Document:

Exhibit 10.3

 

NORTHWEST
BIOTHERAPEUTICS, INC.

 

PLACEMENT AGENCY AGREEMENT

 

July 4, 2016

 

Chardan Capital Markets, LLC

150 East 58th Street, 28th Fl

New York, NY 10155

 

  

Ladies and Gentlemen:

 

Northwest Biotherapeutics,
Inc., a Delaware Corporation (the “Company”), proposes, subject to the terms and conditions herein, to issue
and sell up to an aggregate of 7,400,000 shares (the “Shares”) of Common Stock of the Company, par value $0.001
per share (the “Common Stock”), warrants to purchase up to an aggregate of 3,700,000 shares of Common Stock
(the “Warrants”), and up to an aggregate of 3,700,000 shares of Common Stock issuable from time to time upon
exercise of the Warrants (the “Warrant Shares”) to certain investors (each an “Investor”
and, collectively, the “Investors”), in an offering under its registration statement on Form S-3 (File No. 333-207976)
utilizing a shelf registration process and Form S-3 MEF (Registration File No. 333-209895). We are offering one Share together
with one-half of one Warrant (the Shares and the Warrants, together, the “Securities”) with each whole Warrant
exercisable for one Warrant Share. The Securities are more fully described in the Prospectus (as defined below). The Company desires
to engage Chardan Capital Markets, LLC (“Chardan”) in connection with such issuance and sale of the Securities.

 

The Company hereby
confirms its agreement with you as follows:

 

1.             Agreement to Act as Placement Agent.

 

(a)               
On the basis of the representations, warranties and agreements of the Company herein contained, and subject to all
the terms and conditions of this Placement Agency Agreement (this “Agreement”) between the Company and you,
Chardan shall be the Company’s exclusive placement agent (in such capacity, the “Placement Agent”), on
a best efforts basis, in connection with the issuance and sale by the Company of the Securities to the Investors in a proposed
offering under securities purchase agreements in the form included as Exhibit A hereto (the “Purchase Agreements”)
on the terms described on Exhibit B hereto, with the terms of the offering to be subject to market conditions and negotiations
between the Company, the Placement Agent and the prospective Investors (such offering shall be referred to herein as the “Offering”).  As
compensation for services rendered, and provided that any of the Securities are sold to Investors in the Offering, on the Closing
Date (as defined below) of the Offering, the Company shall pay to the Placement Agent an amount in cash equal to 8.0% of the gross
proceeds received by the Company from the sale of the Securities to all Investors (the “Placement Fee”).  The
Company shall have the sole right to accept offers to purchase the Securities and may reject any such offer in whole or in part.  Notwithstanding
the foregoing, it is understood and agreed that the Placement Agent or any of its affiliates may, solely at their discretion and
without any obligation to do so, purchase Securities as a principal; provided, however, that any such purchases by the Placement
Agent (or its affiliates) shall be fully disclosed to the Company and approved by the Company in accordance with the previous sentence.

 

(b)              
This Agreement shall not give rise to any commitment by the Placement Agent to purchase any of the Securities, and
the Placement Agent shall have no authority to bind the Company.  The Placement Agent shall act on a reasonable best
efforts basis and does not guarantee that it will be able to raise new capital in the Offering.  The Placement Agent
may retain other brokers or dealers to act as sub-agents on its behalf in connection with the Offering, the fees of which shall
be paid out of the Placement Fee

 

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(c)               
The Company acknowledges and agrees that the Placement Agent shall act as an independent contractor, and not as a
fiduciary, and any duties of the Placement Agent with respect to investment banking services to the Company, including the offering
of the Securities contemplated hereby (including in connection with determining the terms of the Offering), shall be contractual
in nature, as expressly set forth herein, and shall be owed solely to the Company.  Each party disclaims any intention
to impose any fiduciary or similar duty on the other. Additionally, the Placement Agent has not advised, nor is it advising, the
Company or any other person as to any legal, tax, investment, accounting or regulatory matters in any jurisdiction with respect
to the transactions contemplated hereby.  The Company shall consult with its own advisors concerning such matters and
shall be responsible for making its own independent investigation and appraisal of the transactions contemplated hereby, and the
Placement Agent shall have no responsibility or liability to the Company with respect thereto.  Any review by the Placement
Agent of the Company, the transactions contemplated hereby or other matters relating to such transactions has been and will be
performed solely for the benefit of the Placement Agent and has not been and shall not be on behalf of the Company or any other
person.  It is understood that the Placement Agent has not and will not be rendering an opinion to the Company as to
the fairness of the terms of the Offering. Notwithstanding anything in this Agreement to the contrary, the Company acknowledges
that the Placement Agent may have financial interests in the success of the Offering contemplated hereby that are not limited to
the Placement Fee.  The Company hereby waives and releases, to the fullest extent permitted by law, any claims that the
Company may have against the Placement Agent with respect to any breach or alleged breach of fiduciary duty.

 

(d)              
Payment of the purchase price for, and delivery of, the Securities shall be made at a closing (the “Closing”)
at the offices of Pryor Cashman, LLP, counsel for the Placement Agent, located at 7 Times Square, New York, New York, at 10:00
a.m., local time, as soon as practicable after the determination of the public offering price of the Securities, but not later
than July 31, 2016 except as otherwise agreed upon by the Company and the Placement Agent (such date of payment and delivery being
herein called the “Closing Date”).  All such actions taken at the Closing shall be deemed to have
occurred simultaneously.  No Securities which the Company has agreed to sell pursuant to this Agreement and the Purchase
Agreements shall be deemed to have been purchased and paid for, or sold by the Company, until such Securities shall have been delivered
to the Investor thereof against payment therefore by such Investor.  If the Company shall default in its obligations
to deliver Securities to an Investor whose offer it has accepted, the Company shall indemnify and hold the Placement Agent harmless
against any loss, claim or damage incurred by the Placement Agent arising from or as a result of such default by the Company.

 

(e)               
On the Closing Date, (i) the Investors will wire the purchase price for their respective Securities to the Company
pursuant to the terms of the Purchase Agreements and the Company will wire the amount owed to the Placement Agent as provided in
this Agreement and (ii) the Company shall deliver, or cause to be delivered, the Securities to the Investors, with the delivery
of the Shares to be made, if possible, through the facilities of The Depository Trust Company’s DWAC system, and the delivery
of the Warrants to be made by mail to the Investors to the addresses set forth on the applicable Purchase Agreement.

 

(f)               
The Securities shall be registered in such names and in such denominations as the Placement Agent shall request by
written notice to the Company.

 

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2.            
Representations, Warranties and Agreements of the Company.

 

Except as set forth
in the SEC Reports, including the Prospectus and the Prospectus Supplement, and the Disclosure Schedules, which SEC Reports and
Disclosure Schedules shall be deemed a part hereof and shall qualify any representation or otherwise made herein to the extent
of the disclosure contained in the corresponding section of the SEC Reports and the Disclosure Schedules, the Company hereby represents,
warrants and covenants to the Placement Agent as of the date hereof, and as of the Closing Date of the Offering, as follows:

 

(a)               
Registration Statement.

 

(i)                
The Company has prepared and filed with the Securities and Exchange Commission (the “Commission”)
a registration statement on Form S-3 (File No. 333-207976) utilizing a shelf registration process and Form S-3 MEF (Registration
File No. 333-209895) under the Securities Act of 1933, as amended, and the rules and regulations of the Commission thereunder (collectively,
the “Securities Act”), and such amendments to such registration statement as may have been required to the date
of this Agreement. Such registration statement has been declared effective by the Commission. Each part of such registration statement,
at any given time, including amendments thereto at such time, the exhibits and any schedules thereto at such time, the documents
incorporated by reference therein pursuant to Item 12 of Form S-3 under the Securities Act at such time and the documents and information
otherwise deemed to be a part thereof or included therein by Rule 430A, 430B or 430C under the Securities Act or otherwise pursuant
to the Securities Act at such time, is herein called the “Registration Statement.” Any registration statement filed
by the Company pursuant to Rule 462(b) under the Securities Act is called the “Rule 462(b) Registration Statement”
and, from and after the date and time of filing of the Rule 462(b) Registration Statement, the term “Registration Statement”
shall include the Rule 462(b) Registration Statement. The Company and the transactions contemplated by this Agreement meet the
requirements and comply with the conditions for the use of Form S-3 under the Securities Act.

 

(ii)              
No stop order preventing or suspending use of the Registration Statement or the Prospectus or the effectiveness of
the Registration Statement, has been issued by the Commission, and no proceedings for such purpose have been instituted or, to
the Company’s knowledge, are contemplated or threatened by the Commission.

 

(iii)            
The Company proposes to file with the Commission pursuant to Rule 424 under the Securities Act a final prospectus
supplement relating to the Securities to the form of prospectus included in the Registration Statement relating to the Securities
in the form heretofore delivered to the Placement Agent.  Such prospectus included in the Registration Statement at the
time it was declared effective by the Commission or in the form in which it has been most recently filed with the Commission on
or prior to the date of this Agreement is hereinafter called the “Base Prospectus.”  Such prospectus
supplement, in the form in which it shall be filed with the Commission pursuant to Rule 424(b) (including the Base Prospectus as
so supplemented) is hereinafter called the “Prospectus.”  Any reference herein to the Base Prospectus
or  the Prospectus or to any amendment or supplement to any of the foregoing shall be deemed to include any documents
incorporated by reference therein pursuant to Item 12 of Form S-3 under the Securities Act as of the date of such prospectus, and,
in the case of any reference herein to the Prospectus, also shall be deemed to include any documents incorporated by reference
therein, and any supplements or amendments thereto, filed with the Commission after the date of filing of the Prospectus under
Rule 424(b) under the Securities Act, and prior to the termination of the offering of the Securities by the Placement Agent.

