maintained or contributed
to, as the case may be, by the Company or any of their respective ERISA Affiliates, and (iii) covers any employee or former employee
of the Company or any of their respective ERISA Affiliates (such contracts, plans and arrangements being referred to collectively
in this Agreement as the “Benefit Arrangements”) is fully and accurately disclosed in the Registration Statement
to the extent it is material and required to be disclosed by the Securities Act and the Rules and Regulations and has been maintained
in substantial compliance with its terms and with requirements prescribed by any and all statutes, orders, rules and regulations
that are applicable to that Benefit Arrangement.

 

    	 	14	 

    	 	 	 

    

 

(mm)
Except as set forth in the Registration Statement, any Preliminary Prospectus or the Prospectus, there is no material liability
in respect of post-retirement health and medical benefits for retired employees of the Company or any of their respective ERISA
Affiliates other than medical benefits required to be continued under applicable law, determined using assumptions that are reasonable
in the aggregate, over the fair market value of any fund, reserve or other assets segregated for the purpose of satisfying such
liability (including for such purposes any fund established pursuant to Section 401(h) of the Code). With respect to any of the
Company’s Employee Plans which are “group health plans” under Section 4980B of the Code and Section 607(1) of
ERISA, there has been material compliance with all requirements imposed there under such that the Company or their respective
ERISA Affiliates have no (and will not incur any) loss, assessment, tax penalty, or other sanction with respect to any such plan.

 

(nn)
The execution of this Agreement and consummation of the Rights Offering does not constitute a triggering event under any Employee
Plan or any other employment contract, whether or not legally enforceable, which (either alone or upon the occurrence of any additional
or subsequent event) will or may result in any payment (of severance pay or otherwise), acceleration, increase in vesting, or
increase in benefits to any current or former participant, employee or director of the Company.

 

(oo)
No “prohibited transaction” (as defined in either Section 406 of the ERISA or Section 4975 of Code), “accumulated
funding deficiency” (as defined in Section 302 of ERISA) or other event of the kind described in Section 4043(b) of ERISA
(other than events with respect to which the 30-day notice requirement under Section 4043 of ERISA has been waived) has occurred
with respect to any employee benefit plan for which the Company would have any liability; each employee benefit plan of the Company
is in compliance in all material respects with applicable law, including (without limitation) ERISA and the Code; the Company
has not incurred and does not expect to incur liability under Title IV of ERISA with respect to the termination of, or withdrawal
from any “pension plan”; and each employee benefit plan of the Company that is intended to be qualified under Section
401(a) of the Code is so qualified and nothing has occurred, whether by action or by failure to act, which could cause the loss
of such qualification.

 

(pp)
Neither the Company nor, to the Company’s knowledge, any of the Company’s officers, directors, employees or agents
has at any time during the last five (5) years: (i) made any unlawful contribution to any candidate for foreign office, or failed
to disclose fully any contribution in violation of law; or (ii) made any payment to any federal or state governmental officer
or official, or other Person charged with similar public or quasi-public duties, other than payments that are not prohibited by
the laws of the United States of any jurisdiction thereof.

 

    	 	15	 

    	 	 	 

    

 

(qq)
The Company has not and will not, directly or indirectly through any officer, director or Affiliate of the Company or through
any other Person: (i) taken any action designed to cause or to result in, or that has constituted or which might reasonably be
expected to constitute, the stabilization or manipulation of the price of any security of the Company to facilitate the issuance
of the Rights or the sale or resale of the Rights Shares, (ii) since the filing of the Registration Statement sold, bid for or
purchased, or paid any Person (other than the Dealer-Managers) any compensation for soliciting exercises or purchases of, the
Rights or the Rights Shares; and (iii) until the later of the expiration of the Rights or the completion of the distribution (within
the meaning of Regulation M under the Exchange Act) of the Rights Shares, sell, bid for or purchase, apply or agree to pay to
any Person (other than the Dealer-Manager) any compensation for soliciting another to purchase any other securities of the Company
(except for the solicitation of the exercises of Rights pursuant to this Agreement). The foregoing shall not apply to the offer,
sale, agreement to sell or delivery with respect to: (i) Rights Shares offered and sold upon exercise of the Rights, as described
in the Prospectus; or (ii) any shares of Common Stock sold pursuant to the Company’s employee benefit plans.

 

(rr)
As used in this Agreement, references to matters being “material” with respect to the Company or any matter relating
to the Company shall mean a material item, event, change, condition, status or effect related to the condition (financial or otherwise),
properties, assets (including intangible assets), liabilities, business, prospects (as such prospects are disclosed or described
in any Preliminary Prospectus or the Prospectus), operations or results of operations of the Company and its Subsidiaries, taken
as a whole.

 

(ss)
As used in this Agreement, the term “Company’s knowledge” (or similar language) shall mean the knowledge of
the officers of the Company who are named in the Prospectus, with the assumption that such officers shall have made reasonable
and diligent inquiry of the matters presented (with reference to what is customary and prudent for the applicable individuals
in connection with the discharge by the applicable individuals of their duties as officers or directors of the Company).

 

(tt)
Any certificate signed by or on behalf of the Company and delivered to the Dealer-Managers or to Ellenoff Grossman & Schole
LLP, counsel for the Dealer-Managers, shall be deemed to be a representation and warranty by the Company to the Dealer-Managers
as to the matters covered thereby.

