Document:

EXECUTION COPY

 

 

AMENDMENT AGREEMENT

 

This Amendment Agreement
(the “Agreement”), dated as of November 4, 2013 and effective as of October 31, 2013, is by and between WPCS
International Incorporated, a Delaware corporation with offices located at One East Uwchlan Avenue, Suite 301, Exton, Pennsylvania
19341 (the “Company”), and the holder identified on the signature page hereto (“Holder”).
This Agreement supplements the Amendment, Waiver and Exchange Agreement, dated October 24, 2013 (“Exchange Agreement”).
In the event that any provision of this Agreement conflicts with the Exchange Agreement, the provisions of this Agreement shall
prevail.

 

R E C I T A L S

 

A.Prior to the
date hereof, the Company has issued to the Holder (i) a senior secured convertible note (as amended
and waived prior to the date hereof, the “Note”), which Note is convertible into shares of the Company’s
common stock, $0.0001 par value per share (the “Common Stock”) (as converted, collectively, the “Conversion
Shares”), in accordance with the terms of the Note and (ii) a warrant (as amended and waived prior to the date hereof,
the “Warrant”) to purchase Common Stock (the “Warrant Shares”), in each case, pursuant to
a Securities Purchase Agreement, dated as of December 4, 2012 (as amended and waived prior to the date hereof, the “Securities
Purchase Agreement”) to the Holder and certain other investors signatory thereto (the Holder and such other investors
collectively, the “Investors”). Capitalized terms not defined herein shall have the meanings set forth in the
Securities Purchase Agreement as amended hereby.

 

B.The parties acknowledge
and agree that if an Event of Default existed under the Notes (as defined in the Securities Purchase Agreement) as of the date
hereof, the Investors would be entitled to redeem $3,405,667 in aggregate principal and interest of the Notes for an Event of Default
Redemption Price (as defined in the Notes) of $41,506,563 (the greater of 125% of (x) the deemed value of the shares of Common
Stock underlying the Notes (the “Intrinsic Value”) and (y) the outstanding principal and unpaid interest under
the Notes (the “Base Value”).

 

C.The Company and
the Holder desire to enter into this Agreement, pursuant to which, among other things, the Company and the Holder shall amend the
Note (x) to reduce the Event of Default Redemption Price by eliminating the Intrinsic Value calculation and modifying the Base
Value calculation and interest rate to more accurately make-whole the Holder from the loss of interest from an early redemption
of the Note and the decreased value of a Note without such Intrinsic Value rights and (y) to extend the maturity date to October
31, 2023.

 

C.Concurrently
with the transactions contemplated hereby, Investors (other than the Holder) (the “Other Holders”), which, together
with the Holder, beneficially own at least 51% of the aggregate principal amount of senior secured convertible
notes and related warrants of the Company (the “Required Holders”), are executing agreements identical
to this Agreement (other than proportional changes in the numbers reflecting the different aggregate principal amount of senior
secured convertible notes and related warrants of the Company held by each Other Holder and corresponding proportional changes
to the number of shares of Common Stock and new warrants to purchase Common Stock to be delivered to such Other Holder in exchange
for such portion of the applicable subordinated convertible note being exchanged) (the “Other
Agreements”, and together with this Agreement, the “Agreements”).

 

    	 

    	 

    

 

A G R E E M E N T

 

1.Amendment.
At the Effective Time (as defined below), effective as of October 31, 2013, the Transaction Documents shall be amended as follows:

 

1.1The second sentence
of Section 4(b) of the Note shall be amended and restated as follows:

 

At any time after
the earlier of the Holder’s receipt of an Event of Default Notice and the Holder becoming aware of an Event of Default, the
Holder may require the Company to redeem (regardless of whether such Event of Default has been cured) all or any portion of this
Note by delivering written notice thereof (the “Event of Default Redemption Notice”) to the Company, which Event
of Default Redemption Notice shall indicate the portion of this Note the Holder is electing to have the Company redeem. Each portion
of this Note subject to redemption by the Company pursuant to this Section 4(b) shall be redeemed by the Company at a price equal
to the sum of (A) the Conversion Amount to be redeemed and (B) the applicable Make-Whole Amount.