 

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(iv)            
For purposes of this Agreement, all references to the Registration Statement, the Base Prospectus, the Prospectus
or any amendment or supplement to any of the foregoing shall be deemed to include the copy filed with the Commission pursuant to
its Electronic Data Gathering, Analysis and Retrieval System (“EDGAR”).  All references in this Agreement
to amendments or supplements to the Registration Statement, the Base Prospectus or the Prospectus shall be deemed to mean and include
the subsequent filing of any document under the Securities Exchange Act of 1934, as amended (collectively with the rules and regulations
promulgated thereunder, the “Exchange Act”) and which is deemed to be incorporated therein by reference therein
or otherwise deemed to be a part thereof.

 

(b)              
 Compliance with Registration Requirements.  At the time the Registration Statement or any post-effective
amendment thereto became effective (including each deemed effective date with respect to the Placement Agent pursuant to Rule 430B
under the Securities Act), the Registration Statement complied and will comply, in all material respects, with the requirements
of the Securities Act and did not and will not contain any untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein not misleading. The Prospectus, at the time of filing
or the time of first use and as of the Closing Date, complied and will comply, in all material respects, with the requirements
of the Securities Act and did not and will not contain an untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.

  

(c)               
Not an Ineligible Issuer.  (1) At the time of filing the Registration Statement and (2) at the date
hereof and at the Closing Date, the Company was not, is not and will not be an “ineligible issuer,” as defined in Rule
405 under the Securities Act, without taking account of any determination by the Commission pursuant to Rule 405 that it is not
necessary that the Company be considered an ineligible issuer including, without limitation, for purposes of Rules 164 and 433
under the Securities Act with respect to the offering of the Securities as contemplated by the Registration Statement.

 

(d)              
Incorporated Documents.  The documents incorporated by reference in the Prospectus, when they became
effective or were filed with the Commission, as the case may be, conformed in all material respects to the requirements of the
Securities Act or the Exchange Act, as applicable, and were filed on a timely basis with the Commission and none of such documents
contained an untrue statement of a material fact or omitted to state a material fact necessary to make the statements therein,
in the light of the circumstances under which they were made, not misleading.

 

(e)               
Due Incorporation.  The Company has been duly incorporated and is validly existing as a corporation
in good standing under the laws of Delaware, with the corporate power and authority to own its properties and to conduct its business
as currently being carried on and as described in the Registration Statement, the Disclosure Package and the Prospectus.  Each
of the subsidiaries of the Company (the “Subsidiaries”) has been duly organized and is validly existing as a
corporation in good standing under the laws of the jurisdiction of its incorporation, with corporate power and authority to own
or lease its properties and conduct its business as described in the Prospectus and the Disclosure Package.  The Company
and each Subsidiary is duly qualified to transact business as a foreign corporation and is in good standing under the laws of each
other jurisdiction in which its ownership or leasing of property or the conduct of its business requires such qualification, except
where the failure to be so qualified and in good standing would not, individually or in the aggregate, result in any material adverse
effect upon, or material adverse change in, the general affairs, business, prospects, operations, properties, financial condition,
or results of operations of the Company and the Subsidiaries taken as a whole (a “Material Adverse Effect”).

 

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(f)               
Capitalization.  The Company has duly and validly authorized capital stock as set forth in each
of the Registration Statement, the Disclosure Package and the Prospectus; all outstanding Common Stock of the Company conform,
or when issued will conform, to the description thereof in the Registration Statement, the Disclosure Package and the Prospectus
and have been, or, when issued and paid for in the manner described herein will be, duly authorized, validly issued, fully paid
and non-assessable; and except as disclosed in the Registration Statement, the Disclosure Package and the Prospectus, the issuance
of the Securities, including, without limitation, issuance of the Warrant Shares upon exercise, to be purchased from the Company
hereunder is not subject to preemptive or other similar rights, or any restriction upon the voting or transfer thereof pursuant
to applicable law or the Company’s Certificate of Incorporation or governing documents or any agreement to which the Company
is a party or by which it may be bound.

 

(g)               
Authorization, Issuance.  All corporate action required to be taken by the Company for the authorization,
issuance and sale of the Securities has, or will have, been duly and validly taken prior to the Closing Date.  The Shares
and the Warrant Shares have, or will have, been duly and validly authorized prior to the Closing Date. When the Shares and the
Warrant Shares have been issued and delivered against payment therefor as provided herein and in the Warrant, as the case may be,
the Shares, when so issued and sold, and the Warrant Shares, when issued upon exercise of the Warrants, will be duly and validly
issued, fully paid and non-assessable and the Investors or other persons in whose names Shares or Warrant Shares are registered
will acquire good and valid title to such Shares or Warrant Shares, in each case, free and clear of all liens, encumbrances, equities,
preemptive rights and other claims. The Shares and the Warrant Shares will conform in all material respects to the description
thereof contained in the Registration Statement, the Disclosure Package and the Prospectus.  No further approval or authority
of the stockholders or the Board of Directors of the Company will be required for the issuance and sale of the Shares, the Warrants
or the Warrant Shares as contemplated herein and in the Purchase Agreements.  The Warrants conform, or when issued will
conform, to the description thereof contained in the Disclosure Package and the Prospectus and have been duly and validly authorized
by the Company and upon delivery to the Investors at the Closing Date will be valid and binding obligations of the Company, enforceable
in accordance with their terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium
or similar laws affecting the rights and remedies of creditors generally or subject to general principles of equity.  Except
as disclosed in each of the Disclosure Package and Prospectus, or incorporated by reference therein, there are no outstanding subscriptions,
rights, warrants, options, calls, convertible securities, commitments of sale or rights related to or entitling any person to purchase
or otherwise to acquire any shares of, or any security convertible into or exchangeable or exercisable for, the capital stock of,
or other ownership interest in, the Company, except for such options or rights as may have been granted by the Company to employees,
directors or consultants pursuant to its stock option or stock purchase plans.

 

(h)              
No Registration Rights.  Neither the filing of the Registration Statement nor the offering or sale
of the Securities as contemplated by this Agreement gives rise to any rights, other than those which have been waived or satisfied,
for or relating to the registration of any Common Stock or other securities of the Company.

 

(i)                
Due Authorization and Enforceability. This Agreement and each Purchase Agreement has been, or will have been,
duly authorized, executed and delivered by the Company prior to the Closing Date, and will constitute a valid, legal and binding
obligation of the Company, enforceable against the Company in accordance with its terms, except as rights to indemnity hereunder
may be limited by federal or state securities laws and except as such enforceability may be limited by applicable bankruptcy, insolvency,
reorganization or similar laws affecting the rights of creditors generally and subject to general principles of equity.

 

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(j)                
No Violation.  Neither the Company nor any of the Subsidiaries is in breach or violation of or in
default (nor has any event occurred which with notice, lapse of time or both would result in any breach or violation of, or constitute
a default) (i) under the provisions of its Certificate of Incorporation or governing documents or (ii) in the performance or observance
of any term, covenant, obligation, agreement or condition contained in any indenture, mortgage, deed of trust, bank loan or credit
agreement or other evidence of indebtedness, or any license, lease, contract or other agreement or instrument to which the Company
or any of the Subsidiaries is a party or by which any of them or any of their properties may be bound or affected, or (iii) in
the performance or observance of any statute, law, rule, regulation, ordinance, judgment, order or decree of any court, regulatory
body, administrative agency, governmental body, arbitrator or other authority having jurisdiction over the Company, the Subsidiaries
or any of their respective properties (including, without limitation, those administered by the Environmental Protection Agency
(the “EPA”) or by any foreign, federal, state or local regulatory authority performing functions similar to
those performed by the EPA), except, with respect to clauses (ii) and (iii) above, to the extent any such contravention would not
result in a Material Adverse Effect.  Except as set forth in the Registration Statement, the Disclosure Package and the
Prospectus, the Company is not in violation of any of the rules, regulations or requirements of the Nasdaq Capital Market (“Nasdaq”)
and has no knowledge of any facts or circumstances that would reasonably lead to delisting or suspension of the Common Stock by
Nasdaq in the foreseeable future.

 

(k)              
No Conflict.  Except as set forth in the Registration Statement, the Disclosure Package and the
Prospectus, the execution, delivery and performance by the Company of this Agreement, each Purchase Agreement and the consummation
of the transactions herein contemplated, including the issuance and sale by the Company of the Securities, will not conflict with
or result in a breach or violation of, or constitute a default under (nor constitute any event which with notice, lapse of time
or both would result in any breach or violation of or constitute a default under) (i) the provisions of the Certificate of Incorporation
or governing documents of the Company or any of the Subsidiaries, (ii) any material indenture, mortgage, deed of trust, bank loan
or credit agreement or other evidence of indebtedness, or any material license, lease, contract (including, without limitation,
any engagement agreement or arrangement with any other broker-dealer) or other agreement or instrument to which the Company or
any of the Subsidiaries is a party or by which any of them or any of their respective properties may be bound or affected, or (iii)
any federal, state, local or foreign law, regulation or rule or any decree, judgment or order applicable to the Company or any
of the Subsidiaries, except, with respect to clauses (ii) and (iii) above, to the extent any such contravention would not result
in a Material Adverse Effect.

