Document:

FAT
BRANDS INC.

 

Maximum
1,200,000 Shares of Series B Cumulative Preferred Stock

720,000
Warrants

 

SELLING
AGENCY AGREEMENT

 

October
3, 2019

 

Tripoint
Global Equities, LLC

1450
Broadway, 26th Floor

New
York, New York 10018

 

Digital
Offering, LLC

1121
Glenneyre St.,

Laguna
Beach, CA 92651

 

Ladies
and Gentlemen:

 

Fat
Brands Inc., a Delaware corporation (the “Company”), proposes, subject to the terms and conditions contained
in this Selling Agency Agreement (this “Agreement”), to issue and sell on a “best efforts” basis
up to a maximum of (i) 1,200,000 shares of Series B Cumulative Preferred Stock, and (ii) 720,000 warrants to investors (collectively,
the “Investors”) in a public offering (the “Offering”) pursuant to Regulation A through
Tripoint Global Equities, LLC, and its online division, Banq®, and Digital Offering LLC (collectively, the “Selling
Agents”) with Tripoint Global Equities, LLC acting as the representative of the Selling Agents (the “Representative”),
acting on a best efforts basis only, in connection with such sales. The shares of Series B Cumulative Preferred Stock to be sold
in this Offering are referred to herein as the “Shares.” The warrants to be sold in this Offering are referred
to herein as the “Warrants,” and collectively with the Shares, the “Offered Securities.”
The Offered Securities are more fully described in the Offering Statement (as hereinafter defined).

 

The
Company hereby confirms its agreement with the Selling Agents concerning the sale of the Offered Securities, as follows:

 

1.
Agreement to Act on a Best Efforts Basis. On the basis of the representations, warranties and agreements of the Company
herein contained and subject to all the terms and conditions of this Agreement, the Selling Agents agree to act on a best efforts
basis only, in connection with the issuance and sale by the Company of the Offered Securities to the Investors. Under no circumstances
will the Selling Agents be obligated to underwrite or purchase any of the Offered Securities for their own account or otherwise
provide any financing. The Company will pay to the Selling Agents a fee equal to seven point twenty eight percent (7.28%) (the
“Fee”) of the gross Offering proceeds received by the Company from the sale of the Offered Securities, which
shall be allocated by the Selling Agents to Dealers (as hereinafter defined) participating in the Offering, in their sole discretion;
as set forth on the cover page of the Final Offering Circular (as hereinafter defined).

 

The
Selling Agents shall have the right to enter into selected dealer agreements with other broker-dealers participating in the Offering
(each dealer being referred to herein as a “Dealer” and said dealers being collectively referred to herein
as the “Dealers”). The Fee shall be re-allowable, in whole or in part, to the Dealers. The Company will not
be liable or responsible to any Dealer for direct payment of compensation to any Dealer, it being the sole and exclusive responsibility
of the Selling Agent for payment of compensation to Dealers.

 

2.
Delivery and Payment.

 

(a)
On or after the date of this Agreement, the Company, the Representative and Wilmington Trust (the “Escrow Agent”)
will enter into an Escrow Agreement substantially in the form included as an exhibit to the Offering Statement (the “Escrow
Agreement”), pursuant to which escrow accounts will be established (the “Escrow Accounts”), at the
Company’s expense, for the benefit of the investors.

 

    	 	1	 

    	 

    

 

(b)
Prior to the initial Closing Date (as hereinafter defined) of the Offering and any subsequent Closing Date, (i) each Investor
will execute and deliver a Purchaser Questionnaire and Subscription Agreement (each, an “Investor Subscription Agreement”)
to the Company and the Company will make available to the Selling Agent and the Escrow Agent copies of each such Investor Subscription
Agreement; (ii) each Investor will transfer to the Escrow Account funds in an amount equal to the price per Share and accompanying
Warrant as shown on the cover page of the Final Offering Circular multiplied by the number of Shares and accompanying Warrants
subscribed by such Investor; (iii) subscription funds received from any Investor will be promptly transmitted to the Escrow Accounts
in compliance with Rule 15c2-4 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and
(iv) the Escrow Agent will notify the Company and the Representative in writing as to the balance of the collected funds in the
Escrow Accounts.

 

(c)
If the Escrow Agent shall have received written notice from the Company and the Representative on or before 4:00 p.m., New York
City time, on one or more closing dates as may be agreed upon from time to time by the Company and the Representative (each such
date, a “Closing Date”), the Escrow Agent will release the balance of the Escrow Accounts for collection by
the Company and the Representative as provided in the Escrow Agreement and the Company shall deliver the Offered Securities purchased
on such Closing Date to the Investors, which delivery may be made through the facilities of the Depository Trust Company (“DTC”)
or via book entry with the Company’s securities registrar and transfer agent, V Stock Transfer, LLC (the “Transfer
Agent”). The initial closing (the “Closing”) and any subsequent closing (each, a “Subsequent
Closing”) shall take place at the office of the Representative or such other location as the Representative and the
Company shall mutually agree. All actions taken at the Closing shall be deemed to have occurred simultaneously on the date of
the Closing and all actions taken at any Subsequent Closing shall be deemed to have occurred simultaneously on the date of any
such Subsequent Closing.

 

(d)
If the Company and the Representative determine that the Offering will not proceed, then the Escrow Agent will promptly return
the funds to the Investors without interest.

 

(e)
On each Closing Date, the Company will issue to the Selling Agents (and/or their respective designees) warrants to purchase units
equal to 1.25% of the total securities sold in the Offering(the “Selling Agents’ Warrants”) each unit
consisting of one share of Series B Cumulative Preferred Stock and one warrant to purchase 0.60 shares of Common Stock at $8.50
per share. The Selling Agents’ Warrants shall be in the form of Exhibit B attached hereto. The Selling Agents’
Warrants shall have an exercise price per unit equal to $25.00. The Selling Agent’s Warrants will be exercisable at any
time following the one year anniversary of the Qualification Date (as defined below) and thereafter, and on or before the close
of business on the five (5) year anniversary of the Qualification Date. The Selling Agents understand and agree that there are
significant restrictions pursuant to Financial Industry Regulatory Authority (“FINRA”) Rule 5110 against transferring
the Selling Agents’ Warrants and the underlying securities during the three hundred and sixty (360) days after the Qualification
Date and by their acceptance thereof shall agree that they will not sell, transfer, assign, pledge or hypothecate the Selling
Agents’ Warrants, or any portion thereof, or be the subject of any hedging, short sale, derivative, put or call transaction
that would result in the effective economic disposition of such securities for a period of three hundred and sixty (360) days
following the Qualification Date to anyone other than (i) a Selling agent or Dealer in connection with the Offering or (ii) a
bona fide officer or partner of a Selling Agent or Dealer; and only if any such transferee agrees to the foregoing lock-up restrictions.

 

3.
Representations and Warranties of the Company. The Company represents and warrants and covenants to the Selling Agents
that:

 

(a)
The Company has filed with the Securities and Exchange Commission (the “Commission”) an offering statement
on Form 1-A (File No. 024-11012) (collectively, with the various parts of such offering statement, each as amended as of the Qualification
Date for such part, including any Offering Circular and all exhibits to such offering statement, the “Offering Statement”)
relating to the Offered Securities pursuant to Regulation A as promulgated under the Securities Act of 1933, as amended (the “Act”),
and the other applicable rules, orders and regulations (collectively referred to as the “Rules and Regulations”)
of the Commission promulgated under the Act. As used in this Agreement:

 

(1)
“Applicable Time” means 9:00 am (Eastern time) on the date of this Agreement;

 

    	 	2	 

    	 

    

 

(2)
“Final Offering Circular” means the final offering circular relating to the public offering of the Offered
Securities as filed with the Commission pursuant to Regulation A of the Rules and Regulations;

 

(3)
“Preliminary Offering Circular” means any preliminary offering circular relating to the Offered Securities
included in the Offering Statement pursuant to Regulation A of the Rules and Regulations;

 

(4)
“Pricing Disclosure Materials” means the most recent Preliminary Offering Circular and the materials identified
in Schedule 1 hereto;

 

(5)
“Qualification Date” means the date as of which the Offering Statement was or will be qualified with the Commission
pursuant to Regulation A, the Act and the Rules and Regulations; and

 

(6)
“Testing-the-Waters Communication” means any video or written communication with potential investors undertaken
in reliance on Rule 255 of the Rules and Regulations.

 

(b)
The Offering Statement has been filed with the Commission in accordance with the Act and Regulation A of the Rules and Regulations;
no stop order of the Commission preventing or suspending the qualification or use of the Offering Statement, or any amendment
thereto, has been issued, and no proceedings for such purpose have been instituted or, to the Company’s, knowledge, are
contemplated by the Commission.

 

(c)
The Offering Statement, at the time it became qualified, as of the date hereof, and as of each Closing Date, conformed and will
conform in all material respects to the requirements of Regulation A, the Act and the Rules and Regulations.

 

(d)
The Offering Statement, at the time it became qualified, as of the date hereof, and as of each Closing Date, did not and will
not, contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary
to make the statements therein not misleading.

 

(e)
The Preliminary Offering Circular did not, as of its date, contain an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which
they were made, not misleading; provided, however, that the Company makes no representation or warranty with respect to the statements
contained in the Preliminary Offering Circular as provided by the Selling Agents in Section 8(b).

 

(f)
The Final Offering Circular will not, as of its date and on each Closing Date, contain an untrue statement of a material fact
or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided, however, that the Company makes no representation or warranty
with respect to the statements contained in the Final Offering Circular as provided by the Selling Agents in Section 8(b).

 

(g)
the Pricing Disclosure Materials and each Testing-the-Waters Communication, when considered together, did not, as of the Applicable
Time, contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary
to make the statements therein, in light of the circumstances under which they were made, not misleading, provided, however, that
the Company makes no representation or warranty with respect to the statements contained in the Preliminary Offering Circular
as provided by the Selling Agent in Section 8(b).

 

(h)
As of each Closing Date, the Company is duly organized and validly existing as a corporation in good standing under the laws of
the State of Delaware. The Company has full power and authority to conduct all the activities conducted by it, to own and lease
all the assets owned and leased by it and to conduct its business as presently conducted and as described in the Offering Statement,
the Pricing Disclosure Materials and the Final Offering Circular. The Company is duly licensed or qualified to do business and
in good standing as a foreign organization in all jurisdictions in which the nature of the activities conducted by it or the character
of the assets owned or leased by it makes such licensing or qualification necessary, except where the failure to be so qualified
or in good standing or have such power or authority would not, individually or in the aggregate, reasonably be expected to have
a material adverse effect on or affecting the business, prospects, properties, management, financial position, stockholders’
equity, or results of operations of the Company (a “Material Adverse Effect”). Complete and correct copies
of the certificate of incorporation, certificates of designation and of the bylaws of the Company and all amendments thereto have
been made available to the Selling Agents, and no changes therein will be made subsequent to the date hereof and prior to any
Closing Date.

 

    	 	3	 

    	 

    

 

(i)
The Company has no subsidiaries, nor does it own a controlling interest in any entity other than those entities set forth on Schedule
2 to this Agreement (each a “Subsidiary” and collectively the “Subsidiaries”). Each
Subsidiary has been duly organized and is validly existing and in good standing under the laws of its jurisdiction of formation.
Each Subsidiary is duly qualified and in good standing as a foreign company in each jurisdiction in which the character or location
of its properties (owned, leased or licensed) or the nature or conduct of its business makes such qualification necessary, except
for those failures to be so qualified or in good standing which would not be reasonably expected to have a Material Adverse Effect.
All of the shares of issued capital stock of each corporate subsidiary, and all of the share capital, membership interests and/or
equity interests of each subsidiary that is not a corporation, have been duly authorized and validly issued, are fully paid and
non-assessable and are owned directly or indirectly by the Company, free and clear of any lien, encumbrance, claim, security interest,
restriction on transfer, shareholders’ agreement, proxy, voting trust or other defect of title whatsoever.

 

(j)
The Company is organized in, and its principal place of business is in, the United States.

 

(k)
The Company is subject to the ongoing reporting requirements of Section 13 or 15(d) of the Exchange Act and has filed all reports
required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that
the registrant was required to file such reports), and has been subject to such filing requirements for the past 90 days. The
Company has not been subject to an order by the Commission denying, suspending, or revoking the registration of any class of securities
pursuant to Section 12(j) of the Exchange Act that was entered within five years preceding the date the Offering Statement was
originally filed with the Commission. The Company is not, and has not been at any time during the two-year period preceding the
date the Offering Statement was originally filed with the Commission, required to file with the Commission the ongoing reports
required by the Rules and Regulations under Regulation A.

 

(l)
The Company is not, nor upon completion of the transactions contemplated herein will it be, an “investment company”
or an “affiliated person” of, or “promoter” or “principal underwriter” for, an “investment
company,” as such terms are defined in the Investment Company Act of 1940, as amended (the “Investment Company
Act”). The Company is not a development stage company or a “business development company” as defined in
Section 2(a)(48) of the Investment Company Act. The Company is not a blank check company and is not an issuer of fractional undivided
interests in oil or gas rights or similar interests in other mineral rights. The Company is not an issuer of asset-backed securities
as defined in Item 1101(c) of Regulation AB.

 

(m)
Neither the Company, nor any predecessor of the Company; nor any other issuer affiliated with the Company; nor any director or
executive officer of the Company or other officer of the Company participating in the Offering, nor any beneficial owner of 20%
or more of the Company’s outstanding voting equity securities, nor any promoter connected with the Company, is subject to
the disqualification provisions of Rule 262 of the Rules and Regulations.

 

(n)
The Company is not a “foreign private issuer,” as such term is defined in Rule 405 under the Act.

 

(o)
The Company has full legal right, power and authority to enter into this Agreement and the Escrow Agreement and perform the transactions
contemplated hereby and thereby. This Agreement and the Escrow Agreement have each been authorized and validly executed and delivered
by the Company and are each a legal, valid and binding agreement of the Company enforceable against the Company in accordance
with its terms, subject to the effect of applicable bankruptcy, insolvency or similar laws affecting creditors’ rights generally
and equitable principles of general applicability.

 

(p)
The issuance and sale of the Offered Securities have been duly authorized by the Company, and, when issued and paid for in accordance
with this Agreement, will be duly and validly issued, fully paid and nonassessable and will not be subject to preemptive or similar
rights. The holders of the Shares, Warrants and securities underling the Warrants (the “Warrant Securities”)
will not be subject to personal liability by reason of being such holders. The Shares and the Warrants, when issued, will conform
to the description thereof set forth in the Final Offering Circular in all material respects.

 

    	 	4	 

    	 

    

 

(q)
The Company has not authorized anyone other than the management of the Company and the Selling Agents to engage in Testing-the-Waters
Communications. The Company reconfirms that the Selling Agents have been authorized to act on the Company’s behalf in undertaking
Testing-the-Waters Communications. The Company has not distributed any Testing-the-Waters Communications other than those listed
on Schedule 1 hereto. Any individual Written Testing-the-Waters Communication does not conflict with the information contained
in the in the Offering Statement, the Pricing Disclosure Materials and the Final Offering Circular, complied in all material respects
with the Securities Act, and when taken together with the Pricing Disclosure Materials as of the Applicable Time, did not contain
any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not misleading.

 

(r)
The financial statements and the related notes included in the Offering Statement, the Pricing Disclosure Materials and the Final
Offering Circular present fairly, in all material respects, the financial condition of the Company and its Subsidiaries as of
the dates thereof and the results of operations and cash flows at the dates and for the periods covered thereby in conformity
with United States generally accepted accounting principles (“GAAP”), except as may be stated in the related
notes thereto. No other financial statements or schedules of the Company, any Subsidiary or any other entity are required by the
Act or the Rules and Regulations to be included in the Offering Statement or the Final Offering Circular. There are no off-balance
sheet arrangements (as defined in Regulation S-K Item 303(a)(4)(ii)) that may have a material current or future effect on the
Company’s financial condition, changes in financial condition, results of operations, liquidity, capital expenditures or
capital resources.

 

(s)
Hutchinson & Bloodgood, LLP and Squar Milner LLP (collectively, the “Accountants”), who have reported on
or reviewed the financial statements and schedules described in Section 3(r), are registered independent public accountants
with respect to the Company as required by the Act and the Rules and Regulations and by the rules of the Public Company Accounting
Oversight Board. The financial statements of the Company and the related notes and schedules included in the Offering Statement,
the Pricing Disclosure Materials and the Final Offering Circular comply as to form in all material respects with the requirements
of the Act and the Rules and Regulations and present fairly the information shown therein.

 

(t)
Since the date of the most recent financial statements of the Company included or incorporated by reference in the Offering Statement
and the most recent Preliminary Offering Circular and prior to the Closing and any Subsequent Closing, other than as described
in the Final Offering Circular (A) there has not been and will not have been any change in the capital stock of the Company or
long-term debt of the Company or any Subsidiary or any dividend or distribution of any kind declared, set aside for payment, paid
or made by the Company on any class of capital stock or equity interests, or any adverse change, or any development that would
reasonably be expected to have a Material Adverse Effect ,and (B) neither the Company nor any Subsidiary has sustained or will
sustain 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 disturbance or dispute or any action, order or decree of any court or arbitrator or governmental
or regulatory authority, except in each case as otherwise disclosed in the Offering Statement, the Pricing Disclosure Materials
and the Final Offering Circular.

 

(u)
Since the date as of which information is given in the most recent Preliminary Offering Circular, neither the Company nor any
Subsidiary has entered or will before the Closing or any Subsequent Closing enter into any transaction or agreement, not in the
ordinary course of business, that is material to the Company and its Subsidiaries taken as a whole or incurred or will incur any
liability or obligation, direct or contingent, not in the ordinary course of business, that is material to the Company and its
Subsidiaries taken as a whole, and neither the Company nor any Subsidiary has any plans to do any of the foregoing.

 

(v)
The Company and each Subsidiary has good and valid title in fee simple to all items of real property and good and valid title
to all personal property described in the Offering Statement or the Final Offering Circular as being owned by them, in each case
free and clear of all liens, encumbrances and claims except those that (1) do not materially interfere with the use made and proposed
to be made of such property by the Company and its Subsidiaries or (2) would not reasonably be expected, individually or in the
aggregate, to have a Material Adverse Effect. Any real property described in the Offering Statement or the Final Offering Circular
as being leased by the Company or any Subsidiary that is material to the business of the Company and its Subsidiaries taken as
a whole is held by them under valid, existing and enforceable leases, except those that (A) do not materially interfere with the
use made or proposed to be made of such property by the Company and its Subsidiaries or (B) would not be reasonably expected,
individually or in the aggregate, to have a Material Adverse Effect.

 

    	 	5	 

    	 

    

 

(w)
There are no legal, governmental or regulatory actions, suits or proceedings pending, either domestic or foreign, to which the
Company is a party or to which any property of the Company is the subject, nor are there, to the Company’s knowledge, any
threatened legal, governmental or regulatory investigations, either domestic or foreign, involving the Company or any property
of the Company that, individually or in the aggregate, if determined adversely to the Company, would reasonably be expected to
have a Material Adverse Effect or materially and adversely affect the ability of the Company to perform its obligations under
this Agreement; to the Company’s knowledge, no such actions, suits or proceedings are threatened or contemplated by any
governmental or regulatory authority or threatened by others.

 

(x)
The Company and each Subsidiary has, and at each Closing Date will have, (1) all governmental licenses, permits, consents, orders,
approvals and other authorizations necessary to carry on its business as presently conducted except where the failure to have
such governmental licenses, permits, consents, orders, approvals and other authorizations would not be reasonably expected to
have a Material Adverse Effect, and (2) performed all its obligations required to be performed, and is not, and at each Closing
Date will not be, in default, under any indenture, mortgage, deed of trust, voting trust agreement, loan agreement, bond, debenture,
note agreement, lease, contract or other agreement or instrument (collectively, a “contract or other agreement”) to
which it is a party or by which its property is bound or affected and, to the Company’s knowledge, no other party under
any material contract or other agreement to which it is a party is in default in any respect thereunder. The Company and its Subsidiaries
are not in violation of any provision of its organizational or governing documents.