 

6.
Compensation of the Dealer-Managers. In consideration of the services rendered and to be rendered by the Dealer-Managers
to the Company in connection with the Rights Offering, the Company agrees to pay the Dealer-Managers at Closing the following:

 

(i)
to the Dealer-Managers, a cash fee equal to 7.0% of the total gross proceeds generated from the Rights Offering;

 

(ii)
the Dealer-Managers shall receive up to $75,000 in reimbursement of their expenses (including legal fees) if the Rights Offering
occurs. The compensation set forth in this Section 6 of this Agreement shall be paid to the Dealer-Managers within two days of
the Closing. Except as provided in Section 6(ii) or Section 11, the Dealer-Managers shall be responsible for their own expenses.

 

    	 	16	 

    	 	 	 

    

 

7.
Expenses. The Company shall pay or cause to be paid (a) all of its expenses (including any taxes) incurred in connection
with the Rights Offering and the preparation, issuance, execution, authentication and delivery of the Rights and the Rights Shares;
(b) all fees, expenses and disbursements of the Company’s accountants, legal counsel and other third party advisors; (c)
all fees and expenses of the Subscription Agent and the Information Agent set forth in the Agent Agreement; (d) all fees, expenses
and disbursements (including, without limitation, fees and expenses of the Company’s accountants and counsel) in connection
with the preparation, printing, filing, delivery and shipping of the Registration Statement (including the financial statements
therein and all amendments and exhibits thereto), each Preliminary Prospectus, the Prospectus, the other Offer Documents and any
amendments or supplements of the foregoing; (e) all fees, expenses and disbursements relating to the registration or qualification
of the Rights and the Rights Shares under the “blue sky” securities laws of any states or other jurisdictions and
all fees and expenses associated with the preparation of the preliminary and final forms of Blue Sky Memoranda; (f) all filing
fees of the Commission; (g) all filing fees relating to the review of the Rights Offering by FINRA; (h) any applicable listing
or other fees; (i) the cost of printing certificates representing the Rights and the Rights Shares; (j) all advertising charges
pertaining to the Rights Offering agreed to by the Company; (k) the cost and charges of the Company’s transfer agent(s)
or registrar(s) agreed to by the Company; and (l) all other costs and expenses incident to the performance of its obligations
hereunder for which provision is not otherwise made in this Section. The Company shall perform its obligations set forth in this
Section 7 whether or not the Rights Offering commences or any Rights are exercised pursuant to the Rights Offering.

 

8.
Shareholder Lists; Subscription Agent.

 

(a)
The Company will cause the Dealer-Managers to be provided with any cards or lists showing the names and addresses of, and the
number of shares of Common Stock held by, the holders of shares of Common Stock as of a recent date and will use its best efforts
to cause the Dealer-Managers to be advised from time to time during the period, as the Dealer-Manager shall request, of the Rights
Offering as to any transfers of record of shares of Common Stock.

 

(b)
The Company will arrange for the Subscription Agent to advise the Dealer-Managers daily as to such matters as they may reasonably
request, including the number of Rights which have been exercised pursuant to the Rights Offering.

 

9.
Covenants. The Company covenants and agrees with the Dealer-Managers:

 

(a)
To use its best efforts to cause the Registration Statement and any amendments thereto to become effective, provided that the
Company shall have the right to discontinue the Rights Offering and withdraw the Registration Statement if the Company’s
Board of Directors determines in good faith that it is no longer in the best interests of the Company and its stockholders; to
advise each Dealer-Manager, promptly after it receives notice thereof, of the time when the Registration Statement, or any amendment
thereto, becomes effective or any supplement to the Prospectus or any amended Prospectus has been filed and to furnish each Dealer-Manager
with copies thereof; to prepare a Prospectus in a form approved by the Dealer-Managers (such approval not to be unreasonably withheld
or delayed) and to file such Prospectus pursuant to Rule 424(b) under the Securities Act within the time prescribed by such rule;
to advise the Dealer-Managers, promptly after it receives notice thereof, of the issuance by the Commission of any stop order
or of any order preventing or suspending the use of any Preliminary Prospectus or the Prospectus, of the suspension of the qualification
of the Rights for offering or sale in any jurisdiction, of the initiation or threatening of any proceeding for any such purpose,
or of any request by the Commission for the amending or supplementing of the Registration Statement or the Prospectus or for additional
information; and, in the event of the issuance of any stop order or of any order preventing or suspending the use of any Preliminary
Prospectus or the Prospectus or suspending any such qualification, to use promptly its reasonable best efforts to obtain its withdrawal.