 

(l)                
No Consents Required.  No approval, authorization, consent or order of or filing with any federal,
state, local or foreign governmental or regulatory commission, board, body, authority or agency, or with any self-regulatory organization
or other non-governmental regulatory authority (including, without limitation, Nasdaq or approval of the stockholders of the Company
(including as may be required pursuant to the rules and regulations of Nasdaq)), is required in connection with the issuance and
sale of the Securities or the consummation by the Company of the transactions contemplated hereby other than (i) as may be required
under the Securities Act, (ii) under the rules and regulations of the Financial Industry Regulatory Authority (“FINRA”)
and (iii) as may be required by Nasdaq.  The Company has full power and authority to enter into this Agreement and each
Purchase Agreement and to authorize, issue and sell the Securities as contemplated by this Agreement and each Purchase Agreement.

 

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(m)            
Absence of Material Changes. Subsequent to the respective dates as of which information is given in the Disclosure
Package, (a) neither the Company nor any of its subsidiaries has incurred any material liability or obligation, direct or contingent,
or entered into any material transaction not in the ordinary course of business; (b) neither the Company nor any of its subsidiaries
has purchased any of the Company’s outstanding capital stock, or declared, paid or otherwise made any dividend or distribution
of any kind on the Company’s capital stock; (c) there has not been any change in the capital stock (other than a change in
the number of shares of outstanding Common Stock due to the issuance of such Common Stock upon the exercise of outstanding options
or warrants or pursuant to the terms of employment agreements outstanding prior to the date of the Disclosure Package), or material
change in the short−term debt or long−term debt of the Company and its Subsidiaries or any issue of options, warrants,
convertible securities or other rights to purchase the capital stock (other than grants of stock options under the Company’s
stock option plans existing on the date hereof) of the Company, or (d) there has not been any Material Adverse Effect from that
set forth in the Disclosure Package (exclusive of any amendments or supplements thereto subsequent to the date of this Agreement).

 

(n)              
Permits.  The Company and each of the Subsidiaries possess all necessary licenses, authorizations,
consents and approvals and have made all necessary filings required under any federal, state, local or foreign law, regulation
or rule (including, without limitation, those from the EPA and any other foreign, federal, state or local government or regulatory
authorities performing functions similar to those performed by the EPA) in order to conduct its business.  Neither the
Company nor any of the Subsidiaries is in violation of, or in default under, or has received notice of any proceedings relating
to revocation or modification of, any such license, authorization, consent or approval.  The Company and each of the
Subsidiaries is in compliance in all material respects with all applicable federal, state, local and foreign laws, regulations,
orders or decrees.

 

(o)              
Legal Proceedings. There are no legal or governmental proceedings pending or, to the Company’s knowledge,
threatened or contemplated to which the Company or any of the Subsidiaries is or would be a party or of which any of their respective
properties is or would be subject at law or in equity, before or by any federal, state, local or foreign governmental or regulatory
commission, board, body, authority or agency, or before or by any self-regulatory organization or other non-governmental regulatory
authority (including, without limitation, FINRA and Nasdaq), except (i) as described in the Registration Statement, the Disclosure
Package and the Prospectus, (ii) any such proceeding, which if resolved adversely to the Company or any Subsidiary, would not result
in a judgment, decree or order having, individually or in the aggregate, a Material Adverse Effect or (iii) any such proceeding
that would not prevent or materially and adversely affect the ability of the Company to consummate the transactions contemplated
hereby.  

 

(p)              
Statutes; Contracts.  There are no statutes or regulations applicable to the Company or contracts
or other documents of the Company which are required to be described in the Registration Statement, the Disclosure Package or the
Prospectus or filed as exhibits to the Registration Statement by the Securities Act which have not been so described or filed.

 

(q)              
Independent Accountants.  Marcum LLP, who has audited the financial statements of the Company and
the Subsidiaries for certain periods, is an independent registered public accounting firm (as defined in Section 2(a)(12) of the
Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”)) with respect to the Company within the meaning of the
Securities Act and the applicable rules and regulations thereunder adopted by the Commission and the Public Company Accounting
Oversight Board (United States).

 

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(r)                
Financial Statements.  The financial statements of the Company, together with the related schedules
and notes thereto, set forth or incorporated by reference in the Registration Statement, the Disclosure Package and the Prospectus
comply in all material respects with the applicable requirements of the Securities Act and the Exchange Act, as applicable, and
present fairly in all material respects (i) the financial condition of the Company and the Subsidiaries, taken as a whole, as of
the dates indicated and (ii) the consolidated results of operations, stockholders’ equity and changes in cash flows of the
Company and the Subsidiaries, taken as a whole, for the periods therein specified; and such financial statements and related schedules
and notes thereto have been prepared in conformity with generally accepted accounting principles as in effect in the United States,
consistently applied throughout the periods involved (except as otherwise stated therein and subject, in the case of unaudited
financial statements, to the absence of footnotes and normal year-end adjustments).  There are no other financial statements
(historical or pro forma) that are required to be included in the Registration Statement, the Disclosure Package and the Prospectus;
and the Company and the Subsidiaries do not have any material liabilities or obligations, direct or contingent (including any off-balance
sheet obligations), not disclosed in the Registration Statement, the Disclosure Package and the Prospectus; and all disclosures
contained in the Registration Statement, the Disclosure Package and the Prospectus regarding “non-GAAP financial measures”
(as such term is defined by the rules and regulations of the Commission), if any, comply with Regulation G of the Exchange Act
and Item 10(e) of Regulation S-K of the Commission, to the extent applicable, and present fairly the information shown therein
and the Company’s basis for using such measures.

 

(s)               
Not an Investment Company.  Neither the Company nor any of the Subsidiaries is or, after giving
effect to the offering and sale of the Securities and the application of the proceeds thereof as described in the Prospectus, will
be required to register as an “investment company” as defined in the Investment Company Act of 1940, as amended.

 

(t)                
Good Title to Property.  The Company and each of the Subsidiaries has good and valid title to all
property (whether real or personal) described in the Registration Statement, the Disclosure Package and the Prospectus as being
owned by each of them, in each case free and clear of all liens, claims, security interests, other encumbrances or defects except
such as are described in the Registration Statement, the Disclosure Package and the Prospectus and those that would not, individually
or in the aggregate materially and adversely affect the value of such property and do not materially and adversely interfere with
the use made and proposed to be made of such property by the Company and the Subsidiaries.  All of the property described
in the Registration Statement, the Disclosure Package and the Prospectus as being held under lease by the Company or a Subsidiary
is held thereby under valid, subsisting and enforceable leases, without any liens, restrictions, encumbrances or claims, except
those that, individually or in the aggregate, are not material and do not materially interfere with the use made and proposed to
be made of such property by the Company and the Subsidiaries.

 

(u)              
Intellectual Property Rights.  The Company and the Subsidiaries own, or have obtained valid and
enforceable licenses for, or other rights to use, the inventions, patent applications, patents, trademarks (both registered and
unregistered), tradenames, copyrights, trade secrets and other proprietary information described in the Registration Statement,
the Disclosure Package and the Prospectus as being owned or licensed by them or which are necessary for the conduct of their respective
businesses (collectively, “Intellectual Property”), except where the failure to own, license or have such rights
would not, individually or in the aggregate, result in a Material Adverse Effect.  Except as described in the Registration
Statement, the Disclosure Package and the Prospectus (i) there are no third parties who have or, to the Company’s knowledge,
will be able to establish rights to any Intellectual Property, except for the ownership rights of the owners of the Intellectual
Property which is licensed to the Company; (ii) to the Company’s knowledge, there is no infringement by third parties of
any Intellectual Property; (iii) there is no pending or, to the Company’s knowledge, threatened action, suit, proceeding
or claim by others challenging the Company’s rights in or to, or the validity, enforceability, or scope of, any Intellectual
Property owned by or licensed to the Company, and the Company is unaware of any facts which could form a reasonable basis for any
such claim; (iv) there is no pending or, to the Company’s knowledge, threatened action, suit, proceeding or claim by others
that the Company or any of the Subsidiaries infringes or otherwise violates any patent, trademark, copyright, trade secret or other
proprietary rights of others, and the Company is unaware of any facts which could form a reasonable basis for any such claim; (v)
to the Company’s knowledge, there is no patent or patent application that contains claims that interfere with the issued
or pending claims of any of the Intellectual Property; and (vi) to the Company’s knowledge, there is no prior art that may
render any patent owned by the Company invalid, nor is there any prior art known to the Company that may render any patent application
owned by the Company unpatentable.

 

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(v)              
Taxes.  The Company and each of the Subsidiaries has timely filed all material federal, state, local
and foreign income and franchise tax returns (or timely filed applicable extensions therefore) that have been required to be filed
and are not in default in the payment of any taxes which were payable pursuant to said returns or any assessments with respect
thereto, other than any which the Company or any of the Subsidiaries is contesting in good faith and for which adequate reserves
have been provided and reflected in the Company’s financial statements included in the Registration Statement, the Disclosure
Package and the Prospectus.  Neither the Company nor any of its Subsidiaries has any tax deficiency that has been or,
to the knowledge of the Company, might be asserted or threatened against it that would result in a Material Adverse Effect.