 

1.2Section 30 of
the Note shall be amended by adding the following as a new Section 30(www):

 

(www) “Make-Whole
Amount” means as of any given date, the amount of any Interest that, but for any redemption hereunder on such given date,
would have accrued with respect to the Conversion Amount being redeemed under this Note at the Interest Rate then in effect for
the period from such given date through October 31, 2023, discounted to the present value of such interest using a discount rate
of 2.5% per annum.

 

1.3The second sentence
of Section 2 of the Note shall be amended and restated as follows:

From and after
the occurrence and during the continuance of any Event of Default, the Interest Rate shall automatically be increased to twenty-five
percent (25%).

 

1.4Section 30(kk)
of the Note shall be amended and restated as follows:

 

“Interest Rate” means
fifteen percent (15%) per annum, subject to adjustment as set forth in Section 2.

 

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1.5The defined term “Notes”
shall be amended and restated as “the Notes (as amended and waived pursuant to the Amendment, Waiver and Exchange Agreements
and the Amendment Agreements).

 

1.6The defined term “Transaction
Documents” shall be amended to include those certain Amendment Agreements, dated as of November 4, 2013, and effective as
of October 31, 2013, each by and between the Company and each Buyer (the “Amendment Agreements”).

 

1.7Section 30(qq)
of the Note shall be amended and restated as follows:

 

“Maturity
Date” shall mean October 31, 2023; provided, however, the Maturity Date may be extended at the option of the Holder (i) in
the event that, and for so long as, an Event of Default shall have occurred and be continuing or any event shall have occurred
and be continuing that with the passage of time and the failure to cure would result in an Event of Default or (ii) through the
date that is twenty (20) Business Days after the consummation of a Fundamental Transaction in the event that a Fundamental Transaction
is publicly announced or a Fundamental Transaction Notice is delivered prior to the Maturity Date, provided further that if a Holder
elects to convert some or all of this Note pursuant to Section 3 hereof, and the Conversion Amount would be limited pursuant to
Section 3(d) hereunder, the Maturity Date shall automatically be extended until such time as such provision shall not limit the
conversion of this Note.

 

2.Representations
and Warranties.

 

2.1Holder Bring
Down. The Holder hereby makes the representations and warranties as to itself only as set forth in Section 2 of the Securities
Purchase Agreement (as amended hereby) as if such representations and warranties were made as of the date hereof and set forth
in their entirety in this Agreement, mutatis mutandis.

 

2.2Company Bring
Down. Except as set forth on Schedule 2.2 hereto and subject to such disclosures set forth in the Company’s filings with
the Securities and Exchange Commission prior to the date hereof and in the 8-K Filing (as defined below), the Company hereby makes
the representations and warranties to the Holder as set forth in Section 3 of the Securities Purchase Agreement (as amended hereby)
as if such representations and warranties were made as of the date hereof and set forth in their entirety in this Amendment, mutatis
mutandis.

 

3.Covenants.

 

3.1Disclosure
of Transactions and Other Material Information. On or before 9:30 a.m., New York time, on the first (1st) Business Day
following the date hereof, the Company shall file a Current Report on Form 8-K describing all the material terms of the transactions
contemplated by the Agreements in the form required by the 1934 Act and attaching all the material agreements (including, without
limitation, this Agreement) (including all attachments, the “8-K Filing”). On or prior to December 15, 2013
(such applicable date, the “Disclosure Date”), the Company shall have disclosed all material, non-public information
(if any) delivered to any of the Buyers by the Company or any of its Subsidiaries, or any of their respective officers, directors,
employees or agents in connection with the transactions contemplated by the Agreements.