 

(y)
The Company has obtained all authorization, approval, consent, license, order, registration, exemption, qualification or decree
of, any court or governmental authority or agency or any sub-division thereof that is required for the performance by the Company
of its obligations hereunder, in connection with the Offering, issuance or sale of the Offered Securities and the Selling Agents’
Securities (as defined below) under this Agreement or the consummation of the transactions contemplated by this Agreement as may
be required under federal, state, local and foreign laws, the Act or the rules and regulations of the Commission thereunder, state
securities or Blue Sky laws, the rules and regulations of FINRA or The Nasdaq Stock Market LLC (“NASDAQ”).

 

(z)
There is no actual or, to the knowledge of the Company, threatened, enforcement action or investigation by any governmental authority
that has jurisdiction over the Company, and the Company has received no notice of any pending or threatened claim or investigation
against the Company that would provide a legal basis for any enforcement action, and the Company has no reason to believe that
any governmental authority is considering such action.

 

(aa)
Neither the execution of this Agreement, nor the issuance, offering or sale of the Offered Securities, nor the consummation of
any of the transactions contemplated herein, nor the compliance by the Company with the terms and provisions hereof or thereof
will conflict with, or will result in a breach of, any of the terms and provisions of, or has constituted or will constitute a
default under, or has resulted in or will result in the creation or imposition of any lien, charge or encumbrance upon any property
or assets of the Company or any Subsidiary pursuant to the terms of any contract or other agreement to which the Company or any
Subsidiary may be bound or to which any of the property or assets of the Company or any Subsidiary is subject, except such conflicts,
breaches or defaults as may have been waived or would not, in the aggregate, be reasonably expected to have a Material Adverse
Effect; nor will such action result in any violation, except such violations that would not be reasonably expected to have a Material
Adverse Effect, of (1) the provisions of the organizational or governing documents of the Company or any Subsidiary, or (2) any
statute or any order, rule or regulation applicable to the Company or any Subsidiary or of any court or of any federal, state
or other regulatory authority or other government body having jurisdiction over the Company or any Subsidiary.

 

(bb)
There is no document or contract of a character required to be described in the Offering Statement or the Final Offering Circular
or to be filed as an exhibit to the Offering Statement which is not described or filed as required. All such contracts to which
the Company or any Subsidiary is a party have been authorized, executed and delivered by the Company or any Subsidiary, and constitute
valid and binding agreements of the Company or any Subsidiary, and are enforceable against the Company in accordance with the
terms thereof, subject to the effect of applicable bankruptcy, insolvency or similar laws affecting creditors’ rights generally
and equitable principles of general applicability. None of these contracts have been suspended or terminated for convenience or
default by the Company or any of the other parties thereto, and the Company has not received notice of any such pending or threatened
suspension or termination.

 

    	 	6	 

    	 

    

 

(cc)
The Company and its directors, officers or controlling persons have not taken, directly or indirectly, any action intended, or
which might reasonably be expected, to cause or result, under the Act or otherwise, in, or which has constituted, stabilization
or manipulation of the price of any security of the Company to facilitate the sale or resale of the Company’s Common Stock.

 

(dd)
Other than as previously disclosed to the Selling Agents in writing, the Company, or any person acting on behalf of the Company,
has not and, except in consultation with the Selling Agents, will not publish, advertise or otherwise make any announcements concerning
the distribution of the Shares, and has not and will not conduct road shows, seminars or similar activities relating to the distribution
of the Offered Securities nor has it taken or will it take any other action for the purpose of, or that could reasonably be expected
to have the effect of, preparing the market, or creating demand, for the Offered Securities.

 

(ee)
No holder of securities of the Company has rights to the registration of any securities of the Company as a result of the filing
of the Offering Statement or the transactions contemplated by this Agreement, except for such rights as have been waived or as
are described in the Offering Statement.

 

(ff)
No labor dispute with the employees of the Company or any Subsidiary exists or, to the knowledge of the Company, is threatened,
and the Company is not aware of any existing or threatened labor disturbance by the employees of any of its or any Subsidiary’s
principal suppliers, manufacturers, customers or contractors.

 

(gg)
The Company and each of its Subsidiaries: (i) are and have been in material compliance with all laws, to the extent applicable,
and the regulations promulgated pursuant to such laws, and comparable state laws, and all other local, state, federal, national,
supranational and foreign laws, manual provisions, policies and administrative guidance relating to the regulation of the Company
and its subsidiaries except for such non-compliance as would not be reasonably expected, individually or in the aggregate, to
have a Material Adverse Effect; (ii) have not received notice of any ongoing claim, action, suit, proceeding, hearing, enforcement,
investigation, arbitration or other action from any Regulatory Agency or third party alleging that any product operation or activity
is in material violation of any laws and has no knowledge that any such Regulatory Agency or third party is considering any such
claim, litigation, arbitration, action, suit, investigation or proceeding; and (iii) are not a party to any corporate integrity
agreement, deferred prosecution agreement, monitoring agreement, consent decree, settlement order, or similar agreements, or has
any reporting obligations pursuant to any such agreement, plan or correction or other remedial measure entered into with any Governmental
Authority.

 

(hh)
The business and operations of the Company, and each of its Subsidiaries, have been and are being conducted in compliance with
all applicable laws, ordinances, rules, regulations, licenses, permits, approvals, plans, authorizations or requirements relating
to occupational safety and health, or pollution, or protection of health or the environment (including, without limitation, those
relating to emissions, discharges, releases or threatened releases of pollutants, contaminants or hazardous or toxic substances,
materials or wastes into ambient air, surface water, groundwater or land, or relating to the manufacture, processing, distribution,
use, treatment, storage, disposal, transport or handling of chemical substances, pollutants, contaminants or hazardous or toxic
substances, materials or wastes, whether solid, gaseous or liquid in nature) of any governmental department, commission, board,
bureau, agency or instrumentality of the United States, any state or political subdivision thereof, or any foreign jurisdiction
(“Environmental Laws”), and all applicable judicial or administrative agency or regulatory decrees, awards,
judgments and orders relating thereto, except where the failure to be in such compliance would not be reasonably expected, individually
or in the aggregate, to have a Material Adverse Effect; and neither the Company nor any of its Subsidiaries has received any notice
from any governmental instrumentality or any third party alleging any material violation thereof or liability thereunder (including,
without limitation, liability for costs of investigating or remediating sites containing hazardous substances and/or damages to
natural resources).

 

    	 	7	 

    	 

    

 

(ii)
There has been no storage, generation, transportation, use, handling, treatment, Release or threat of Release of Hazardous Materials
(as defined below) by or caused by the Company or any of its Subsidiaries (or, to the knowledge of the Company, any other entity
(including any predecessor) for whose acts or omissions the Company or any of its Subsidiaries is or could reasonably be expected
to be liable) at, on, under or from any property or facility now or previously owned, operated or leased by the Company or any
of its Subsidiaries, or at, on, under or from any other property or facility, in violation of any Environmental Laws or in a manner
or amount or to a location that could reasonably be expected to result in any liability under any Environmental Law, except for
any violation or liability which would not, individually or in the aggregate, have a Material Adverse Effect. “Hazardous
Materials” means any material, chemical, substance, waste, pollutant, contaminant, compound, mixture, or constituent
thereof, in any form or amount, including petroleum (including crude oil or any fraction thereof) and petroleum products, natural
gas liquids, asbestos and asbestos containing materials, naturally occurring radioactive materials, brine, and drilling mud, regulated
or which can give rise to liability under any Environmental Law. “Release” means any spilling, leaking, seepage,
pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, disposing, depositing, dispersing,
or migrating in, into or through the environment, or in, into from or through any building or structure.

 

(jj)
The Company and its Subsidiaries own, possess, license or have other adequate rights to use, on reasonable terms, all material
patents, patent applications, trade and service marks, trade and service mark registrations, trade names, copyrights, licenses,
inventions, trade secrets, technology, know-how and other intellectual property necessary for the conduct of the Company’s
and each of its Subsidiary’s business as now conducted (collectively, the “Intellectual Property”), except
to the extent such failure to own, possess or have other rights to use such Intellectual Property would not result in a Material
Adverse Effect.

 

(kk)
Except as would not have, individually or in the aggregate, a Material Adverse Effect, the Company and each Subsidiary (1) has
timely filed all federal, state, provincial, local and foreign tax returns that are required to be filed by such entity through
the date hereof, which returns are true and correct, or has received timely extensions for the filing thereof, and (2) has paid
all taxes, assessments, penalties, interest, fees and other charges due or claimed to be due from the Company, other than (A)
any such amounts being contested in good faith and by appropriate proceedings and for which adequate reserves have been provided
in accordance with GAAP or (B) any such amounts currently payable without penalty or interest. There are no tax audits or investigations
pending, which if adversely determined could have a Material Adverse Effect; nor to the knowledge of the Company is there any
proposed additional tax assessments against the Company or any Subsidiary which could have, individually or in the aggregate,
a Material Adverse Effect. No transaction, stamp, capital or other issuance, registration, transaction, transfer or withholding
tax or duty is payable by or on behalf of the Selling Agents to any foreign government outside the United States or any political
subdivision thereof or any authority or agency thereof or therein having the power to tax in connection with (i) the issuance,
sale and delivery of the Offered Securities by the Company; (ii) the purchase from the Company, and the initial sale and delivery
of the Shares to purchasers thereof; or (iii) the execution and delivery of this Agreement or any other document to be furnished
hereunder.

 

(ll)
On each Closing Date, all stock transfer or other taxes (other than income taxes) which are required to be paid in connection
with the sale and transfer of the Offered Securities to be issued and sold on such Closing Date will be, or will have been, fully
paid or provided for by the Company and all laws imposing such taxes will be or will have been fully complied with.

 

(mm)
The Company and its Subsidiaries are insured with insurers with appropriately rated claims paying abilities against such losses
and risks and in such amounts as are prudent and customary for the businesses in which they are engaged; all policies of insurance
and fidelity or surety bonds insuring the Company, each Subsidiary or their respective businesses, assets, employees, officers
and directors are in full force and effect; and there are no claims by the Company or its Subsidiary under any such policy or
instrument as to which any insurance company is denying liability or defending under a reservation of rights clause; neither the
Company nor any Subsidiary has been refused any insurance coverage sought or applied for; and neither the Company nor any Subsidiary
has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires
or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that is not materially
greater than the current cost. The Company has obtained director’s and officer’s insurance in such amounts as is customary
for a similarly situated company engaging in a public offering of securities.

 

    	 	8	 

    	 

    

 

(nn)
Neither the Company nor its Subsidiaries, nor any director, officer, agent or employee of either the Company or any Subsidiary
has directly or indirectly, (1) made any unlawful contribution to any federal, state, local and foreign candidate for public office,
or failed to disclose fully any contribution in violation of law, (2) made any payment to any federal, state, local and foreign
governmental officer or official, or other person charged with similar public or quasi-public duties, other than payments required
or permitted by the laws of the United States or any jurisdiction thereof, (3) violated or is in violation of any provisions of
the U.S. Foreign Corrupt Practices Act of 1977, or (4) made any bribe, rebate, payoff, influence payment, kickback or other unlawful
payment.

 

(oo)
The operations of the Company and its Subsidiaries are and have been conducted at all times in compliance in all material respects
with applicable financial recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970,
as amended, the money laundering statutes of all jurisdictions, the rules and regulations thereunder and any related or similar
rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively, the “Money
Laundering Laws”) and no material action, suit or proceeding by or before any court or governmental agency, authority
or body or any arbitrator involving the Company or any of its Subsidiaries with respect to the Money Laundering Laws is pending
or, to the knowledge of the Company, threatened.

 

(pp)
Neither the Company nor any of its Subsidiaries nor, to the knowledge of the Company, any director, officer, agent or employee
of the Company or any of its Subsidiaries is currently subject to any U.S. sanctions (the “Sanctions Regulations”)
administered by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”); and the Company
will not directly or indirectly use the proceeds of the Offering, or lend, contribute or otherwise make available such proceeds
to any subsidiary, joint venture partner or other person or entity, for the purpose of financing the activities of any person
currently subject to any U.S. sanctions administered by OFAC or listed on the OFAC Specially Designated Nationals and Blocked
Persons List. Neither the Company nor, to the knowledge of the Company, any director, officer, agent or employee of the Company,
is named on any denied party or entity list administered by the Bureau of Industry and Security of the U.S. Department of Commerce
pursuant to the Export Administration Regulations (“EAR”); and the Company will not, directly or indirectly,
use the proceeds of the Offering of the Offered Securities hereunder, or lend, contribute or otherwise make available such proceeds
to any subsidiary, joint venture partner or other person or entity, for the purpose of financing the activities of any person
currently subject to any Sanctions Regulations or to support activities in or with countries sanctioned by said authorities, or
for engaging in transactions that violate the EAR.

 

(qq)
The Company has not distributed and, prior to the later to occur of the last Closing Date and completion of the distribution of
the Offered Securities, will not distribute any offering material in connection with the offering and sale of the Offered Securities
other than each Preliminary Offering Circular, the Pricing Disclosure Materials and the Final Offering Circular, or such other
materials as to which the Selling Agents shall have consented in writing.

 

(rr)
Each employee benefit plan, within the meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”), and all stock purchase, stock option, stock-based severance, employment, change-in-control, medical,
disability, fringe benefit, bonus, incentive, deferred compensation, employee loan and all other employee benefit plans, agreements,
programs, policies or other arrangements, whether or not subject to ERISA, that is maintained, administered or contributed to
by the Company or any of its affiliates for employees or former employees, directors or independent contractors of the Company
or its Subsidiaries, or under which the Company or any of its Subsidiaries has had or has any present or future obligation or
liability, has been maintained in material compliance with its terms and the requirements of any applicable federal, state, local
and foreign laws, statutes, orders, rules and regulations, including but not limited to ERISA and the Internal Revenue Code (“Code”);
no prohibited transaction, within the meaning of Section 406 of ERISA or Section 4975 of the Code, has occurred which would result
in a material liability to the Company with respect to any such plan excluding transactions effected pursuant to a statutory or
administrative exemption; no event has occurred (including a “reportable event” as such term is defined in Section
4043 of ERISA) and no condition exists that would subject the Company to any material tax, fine, lien, penalty, or liability imposed
by ERISA, the Code or other applicable law; and for each such plan that is subject to the funding rules of Section 412 of the
Code or Section 302 of ERISA, no “accumulated funding deficiency” as defined in Section 412 of the Code has been incurred,
whether or not waived, and the fair market value of the assets of each such plan (excluding for these purposes accrued but unpaid
contributions) exceeds the present value of all benefits accrued under such plan determined using reasonable actuarial assumptions.

 

    	 	9	 

    	 

    

 

(ss)
No relationship, direct or indirect, exists between or among the Company or any Subsidiary, on the one hand, and the directors,
officers, stockholders, customers or suppliers of the Company or any Subsidiary, on the other, which would be required to be disclosed
in the Offering Statement, the Preliminary Offering Circular and the Final Offering Circular and is not so disclosed.

 

(tt)
The Company has not sold or issued any securities that would be integrated with the Offering pursuant to the Act, the Rules and
Regulations or the interpretations thereof by the Commission or that would fail to come within the safe harbor for integration
under Regulation A.

 

(uu)
Except as set forth in this Agreement, 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 Selling Agent for a brokerage commission, finder’s fee
or other like payment in connection with the offering of the Offered Securities.

 

(vv)
To the knowledge of the Company, there are no affiliations with FINRA among the Company’s directors, officers or any five
percent or greater stockholder of the Company or any beneficial owner of the Company’s unregistered equity securities that
were acquired during the 180-day period immediately preceding the initial filing date of the Offering Statement.

 

(ww)
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 directly or indirectly, including through its Subsidiaries, extended or maintained
credit, arranged for the extension of credit, or renewed any extension of credit, in the form of a personal loan to or for any
director or executive officer of the Company or any of their respective related interests, other than any extensions of credit
that ceased to be outstanding prior to the initial filing of the Offering Statement. No transaction has occurred between or among
the Company and any of its officers or directors, stockholders, customers, suppliers or any affiliate or affiliates of the foregoing
that is required to be described or filed as an exhibit to in the Offering Statement, the Preliminary Offering Circular, the Pricing
Disclosure Materials or the Final Offering Circular and is not so described.

 

(xx)
The Company has the power to submit, and pursuant to Section 13 of this Agreement, has legally, validly, effectively and
irrevocably submitted, to the personal jurisdiction of each United States federal court and New York state court located in the
Borough of Manhattan, in the City of New York, New York, U.S.A. (each, a “New York Court”), and the Company
has the power to designate, appoint and authorize, and pursuant to Section 13 of this Agreement, has legally, validly,
effectively and irrevocably designated, appointed and authorized an agent for service of process in any action arising out of
or relating to this Agreement or the Offered Securities in any New York Court, and service of process effected on such authorized
agent will be effective to confer valid personal jurisdiction over the Company as provided in Section 13 hereof.

 

(yy)
The Selling Agents’ Warrants have been duly authorized for issuance. The Company has reserved a sufficient number of shares
of Series B Cumulative Preferred Stock and Common Stock for issuance upon exercise of the Selling Agents’ Warrants and,
when issued and paid for in accordance with the terms of the Selling Agents’ Warrants, such shares of Series B Cumulative
Preferred Stock and Common Stock will be validly issued, fully paid and non-assessable (such shares of Series B Cumulative Preferred
Stock and the shares of Common Stock underlying the warrants in the units, together with the units and the Selling Agents’
Warrants, the “Selling Agents’ Securities”). The issuance of the Series B Cumulative Preferred Stock
and the Common Stock pursuant to the Selling Agents’ Warrants will not be subject to any preemptive rights, rights of first
refusal or other similar rights to subscribe for or purchase securities of the Company or any of its Subsidiaries.

 

4.
Agreements of the Company.

 

(a)
The Offering Statement has become qualified, and the Company will file the Final Offering Circular, subject to the prior approval
of the Selling Agent, pursuant to Rule 253 and Regulation A, within the prescribed time period and will provide a copy of such
filing to the Selling Agent promptly following such filing.

 

    	 	10	 

    	 

    

 

(b)
The Company will not, during such period as the Final Offering Circular would be required by law to be delivered in connection
with the sale of the Offered Securities by a Selling Agent or Dealer in connection with the Offering (whether physically or through
compliance with Rules 251 and 254 under the Act or any similar rule(s)), file any amendment or supplement to the Offering Statement
or the Final Offering Circular unless a copy thereof shall first have been submitted to the Selling Agents within a reasonable
period of time prior to the filing thereof and the Selling Agents shall not have reasonably objected thereto in good faith.

 

(c)
The Company will notify the Selling Agents promptly, and will, if requested, confirm such notification in writing: (1) when any
amendment to the Offering Statement is filed; (2) of any request by the Commission for any amendments to the Offering Statement
or any amendment or supplements to the Final Offering Circular or for additional information; (3) of the issuance by the Commission
of any stop order preventing or suspending the qualification of the Offering Statement or the Final Offering Circular, or the
initiation of any proceedings for that purpose or the threat thereof; (4) of becoming aware of the occurrence of any event that
in the judgment of the Company makes any statement made in the Offering Statement, the Preliminary Offering Circular, the Pricing
Disclosure Materials or the Final Offering Circular untrue in any material respect or that requires the making of any changes
in the Offering Statement, the Preliminary Offering Circular, the Pricing Disclosure Materials or the Final Offering Circular
in order to make the statements therein, in light of the circumstances in which they are made, not misleading; and (5) of receipt
by the Company of any notification with respect to any suspension of the qualification or exemption from registration of the Offered
Securities for offer and sale in any jurisdiction. If at any time the Commission shall issue any order suspending the qualification
of the Offering Statement in connection with the Offering or in connection with the sale of Offered Securities pursuant to market
making activities by the Selling Agents, the Company will make every reasonable effort to obtain the withdrawal of any such order
at the earliest possible moment. If the Company has omitted any information from the Offering Statement, it will use its best
efforts to comply with the provisions of and make all requisite filings with the Commission pursuant to Regulation A, the Act
and the Rules and Regulations and to notify the Selling Agents promptly of all such filings.

