Document:

AMENDMENT AGREEMENT

 

 

THIS AMENDMENT AGREEMENT,
dated as of September 27, 2013 (this “Amendment Agreement"), is made by and
between Prime Acquisition Corp., a Cayman Islands company (“Company”) and
BHN LLC, a New York limited liability company (“Manger”, and together with Company, the "Parties",
and each, a "Party"). Capitalized terms used and not defined in this Amendment
Agreement have the respective meanings assigned to them in the Management Agreement (as defined below).

 

WHEREAS, Company and
Manager have entered into a Management Agreement, dated as of May 22, 2013 (each a "Management
Agreement");

 

WHEREAS, the Parties
are desirous to amend the Management Agreement to memorialize their understanding regarding the determination of the Manager’s
compensation; and

 

WHEREAS, pursuant to
Section 19 the Management Agreement, any amendment must be contained in a written agreement signed by the parties thereto.

 

NOW, THEREFORE, in
consideration of the premises set forth above and other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties agree as follows:

 

		1.	Amendment. The Management Agreement is hereby
amended as follows:

 

		a)	Deleting in its entirety the third Whereas clause, and replacing it with the following:

 

"WHEREAS,
the Company and/or its Subsidiaries have identified acquisition or investment opportunities pursuant to which the Company and/or
its Subsidiaries shall acquire Assets (as defined below) or cash in exchange for stock in the Company or cash (the “Transactions”);"

 

		b)	Adding a new Whereas clause as follows:

 

“WHEREAS,
the first investment by the Company and/or its Subsidiaries shall be the acquisition of certain European real estate and renewable
energy Assets and cash to close on or before October 31, 2013 (the “First Transaction”);

 

		c)	Deleting in its entirety Section 7(c)(i), and replacing it with the following:

 

    	 

    	 

    

“A one-time
equity grant equal to 3.5% of the issued and Outstanding Shares of Common Stock as of the last Closing of the First Transaction
but in no event later than as of October 31, 2013 in the form of shares of Restricted Common Stock, provided the minimum
value of the Assets acquired pursuant to the Transaction (based on the consideration paid for the Assets plus any debt assumed)
at the time of the last Closing of the First Transaction, but in no event later than as of October 31, 2013 is greater than $150
million. In the event (i) the Green Certificates Rights Purchase Price (as defined in that certain purchase agreement dated as
of August 30, 2013 by and among Company, Prime BHN Luxembourg S.àr.l., a Luxembourg company and wholly owned subsidiary
of Prime (“LuxCo”), Manager and Radiomarelli, SA, a Swiss Company, and in that certain purchase agreement dated as
of August 30, 2013 by and among Company, LuxCo, Manager and Futurum Energy SA, a Swiss Company, as each purchase agreement may
be amended, modified or supplemented and in effect from time to time, each a “Green Certificates Purchase Agreement”),
is reduced pursuant to Sections 2.2(c), 2.2(d) or 2.3(g) of the applicable Green Certificates Purchase Agreement (the “Shortfall”),
and (ii) the Manger is not able to procure the Company another Asset having a fair market value equal to the Shortfall by December
31, 2014, the Manager’s number of shares of Restricted Common Stock issued pursuant to this Section 7(c)(i) shall: be repurchasable
by the Company, upon notice to the Manager, at a price of $0.01 per share, such that the number of shares repurchased is proportional
to the reduction in the Green Certificates Rights Purchase Price pursuant to Sections 2.2(c), 2.2(d) or 2.3(g) of the Green Certificates
Purchase Agreement.”

 

		c)	Adding the following definitions to Article I:

 

“Assets” shall mean
any item of value including cash, machinery, inventory, land, buildings, green certificates; any enforceable claims against others,
such as accounts receivable, any other rights, such as contract rights, copyrights, patents, trademarks; and goodwill."

 

“Outstanding Shares of Common
Stock” shall consist of all outstanding ordinary shares of the Company, including all shares issued in connection with the
Transaction on or prior to October 31, 2013 whether or not such shares are placed into escrow or subject to vesting or forfeiture
provisions.

 

2.Miscellaneous.

 

		a)	Limited Effect; No Modifications. The provision set forth in this Amendment Agreement shall
be limited precisely as written. Nothing contained in this Amendment Agreement will be deemed or construed to amend, supplement
or modify the Management Agreement or otherwise affect the rights and obligations of any party thereto, all of which remain in
full force and effect.