 

    	 	17	 

    	 	 	 

    

 

(b)
To deliver promptly to each Dealer-Manager such number of the following documents as such Dealer-Manager shall reasonably request:
(i) conformed copies of the Registration Statement as originally filed with the Commission and each amendment thereto (in each
case excluding exhibits other than this Agreement, any other Offer Documents filed as exhibits, the computation of the ratio of
earnings to fixed charges and the computation of per share earnings); (ii) each Preliminary Prospectus, the Prospectus and any
amended or supplemented Prospectus; and (iii) any document incorporated by reference in the Prospectus (excluding exhibits thereto);
and, if the delivery of a prospectus is required at any time during which the Prospectus relating to the Rights or the Rights
Shares is required to be delivered under the Securities Act and if at such time any events shall have occurred as a result of
which the Prospectus as then amended or supplemented would include any untrue statement of a material fact or omit to state any
material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made
when such Prospectus is delivered, not misleading, or, if for any other reason it shall be necessary during such period to amend
or supplement the Prospectus or to file under the Exchange Act any document incorporated by reference in the Prospectus in order
to comply with the Securities Act or the Exchange Act, to notify the Dealer-Managers and, upon its request, to file such document
and to prepare and furnish without charge to the Dealer-Managers as many copies as the Dealer- Managers may from time to time
reasonably request of an amended or supplemented Prospectus which will correct such statement or omission or effect such compliance.

 

(c)
To file promptly with the Commission any amendment to the Registration Statement or the Prospectus or any supplement to the Prospectus
that may, in the judgment of the Company or the Dealer-Managers, be necessary or advisable in connection with the distribution
of the Rights or the sale of the Rights Shares or be requested by the Commission.

 

(d)
Prior to filing with the Commission any: (i) Preliminary Prospectus, (ii) amendment to the Registration Statement, any document
incorporated by reference in the Prospectus or (iii) any Prospectus pursuant to Rule 424 of the Rules and Regulations, to furnish
a copy thereof to the Dealer-Managers and counsel for the Dealer-Managers and obtain the consent of the Dealer-Managers to the
filing (which consent shall not be unreasonably withheld).

 

(e)
Until the completion of the Rights Offering, following the effective date of the Registration Statement, to furnish to the Dealer-Managers
copies of all materials not available via EDGAR furnished by the Company to its shareholders and all public reports and all reports
and financial statements furnished by the Company to the principal national securities exchange upon which any of the Company’s
securities may be listed pursuant to requirements of or agreements with such exchange or to the Commission pursuant to the Exchange
Act or any rule or regulation of the Commission thereunder.

 

    	 	18	 

    	 	 	 

    

 

(f)
To qualify or register the Rights and the Rights Shares for sale under (or obtain exemptions from the application of) the state
securities or blue sky laws of those jurisdictions designated by the Dealer-Managers, to comply with such laws and to continue
such qualifications, registrations and exemptions in effect so long as required for the distribution of the Rights and the Rights
Shares; provided, however, that the Company shall not be required to qualify as a foreign corporation or to take any action that
would subject it to general service of process in any such jurisdiction where it is not presently qualified or where it would
be subject to taxation as a foreign corporation. The Company will advise the Dealer-Managers promptly of the suspension of the
qualification or registration of (or any such exemption relating to) the Rights and the Rights Shares for offering, sale or trading
in any jurisdiction or any initiation or threat of any proceeding for any such purpose, and in the event of the issuance of any
order suspending such qualification, registration or exemption, the Company shall use its best efforts to obtain the withdrawal
thereof at the earliest possible moment.

 

(g)
To apply the net proceeds from the exercise of the Rights in the manner described under the caption “Use of Proceeds”
in the Prospectus.

 

(h)
Prior to the effective date of the Registration Statement, to apply for the listing of the Rights Shares on Nasdaq and to use
its best efforts to complete that listing, subject only to official notice of issuance (if applicable), prior to the expiration
of the Rights Offering.

 

(i)
To take such steps as shall be necessary to ensure that neither the Company nor any Subsidiary shall become an “investment
company” within the meaning of such term under the Investment Company Act of 1940 and the rules and regulations of the Commission
thereunder.

 

(j)
To advise the Dealer-Managers, directly or through the Subscription Agent, from time to time, as either Dealer-Manager shall request,
of the number of Rights Shares subscribed for, and arrange for the Subscription Agent to furnish the Dealer-Managers with copies
of written reports it furnishes to the Company concerning the Rights Offering;

 

(k)
To commence mailing the Offer Documents to record holders of the Common Stock not later than the second business day following
the record date for the Rights Offering, and complete such mailing as soon as practicable;

 

(l)
To reserve and keep available for issue upon the exercise of the Rights such number of authorized but unissued shares of Common
Stock as will be sufficient to issue the Rights Shares;

 

(m)
To not take, directly or indirectly, any action designed to cause or to result in, or that has constituted or which might reasonably
be expected to constitute, the stabilization or manipulation of the price of any security of the Company to facilitate the issuance
of the Rights or the sale or resale of the Rights Shares; and

 

    	 	19	 

    	 	 	 

    

 