 

(w)             
Insurance.  The Company and each of the Subsidiaries maintains insurance in such amounts and covering
such risks as is adequate for the conduct of its business and the value of its properties and as is customary for companies engaged
in similar businesses in similar industries.  All such insurance is fully in force on the date hereof and will be fully
in force as of the Closing Date.  Neither the Company nor any of the Subsidiaries has any reason to believe that it will
not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar
insurers as may be necessary to continue its business at a cost that would not have a Material Adverse Effect.

 

(x)              
Corrupt Practices.  Neither the Company nor, to the Company’s knowledge, any other person
associated with or acting on behalf of the Company, including without limitation any director, officer, agent or employee of the
Company or its Subsidiaries has, directly or indirectly, while acting on behalf of the Company or its Subsidiaries (i) used any
corporate funds for unlawful contributions, gifts, entertainment or other unlawful expenses relating to political activity, (ii)
made any unlawful payment to foreign or domestic government officials or employees or to foreign or domestic political parties
or campaigns from corporate funds, (iii) violated any provision of the Foreign Corrupt Practices Act of 1977, as amended or (iv)
made any other unlawful payment.

 

(y)              
No Price Stabilization.  Neither the Company nor any of the Subsidiaries nor, to the Company’s
knowledge, any of their respective officers, directors, affiliates or controlling persons has taken or will take, directly or indirectly,
any action designed to cause or result in, or which has constituted or which might reasonably be expected to constitute the stabilization
or manipulation of the price of any security of the Company to facilitate the sale or resale of the Securities.

 

(z)               
No Undisclosed Relationships.  No relationship, direct or indirect, exists between or among the
Company on the one hand and the directors, officers, stockholders, customers or suppliers of the Company on the other hand which
is required to be described in the Registration Statement, the Disclosure Package and the Prospectus which has not been so described.
There are no outstanding loans, advances (except normal advances for business expenses in the ordinary course of business) or guarantees
of indebtedness by the Company to or for the benefit of any of the officers or directors of the Company or any member of their
respective immediate families. The Company has not, in violation of the Sarbanes-Oxley Act, directly or indirectly, extended or
maintained credit, arranged for the extension of credit, or renewed an extension of credit, in the form of a personal loan to or
for any director or executive officer of the Company.

 

    	 	9	 

     

    

 

(aa)           
Sarbanes-Oxley Act.  The Company, and to its knowledge after due inquiry, all of the Company’s
directors or officers, in their capacities as such, are in compliance in all material respects with all applicable effective provisions
of the Sarbanes-Oxley Act and any related rules and regulations promulgated by the Commission.

 

(bb)          
Brokers Fees.  Neither the Company nor any of the Subsidiaries is a party to any contract, agreement
or understanding with any person (other than this Agreement or any other agreement with Chardan) that would give rise to a valid
claim against the Company or the Subsidiaries or the Placement Agent for a brokerage commission, finder’s fee or other like
payment in connection with the offering and sale of the Securities.

 

(cc)           
Exchange Act Requirements. The Company has filed in a timely manner all reports required to be filed pursuant
to Sections 13, 14 and 15(d) of the Exchange Act during the preceding 12 months.  Except as set forth in the Registration
Statement, the Disclosure Package and the Prospectus, the Company’s Common Stock is listed and trades on the Nasdaq and no
stop order or notice of suspension of trading of its Common Stock on the Nasdaq Capital Market has been received from or, to the
Company’s knowledge, threatened by any person.

 

(dd)          
 FINRA Affiliations.  To the Company’s knowledge, there are no affiliations or associations
between (i) any member of FINRA and (ii) the Company or any of the Company’s officers, directors or 5% or greater security
holders or any beneficial owner of the Company’s unregistered equity securities that were acquired at any time on or after
the one hundred eightieth (180th) day immediately preceding the date the Registration Statement was initially filed with the Commission.

 

(ee)           
Compliance with Environmental Laws.  The Company and the Subsidiaries (a) are in compliance with
any and all applicable foreign, federal, state and local laws, orders, rules, regulations, directives, decrees and judgments relating
to the protection of human health and safety, the environment or hazardous or toxic substances or wastes, pollutants or contaminants
(“Environmental Laws”), (b) have received all permits, licenses or other approvals required of them under applicable
Environmental Laws to conduct their respective businesses and (c) are in compliance with all terms and conditions of any such permit,
license or approval, except where such noncompliance with Environmental Laws, failure to receive required permits, licenses or
other approvals or failure to comply with the terms and conditions of such permits, licenses or approvals would not, individually
or in the aggregate, result in a Material Adverse Effect.  There are no costs or liabilities associated with Environmental
Laws (including, without limitation, any capital or operating expenditures required for clean-up, closure of properties or compliance
with Environmental Laws or any permit, license or approval, any related constraints on operating activities and any potential liabilities
to third parties) which would, individually or in the aggregate, result in a Material Adverse Effect.

 

(ff)            
No Labor Disputes.  Neither the Company nor any Subsidiary is engaged in any unfair labor practice;
except for matters that would not, individually or in the aggregate, result in a Material Adverse Effect.  There is (A)
no unfair labor practice complaint pending or, to the Company’s knowledge after due inquiry, threatened against the Company
or any Subsidiary before the National Labor Relations Board, and no grievance or arbitration proceeding arising out of or under
collective bargaining agreements is pending or, to the Company’s knowledge, threatened, (B) no strike, labor dispute, slowdown
or stoppage pending or, to the Company’s knowledge after due inquiry, threatened against the Company or any Subsidiary and
(C) no union representation dispute currently existing concerning the employees of the Company or any Subsidiary, and (ii) to the
Company’s knowledge (A) no union organizing activities are currently taking place concerning the employees of the Company
or any Subsidiary and (B) there has been no violation of any federal, state, local or foreign law relating to discrimination in
the hiring, promotion or pay of employees or any applicable wage or hour laws concerning the employees of the Company or any Subsidiary.

 

    	 	10	 

     

    

 

(gg)           
ERISA.  The Company is in compliance in all material respects with all presently applicable provisions
of the Employee Retirement Income Security Act of 1974, as amended, including the regulations and published interpretations thereunder
(“ERISA”); no “reportable event” (as defined in ERISA) has occurred with respect to any “pension
plan” (as defined in ERISA) for which the Company would have any liability; the Company has not incurred and does not expect
to incur liability under (i) Title IV of ERISA with respect to termination of, or withdrawal from, any “pension plan”
or (ii) Sections 412 or 4971 of the Internal Revenue Code of 1986, as amended, including the regulations and published interpretations
thereunder (the “Code”); and each “pension plan” for which the Company would have any liability that is
intended to be qualified under Section 401(a) of the Code is so qualified in all material respects and nothing has occurred, whether
by action or by failure to act, which would cause the loss of such qualification.

 

(hh)          
Exchange Act Registration.  Except as set forth in the SEC Reports, the Registration Statement,
the Disclosure Package and the Prospectus, the Company has taken no action designed to, or likely to have the effect of, terminating
the registration of the Common Stock under the Exchange Act or delisting the Common Stock from Nasdaq, nor has the Company received
any notification that the Commission or Nasdaq is contemplating terminating such registration or listing. Except as set forth in
the Registration Statement, the Disclosure Package and the Prospectus, the Company has complied in all material respects with the
applicable requirements of Nasdaq for maintenance of listing of the Common Stock thereon.

 

(ii)              
Descriptions of Documents.  The statements set forth in each of the Registration Statement, the
Disclosure Package and the Prospectus describing the Securities and this Agreement, insofar as they purport to describe the provisions
of the laws and documents referred to therein, are accurate, complete and fair in all material respects.

 

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

 

(kk)    
OFAC.  Neither the Company nor any of its Subsidiaries nor, to the knowledge of the Company, any
director, officer, agent, employee or affiliate of the Company or any of its Subsidiaries is currently subject to any U.S. sanctions
administered by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”); and the Company
will not directly or indirectly use the proceeds of the offering, or lend, contribute or otherwise make available such proceeds
to any subsidiary, joint venture partner or other person or entity that, to the Company’s knowledge, will use such proceeds,
for the purpose of financing the activities of any person currently subject to any U.S. sanctions administered by OFAC.

 

    	 	11	 

     

    

 

3.            
Covenants. The Company covenants and agrees with the Placement Agent as follows:

 

(a)               
Reporting Obligations; Exchange Act Compliance.  The Company will (i) file the Prospectus with the
Commission within the time periods specified by Rule 424(b) and Rules 430A, 430B and 430C, as applicable under the Securities Act,
and (ii) file timely all reports required to be filed by the Company with the Commission pursuant to Section 13(a), 13(c) or 15(d)
of the Exchange Act subsequent to the date of the Prospectus and during such period as the Prospectus would be required by law
to be delivered  (whether physically or through compliance with Rule 172 under the Securities Act or any similar rule)
(the “Prospectus Delivery Period”).

