Document:

Exhibit 4.13

 

ESCROW AGREEMENT

 

THIS AGREEMENT is
made and entered into as of March ___, 2015, by and among Securities Transfer Corporation (the "Escrow Agent"); Chanticleer
Holdings, Inc., Charlotte, NC, a Delaware corporation, the (“Company”) and Source Capital Group, Inc. (“Placement
Agent”).

 

WHEREAS, the Company
proposes to conduct a rights offering (the “Rights Offering”) in which it shall distribute one right per share (the
“Common Stock”), for each share of Common Stock held at the close of business on __________, 2015 (the “Record
Date”), entitling the holder thereof to subscribe for One (1) share of Common Stock at the price of $____ per share, up to
a total of $________________, payable upon subscription.

 

WHEREAS, the Company,
the Placement Agent and the Escrow Agent desire to establish an escrow account into which funds received from the persons desiring
to purchase Common Stock will be deposited and held until the next prescribed escrow break during the escrow period;

 

NOW, THEREFORE,
in consideration of the premises and the covenants herein contained, it is hereby agreed as follows:

 

1.          The
Company and Source hereby appoints and designates Securities Transfer Corporation, as Escrow Agent for the purposes herein set
forth, and Securities Transfer Corporation, does hereby accept such appointment.

 

2.          On
or prior to the date of the commencement of the Offering, the parties hereto shall establish an escrow account with the Escrow
Agent, which escrow account shall be entitled “Securities Transfer Corporation Account P” (the "Escrow
Account"). The Company shall instruct subscribers to make payment by one of the following means:

 

By Check, Bank Draft or
Money Order:

 

All checks, bank drafts
or money orders for the Common Stock purchases (the "Checks") should be made payable to the order of Securities Transfer
Corporation Account P, as Escrow Agent for Chanticleer Holdings, Inc. Any Checks received that are made payable to a party
other than as listed above shall be returned to the sender.

 

By Bank Wire:

 

Banking Institution: Vision
Bank-Texas

For Credit to: Securities
Transfer Corporation Account P

Routing #: ABA#111925472

Account #: 207290

 

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3.           The
Company agrees that it shall promptly deliver all monies received from subscribers for the exercise of the Rights to the Escrow
Agent for deposit in the Escrow Account together with a written account of each such exercise, which account shall set forth, among
other things, the state of residence of the subscriber, the number of shares purchased, the amount paid therefor, and whether the
consideration received was in the form of a check, draft, or money order. All monies so deposited in the Escrow Account are hereinafter
referred to as the "Escrow Amount." A deposit receipt (or other similar instrument) reflecting the deposit of such Checks
shall show, with respect to each exercise of Rights, the resident state of each subscriber and the amount of the Check deposited
in the Escrow Account (which information the Escrow Agent shall obtain from the cover letter(s) delivered to the Escrow Agent with
the Checks). The Escrow Agent shall forthwith deliver a copy of such deposit receipt to the Company.

 

4.           The
Escrow Period shall begin with the commencement of the Offering and shall terminate upon the earlier to occur of the following
dates:

 

(a)          The
date upon which the all Rights have been exercised and the Escrow Agent confirms that it has received in the Escrow Account gross
proceeds of $____________ in deposited funds; or

 

(b)          the
expiration date of the Rights, _______________, 2015.

 

Prior to the Escrow Agent
receiving funds representing the exercise of all of the Rights during the Escrow Period, or the expiration date of the Rights,
the Company is aware and understands that the Company is not entitled to any funds received into escrow, and no amounts deposited
in the Escrow Account during the Escrow Period shall become the property of the Company or any other entity, or be subject to the
debts of the Company or any other entity.

 

Unless otherwise specifically
directed herein, the Escrow Agent shall proceed as soon as practicable to collect any checks or other collection items at any time
deposited or received hereunder. All such collections shall be subject to the usual collection agreement regarding items received
by its commercial banking department for deposit or collection. The Escrow Agent shall have no duty to (i) notify anyone of any
payment or maturity under the terms of any instrument deposited or received hereunder or (ii) take any legal action to enforce
payment of any check, note or security deposited or received hereunder. In the event that any funds, including cleared funds, deposited
in the Escrow Account prove uncollectible after the funds represented thereby have been released by the Escrow Agent pursuant to
this Agreement, the Company shall immediately reimburse the Escrow Agent upon request for the face amount of such check or checks,
together with reasonable and customary charges and expenses related thereto, and the Escrow Agent shall deliver the returned checks
or other instruments to the subscriber. In such cases, the Escrow Agent will promptly notify the Company of such return. The Company
acknowledges that its obligation in the preceding sentence shall survive the termination of this Agreement and the resignation
or removal of the Escrow Agent. The Escrow Agent shall have no liability for, or obligation to pay, interest on any money deposited
or received hereunder. The Escrow Agent will not be required to lend to, or advance, or pay out of its own funds any sums whatsoever
for the account of the Company or the Placement Agent.

 

If the Company rejects
any subscription for which the Escrow Agent has already collected funds, the Escrow Agent shall promptly issue a refund check to
the rejected subscriber. If the Company rejects any subscription for which the Escrow Agent has not yet collected funds but has
submitted the subscriber's check for collection, the Escrow Agent shall promptly issue a check in the amount of the subscriber's
check to the rejected subscriber after the Escrow Agent has cleared such funds. If the Escrow Agent has not yet submitted a rejected
subscriber's check for collection, the Escrow Agent shall promptly remit the subscriber's check directly to the subscriber.

 

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5.           During
the Escrow Period, the Escrow Agent shall make escrow breaks and deliver funds per the Escrow Agreement upon the following occurrences:

 

(a)          The
date upon which the Escrow Agent confirms that it has received in the Escrow Account gross proceeds of $_______________ of deposited
funds (representing exercise of all of the Rights); and

 

(b)          the
third business day after the expiration of the Rights.

 

6.           In
the event the Escrow Agent shall have received written notice from the Company before the termination of the Escrow Period to release
from the Escrow Account and deliver to a particular subscriber his funds, the Escrow Agent shall forward to such subscriber his
original Check or an amount equal to the amount of such subscriber's Check without deduction, penalty, or expense to the subscriber,
and the Escrow Agent shall notify the Company and the Placement Agent of its distribution of such funds. The purchase money
returned to each subscriber shall be free and clear of any and all claims of the Company or any of its creditors.

 

In the event the Escrow
Agent does receive any funds prior to the termination of the Escrow Period, in no event will the Escrow Amount be released to the
Company until such amount is received by the Escrow Agent in collected funds. For purposes of this Agreement, the term “collected
funds” shall mean all funds received by the Escrow Agent which have cleared normal banking channels and are in the form of
cash.