 

    	3

    	 

    

 

3.2 Fees.
The Company shall reimburse Greenberg Traurig, LLP (counsel to the lead Investor), on demand, for all reasonable, documented
costs and expenses incurred by it in connection with preparing and delivering this Agreement (including, without limitation,
all reasonable, documented legal fees and disbursements in connection therewith, and due diligence in connection with the
transactions contemplated thereby) (the “Lead Investor Counsel Expenses”).

 

3.3Holding Period.
For the purposes of Rule 144, the Company acknowledges that upon any conversion of the Notes (as amended hereby) the holding period
of the Conversion Shares issuable upon conversion of the Note may be tacked onto the holding period of the Note, which holding
period commenced as of the December 5, 2012, and the Company agrees not to take a position contrary to this Section 3.3. The Company
agrees to take all actions, including, without limitation, obtaining customary legal opinions necessary to comply with the foregoing.

 

4.MISCELLANEOUS.

 

4.1Effective Time.
The amendments in Section 1 of this Agreement shall be effective as of October 31, 2013; upon the date each of the Required Holders
shall have executed each of their respective Amendment Agreements (the “Effective Time”).

 

4.2Miscellaneous
Provisions. Section 9 of the Securities Purchase Agreement (as amended hereby) is hereby incorporated by reference herein,
mutatis mutandis.

 

4.3Most Favored
Nation. The Company hereby represents and warrants as of the date hereof and covenants and agrees from and after the date hereof
that none of the terms offered to any Person with respect to any consent, release, amendment, settlement or waiver relating to
the terms, conditions and transactions contemplated hereby (each a “Settlement Document”), is or will be more
favorable to such Person than those of the Holder and this Agreement. If, and whenever on or after the date hereof, the Company
enters into a Settlement Document, then (i) the Company shall provide notice thereof to the Holder immediately following the occurrence
thereof and (ii) the terms and conditions of this Agreement, the Transaction Documents and the Securities (other than any limitations
on conversion or exercise set forth therein) shall be, without any further action by the Holder or the Company, automatically amended
and modified in an economically and legally equivalent manner such that the Holder shall receive the benefit of the more favorable
terms and/or conditions (as the case may be) set forth in such Settlement Document, provided that upon written notice to the Company
at any time the Holder may elect not to accept the benefit of any such amended or modified term or condition, in which event the
term or condition contained in this Agreement or the Securities (as the case may be) shall apply to the Holder as it was in effect
immediately prior to such amendment or modification as if such amendment or modification never occurred with respect to the Holder.
The provisions of this Section 4.3 shall apply similarly and equally to each Settlement Document.

 

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[The remainder of the page is intentionally
left blank]

 

 

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

 

COMPANY:

 

WPCS INTERNATIONAL INCORPORATED

 

By:_____________________________________

Name: Joseph Heater

Title: Chief Financial Officer

 

 

 

 

 

 

 

[Amendment Agreement]

 

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

 

HOLDER:

 

 

By:________________________________

Name:

Title:

 

 

 

 

 

 

[Amendment Agreement]

 

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SCHEDULE 3.2

 

The following are exceptions to the representations
and warranties made by the Company in the Securities Purchase Agreement, as if such representations and warranties were made as
of the date of this Agreement.

 

Section 3(b): The term “Stockholder
Approval” should be replaced with the term “Subsequent Stockholder Approval.” For purposes of this Agreement,
“Subsequent Stockholder Approval” means the approval of the Company’s stockholders, at either (x) the next annual
meeting of stockholders of the Company or (y) a special meeting of stockholders of the Company, which shall be promptly called
and held not later than February 28, 2013 of resolutions providing for the increase of the authorized shares of Common Stock of
the Company to a sufficient level in order to meet the Company’s obligations pursuant to the Transaction Documents.

 

Section 3(c): For purposes
of this representation, the term “Warrants” shall not include the Exchange Warrants. In addition, the term “Stockholder
Approval” should be replaced with the term “Subsequent Stockholder Approval.”

 

Section 3(l): As of the date
of this Agreement, the Company is deemed Insolvent (as defined in the Securities Purchase Agreement).