 

(b)              
Amendments or Supplements.  The Company will not, during the Prospectus Delivery Period in
connection with the Offering contemplated by this Agreement, file any amendment or supplement to the Registration Statement or
the Prospectus unless a copy thereof shall first have been submitted to the Placement Agent within a reasonable period of time
prior to the filing thereof and the Placement Agent shall not have reasonably objected thereto in good faith.

 

 

 

(c)               
Delivery of Copies.  The Company will deliver promptly to the Placement Agent and its counsel such
number of the following documents as the Placement Agent shall reasonably request (other than any such document that is filed with
the Commission electronically via EDGAR or any successor system):  (i) conformed copies of the Registration Statement
as originally filed with the Commission and each amendment thereto (in each case excluding exhibits), (ii) any document incorporated
by reference in the Prospectus and (iii) all correspondence to and from, and all documents issued to and by, the Commission in
connection with the registration of the Securities under the Securities Act.

 

(d)              
Public Communications.  Prior to the Closing Date, the Company will not issue any press release
or other communication directly or indirectly or hold any press conference with respect to the Company, its condition, financial
or otherwise, or the earnings, business, operations or prospects of any of them, or the offering of the Securities, without the
prior written consent of the Placement Agent, unless in the reasonable judgment of the Company and its counsel, and after notification
to the Placement Agent, such press release or communication is required by law, in which case the Company shall use its reasonable
best efforts to allow the Placement Agent reasonable time to comment on such release or other communication in advance of such
issuance.

 

(e)               
Stabilization.  The Company will not take directly or indirectly any action designed, or that might
reasonably be expected to cause or result in, or that will constitute, stabilization or manipulation of the price of any security
of the Company to facilitate the sale or resale of any of the Securities.

 

(f)               
Transfer Agent.  The Company shall engage and maintain, at its expense, a transfer agent and, if
necessary under the jurisdiction of incorporation of the Company, a registrar for the Shares and Warrant Shares.

 

(g)               
Investment Company Act.  The Company shall not invest, or otherwise use the proceeds received by
the Company from its sale of the Securities in such a manner as would require the Company to register as an investment company
under the Investment Company Act.

 

(h)              
Sarbanes-Oxley Act.  The Company will comply with all effective applicable provisions of the Sarbanes
Oxley Act.

 

    	 	12	 

     

    

 

(i)                
Exchange Act Reports.  During the Prospectus Delivery Period, the Company will file with the Commission
such periodic and current reports as required by the Exchange Act.

 

4.            
Representations, Warranties and Agreements of Placement Agent. The Placement Agent
represents and agrees that, without the prior consent of the Company, it has not made and will not make any offer relating to the
Securities that would constitute a free writing prospectus.

 

5.            
Costs and Expenses. The Company and the Placement Agent agree that except as provided
in Section 7, the Company shall pay all of its own costs and expenses, including, without limitation, all costs and expenses
of its own counsel, incident to the performance of each of its obligations under this Agreement and in connection with the transactions
contemplated hereby. The Company shall reimburse the Placement Agent for its out-of-pocket expenses incurred in connection with
the Offering, including, but not limited to, fees of its legal counsel and travel and road show expenses, up to a maximum of $25,000.

 

6.            
Conditions of Placement Agent’s Obligations. The obligations of the Placement
Agent hereunder are subject to the following conditions:

 

(a)               
No Stop Orders.  Prior to the Closing: (i) no stop order suspending the effectiveness of the Registration
Statement shall have been issued under the Securities Act and no proceedings initiated under Section 8(d) or 8(e) of the Securities
Act for that purpose shall be pending or, to the Company’s knowledge, threatened by the Commission, and (ii) any request
for additional information on the part of the Commission (to be included in the Registration Statement, the Disclosure Package,
the Prospectus or any Issuer Free Writing Prospectus or otherwise) shall have been complied with to the reasonable satisfaction
of the Placement Agent.

 

(b)              
Action Preventing Issuance.  No action shall have been taken and no statute, rule, regulation or
order shall have been enacted, adopted or issued by any governmental agency or body which would, as of the Closing Date, prevent
the issuance or sale of the Securities; and no injunction, restraining order or order of any other nature by any federal or state
court of competent jurisdiction shall have been issued as of the Closing Date which would prevent the issuance or sale of the Securities.

 

(c)               
Objection of Placement Agent.  No Prospectus or amendment or supplement to the Registration Statement
shall have been filed to which the Placement Agent shall have objected in writing, which objection shall not be unreasonable.  The
Placement Agent shall not have advised the Company that the Registration Statement, the Disclosure Package or the Prospectus, or
any amendment thereof or supplement thereto contains an untrue statement of fact which, in its opinion, is material, or omits to
state a fact which, in its opinion, is material and is required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading.

 

(d)              
No Material Adverse Change.  Prior to the Closing, there shall not have occurred any Material Adverse
Effect from that set forth in the Disclosure Package and the Prospectus that makes it, in the Placement Agent’s reasonable
judgment, impracticable to market the Securities on the terms and in the manner contemplated in the Disclosure Package, including,
without limitation, any of the following:

 

(i)                
a suspension or material limitation in trading in securities generally on the New York Stock Exchange, the NYSE MKT,
the NASDAQ Stock Market, the NASDAQ Global Select Market, the NASDAQ Global Market, the NASDAQ Capital Market, or the over the
counter market or the establishing on such exchanges or markets by the SEC or by such exchanges or markets of minimum or maximum
prices that are not in force and effect on the date hereof;

 

    	 	13	 

     

    

 

(ii)              
a suspension or material limitation in trading in the Company’s securities on any other exchange or market
or the establishing on any such market or exchange by the SEC or by such market of minimum or maximum prices that are not in force
and effect on the date hereof;

 

(iii)            
a general moratorium on commercial banking activities declared by either federal or any state authorities;

 

(iv)            
the outbreak or escalation of hostilities involving the United States or the declaration by the United States of
a national emergency or war, which in the Placement Agent’s sole judgment makes it impracticable or inadvisable to proceed
with the public offering or the delivery of the Securities in the manner contemplated in the Prospectus; or

 

(v)              
any calamity or crisis, change in national, international or world affairs, act of God, change in the international
or domestic markets, or change in the existing financial, political or economic conditions in the United States or elsewhere, that
in the Placement Agent’s judgment makes it impracticable or inadvisable to proceed with the public offering or the delivery
of the Securities in the manner contemplated in each of the Disclosure Package and the Prospectus.

 

(e)               
Representations and Warranties.  Each of the representations and warranties of the Company contained
herein shall be true and correct, in all material respects (other than those representations, warranties and agreements that are
qualified as to materiality, which shall be true and correct in all respects), as of the date hereof and the Closing Date, and
all covenants and agreements herein contained to be performed on the part of the Company and all conditions herein contained to
be fulfilled or complied with by the Company at or prior to the Closing Date shall have been duly performed, fulfilled or complied
with.

 

(f)               
On the Closing Date, there shall have been furnished to the Placement Agent the opinion and negative assurance letter
of Kane Kessler, P.C, counsel for the Company, dated the Closing Date and addressed to the Placement Agent, in form and substance
reasonably satisfactory to the Placement Agent.

 

(g)               
Officer’s Certificate.  The Placement Agent shall have received on the Closing Date a certificate,
addressed to the Placement Agent and dated the Closing Date, of the chief executive officer and the chief financial officer of
the Company to the effect that:

 

(i)                
each of the representations, warranties and agreements of the Company in this Agreement are true and correct, in
all material respects (other than those representations, warranties and agreements that are qualified as to materiality, which
are true and correct in all respects), as of the Time of Sale and the Closing Date; and the Company has complied with all agreements
and satisfied all the conditions on its part required under this Agreement to be performed or satisfied at or prior to the Closing
Date;

 

(ii)              
subsequent to the respective dates as of which information is given in the Disclosure Package, there has not been
(A) a material adverse change or any development involving a prospective material adverse change in the general affairs, business,
properties, management, financial condition or results of operations of the Company and the Subsidiaries taken as a whole, (B)
any transaction that is material to the Company and the Subsidiaries taken as a whole, except transactions entered into in the
ordinary course of business, (C) any obligation, direct or contingent, that is material to the Company and the Subsidiaries taken
as a whole, incurred by the Company or the Subsidiaries, except obligations incurred in the ordinary course of business, (D) except
as disclosed in the Disclosure Package and in the Prospectus, any change in the capital stock (other than a change in the number
of outstanding Common Stock due to the issuance of shares upon the exercise of outstanding options or warrants or pursuant to the
terms of employment agreements outstanding prior to the date of the Disclosure Package) or any material change in the short term
or long term indebtedness of the Company or any of the Subsidiaries taken as a whole, (E) any dividend or distribution of any kind
declared, paid or made on the capital stock of the Company or any of the Subsidiaries or (F) any loss or damage (whether or not
insured) to the property of the Company or any of its Subsidiaries which has been sustained or will have been sustained which has
had or is reasonably likely to result in a Material Adverse Effect;

 

    	 	14	 

     

    

 

(iii)            
no stop order suspending the effectiveness of the Registration Statement or any part thereof or any amendment thereof
or the qualification of the Securities for offering or sale, nor suspending or preventing the use of the Disclosure Package, or
the Prospectus shall have been issued, and no proceedings for that purpose shall be pending or to their knowledge, threatened by
the Commission or any state or regulatory body; and

 

(iv)            
the signers of said certificate have reviewed the Registration Statement, the Disclosure Package and the Prospectus,
and any amendments thereof or supplements thereto (and any documents filed under the Exchange Act and deemed to be incorporated
by reference into the Disclosure Package and the Prospectus), and (A) (i) the Registration Statement and any amendment thereof
did not contain when the Registration Statement (or such amendment) became effective, any untrue statement of a material fact or
omit to state when the Registration Statement (or such amendment) became effective, any material fact required to be stated therein
or necessary to make the statements therein not misleading and (ii) as of the Time of Sale,the Disclosure Package did not contain
any untrue statement of material fact or omitted to state any material fact necessary to make the statements therein, in light
of the circumstances under which they were made, not misleading and (iii) the Prospectus, as amended or supplemented, does not
and did not contain, as of the time of filing and as of the Closing Date, any untrue statement of material fact or omit to state
and did not omit to state as of such date, a material fact necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading, and (B) since the Time of Sale, there has occurred no event required to be set forth
in an amendment or supplement to the Registration Statement, the Disclosure Package or the Prospectus which has not been so set
forth and there has been no document required to be filed under the Exchange Act that upon such filing would be deemed to be incorporated
by reference in to the Disclosure Package and into the Prospectus that has not been so filed.