(n)
From the date hereof until 180 days after the Closing, the Company (along with any Subsidiaries that the Company may have following
the date hereof) shall not enter into any agreement to issue or announce the issuance or proposed issuance of any shares of Common
Stock or Common Stock Equivalents other than (i) the issuance of securities in the Rights Offering, (ii) an Exempt Issuance or
(iii) as approved in advance in writing by the Dealer-Managers. For purposes of this Section 9(n), “Common Stock Equivalents”
means any securities of the Company 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, and “Exempt Issuance” means
the issuance of (a) shares of Common Stock, restricted stock, restricted stock units or Common Stock Equivalents to employees,
officers, directors or consultants of the Company pursuant to any stock or option plan duly adopted for such purpose, by the Board
of Directors or a majority of the members of a committee of non-employee directors established for such purpose for services rendered
to the Company, (b) securities exercisable or exchangeable for or convertible into shares of Common Stock issued and outstanding
on the date of this Agreement, provided that such securities have not been amended since the date of this Agreement to increase
the number of such securities or to decrease the exercise price, exchange price or conversion price of such securities (other
than in connection with automatic price resets, stock splits, adjustments or combinations as set forth in such securities) or
to extend the term of such securities and (c) securities issued pursuant to acquisitions or strategic transactions approved by
a majority of the disinterested directors of the Company, provided that such securities are issued as “restricted securities”
(as defined in Rule 144) and carry no registration rights that require or permit the filing of any registration statement in connection
therewith during the 180-day lock-up period set forth herein, and provided that any such issuance shall only be to a Person (or
to the equityholders of a Person) which is, itself or through its subsidiaries, an operating company or an owner of an asset in
a business synergistic with the business of the Company and shall provide to the Company additional benefits in addition to the
investment of funds, but shall not include a transaction in which the Company is issuing securities primarily for the purpose
of raising capital or to an entity whose primary business is investing in securities.

 

10.
Conditions of Dealer-Manager’s Obligations. The obligations of the Dealer- Managers hereunder are subject to (and
the occurrence of any Closing shall be conditioned upon) the accuracy, as of the date hereof and at all times during the Rights
Offering, of the representations and warranties of the Company contained herein, to the performance by the Company of its obligations
hereunder (in each case in the reasonable opinion of the Dealer- Managers) and to the following additional conditions:

 

(a)
(i) The Registration Statement shall have become effective and the Prospectus shall have been timely filed with the Commission
in accordance with the Rules and Regulations; (ii) all post-effective amendments to the Registration Statement shall have become
effective; and (iii) no stop order suspending the effectiveness of the Registration Statement or any amendment or supplement thereto
shall have been issued and no proceedings for the issuance of any such order shall have been initiated or threatened, and any
request of the Commission for additional information (to be included in the Registration Statement or the Prospectus or otherwise)
shall have been disclosed to the Dealer-Managers and complied with to each Dealer-Manager’s reasonable satisfaction.

 

(b)
The Dealer-Managers shall not have been advised by the Company or shall have discovered and disclosed to the Company that the
Registration Statement or the Prospectus or any amendment or supplement thereto, contains an untrue statement of fact which in
the Dealer-Managers’ opinion, or in the opinion of counsel to the Dealer-Managers, is material, or omits to state a fact
which, in the Dealer-Managers’ opinion, or in the opinion of counsel to the Dealer-Managers, is material and is required
to be stated therein or is necessary to make the statements therein not misleading.

 

    	 	20	 

    	 	 	 

    

 

(c)
All corporate proceedings and other legal matters incident to the authorization, form and validity of this Agreement, the Rights,
the Rights Shares, the Registration Statement and the Prospectus, and all other legal matters relating to this Agreement and the
transactions contemplated hereby shall be reasonably satisfactory in all material respects to counsel for the Dealer-Managers,
and the Company shall have furnished to such counsel all documents and information that they may reasonably request to enable
them to pass upon such matters.

 

(d)
Concurrently with the execution of this Agreement and at Closing, there shall have been furnished to the Dealer-Managers the signed
opinion, including, without limitation, a negative assurance letter, addressed to the Dealer-Managers in the form and substance
satisfactory to the Dealer-Managers of Libertas Law Group, Inc., counsel for the Company, dated the date hereof and as of such
Closing.

 

(e)
Concurrently with the execution of this Agreement and at Closing, there shall have been furnished to the Dealer-Managers a cold
comfort letter, addressed to the Dealer-Managers and in form and substance satisfactory in all respects to the Dealer-Managers
from Cherry Bekaert dated the date hereof, and a bring-down letter dated as of such Closing.

 

(f)
Concurrently with the execution of this Agreement and at Closing, the Company shall have furnished to the Dealer-Managers a certificate,
dated the date hereof and as of such Closing, of its Chief Executive Officer or President and its Chief Financial Officer stating
that:

 

(i)
To the best of their knowledge after reasonable investigation, the representations, warranties, covenants and agreements of the
Company in Section 5 hereof are true and correct in all material respects;

 

(ii)
The conditions set forth in this Section 10 have been fulfilled;

 

(iii)
Neither the Company nor any of its Subsidiaries has sustained any material loss or interference with its business, whether or
not covered by insurance, or from any labor dispute or any legal or governmental proceeding;

 

(iv)
Subsequent to the respective dates as of which information is given in the Registration Statement and the Prospectus, there has
not been any Material Adverse Change or any development involving a prospective Material Adverse Change; and

 

(v)
They have carefully examined the Registration Statement and the Prospectus and, in their opinion (A) the Registration Statement
and the Prospectus, as of the Effective Date, did not include any untrue statement of a material fact and did not omit to state
any material fact required to be stated therein or necessary to make the statements therein not misleading, and (B) since the
Effective Date no event has occurred which should have been set forth in a supplement or amendment to the Registration Statement
or the Prospectus and has not been.