 

7.           After
the termination of the Escrow Period pursuant to Section 4 hereof, or after the maximum of $__________ has been reached pursuant
to Section 5(a), and upon receipt by the Escrow Agent of

 

(i)          Notice
from the Company and the Placement Agent, jointly, in the form of Exhibit A, attached hereto and made a part hereof (the
"Company Notice of Acceptance"); and

 

(ii)         Clearance
and payment in full on all subscribers' Checks whose subscriptions are accepted,

 

The Escrow Agent shall

 

(a)          deliver
to the Company by wire or certified or official bank check payable in immediately available funds an amount equal to the amount
set forth in Paragraph 7 of the Company’s Notice of Acceptance as set forth therein;

 

(b)           deliver
to the Placement Agent the fee set forth in the Company Notice of Acceptance; and

 

(b)          deliver
to each subscriber (if any) identified in Paragraph 2 or Paragraph 3 of the Company's Notice of Acceptance as having had his subscription
agreement rejected in whole or in part by the Company, such subscriber's original Check or an amount equal to the amount set forth
opposite such subscriber's name on Appendices II and III, respectively, to the Company's Notice of Acceptance.

 

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8.          This
Agreement shall become effective as of the date hereof, and shall continue in force until the delivery of all funds held by the
Escrow Agent hereunder in accordance with Section 7 hereof or until terminated by an instrument in writing executed by the
Company and the Placement Agent.

 

9.          The
Company shall pay the Escrow Agent a fee for its escrow services as per Exhibit B attached hereto, which is made a part
hereof, and for reimbursement of its out-of-pocket expenses including, but not by way of limitation, the fees and costs of attorneys
or agents which it may find necessary to engage in performance of its duties hereunder, all to be paid by the Company, and the
Escrow Agent shall have, and is hereby granted, a prior lien upon any property, cash, or assets of the Escrow Account, with respect
to its unpaid fees and non-reimbursed expenses, superior to the interests of any other persons or entities. If it is necessary
for the Escrow Agent to return funds to the subscribers, the Company shall pay to the Escrow Agent an additional amount sufficient
to reimburse it for its actual cost in disbursing such funds.

 

10.         The
Escrow Agent will not invest the Escrow Amount or any deposits to the Escrow Account and any such deposits shall earn no interest.

 

11.         The
Escrow Agent shall have no responsibility except for the safekeeping and delivery of the amounts deposited in the Escrow Account,
in accordance with this Agreement. The Escrow Agent shall not be liable for any act done or omitted to be done under this Agreement
or in connection with the amounts deposited in the Escrow Account except as a result of the Escrow Agent's gross negligence or
willful misconduct. The Escrow Agent is not a party to nor is it bound by, nor need it give consideration to the terms or provisions
of, even though it may have knowledge of, (i) any agreement or undertaking by, between or among the Company and any other party,
except this Agreement, (ii) any agreement or undertaking that may be evidenced by this Agreement, or (iii) any other agreements
that may now or in the future be deposited with the Escrow Agent in connection with this Agreement. The Company and the Placement
Agent covenant that they will not commence any action against the Escrow Agent at law, in equity, or otherwise as a result of any
action taken or thing done by the Escrow Agent pursuant to this Agreement, or for any disbursement made as authorized herein upon
failure of the Company or the Placement Agent to give the notice within the times herein prescribed. The Escrow Agent has no duty
to determine or inquire into any happening or occurrence or of any performance or failure of performance of the Company or the
Placement Agent or of any other party with respect to agreements or arrangements with any other party. If any question, dispute
or disagreement arises among one or more of the parties hereto and/or any other party with respect to the funds deposited in the
Escrow Account, the proper interpretation of this Agreement, the duties of the Escrow Agent hereunder or the rights of the parties
to this Escrow Agreement, the Escrow Agent shall not be required to act and shall not be held liable for refusal to act until the
question or dispute is settled, and the Escrow Agent has the absolute right at its discretion to do either or both of the following:

 

(a)          Withhold
and/or stop all further performance under this Agreement until the Escrow Agent is satisfied, by receipt of a written document
in form and substance satisfactory to the Escrow Agent and executed and binding upon all interested parties hereto (who may include
the subscribers), that the question, dispute, or disagreement has been resolved; or

 

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(b)          File
a suit in interpleader and obtain by final judgment, rendered by a court of competent jurisdiction, an order binding all parties
interested in the matter and thereafter be fully relieved from any and all liability or obligation with respect to such interpleaded
assets. The parties hereto other than the Escrow Agent further agree to pursue any redress or recourse in connection with such
a dispute, without making the Escrow Agent a party to same.

 

The Escrow Agent shall
never be required to post a bond in connection with any services hereunder. The Escrow Agent may consult with counsel of its own
choice and shall have full and complete authorization and protection for any action taken or suffered by it hereunder in good faith
and in accordance with the opinion of such counsel (who shall not be counsel for the Company).

 

12.         Notwithstanding
any provision contained herein to the contrary, the Escrow Agent, including its officers, directors, employees and agents, shall:

 

(a)          Not
be liable for any action taken or omitted under this Agreement so long as it shall have acted in good faith and without gross negligence;

 

(b)          Nave
no responsibility to inquire into or determine the genuineness, authenticity, or sufficiency of any securities, checks, or other
documents or instruments submitted to it in connection with its duties hereunder;

 

(c)          Be
entitled to deem the signatories of any documents or instruments submitted to it hereunder as being those purported to be authorized
to sign such documents or instruments on behalf of the parties hereto, and shall be entitled to rely upon the genuineness of the
signatures of such signatories without inquiry and without requiring substantiating evidence of any kind;

 

(d)          Be
entitled to refrain from taking any action contemplated by this Agreement in the event that it becomes aware of any disagreement
between the parties hereto as to any facts or as to the happening of any contemplated event precedent to such action;

 

e)          Have no responsibility
or liability for any diminution in value of any assets held hereunder;

 

(f)          Be
entitled and is hereby granted the right to set off and deduct any unpaid fees and/or non-reimbursed expenses from amounts on deposit
in the Escrow Account;

 

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(g)          Have
only those duties as are specifically provided herein, which shall be deemed purely ministerial in nature, and shall under no circumstance
be deemed a fiduciary for any of the parties to this Agreement. The Escrow Agent shall neither be responsible for, nor chargeable
with, knowledge of the terms and conditions of any other agreement, instrument or document between the other parties hereto, in
connection herewith, including without limitation the prospectus included in the effective registration statement registering the
shares of Common Stock issuable upon exercise of the Rights. This Agreement sets forth all matters pertinent to the escrow contemplated
hereunder, and no additional obligations of the Escrow Agent shall be inferred from the terms of this Agreement or any other Agreement.
IN NO EVENT SHALL THE ESCROW AGENT BE LIABLE, DIRECTLY OR INDIRECTLY, FOR ANY (i) DAMAGES OR EXPENSES ARISING OUT OF THE SERVICES
PROVIDED HEREUNDER, OTHER THAN DAMAGES WHICH RESULT FROM THE ESCROW AGENT’S FAILURE
TO ACT IN ACCORDANCE WITH THE STANDARDS SET FORTH IN THIS AGREEMENT, OR (ii) SPECIAL OR CONSEQUENTIAL DAMAGES, EVEN IF THE ESCROW
AGENT HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES;

 

(h)          Have
the right to perform any of its duties hereunder through agents, attorneys, custodians or nominees.