 

(h)              
Secretary’s Certificate.  On the Closing Date, the Company shall have furnished to the Placement
Agent a Secretary’s Certificate of the Company.

 

(i)                
Other Filings with the Commission.  No later than the business day immediately following the date
hereof, the Company shall have prepared and filed with the Commission a Current Report on Form 8-K with respect to the transactions
contemplated hereby, including as an exhibit thereto this Agreement and any other documents relating thereto.

 

(j)                
Additional Documents.  Prior to the Closing Date, the Company shall have furnished to the Placement
Agent such further information, certificates or documents as the Placement Agent shall have reasonably requested for the purpose
of enabling them to pass upon the issuance and sale of the Securities as contemplated herein, or in order to evidence the accuracy
of any of the representations and warranties, or the satisfaction of any of the conditions or agreements, herein contained.

 

    	 	15	 

     

    

 

All opinions, letters, evidence and certificates
mentioned above or elsewhere in this Agreement shall be deemed to be in compliance with the provisions hereof only if they are
in form and substance reasonably satisfactory to counsel for the Placement Agent.

 

If any condition specified in this Section
6 is not satisfied when and as required to be satisfied, this Agreement may be terminated by the Placement Agent by notice
to the Company at any time prior to the Closing Date, which termination shall be without liability on the part of any party to
any other party, except that Section 5, Section 7 and Section 9 shall at all times be effective and shall
survive such termination.

 

7.            
Indemnification and Contribution.

 

(a)               
Indemnification of the Placement Agent.  The Company agrees to indemnify, defend and hold harmless
each of the Placement Agent, its respective directors and officers, and each person, if any, who controls such Placement Agent
within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, and the successors and assigns
of all of the foregoing persons, from and against any loss, damage, claim or liability, which, jointly or severally, such Placement
Agent or any such person may become subject under the Securities Act, the Exchange Act, or other federal or state statutory law
or regulation, the common law or otherwise, (including in settlement of any litigation, if such settlement is effected with the
written consent of the Company), insofar as such loss, damage, claim or liability (or actions in respect thereof as contemplated
below) arises out of or is based upon: (i) any untrue statement or alleged untrue statement of a material fact contained in the
Registration Statement, or any amendment thereto or the omission or alleged omission to state a material fact required to be stated
therein or necessary to make the statements therein not misleading; (ii) any untrue statement or alleged untrue statement of a
material fact contained in any Preliminary Prospectus, or the Prospectus (or any amendment or supplement thereto), or the omission
or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements made therein,
in light of the circumstances under which they were made, not misleading; and, in the case of (i) and (ii) above, to reimburse
such Placement Agent and each such controlling person for any and all reasonable expenses (including reasonable fees and disbursements
of counsel) as such expenses are incurred by such Placement Agent or such controlling person in connection with investigating,
defending, settling, compromising or paying any such loss, claim, damage, liability, expense or action; provided, however,
that the foregoing indemnity shall not apply to any loss, claim, damage, liability or expense to the extent, but only to the extent,
it arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in or omitted from,
and in conformity with information concerning such Placement Agent furnished in writing by or on behalf of such Placement Agent
to the Company expressly for use therein, or (iii) any untrue statement or alleged untrue statement of any material fact contained
in any audio or visual materials provided to Investors by or with the approval of the Company including, without limitation, slides,
videos, films or tape recordings used in any road show or investor presentations made to investors by the Company (whether in person
or electronically) or in connection with the marketing of the Securities.

 

(b)              
Indemnification of the Company.  The Placement Agent will indemnify, defend and hold harmless the
Company, its directors and officers, and any person, if any, who controls the Company within the meaning of either Section 15 of
the Securities Act or Section 20 of the Exchange Act, and the successors and assigns of all of the foregoing persons, from and
against any loss, claim, damage, liability or expense, as incurred to which, jointly or severally, the Company or any such person
may become subject under the Securities Act, the Exchange Act, or other federal or state statutory law or regulation, the common
law or otherwise (including in settlement of any litigation, if such settlement is effected with the written consent of such Placement
Agent), insofar as such loss, claim, damage, liability or expense (or actions in respect thereof as contemplated below) arises
out of or is based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement,
or any amendment thereto, or the omission or alleged omission therefrom to state a material fact required to be stated therein
or necessary to make the statements therein not misleading; (ii) any untrue statement or alleged untrue statement of a material
fact contained in any Preliminary Prospectus, or the Prospectus (or any amendment or supplement thereto), or the omission or alleged
omission to state therein a material fact required to be stated therein or necessary to make the statements made therein, in light
of the circumstances under which they were made, not misleading, in the case of each of (i) and (ii) above, to the extent, but
only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration
Statement, any Preliminary Prospectus or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity
with information concerning such Placement Agent furnished in writing by or on behalf of such Placement Agent to the Company expressly
for use therein and to reimburse the Company, or any such director, officer or controlling person for any legal and other expense
reasonably incurred by the Company, or any such director, officer or controlling person in connection with investigating, defending,
settling, compromising or paying any such loss, claim, damage, liability, expense or action.

 

    	 	16	 

     

    

 

(c)               
Notice and Procedures.  If any action, suit or proceeding (each, a “Proceeding”)
is brought against a person (an “indemnified party”) in respect of which indemnity may be sought against the
Company or the Placement Agent (as applicable, the “indemnifying party”) pursuant to subsection (a) or (b),
respectively, of this Section 7, such indemnified party shall promptly notify such indemnifying party in writing of the
institution of such Proceeding and such indemnifying party shall assume the defense of such Proceeding, including the employment
of counsel reasonably satisfactory to such indemnified party and payment of all fees and expenses; provided, however, that
the omission to so notify such indemnifying party shall not relieve such indemnifying party from any liability which such indemnifying
party may have to any indemnified party or otherwise, except to the extent such failure results in the forfeiture by the indemnifying
party of substantial rights or defenses. The indemnified party or parties shall have the right to employ its or their own counsel
in any such case, but the fees and expenses of such counsel shall be at the expense of such indemnified party or parties unless
(i) the employment of such counsel shall have been authorized in writing by the indemnifying party in connection with the defense
of such Proceeding, (ii) the indemnifying party shall not have, within a reasonable period of time in light of the circumstances,
employed counsel to defend such Proceeding or (iii) such indemnified party or parties shall have reasonably concluded that there
may be defenses available to it or them which are different from, additional to or in conflict with those available to such indemnifying
party, in any of which events such reasonable fees and expenses shall be borne by such indemnifying party and paid as incurred
(it being understood, however, that such indemnifying party shall not be liable for the expenses of more than one separate counsel
(in addition to any local counsel) in any one Proceeding or series of related Proceedings in the same jurisdiction representing
the indemnified parties who are parties to such Proceeding). An indemnifying party shall not be liable for any settlement of any
Proceeding (including by consent to the entry of any judgment) effected without its written consent but, if settled with its written
consent or if there be a final judgment for the plaintiff, such indemnifying party agrees to indemnify and hold harmless the indemnified
party or parties from and against any loss or liability by reason of such settlement or judgment. Notwithstanding the foregoing
sentence, if at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for
fees and expenses of counsel (which fees and expenses shall be reasonably documented) as contemplated by the second sentence of
this Section 7(c), then the indemnifying party agrees that it shall be liable for any settlement of any Proceeding effected
without its written consent if (i) such settlement is entered into more than 90 days after receipt by such indemnifying party of
the aforesaid request, (ii) such indemnifying party shall not have fully reimbursed the indemnified party in accordance with such
request prior to the date of such settlement and (iii) such indemnified party shall have given the indemnifying party at least
30 days’ prior notice of its intention to settle. No indemnifying party shall, without the prior written consent of the indemnified
party, effect any settlement, compromise or consent to the entry of judgment in any pending or threatened Proceeding in respect
of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified
party, unless such settlement includes an unconditional release of such indemnified party from all liability on claims that are
the subject matter of such Proceeding and does not include an admission of fault or culpability or a failure to act by or on behalf
of such indemnified party.