 

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		b)	This Amendment Agreement is governed by, and construed in accordance with, the laws of the State
of New York, without regard to the conflict of laws provisions of such State.
	 	 	 

		c)	This Amendment Agreement shall inure to the benefit of and be binding upon each of the Parties
and each of their respective successors and assigns.
	 	 	 

		d)	The headings in this Amendment Agreement are for reference only and do not affect the interpretation
of this Amendment Agreement.
	 	 	 

		e)	This Amendment Agreement may be executed in counterparts, each of which is deemed an original,
but all of which constitutes one and the same agreement. Delivery of an executed counterpart of this Amendment Agreement electronically
or by facsimile shall be effective as delivery of an original executed counterpart of this Amendment Agreement.
	 	 	 

		f)	This Amendment Agreement constitutes the sole and entire agreement of the Parties with respect
to the subject matter contained herein, and supersedes all prior and contemporaneous understandings, agreements, representations
and warranties, both written and oral, with respect to such subject matter.
	 	 	 

		g)	Each Party shall pay its own costs and expenses in connection with this Amendment Agreement (including
the fees and expenses of its advisors, accounts and legal counsel).

 

[Signature page follows]

 

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IN WITNESS WHEREOF, Parent
and BHN have executed this Amendment Agreement as of the date first written above.

 

	PARENT:	
        Prime Acquisition Corp.

         

	 	
        By /s/ Diana Liu                      

         

        Name: Diana Liu

        Title: Chief Executive Officer

 

 

	BHN:	
        BHN LLC

         

	 	
        By /s/ Marco Prete                  

         

        Name: Marco Prete

        Title: Managing MemberTHIS SENIOR SECURED CONVERTIBLE PROMISSORY
NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”) OF THE SECURITIES LAWS OF ANY
STATE. NO SALE OR DISPOSITION MAY BE EFFECTED EXCEPT IN COMPLIANCE WITH RULE 144 UNDER THE ACT OR AN EFFECTIVE REGISTRATION STATEMENT
RELATED THERETO OR AN APPLICABLE EXEMPTION THEREFROM.

 

SENIOR SECURED CONVERTIBLE PROMISSORY
NOTE

 

	$889,833.00	September 30, 2013

 

For value received,
Prime Acquisition Corp., a Cayman Islands company (“Company”), hereby promises to pay to the order of
Chardan Capital Markets, LLC, a New York limited liability company or its assignee or transferee (“Purchaser”),
the principal sum of EIGHT HUNDRED EIGHTY NINE THOUSAND EIGHT HUNDRED THIRTY THREE DOLLARS ($889,833.00) with interest on the outstanding
principal amount at the rate of five percent (5.0%) per annum, compounded annually based on a 365-day year, on December 31, 2013
(the “Maturity Date”). Interest shall commence with the date hereof and shall continue on the outstanding
principal until paid in full. This note is being issued in lieu of the payment of $889,833.00 of the amount to be paid to Chardan
Capital Market, LLC pursuant to Section 1.5 of that certain Underwriting Agreement dated March 24, 2011.

 

1.                 
Pre-Payment.

 

1.1             
Optional Pre-Payment. This note may be pre-paid in whole or in part
at any time prior to the Maturity Date without penalty.

 

1.2             
Mandatory Pre-Payment. If, at any time prior to the Maturity Date,
the Company issues and sells securities or enters into a joint venture transaction pursuant to which cash is made available to
the Company and this note has not been paid in full, then the outstanding principal balance of this Note and all accrued but unpaid
interest thereon shall become immediately due and payable to the Purchaser.

 

2.                 
Conversion Rights. If this note has not been paid in full within
five business days after the Maturity Date, the Purchaser has the right, but not the obligation, to convert this note into fully
paid and non-assessable ordinary shares of the Company (“Conversion Shares”). The number of Conversion Shares
to be received by any Purchaser in connection with such conversion shall be an amount determined by dividing (x) the sum of the
outstanding principal amount and/or accrued interest payable to such Purchaser by (y) $9.10 (the “Conversion Price”).
The Purchaser shall have the right, but not the obligation, to convert all, but not part, of the issued and outstanding principal
amount and accrued interest into Conversion Shares at the Conversion Price.

 

2.1             
Fractional Shares. No fractional shares of Company’s capital
stock will be issued upon conversion of this note. In lieu of any fractional share to which Purchaser would otherwise be entitled,
Company will pay to Purchaser in cash the amount of the unconverted principal and interest balance of this note that would otherwise
be converted into such fractional share.