 

13.         The
Escrow Agent may rely and shall be protected in acting or refraining from acting upon any written notice, instruction, or request
furnished to it hereunder and believed by it to be genuine and to have been signed or presented by the proper party or parties
and to take statements made therein as correct without any affirmative duty of investigation.

 

14.         Any
banking association or corporation into which the Escrow Agent may be merged, converted or with which the Escrow Agent may be consolidated,
or any corporation resulting from any merger, conversion or consolidation to which the Escrow Agent shall be a party, or any banking
association or corporation to which all or substantially all of the corporate trust business of the Escrow Agent shall be transferred,
shall succeed to all the Escrow Agent’s rights, obligations and immunities hereunder without the execution or filing of any
paper or any further act on the part of any of the parties hereto, anything herein to the contrary notwithstanding.

 

15.         In
the event that any escrow property shall be attached, garnished or levied upon by any court order, or the delivery thereof shall
be stayed or enjoined by an order of a court, or any order, judgment or decree shall be made or entered by any court order affecting
the property deposited under this Agreement, the Escrow Agent is hereby expressly authorized, in its sole discretion, to obey and
comply with all writs, orders or decrees so entered or issued, which it is advised by legal counsel of its own choosing is binding
upon it, whether with or without jurisdiction, and in the event that the Escrow Agent obeys or complies with any such writ, order
or decree it shall not be liable to any of the parties hereto or to any other person, firm or corporation, by reason of such compliance
notwithstanding such writ, order or decree be subsequently reversed, modified, annulled, set aside or vacated.

 

16.         The
Escrow Agent may resign and be discharged from its duties or obligations hereunder by giving notice in writing of such resignation
specifying a date when such resignation shall take effect. If the other parties hereto have failed to appoint a successor prior
to the expiration of thirty (30) days following receipt of the notice of resignation or removal, the Escrow Agent may appoint a
successor or petition any court of competent jurisdiction for the appointment of a successor escrow agent or for other appropriate
relief, and any such resulting appointment shall be binding upon all of the parties hereto.

 

17.         The
Company hereby agrees to indemnify the Escrow Agent for, and to hold it harmless against, any loss, liability, or expense (including
all legal expenses described in Section 10 incurred without gross negligence or willful misconduct on the part of the Escrow Agent,
arising out of or in connection with its entering into this Agreement and carrying out its duties hereunder, including the costs
and expenses of defending itself against any claim of liability in the premises unless such losses, liabilities, costs and expenses
shall have been finally adjudicated to have resulted from the bad faith or gross negligence of the Escrow Agent, and such indemnification
shall survive its resignation or removal, or the termination of this Agreement.

 

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18.         All
payments and deliveries required to be made by the Escrow Agent to the Company, or the subscribers hereunder shall be made in accordance
with the provisions of Section 7 hereof, and all payments and deliveries so made shall be valid and effective to discharge the
liability of the Escrow Agent with respect thereto. Upon disbursement of all of the Company's funds in the Escrow Account in accordance
with Section 7 hereof, the Escrow Agent's responsibilities under this Agreement shall terminate. The Escrow Agent shall have no
liability under any circumstances with respect to the application of the proceeds of any delivery of funds made by it.

 

19.         Any
notice, authorization, request or demand required or permitted to be given hereunder shall be in writing. The Escrow Agent shall
be deemed to have delivered and given notice or other item required to be delivered under this Agreement upon the deposit thereof
by the Escrow Agent in the U.S. Mail by registered or certified mail postage prepaid and addressed as follows:

 

If to the Company:

 

	 	Chanticleer Holdings, Inc.
	 	Attn: Mike Pruitt
	 	7621 Little Avenue, Suite 414
	 	Charlotte, NC 28226

 

If to a subscriber:

 

To the address
set forth in the cover letter(s) referenced in Section 3 hereof.

 

If to the Placement Agent:

 

	 	Source Capital Group, Inc.
	 	Attn: Richard Kreger
	 	276 Post Road West
	 	Westport, CT 06880

 

Any notice, instruction
or other item to the Escrow Agent shall be deemed to have been given only when received by the Escrow Agent. Such notice may be
given by any accepted means of communication including, but not limited to, in person, by telegram or by U.S. Mail at its principal
offices or at the following address:

 

Securities Transfer
Corporation

2591 Dallas Parkway,
Suite 102

Frisco, Texas
75034

 

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A United States Post Office
registered or certified mail receipt showing delivery as aforesaid shall be conclusive evidence of the date and fact of delivery.
Any party hereto may change the address to which notices are to be delivered by giving to the other parties not less than ten days
written notice thereof.

 

20.         This
Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, administrators,
personal representatives, successors and assigns.

 

21.         This
Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument.

 

22.         This
Agreement has been executed and delivered in and shall be construed and enforced in accordance with the laws of the State of Texas.

 

23.         This
Agreement may be amended or canceled by and upon written notice to the Escrow Agent at any time by the Company and the Broker-Dealer,
but the duties and responsibilities of the Escrow Agent may not be increased without its consent.

 

24.         This
instrument evidences the entire agreement between the Escrow Agent, the Company and the Broker-Dealer, and represents a merger
of all preceding agreements between the parties hereto pertaining to the subject matter hereof.

 

DATED and effective
as of this ___ day of________, 2015.

 

	 	SECURITIES TRANSFER CORPORATION

	 	 	 
	 	By:	 

	 	 	Its:	 

	 	 	 
	 	 	 
	 	 	 
	 	CHANTICLEER HOLDINGS, INC.
	 	 	 
	 	By:	 
	 	 	________________, President
	 	 	 
	 	SOURCE CAPITAL GROUP, INC.
	 	 	 
	 	By:	 
	 	 	________________, [TITLE]

 

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EXHIBIT A

 

__________, 2015

Gentlemen:

Reference is made to that certain Escrow
Agreement dated effective as of___________, 2015 (the "Agreement") by and between you, and the undersigned. This
letter is the "Company's Notice of Acceptance" referenced in Section 7(i) of the Agreement. All terms used herein
shall have the same meaning as defined in the Agreement.

 

1.          The
identity of those subscribers whose subscription agreements have been accepted in whole by the Company and the amount of the Check
or wire deposit of each such subscriber which was delivered to you are set forth in Appendix I attached hereto and made a part
hereof.

 

2.          The
name and address of each subscriber whose subscription was totally rejected by the Company, and the amount of the Check or wire
deposit of such subscriber which was delivered to you, which amount is to be returned to the subscriber, are set forth in Appendix
II attached hereto and made a part hereof.