 

(d)
If, at any time when the Final Offering Circular is required to be delivered under the Act, the Company becomes aware of the occurrence
of any event as a result of which the Final Offering Circular, as then amended or supplemented, would, in the reasonable judgment
of counsel to the Company or counsel to the Selling Agents, include any untrue statement of a material fact or omit to state a
material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made,
not misleading, or the Offering Statement, as then amended or supplemented, would, in the reasonable judgment of counsel to the
Company or counsel to the Selling Agents, include any untrue statement of a material fact or omit to state a material fact necessary
to make the statements therein not misleading, or if for any other reason it is necessary, in the reasonable judgment of counsel
to the Company or counsel to the Selling Agents, at any time to amend or supplement the Final Offering Circular or the Offering
Statement to comply with the Act or the Rules and Regulations, the Company will promptly notify the Selling Agents and will promptly
prepare and file with the Commission, at the Company’s expense, an amendment to the Offering Statement and/or an amendment
or supplement to the Final Offering Circular that corrects such statement and/or omission or effects such compliance and will
deliver to the Selling Agents, without charge, such number of copies thereof as the Selling Agents may reasonably request. The
Company consents to the use of the Final Offering Circular or any amendment or supplement thereto by the Selling Agents, and the
Selling Agents agree to provide to each Investor, prior to the Closing and, as applicable, any Subsequent Closing, a copy of the
Final Offering Circular and any amendments or supplements thereto.

 

(e)
The Company will furnish to the Selling Agents and their counsel, without charge (a) one conformed copy of the Offering Statement
as originally filed with the Commission and each amendment thereto, including financial statements and schedules, and all exhibits
thereto, and (b) so long as an offering circular relating to the Offered Securities is required to be delivered under the Act
or the Rules and Regulations, as many copies of each Preliminary Offering Circular or the Final Offering Circular or any amendment
or supplement thereto as the Selling Agents may reasonably request.

 

(f)
If at any time following the distribution of any Written Testing-the-Waters Communication there occurred or occurs an event or
development as a result of which such Written Testing-the-Waters Communication 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 existing at that subsequent time, not misleading, the Company has or will promptly notify the Selling Agent
in writing and has or will promptly amend or supplement, at its own expense, such Written Testing-the-Waters Communication to
eliminate or correct such untrue statement or omission.

 

    	 	11	 

    	 

    

 

(g)
The Company will comply with any undertakings contained in the Offering Statement.

 

(h)
Prior to the sale of the Offered Securities to the Investors, the Company will cooperate with the Selling Agents and their counsel
in connection with the registration or qualification, or exemption therefrom, of the Offered Securities for offer and sale under
the state securities or Blue Sky laws of such jurisdictions as the Selling Agent may reasonably request; provided, that in no
event shall the Company be obligated to qualify to do business in any jurisdiction where it is not now so qualified or to take
any action which would subject it to general service of process in any jurisdiction where it is not now so subject.

 

(i)
The Company will apply the net proceeds from the offering and sale of the Offered Securities in the manner set forth in the Final
Offering Circular under the caption “Use of Proceeds.”

 

(j)
The Company will not at any time, directly or indirectly, take any action intended, or which might reasonably be expected, to
cause or result in, or which will constitute, stabilization of the price of the Offered Securities to facilitate the sale or resale
of any of the Offered Securities.

 

(k)
The Company will direct its counsel to issue legal opinions to the Company’s transfer agent, as requested by the Selling
Agents, to enable the Selling Agents to resell the shares of Series B Cumulative Preferred Stock and Common Stock issuable upon
cashless exercise of the Selling Agents’ Warrant in accordance with the provisions of Rule 144 under the Act.

 

5.
Representations and Warranties of the Selling Agents; Agreements of the Selling Agents. Each Selling Agent, severally and
not jointly, represents and warrants and covenants to the Company that:

 

(a)
The Selling Agent agrees that it shall not include any “issuer information” (as defined in Rule 433 under the
Act) in any Written Testing-the-Waters Communication used or referred to by such Selling Agent without the prior consent of the
Company (any such issuer information with respect to whose use the Company has given its consent, “Permitted Issuer Information”),
provided that “issuer information” (as defined in Rule 433 under the Act) within the meaning of this Section
5 shall not be deemed to include information prepared by the Selling Agent on the basis of, or derived from, “issuer
information”.

 

(b)
Neither the Selling Agent nor any Dealer, nor any managing member of the Selling Agent or any Dealer, nor any director or executive
officer of the Selling Agent or any Dealer or other officer of the Selling Agent or any Dealer participating in the Offering is
subject to the disqualification provisions of Rule 262 of the Rules and Regulations. No registered representative of the Selling
Agent or any Dealer, or any other person being compensated by or through the Selling Agent or any Dealer for the solicitation
of Investors, is subject to the disqualification provisions of Rule 262 of the Rules and Regulations.

 

(c)
The Selling Agent and each Dealer is a member of FINRA and each of them and their respective employees and representatives have
all required licenses and registrations to act under this Agreement, and each shall remain a member or duly licensed, as the case
may be, during the Offering.

 

(d)
Except for Participating Dealer Agreements, no agreement will be made by the Selling Agent with any person permitting the resale,
repurchase or distribution of any Offered Securities purchased by such person.

 

(e)
Except as otherwise consented to by the Company, the Selling Agent has not and will not use or distribute any written offering
materials other than the Preliminary Offering Circular, Pricing Disclosure Materials and the Final Offering Circular. The Selling
Agent has not and will not use any “broker-dealer use only” materials with members of the public, or has not and will
not make any unauthorized verbal representations or verbal representations which contradict or are inconsistent with the statements
made in the Offering Statement in connection with offers or sales of the Offered Securities.

 

    	 	12	 

    	 

    

 

6.
Expenses.

 

(a)
Whether or not the transactions contemplated by this Agreement are consummated or this Agreement is terminated, the Company will
pay, or reimburse if paid by the Selling Agents, all costs and expenses incident to the performance of the obligations of the
Company under this Agreement, including but not limited to costs and expenses of or relating to (i) the preparation, printing
and filing of the Offering Statement (including each and every amendment thereto) and exhibits thereto, each Preliminary Offering
Circular, the Pricing Disclosure Materials, the Final Offering Circular and any amendments or supplements thereto, including all
fees, disbursements and other charges of counsel and accountants to the Company, (ii) the preparation and delivery of certificates
representing the Shares (if any), (iii) furnishing (including costs of shipping and mailing) such copies of the Offering Statement
(including each and every amendment thereto), each Preliminary Offering Circular, the Pricing Disclosure Materials, the Final
Offering Circular, and all amendments and supplements thereto, as may be requested for use in connection with the direct placement
of the Offered Securities and market making activities of the Selling Agents, (iv) any filings required to be made by the Selling
Agents with FINRA, and the fees, disbursements and other charges in connection therewith, and in connection with any required
review by FINRA, (v) the registration or qualification of the Offered Securities and the Selling Agents’ Securities (as
defined in Section 3(yy)) for offer and sale under the securities or Blue Sky laws of such jurisdictions designated pursuant
to Section 4(h), including the fees, disbursements and other charges of counsel in connection therewith, and the preparation
and printing of preliminary, supplemental and final Blue Sky memoranda, (vi) the fees of counsel to the Selling Agents in connection
with the Offering up to a maximum of $75,000, (vii) all transfer taxes, if any, with respect to the sale and delivery of the Offered
Securities by the Company to the Investors, (viii) fees and disbursements of the Accountants incurred in delivering the letter(s)
described in Section 7(g) of this Agreement; (ix) the fees and expenses of the Escrow Agent; (x) transportation, accommodation,
and other roadshow expenses (up to a maximum of $10,000 which will be pre-approved by the Company, $5,000 of which was already
paid to the Selling Agents as an advance against reimbursable expenses); and (xi) a $20,000 due diligence fee payable on the first
closing.

 

(b)
If this Agreement is terminated by the Selling Agents in accordance with the provisions of Section 7, Section 9(a)(i),
(iv) or (vi), the Company shall reimburse the Selling Agents for all of their documented out-of-pocket expenses,
including the fees of their counsel (upon abandonment of the Offering or expiration or termination of this Agreement, the legal
counsel shall submit their legal fees to the Company, not to exceed $75,000) (“Reimbursable Expenses”).

 

7.
Conditions of the Obligations of the Selling Agents. The obligations of the Selling Agents hereunder are subject to the
following conditions:

 

(a)
(i) No stop order suspending the qualification of the Offering Statement shall have been issued, and no proceedings for that purpose
shall be pending or threatened by any securities or other governmental authority (including, without limitation, the Commission),
(ii) no order suspending the effectiveness of the Offering Statement or the qualification or exemption of the Offered Securities
under the securities or Blue Sky laws of any jurisdiction shall be in effect and no proceeding for such purpose shall be pending
before, or threatened or contemplated by, any securities or other governmental authority (including, without limitation, the Commission),
(iii) any request for additional information on the part of the staff of any securities or other governmental authority (including,
without limitation, the Commission) shall have been complied with to the satisfaction of the staff of the Commission or such authorities
and (iv) after the date hereof no amendment or supplement to the Offering Statement or the Final Offering Circular shall have
been filed unless a copy thereof was first submitted to the Selling Agents and the Selling Agents did not object thereto in good
faith, and the Selling Agents shall have received certificates of the Company, dated as of each Closing Date and signed by the
President and Chief Executive Officer of the Company, and the Chief Financial Officer of the Company, to the effect of clauses
(i), (ii) and (iii).

 

(b)
Since the respective dates as of which information is given in the Offering Statement, the Pricing Disclosure Materials and the
Final Offering Circular, (i) there shall not have been a Material Adverse Change, whether or not arising from transactions in
the ordinary course of business, in each case other than as set forth in or contemplated by the Offering Statement, the Pricing
Disclosure Materials and the Final Offering Circular and (ii) the Company shall not have sustained any material loss or interference
with its business or properties from fire, explosion, flood or other casualty, whether or not covered by insurance, or from any
labor dispute or any court or legislative or other governmental action, order or decree, which is not set forth in the Offering
Statement, the Pricing Disclosure Materials and the Final Offering Circular, if in the reasonable judgment of the Representative
any such development makes it impracticable or inadvisable to consummate the sale and delivery of the Offered Securities to Investors
and the delivery of the Selling Agents’ Securities as contemplated hereby.

 

    	 	13	 

    	 

    

 

(c)
Since the respective dates as of which information is given in the Offering Statement, the Pricing Disclosure Materials and the
Final Offering Circular, there shall have been no litigation or other proceeding instituted against the Company or any of its
officers or directors in their capacities as such, before or by any federal, state or local or foreign court, commission, regulatory
body, administrative agency or other governmental body, domestic or foreign, which litigation or proceeding, in the reasonable
judgment of the Selling Agents, would reasonably be expected to have a Material Adverse Effect.

 

(d)
Each of the representations and warranties of the Company contained herein shall be true and correct as of each Closing Date in
all respects for those representations and warranties qualified by materiality and in all material respects for those representations
and warranties that are not qualified by materiality, as if made on such date, and all covenants and agreements herein contained
to be performed on the part of the Company and all conditions herein contained to be fulfilled or complied with by the Company
at or prior to such Closing Date shall have been duly performed, fulfilled or complied with in all material respects.

 

(e)
The Selling Agents shall have received an opinion and 10b-5 negative assurances letter, dated as of each Closing Date, of Loeb
& Loeb LLP, as counsel to the Company, substantially in the form of Exhibit A hereto.

 

(f)
The Selling Agents shall have received 10b-5 negative assurances letter, dated as of each Closing Date, of Hunter Taubman Fischer
& Li LLC, as counsel to the Selling Agents.

 

(g)
At the Closing and at any Subsequent Closing, the Accountants shall have furnished to the Selling Agents a letter, dated the date
of its delivery (the “Comfort Letter”), addressed to the Selling Agents and in form and substance reasonably
satisfactory to the Selling Agents containing statements and information of the type ordinarily included in accountants’
“comfort letters” to Selling Agents with respect to the financial statements and certain financial information contained
in the Offering Statement, the Pricing Disclosure Materials and the Final Offering Circular.

 

(h)
At the Closing and at any Subsequent Closing, there shall be furnished to the Selling Agents a certificate, dated the date of
its delivery, signed by each of the Chief Executive Officer and the Chief Financial Officer of the Company, in form and substance
satisfactory to the Selling Agents to the effect that each signer has carefully examined the Offering Statement, the Final Offering
Circular and the Pricing Disclosure Materials, and that to each of such person’s knowledge:

 

(i)
(1) As of the date of each such certificate, (x) the Offering Statement does not contain any untrue statement of a material fact
or omit to state a material fact required to be stated therein or necessary in order to make the statements therein not misleading
and (y) neither the Final Offering Circular nor the Pricing Disclosure Materials contains any untrue statement of a material fact
or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in light
of the circumstances under which they were made, not misleading and (2) no event has occurred as a result of which it is necessary
to amend or supplement the Final Offering Circular in order to make the statements therein not untrue or misleading in any material
respect.

 

(ii)
Each of the representations and warranties of the Company contained in this Agreement were, when originally made, and are, at
the time such certificate is delivered, true and correct in all respects for those representations and warranties qualified by
materiality and in all material respects for those representations and warranties that are not qualified by materiality.

 

(iii)
Each of the covenants required herein to be performed by the Company on or prior to the date of such certificate has been duly,
timely and fully performed and each condition herein required to be complied with by the Company on or prior to the delivery of
such certificate has been duly, timely and fully complied with.

 

(iv)
No stop order suspending the qualification of the Offering Statement or of any part thereof has been issued and no proceedings
for that purpose have been instituted or are contemplated by the Commission.

 

    	 	14	 

    	 

    

 

(v)
Subsequent to the date of the most recent financial statements in the Offering Statement and in the Final Offering Circular, there
has been no Material Adverse Change.

 

(i)
The Company shall have furnished or caused to be furnished to the Selling Agents such certificates, in addition to those specifically
mentioned herein, as the Selling Agents may have reasonably requested as to the accuracy and completeness on any Closing Date
of any statement in the Offering Statement, the Preliminary Offering Circular, the Pricing Disclosure Materials or the Final Offering
Circular, as to the accuracy on such Closing Date of the representations and warranties of the Company as to the performance by
the Company of its obligations hereunder, or as to the fulfillment of the conditions concurrent and precedent to the obligations
hereunder of the Selling Agents.

 

(j)
The Common Stock shall be quoted on the NASDAQ.

 

(k)
The Company shall have furnished or caused to be furnished to the Selling Agents on each Closing Date satisfactory evidence of
the good standing of the Company and the Subsidiaries in their respective jurisdiction of organization and their good standing
as foreign entities in such other jurisdictions as the Selling Agents may reasonably request, in each case in writing or any standard
form of telecommunication from the appropriate governmental authorities of such jurisdictions.

 

(l)
FINRA shall not have raised any objection with respect to the fairness or reasonableness of the plan of distribution, or other
arrangements of the transactions, contemplated hereby.

 

(m)
On or after the Applicable Time there shall not have occurred any of the following: (i) a suspension or material limitation in
trading in securities generally on the NASDAQ; (ii) a general moratorium on commercial banking activities declared by either Federal
or New York authorities or a material disruption in commercial banking or securities settlement or clearance services in the United
States; (iii) the outbreak or escalation of hostilities involving the United States or the declaration by the United States of
a national emergency or war or (iv) the occurrence of any other calamity or crisis or any change in financial, political or economic
conditions in the United States or elsewhere, if the effect of any such event specified in clause (iii) or (iv) in the judgment
of the Selling Agents makes it impracticable or inadvisable to proceed with the Offering or the delivery of the Offered Securities
being delivered on any Closing Date on the terms and in the manner contemplated in the Final Offering Circular.

 

8.
Indemnification.

 

(a)
The Company shall indemnify, defend and hold harmless the Selling Agents and each of the Dealers, and each of their respective
directors, officers, employees and agents and each person, if any, who controls any Selling Agent within the meaning of Section
15 of the Act or Section 20 of the Exchange Act (each a “Selling Agent Indemnified Party”), from and against
any and all losses, claims, liabilities, expenses and damages, joint or several (including any and all investigative, legal and
other expenses reasonably incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or
any claim asserted (whether or not such Indemnified Party is a party thereto)), to which any of them, may become subject under
the Act or other Federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims, liabilities,
expenses or damages arise out of or are based on (i) any untrue statement or alleged untrue statement made by the Company in Section
3 of this Agreement, (ii) any untrue statement or alleged untrue statement of any material fact contained in (1) any Preliminary
Offering Circular, the Offering Statement or the Final Offering Circular or any amendment or supplement thereto, (2) the Pricing
Disclosure Materials, (3) any Written Testing-the-Waters Communication or (4) any application or other document, or any amendment
or supplement thereto, executed by the Company based upon written information furnished by or on behalf of the Company filed in
any jurisdiction in order to qualify the Offered Securities under the securities or Blue Sky laws thereof or filed with the Commission
or any securities association or securities exchange (each, an “Application”), or (iii) the omission or alleged
omission to state in any Preliminary Offering Circular, the Offering Statement, the Final Offering Circular, the Pricing Disclosure
Materials, or any Written Testing-the-Waters Communication, or any amendment or supplement thereto, or in any Permitted Issuer
Information or any Application a material fact required to be stated therein or necessary to make the statements therein, in light
of the circumstances in which they were made, not misleading; provided, however, that the Company will not be liable
to the extent that such loss, claim, liability, expense or damage arises from the sale of the Offered Securities in the Offering
to any person and is based solely on an untrue statement or omission or alleged untrue statement or omission made in reliance
on and in conformity with written information furnished to the Company by any Selling Agents Indemnified Party through the Selling
Agents expressly for inclusion in the Offering Statement, any Preliminary Offering Circular, the Final Offering Circular, or Written
Testing-the-Waters Communication, or in any amendment or supplement thereto or in any Application, it being understood and agreed
that the only such information furnished by any Selling Agents Indemnified Party consists of the information described as such
in subsection (b) below. The indemnification obligations under this Section 8(b) are not exclusive and will be in addition
to any liability which the Company might otherwise have and shall not limit any rights or remedies which may otherwise be available
at law or in equity to each Selling Agent Indemnified Party.

 

    	 	15	 

    	 

    

 

(b)
Each Selling Agent, severally and not jointly, will indemnify, defend and hold harmless the Company against any losses, claims,
damages or liabilities to which the Company may become subject, under the Act or otherwise, insofar as such losses, claims, damages
or liabilities (or actions in respect thereof) that (i) arise out of or are based upon any untrue statement made by the Selling
Agent in Section 5 of this Agreement, (ii) arise out of or are based upon any failure or alleged failure of the Selling
Agent to pay any compensation to a Dealer or Dealers, or (iii) arise out of or are based solely upon an untrue statement or alleged
untrue statement of a material fact contained in the Offering Statement, any Preliminary Offering Circular or the Final Offering
Circular, or any amendment or supplement thereto, or any Written Testing-the-Waters Communication, or arise out of or are based
solely upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make
the statements therein not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged
untrue statement or omission or alleged omission was made in the Offering Statement, any Preliminary Offering Circular or the
Final Offering Circular, or any amendment or supplement thereto, or any Written Testing-the-Waters Communication, in reliance
upon and in conformity with written information furnished to the Company by the Selling Agent expressly for use therein; and will
reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending
any such action or claim as such expenses are incurred. The Company acknowledges that, for all purposes under this Agreement,
the statements set forth in the paragraphs under the caption “Plan of Distribution” in any Preliminary Offering Circular
and the Final Offering Circular constitute the only information relating to the Selling Agent furnished in writing to the Company
by the Selling Agent expressly for inclusion in the Offering Statement, any Preliminary Offering Circular or the Final Offering
Circular. In no event shall the Selling Agent indemnify the Company for any amounts in excess of the fees actually received by
it pursuant to the terms of this Agreement.