 

    	 

    	 

    

 

2.2             
Effect of Conversion. Upon conversion of this note pursuant to this
Section 2, Purchaser shall surrender this note, duly endorsed, at the principal offices of Company. This note will be deemed converted
on the date the Purchaser delivers this note and a conversion notice to the Company. Prior to any conversion of this note pursuant
to Section 2.1, Purchaser shall execute and deliver to Company a purchase agreement reasonably acceptable to Company containing
customary representations and warranties and transfer restrictions. At its expense, the Company will, as soon as practicable thereafter,
issue and deliver to Purchaser, at Purchaser’s address set forth on the signature page hereto or such other address requested
by Purchaser, a certificate or certificates for the number of Conversion Shares to which Purchaser is entitled upon such conversion
(bearing such legends as are customary pursuant to applicable state and federal securities laws) and any other securities and property
to which Purchaser is entitled upon such conversion under the terms of this note, including a check payable to Purchaser for any
cash amounts payable as a result of any fractional shares as described herein.

 

2.3             
Adjustment Provisions. The Conversion Price and number of Conversion
Shares to be issued upon conversion determined pursuant to this note shall be subject to adjustment from time to time upon the
occurrence of certain events during the period that this conversion right remains outstanding, as follows:

 

(a)               
Reclassification. If the Company at any time shall, by reclassification or otherwise, change its ordinary shares
into the same or a different number of securities of any class or classes, this note, as to the unpaid principal amount and accrued
interest thereon, shall thereafter be deemed to evidence the right to purchase an adjusted number of such securities and kind of
securities as would have been issuable as the result of such change with respect to the ordinary shares (i) immediately prior to
or (ii) immediately after, such reclassification or other change, at the sole election of the Purchaser.

 

(b)              
Stock Splits, Combinations and Dividends. If the Company’s ordinary shares are subdivided or combined into
a greater or smaller number of shares of shares, or if a dividend is paid on the Company’s ordinary shares in additional
ordinary shares, the Conversion Price shall be proportionately reduced in case of subdivision of shares or stock dividend or proportionately
increased in the case of combination of shares, in each such case by the ratio which the total number of shares of ordinary shares
outstanding immediately after such event bears to the total number of shares of ordinary shares outstanding immediately prior to
such event.

 

3.                 
Default Remedies

 

3.1                Events
of Default. Each of the following shall constitute an event of default (each, an
“Event of Default”) under this Note:

 

(a)               
The Company shall fail to pay (i) when due any principal or interest payment or (ii) any other payment required
under the terms of this note on the date due, and, in each case, such payment shall not have been made within five business days
of the applicable due date;

 

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(b)              
The Company does not enter in a security agreement in favor of the Purchaser will respect to all of its assets by November
30, 2013;

 

(c)               
The Company files any petition or action for relief under any bankruptcy, reorganization, insolvency or moratorium law or
any other law for the relief of, or relating to, debtors, now or hereafter in effect, or makes any general assignment for the benefit
of creditors or takes any corporate action in furtherance of any of the foregoing;

 

(d)              
An involuntary petition is filed against the Company (unless such petition is dismissed or discharged within thirty (30)
days) under any bankruptcy statute now or hereafter in effect, or a custodian, receiver, trustee, assignee for the benefit of creditors
(or other similar official) is appointed to take possession, custody or control of any property of the Company; or

 

(e)               
The Company’s shareholders or board of directors affirmatively vote to liquidate, dissolve, or wind up the Company
or the Company otherwise ceases to early on its ongoing business operations.

 

3.2             
Following the occurrence and during the continuance of an Event of Default, the Company shall pay additional interest
on the outstanding principal balance of this note in an amount equal to ten percent (10%) per annum, and all outstanding obligations
under this note, including unpaid interest, shall continue to accrue interest at such additional interest rate from the date of
such Event of Default until the date such Event of Default is cured or waived.

 

4.                 
Waiver; Payment Of Fees And Expenses. Company waives presentment
and demand for payment, notice of dishonor, protest and notice of protest of this note, and shall pay all costs of collection when
incurred, including, without limitation, reasonable attorneys’ fees, costs and other expenses. The right to plead any and
all statutes of limitations as a defense to any demands hereunder is hereby waived to the full extent permitted by law. No delay
by Purchaser shall constitute a waiver, election or acquiescence by it.

 

5.                 
Cumulative Remedies. Purchaser shall have all other rights and remedies
not inconsistent herewith as provided under the UCC, by law or in equity. No exercise by Purchaser of one right or remedy shall
be deemed an election, and no waiver by Purchaser of any Event of Default shall be deemed a continuing waiver of such Event of
Default or the waiver of any other Event of Default.