 

(g)
Neither the Company nor any of its Subsidiaries shall have sustained since the date of the latest audited financial statements
included in the Prospectus any Material Adverse Change, the effect of which is, in the judgment of the Dealer-Managers, so material
and adverse as to make it impracticable or inadvisable to proceed with the Rights Offering.

 

(h)
Nasdaq shall have approved the Rights Shares for listing, subject only to official notice of issuance.

 

    	 	21	 

    	 	 	 

    

 

(i)
All opinions, letters, evidence and certificates mentioned above or elsewhere in this Agreement shall be deemed to be in compliance
with the provisions hereof only if they are in form and substance reasonably satisfactory to counsel for the Dealer-Managers.
If any of the conditions specified in this Section 10 shall not have been fulfilled when and as required by this Agreement, this
Agreement and all obligations of the Dealer-Managers hereunder may be canceled at any time during the Rights Offering by the Dealer-Managers.
Any such cancellation shall be without liability of any Dealer-Manager to the Company. Notice of such cancellation shall be given
to the Company in writing, or by telephone and confirmed in writing.

 

11.
Indemnification and Contribution.

 

(a)
The Company agrees to hold harmless and indemnify each of Chardan, Oak Ridge and their respective affiliates and any officer,
director, employee or agent of Chardan, Oak Ridge or any such affiliates and any Person controlling (within the meaning of Section
20(a) of the Exchange Act) Chardan, Oak Ridge or any of such affiliates from and against any and all (A) losses, claims, damages
and liabilities whatsoever, under the Securities Act or otherwise (as incurred or suffered), arising out of or based upon: (i)
any untrue statement or alleged untrue statement of a material fact contained in the Offer Documents or any amendment or supplement
thereto, in any other solicitation material used by the Company or authorized by it for use in connection with the Rights Offering,
or in any blue sky application or other document prepared or executed by the Company (or based on any written information furnished
by the Company) specifically for the purpose of qualifying any or all of the Rights or the Rights Shares under the securities
laws of any state or other jurisdiction (any such application, document or information being hereinafter called a “Blue
Sky Application”) or arising out of or based upon the omission or alleged omission to state in any such document 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 (other than statements or omissions made in reliance upon and in conformity with the Dealer-Manager
Information); (ii) any withdrawal or termination by the Company of, or failure by the Company to make or consummate, the Rights
Offering if the Company fails to duly terminate the Rights Offering prior to the Expiration Date, (iii) actions taken or omitted
to be taken by an indemnified party with the consent of the Company or in conformity with actions taken or omitted to be taken
by the Company; (iv) any failure by the Company to comply with any agreement or covenant contained in this Agreement or any inaccuracy
in the representations and warranties therein; or (v) arising out of, relating to or in connection with or alleged to arise out
of, relate to or be in connection with, the Rights Offering, any of the other transactions contemplated thereby or the performance
of Chardan’s or Oak Ridge’s services to the Company with respect to the Rights Offering, and (B) all reasonable expenses
(including, but not limited to, any and all reasonable legal expenses) incurred in connection with investigating, preparing to
defend or defending any lawsuit, claim or other proceeding, commenced or threatened, whether or not resulting in any liability,
which legal or other expenses shall be reimbursed by the Company promptly after receipt of any invoices therefore from Chardan
or Oak Ridge. However, the Company will not be obligated to indemnify an indemnified party for any loss, claim, damage, liability
or expense pursuant to the preceding sentence which has been determined in a final judgment by a court of competent jurisdiction
to have resulted directly from willful misconduct or gross negligence on the part of any indemnified party.

 

    	 	22	 

    	 	 	 

    

 

(b)
Each Dealer-Manager shall jointly and severally indemnify and hold harmless the Company, its officers, directors and employees,
and each Person, if any, who controls the Company within the meaning of the Securities Act, from and against any loss, claim,
damage or liability, joint or several, or any action in respect thereof, to which the Company or any such director, officer or
controlling Person may become subject, under the Securities Act or otherwise, insofar as such loss, claim, damage, liability or
action arises out of, or is based upon: (i) any untrue statement or alleged untrue statement of a material fact contained (A)
in any Offer Documents, or in any such amendment or supplement, in any other solicitation material used by the Company or authorized
by it for use in connection with the Rights Offering or (B) in any Blue Sky Application; or (ii) the omission or alleged omission
to state in any Offer Documents, or in any such amendment or supplement, in any other solicitation material used by the Company
or authorized by it for use in connection with the Rights Offering, or in any Blue Sky Application, any material fact required
to be stated therein or necessary to make the statements therein not misleading, but in each case solely and exclusively to the
extent that the untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and in
conformity with the Dealer-Manager Information, and shall reimburse the Company and any such director, officer or controlling
Person for any legal or other expenses reasonably incurred by the Company or any such director, officer or controlling Person
in connection with investigating or defending or preparing to defend against any such loss, claim, damage, liability or action
as such expenses are incurred.