 

(c)
Promptly after receipt by an indemnified party under subsection (a) or (b) above of notice of the commencement of any action,
such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection,
notify the indemnifying party in writing of the commencement thereof; but the omission so to notify the indemnifying party shall
not relieve it from any liability which it may have to any indemnified party otherwise than under such subsection. In case any
such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof,
the indemnifying party shall be entitled to participate therein and, to the extent that it shall wish, jointly with any other
indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified
party (who shall not, except with the consent of the indemnified party, be counsel to the indemnifying party), and, after notice
from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party
shall not be liable to such indemnified party under such subsection for any legal expenses of other counsel or any other expenses,
in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs
of investigation. No indemnifying party shall, without the written consent of the indemnified party, effect the settlement or
compromise of, or consent to the entry of any judgment with respect to, any pending or threatened action or claim in respect of
which indemnification or contribution may be sought hereunder (whether or not the indemnified party is an actual or potential
party to such action or claim) unless such settlement, compromise or judgment (i) includes an unconditional release of the indemnified
party from all liability arising out of such action or claim and (ii) does not include a statement as to or an admission of fault,
culpability or a failure to act, by or on behalf of any Indemnified Party.

 

    	 	16	 

    	 

    

 

(d)
If the indemnification provided for in this Section 8 is unavailable or insufficient to hold harmless an indemnified party
under subsection (a) or (b) above in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred
to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result
of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect
the relative benefits received by the Company on the one hand and the Selling Agent on the other from the offering of the Offering
Securities. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if
the Indemnified Party failed to give the notice required under subsection (c) above, then each indemnifying party shall contribute
to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative
benefits but also the relative fault of the Company on the one hand and the Selling Agent on the other in connection with the
statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well
as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Selling
Agents on the other shall be deemed to be in the same proportion as the total net proceeds from the Offering (before deducting
expenses) received by the Company bears to the Fee received by the Selling Agents. The relative fault 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 on the one hand or the Selling Agents on the other and
the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.
The Company and the Selling Agents agree that it would not be just and equitable if contribution pursuant to this subsection (d)
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 subsection (d). The amount paid or payable by an indemnified party as a result of the losses, claims,
damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any
legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action
or claim. Notwithstanding the provisions of this subsection (d), no Selling Agent will be required to contribute any amount in
excess of the Fee received by such Selling Agent pursuant to this Agreement. No person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation.

 

9.
Termination.

 

(a)
The obligations of the Selling Agents under this Agreement may be terminated at any time prior to the initial Closing Date, by
notice to the Company from the Representative, without liability on the part of the Selling Agents to the Company if, prior to
delivery and payment for the Offered Securities, in the sole judgment of the Representative: (i) there has occurred any material
adverse change in the securities markets or any event, act or occurrence that has materially disrupted, or in the opinion of the
Representative, will in the future materially disrupt, the securities markets or there shall be such a material adverse change
in general financial, political or economic conditions or the effect of international conditions on the financial markets in the
United States is such as to make it, in the judgment of the Representative, inadvisable or impracticable to market the Offered
Securities or enforce contracts for the sale of the Offered Securities; (ii) there has occurred any outbreak of hostilities or
escalation thereof or other calamity or crisis or any change or development involving a prospective change in national or international
political, financial or economic conditions, including without limitation as a result of terrorist activities, such as to make
it, in the judgment of the Representative, inadvisable or impracticable to market the Offered Securities or enforce contracts
for the sale of the Offered Securities; (iii) trading in any securities of the Company has been suspended or materially limited;
(iv) trading generally on the NASDAQ has been suspended or materially limited, or minimum or maximum ranges for prices for securities
shall have been fixed, or maximum ranges for prices for securities have been required, by any of said exchanges or by such system
or by order of the Commission, FINRA, or any other governmental or regulatory authority; (v) a banking moratorium has been declared
by any state or Federal authority; or (vi) in the judgment of the Representative, there has been, since the time of execution
of this Agreement or since the respective dates as of which information is given in the Final Offering Circular, any material
adverse change in the assets, properties, condition, financial or otherwise, or in the results of operations, business affairs
or business prospects of the Company and its Subsidiaries considered as a whole, whether or not arising in the ordinary course
of business.

 

(b)
If this Agreement is terminated pursuant to this Section, such termination shall be without liability of any party to any other
party except as provided in Section 6 hereof.

 

10.
Notices. Notice given pursuant to any of the provisions of this Agreement shall be in writing and, unless otherwise specified,
shall be mailed, sent via facsimile or emailed as follows. Any such notice shall be effective only upon receipt.

 

    	 	17	 

    	 

    

 

If
to the Company:

 

Fat
Brands Inc.

Attention:
Andrew Wiederhorn

9720
Wilshire Blvd. Suite 500

Beverly
Hills, California 90212

Email:

 

With
copies to (which shall not constitute notice):

 

Loeb
& Loeb LLP

Attention:
Allen Sussman, Esq.

10100
Santa Monica Blvd.

Los
Angeles, California 90067

Email:

 

If
to the Selling Agents:

 

Tripoint
Global Equities, LLC

Attention:
Mark Elenowitz,

1450
Broadway, 26th Floor

New
York, New York 10018

Email:

 

Digital
Offering, LLC

Attn:
Gordon McBean

1121
Glenneyre St.

Laguna
Beach, CA 92651

Email:

 

With
copies to (which shall not constitute notice):

 

Hunter
Taubman Fischer & Li LLC

Attention:
Louis Taubman Esq.

1450
Broadway, 26th Floor

New
York, New York 10018.

Email:

 

11.
Survival. The respective representations, warranties, agreements, covenants, indemnities and other statements of the Company
and the Selling Agents set forth in this Agreement or made by or on behalf of them, respectively, pursuant to this Agreement shall
remain in full force and effect, regardless of (i) any investigation made by or on behalf of the Company, any of its officers
or directors, the Selling Agents or any controlling person referred to in Section 8 hereof and (ii) delivery of and payment
for the Offered Securities. The respective agreements, covenants, indemnities and other statements set forth in Sections 6,
7, 8, 10, and 13 hereof shall remain in full force and effect, regardless of any termination or cancellation
of this Agreement.

 

12.
Successors. This Agreement shall inure to the benefit of and shall be binding upon the Selling Agent, the Company and their
respective successors, and nothing expressed or mentioned in this Agreement is intended or shall be construed to give any other
person any legal or equitable right, remedy or claim under or in respect of this Agreement, or any provisions herein contained,
this Agreement and all conditions and provisions hereof being intended to be and being for the sole and exclusive benefit of such
persons and for the benefit of no other person except that (i) the indemnification and contribution contained in Sections 8(a)
and (b) of this Agreement shall also be for the benefit of the directors, officers, employees and agents of any Selling
Agent and any person or persons who control any Selling Agent within the meaning of Section 15 of the Act or Section 20 of the
Exchange Act and (ii) the indemnification and contribution contained in Sections 8(b) and (d) of this Agreement
shall also be for the benefit of the directors of the Company, the officers of the Company who have signed the Offering Statement
and any person or persons who control the Company within the meaning of Section 15 of the Act or Section 20 of the Exchange Act.
No purchaser of Offered Securities shall be deemed a successor because of such purchase.

 

    	 	18	 

    	 

    

 

13.
Governing Law Provisions. The validity and interpretation of this Agreement shall be governed by and construed in accordance
with the internal laws of the State of New York without giving effect to any provisions relating to conflicts of laws. Any legal
suit, action or proceeding arising out of or based upon this Agreement or the transactions contemplated hereby (“Related
Proceedings”) may be instituted in the New York Courts, and each party irrevocably submits to the exclusive jurisdiction
(except for proceedings instituted in regard to the enforcement of a judgment of any such court (a “Related Judgment”),
as to which such jurisdiction is non-exclusive) of such courts in any such suit, action or proceeding. Service of any process,
summons, notice or document by mail to such party’s address set forth above shall be effective service of process for any
suit, action or other proceeding brought in any such court. The parties irrevocably and unconditionally waive any objection to
the laying of venue of any suit, action or other proceeding in the New York Courts and irrevocably and unconditionally waive and
agree not to plead or claim in any such court that any such suit, action or other proceeding brought in any such court has been
brought in an inconvenient forum.

 

With
respect to any Related Proceeding, each party irrevocably waives, to the fullest extent permitted by applicable law, all immunity
(whether on the basis of sovereignty or otherwise) from jurisdiction, service of process, attachment (both before and after judgment)
and execution to which it might otherwise be entitled in the New York Courts, and with respect to any Related Judgment, each party
waives any such immunity in the New York Courts or any other court of competent jurisdiction, and will not raise or claim or cause
to be pleaded any such immunity at or in respect of any such Related Proceeding or Related Judgment, including, without limitation,
any immunity pursuant to the United States Foreign Sovereign Immunities Act of 1976, as amended.

 

The
obligations of the Company pursuant to this Agreement in respect of any sum due to the Selling Agents shall, notwithstanding any
judgment in a currency other than United States dollars, not be discharged until the first business day following receipt by the
Selling Agents of any sum adjudged to be so due in such other currency, on which the Selling Agents may in accordance with normal
banking procedures purchase United States dollars with such other currency. If the United States dollars so purchased are less
than the sum originally due to the Selling Agents in United States dollars hereunder, the Company agrees as a separate obligation
and notwithstanding any such judgment, to indemnify the Selling Agent against such loss. If the United States dollars so purchased
are greater than the sum originally due to the Selling Agents hereunder, the Selling Agents agree to pay to the Company an amount
equal to the excess of the dollars so purchased over the sum originally due to the Selling Agents hereunder.

 

14.
Acknowledgement. The Company acknowledges and agrees that each Selling Agent is acting solely in the capacity of an arm’s
length contractual counterparty to the Company with respect to the Offering. Additionally, no Selling Agent is advising the Company
or any other person as to any legal, tax, investment, accounting or regulatory matters in any jurisdiction with respect to the
Offering contemplated hereby or the process leading thereto (irrespective of whether a Selling Agent has advised or is advising
the Company on other matters). The Company has conferred with its own advisors concerning such matters and shall be responsible
for making its own independent investigation and appraisal of the transactions contemplated hereby, and the Selling Agents shall
have no responsibility or liability to the Company or any other person with respect thereto. The Selling Agents advise that they
and their respective affiliates are engaged in a broad range of securities and financial services and that they or their affiliates
may have business relationships or enter into contractual relationships with purchasers or potential purchasers of the Company’s
securities. Any review by the Selling Agents of the Company, the transactions contemplated hereby or other matters relating to
such transactions will be performed solely for the benefit of the Selling Agents and shall not be on behalf of, or for the benefit
of, the Company.

 

15.
Counterparts. This Agreement 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.

 

16.
Entire Agreement. This Agreement constitutes the entire understanding between the parties hereto as to the matters covered
hereby and supersedes all prior understandings, written or oral, relating to such subject matter.

 

[Signature
Page Follows]

 

    	 	19	 

    	 

    

 

IN
WITNESS WHEREOF, the parties have executed this Agreement on the dates set forth below.

 

	FAT
    BRANDS INC.	 
	 	 	 
	By:	/s/
    Andrew Wiederhorn 	 
	Name:	Andrew
    Wiederhorn	 
	Title:	CEO	 
	 	 	 
	Accepted
    as of the date hereof:	 
	 	 	 
	TRIPOINT
    GLOBAL EQUITIES, LLC	 
	 	 	 
	By:	/s/
    Mark Elenowitz 	 
	Name:	Mark
    Elenowitz	 
	Title:	Chief
    Executive Officer	 
	 	 	 
	DIGITAL
    OFFERING, LLC	 
	 	 	 
	By:	/s/
    Gordon McBean 	 
	Name:
    	Gordon
    McBean	 
	Title:	Chief
    Executive Officer	 

 

    	 	20	 

    	 

    

 

Schedule
1

 

Pricing
Disclosure Materials and Testing-the-Waters Communications

 

None.

 

    	 	 	 

    	 

    

 

Schedule
2

 

Subsidiaries

 

Fatburger
North America, Inc.

Buffalo’s
Franchise Concepts, Inc.

Ponderosa
Franchising Company

Bonanza
Restaurant Company

Ponderosa
International Development, Inc.

Puerto Rico Ponderosa, Inc.

Hurricane
AMT, LLC

Yalla
Mediterranean Franchising Company, LLC

Yalla Acquisition, LLC

EB
Franchises, LLC

 

    	 	 	 

    	 

    

 

Exhibit
A

 

10b-5
and Negative Assurances Letter

 

    	 

    	 

    

 

Exhibit
B

 

Selling
Agency Warrants

 

THIS
WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED, OR HYPOTHECATED, OR
BE THE SUBJECT OF ANY HEDGING, SHORT SALE, DERIVATIVE, PUT, OR CALL TRANSACTION THAT WOULD RESULT IN THE EFFECTIVE ECONOMIC DISPOSITION
OF SUCH SECURITIES BY ANY PERSON FOR A PERIOD OF THREE HUNDRED AND SIXTY (360) DAYS IMMEDIATELY FOLLOWING THE QUALIFICATION DATE
OF THE PUBLIC OFFERING OF THE COMPANY’S SECURITIES PURSUANT TO OFFERING STATEMENT NO. 024-11012, AS FILED WITH THE U.S.
SECURITIES AND EXCHANGE COMMISSION, EXCEPT IN ACCORDANCE WITH FINRA RULE 5110(g)(2).

 

FAT
BRANDS INC.

 

UNIT
PURCHASE WARRANT

 

	Units: [●]	Issuance Date: [●], 2019

 

THIS
UNIT PURCHASE WARRANT (the “Warrant”) certifies that, for value received, [Tripoint Global Equities, LLC/
Digital Offering, LLC] or its assigns (the “Holder”) is entitled, upon the terms and subject to the limitations
on exercise and the conditions hereinafter set forth, at any time following the one year anniversary of the qualification date
of the Offering Statement (the “Initial Exercise Date”) and thereafter, and on or before the close of business
on the five (5) year anniversary of the qualification date of the Offering Statement (the “Termination Date”)
but not thereafter, to subscribe for and purchase from Fat Brands Inc., a Delaware corporation (the “Company”),
up to [●]1 units (“Units”) sold pursuant to the Offering Statement, each unit consisting of one share
of Series B Cumulative Preferred Stock (“Series B Cumulative Preferred Stock”) and one warrant to purchase
0.60 shares of common stock par value $0.0001 per share of the Company (“Common Stock”) at $8.50 per share
(as subject to adjustment hereunder, collectively, the “Warrant Securities”). The purchase price of one Unit
under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b).

 

Section
1. Definitions.

 

Capitalized
terms used and not otherwise defined herein shall have the meanings set forth in the Selling Agency Agreement, dated October [●],
2019 (the “Agreement”), by and among the Company, Tripoint Global Equities, LLC and Digital Offering, LLC.

 

Section
2. Exercise.

 

(a)
Method of Exercise. Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any
time or times on or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company (or such
other office or agency of the Company as it may designate by notice in writing to the registered Holder at the address of the
Holder appearing on the books of the Company) of a duly executed facsimile copy of the Notice of Exercise form annexed hereto
(the “Notice of Exercise”). Within three (3) trading days after the date of exercise as aforesaid, the Holder
shall deliver the aggregate Exercise Price for the Warrant Securities specified in the applicable Notice of Exercise by wire transfer
or cashier’s check drawn on a United States bank unless the cashless exercise procedure specified in Section 2(c)
below is available and specified in the applicable Notice of Exercise. Notwithstanding anything herein to the contrary, the Holder
shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant Securities
available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the
Company for cancellation within three (3) trading days of the date the final Notice of Exercise is delivered to the Company. Partial
exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Securities available hereunder shall
have the effect of lowering the outstanding number of Warrant Securities purchasable hereunder in an amount equal to the applicable
number of Warrant Securities purchased. The Holder and the Company shall maintain records showing the number of Warrant Securities
purchased and the date of such purchases; provided that the records of the Company, absent manifest error, will be conclusive
with respect to the number of Warrant Shares purchasable from time to time hereunder. The Company shall deliver any objection
to any Notice of Exercise within two (2) business days after receipt of such notice. The Holder and any assignee, by acceptance
of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion
of the Warrant Securities hereunder, the number of Warrant Securities available for purchase hereunder at any given time may be
less than the amount stated on the face hereof.

 

    	 

    	 

    

 

1
The number of units issuable upon exercise of this Warrant shall be equal to 1.25% of the total securities sold in the Offering.

 

(b)
Exercise Price. The exercise price per unit under this Warrant shall be $25.00, subject to adjustment hereunder (the “Exercise
Price”). Except as where otherwise permitted in accordance with Section 2(c), this Warrant may only be exercised
by means of payment by wire transfer or cashier’s check drawn on a United States bank.

 

(c)
Cashless Exercise. This Warrant may at the option of the Holder be exercised, in whole or in part, at such time by means
of a “cashless exercise” in which the Holder shall be entitled to receive a number of Warrant Securities equal to
the quotient obtained by dividing [(A-B) (X)] by (A), where:

 

(A)
= the VWAP on the trading day immediately preceding the date on which Holder elects to exercise this Warrant by means of a “cashless
exercise,” as set forth in the applicable Notice of Exercise;

 

(B)
= the Exercise Price of this Warrant, as adjusted hereunder; and

 

(X)
= the number of Warrant Securities that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant
if such exercise were by means of a cash exercise rather than a cashless exercise.

 

“VWAP”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Units are then listed
or quoted on a Trading Market (as defined below), the daily volume weighted average price of the Units for such date (or the nearest
preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (“Bloomberg”)
(based on a trading day from 9:30 a.m., Eastern time, to 4:00 p.m., Eastern time), (b) if the OTC Bulletin Board or any market,
exchange or quotation system maintained by the OTC Markets Group, Inc., including, without limitation, OTCQB, OTCQX or OTC Pink
(or any successors of the foregoing) is not a Trading Market and the Units are then traded on such market, exchange or quotation
system, the volume weighted average price of the Units for such date (or the nearest preceding date) on such market, exchange
or quotation system or (c) in all other cases, the fair market value of a Unit as determined by an independent appraiser selected
in good faith by the board of directors of the Company and reasonably acceptable to the Holder, the fees and expenses of which
shall be paid by the Company.

 

“Trading
Market” means the NYSE:MKT, Nasdaq Capital Market, Nasdaq Global Market, Nasdaq Global Select Market, or any other national
securities exchange, market, or trading or quotation facility on which the Units are then listed or quoted.

 

(d)
Mechanics of Exercise.

 

(i)
Delivery of Warrant Securities Upon Exercise. The Company shall use its best efforts to cause the Warrant Securities purchased
hereunder to be transmitted by the Company’s stock transfer agent and registrar (the “Transfer Agent”)
to the Holder by physical delivery to the address specified by the Holder in the Notice of Exercise by the date that is five (5)
trading days after the latest of (A) the delivery to the Company of the Notice of Exercise, (B) surrender of this Warrant (if
required) and (C) payment of the aggregate Exercise Price as set forth above (including by cashless exercise, if permitted) (such
date, the “Warrant Securities Delivery Date”). The Warrant Securities shall be deemed to have been issued,
and the Holder or any other person so designated to be named therein shall be deemed to have become a holder of record of such
shares for all purposes, as of the date the Warrant has been exercised, with payment to the Company of the Exercise Price (or
by cashless exercise, if permitted) and all taxes required to be paid by the Holder, if any, pursuant to Section 2(d)(vi)
before the issuance of such shares, having been paid.

 

    	 

    	 

    

 

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

 

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

 

(iv)
Compensation for Buy-In on Failure to Timely Deliver Warrant Securities Upon Exercise. In addition to any other rights
available to the Holder, if the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Securities pursuant
to an exercise on or before the Warrant Securities Delivery Date, and if after such date the Holder is required by its broker
to purchase (in an open market transaction or otherwise) or the Holder’s brokerage firm otherwise purchases, shares of Series
B Cumulative Preferred Stock or Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Securities which
the Holder anticipated receiving upon such exercise (a “Buy-In”), then the Company shall (A) pay in cash to
the Holder the amount, if any, by which (x) the Holder’s total purchase price (including brokerage commissions, if any)
for the shares of Series B Cumulative Preferred Stock Common Stock so purchased exceeds (y) the amount obtained by multiplying
(1) the number of Warrant Securities that the Company was required to deliver to the Holder in connection with the exercise at
issue times (2) the price at which the sell order giving rise to such purchase obligation was executed, and (B) at the option
of the Holder, either reinstate the portion of the Warrant and equivalent number of Warrant Securities for which such exercise
was not honored (in which case such exercise shall be deemed rescinded) or deliver to the Holder the number of shares of Series
B Cumulative Preferred Stock or Common Stock that would have been issued had the Company timely complied with its exercise and
delivery obligations hereunder. For example, if the Holder purchases Common Stock having a total purchase price of $11,000 to
cover a Buy-In with respect to an attempted exercise of shares of Common Stock with an aggregate sale price giving rise to such
purchase obligation of $10,000, under clause (A) of the immediately preceding sentence the Company shall be required to pay the
Holder $1,000. The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of
the Buy-In and, upon request of the Company, evidence of the amount of such loss. Nothing herein shall limit a Holder’s
right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific
performance and/or injunctive relief with respect to the Company’s failure to timely deliver Warrant Securities upon exercise
of the Warrant as required pursuant to the terms hereof.