 

Section 3(p): In October
2013, the Company discovered that one of the Australian accountants submitted fraudulent invoices in August and September 2013
to Pride and funds were transferred to her account totaling approximately $26,000. The accountant has been criminally charged and
the Company is currently seeking restitution. As a result of further investigation, , the Company determined that this accountant
submitted additional fraudulent vendor invoices, which were paid to her, between May 2012 and May 2013 in the aggregate amount
of approximately $259,000 The accountant has been criminally charged with additional counts of fraud, and the Company is currently
seeking further restitution.

 

As a result of these fraudulent payments,
the Company has determined that there exists a material weakness in its financial accounting controls and procedures.

 

Section 3(v): Pursuant to
employment agreements with Myron Polulak, Curtis LaChance and Robert Roller, such individuals were entitled to receive annual bonuses
of $38,226, $101,987 and $47,644, respectively. Such bonuses were required to be paid within 30 days after July 29, 2013. Pursuant
to their employment agreements, failure to pay such bonus within 30 days of receipt from the employee of such default in payment,
would allow such employee to terminate their employment agreement for “Good Reason”, which would entitle the employee
to receive a lump-sum severance payment equal to the amount owed to such employee from the date of termination through the remaining
term of the employment agreement.

 

    	8

    	 

    

 

The Company received notices from Curtis
LaChance, Myron Polulak and Robert Roller on September 9, 2013, September 30, 2013 and October 24, 2013, respectively. The Company
entered into a waiver agreement with Curtis LaChance, Myron Polulak and Robert Roller on October 8, 2013, October 31, 2013 and
November 1, 2013, respectively.

 

Section 3(bb): See disclosure
for Section 3(p).

 

    	9SUBSCRIPTION
AGREEMENT

 

SUBSCRIPTION AGREEMENT
(this “Agreement” or “Subscription Agreement”) dated as of November 1, 2013 between JF
RESTAURANTS, LLC (“JFR”) and JF FRANCHISING SYSTEMS, LLC (“JFF”), each of which are North Carolina limited
liability Company having its principal offices at 6324 Fairview Road, Suite 550; Charlotte, NC 28210 (the “Companies”)
the Companies’ existing Preferred Members (set out below) (the “Preferred Members”) and CHANTICLEER HOLDINGS,
INC., a Delaware corporation having its principal offices at 11220 Elm Lane, Suite 203, Charlotte, NC 28277 (the “Subscriber”).

 

WHEREAS, on
the terms and subject to the conditions hereinafter set forth, the Companies and the Preferred Members are offering (the “Offering”)
with respect to an investment of five hundred and sixty thousand dollars (USD$560,000), the sale of a fifty one percent (51%) Preferred
Membership Interest in the Companies (the “Ownership Interest”).

 

This Offering shall
close on or before November 4, 2013. The Companies may extend the Offering upon approval of its Preferred Member Majority Approval.

 

WHEREAS, Subscriber
desires to acquire the Ownership Interest in the Companies.

 

WHEREAS the existing
Preferred Members consist of the following persons and corresponding ownership interest of each of the Companies.

 

	Preferred Members	JFR-Preferred Membership Int 	JFF-Preferred Membership Int
	Joseph H. Drury	30.15%	25%
	Ferguson Family Investments, LLC	27.01%	0%
	Darrell C. Ferguson	0%	29%
	Cameron Harris	28.87%	31%
	Keith Stoneman	13.97%	15%

 

 

NOW, THEREFORE, for
and in consideration of the premises and the mutual covenants hereinafter set forth, the parties hereto do hereby agree as follows:

 

Section
1.                Subscription.
On the terms and subject to the conditions hereinafter set forth, Subscriber hereby subscribes for and agrees to purchase from
the Companies and/or the Preferred Members, fifty one percent (51%) Ownership Interest in the Companies, for the purchase price
indicated (the “Purchase Price”). The Purchase Price is payable by check made payable to Fifth Third Bank in the amount
of $348,633.22 and New Dominion Bank in the amount of $85,691.49, contemporaneously with the execution and delivery of this Subscription
Agreement to the Companies or by wire transfer to the following coordinates:

 

    	1

    	 

    

 

	 	RBK:	 	 
	 	ABA:	 	 
	 	BNF:	 	 
	 	A/C:	 	 
	 	Attn:	 	 
	 	Ref:	 	 
	 	 	 	 
	 	RBK:	 	 
	 	ABA:	 	 
	 	BNF:	 	 
	 	A/C:	 	 
	 	Attn:	 	 
	 	Ref:	 	 

 

Promptly following
a closing at which all of Subscriber’s subscription is accepted by the Companies and the Preferred Members (“Seller’s
Acceptance”), all evidence of such acceptance will be delivered by the Companies to Subscriber.

 

Payment shall be made
in the following method: the entirety of the above bank loans due as of November 1, 2013 to be paid upon execution and delivery
of the Seller’s Acceptance, the remainder of $125,675.29 to be paid as directed by Preferred Member Majority Approval once
confirmation received that Shareholders have converted their interest as provided below, but no later than November 20, 2013 (“Final
Closing”).

 

Section
2.                Representations,
Warranties and Covenants of Subscriber. Subscriber hereby represents, warrants and covenants to the Companies that:

 

2.1             
Subscriber has received and has carefully read and considered the Term Sheet dated October 2013. In evaluating the suitability
of an investment in the Companies, Subscriber has not relied upon any representations or other information (whether oral or written)
received from the Companies, its officers, directors, agents, employees or representatives, except information set forth in this
Agreement, the Term Sheet or information that is obtained from the Companies in order to verify such information. Subscriber has
been afforded the opportunity to ask questions of and receive answers from management of the Companies concerning the terms and
conditions of the Offering and to obtain such additional information as Subscriber deemed necessary in order to evaluate its investment
in the Units.

 

2.2             
Subscriber understands that its purchase of the Ownership Interest may have tax consequences and that Subscriber must retain
its own professional advisors to evaluate the tax and other consequences of an investment in the Securities. Subscriber has independently
evaluated the merits of its decision to purchase pursuant to the transaction documents, and Subscriber confirms that it has been
afforded the opportunity to consult with its business, tax and/or legal counsel in making such decision and has availed itself
of that opportunity to the extent deemed advisable by Subscriber.

 

    	2

    	 

    

 

2.3             
Subscriber’s address set forth on the signature page hereto is its principal business address.

 

2.4             
Subscriber has all requisite legal and other power and authority to execute and deliver this Subscription Agreement and
to carry out and perform Subscriber’s obligations hereunder. This Subscription Agreement constitutes a valid and legally
binding obligation of Subscriber, enforceable in accordance with its terms, subject to laws of general application relating to
bankruptcy, insolvency and the relief of debtors and rules of law governing specific performance, injunctive relief or other general
principals of equity, whether such enforcement is considered in a proceeding in equity or law. The funds provided for this investment
are either separate property of Subscriber, community property over which Subscriber has the right of control or are otherwise
funds as to which Subscriber has the sole right of management.

 

2.5             
The execution, delivery and performance of this Subscription Agreement by Subscriber will not result in any violation of,
or conflict with, or constitute a default under, any of Subscriber’s articles of incorporation or by-laws, if applicable,
or any agreement to which Subscriber is a party or by which it is bound, nor result in the creation of any mortgage, pledge, lien,
encumbrance or charge against any of the assets or properties of Subscriber or on the Ownership Interest.

 

2.6             
No consent from any other person is required in order for Subscriber to execute this Agreement and perform its obligations
hereunder, or such consent has been obtained and a copy has been provided to the Companies.

 

2.7             
Subscriber understands that the Companies may intend to pay compensation in connection with the sale of the Units to the
extent permitted by law.

 

2.8             
Subscriber has kept confidential the existence of the Offering and the information contained therein or made available in
connection with any further investigation of the Companies.