 

3.          The
name and address of each subscriber whose subscription agreement was accepted in part by the Company, and the amount of the Check
or wire deposit of such subscriber which was delivered to you, and the amount to be returned to each are set forth in Appendix
III attached hereto and made a part hereof.

 

4.          The
aggregate dollar amount of the Checks or wire deposits deposited in the Escrow Account is $_______________.

 

5.          The
aggregate dollar amount of the funds deposited in the Escrow Account to be delivered to Source Capital Group is $____________.

 

6.          The
aggregate dollar amount of the funds deposited in the Escrow Account to be delivered to the Company is $_____________.

 

Each amount set forth herein
is correctly stated.

 

	 	Very truly yours,
	 	 
	 	CHANTICLEER HOLDINGS, INC.
	 	 	 
	 	By:	 
	 	 	______________, President
	 	 	 
	 	SOURCE CAPITAL GROUP, INC.
	 	 	 
	 	By:	 
	 	 	______________, President 

 

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Exhibit B

 

Subscription
Escrow Fee Schedule

 

SECURITIES TRANSFER CORPORATION FEE SCHEDULE

 

ESCROW AGENT SERVICES

 

	Establishment of Escrow Account	$1,500
	Receive, Examine and Process Subscription Agreements	$10.00 per Subscription
	Envelopes & Postage	Included
	Prepare & Print Checks for Disbursement of Escrowed funds	Included
	Wire Transfer of Escrowed funds	$25.00 per wire

 

    	10Exhibit 10.17

 

 

February 11, 2015

 

Michael D. Pruitt

Chanticleer Holdings, Inc.

11220 Elm Lane

Suite 203

Charlotte, NC 28277

 

Source
Capital Group, Inc. Proposed Offering Engagement Letter

 

To Michael D. Pruitt:

 

The purpose of this
engagement letter is to set forth the terms pursuant to which Source Capital Group, Inc. whose address is 276 Post Road West, Westport,
CT 06880 (hereinafter referred to as “Source” or “SCG” or “Dealer Manager”)
will act as the sole exclusive placement agent and financial advisor for a proposed issuance, or series of issuances, of registered
securities (“Proposed Offering”) of Chanticleer Holdings, Inc. a Delaware Corporation (collectively, with its
subsidiaries and affiliates), (hereinafter referred to as the “Issuer” or the “Company”),
including but not limited to, (i) any Proposed Offering and/or sale from an effective registration statement as dealer-manager
in connection with the proposed issuance (the “Rights Offering”) of certain rights (the “Rights”)
to subscribe for and purchase shares of common stock of the Company and assist, on a best efforts basis (see Exhibit B in respect
to Rights Offerings).

 

The terms of our agreement
are as follows:

 

1.           The
Issuer hereby retains and engages Source, for the period beginning on the date hereof and ending on June 30, 2015, unless
sooner terminated pursuant to the terms of this engagement letter agreement or extended: (i) for an additional ninety (90) day
period in the sole discretion of Source, or (ii) after such ninety (90) day period referred to herein in the mutual discretion
of the Issuer and Source (the “Engagement Period”), to act as the Issuer’s sole exclusive placement agent,
financial advisor and/or dealer-manager in connection with the Proposed Offering. The compensation for acting as the exclusive
sole placement agent to the Issuer and conditions of Source’s engagement is stated hereunder. During the Engagement Period
and as long as Source is proceeding in good faith with activities in connection with the Proposed Offering, the Issuer agrees not
to solicit, negotiate with or enter into any agreement with any other source of financing (whether equity, debt or otherwise other
than bank financings or financings in connection with strategic alliances), any placement agent, financial advisor, dealer manager
or any other person or entity in connection with the Proposed Offering, as the case may be, subject to prior written approval from
Source.

 

2.           In
consideration for its services in the Proposed Offering, Source shall be entitled to the following payments:

 

(a)          Intentionally
Omitted

 

(b)          In
the case of a Proposed Offering that is a Rights Offering, a cash fee equal to i through vi of the dollar amount received by the
Issuer, in connection with any proceeds received by the Issuer from any cash exercise of subscription rights issued to investors.

 

	Members FINRA & SIPC	276 Post Road West, Westport, CT  06880	www.Sourcegrp.com

 

    	 

    	 

    

 

Page 2

 

		i.	If the Subscription Rights Exercise price is equal to or greater than the closing price of the
common stock on the last day to buy the shares of Issuer in order to be a shareholder of record, than the cash fee shall equal
6%.

 

		ii.	If the Subscription Rights Exercise price is equal to or less than a 9% discount but greater than
a 0% discount to the closing price of the common stock on the last day to buy the shares of Issuer in order to be a shareholder
of record, than the cash fee shall equal 5%.

 

		iii.	If the Subscription Rights Exercise price is equal to or less than a 19% discount but greater than
a 9% discount to the closing price of the common stock on the last day to buy the shares of Issuer in order to be a shareholder
of record, than the cash fee shall equal 4.5%.

 

		iv.	If the Subscription Rights Exercise price is equal to or less than a 29% discount but greater than
a 19% discount to the closing price of the common stock on the last day to buy the shares of Issuer in order to be a shareholder
of record, than the cash fee shall equal 4%.

 

		v.	If the Subscription Rights Exercise price is equal to or less than a 39% discount but greater than
a 29% discount to the closing price of the common stock on the last day to buy the shares of Issuer in order to be a shareholder
of record, than the cash fee shall equal 3.5%.

 

		vi.	If the Subscription Rights Exercise price is greater than a 39% discount to the closing price of
the common stock on the last day to buy the shares of Issuer in order to be a shareholder of record, than the cash fee shall equal
3%.

 

(c)          A
cash non-accountable expense allowance equal to i through vi of the dollar amount received by the Issuer in connection with any
Proposed Offering.

 

		i.	If the Subscription Rights Exercise price is equal to or greater than the closing price of
                                                               the common stock on the last day to buy the shares of Issuer in order to be a shareholder of record, than the non-accountable
                                                               expense shall equal 2%.

 

		ii.	If the Subscription Rights Exercise price is equal to or less than a 9% discount but greater than
a 0% discount to the closing price of the common stock on the last day to buy the shares of Issuer in order to be a shareholder
of record, the non-accountable expense shall equal 1.75%

 

		iii.	If the Subscription Rights Exercise price is equal to or less than a 19% discount but greater than
a 9% discount to the closing price of the common stock on the last day to buy the shares of Issuer in order to be a shareholder
of record, the non-accountable expense shall equal 1.5%.

 

		iv.	If the Subscription Rights Exercise price is equal to or less than a 29% discount but greater than
a 19% discount to the closing price of the common stock on the last day to buy the shares of Issuer in order to be a shareholder
of record, the non-accountable expense shall equal 1.25%.

 

		v.	If the Subscription Rights Exercise price is equal to or less than a 39% discount but greater than
a 29% discount to the closing price of the common stock on the last day to buy the shares of Issuer in order to be a shareholder
of record, the non-accountable expense shall equal 1%.