 

    	 	17	 

     

    

 

(d)              
Contribution.  If the indemnification provided for in this Section 7 is unavailable to an
indemnified party under subsections (a) or (b) of this Section 7 or insufficient to hold an indemnified party harmless in
respect of any losses, claims, damages, liabilities or expenses referred to therein, then each applicable indemnifying party shall,
in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result
of the losses, claims, damages, liabilities or expenses referred to in subsection (a) or (b) above, (i) in such proportion as is
appropriate to reflect the relative benefits received by the Company on the one hand and the Placement Agent on the other from
the offering of the Securities or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such
proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault
of the Company on the one hand and the Placement Agent on the other hand in connection with the statements or omissions that resulted
in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations.  The
relative benefits received by the Company on the one hand and the Placement Agent on the other hand shall be deemed to be in the
same respective proportions as the total net proceeds from the offering of the Securities (before deducting expenses) received
by the Company and the Placement Fee received by the Placement Agent, in each case as set forth on the cover of the Prospectus,
bear to the aggregate public offering price of the Securities.  The relative fault of the Company on the one hand and
the Placement Agent on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the
Company, on the one hand, or by the Placement Agent, on the other hand, and the parties’ relevant intent, knowledge, access
to information and opportunity to correct or prevent such untrue statement or omission.  The Company and the Placement
Agent agree that it would not be just and equitable if contribution pursuant to this subsection (d) were to be determined by pro
rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to in
the first sentence of this Section 7(d).  The amount paid or payable by an indemnified party as a result of the
losses, claims, damages or liabilities referred to in the first sentence of this Section 7(d) shall be deemed to include
any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending against
any action or claim which is the subject of this Section 7(d).  Notwithstanding the provisions of this Section
7(d), the Placement Agent shall not be required to contribute any amount in excess of the Placement Fee.  No person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution
from any person who was not guilty of such fraudulent misrepresentation.

 

(e)               
Representations and Agreements to Survive Delivery.  The obligations of the Company under this Section
7 shall be in addition to any liability which the Company may otherwise have.  The indemnity and contribution agreements
of the parties contained in this Section 7 and the covenants, warranties and representations of the Company contained in
this Agreement shall remain operative and in full force and effect regardless of (i) any termination of this Agreement, (ii) any
investigation made by or on behalf of the Placement Agent, any person who controls the Placement Agent within the meaning of either
Section 15 of the Securities Act or Section 20 of the Exchange Act or any affiliate of the Placement Agent, or by or on behalf
of the Company, its directors or officers or any person who controls the Company within the meaning of either Section 15 of the
Securities Act or Section 20 of the Exchange Act, and (iii) the issuance and delivery of the Securities. The Company and the Placement
Agent agree promptly to notify each other of the commencement of any Proceeding against it and, in the case of the Company, against
any of the Company’s officers or directors in connection with the issuance and sale of the Securities, or in connection with
the Registration Statement, the Disclosure Package or the Prospectus.

 

    	 	18	 

     

    

 

8.            
[Reserved]

 

9.            
Termination.

 

(a)               
The Placement Agent shall have the right to terminate this Agreement by giving notice as hereinafter specified at
any time at or prior to the Closing Date, without liability on the part of the Placement Agent to the Company, if (i) prior to
delivery and payment for the Securities (A) trading in securities generally shall have been suspended or materially limited on
or by the New York Stock Exchange, the NASDAQ Stock Market, the NASDAQ Global Select Market, the NASDAQ Global Market, the NASDAQ
Capital Market, or the NYSE MKT (each, a “Trading Market”), (B) trading in the Common Stock of the Company shall
have been suspended or materially limited on any exchange or in the over-the-counter market, (C) a general moratorium on commercial
banking activities shall have been declared by federal or New York state authorities, (D) there shall have occurred any outbreak
or material escalation of hostilities or acts of terrorism involving the United States or there shall have been a declaration by
the United States of a national emergency or war, (E) there shall have occurred any other calamity or crisis or any material change
in general economic, political or financial conditions in the United States or elsewhere, if the effect of any such event specified
in clause (D) or (E), in the reasonable judgment of the Placement Agent, makes it impractical or inadvisable to proceed with the
completion of the sale of and payment for the Securities on the Closing Date on the terms and in the manner contemplated by this
Agreement, the Disclosure Package and the Prospectus, or (ii) since the time of execution of this Agreement or the earlier respective
dates as of which information is given in the Disclosure Package, there has been, (A) in the reasonable judgment of the Placement
Agent, any Material Adverse Effect or (B) the Company shall have sustained a loss by strike, fire, flood, earthquake, accident
or other calamity of such character that would, in the reasonable judgment of the Placement Agent, individually or in the aggregate,
result in a Material Adverse Effect and which would, in the reasonable judgment of the Placement Agent, make it impracticable or
inadvisable to proceed with the offering or the delivery of the Securities on the terms and in the manner contemplated in the Disclosure
Package.  Any such termination shall be without liability of any party to any other party except that the provisions
of Section 5, Section 7, Section 9(b) and Section 12 hereof shall at all times be effective notwithstanding
such termination.

 

(b)              
Whether or not the Offering is completed, during the six months following the termination of the Engagement Letter
by and between the Company and the Placement Agent, dated May 24, 2016, any person or entity to whom the Placement Agent introduced
the Company, or with whom there have been discussions or negotiations about an investment in the Company during the term of the
Placement Agent’s engagement on behalf of the Company, purchases securities from the Company, the Company agrees to pay the
Placement Agent upon the closing of such transaction a cash fee in the amount that would otherwise have been payable to the Placement
Agent if such transaction occurred during the term of this Agreement.

 

10.        
Notices. All statements, requests, notices and agreements hereunder shall be in
writing or by facsimile, and:

 

(a)               
if to the Placement Agent, shall be delivered or sent by mail, telex or facsimile transmission to:

 

Chardan Capital Markets, LLC

150 East 58th Street, 28th Fl

New York, New York 10155

Attention: Jonathan Schechter

Facsimile No.: (347) 801-2502

 

    	 	19	 

     

    

 

with a copy (which shall not constitute
notice) to:

 

Pryor Cashman LLP

7 Times Square

New York, New York 10036

Attention:  M. Ali Panjwani, Esq.

Facsimile No.: (212) 798-6319

 

(b)              
if to the Company shall be delivered or sent by mail, telex or facsimile transmission to:

 

Northwest Biotherapeutics, Inc.

4800 Montgomery Lane, Suite 800

Bethesda, MD 20814

Attn: Chief Executive Officer

Facsimile No.: [ ]

 

with a copy (which shall not constitute notice) to:

 

Kane Kessler, P.C.

1350 Avenue of the Americas

New York, N.Y. 10019

Attention:  Peter Campitiello, Esq.

Facsimile No.: (212) 245-3009

Any such notice shall be effective only upon receipt.  Any party to this Agreement may change such address for notices
by sending to the parties to this Agreement written notice of a new address for such purpose.

 

11.        
Persons Entitled to Benefit of Agreement. This Agreement shall inure to the benefit
of and shall be binding upon the Placement Agent, the Company and their respective successors and assigns and the controlling persons,
officers and directors referred to in Section 7.  Nothing in this Agreement is intended or shall be construed
to give to any other person, firm or corporation (including the Investors), other than the persons, firms or corporations mentioned
in the preceding sentence, any legal or equitable remedy or claim under or in respect of this Agreement, or any provision herein
contained.  The term “successors and assigns” as herein used shall not include any purchaser of the Securities
by reason merely of such purchase.

 

12.        
Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of New York, without giving effect to the conflicts of laws provisions thereof.

 

13.        
No Fiduciary Relationship. The Company hereby acknowledges that the Placement Agent
is acting solely as Placement Agent in connection with the offering of the Company’s securities. The Company further acknowledges
that the Placement Agent is acting pursuant to a contractual relationship created solely by this Agreement entered into on an arm’s
length basis and in no event do the parties intend that the Placement Agent act or be responsible as a fiduciary to the Company,
its management, shareholders, creditors or any other person in connection with any activity that the Placement Agent may undertake
or have undertaken in furtherance of the offering of the Company’s securities, either before or after the date hereof. The
Placement Agent hereby expressly disclaims any fiduciary or similar obligations to the Company, either in connection with the transactions
contemplated by this Agreement or any matters leading up to such transactions, and the Company hereby confirms its understanding
and agreement to that effect. The Company and the Placement Agent agree that they are each responsible for making their own independent
judgments with respect to any such transactions, and that any opinions or views expressed by the Placement Agent to the Company
regarding such transactions, including but not limited to any opinions or views with respect to the price or market for the Company’s
securities, do not constitute advice or recommendations to the Company. The Company hereby waives and releases, to the fullest
extent permitted by law, any claims that the Company may have against the Placement Agent with respect to any breach or alleged
breach of any fiduciary or similar duty to the Company in connection with the transactions contemplated by this Agreement or any
matters leading up to such transactions.

 

    	 	20	 

     

    

 

14.        
Entire Agreement. This Agreement, together with the schedules and exhibits attached
hereto and as the same may be amended from time to time in accordance with the terms hereof, contains the entire agreement among
the parties hereto relating to the subject matter hereof and there are no other or further agreements outstanding not specifically
mentioned herein.

 

15.        
Headings. The Section headings in this Agreement have been inserted as a matter
of convenience of reference and are not a part of this Agreement.