 

(c)
If any lawsuit, claim or proceeding is brought against any indemnified party in respect of which indemnification may be sought
against the indemnifying party pursuant to this Section 11, such indemnified party shall promptly notify the indemnifying party
of the commencement of such lawsuit, claim or proceeding; provided, however, that the failure so to notify the indemnifying party
shall not relieve the indemnifying party from any obligation or liability which it may have under this Section 11 except to the
extent that it has been prejudiced in any material respect by such failure and in any event shall not relieve the indemnifying
party from any other obligation or liability which it may have to such indemnified party otherwise than under this Section 11.
In case any such lawsuit, claim or proceeding shall be brought against any indemnified party and such indemnified party shall
notify the indemnifying party of the commencement of such lawsuit, claim or proceeding, the indemnifying party shall be entitled
to participate in such lawsuit, claim or proceeding, and, after written notice from the indemnifying party to such indemnified
party, to assume the defense of such lawsuit, claim or proceeding with counsel of its choice at its expense; provided, however,
that such counsel shall be satisfactory to the indemnified party in the exercise of its reasonable judgment. Notwithstanding the
election of the indemnifying party to assume the defense of such lawsuit, claim or proceeding, such indemnified party shall have
the right to employ separate counsel and to participate in the defense of such lawsuit, claim or proceeding, and the indemnifying
party shall bear the reasonable fees, costs and expenses of such separate counsel (and shall pay such reasonable fees, costs and
expenses promptly after receipt of any invoice therefor) if: (i) the use of counsel chosen by the indemnifying party to represent
such indemnified party would present such counsel with a conflict of interest; (ii) the defendants in, or targets of, any such
lawsuit, claim or proceeding include both an indemnified party and the indemnifying party, and such indemnified party shall have
reasonably concluded that there may be legal defenses available to it or to other indemnified parties which are different from
or in addition to those available to the indemnifying party (in which case the indemnifying party shall not have the right to
direct the defense of such action on behalf of the indemnified party); (iii) the indemnifying party shall not have employed counsel
satisfactory to such indemnified party, in the exercise of such indemnified party’s reasonable judgment, to represent such
indemnified party within a reasonable time after notice of the institution of any such lawsuit, claim or proceeding; or (iv) the
indemnifying party shall authorize such indemnified party to employ separate counsel at the expense of the indemnifying party.
The foregoing indemnification commitments shall apply whether or not the indemnified party is a formal party to any such lawsuit,
claim or proceeding. The indemnifying party shall not be liable for any settlement of any lawsuit, claim or proceeding effected
without its consent (which consent will not be unreasonably withheld), but if settled with such consent, the indemnifying party
agrees, subject to the provisions of this Section 11, to indemnify the indemnified party from and against any loss, damage or
liability by reason of such settlement. The Company agrees to notify each of Chardan and Oak Ridge promptly, or cause Chardan
and Oak Ridge to be notified promptly, of the assertion of any lawsuit, claim or proceeding against the Company, any of its officers
or directors or any Person who controls any of the foregoing within the meaning of Section 20(a) of the Exchange Act, arising
out of or relating the Rights Offering. The Company further agrees that any settlement of a lawsuit, claim or proceeding against
it arising out of Rights Offering shall include an explicit and unconditional release from the parties bringing such lawsuit,
claim or proceeding of Chardan, Oak Ridge, their respective affiliates, and any officer, director, employee or agent of Chardan
or Oak Ridge, and any Person controlling (within the meaning of Section 20(a) of the Exchange Act) Chardan or Oak Ridge.

 

    	 	23	 

    	 	 	 

    

 

(d)
The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities or expenses referred
to in the immediately preceding paragraph shall be deemed to include, subject to the limitations set forth above, any legal or
other expenses reasonably incurred by such indemnified party in connection with investigating, preparing to defend or defending
any such action or claim.

 

(e)
The foregoing rights to indemnification and contribution shall be in addition to any other rights which any indemnified parties
may have under common law or otherwise but shall supersede, amend and restate, retroactively, the rights to indemnification, reimbursement
and contribution provided for under the Engagement Letter.

 