 

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

 

(vi)
Charges, Taxes and Expenses. Issuance of Warrant Securities shall be made without charge to the Holder for any issue or
transfer tax or other incidental expense in respect of the issuance of such Warrant Securities, all of which taxes and expenses
shall be paid by the Company, and such Warrant Securities shall be issued in the name of the Holder or in such name or names as
may be directed by the Holder; provided, however, that, in the event Warrant Securities are to be issued in a name
other than the name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the assignment form attached
hereto duly executed by the Holder and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse
it for any transfer tax incidental thereto. The Company shall pay all Transfer Agent fees required for same-day processing of
any Notice of Exercise.

 

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

 

    	 

    	 

    

 

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

 

“Affiliate”
means any Person that, directly or indirectly, through one or more intermediaries, controls, or is controlled by, or is under
common control with, a Person.

 

“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.

 

    	 

    	 

    

 

“Person”
means any natural person, corporation, limited liability company, partnership, joint venture, trust, unincorporated organization,
or association.

 

(f)
Exercise Limitations Due to Tax Considerations. If the Holder delivers a Notice of Exercise but the Company determines
in good faith that the issuance of Warrant Shares upon such exercise of the Warrant would cause the Company to lose its ability
to be included with Fog Cutter Capital Group, Inc. in a consolidated federal income tax return, in a California unitary income
tax return, or in an Oregon consolidated income tax return, then the Company may, in lieu of delivering Warrant Securities upon
such exercise, instead deliver an amount of cash within ten (10) business days of the Notice of Exercise that is equal to the
VWAP of the Warrant Securities that would be deliverable to the Holder had the Holder elected a “cashless exercise”
of the Warrant for the same number of shares specified in the Notice of Exercise.

 

Section
3. Certain Adjustments.

 

(a)
Stock Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or
otherwise makes a distribution or distributions on shares of its Series B Cumulative Preferred Stock, Common Stock or any other
equity or equity equivalent securities payable in shares of Series B Cumulative Preferred Stock or Common Stock (which, for avoidance
of doubt, shall not include any shares of Series B Cumulative Preferred Stock or any shares of Common Stock issuable upon exercise
of the warrants to be issued by the Company upon exercise of this Warrant), (ii) subdivides outstanding shares of Series B Cumulative
Preferred Stock or Common Stock into a larger number of shares, (iii) combines (including by way of reverse stock split) outstanding
shares of Series B Cumulative Preferred Stock or Common Stock into a smaller number of shares, or (iv) issues by reclassification
of shares of Series B Cumulative Preferred Stock or Common Stock any shares of capital stock of the Company, then in each case
the number of Warrant Securities issuable upon exercise of this Warrant shall be proportionately adjusted such that the aggregate
Exercise Price of this Warrant shall remain unchanged. Any adjustment made pursuant to this Section 3(a) shall become effective
immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and
shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification.

 

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

 

    	 

    	 

    

 

(c)
Fundamental Transaction. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in
one or more related transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company,
directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially
all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange
offer (whether by the Company or another Person) is completed pursuant to which stockholders of the Company are permitted to sell,
tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of
the outstanding capital stock of the Company, (iv) the Company, directly or indirectly, in one or more related transactions effects
any reclassification, reorganization or recapitalization of the Series B Cumulative Preferred Stock or Common Stock or any compulsory
share exchange pursuant to which the Series B Cumulative Preferred Stock or Common Stock is effectively converted into or exchanged
for other securities, cash or property, or (v) the Company, directly or indirectly, in one or more related transactions consummates
a stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization,
spin-off or scheme of arrangement) with another Person or group of Persons whereby such other Person or group acquires more than
50% of the outstanding shares of capital stock of the Company (not including any shares of capital stock held by the other Person
or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share
purchase agreement or other business combination) (each a “Fundamental Transaction”), then, upon any subsequent
exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Security that would have been issuable
upon such exercise immediately prior to the occurrence of such Fundamental Transaction (without regard to any limitation in Section
2(e) on the exercise of this Warrant), the number of shares of Series B Cumulative Preferred Stock and Common Stock of the
successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration (the
“Alternate Consideration”) receivable as a result of such Fundamental Transaction by a holder of the number
of shares of shares of Series B Cumulative Preferred Stock and Common Stock for which this Warrant is exercisable immediately
prior to such Fundamental Transaction (without regard to any limitation in Section 2(e) on the exercise of this Warrant).
For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate
Consideration based on the amount of Alternate Consideration issuable in respect of one share of Series B cumulative Preferred
Stock and one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among
the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate
Consideration. If holders of capital stock of the Company are given any choice as to the securities, cash or property to be received
in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon
any exercise of this Warrant after such Fundamental Transaction. Notwithstanding anything to the contrary, in the event of a Fundamental
Transaction that is (1) an all cash transaction, (2) a “Rule 13e-3 transaction” as defined in Rule 13e-3 under the
Exchange Act, or (3) a Fundamental Transaction involving a person or entity not traded on a national securities exchange, including,
but not limited to, the NYSE:MKT, the Nasdaq Global Select Market, the Nasdaq Global Market, or the Nasdaq Capital Market, the
Company or any Successor Entity (as defined below) shall, at the option of the Holder or the Company or any Successor Entity,
exercisable at any time concurrently with, or within 30 days after, the consummation of the Fundamental Transaction, purchase
this Warrant from the Holder by paying to the Holder an amount of cash equal to the Black Scholes Value of the remaining unexercised
portion of this Warrant on the date of the consummation of such Fundamental Transaction. “Black Scholes Value”
means the value of this Warrant based on the Black Scholes Option Pricing Model obtained from the “OV” function on
Bloomberg determined as of the day of consummation of the applicable Fundamental Transaction for pricing purposes and reflecting
(A) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to the time between the date of the public
announcement of the applicable Fundamental Transaction and the Termination Date, (B) an expected volatility equal to the greater
of 100% and the 100 day volatility obtained from the HVT function on Bloomberg as of the trading day immediately following the
public announcement of the applicable Fundamental Transaction, (C) the underlying price per share used in such calculation shall
be the sum of the price per share being offered in cash, if any, plus the value of any non-cash consideration, if any, being offered
in such Fundamental Transaction and (D) a remaining option time equal to the time between the date of the public announcement
of the applicable Fundamental Transaction and the Termination Date. The Company shall cause any successor entity in a Fundamental
Transaction in which the Company is not the survivor (the “Successor Entity”) to assume in writing all of the
obligations of the Company under this Warrant in accordance with the provisions of this Section 3(c), and to deliver to
the Holder in exchange for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar
in form and substance to this Warrant which is exercisable for a corresponding number of shares of capital stock of such Successor
Entity (or its parent entity) equivalent to the securities acquirable and receivable upon exercise of this Warrant (without regard
to any limitations on the exercise of this Warrant) before such Fundamental Transaction, and with an exercise price which applies
the exercise price hereunder to such shares of capital stock (but taking into account the relative value of the shares of Series
B Cumulative Preferred Stock and Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital
stock, such number of shares of capital stock and such exercise price being for the purpose of protecting the economic value of
this Warrant immediately prior to the consummation of such Fundamental Transaction). Upon the occurrence of any such Fundamental
Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental
Transaction, the provisions of this Warrant and the other Transaction Documents referring to the “Company” shall refer
instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations
of the Company under this Warrant and the other Transaction Documents with the same effect as if such Successor Entity had been
named as the Company herein.

 

    	 

    	 

    

 

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

 

(e)
Notice to Holder.

 

(i)
Adjustment to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3,
the Company shall promptly mail to the Holder a notice setting forth the Exercise Price after such adjustment and any resulting
adjustment to the number of Units and setting forth a brief statement of the facts requiring such adjustment.

 

(ii)
Notice to Allow Exercise by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever
form) on the Series B Cumulative Preferred Stock or Common Stock, (B) the Company shall declare a special nonrecurring cash dividend
on or a redemption of the Series B Cumulative Preferred Stock or Common Stock, (C) the Company shall authorize the granting to
all holders of the Common Stock rights or warrants to subscribe for or purchase any shares of capital stock of any class or of
any rights, (D) the approval of any stockholders of the Company shall be required in connection with any reclassification of the
Series B Cumulative Preferred Stock or Common Stock, any consolidation or merger to which the Company is a party, any sale or
transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Series B Cumulative
Preferred Stock or Common Stock is converted into other securities, cash or property, or (E) the Company shall authorize the voluntary
or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause
to be mailed to the Holder at its last address as it shall appear upon the Warrant Register (as defined in Section 4(c))
of the Company, at least 10 business days before the applicable record or effective date hereinafter specified, a notice stating
(x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants,
or if a record is not to be taken, the date as of which the holders of the Series B Cumulative Preferred Stock or Common Stock
of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date
on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close,
and the date as of which it is expected that holders of the Series B Cumulative Preferred Stock or Common Stock of record shall
be entitled to exchange their shares of Series B Cumulative Preferred Stock or Common Stock for securities, cash or other property
deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure to
mail such notice or any defect therein or in the mailing thereof shall not affect the validity of the corporate action required
to be specified in such notice. To the extent that any notice provided hereunder constitutes, or contains, material, non-public
information regarding the Company, the Company shall simultaneously file such notice with the Commission pursuant to a Current
Report on Form 8-K. The Holder shall remain entitled to exercise this Warrant during the period commencing on the date of such
notice to the effective date of the event triggering such notice except as may otherwise be expressly set forth herein.

 

Section
4. Transfer of Warrant.

 

(a)
Transferability. This Warrant and all rights hereunder (including, without limitation, any registration rights) are transferable,
in whole or in part, upon surrender of this Warrant at the principal office of the Company or its designated agent, together with
a written assignment of this Warrant substantially in the form attached hereto duly executed by the Holder or its agent or attorney
and funds sufficient to pay any transfer taxes payable upon the making of such transfer. Upon such surrender and, if required,
such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable,
and in the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant
evidencing the portion of this Warrant not so assigned, and this original Warrant shall promptly be cancelled. The Warrant, if
properly assigned in accordance herewith, may be exercised by a new holder for the purchase of Warrant Units without having a
new Warrant issued. Neither this Warrant nor any Units (or shares of Series B Cumulative Preferred Stock and Warrants comprising
such Units) issued upon exercise of this Warrant shall be sold, transferred, assigned, pledged, or hypothecated, or be the subject
of any hedging, short sale, derivative, put, or call transaction that would result in the effective economic disposition of the
securities by any person for a period of 360 days immediately following the date of effectiveness or commencement of sales of
the Offering pursuant to which this Warrant is being issued, except the transfer of any security:

 

    	 

    	 

    

 

(i)
by operation of law or by reason of reorganization of the Company;

 

(ii)
to any FINRA member firm participating in the Offering and the officers or partners thereof, if all securities so transferred
remain subject to the lock-up restriction in this Section 4(a) for the remainder of the time period; or

 

(iii)
the exercise or conversion of any security, if all securities received remain subject to the lock-up restriction in this Section
4(a) for the remainder of the time period.

 

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

 

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

 

Section
5. Piggyback Registration Rights. To the extent the Company does not maintain an effective registration statement for
the shares of Common Stock underlying the warrants comprised in the Units and in the further event that the Company files a registration
statement with the Commission covering the sale of its shares of Common Stock (other than a registration statement on Form S-4
or S-8, or on another form, or in another context, in which such “piggyback” registration would be inappropriate),
then, for a period commencing on the Initial Exercise Date and terminating on the fourth (4th) anniversary of the Initial Exercise
Date, the Company shall give written notice of such proposed filing to the holders of Warrant Securities as soon as practicable
but in no event less than ten (10) business days before the anticipated filing date, which notice shall describe the amount and
type of securities to be included in such offering, the intended method(s) of distribution, and the name of the proposed managing
underwriter or underwriters, if any, of the offering, and offer to the holders of Warrant Securities in such notice the opportunity
to register the sale of such number of shares of shares of Common Stock underlying the warrants comprised in the Units as such
holders may request in writing within five (5) business days after receipt of such notice (a “Piggyback Registration”).
The Company shall cause such shares of Common Stock underlying the warrants comprised in the Units to be included in such registration
and shall use its best efforts to cause the managing underwriter or underwriters of a proposed underwritten offering to permit
the shares of Common Stock underlying the warrants comprised in the Units requested to be included in a Piggyback Registration
on the same terms and conditions as any similar securities of the Company and to permit the sale or other disposition of such
shares of Common Stock underlying the warrants comprised in the Units in accordance with the intended method(s) of distribution
thereof. All holders of shares of Common Stock underlying the warrants comprised in the Units proposing to distribute their securities
through a Piggyback Registration that involves an underwriter or underwriters shall enter into an underwriting agreement in customary
form with the underwriter or underwriters selected for such Piggyback Registration.

 

Section
6. Miscellaneous.

 

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

 

    	 

    	 

    

 

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

 

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

 

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

 

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

 

Before
taking any action which would result in an adjustment in the number of Units (or that number of shares of Series B Cumulative
Preferred Stock and Warrants comprising that number of Units) for which this Warrant is exercisable or in the Exercise Price,
the Company shall obtain all such authorizations or exemptions therefor, or consents thereto, as may be necessary from any public
regulatory body or bodies having jurisdiction thereof.

 

(e)
Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall
be determined in accordance with the internal laws of the State of New York, without regard to conflict of laws principles, and
federal or state courts sitting in the City of New York, State of New York shall have exclusive jurisdiction over matters arising
out of this Warrant.

 

(f)
Restrictions. The Holder acknowledges that the Units (or the shares of Series B Cumulative Preferred Stock and Warrants
comprising the Units) acquired upon the exercise of this Warrant, if not registered, will have restrictions upon resale imposed
by state and federal securities laws.

 

(g)
Nonwaiver and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder
shall operate as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies. Without limiting
any other provision of this Warrant or the Agreement, if the Company willfully and knowingly fails to comply with any provision
of this Warrant, which results in any material damages to the Holder, the Company shall pay to the Holder such amounts as shall
be sufficient to cover any and all costs and expenses including, but not limited to, reasonable attorneys’ fees, including
those of appellate proceedings, incurred by the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing
any of its rights, powers or remedies hereunder.

 

    	 

    	 

    

 

(h)
Notices. Any notice, request or other document required or permitted to be given or delivered to the Holder by the Company
shall be delivered to the Holder at its last address as it shall appear upon the Warrant Register.

 

(i)
Limitation of Liability. No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant
to purchase Units (or the shares of Series B Cumulative Preferred Stock and Warrants comprising the Units), and no enumeration
herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder for the purchase price of any
Unit or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors of the Company.

 

(j)
Remedies. The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages,
will be entitled to specific performance of its rights under this Warrant. The Company agrees that monetary damages alone would
not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees
to waive and not to assert the defense in any action for specific performance that a remedy at law would be adequate.

 

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

 

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

 

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

 

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

 

[Signature
Page Follows]

 

    	 

    	 

    

 

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

 

	 	FAT BRANDS INC.
	 	 	 
	 	By:	 
	 	Name:	Andrew
    Wiederhorn
	 	Title:	Chief
    Executive Officer
	 	 	 
	[CORPORATE
    SEAL]	 	 
	 	 	 
	ATTEST:	 	 
	 	 	 
	Secretary	 	 

 

    	 

    	 

    

 

NOTICE
OF EXERCISE

 

TO:
FAT BRANDS INC.

 

(1)
The undersigned hereby elects to purchase ________ Units (or that number of shares of Series B Cumulative Preferred Stock and
Warrants comprising that number of Units) of the Company pursuant to the terms of the attached Warrant, dated _______, 2019, and
tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any.

 

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

 

[  ]
in lawful money of the United States by wire transfer or cashier’s check drawn on a United States bank; or

 

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

 

(3)
Please issue said Units (or that number of shares of Series B Cumulative Preferred Stock and Warrants comprising said Units) in
the name of the undersigned or in such other name as is specified below:

 

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

 

	 	 
	 	 
	 	 

 

[SIGNATURE
OF HOLDER]

 

	Name of Investing Entity:	 
	 	 
	Signature of Authorized Signatory of Investing
    Entity:	 
	 	 
	Name of Authorized Signatory:	 
	 	 
	Title of Authorized Signatory:	 
	 	 
	Date:	 

 

    	 

    	 

    

 

ASSIGNMENT
FORM

 

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

 

FOR
VALUE RECEIVED, ____ all of or _______ shares of the foregoing Warrant and all rights evidenced thereby are hereby assigned to

 

whose
address is:

 

Date:
______________, _______

 

Holder’s
Signature:

 

Holder’s
Address:

 

Signature
Guaranteed:

 

NOTE:
The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant, without alteration
or enlargement or any change whatsoever, and must be guaranteed by a bank or trust company. Officers of corporations and those
acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the foregoing Warrant.WARRANT
AGENCY AGREEMENT

 

THIS
WARRANT AGENCY AGREEMENT (this “Agreement”) is made as of October 3, 2019 (the “Issuance
Date”), by and between FAT Brands Inc., a Delaware corporation (the “Company”), and VStock
Transfer, LLC a California limited liability company (the “Warrant Agent”).

 

WHEREAS,
the Company intends to offer and sell up to 1,200,000 shares of its Series B Cumulative Preferred Stock, par value $0.0001 per
share (“Series B Preferred Stock”), and warrants to purchase up to 720,000 shares of its common stock,
par value $0.0001 per share (“Common Stock” or “Warrant Shares”), subject
to adjustment as described herein (each, a “Warrant” and, collectively, “Warrants”),
pursuant to a Selling Agency Agreement between the Company and each of Tripoint Global Equities, LLC and Digital Offering, LLC
(the “Selling Agency Agreement”);

 

WHEREAS,
the Series B Preferred Stock and Warrants will be issued by the Company in a public offering pursuant to an Offering Statement
on Form 1-A filed with the Securities and Exchange Commission (the “Commission”) under the Securities
Act of 1933, as amended (the “Act”), and a related Offering Circular;

 

WHEREAS,
the Company desires the Warrant Agent to act on behalf of the Company, and the Warrant Agent is willing to so act, in connection
with the issuance, registration, transfer, exchange and exercise of the Warrants;

 

WHEREAS,
the Company desires to provide for the form and provisions of the Warrants, the terms upon which they shall be issued and exercised,
and the respective rights, limitation of rights, and immunities of the Company, the Warrant Agent, and the holders of the Warrants;
and

 

WHEREAS,
all acts and things have been done and performed which are necessary to make the Warrants, when executed on behalf of the Company
and countersigned by or on behalf of the Warrant Agent, as provided herein, the valid, binding and legal obligations of the Company,
and to authorize the execution and delivery of this Agreement.

 

NOW,
THEREFORE, in consideration of the mutual agreements herein contained, the parties hereto agree as follows:

 

1.
Appointment of Warrant Agent. The Company hereby appoints the Warrant Agent to act as agent for the Company for the Warrants,
and the Warrant Agent hereby accepts such appointment and agrees to perform the same in accordance with the express terms and
conditions set forth in this Agreement.

 

2.
Warrants.

 

2.1
Form of Warrant. Each Warrant shall be issued in registered form only, shall be in substantially the form of Exhibit
A hereto, the provisions of which are incorporated herein, and shall be signed by, or bear the facsimile signature of, the
Chief Executive Officer, Chief Financial Officer, President or Secretary of the Company (each an “Authorized Officer”).
In the event the person whose facsimile signature has been placed upon any Warrant shall have ceased to serve in the capacity
in which such person signed the Warrant before such Warrant is issued, it may be issued with the same effect as if he or she had
not ceased to be such at the date of issuance.