 

2.9             
Subscriber’s representations and warranties contained in this Subscription Agreement accompanying this Subscription
Agreement do not contain any untrue statement of a material fact. Subscriber understands that the Companies is relying upon the
truth and accuracy of the representations, warranties and agreements of Subscriber set forth herein in making its determination
to sell the Ownership Interest.

 

2.10         
Upon Final Closing, the Subscribed will execute such documents as are reasonably required to be bound by the Companies’
Operating Agreement and admitted as a Preferred Member.

 

Section
3.                Representations,
Warranties and Covenants of Companies and Preferred Members. The Companies and Preferred Members hereby represents, warrants
and covenants to the Subscriber that:

 

3.1             
To their best knowledge and as otherwise disclosed, the Companies are not, with respect to their business operations, except
as disclosed in Attachment A hereto, (i) parties to any pending lawsuit or other legal proceedings, reconciliation or arbitration
proceedings or any other governmental investigation or proceedings; (ii) likely to become parties to any such legal proceedings;
and (iii) no other such legal proceeding has been instituted, pending, and/or threatened against the Companies.

 

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3.2             
The existing Shareholders shall convert all outstanding Member notes and loans to the Companies into Preferred Membership
Interest prior to the execution of Final Closing and documentation, or at the election of the Preferred Member Majority Approval
the Companies shall thereafter be released from all obligations for payment.

 

3.3             
At Final Closing upon the delivery of the remainder of the Purchase Price of the Ownership Interest, the Subscriber, or
its assignee shall be admitted as a Preferred Member of the Companies, and all action necessary to issue or transfer the Ownership
Interest shall be delivered.

 

Section
4.                Miscellaneous.

 

4.1             
Any notice or other communication required, permitted or provided for hereunder (each, a “Notice”) shall be
effective as between the parties only if given in writing and sent by (a) personal delivery, (b) registered or certified mail (return
receipt requested); or (c) express delivery service, to the Companies at 6324 Fairview Road, Suite 550; Charlotte, NC 28210 or
to the Subscriber at: 11220 Elm Lane, Suite 203, Charlotte, NC 28277. Notice shall be deemed to have been duly given and received
(i) if personally delivered, on the date of such delivery, (ii) if mailed, on the date set forth on the return receipt, or (iii)
if delivered by express delivery, on the date of such delivery (as evidenced by the receipt provided to the express delivery service).
If Notice cannot be delivered because of a changed address of which no Notice was given, or the refusal to accept delivery, the
Notice shall be deemed received on the date it is sent (as evidenced by the affidavit of the sender).

 

4.2             
This Subscription Agreement shall be binding upon and inure to the benefit of the parties hereto and to their respective
heirs, legal representatives, successors and assigns. This Subscription Agreement sets forth the entire agreement and understanding
between the parties as to the subject matter hereof and merges and supersedes all prior discussions, agreements and understandings
of any and every nature among them.

 

4.3             
Notwithstanding the place where this Subscription Agreement may be executed by any of the parties hereto, the Companies
and Subscriber hereby: (a) agree that all questions concerning the construction, validity, enforcement and interpretation of this
Subscription Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of Delaware,
without regard to the principles of conflicts of law thereof, and (b) all legal proceedings concerning the interpretation, enforcement
and defense of this Subscription Agreement shall be commenced in the Courts of the State of Delaware or the courts of the United
States of America and appellate courts from any thereof (the “Courts”), (c) irrevocably submit to the exclusive jurisdiction
of the Courts for the adjudication of any dispute hereunder (including with respect to the enforcement of this Subscription Agreement);
(d) irrevocably waive and agree not to assert in any suit, action or proceeding, any claim that it is not personally subject to
the jurisdiction of any of such Courts, or that such suit, action or proceeding is improper; (e) irrevocably waive personal service
of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered
or certified mail or overnight delivery (with evidence of delivery) to the other at the address in effect for notices to it under
this Subscription Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof
(nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law); and (f)
irrevocably waive, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding
arising out of or relating to this Subscription Agreement or the transactions contemplated hereby.