  

	Members FINRA & SIPC	276 Post Road West, Westport, CT  06880	www.Sourcegrp.com

 

    	 

    	 

    

 

Page 3

 

		vi.	If the Subscription Rights Exercise price is greater than a 39% discount to the closing price of
the common stock on the last day to buy the shares of Issuer in order to be a shareholder of record, the non-accountable expense
shall equal 0.75%.

 

		(d)	Intentionally Omitted

 

3.            The
Issuer shall be responsible for and pay all expenses relating to the Proposed Offering, including, without limitation, all filing
fees relating to any registration statement required by be filed as part of the Proposed Offering of and any filing fees relating
to the review of the Proposed Offering materials by the Financial Industry Regulatory Authority, Inc. (“FINRA”);
all fees and expenses relating to the listing of such Shares on the exchange where the Common Stock is (or will be) listed; all
fees, expenses and disbursements relating to the registration or qualification of the Shares under the “blue sky” securities
laws of any states or other jurisdictions; the costs of mailing and printing all of the Proposed Offering documents, Registration
Statements, Prospectuses and all amendments, supplements and exhibits thereto and as many preliminary and final Prospectuses as
Source may reasonably deem necessary; the costs and expenses of any public relations or solicitation firm hired by the Issuer in
connection with any Rights Offering; the costs of preparing, printing and delivering certificates representing the Rights or any
other securities; fees and expenses of the subscription agent and information agent, if applicable; the fees and expenses of the
Issuer’s accountants and the fees and expenses of the Issuer’s legal counsel and other agents and representatives.

 

4.            Source
may plan and arrange one or more “road show” trips for the Issuer’s management to market the Proposed Offering.
The Issuer shall pay for its own expenses, including, without limitation, travel and lodging expenses, associated with such trips.
During the 45-day period prior to the filing of the Registration Statement, if applicable, with the Securities and Exchange Commission
(“Commission”), and at all times thereafter prior and following the effectiveness of such Registration Statement,
the Issuer and its officers, directors and related parties will abide by all rules and regulations of the Commission relating to
public Proposed Offerings, including, without limitation, those relating to public statements (i.e., “gun jumping”)
and disclosures of material non-public information.

 

5.            The
Issuer shall supply Source and its counsel, at the Issuer’s cost, with bound volumes of the Proposed Offering materials within
a reasonable time after the closing of the Proposed Offering (the “Closing”).

 

6.            The
Proposed Offering shall be conditioned upon, among other things, the following:

 

(a)          Satisfactory
completion by Source of its due diligence investigation and analysis of: (i) the Issuer’s arrangements with its officers,
directors, employees, affiliates, customers and suppliers, (ii) the audited historical financial statements of the Issuer as may
be required by the Act and rules and regulations of the Commission thereunder for inclusion in the Registration Statement, if applicable,
and (iii) the Issuer’s projected financial results for the fiscal year ending December 31, 2014;

 

(b)          As
to a Rights Offering, the execution by the Issuer and Source of a definitive Dealer-Manager Agreement containing all applicable
terms and conditions provided for in this engagement agreement;

 

(c)          The
continued listing of the Common Stock on its current exchange or migration to a higher exchange (“Trading Market”);

 

(d)          Source
shall have received from outside counsel to the Issuer such counsel’s written opinion, addressed to Source, dated as of the
Closing, in customary form and substance reasonably satisfactory to Source;

 

	Members FINRA & SIPC	276 Post Road West, Westport, CT  06880	www.Sourcegrp.com

 

    	 

    	 

    

 

Page 4

 

(e)          FINRA
shall have raised no objection to the fairness and reasonableness of the terms and arrangements of this Agreement. In addition,
the Company shall, if requested by Source, make or authorize Source’s counsel to make on the Company’s behalf, an Issuer
Filing with the FINRA Corporate Financing Department pursuant to FINRA Rule 5110 and pay all filing fees required in connection
therewith.

 

(f)          Prior
to the Closing, the Company shall have furnished to Source such further information, certificates and documents as Source may reasonably
request, including customary audit comfort letters (all opinions, letters, evidence and certificates mentioned above or elsewhere
in this Agreement shall be deemed to be in compliance with the provisions hereof only if they are in form and substance reasonably
satisfactory to counsel for Source);

 

(g)          Any
Proposed Offering shall fund through an escrow account established by Source and paid for by the Issuer; and

 

(h)          As
to a Rights Offering, the Issuer retaining a solicitation/information agent and subscription agent for the Rights Offering reasonably
acceptable to Source to perform services in connection with the Rights Offering that are customary for a solicitation/information
agent and subscription agent.

 

7.           Intentionally
Omitted

 

8.           Source
shall not be granted the right of first refusal (“No Right of First Refusal”) on subsequent offerings by the
Issuer.

 

9.           Intentionally
Omitted

 

10.         The
Issuer represents and warrants to Source as follows:

 

(a)          The
Issuer has the requisite corporate power and authority to enter into and to consummate the transactions contemplated hereunder
and otherwise to carry out its obligations hereunder. The execution and delivery of this Agreement by the Issuer and the consummation
by it of the transactions contemplated hereby have been duly authorized by all necessary action on the part of the Issuer and no
further action is required by the Issuer, its board of directors or its stockholders in connection herewith. This Agreement has
been duly authorized and executed by the Issuer and, when delivered in accordance with the terms hereof and thereof, will constitute
the valid and binding obligation of the Issuer enforceable against the Issuer in accordance with its terms except (i) as limited
by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application
affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific
performance, injunctive relief or other equitable remedies, and (iii) that rights to indemnification and contribution thereunder
may be limited by federal or state securities laws or public policy relating thereto.

 

(b)          The
execution, delivery and performance of this Agreement by the Issuer do not and will not (i) conflict with or violate any provision
of the Issuer’s or any subsidiary’s certificate or articles of incorporation, bylaws or other organizational or charter
documents, or (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become
a default) under, result in the creation of any Lien upon any of the properties or assets of the Issuer or any subsidiary, or give
to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of,
any agreement, credit facility, debt or other instrument (evidencing a Issuer or subsidiary debt or otherwise) or other understanding
to which the Issuer or any subsidiary is a party or by which any property or asset of the Issuer or any subsidiary is bound or
affected (except as may have been consented to or waived), or (iii)  conflict with or result in a violation of any law, rule,
regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Issuer
or a Subsidiary is subject (including federal and state securities laws and regulations), or by which any property or asset of
the Issuer or a Subsidiary is bound or affected.

 

	Members FINRA & SIPC	276 Post Road West, Westport, CT  06880	www.Sourcegrp.com

 

    	 

    	 

    

 

Page 5

 

(c)          The
Issuer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration
with, any court or other federal, state, local or other governmental authority or other “Person” (defined as
an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability
Issuer, joint stock Issuer, government (or an agency or subdivision thereof) or other entity of any kind) in connection with the
execution, delivery and performance by the Issuer of this Agreement, other than such filings as are required to be made under applicable
Federal and state securities laws, by the Trading Market.