(f)
In order to provide for contribution in circumstances in which the indemnification provided for in this Section 11 for any reason
held to be unavailable from any indemnifying party or is insufficient to hold harmless a party indemnified thereunder, the Company,
on the one hand, and Chardan and Oak Ridge, on the other hand, shall contribute to the aggregate losses, claims, damages, liabilities
and expenses of the nature contemplated by such indemnification provision (including any investigation, legal and other expenses
incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claims asserted, but
after deducting in the case of losses, claims, damages, liabilities and expenses suffered by the Company, any contribution received
by the Company from Persons, other than Chardan or Oak Ridge, who may also be liable for contribution, including Persons who control
the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, officers of the Company
who signed the Registration Statement and directors of the Company) as incurred to which the Company and Chardan or Oak Ridge
may be subject, in such proportions as is appropriate to reflect the relative benefits received by the Company, on the one hand,
and Chardan or Oak Ridge, on the other hand, from the Rights Offering or, if such allocation is not permitted by applicable law,
in such proportions as are appropriate to reflect not only the relative benefits referred to above but also the relative fault
of the Company, on the one hand, and Chardan or Oak Ridge, on the other hand, in connection with the statements or omissions which
resulted in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations. The
relative benefits received by the Company, on the one hand, and Chardan or Oak Ridge, on the other hand, shall be deemed to be
in the same proportion as: (x) the total proceeds from the Rights Offering (net of the fees of the Dealer-Managers set forth in
Section 6 hereof, but before deducting expenses) received by the Company bears to (y) the respective fees of each Dealer-Manager
set forth and allocated in Section 6 hereof actually received by each Dealer-Manager. The relative fault of each of the Company,
on the one hand, and Chardan or Oak Ridge, on the other hand, shall be determined by reference to, among other things, whether
the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates
to information supplied by the Company or the Dealer-Managers (which consists solely and exclusively of the Dealer-Manager Information)
and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement
or omission. The Company and the Dealer-Managers agree that it would not be just and equitable if contribution pursuant to this
Section 11(f) were determined by pro rata allocation or by any other method of allocation which does not take account of the equitable
considerations referred to above in this Section. The aggregate amount of losses, liabilities, claims, damages and expenses incurred
by an indemnified party and referred to above in this Section 11 shall be deemed to include any legal or other expenses reasonably
incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding
by any judicial, regulatory or other legal or governmental agency or body, commenced or threatened, or any claim whatsoever based
upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section
11: (i) no Dealer-Manager shall be required to contribute any amount in excess of the fees actually received by such Dealer-Manager
from the Company in connection with the Rights Offering and (ii) no Person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent
misrepresentation. For purposes of this Section 11, each Person controlling a Dealer-Manager within the meaning of Section 15
of the Securities Act or Section 20 of the Exchange Act shall have the same rights to contribution as such Dealer-Manager, and
each Person, if any, who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange
Act, each officer of the Company who shall have signed the Registration Statement and each director of the Company shall have
the same rights to contribution as the Company, subject in each case to clauses (i) and (ii) of the immediately preceding sentence.
Any party entitled to contribution will, promptly after receipt of notice of commencement of any action, suit or proceeding against
such party in respect of which a claim for contribution may be made against another party or parties, notify each party or parties
from whom contribution may be sought, but the omission to so notify such party or parties shall not relieve the party or parties
from whom contribution may be sought from any obligation it or they may have under this Section 11(f) or otherwise.

 

    	 	24	 

    	 	 	 

    

 

12.
Effective Date of Agreement; Termination.

 

(a)
This Agreement shall become effective upon the later of the time on which the Dealer-Managers shall have received notification
of the effectiveness of the Registration Statement and the time which this Agreement shall have been executed by all of the parties
hereto.

 

(b)
At any time during the Rights Offering, this Agreement may be terminated by the Dealer-Managers by giving notice as hereinafter
provided to the Company if:

 

(i)
the Company shall have failed, refused or been unable, at any applicable time during the Rights Offering, to perform any material
agreement on its part to be performed hereunder;

 

(ii)
any other material condition of the Dealer-Managers’ obligations as set forth in Section 10 or elsewhere hereunder is not
fulfilled;

 

(iii)
trading in securities generally on the New York Stock Exchange, the Nasdaq Stock Market or the NYSE American or in the OTCQB,
or trading in any securities of the Company on any exchange or in the over-the-counter market, shall have been suspended or minimum
prices shall have been established on any such exchanges or such market by the Commission, by such exchange or by any other regulatory
body or Governmental Authority;

 

(iv)
a banking moratorium shall have been declared by Federal or state authorities;

 

(v)
there shall have occurred any outbreak or escalation of hostilities or acts of terrorism involving the United States or there
is a declaration of a national emergency or war by the United States or there shall have been any other calamity or crisis or
any change in political, financial or economic conditions of the United States; or

 

(vi)
there shall have occurred such a material adverse change in general economic, political or financial conditions (or the effect
of international conditions on the financial markets in the United States shall be such) as to make it, in the judgment of the
Dealer-Managers, inadvisable or impracticable to solicit exercises of the Rights or perform any other of its obligations hereunder.

 

(c)
At any time during the Rights Offering, this Agreement may be terminated by the Company by giving notice as hereinafter provided
to the Dealer-Managers if the Company’s Board of Directors determines in good faith that the Rights Offering is no longer
in the best interests of the Company and its stockholders.

 

(d)
Any termination of this Agreement pursuant to this Section 12 shall be without liability on the part of the Company or the Dealer-Managers,
except as otherwise provided in Section 11 hereof. Any notice referred to above may be given at the address specified in Section
14 hereof in writing or by facsimile or telephone, and if by telephone, shall be immediately confirmed in writing.

 

13.
Survival of Certain Provisions. The agreements contained in Section 11 hereof and the representations, warranties and agreements
of the Company contained in Sections 5, 6 and 7 hereof shall survive the consummation of or failure to commence the Rights Offering
and shall remain in full force and effect, regardless of any termination or cancellation of this Agreement or any investigation
made by or on behalf of any indemnified party; provided however than in the event of any failure to commence or consummate
the Rights Offering, the agreements contained in Section 6 shall terminate and be of no further force or effect.

 

    	 	25	 

    	 	 	 

    

 

14.
Notices. All notices or other communications hereunder shall be in writing, and (a) if sent to the Dealer-Managers, shall
be mailed, delivered, or faxed and confirmed in writing, to: (i) Chardan Capital Markets, LLC, 17 State Street, Suite 2100, New
York, New York 10004, Fax Number: ________, Attention: _________, and (ii) The Oak Ridge Financial Services Group, Inc., 701 Xenia
Avenue, Suite #100 Minneapolis, Minnesota 55416, Attention: ________, in each case, with a copy to Ellenoff Grossman & Schole
LLP, 1345 Avenue of the Americas, 11th Floor, New York, New York, 10105 E-mail: capmkts@egsllp.com, Attention: Robert F. Charron
and (b) if sent to the Company shall be mailed, delivered, or faxed and confirmed in writing to the Company and its counsel at
the address set forth in the Registration Statement. Any such notices and other communications shall take effect at the time of
receipt thereof.