 

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4.4             
This Subscription Agreement may be executed in counterparts. Upon the execution and delivery of this Subscription Agreement
by the Subscriber, this Subscription Agreement shall become a binding obligation of the Subscriber with respect to the purchase
of Units as herein provided; subject, however, to the right hereby reserved to the Companies to enter into the same agreements
with other subscribers and to add and/or to delete other persons as subscribers.

 

4.5             
If any provision of this Subscription Agreement is declared by a court of competent jurisdiction to be in any way invalid,
illegal or unenforceable, the balance of this Subscription Agreement shall remain in effect, and if any provision is inapplicable
to any person or circumstance, it shall nevertheless remain applicable to all other persons and circumstances.

 

4.6             
No term or provision contained herein may be modified, amended or waived except by written agreement or consent signed by
the party or parties to be bound thereby. It is agreed that a waiver by either party of a breach of any provision of this Subscription
Agreement shall not operate, or be construed, as a waiver of any subsequent breach by that same party.

 

4.7             
The parties agree to execute and deliver all such further documents, agreements and instruments and take such other and
further action as may be necessary or appropriate to carry out the purposes and intent of this Subscription Agreement.

 

4.8             
Subscriber acknowledges that the subscription made hereby is not binding upon the Companies until the Companies accepts
it. The Companies has the right to accept or reject this subscription in whole or in part in its sole and absolute discretion.
If this subscription is rejected in whole, the Companies shall return the Purchase Price to Subscriber, without interest, and the
Companies and Subscriber shall have no further obligation to each other by reason of this Subscription Agreement or the subscription
made hereby. In the event of a partial rejection of this subscription, a proportionate amount of the Purchase Price will be returned
to Subscriber, without interest.

 

4.9             
This Subscription Agreement and its acceptance may be executed in any number of counterparts, each of which is an original
for all purposes, but all of which together constitute one agreement. Execution and delivery may be effected by the transmission
of electronic or facsimile signature pages.

 

[Remainder of Page Intentionally Blank,
Signature Blank, Signature Page Follows]

 

    	5

    	 

    

 

SIGNATURE
PAGE FOR PARTNERSHIP, CORPORATION,

LIMITED LIABILITY COMPANY OR TRUST

 

IN WITNESS WHEREOF,
the undersigned has executed this Subscription Agreement on the date set forth below.

 

 

	 	 	 	 	 
	Name of partnership, corporation, limited liability	 	 
	Company or trust	 	 	 
	 	 	 	 	 
	By: 	 	 	Federal Tax ID Number 	 
	 	 	 	 	 
	Name: 	 	 	 	 
	 	 	 	 	 
	Title: 	 	 	State of Organization 	 
	 	 	 	 	 
	Address:	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	Telephone:	 	 	 	 
	 	 	 	 	 
	Fax:	 	 	 	 
	 	 	 	 	 
	Email:	 	 	 	 
	 	 	 	 	 
	Date: 	 	 	 	 

 

 

Ownership Interest Subscribed For: __________

 

Purchase Price: __________________________

 

Exact Name in Which Securities are to be
Registered: ________________________________________

 

    	6

    	 

    

 

	Subscription Accepted:	 	 
	JF Restaurants, LLC	 	 
	 	 	 	 
	 	 	 	 
	By: 	 	 	 
	 	Name: Joseph H. Drury	 	 
	 	Title: Manager	 	 
	 	 	 	 
	Date: 	 	 	 
	 	 	 	 
	JF Franchising Systems, LLC	 	 
	 	 	 	 
	 	 	 	 
	By: 	 	 	 
	 	Name: Joseph H. Drury	 	 
	 	Title: Manager	 	 
	 	 	 	 
	Date: 	 	 	 
	 	 	 	 
	Consented and Agreed to by the Preferred Members of	 	 
	JF Restaurants, LLC and JF Franchising Systems, LLC:	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
		 	 	 