 

2.2.
Effect of Countersignature. Unless and until countersigned by the manual or facsimile signature of the Warrant Agent pursuant
to this Agreement, a Warrant shall be invalid and of no effect and may not be exercised by the holder thereof.

 

2.3.
Registration.

 

2.3.1.
Warrant Register. The Warrant Agent shall maintain books (the “Warrant Register”) for the registration
of original issuance and the registration of transfer of the Warrants. Upon the initial issuance of the Warrants, the Warrant
Agent shall issue and register the Warrants in the names of the respective holders thereof in such denominations and otherwise
in accordance with the written instructions delivered to the Warrant Agent by the Company. The Warrants may be represented by
definitive Warrant Certificates in physical form or by one or more book-entry warrant certificates (the “Book-Entry
Warrant Certificates”) deposited with the Depository Trust Company (the “Depository”)
and registered in the name of Cede & Co., a nominee of the Depository. Definitive Warrant Certificates shall be in substantially
the form annexed hereto as Exhibit A. Ownership of beneficial interests in the Book-Entry Warrant Certificates shall be
shown on, and the transfer of such ownership shall be effected through, records maintained (i) by the Depository or its nominee
for each Book-Entry Warrant Certificate; (ii) by institutions that have accounts with the Depository (such institution, with respect
to a Warrant in its account, a “Participant”); or (iii) directly on the book-entry records of the Warrant
Agent with respect only to owners of beneficial interests that request such direct registration. As used herein, if a Warrant
is in book-entry form, a “holder” or “registered holder” shall also include within its meaning a Participant
or a designee of a Participant.

 

    	 	1	 

     

    

 

If
the Depository subsequently ceases to make its book-entry settlement system available for the Warrants, the Company may instruct
the Warrant Agent regarding making other arrangements for book-entry settlement within ten (10) days after the Depository ceases
to make its book-entry settlement available. In the event that the Company does not make alternative arrangements for book-entry
settlement within ten (10) days or the Warrants are not eligible for, or it is no longer necessary to have the Warrants available
in, book-entry form, the Warrant Agent shall provide written instructions to the Depository to deliver to the Warrant Agent for
cancellation each Book-Entry Warrant Certificate, and the Company shall instruct the Warrant Agent, in writing, to deliver to
the Depository definitive Warrant Certificates in physical form evidencing such Warrants.

 

2.3.2.
Beneficial Owner; Registered Holder. The term “beneficial owner” shall mean any person in whose name ownership
of a beneficial interest in the Warrants evidenced by (a) a Book-Entry Warrant Certificate is recorded in the records maintained
by the Depository or its nominee or (b) a definitive Warrant Certificate is recorded in the book-entry records of the Warrant
Agent. Prior to due presentment for registration of transfer of any Warrant, the Company and the Warrant Agent may deem and treat
the person in whose name such Warrant shall be registered in the Warrant Register (“registered holder”),
as the absolute owner of such Warrant and of each Warrant represented thereby (notwithstanding any notation of ownership or other
writing on the Warrant Certificate made by anyone other than the Company or the Warrant Agent), for the purpose of any exercise
thereof, and for all other purposes, and neither the Company nor the Warrant Agent shall be affected by any notice to the contrary.

 

2.4.
Detachability of Warrants. The Series B Preferred Stock and the Warrants will be issued separately and will be separately
transferable immediately upon issuance.

 

3.
Terms and Exercise of Warrants.

 

3.1.
Exercise Price. The exercise price per whole share of Common Stock under each Warrant shall be $8.50, subject to adjustment
hereunder (the “Exercise Price”).

 

3.2.
Duration of Warrants. A Warrant may be exercised only during the period (the “Exercise Period”)
commencing on the Issuance Date and terminating at 5:00 P.M., Eastern time on October 3, 2024 (the “Expiration
Date”). Each Warrant not exercised on or before the Expiration Date shall become void, and all rights thereunder
and all rights in respect thereof under this Agreement shall cease at the close of business on the Expiration Date.

 

3.3.
Exercise of Warrants.

 

3.3.1.
Exercise and Payment. A registered holder may exercise a Warrant by delivering, not later than 5:00 P.M., Eastern time,
on any Business Day during the Exercise Period (the “Exercise Date”) to the Warrant Agent at its offices
designated for such purpose (i) the Warrant Certificate evidencing the Warrants to be exercised, or, in the case of a Book-Entry
Warrant Certificate, the Warrants to be exercised (the “Book-Entry Warrants”) free on the records of
the Depository to an account of the Warrant Agent at the Depository designated for such purpose in writing by the Warrant Agent
to the Depository from time to time, and (ii) an election to purchase the Warrant Shares underlying the Warrants to be exercised
(the “Election to Purchase” and together with the Warrant Certificates and the Book-Entry Warrants,
the “Warrant Exercise Documents”), properly completed and duly executed by the registered holder on
the reverse of the Warrant Certificate, accompanied by a signature guarantee (if requested by the Warrant Agent) and such other
documentation as the Warrant Agent may reasonably request, or, in the case of a Book-Entry Warrant Certificate, properly delivered
by the Participant in accordance with the Depository’s procedures. Within one Business Day after the Exercise Date, such
holder must pay the Warrant Price for each Warrant to be exercised in lawful money of the United States of America by wire, certified
or official bank check, or wire transfer, in immediately available funds. The term “Warrant Price” as
used in this Agreement refers to price per share of Common Stock at which shares may be purchased at the time the Warrant is exercised.

 

    	 	2	 

     

    

 

If
any of (A) the Warrant Certificate or the Book-Entry Warrants, or (B) the Election to Purchase is received by the Warrant Agent
after 5:00 P.M., Eastern time, on the specified Exercise Date, the Warrants will be deemed to be received on the Business Day
next succeeding the Exercise Date. If the date specified as the Exercise Date is not a Business Day, the Warrants will be deemed
to be received on the next succeeding day that is a Business Day. If the Warrants are received or deemed to be received after
the Expiration Date, the exercise thereof will be null and void and any funds delivered to the Warrant Agent will be returned
to the registered holder or Participant, as the case may be, as soon as practicable. In no event will interest accrue on funds
deposited with the Warrant Agent in respect of an exercise or attempted exercise of Warrants. The Warrant Agent shall not have
any responsibility or liability relating to the determination as to the validity of any exercise of Warrants which determination
will be made by the Company and the applicable registered holder, and the Warrant Agent may rely upon the instructions of the
Company regarding the validity of any exercise of Warrants. The Warrant Agent shall not have any obligation to inform a registered
holder of the invalidity of any exercise of Warrants. If the Company believes that an exercise by a registered holder is invalid
the Company will promptly notify such registered holder of the such fact and the reasons why it believes the exercise was invalid
and will provide a copy of such notice to the Warrant Agent as soon as practicable .

 

The
Warrant Agent shall, promptly after Warrant Shares are issued, forward funds received for warrant exercises by wire transfer to
an account designated by the Company in writing.

 

All
funds received by The Warrant Agent under this Agreement that are to be distributed or applied by the Warrant Agent in the performance
of services (the “Funds”) shall be held by the Warrant Agent as agent for the Company and deposited
in one or more bank accounts to be maintained by the Warrant Agent in its name as agent for the Company. Until paid pursuant to
the terms of this Agreement, the Warrant Agent will hold the Funds through such accounts in: deposit accounts of commercial banks
with Tier 1 capital exceeding $1 billion or with an average rating above investment grade by Standard and Poor’s Corporation
(LT Local Issuer Credit Rating), Moody’s Investors Service, Inc. (Long Term Rating) and Fitch Ratings, Inc. (LT Issuer Default
Rating) (each as reported by Bloomberg Finance L.P.). the Warrant Agent shall have no responsibility or liability for any diminution
of the Funds that may result from any deposit made by the Warrant Agent in accordance with this paragraph, including any losses
resulting from a default by any bank, financial institution or other third party.

 

3.3.2.
Issuance of Certificates. The Warrant Agent shall, within a reasonable time, advise the Company and the Company’s
transfer agent and registrar (if different than the Warrant Agent) in respect of (a) the Warrant Shares issuable upon such exercise
as to the number of Warrants exercised in accordance with the terms and conditions of this Agreement, (b) the instructions of
each registered holder or Participant, as the case may be, with respect to delivery of the Warrant Shares issuable upon such exercise,
and the delivery of definitive Warrant Certificates, as appropriate, evidencing the balance, if any, of the Warrants remaining
after such exercise, (c) in case of a Book-Entry Warrant Certificate, the notation that shall be made to the records maintained
by the Depository, its nominee for each Book-Entry Warrant Certificate, or a Participant, as appropriate, evidencing the balance,
if any, of the Warrants remaining after such exercise and (d) such other information as the Company, the Warrant Agent or such
transfer agent and registrar shall reasonably require.

 

The
Warrant Agent shall, by 5:00 P.M., Eastern time, on the date that is three (3) Trading Days after the delivery to the Warrant
Agent of the Notice of Exercise (such date, the “Warrant Share Delivery Date”), execute, issue and deliver,
on the Company’s behalf, the Warrant Shares to which such registered holder or Participant, as the case may be, is entitled,
in fully registered form, registered in such name or names as may be directed by such registered holder or the Participant, as
the case may be.

 

In
lieu of delivering physical certificates representing the Warrant Shares issuable upon exercise, provided the Company’s
transfer agent is participating in the Depository’s Fast Automated Securities Transfer program, the Company shall use its
reasonable best efforts to cause its transfer agent to electronically transmit the Warrant Shares issuable upon exercise to the
Depository’s Fast Automated Securities Transfer program. While any Warrants remain outstanding, the Company shall maintain
a transfer agent that participates in the Depository’s Fast Automated Securities Transfer program (or any successor to such
program).

 

    	 	3	 

     

    

 

If
the Warrant Agent or the Company’s transfer agent, as applicable, fails to comply with the preceding paragraphs in this
Section 3.3.2 by the Warrant Share Delivery Date, then, in addition to other rights it may have hereunder, the registered
holder or Participant will have the right to rescind its exercise.

 

3.3.3.
Valid Issuance. All shares of Common Stock issued upon the proper exercise of a Warrant in conformity with this Agreement
shall be validly issued, fully paid and nonassessable.

 

3.3.4.
Dividends. The accrual of dividends, if any, on the Warrant Shares issued hereunder will be governed by the terms generally
applicable to the Common Stock. From and after the issuance of such Warrant Shares, the former holder of the Warrants exercised
will be entitled to the benefits generally available to other holders of Common Stock, including the accrual of dividends, if
any, on such Warrant Shares even prior to exercise of such Warrant Shares, and such former holder’s right to receive payments
of dividends and any other amounts payable in respect of the Warrant Shares shall be governed by, and shall be subject to, the
terms and provisions generally applicable to the Common Stock.

 

3.3.5
No Fractional Exercise. A registered holder may exercise a Warrant from time to time only for whole shares of Common Stock.
No fractional shares or scrip representing fractional shares shall be issued upon the exercise of a Warrant. As to any fraction
of a share which the holder would otherwise be entitled to purchase upon such exercise, the Company shall, at its election, either
pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Exercise Price or
round up to the next whole share. If fewer than all of the Warrants evidenced by a Warrant Certificate are exercised, a new Warrant
Certificate for the number of unexercised Warrants remaining shall be executed by the Company and countersigned by the Warrant
Agent as provided in Section 2 of this Agreement, and delivered to the holder of the Warrant Certificate at the address specified
on the books of the Warrant Agent or as otherwise specified in writing by such registered holder. If fewer than all the Warrants
evidenced by a Book-Entry Warrant Certificate are exercised, a notation shall be made to the records maintained by the Depository,
its nominee for each Book-Entry Warrant Certificate, or a Participant, as appropriate, evidencing the balance of the Warrants
remaining after such exercise.

 

Whenever
a payment for fractional shares is to be made by the Warrant Agent under this Agreement, the Company shall promptly prepare and
deliver to the Warrant Agent a certificate setting forth in reasonable detail the facts related to such payments and the prices
and formulas utilized in calculating such payments. The Warrant Agent shall be fully protected in relying upon such a certificate
and shall have no duty with respect to, and shall not be deemed to have knowledge of, any payment for fractional shares under
this Agreement relating to the payment of fractional shares unless and until the Warrant Agent shall have received such a certificate
and sufficient monies. The Company shall provide an initial funding of one thousand dollars ($1,000) for the purpose of issuing
cash in lieu of fractional shares. From time to time thereafter, the Warrant Agent may request additional funding to cover payments
for fractional Warrant Shares. The Warrant Agent shall have no obligation to make such payments for fractional Warrant Shares
unless the Company shall have provided the necessary funds to pay in full all amounts due and payable with respect thereto. Upon
expiration of the term of all Warrants or the earlier exercise of all Warrants any balance remaining of such funds shall be paid
to the Company.

 

3.3.6
No Transfer Taxes. Issuance of Warrant Shares shall be made without charge to a registered holder for any issue or transfer
tax or other incidental expense in respect of the issuance of such Warrant Shares, all of which taxes and expenses shall be paid
by the Company, and such Warrant Shares shall be issued in the name of the registered holder or in such name or names as may be
directed by the registered holder; provided, however, that in the event Warrant Shares are to be issued in a name other than the
name of the registered holder, a Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto
duly executed by the registered holder and the Company may require, as a condition thereto, the payment of a sum sufficient to
reimburse it for any transfer tax incidental thereto. The Company shall pay all transfer agent fees required for same-day processing
of any exercise notice. The Warrant Agent shall not have any duty or obligation to take any action under any section of this Agreement
that requires the payment of taxes and/or charges unless and until it is satisfied that all such payments have been made.

 

3.3.7
Date of Issuance. Each person in whose name any such certificate for shares of Common Stock is issued shall for all purposes
be deemed to have become the holder of record of such shares on the date on which the Warrant was surrendered and payment of the
Warrant Price was made, irrespective of the date of delivery of such certificate, except that, if the date of such surrender and
payment is a date when the stock transfer books of the Company are closed, such person shall be deemed to have become the holder
of such shares at the close of business on the next succeeding date on which the stock transfer books are open. Upon receipt by
the Company of a duly executed Notice of Exercise (which may be by facsimile or email), a registered holder shall be deemed to
have exercised its Warrant as specified in the Notice of Exercise for purposes of Regulation SHO promulgated under the Securities
Exchange Act of 1934, as amended.

 

    	 	4	 

     

    

 

3.3.8
Optional Cashless Exercise. If at any time during the term of this Agreement there is no effective registration statement
registering, or no current prospectus available for, the issuance or resale of the Warrant Shares by the registered holder, then
the Warrant may also be exercised, in whole or in part, at such time by means of a “cashless exercise” in which the
holder shall be entitled to receive a number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A),
where:

 

(A)
= the VWAP on the Trading Day immediately preceding the date on which holder elects to exercise this Warrant by means of a “cashless
exercise,” as set forth in the applicable exercise notice;

 

(B)
= the Exercise Price of this Warrant, as adjusted hereunder; and

 

(X)
= the number of Warrant Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant
if such exercise were by means of a cash exercise rather than a cashless exercise.

 

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

 

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

 

“Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading
on the date in question: the NYSE MKT, the NASDAQ Capital Market, the NASDAQ Global Market, the NASDAQ Global Select Market, the
New York Stock Exchange, the OTC Bulletin Board or the OTC Markets, Inc. (or any successors to any of the foregoing).

 

Upon
receipt of an Election to Purchase for a cashless exercise, the Company shall calculate and transmit to the Warrant Agent, and
the Warrant Agent shall have no obligation under this Agreement to calculate, the Cashless Exercise Ratio. The number of shares
of Common Stock to be issued on such exercise will be determined by the Company (with written notice thereof to the Warrant Agent)
using the formula set forth in this Section 3.3.8, the Warrant Agent shall have no duty or obligation to investigate or confirm
whether the Company’s determination of the number of shares of Common Stock to be issued on such exercise, pursuant to this
Section 3.3.8 is accurate or correct.

 

3.3.9
Disputes. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant
Shares, the Company shall promptly issue to the registered holder the number of Warrant Shares that are not disputed.

 

    	 	5	 

     

    

 

3.3.10
Limitations on Exercise. A registered holder shall not have the right to exercise any portion of the Warrant to the extent
that after giving effect to such issuance after exercise as set forth on the applicable exercise notice, the registered holder
(together with the registered holder’s affiliates, and any other persons acting as a group together with the registered
holder or any of the registered holder’s affiliates (collectively, such registered holder’s “affiliates”)),
would beneficially own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence,
the number of shares of Common Stock beneficially owned by the registered holder and its affiliates shall include the number of
shares of Common Stock issuable upon exercise of the Warrant with respect to which such determination is being made, but shall
exclude the number of shares of Common Stock which would be issuable upon (i) exercise of the remaining, nonexercised portion
of the Warrant beneficially owned by the registered holder or any of its affiliates and (ii) exercise or conversion of the unexercised
or nonconverted portion of any other securities of the Company (including, without limitation, any other Common Stock equivalents)
subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the registered
holder or any of its affiliates. Except as set forth in the preceding sentence, for purposes of this Section 3.3.10, beneficial
ownership shall be calculated in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”) and the rules and regulations promulgated thereunder, it being acknowledged by the registered holder that
the Company is not representing to the registered holder that such calculation is in compliance with Section 13(d) of the Exchange
Act and the registered holder is solely responsible for any schedules required to be filed in accordance therewith. To the extent
that the limitation contained in this Section 3.3.10 applies, the determination of whether the Warrant is exercisable (in relation
to other securities owned by the registered holder together with any affiliates) and of which portion of the Warrant is exercisable
shall be in the sole discretion of the registered holder, and the submission of an exercise notice shall be deemed to be the registered
holder’s determination of whether the Warrant is exercisable (in relation to other securities owned by the registered holder
together with any affiliates) and of which portion of the Warrant is exercisable, in each case subject to the Beneficial Ownership
Limitation, and Warrant Agent and the Company shall have no obligation to verify or confirm the accuracy of such determination.
In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d)
of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 3.3.10, in determining
the number of outstanding shares of Common Stock, a registered holder may rely on the number of outstanding shares of Common Stock
as reflected in (A) the Company’s most recent periodic or annual report filed with the Commission, as the case may be, (B)
a more recent public announcement by the Company or (C) a more recent written notice by the Company or the transfer agent setting
forth the number of shares of Common Stock outstanding. Upon the written or oral request of a registered holder, the Company shall
within two Trading Days confirm orally and in writing to the registered holder the number of shares of Common Stock then outstanding
as established by (A), (B) or (C) above, as applicable. In any case, the number of outstanding shares of Common Stock shall be
determined after giving effect to the conversion or exercise of securities of the Company, including the Warrant, by the registered
holder or its affiliates since the date as of which such number of outstanding shares of Common Stock was reported. The “Beneficial
Ownership Limitation” shall be 4.99% of the number of shares of the Common Stock outstanding immediately after giving
effect to the issuance of shares of Common Stock issuable upon exercise of the Warrant. The registered holder, upon not less than
61 days’ prior notice to the Company, may increase the Beneficial Ownership Limitation provisions of this Section 3.3.10,
provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares of the Common Stock outstanding
immediately after giving effect to the issuance of shares of Common Stock upon exercise of the Warrant held by the registered
holder and the provisions of this Section 3.3.10 shall continue to apply. Any such increase will not be effective until the 61st
day after such notice is delivered to the Company and shall only be effective with respect to such registered holder. The provisions
of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section
3.3.10 to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership
Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation.
The limitations contained in this paragraph shall apply to a successor holder of the Warrant.

 

3.4.
Cost Basis Information. (a) In the event of a cash exercise, the Company hereby instructs the Warrant Agent to record cost
basis for newly issued shares in a manner to be subsequently communicated by the Company in writing to the Warrant Agent.

 

(b)
In the event of a cashless exercise, the Company shall provide cost basis for shares issued pursuant to a cashless exercise at
the time the Company confirms the number of Warrant Shares issuable in connection with the cashless exercise to the Warrant Agent
pursuant to Section 3.3.3 hereof.