 

15.
Parties. This Agreement shall inure to the benefit of and be binding upon each Dealer-Manager, the Company and their respective
successors. This Agreement and the terms and provisions hereof are for the sole benefit of only those Persons, except that the
representations, warranties, indemnities and agreements of the Company contained in this Agreement shall also be deemed to be
for the benefit of the Person or Persons, if any, who control the Dealer-Managers within the meaning of Section 15 of the Act.
Nothing in this Agreement shall be construed to give any Person, other than the Persons referred to in this Section, any legal
or equitable right, remedy or claim under or in respect of this Agreement or any provision contained herein.

 

16.
Amendment. This Agreement may not be amended or modified except in writing signed by each of the parties hereto.

 

17.
Governing Law; Venue. This Agreement shall be deemed to have been executed and delivered in New York and both this Agreement
and the transactions contemplated hereby shall be governed as to validity, interpretation, construction, effect, and in all other
respects by the laws of the State of New York, without regard to the conflicts of laws principals thereof (other than Section
5-1401 of The New York General Obligations Law). Each of the Dealer-Managers and the Company: (a) agrees that any legal suit,
action or proceeding arising out of or relating to this Agreement and/or the transactions contemplated hereby shall be instituted
exclusively in the Supreme Court of the State of New York, New York County, or in the United States District Court for the Southern
District of New York; (b) waives any objection which it may have or hereafter to the venue of any such suit, action or proceeding;
and (c) irrevocably consents to the jurisdiction of Supreme Court of the State of New York, New York County, or in the United
States District Court for the Southern District of New York in any such suit, action or proceeding. Each of the Dealer-Managers
and the Company further agrees to accept and acknowledge service of any and all process which may be served in any such suit,
action or proceeding in the Supreme Court of the State of New York, New York County, or in the United States District Court for
the Southern District of New York and agrees that service of process upon the Company mailed by certified mail to the Company’s
address or delivered by Federal Express via overnight delivery shall be deemed in every respect effective service of process upon
the Company, in any such suit, action or proceeding, and service of process upon the Dealer-Managers mailed by certified mail
to each Dealer-Manager’s address or delivered by Federal Express via overnight delivery shall be deemed in every respect
effective service process upon such Dealer-Manager, in any such suit, action or proceeding. THE COMPANY (ON BEHALF OF ITSELF
AND, TO THE FULLEST EXTENT PERMITTED BY LAW, ON BEHALF OF ITS RESPECTIVE EQUITY HOLDERS AND CREDITORS) HEREBY WAIVES ANY RIGHT
THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY CLAIM BASED UPON, ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT AND THE
TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, THE REGISTRATION STATEMENT, ANY PRELIMINARY PROSPECTUS AND THE PROSPECTUS.

 

18.
Entire Agreement. This Agreement, together with the exhibit attached hereto and as the same may be amended from time to
time in accordance with the terms hereof, contains the entire agreement among the parties hereto relating to the subject matter
hereof and there are no other or further agreements outstanding not specifically mentioned herein.

 

19.
Severability. If any term or provision of this Agreement or the performance thereof shall be invalid or unenforceable to
any extent, such invalidity or unenforceability shall not affect or render invalid or unenforceable any other provision of this
Agreement and this Agreement shall be valid and enforced to the fullest extent permitted by law.

 

20.
Headings. The headings herein are inserted for convenience of reference only and are not intended to be part of, or to
affect the meaning or interpretation of, this Agreement.

 

21.
Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original,
but all such counterparts shall together constitute one and the same instrument. Delivery of a signed counterpart of this Agreement
by facsimile or other electronic transmission shall constitute valid and sufficient delivery thereof.

 

[Signature
Page Follows]

 

    	 	26	 

    	 	 	 

    

 

If
the foregoing correctly sets forth your understanding, please so indicate in the space provided below for that purpose, whereupon
this letter shall constitute a binding agreement among us as of the date first above written.

 

	 	 	 	Very
    truly yours,
	 	 	 	 
	 	 	 	CHANTICLEER
    HOLDINGS, INC.
	 	 	 	 
	 	 	 	By:	             
	 	 	 	Name:	 
	 	 	 	Title:	 
	 	 	 	 	 
	Accepted
        by the Dealer-

        Managers
        as of the date first

        written
        above:
	 	 	 
	 	 	 	 	 
	CHARDAN
    CAPITAL MARKETS, LLC	 	 	 
	 	 	 	 	 
	By:	       	 	 	 
	Name:	 	 	 	 
	Title:	 	 	 	 
	 	 	 	 	 
	THE Oak Ridge Financial Services Group, Inc.	 	 
	 	 	 	 	 
	By:		 	 	 
	Name:	 	 	 	 
	Title:	 	 	 	 

 

[Signature
Page to Dealer-Manager Agreement]

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