	Joseph H. Drury	 	 
	 	 	 	 
	Ferguson Family Investments, LLC	 	 
	 	 	 	 
	 	 	 	 
	By:		 	 
	       	Darrell C. Ferguson, as Manager	 	 
	 	 	 	 
	 	 	 	 
		 	 	 
	Darrell C. Ferguson	 	 
	 	 	 	 
	 	 	 	 
		 	 	 
	Cameron Harris	 	 
	 	 	 	 
	 	 	 	 
		 	 	 
	Keith Stoneman	 	 

 

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SPECIAL SUBSCRIPTION INSTRUCTIONS FOR
CORPORATE, PARTNERSHIP, LIMITED LIABILITY COMPANY, TRUST AND JOINT PURCHASERS

 

If Subscriber is a
corporation, partnership, limited liability company, trust, or other entity or joint purchaser, the following additional instructions
must be followed. INFORMATION ADDITIONAL TO THAT REQUESTED BELOW MAY ALSO BE REQUIRED BY THE COMPANY IN SOME CASES.

 

1.Certificate.
Subscriber must date and sign the Certificate below, and, if requested by the Company, Subscriber may also be required to provide
a copy of (a) the corporation’s articles of incorporation, bylaws and authorizing resolution, (b) the partnership agreement,
(c) the limited liability company’s certificate of formation or articles of organization, as applicable, and limited liability
company agreement, operating agreement or similar agreement governing the rights and obligations of the members of the limited
liability company, or (d) the trust agreement, as applicable.

 

2.Subscription Agreement.

 

(a)Corporations. An authorized
officer of the corporation must date, sign, and complete the Subscription Agreement with information concerning the corporation.
The officer should print the name of the corporation above his signature, and print his name and office below his signature.

 

(b)Partnerships. An authorized
partner must date, sign, and complete the Subscription Agreement with information concerning the partnership. The partner should
print the name of the partnership above his signature, and print his name and the words “general partner” below his
signature.

 

(c)Limited Liability Companies.
An authorized member or manager must date, sign, and complete the Subscription Agreement with information concerning the limited
liability company. The member or manager should print the name of the limited liability company above his signature, and print
his name and the word “member” or “manager” below his signature.

 

(d)Trusts. In the case of
a trust, the authorized trustee should date, sign, and complete the Subscription Agreement with information concerning the trust.
The trustee should print the name of the trust above his signature, and print his name and the word “trustee” below
his signature. In addition, an authorized trustee should also provide information requested in the Subscription Agreement as it
pertains to him as an individual.

 

(e)Joint Ownership. In all
cases, each individual must date, sign, and complete the Subscription Agreement. Joint investors must state if they are purchasing
the Shares as joint tenants with the right of survivorship, tenants in common, or community property, and each must execute the
Subscription Agreement signature page.

 

    	 

    	 

    

  

CERTIFICATE FOR CORPORATE, PARTNERSHIP,

LIMITED LIABILITY COMPANY, TRUST, AND
JOINT SUBSCRIBERS

 

If Subscriber is a
corporation, partnership, limited liability company, trust, joint purchaser, or other entity, an authorized officer, partner, member,
manager or trustee must complete, date and sign this Certificate.

 

 

 

CERTIFICATE

 

I hereby certify that:

 

1.Subscriber has been duly formed is
validly and existing and has full power and authority to purchase the Units and make an investment in Chanticleer Holdings, Inc.

 

 

2.The Subscription Agreement has been
duly and validly authorized, executed, and delivered by Subscriber and constitutes the valid, binding, and enforceable obligation
of Subscriber.

 

 

	Date:	 	 	 
		 	 	Name of corporation, partnership, limited liability company, trust or joint purchases
		 	 	(please print)
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	Signature and title of authorized officer, partner, member, manager, trustee, or joint purchaser

 

    	 

    	 

    

 

EXHIBIT A

 

Pending Action in Mecklenburg
County Superior court by New Dominion Bank.

 

    	1

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