 

(d)          Except
as otherwise provided in this Agreement, no brokerage or finder’s fees or commissions are or will be payable by the Issuer
to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to
the transactions contemplated by the this Agreement. Source shall have no obligation with respect to any fees or with respect to
any claims made by or on behalf of other Persons for fees of a type contemplated in this Section that may be due in connection
with the offer and sale of the Securities contemplated by the this Agreement.

 

(e)          The
Issuer has not, and to its knowledge none of its officers or directors have, (i) taken, directly or indirectly, any action
designed to cause or to result in the stabilization or manipulation of the price of any security of the Issuer to facilitate the
sale or resale of any of the Securities, (ii) sold, bid for, purchased, or, paid any compensation for soliciting purchases
of, any of the Securities (other than Source’s placement of the Securities), or (iii) paid or agreed to pay to any person
any compensation for soliciting another to purchase any other securities of the Issuer other than pursuant to this Agreement.

 

(f)          To
the knowledge of the Issuer, there are no affiliations with any FINRA member firm among the Issuer’s officers, directors
or any five percent (5%) or greater stockholder of the Issuer.

 

(g)          Source
shall be a third party beneficiary of any representations and warranties given to any investors in the Proposed Offering, which
representation and warranties shall be reasonably acceptable to Source.

 

11.          Source
reserves the right to reduce any item of its compensation or adjust the terms thereof as specified herein in the event that a determination
and/or suggestion shall be made by FINRA to the effect that Source’s aggregate compensation is in excess of FINRA rules or
that the terms thereof require adjustment; provided, however, the aggregate compensation otherwise to be paid to Source
by the Issuer may not be increased above the amounts stated herein without the approval of the Issuer.

 

12.          The
Issuer agrees that no solicitation material apart from, if applicable, the Registration Statement will be used by it in connection
with the Proposed Offering or filed with the Commission or any federal, state or local governmental or regulatory authority by
or on behalf of the Issuer without Source’s prior approval, which approval may not be unreasonably delayed, withheld or denied.

 

13.          The
Issuer agrees that it will not issue press releases or engage in any other publicity, without Source’s prior written consent,
commencing on the date hereof and continuing for a period of forty (40) days from the Closing of the Proposed Offering, other than
normal and customary releases issued in the ordinary course of the Issuer’s business. The Issuer covenants to adhere to all
“gun jumping” and “quiet period” rules and regulations of the Commission prior to, during and following
the filing of the Registration Statement, if applicable, and the consummation of the Proposed Offering.

 

	Members FINRA & SIPC	276 Post Road West, Westport, CT  06880	www.Sourcegrp.com

 

    	 

    	 

    

 

Page 6

 

14.         During
the Engagement Period or until the Closing, the Issuer agrees to cooperate with Source and to furnish, or cause to be furnished,
to Source, any and all information and data concerning the Issuer, its subsidiaries and the Proposed Offering that Source deems
appropriate, including, without limitation, the Issuer’s acquisition plans and plans for raising capital or additional financing
(the “Information”). The Issuer shall provide Source reasonable access during normal business hours from and
after the date of execution of this Agreement until the date of the Closing to all of the Issuer’s and its subsidiaries assets,
properties, books, contracts, commitments and records and to the Issuer’s and its subsidiaries officers, directors, employees,
appraisers, independent accountants, legal counsel and other consultants and advisors. The Issuer represents and warrants to Source
that all Information: (i) made available by the Issuer to Source or its agents and representatives, (ii) contained in any preliminary
or final Prospectus prepared by the Issuer in connection with the Proposed Offering, and (iii) contained in any filing by the Issuer
with any court or governmental regulatory agency, commission or instrumentality, will be complete and correct in all material respects
and will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements
therein not misleading in light of the circumstances under which such statements are made. The Issuer further represents and warrants
to Source that all such Information will have been prepared by the Issuer in good faith and will be based upon assumptions which,
in light of the circumstances under which they were made, are reasonable. The Issuer acknowledges and agrees that in rendering
its services hereunder, Source will be using and relying on such information (and information available from public sources and
other sources deemed reliable by Source) without independent verification thereof by Source or independent appraisal by Source
of any of the Issuer’s assets. The Issuer acknowledges and agrees that this engagement letter and the terms hereof are confidential
and will not be disclosed to anyone other than the officers and directors of the Issuer and the Issuer’s accountants, advisors
and legal counsel. Except as contemplated by the terms hereof or as required by applicable law, Source shall keep strictly confidential
all non-public Information concerning the Issuer provided to Source. No obligation of confidentiality shall apply to Information
that: (a) is in the public domain as of the date hereof or hereafter enters the public domain without a breach by Source, (b) was
known or became known by Source prior to the Issuer’s disclosure thereof to Source, (c) becomes known to Source from a source
other than the Issuer, and other than by the breach of an obligation of confidentiality owed to the Issuer, (d) is disclosed by
the Issuer to a third party without restrictions on its disclosure or (e) is independently developed by Source. Source’s
obligations of confidentiality hereunder shall extend to its employees.

 

15.         This
engagement letter shall be deemed to have been made and delivered in New York City and both this engagement letter and the transactions
contemplated hereby shall be governed as to validity, interpretation, construction, effect and in all other respects by the internal
laws of the State of New York, without regard to the conflict of laws principles thereof.

 

16.         Each
of Source and the Issuer: (i) agrees that any legal suit, action or proceeding arising out of or relating to this engagement letter
and/or the transactions contemplated hereby shall be instituted exclusively in New York Supreme Court, County of New York, or in
the United States District Court for the Southern District of New York, (ii) waives any objection which it may have or hereafter
to the venue of any such suit, action or proceeding, and (iii) irrevocably consents to the jurisdiction of the New York Supreme
Court, County of New York, and the United States District Court for the Southern District of New York in any such suit, action
or proceeding. Each of Source and the Issuer further agrees to accept and acknowledge service of any and all process which may
be served in any such suit, action or proceeding in the New York Supreme Court, County of New York, or in the United States District
Court for the Southern District of New York and agrees that service of process upon the Issuer mailed by certified mail to the
Issuer’s address shall be deemed in every respect effective service of process upon the Issuer, in any such suit, action
or proceeding, and service of process upon Source mailed by certified mail to Source’s address shall be deemed in every respect
effective service process upon Source, in any such suit, action or proceeding. Notwithstanding any provision of this engagement
letter to the contrary, the Issuer agrees that neither Source nor its affiliates, and the respective officers, directors, employees,
agents and representatives of Source, its affiliates and each other person, if any, controlling Source or any of its affiliates,
shall have any liability (whether direct or indirect, in contract or tort or otherwise) to the Issuer for or in connection with
the engagement and transaction described herein except for any such liability for losses, claims, damages or liabilities incurred
by us that are finally judicially determined to have resulted from the bad faith or gross negligence of such individuals or entities.
Source will act under this engagement letter as an independent contractor with duties to the Issuer. Because Source will be acting
on the Issuer’s behalf in this capacity, it is Source’s practice to receive indemnification. A copy of Source’s
standard indemnification form is attached to this engagement letter as Exhibit A.