 

    	 	6	 

     

    

 

3.5.
Rule 144. (a) If the Warrant Shares are issued in a cashless exercise, the Company and the registered holder undertaking
such cashless exercise acknowledge and agree that in accordance with Section 3(a)(9) of the Act, other than a change in law, the
Warrant Shares take on the registered characteristics of the Warrants being exercised. For purposes of Rule 144(d) promulgated
under the Act, as in effect on the Issuance Date, it is intended that the Warrant Shares issued in a cashless exercise shall be
deemed to have been acquired by the holder of the Warrant Shares, and the holding period for the Warrant Shares shall be deemed
to have commenced, on the date the Warrants being exercised were originally issued pursuant to the Selling Agency Agreement.

 

(b)
The Company shall, at all times prior to the earlier to occur of (i) the date of sale or other disposition by the holders of a
Warrant of or all shares of Common Stock issued on exercise of such Warrant or (ii) the expiration or earlier termination of a
Warrant if a Warrant has not been exercised in full or in part on such date, use commercially reasonable efforts to timely file
all reports required under the Exchange Act and otherwise timely take all actions necessary to permit the holder of such Warrant
and/or the shares of Common Stock issued on exercise thereof to sell or otherwise dispose of such Warrant and shares pursuant
to Rule 144 promulgated under the Act, provided that the foregoing shall not apply in the event of a Merger Event following which
the successor or surviving entity is not subject to the reporting requirements of the Exchange Act. If the holder of a Warrant
proposes to sell Common Stock issuable upon the exercise of such Warrant in compliance with Rule 144, then, upon the holder of
the Warrant’s written request to the Company, the Company shall furnish to the holder of the Warrant, within five (5) Business
Days after receipt of such request, a written statement confirming the Company’s compliance with the filing and other requirements
of such Rule 144.

 

4.
Adjustments.

 

4.1.
Stock Dividends and Splits. If the Company, at any time while a Warrant is outstanding: (i) pays a stock dividend or otherwise
makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable
in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon
exercise of a Warrant), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including
by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (iv) issues by reclassification
of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied
by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding
immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately
after such event, and the number of shares issuable upon exercise of a Warrant shall be proportionately adjusted such that the
aggregate Exercise Price of a Warrant shall remain unchanged. Any adjustment made pursuant to this Section 2(a) shall become effective
immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and
shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification.

 

4.2.
Subsequent Rights Offerings. If the Company, at any time while a Warrant is outstanding, shall issue rights, options or
warrants to all holders of Common Stock (and not to the registered holders of the Warrants) entitling them to subscribe for or
purchase shares of Common Stock on the record date mentioned below, then, the Exercise Price shall be multiplied by a fraction,
of which the denominator shall be the number of shares of the Common Stock outstanding on the date of issuance of such rights,
options or warrants plus the number of additional shares of Common Stock offered for subscription or purchase, and of which the
numerator shall be the number of shares of the Common Stock outstanding on the date of issuance of such rights, options or warrants
plus the number of shares which the aggregate offering price of the total number of shares so offered (assuming receipt by the
Company in full of all consideration payable upon exercise of such rights, options or warrants) would purchase at VWAP (provided
that the Exercise Price cannot increase). Such adjustment shall be made whenever such rights, options or warrants are issued,
and shall become effective immediately after the record date for the determination of stockholders entitled to receive such rights,
options or warrants.

 

    	 	7	 

     

    

 

4.3.
Fundamental Transaction. If, at any time while a Warrant is outstanding, (i) the Company, directly or indirectly, in one
or more related transactions effects any merger or consolidation of the Company with or into another Person (other than a merger
with a wholly-owned subsidiary of the Company for purposes of offering a corporate name change), (ii) the Company, directly or
indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all
of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange
offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell,
tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of
the outstanding Common Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification,
reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is
effectively converted into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in
one or more related transactions consummates a stock or share purchase agreement or other business combination (including, without
limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person or group of Persons whereby
such other Person or group acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common
Stock held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making
or party to, such stock or share purchase agreement or other business combination) (each a “Fundamental Transaction”),
then, upon any subsequent exercise of a Warrant, the registered holders each shall have the right to receive, for each Warrant
Share that would have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at
the option of each registered holder (without regard to any limitation in Section 3.3.10 on the exercise of a Warrant), the number
of shares of Common Stock of the successor or acquiring Person or of the Company, if it is the surviving Person, and any additional
consideration (the “Alternate Consideration”) receivable as a result of such Fundamental Transaction
by a holder of the number of shares of Common Stock for which a Warrant is exercisable immediately prior to such Fundamental Transaction
(without regard to any limitation in Section 3.3.10 on the exercise of a Warrant). For purposes of any such exercise, the determination
of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate
Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion
the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components
of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received
in a Fundamental Transaction, then each registered holder shall be given the same choice as to the Alternate Consideration it
receives upon any exercise of a Warrant following such Fundamental Transaction.

 

4.4.
Notices. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 4, the Company shall give prompt
written notice thereof to the Warrant Agent, which notice shall set forth the Exercise Price after such adjustment and set forth
a brief statement of the facts requiring such adjustment. The Company agrees that it will provide the Warrant Agent with any new
or amended exercise terms. The Warrant Agent shall have no obligation under any Section of this Agreement to determine whether
an adjustment made hereunder has occurred or are scheduled or contemplated to occur or to calculate any of the adjustments set
forth in this Agreement.

 

4.5.
Form of Warrant. The form of Warrant need not be changed because of any adjustment pursuant to this Section 4, and Warrants
issued after such adjustment may state the same Warrant Price and the same number of shares as is stated in the Warrants initially
issued pursuant to this Agreement.

 

4.6.
Calculations. All calculations under this Section 4 shall be made to the nearest cent or the nearest 1/100th of a share,
as the case may be. For purposes of this Section 4, the number of shares of Common Stock deemed to be issued and outstanding as
of a given date shall be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding.

 

5.
Transfer and Exchange of Warrants.

 

5.1.
Registration of Transfer. The Warrant Agent shall register the transfer, from time to time, of any outstanding Warrant
upon the Warrant Register, upon surrender of such Warrant for transfer, duly endorsed with signatures properly guaranteed and
accompanied by appropriate instructions for transfer. Upon any such transfer, a new Warrant representing an equal aggregate number
of Warrants shall be issued and the old Warrant shall be cancelled by the Warrant Agent. The Warrants so cancelled shall be delivered
by the Warrant Agent to the Company from time to time upon request.

 

5.2.
Procedure for Surrender of Warrants. Warrants may be surrendered to the Warrant Agent, together with a written request
for exchange or transfer, and thereupon the Warrant Agent shall issue in exchange therefor one or more new Warrants as requested
by the registered holder of the Warrants so surrendered, representing an equal aggregate number of Warrants; provided, however,
that except as otherwise provided herein or in any Book-Entry Warrant Certificate, each Book-Entry Warrant Certificate may be
transferred only in whole and only to the Depository, to another nominee of the Depository, to a successor depository, or to a
nominee of a successor depository; provided further, however, that in the event that a Warrant surrendered for transfer bears
a restrictive legend, the Warrant Agent shall not cancel such Warrant and issue new Warrants in exchange therefor until the Warrant
Agent has received an opinion of counsel for the Company stating that such transfer may be made and indicating whether the new
Warrants or Warrant Shares must also bear a restrictive legend. Upon any such registration of transfer, the Company shall execute,
and the Warrant Agent shall countersign and deliver, in the name of the designated transferee a new Warrant Certificate or Warrant
Certificates of any authorized denomination evidencing in the aggregate a like number of unexercised Warrants.

 

    	 	8	 

     

    

 

A
party requesting transfer of Warrants must provide any evidence of authority that may be required by the Warrant Agent, including
but not limited to, a signature guarantee from an eligible guarantor institution participating in a signature guarantee program
approved by the Securities Transfer Association.

 

5.3.
Fractional Warrants. The Warrant Agent shall not be required to effect any registration of transfer or exchange which will
result in the issuance of a warrant certificate for a fraction of a warrant.

 

5.4.
Service Charges. No service charge shall be charged against the holder or transferee for any exchange or registration of
transfer of Warrants.

 

5.5.
Warrant Execution and Countersignature. The Warrant Agent is hereby authorized to countersign and to deliver, in accordance
with the terms of this Agreement, the Warrants required to be issued pursuant to the provisions of this Section 5, and the Company,
whenever required by the Warrant Agent, will supply the Warrant Agent with Warrants duly executed on behalf of the Company for
such purpose.

 

6.
Other Provisions Relating to Rights of Registered Holders of Warrants.

 

6.1.
No Rights as Stockholder. Except as otherwise specifically provided herein, a registered holder, solely in its capacity
as a holder of a Warrant, shall not be entitled to vote or receive dividends or be deemed the holder of share capital of the Company
for any purpose, nor shall anything contained in this Agreement be construed to confer upon a registered holder, solely in its
capacity as the registered holder of a Warrant, any of the rights of a stockholder of the Company or any right to vote, give or
withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification of stock, consolidation,
merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise, prior to
the issuance to the registered holder of the Warrant Shares which it is then entitled to receive upon the due exercise of a Warrant.
In addition, nothing contained in this Agreement shall be construed as imposing any liabilities on a registered holder to purchase
any securities (upon exercise of a Warrant or otherwise) or as a stockholder of the Company, whether such liabilities are asserted
by the Company or by creditors of the Company. A Warrant does not entitle the registered holder thereof to any of the rights of
a stockholder.

 

6.2.
Lost, Stolen or Destroyed Warrants. The Warrant Agent shall issue replacement Warrants in the same form for those certificates
alleged to have been lost, stolen or destroyed, upon receipt by Warrant Agent of an open penalty surety bond satisfactory to it
and holding it and Company harmless, absent notice to Warrant Agent that such certificates have been acquired by a bona fide purchaser.
Warrant Agent may, at its option, issue replacement Warrants for mutilated certificates upon presentation thereof without such
indemnity.

 

6.3.
Authorized Shares. The Company covenants that, during the period the Warrants are outstanding, it will reserve from its
authorized and unissued Common Stock a sufficient number of shares to provide for the issuance of the Warrant Shares upon the
exercise of any purchase rights under a Warrant. The Company covenants that, if a sufficient number of shares to provide for the
issuance of the Warrant Shares upon the exercise of any purchase rights under a Warrant are not available, it will use its best
efforts to increase authorized and unissued Common Stock to provide a sufficient number of such shares within thirty (30) days.
The Company further covenants that its issuance of the Warrants shall constitute full authority to its officers who are charged
with the duty of executing stock certificates to execute and issue the necessary Warrant Shares upon the exercise of the purchase
rights under the Warrants. The Company will take all such reasonable action as may be necessary to assure that such Warrant Shares
may be issued as provided herein without violation of any applicable law or regulation, or of any requirements of the Trading
Market upon which the Common Stock may be listed. The Company covenants that all Warrant Shares which may be issued upon the exercise
of the purchase rights represented by a Warrant will, upon exercise of the purchase rights represented by a Warrant and payment
for such Warrant Shares in accordance herewith, be duly authorized, validly issued, fully paid and nonassessable and free from
all taxes, liens and charges created by the Company in respect of the issue thereof (other than taxes in respect of any transfer
occurring contemporaneously with such issue).

 

    	 	9	 

     

    

 

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

 

7.
Concerning the Warrant Agent and Other Matters.

 

7.1.
Payment of Taxes. The Company will from time to time promptly pay all taxes and charges that may be imposed upon the Company
or the Warrant Agent in respect of the issuance, transfer or delivery of shares of Common Stock upon the exercise of Warrants,
but the Company or the Warrant Agent shall not be obligated to pay any transfer taxes or charges in respect of the Warrants or
such shares in connection with a transfer to a different holder. The Warrant Agent shall not register any transfer or issue or
deliver any Warrant Certificate(s) unless or until the persons requesting the registration or issuance shall have paid to the
Warrant Agent for the account of the Company the amount of such transfer tax and charges, if any, or shall have established to
the reasonable satisfaction of the Company and the Warrant Agent that such transfer tax and charges, if any, have been paid.

 

7.2.
Resignation, Consolidation, or Merger of Warrant Agent.

 

7.2.1.
Appointment of Successor Warrant Agent. The Warrant Agent, or any successor to it hereafter appointed, may resign its duties
and be discharged from all further duties and liabilities hereunder after giving thirty (30) days’ notice in writing to
the Company pursuant to the notice provisions in Section 8.2 hereof. In the event the transfer agency relationship, if any, in
effect between the Company and the Warrant Agent terminates, the Warrant Agent will be deemed to have resigned automatically and
be discharged from its duties under this Agreement as of the effective date of such termination. If the office of the Warrant
Agent becomes vacant by resignation or incapacity to act or otherwise, the Company shall appoint in writing a successor Warrant
Agent in place of the Warrant Agent. If the Company shall fail to make such appointment within a period of 30 days after it has
been notified in writing of such resignation or incapacity by the Warrant Agent or by the holder of the Warrant (who shall, with
such notice, submit his Warrant for inspection by the Company), then the holder of any Warrant may apply to the Supreme Court
of the State of New York for the County of New York for the appointment of a successor Warrant Agent at the Company’s cost.
Any successor Warrant Agent, whether appointed by the Company or by such court, shall be authorized under applicable laws to exercise
the powers of a transfer agent and subject to supervision or examination by federal or state authorities. After appointment, any
successor Warrant Agent shall be vested with all the authority, powers, rights, immunities, duties, and obligations of its predecessor
Warrant Agent with like effect as if originally named as Warrant Agent hereunder, without any further act or deed; but if for
any reason it becomes necessary or appropriate, the predecessor Warrant Agent shall execute and deliver, at the expense of the
Company, an instrument transferring to such successor Warrant Agent all the authority, powers, and rights of such predecessor
Warrant Agent hereunder; and upon request of any successor Warrant Agent the Company shall make, execute, acknowledge, and deliver
any and all instruments in writing for more fully and effectually vesting in and confirming to such successor Warrant Agent all
such authority, powers, rights, immunities, duties, and obligations.

 

7.2.2.
Notice of Successor Warrant Agent. In the event a successor Warrant Agent shall be appointed, the Company shall give notice
thereof to the predecessor Warrant Agent and the transfer agent for the Common Stock not later than the effective date of any
such appointment.

 

    	 	10	 

     

    

 

7.2.3.
Merger or Consolidation of Warrant Agent. Any Person into which the Warrant Agent may be merged or converted or with which
it may be consolidated or any Person resulting from any merger, conversion, or consolidation to which the Warrant Agent shall
be a party, or any Person succeeding to the business of the Warrant Agent, shall be the successor Warrant Agent under this Agreement
without any further act by the parties.

 

7.3.
Fees and Expenses of Warrant Agent.

 

7.3.1.
Remuneration. The Company agrees to pay the Warrant Agent reasonable remuneration for its services as such Warrant Agent
hereunder and will reimburse the Warrant Agent upon demand for all expenditures (including the reasonable expenses and fees of
counsel) and disbursements that the Warrant Agent may reasonably incur in the incurred in the preparation, delivery, negotiation,
amendment, administration and execution of this Agreement and the exercise and performance of its duties hereunder.

 

7.3.2.
Further Assurances. The Company shall perform, acknowledge and deliver or cause to be performed, acknowledged and delivered
all such further and other acts, documents, instruments and assurances as may be reasonably required by the Warrant Agent for
the carrying out or performing by the Warrant Agent of the provisions of this Agreement.

 

7.4.
Liability of Warrant Agent.

 

7.4.1.
Reliance on Company Statement. Whenever in the performance of its duties under this Agreement, the Warrant Agent shall
deem it necessary or desirable that any fact or matter be proved or established by the Company prior to taking or suffering any
action hereunder, such fact or matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed
to be conclusively proved and established by a statement signed by the Chief Executive Officer, Chief Financial Officer, President
or Chairman of the Board of Directors of the Company and delivered to the Warrant Agent. The Warrant Agent may rely upon, and
be held harmless for such reliance, such statement for any action taken or suffered, in the absence of bad faith, by it pursuant
to the provisions of this Agreement, and shall not be held liable in connection with any delay in receiving such statement.

 

7.4.2.
Indemnification. The Company covenants and agrees to indemnify and to hold the Warrant Agent harmless against any costs,
expenses (including reasonable fees of its legal counsel), losses or damages, which may be paid, incurred or suffered by or to
which it may become subject, arising from or out of, directly or indirectly, any claims or liability resulting from its actions
as Warrant Agent pursuant hereto; provided, that such covenant and agreement does not extend to, and the Warrant Agent shall not
be indemnified with respect to, such costs, expenses, losses and damages incurred or suffered by the Warrant Agent as a result
of, or arising out of, its gross negligence, bad faith, or willful misconduct (each as determined in a final, non-appealable judgment
of a court of competent jurisdiction).

 

7.4.3.
Instructions. From time to time, the Company may provide the Warrant Agent with instructions concerning the services performed
by the Warrant Agent hereunder. In addition, at any time the Warrant Agent may apply to any officer of the Company for instruction,
and may consult with legal counsel for Warrant Agent or the Company with respect to any matter arising in connection with the
services to be performed by the Warrant Agent under this Agreement. The Warrant Agent and its agents and subcontractors shall
not be liable and shall be indemnified by the Company for any action taken or omitted by the Warrant Agent in reliance upon any
Company instructions or upon the advice or opinion of such counsel. The Warrant Agent shall not be held to have notice of any
change of authority of any person, until receipt of written notice thereof from the Company.

 

7.4.4.
Exclusions. The Warrant Agent shall have no responsibility with respect to the validity of this Agreement or with respect
to the validity or execution of any Warrant (except its countersignature thereof); nor shall it be responsible for any breach
by the Company of any covenant or condition contained in this Agreement or in any Warrant; nor shall it be responsible to make
calculations under Section 3.3.8 or any adjustments required under the provisions of Section 4 hereof or responsible for the manner,
method, or amount of any such adjustment or the ascertaining of the existence of facts that would require any such adjustment;
nor shall it by any act hereunder be deemed to make any representation or warranty as to the authorization or reservation of any
shares of Common Stock to be issued pursuant to this Agreement or any Warrant or as to whether any shares of Common Stock will
when issued be valid and fully paid and nonassessable.

 

    	 	11	 

     

    

 

7.4.5.
Rights and Duties of Warrant Agent. (a) The Warrant Agent may consult with legal counsel (who may be legal counsel for
the Company), and the opinion of such counsel shall be full and complete authorization and protection to the Warrant Agent as
to any action taken or omitted by it in accordance with such opinion.

 

(b)
The Warrant Agent shall not be liable for or by reason of any of the statements of fact or recitals contained in this Agreement
or in the Warrant Certificates (except its countersignature thereof) or be required to verify the same, and all such statements
and recitals are and shall be deemed to have been made by the Company only.

 

(c)
The Warrant Agent shall not have any duty or responsibility in the case of the receipt of any written demand from any holder of
Warrants with respect to any action or default by the Company, including, without limiting the generality of the foregoing, any
duty or responsibility to initiate or attempt to initiate any proceedings at law or otherwise or to make any demand upon the Company.

 

(d)
The Warrant Agent and any stockholder, director, officer or employee of the Warrant Agent may buy, sell or deal in any of the
Warrants or other securities of the Company or become pecuniarily interested in any transaction in which the Company may be interested,
or contract with or lend money to the Company or otherwise act as fully and freely as though it were not Warrant Agent under this
Agreement. Nothing herein shall preclude the Warrant Agent from acting in any other capacity for the Company or for any other
legal entity.

 

(e)
The Warrant Agent may execute and exercise any of the rights or powers hereby vested in it or perform any duty hereunder either
itself or by or through its attorney or agents, and the Warrant Agent shall not be answerable or accountable for any act, default,
neglect or misconduct of any such attorney or agents or for any loss to the Company resulting from any such act, default, neglect
or misconduct, absent gross negligence, bad faith or willful misconduct (each as determined by a final judgment of a court of
competent jurisdiction) in the selection and continued employment thereof.

 

(f)
The Warrant Agent may rely on and shall be held harmless and protected and shall incur no liability for or in respect of any action
taken, suffered or omitted to be taken by it in reliance upon any certificate, statement, instrument, opinion, notice, letter,
facsimile transmission, telegram or other document, or any security delivered to it, and believed by it to be genuine and to have
been made or signed by the proper party or parties, or upon any written or oral instructions or statements from the Company with
respect to any matter relating to its acting as Warrant Agent hereunder.