 

6.                 
Miscellaneous

 

6.1             
Governing Law. THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW. THE COMPANY HEREBY CONSENTS
AND AGREES THAT THE STATE AND/OR FEDERAL COURTS LOCATED IN THE COUNTY OF NEW YORK, STATE OF NEW YORK SHALL HAVE EXCLUSIVE JURISDICTION
TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN THE COMPANY, ON THE ONE HAND, AND THE HOLDER AND/OR ANY OTHER CREDITOR PARTY,
ON THE OTHER HAND, PERTAINING TO THIS NOTE OR ANY OF THE OTHER RELATED AGREEMENTS OR TO ANY MATTER ARISING OUT OF OR RELATED TO
THIS NOTE OR ANY OF THE RELATED AGREEMENTS; PROVIDED, THAT THE COMPANY ACKNOWLEDGES THAT ANY APPEALS FROM THOSE COURTS MAY HAVE
TO BE HEARD BY A COURT LOCATED OUTSIDE OF THE COUNTY OF NEW YORK, STATE OF NEW YORK. THE COMPANY EXPRESSLY SUBMITS AND CONSENTS
IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND THE COMPANY HEREBY WAIVES ANY OBJECTION
WHICH IT MAY HAVE BASED UPON LACK OF PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM NON CONVENIENS.

 

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6.2             
Successors and Assigns; Assignment. The terms and conditions of this
note shall inure to the benefit of and be binding upon the respective successors and assigns of the parties. Company may not assign
this note or delegate any of its obligations hereunder without the written consent of the Purchaser. Purchaser may assign this
Note and its rights hereunder at any time without consent of Company.

 

6.3             
Titles and Subtitles. The titles and subtitles used in this note
are used for convenience only and are not to be considered in construing or interpreting the note.

 

6.4             
Notices. All notices required or permitted hereunder shall be in
writing and shall be deemed effectively given: (a) upon personal delivery to the party to be notified, (b) five (5) days
after having been sent by registered or certified mail, return receipt requested, postage prepaid, (c) when sent by confirmed
electronic mail or facsimile if sent during normal business hours of the recipient; if not, then on the next business day or (d) one
(1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of
receipt. All communications shall be sent, as applicable, to the Company at its principal office and to the Purchaser at the address
set forth on the signature page hereto, or at such other address as the Company or the Purchaser may designate by ten (10) days
advance written notice to the other party hereto.

 

6.5             
Amendment; Modification; Waiver. This Note may be amended, modified
or terminated and the observance of any term hereof may be waived (either generally or in a particular instance and either retroactively
or prospectively) only by a written instrument executed by the Company and the Purchaser. No waivers of or exceptions to any term,
condition or provision of this Note, in any one or more instances, shall be deemed to be, or construed as, a further or continuing
waiver of any such term, condition or provision.

 

6.6             
Usury. In the event any interest is paid on this Note which is deemed
to be in excess of the then legal maximum rate, then that portion of the interest payment representing an amount in excess of the
then legal maximum rate shall be deemed a payment of principal and applied against the principal of this Note.

 

6.7             
Counterparts. This note may be executed in two or more counterparts,
each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

6.8             
Further Assurances. The Company shall execute, acknowledge where
appropriate, and deliver from time to time promptly at the request of the Purchaser all such instruments and documents as are reasonably
necessary or desirable to carry out the intent and purposes of this note.

 

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6.9             
Loss, Etc., of Note. Upon receipt of evidence satisfactory to the
Company of the loss, theft, destruction or mutilation of this note, and of indemnity reasonably satisfactory to the Company if
lost, stolen or destroyed, and upon surrender and cancellation of this note if mutilated, and upon reimbursement of the Company’s
reasonable incidental expenses, the Company shall execute and deliver to the Purchaser a new note of like date, tenor and denomination.

 

6.10         
Entire Agreement. The terms and provisions of this note supersede
all written and oral agreements and representations made by or on behalf of the Company. This note contains the entire agreement
of the parties with respect to the subject matter hereof.

 

[SIGNATURE PAGE TO FOLLOW]

 

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IN
WITNESS WHEREOF, the parties hereto have executed this Senior Secured Convertible Promissory Note as of the day and year first
written above.

 

PRIME ACQUISITION CORP.

 

By: /s/                                                         

Name:
 Title:

 

AGREED TO AND ACCEPTED:

 

CHARDAN CAPITAL MARKETS, LLC

 

By: /s/ Kerry Propper

Name: Kerry Propper

Title: CEO

 

 

 

Address:

 

17 State St. Ste. 1600

New York, NY 10004

 

 

 

[Signature Page to Senior Secured Convertible Promissory Note]

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