 

[Signature Page Follows]

  

	Members FINRA & SIPC	276 Post Road West, Westport, CT  06880	www.Sourcegrp.com

 

    	 

    	 

    

 

Page 7

 

We are delighted at
the prospect of working with you and look forward to a successful Proposed Offering. If you are in agreement with the foregoing,
please execute and return two copies of this engagement letter to the undersigned. This engagement letter may be executed in counterparts
and by facsimile transmission.

 

	 	Regards,	 
	 	 	 
	 	SOURCE CAPITAL GROUP, INC.	 
	 	 	 
	 	By:  	 	 
	 	 	Richard H. Kreger	 
	 	 	Senior Managing Director	 
	 	 	 
	 	By:  	 	 
	 	 	Russ Newton	 
	 	 	Chief Financial Officer	 

 

ACCEPTED AND AGREED TO AS OF THE DATE FIRSTABOVE
WRITTEN:

 

Chanticleer Holdings, Inc.

 

	By: 	 	 
	 	Michael Pruitt 	 
	 	Chief Executive Officer	 

 

[Signature Page to Engagement Letter]

 

[Exhibit A, Indemnification Letter Begins
on Next Page]

 

[Exhibit B, Regarding Rights Offerings follows
Exhibit A]

 

	Members FINRA & SIPC	276 Post Road West, Westport, CT  06880	www.Sourcegrp.com

 

    	 

    	 

    

 

Page 8

 

This Exhibit A is a part of and
is incorporated into the Proposed Offering Engagement Letter dated February 11, 2015 between the Issuer and Source Capital Group,
Inc. ("Source"). Capitalized terms used herein and not otherwise defined shall have the respective meanings provided
in the Agreement.

 

The Issuer agrees to indemnify and hold
harmless Source, its affiliates and each person controlling Source (within the meaning of Section 15 of the Securities Act),
and the directors, officers, agents and employees of Source, its affiliates and each such controlling person (Source, and each
such entity or person. an "Indemnified Person") from and against any losses, claims, damages, judgments, assessments,
costs and other liabilities (collectively, the "Liabilities"), and shall reimburse each Indemnified Person for all fees
and expenses (including the reasonable fees and expenses of one counsel for all Indemnified Persons, except as otherwise expressly
provided herein) (collectively, the "Expenses") as they are incurred by an Indemnified Person in investigating, preparing,
pursuing or defending any claim, action, proceeding or investigation, whether or not any Indemnified Person is a party thereto
(collectively, the "Actions"), (i) caused by, or arising out of or in connection with, any untrue statement or alleged
untrue statement of a material fact contained in any offering documents prepared by the Issuer (including any amendments thereof
and supplements thereto) (the "Offer Documents") or by any omission or alleged omission to state therein a material fact
necessary to make the statements therein, in light of the circumstances under which they were made, not misleading (other than
untrue statements or alleged untrue statements in, or omissions or alleged omissions from, information relating to an Indemnified
Person furnished in writing by or on behalf of such Indemnified Person expressly for use in the Offer Documents) or (ii) otherwise
arising out of or in connection with advice or services rendered or to be rendered by any Indemnified Person pursuant to the Agreement,
the transactions contemplated thereby or any Indemnified Person's actions or inactions in connection with any such advice, services
or transactions; provided, however, that, in the case of clause (ii) only, the Issuer shall not be responsible for any Liabilities
or Expenses of any Indemnified Person that have resulted primarily from such Indemnified Person's (x) gross negligence, bad faith
or willful misconduct in connection with any of the advice, actions, inactions or services referred to above or (y) use of any
offering materials or information concerning the Issuer in connection with the offer or sale of the Securities in the Transaction
which were not authorized for such use by the Issuer and which use constitutes negligence, bad faith or willful misconduct. The
Issuer also agrees to reimburse each Indemnified Person for all Expenses as they are incurred in connection with enforcing such
Indemnified Person's rights under the Agreement, which includes this Exhibit A.

 

Upon receipt by an Indemnified Person of
actual notice of an Action against such Indemnified Person with respect to which indemnity may be sought under the Agreement, such
Indemnified Person shall promptly notify the Issuer in writing; provided that failure by any Indemnified Person so to notify the
Issuer shall not relieve the Issuer from any liability which the Issuer may have on account of this indemnity or otherwise to such
Indemnified Person, except to the extent the Issuer shall have been prejudiced by such failure. The Issuer shall, if requested
by Source, assume the defense of any such Action including the employment of counsel reasonably satisfactory to Source, which counsel
may also be counsel to the Issuer. Any Indemnified Person shall have the right to employ separate counsel in any such action and
participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified Person
unless: (i) the Issuer has failed promptly to assume the defense and employ counsel or (ii) the named parties to any such Action
(including any impeded parties) include such Indemnified Person and the Issuer, and such Indemnified Person shall have been advised
in the reasonable opinion of counsel that there is an actual conflict of interest that prevents the counsel selected by the Issuer
from representing both the Issuer (or another client of such counsel) and any Indemnified Person; provided that the Issuer shall
not in such event be responsible hereunder for the fees and expenses of more than one firm of separate counsel for all Indemnified
Persons in connection with any Action or related Actions, in addition to any local counsel. The Issuer shall not be liable for
any settlement of any Action effected without its written consent (which shall not be unreasonably withheld). In addition, the
Issuer shall not, without the prior written consent of Source (which shall not be unreasonably withheld), settle, compromise or
consent to the entry of any judgment in or otherwise seek to terminate any pending or threatened Action in respect of which indemnification
or contribution may be sought hereunder (whether or not such Indemnified Person is a party thereto) unless such settlement, compromise,
consent or termination includes an unconditional release of each Indemnified Person from all Liabilities arising out of such Action
for which indemnification or contribution may be sought hereunder. The indemnification required hereby shall be made by periodic
payments of the amount thereof during the course of the investigation or defense, as such expense, loss, damage or liability is
incurred and is due and payable.