 

(g)
The Warrant Agent shall not be obligated to expend or risk its own funds or to take any action that it believes would expose or
subject it to expense or liability or to a risk of incurring expense or liability, unless it has been furnished with assurances
of repayment or indemnity satisfactory to it.

 

(h)
The Warrant Agent shall not be liable or responsible for any failure of the Company to comply with any of its obligations relating
to any registration statement filed with the Commission or this Agreement, including without limitation obligations under applicable
regulation or law.

 

(i)
The Warrant Agent shall not be accountable or under any duty or responsibility for the use by the Company of any Warrants authenticated
by the Warrant Agent and delivered by it to the Company pursuant to this Agreement or for the application by the Company of the
proceeds of the issue and sale, or exercise, of the Warrants.

 

(j)
The Warrant Agent shall act hereunder solely as agent for the Company, and its duties shall be determined solely by the express
provisions hereof (and no duties or obligations shall be inferred or implied). The Warrant Agent shall not assume any obligations
or relationship of agency or trust with any of the owners or holders of the Warrants.

 

(k)
The Warrant Agent may rely on and be fully authorized and protected in acting or failing to act upon (a) any guaranty of signature
by an “eligible guarantor institution” that is a member or participant in the Securities Transfer Agents Medallion
Program or other comparable “signature guarantee program” or insurance program in addition to, or in substitution
for, the foregoing; or (b) any law, act, regulation or any interpretation of the same even though such law, act, or regulation
may thereafter have been altered, changed, amended or repealed.

 

    	 	12	 

     

    

 

(l)
In the event the Warrant Agent believes any ambiguity or uncertainty exists hereunder or in any notice, instruction, direction,
request or other communication, paper or document received by the Warrant Agent hereunder, the Warrant Agent, may, in its sole
discretion, refrain from taking any action, and shall be fully protected and shall not be liable in any way to Company, the holder
of any Warrant Certificate or Book-Entry Warrant Certificate or any other person or entity for refraining from taking such action,
unless the Warrant Agent receives written instructions signed by the Company which eliminates such ambiguity or uncertainty to
the satisfaction of Warrant Agent. The foregoing shall not eliminate any liability that the Company may have to any registered
holder or holder of any Warrant Certificate or Book-Entry Warrant Certificate.

 

7.6.
Limitation on Liability of Warrant Agent. Notwithstanding anything contained herein to the contrary, the Warrant Agent’s
aggregate liability during any term of this Agreement with respect to, arising from, or arising in connection with this Agreement,
or from all services provided or omitted to be provided under this Agreement, whether in contract, or in tort, or otherwise, is
limited to, and shall not exceed, the amounts paid hereunder by the Company to Warrant Agent as fees and charges, but not including
reimbursable expenses, during the twelve (12) months immediately preceding the event for which recovery from Warrant Agent is
being sought.

 

Sections
7.3, 7.4 and 7.6 shall survive the expiration of the Warrants, the termination of this Agreement and the resignation, replacement
or removal of the Warrant Agent. The costs and expenses incurred in enforcing this right of indemnification shall be paid by the
Company.

 

7.5.
Acceptance of Agency. The Warrant Agent hereby accepts the agency established by this Agreement and agrees to perform the
same upon the terms and conditions herein set forth and among other things, shall account promptly to the Company with respect
to Warrants exercised and concurrently account for, and pay to the Company, all moneys received by the Warrant Agent for the purchase
of shares of Common Stock through the exercise of Warrants.

 

7.7.
Opinion of Counsel. The Company shall provide an opinion of counsel prior to the Issuance Date to set up a reserve of Warrants
and related Common Stock. The opinion shall state that all Warrants or Common Stock, as applicable, are:

 

(1)
registered under the Act, or are exempt from such registration, and all appropriate state securities law filings have been made
with respect to the warrants or shares; and

 

(2)
validly issued, fully paid and non-assessable.

 

8.
Miscellaneous Provisions.

 

8.1.
Successors. Subject to applicable securities laws, this Agreement and the Warrants and the rights and obligations evidenced
hereby shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors
and permitted assigns of each registered holder. The provisions of this Agreement are intended to be for the benefit of any holder
from time to time of this Agreement and shall be enforceable by the holder or holder of Warrant Shares.

 

8.2.
Notices. Any notice, statement or demand authorized by this Agreement to be given or made by the Warrant Agent or by the
holder of any Warrant to or on the Company shall delivered by hand or sent by registered or certified mail or overnight courier
service addressed (until another address is filed in writing by the Company with the Warrant Agent), or by facsimile transmission
(as long as the sender maintains a fax delivery report confirming receipt by the recipient and is considered delivered when sent
or if after normal business hours the next Business Day) or by email (as long as no bounce back is received by the sender), as
follows:

 

FAT
Brands Inc.

9720
Wilshire Blvd., Suite 500

Beverly
Hills, CA 90212

Attn:
Corporate Secretary

Facsimile:
(310) 319-1863

Email:

 

    	 	13	 

     

    

 

Any
notice, statement or demand authorized by this Agreement to be given or made by the holder of any Warrant or by the Company to
or on the Warrant Agent shall be delivered by hand or overnight courier service addressed (until another address is filed in writing
by the Warrant Agent with the Company) as follows:

 

VStock
Transfer, LLC

18
Lafayette Place

Woodmere,
NY 11598

Facsimile:

Email:

 

8.3.
Jurisdiction. The validity, interpretation, and performance of this Agreement and of the Warrants shall be governed in
all respects by the laws of the State of New York, without giving effect to conflicts of law principles that would result in the
application of the substantive laws of another jurisdiction. The Company hereby agrees that any action, proceeding or claim against
it arising out of or relating in any way to this Agreement shall be brought and enforced in the courts of the State of New York
or the United States District Court for the Southern District of New York, and irrevocably submits to such jurisdiction, which
jurisdiction shall be exclusive. The Company hereby waives any objection to such exclusive jurisdiction and that such courts represent
an inconvenience forum. Any such process or summons to be served upon the Company may be served by transmitting a copy thereof
by registered or certified mail, return receipt requested, postage prepaid, addressed to it at the address set forth in Section
8.2 hereof. Such mailing shall be deemed personal service and shall be legal and binding upon the Company in any action, proceeding
or claim. Notwithstanding anything to the contrary contained herein, none of the foregoing provisions of this Section 8.3 shall
apply to or otherwise affect the jurisdiction, venue or governing law of any actions arising under the Securities Act of 1933,
as amended, or the Securities Exchange Act of 1934, as amended, or any of the rules and regulations promulgated thereunder.

 

8.4.
Persons Having Rights under this Agreement. Nothing in this Agreement expressed and nothing that may be implied from any
of the provisions hereof is intended, or shall be construed, to confer upon, or give to, any person or corporation other than
the parties hereto and the registered holders of the Warrants, any right, remedy, or claim under or by reason of this Agreement
or of any covenant, condition, stipulation, promise, or agreement hereof. All covenants, conditions, stipulations, promises, and
agreements contained in this Agreement shall be for the sole and exclusive benefit of the parties hereto and their successors
and assigns and of the registered holders of the Warrants.

 

8.5.
Examination of the Warrant Agency Agreement. A copy of this Agreement shall be available at all reasonable times at the
office of the Warrant Agent, for inspection by the registered holder of any Warrant. The Warrant Agent may require any such holder
to submit his Warrant for inspection by it.

 

8.6.
Counterparts. This Agreement may be executed in any number of original or facsimile counterparts and each of such counterparts
shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument.
A signature to this Agreement transmitted electronically shall have the same authority, effect, and enforceability as an original
signature.

 

8.7.
Effect of Headings. The Section headings herein are for convenience only and are not part of this Agreement and shall not
affect the interpretation thereof.

 

8.8
Amendments. All modifications or amendments, including any amendment to increase the Warrant Price or shorten the Exercise
Period, shall require the written consent of the registered holders of Warrants equal to at least 67% of the Warrant Shares issuable
upon exercise of all then outstanding Warrants. As a condition precedent to the Warrant Agent’s execution of any amendment,
the Company shall deliver to the Warrant Agent a certificate from an Authorized Officer that states that the proposed amendment
is in compliance with the terms of this Section 8.8. No consideration shall be offered or paid to any person to amend or consent
to a waiver or modification of any provision of this Agreement unless the same consideration is also offered to all holders of
the Warrants. Notwithstanding anything in this Agreement to the contrary, the Warrant Agent shall not be required to execute any
supplement or amendment to this Agreement that it has determined would adversely affect its own rights, duties, obligations or
immunities under this Agreement. No supplement or amendment to this Agreement shall be effective unless duly executed by the Warrant
Agent.

 

    	 	14	 

     

    

 

8.9
Severability. Wherever possible, each provision of this Agreement shall be interpreted in such manner as to be effective
and valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under applicable law,
such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such
provisions or the remaining provisions of this Agreement; provided, however, that if such prohibited and invalid provision shall
adversely affect the rights, immunities, liabilities, duties or obligations of the Warrant Agent, the Warrant Agent shall be entitled
to resign immediately upon written notice to the Company.

 

8.10
Restrictions. Each registered holder acknowledges that the Warrant Shares acquired upon the exercise of a Warrant, if not
registered, and the registered holder does not utilize cashless exercise, will have restrictions upon resale imposed by state
and federal securities laws.

 

8.11.
Nonwaiver and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part of a registered
holder shall operate as a waiver of such right or otherwise prejudice such a registered holder’s rights, powers or remedies.
Without limiting any other provision of this Agreement or the Selling Agency Agreement, if the Company willfully and knowingly
fails to comply with any provision of this Agreement or the Warrants, which results in any material damages to a registered holder,
the Company shall pay such registered holder such amounts as shall be sufficient to cover any costs and expenses including, but
not limited to, reasonable attorneys’ fees, including those of appellate proceedings, incurred by the registered holder
in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder.

 

8.12.
Limitation of Liability. No provision hereof, in the absence of any affirmative action by the registered holder to exercise
a Warrant to purchase Warrant Shares, and no enumeration herein of the rights or privileges of a registered holder, shall give
rise to any liability of each registered holder for the purchase price of any Common Stock or as a stockholder of the Company,
whether such liability is asserted by the Company or by creditors of the Company.

 

8.13.
Remedies. The registered holders, in addition to being entitled to exercise all rights granted by law, including recovery
of damages, will be entitled to specific performance of its rights under this Agreement. The Company agrees that monetary damages
would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Agreement and hereby
agrees to waive and not to assert the defense in any action for specific performance that a remedy at law would be adequate.

 

8.14.
Confidentiality. The Warrant Agent and the Company agree that all books, records, information and data pertaining to the
business of the other party, including inter alia, personal, non-public warrant holder information, which are exchanged or received
pursuant to the negotiation or the carrying out of this Agreement including the fees for services set forth in a mutually agreed
upon schedule shall remain confidential, and shall not be voluntarily disclosed to any other person, except as may be required
by law, including, without limitation, pursuant to subpoenas from state or federal government authorities (e.g., in divorce and
criminal actions).

 

8.15.
Consequential Damages. Neither party to this Agreement shall be liable to the other party for any consequential, indirect,
special or incidental damages under any provisions of this Agreement or for any consequential, indirect, punitive, special or
incidental damages arising out of any act or failure to act hereunder even if that party has been advised of or has foreseen the
possibility of such damages.

 

8.16
Force Majeure. Notwithstanding anything to the contrary contained herein, the Warrant Agent will not be liable for any
delays or failures in performance resulting from acts beyond its reasonable control including, without limitation, acts of God,
terrorist acts, shortage of supply, breakdowns or malfunctions, interruptions or malfunction of computer facilities, or loss of
data due to power failures or mechanical difficulties with information storage or retrieval systems, labor difficulties, war,
or civil unrest.

 

9.
Certain Definitions. For purposes of this Agreement, the following terms shall have the following meanings:

 

9.1
“Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in The
City of New York are authorized or required by law or executive order to remain closed.

 

9.2
“Common Stock” means (i) the Company’s shares of Common Stock and (ii) any share capital into
which such Common Stock shall have been changed or any share capital resulting from a reclassification of such Common Stock.

 

    	 	15	 

     

    

 

9.3
“Control” (including the terms “controlling”, “controlled by”
or “under common control with”) means the possession, direct or indirect, of the power to direct or
cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract
or otherwise.

 

9.4
“Expiration Date” means the date that is the five-year anniversary of the Issuance Date (or October
3, 2024) or, if such date falls on a day other than a Business Day or on which trading does not take place on the Principal
Market (a “Holiday”), the next date that is not a Holiday, as the same may be extended pursuant to Section
3.3.7.

 

9.5
“Merger Event” means any of the following: (i) a sale, lease or other transfer of all or substantially
all assets of the Company, (ii) any merger or consolidation involving the Company in which the Company is not the surviving entity
or in which the outstanding shares of the Company’s capital stock are otherwise converted into or exchanged for shares of
capital stock or other securities or property of another entity, or (iii) any sale by holders of the outstanding voting equity
securities of the Company in a single transaction or series of related transactions of shares constituting a majority of the outstanding
combined voting power of the Company.

 

9.6
“Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation,
a trust, an unincorporated organization, any other entity and a government or any department or agency thereof.

 

9.7
“Principal Market” means the principal securities exchange or securities market on which the Common
Shares are then traded.

 

[Remainder
of page intentionally left blank. Signature page follows.]

 

    	 	16	 

     

    

 

IN
WITNESS WHEREOF, this Agreement has been duly executed by the parties hereto as of the day and year first above written.

 

	FAT
    BRANDS INC.	 
	 	 	 
	By:	/s/
    Andrew Wiederhorn	 
	Name:	Andrew
    Wiederhorn	 
	Title:	Chief
    Executive Officer	 
	 	 	 
	VSTOCK
    TRANSFER, LLC	 
	 	 	 
	By:	/s/
    Yoel Goldfeder	 
	Name:	Yoel
    Goldfeder	 
	Title:	Chief
    Executive Officer	 

 

[Signature
Page to Warrant Agency Agreement]

 

    	 	17	 

     

    

 

EXHIBIT
A

 

WARRANT
NUMBER:

 

CUSIP
NUMBER: 30258N 113

 

FAT
BRANDS INC.

 

WARRANT
CERTIFICATE

 

THIS
CERTIFIES THAT, _________________________, for value received is the registered holder of a Warrant or Warrants (the “Warrant”)
expiring on October 3, 2024, subject to extension in certain events (“Expiration Date”), to purchase
[●] fully paid and non-assessable shares (“Shares”) of common stock, par value $0.0001 per share
(“Common Stock”), of FAT Brands Inc., a Delaware corporation (the “Company”).
The Warrant entitles the holder thereof to purchase from the Company such number of shares of Common Stock at the price of $8.50
per share (subject to adjustment), upon surrender of this Warrant Certificate and payment of the Warrant Price to VStock Transfer,
LLC (the “Warrant Agent”), at its offices designated for such purpose, but only subject to the conditions
set forth herein and in the Warrant Agency Agreement between the Company and the Warrant Agent (as may be amended from time to
time, the “Warrant Agency Agreement”). The Warrant Agency Agreement provides that upon the occurrence
of certain events, the Warrant Price and the number of Shares purchasable hereunder, set forth on the face hereof, may, subject
to certain conditions, be adjusted. The term “Warrant Price” as used in this Warrant Certificate refers
to the price per share of Common Stock at which Shares may be purchased at the time the Warrant is exercised. Capitalized terms
used and not defined herein shall have the meanings set forth in the Warrant Agency Agreement.

 

No
fraction of a Share will be issued upon any exercise of a Warrant. If the holder of a Warrant would be entitled to receive a fraction
of a Share upon any exercise of a Warrant, the Company shall, at its election, either pay a cash adjustment in respect of such
fraction in an amount equal to such fraction multiplied by the Exercise Price or round up such fraction to the next whole share.

 

Upon
any exercise of the Warrant for less than the total number of full Shares provided for herein, there shall be issued to the registered
holder hereof or the registered holder’s assignee a new Warrant Certificate covering the number of Shares for which the
Warrant has not been exercised, provided that such holder has previously surrendered this Warrant to the Warrant Agent.

 

Upon
surrender of the Warrant Certificate for transfer, properly endorsed with signatures properly guaranteed and accompanied by appropriate
instructions for transfer, the Warrant Agent shall register the transfer. A new Warrant Certificate or Warrant Certificates evidencing
in the aggregate a like number of Warrants shall be issued and the old Warrant Certificate shall be canceled.

 

Warrant
Certificates, when surrendered to the Warrant Agent, may be transferred or exchanged in the manner and subject to the limitations
provided in the Warrant Agency Agreement, but without payment of any service charge, for another Warrant Certificate or Warrant
Certificates evidencing in the aggregate a like number of Warrants.

 

The
Company and the Warrant Agent may deem and treat the registered holder as the absolute owner of this Warrant Certificate (notwithstanding
any notation of ownership or other writing hereon made by anyone), for the purpose of any exercise hereof, and for all other purposes,
and neither the Company nor the Warrant Agent shall be affected by any notice to the contrary.

 

This
Warrant Certificate does not entitle the registered holder to any of the rights of a stockholder of the Company.

 

    	 	A-1	 

     

    

 

	FAT
    BRANDS INC.	 
	 	 	 
	By:	                     	 
	Name:	 	 
	Title:	 	 
	 	 	 
	COUNTERSIGNED:	 
	 	 	 
	VSTOCK
    TRANSFER, LLC	 
	as
    Warrant Agent 	 
	 	 	 
	By:	 	 

	Authorized
    Officer:	 	 

 

[Signature
page to Warrant Certificate]

 

    	 	A-2	 

     

    

 

ELECTION
TO PURCHASE FORM

 

(to
be executed by the registered holder in order to exercise Warrants)

 

The
undersigned registered holder irrevocably elects to exercise Warrants to purchase                       
shares of Common Stock represented by this Warrant Certificate and to purchase such shares of Common Stock issuable upon the exercise
of such Warrants, and requests that such shares shall be issued in the name of

 

	 
	(PLEASE
    TYPE OR PRINT NAME AND ADDRESS)
	 
	 
	 
	(SOCIAL
    SECURITY OR TAX IDENTIFICATION NUMBER)
	 
	and
    be delivered to:
	 
	 
	(PLEASE
    PRINT OR TYPE NAME AND ADDRESS)

 

and,
at the sole election of the registered holder, if such number of Warrants shall not be all the Warrants evidenced by this Warrant
Certificate, that a new Warrant Certificate for the balance of such Warrants be registered in the name of, and delivered to, the
registered holder at the address stated below:

 

	Dated:
    ______________________	 
	 	 
	 	 
	(SIGNATURE)	 
	 	 
	 	 
	(ADDRESS)	 
	 	 
	 	 
	(TAX
    IDENTIFICATION NUMBER)	 

 

    	 	A-3	 

     

    

 

ASSIGNMENT

 

(to
be executed by the registered holder in order to assign Warrants)

 

For
Value Received,                                   
hereby sells, assigns, and transfers unto

 

	 
	(PLEASE
    TYPE OR PRINT NAME AND ADDRESS)
	 
	 
	 
	(SOCIAL
    SECURITY OR TAX IDENTIFICATION NUMBER)
	 
	and
    be delivered to:
	 
	 
	(PLEASE
    PRINT OR TYPE NAME AND ADDRESS)

 

Warrants
to purchase                          
shares of Common Stock represented by this Warrant Certificate, and hereby irrevocably constitutes and appoints                                          
Attorney to transfer this Warrant Certificate on the books of the Company, with full power of substitution in the premises.

 

	Dated:	______________________
      _________________________
	(SIGNATURE)	 

 

The
signature to the assignment of the Subscription Form must correspond to the name written upon the face of this Warrant Certificate
in every particular, without alteration or enlargement or any change whatsoever, and must be guaranteed by a commercial bank or
trust company or a member firm of the American Stock Exchange, New York Stock Exchange, Pacific Stock Exchange or Chicago Stock
Exchange.

 

    	 	A-4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00300-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00300-of-00352.parquet"}]]