 

	Members FINRA & SIPC	276 Post Road West, Westport, CT  06880	www.Sourcegrp.com

 

    	 

    	 

    

 

Page 9

 

In the event that the foregoing indemnity
is unavailable to an Indemnified Person other than in accordance with the Agreement, the Issuer shall contribute to the Liabilities
and Expenses paid or payable by such Indemnified Person in such proportion as is appropriate to reflect (i) the relative benefits
to the Issuer, on the one hand, and to Source and any other Indemnified Person, on the other hand, of the matters contemplated
by the Agreement or (ii) if the allocation provided by the immediately preceding clause is not permitted by applicable law, not
only such relative benefits but also the relative fault of the Issuer, on the one hand, and Source and any other Indemnified Person,
on the other hand, in connection with the matters as to which such Liabilities or Expenses relate, as well as any other relevant
equitable considerations; provided that in no event shall the Issuer contribute less than the amount necessary to ensure that all
Indemnified Persons, in the aggregate, are not liable for any Liabilities and Expenses in excess of the amount of fees actually
received by Source pursuant to the Agreement. For purposes of this paragraph, the relative benefits to the Issuer, on the one hand,
and to Source on the other hand, of the matters contemplated by the Agreement shall be deemed to be in the same proportion as (a)
the total value paid or contemplated to be paid to or received or contemplated to be received by the Issuer in the transaction
or transactions that are within the scope of the Agreement, whether or not any such transaction is consummated, bears to (b) the
fees paid to Source under the Agreement. Notwithstanding the above, no person guilty of fraudulent misrepresentation within the
meaning of Section 11(f) of the Securities Act of 1933, as amended, shall be entitled to contribution from a party who was not
guilty of fraudulent misrepresentation.

 

The Issuer also agrees that no Indemnified
Person shall have any liability (whether direct or indirect, in contract or tort or otherwise) to the Issuer for or in connection
with advice or services rendered or to be rendered by any Indemnified Person pursuant to the Agreement, the transactions contemplated
thereby or any Indemnified Person's actions or inactions in connection with any such advice, services or transactions except for
Liabilities (and related Expenses) of the Issuer that have resulted primarily from such Indemnified Person's gross negligence,
bad faith or willful misconduct in connection with any such advice, actions, inactions or services.

 

The reimbursement, indemnity and contribution
obligations of the Issuer set forth herein shall apply to any modification of the Agreement and shall remain in full force and
effect regardless of any termination of, or the completion of any Indemnified Person's services under or in connection with, the
Agreement.

 

ACCEPTED AND AGREED TO AS OF THE DATE FIRSTABOVE
WRITTEN:

 

	Chanticleer Holdings, Inc.	 	Source Capital Group, Inc.
	 	 	 
	By:	 	 	By:	 
	 	Michael Pruitt	 	 	Russ Newton
	 	Chief Executive Officer	 	 	Chief Financial Officer

 

	Members FINRA & SIPC	276 Post Road West, Westport, CT  06880	www.Sourcegrp.com

 

    	 

    	 

    

 

Page 10

 

Exhibit B

Regarding Rights Offerings

 

Source agrees that,
in connection with any Rights Offering if undertaken by the Issuer, it will advise and assist the Issuer in soliciting the exercise
of the Rights held by holders of the Common Stock and/or other Securities (“Rightholders”). In addition, Source
will: (i) advise on pricing, structuring and other terms and conditions of the Rights Offering, including transferability, tradability
and oversubscription rights and limits, (ii) provide guidance on general market conditions and their impact on the Rights Offering,
and (iii) assist the Issuer in drafting a presentation that may be used to market the Rights Offering to existing and potential
investors, describing the proposed capital raising, the Issuer’s history and performance to date, track records of key executives,
highlights of the Issuer’s business plan and the intended use of proceeds from the Rights Offering, (iv) advise on the selection
of the Information Agent and Subscription Agent and Escrow Agent (v) assist the Issuer with its understanding of state blue sky
laws and retaining of Issuer counsel to assist with the blue sky filings related to the Rights Offering and/or Backstop Commitment
and/or Additional Placement. The Rights Offering shall consist of the issuance and distribution by the Issuer of Rights to purchase
up to but may exceed $14,000,000 worth of Securities and/or Common Stock (the shares of Common Stock underlying the Rights to be
sold in the Rights Offering are hereinafter referred to as the “Shares”). It is expected that the Rights will
be made available to all of the Issuer’s stockholders and/or Security-holders (i.e. Warrant-holders, Note-holders, Debenture-holders
and Preferred-stock holders) on the basis of their proportional ownership as of a date to be determined. The actual proportion
will be determined by the Issuer in consultation with Source prior to commencement of the Rights Offering. These Rights will entitle
the Issuer’s stockholders to purchase the Shares at a price to be established by the Issuer in consultation with Source.
Source will act as sole dealer-manager of the Rights Offering, subject to, among other things, completion of Source’s deal
team and Source’s counsel’s due diligence examination of the Issuer and its affiliates and the execution of a definitive
dealer-manager agreement between the Issuer and Source in connection with the Rights Offering (the “Dealer-Manager Agreement”).
The Dealer-Manager Agreement will be in the form satisfactory to the Issuer and Source and will include customary representations
of the Issuer, indemnification provisions and other terms and conditions customarily found in such agreements for Rights Offerings.
The Issuer and Source hereby agree that Source: (i) will not underwrite the Rights Offering, (ii) has no obligation to act, and
will not act, in any capacity as an underwriter in connection with the Rights Offering, and (iii) has no obligation to purchase
or procure purchases of the Rights or Shares, other than as may be subsequently agreed in a written underwriting agreement between
the Issuer and Source with respect to any underwritten public Rights Offering of the Common Stock following the Rights Offering.
The Issuer agrees that it will not hold Source liable or responsible for the failure of the Rights Offering in the event that the
Rights Offering is not consummated, either in whole or in part, for any reason. The terms and conditions of the Rights Offering,
including the precise number of Rights (and different series of Rights) to be offered by the Issuer, the number of Shares and/or
Securities that may be purchased with each series of Right, the subscription price per Share, and any transferability, tradability
and oversubscription rights and limits shall be the subject of continuing discussions between the Issuer and Source and will be
based on market and general economic conditions, the prospects and/or forecasts of the Issuer and other factors. The Issuer shall,
as soon as practicable following the date hereof, prepare and file with the Securities and Exchange Commission (the “Commission”)
and the appropriate state securities authorities, a Registration Statement on Form S-1 or S-3 or such other appropriate form (the
“Registration Statement”) under the Securities Act of 1933, as amended (the “Act”), and a
prospectus included therein (the “Prospectus”) covering the Rights and the Shares. The Registration Statement
(including the Prospectus therein), and all amendments and supplements thereto, will be in form satisfactory to Source and counsel
to Source and will contain audited financial statements and interim and other financial statements and schedules as may be required
by the Act and rules and regulations of the Commission thereunder. Source and its counsel shall be given the opportunity to make
such review and investigation in connection with, and provide comments on a draft by draft basis to, the Registration Statement
as they deem reasonably necessary. Concurrently with or as soon as practicable after the filing of the Registration Statement with
the Commission, the Issuer shall make all necessary state “blue sky” securities law filings with respect to the Shares.
At such time as the Issuer and Source are mutually satisfied that it is appropriate to commence the Proposed Offering, the final
terms of the Dealer-Manager Agreement will be negotiated and the Issuer and Source will request the Commission to declare the Registration
Statement effective.

 

	Members FINRA & SIPC	276 Post Road West, Westport, CT  06880	www.Sourcegrp.com

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