 

16.        
Amendments and Waivers. No supplement, modification or waiver of this Agreement
shall be binding unless executed in writing by the party to be bound thereby. The failure of a party to exercise any right or remedy
shall not be deemed or constitute a waiver of such right or remedy in the future. No waiver of any of the provisions of this Agreement
shall be deemed or shall constitute a waiver of any other provision hereof (regardless of whether similar), nor shall any such
waiver constitute a continuing waiver unless otherwise expressly provided.

 

17.        
Submission to Jurisdiction. Except as set forth below, no Proceeding may be commenced,
prosecuted or continued in any court other than the courts of the State of New York located in the City and County of New York
or in the United States District Court for the Southern District of New York, which courts shall have jurisdiction over the adjudication
of such matters, and the parties hereto hereby consent to the jurisdiction of such courts and personal service with respect thereto.
The parties hereto hereby waive all right to trial by jury in any Proceeding (whether based upon contract, tort or otherwise) in
any way arising out of or relating to this Agreement. The parties hereto agrees that a final judgment in any such Proceeding brought
in any such court shall be conclusive and binding upon the parties and may be enforced in any other courts in the jurisdiction
of which the parties are or may be subject, by suit upon such judgment.

 

18.        
Counterparts. This Agreement may be executed in one or more counterparts and, if
executed in more than one counterpart, the executed counterparts shall each be deemed to be an original and all such counterparts
shall together constitute one and the same instrument.  Delivery of an executed counterpart by facsimile shall be effective
as delivery of a manually executed counterpart thereof.

 

 

[Signature pages follow]

 

    	 	21	 

     

    

 

If the foregoing is
in accordance with your understanding of the agreement between the Company and the Placement Agent, kindly indicate your acceptance
in the space provided for that purpose below.

 

 

	 	Very truly yours,	 	 
	 	 	 	 	 
	 	NORTHWEST BIOTHERAPEUTICS, INC.	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	By:	 	 	 
	 	 	Name:	 	 
	 	 	Title:	 	 

 

 

Accepted as of

the date first above written:

 

CHARDAN CAPITAL MARKETS, LLC

 

 

	By: 	 	 
	 	Name: 	 
	 	Title: 	 

 

 

Signature Page
to Placement Agency Agreement

 

     

     

    

 

None.

 

 

 

 

 

 

    	 	Schedule I	 

     

    

 

Exhibit A

 

Form of Purchase Agreement

 

 

 

 

 

 

    	 	 Exhibit A	 

     

    

 

Exhibit B

 

Pricing Information

 

 

Number of Shares to be Sold: 7,400,000

 

Number of Warrants to be Sold: 3,700,000

 

Offering Price: $0.50

 

Exercise Price of Warrants: $0.60, exercisable until January
[ ], 2022.

 

Aggregate Placement Agency Fees: $296,000

 

 

 

 

 

 

 

    	 	 Exhibit B	 

     

    

 

Exhibit C

 

Disclosure Materials

 

 

None.

 

 

 

 

 

    	 	 Exhibit C	 

     

    

 

Exhibit D

 

Form of Warrant

 

 

 

 

 

 

 

    	 	 Exhibit DEX-10.1

 Exhibit 10.1 

VOTING AGREEMENT 
 This
Agreement (this “Agreement”), dated as of July 9, 2016, is entered into by and between Caesars Acquisition Company, a Delaware corporation (“CAC”), and Hamlet Holdings LLC, a Delaware limited liability company
(“VoteCo”) and, solely for the purposes of Section 4.3, Section 6.11 and Section 6.12, the Holders (as defined below). Capitalized terms used in this Agreement and not otherwise defined herein
shall have the meanings assigned to them in the A&R Merger Agreement (as defined below) or the Bank RSA (as defined below), each as in effect on the date hereof. 

WHEREAS, concurrently or substantially concurrently with the execution and delivery of this Agreement, Caesars Entertainment Corporation, a
Delaware corporation (“CEC”), and CAC, have entered into an Amended and Restated Agreement and Plan of Merger, dated as of the date hereof (as the same may be amended or amended and restated from time to time in accordance with the
terms of this Agreement, the “A&R Merger Agreement”); 
 WHEREAS, concurrently with the execution and delivery of this
Agreement, VoteCo, the Holders and CEC have entered into a voting agreement relating to the shares of CAC Common Stock over which VoteCo has the sole voting and sole dispositive power (the “CEC-VoteCo Agreement”), a copy of which is
attached as Exhibit A; 
 WHEREAS, execution and delivery of a Merger Agreement and Sponsor Agreements (as defined in the RSAs), in
each case, in form and substance reasonably acceptable to Caesars Entertainment Operating Company, Inc., a Delaware corporation (“CEOC”), are conditions to the effectiveness of the obligations of CEOC under the CAC-CEOC RSA, and
entry into such agreements is a material inducement to CEOC with respect to the CEOC Plan and the CAC-CEOC RSA and the CEC-CEOC RSA. 

WHEREAS, pursuant to the Irrevocable Proxy, dated November 22, 2010 (the “CEC Irrevocable Proxy”), made and granted by
the parties listed in Schedule A thereto (the “Holders”), as of the date hereof, VoteCo has the sole voting and sole dispositive power with respect to 87,605,299 shares (the “Subject Shares”) of Common Stock of CEC
(“Company Common Shares”); 
 WHEREAS, obtaining the CEC Requisite Vote is a condition to the consummation of the Merger;

 WHEREAS, as a condition to its willingness to enter into the A&R Merger Agreement, CAC has required that VoteCo enter into this
Agreement; 
 WHEREAS, as a condition to its willingness to enter into the CEC/CEOC RSA, CEOC has required that CAC, VoteCo and the Holders
enter into this Agreement; 

 WHEREAS, the parties specified herein are intended to be third-party beneficiaries of this
Agreement and all obligations of the respective parties hereunder. 
 NOW, THEREFORE, in consideration of CAC entering into the A&R
Merger Agreement, CEOC entering into the CEC/CEOC RSA and of the mutual covenants and agreements contained herein and therein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to
be legally bound hereby, the parties agree as follows: 
 SECTION 1. Voting Agreement. 

1.1 Voting Agreement. VoteCo hereby agrees that, from the date of this Agreement until the termination of this Agreement (the
“Voting Period”), at any meeting of the stockholders of CEC, and at every adjournment or postponement thereof, or in any action by written consent of the stockholders of CEC, VoteCo shall appear (in person or by proxy) at such
meeting (or any adjournment or postponement thereof) and cause all of the Subject Shares to be counted as present thereat for purposes of calculating a quorum and shall vote (or cause to be voted) all the Subject Shares: 

(a) (i) in favor of the adoption of the plan of merger contained in the A&R Merger Agreement and approval of the Merger,
(ii) in favor of any proposal to adjourn the meeting to solicit additional proxies in favor of the adoption of the A&R Merger Agreement and the approval of the Merger if (but only if) there are not sufficient votes to adopt the A&R
Merger Agreement and approve the Merger on the date on which such meeting is held and (iii) in favor of any other action, proposal, transaction or agreement that would reasonably be expected to facilitate the timely consummation of the Merger
or the consummation of the transactions contemplated thereby that the CEC Board (upon the recommendation of the CEC Special Committee) has recommended that CEC’s stockholders vote in favor of; and 

(b) against any Acquisition Proposal (including any Superior Proposal) and against any action, omission, proposal, transaction
or agreement that would reasonably be expected to (i) impede, interfere with, delay, discourage, adversely affect or inhibit the timely consummation of the Merger, (including any adjournment or postponement of the CEC Stockholders Meeting
(except as contemplated by clause 1.1(a) above)) or (ii) change in any manner the voting rights of any class of shares of CAC or CEC, amend the organizational documents of CAC or CEC or otherwise amend the capital structure of CAC or CEC
(in each case, other than, and other than pursuant to, the A&R Merger Agreement and the Merger). 
 For the avoidance of doubt, pursuant to the A&R
Merger Agreement, in no event shall any offer, proposal or inquiry relating to, or any third party indication of interest in, a CIE Sale Transaction, constitute an Acquisition Proposal or a Superior Proposal. 

  
 2 

 1.2 Other Voting. Subject to Section 4, VoteCo shall vote in its sole
discretion on all issues other than those specified in Section 1.1 hereof that may come before a meeting of, or action by written consent by, the stockholders of CEC in a manner that would not reasonably be expected to materially impede,
interfere with, delay, discourage, adversely affect or inhibit the timely consummation of the Merger or the CEOC Plan. 
 1.3 Other
Agreements. 
 (a) VoteCo hereby agrees that it shall not, and shall cause its Members (as identified on the signature
pages hereto) to not, directly or indirectly, (i) solicit, initiate or knowingly encourage any inquiries, offers or the making of any proposal or announcement that constitutes or would reasonably be expected to lead to any Acquisition Proposal,
(ii) engage in, continue or otherwise participate in any negotiations or discussions with any third party (other than CEOC, CAC or CEC or their respective Representatives) regarding or that would reasonably be expected to lead to any
Acquisition Proposal, (iii) furnish any nonpublic information regarding CAC or CEC or any of their respective subsidiaries to any Person (other than CEOC, CAC or CEC or their respective Representatives) in connection with or in response to any
Acquisition Proposal, (iv) alone or with any other Person, make, or announce an intention to make, an Acquisition Proposal or (v) resolve or agree to do any of the foregoing. 

(b) VoteCo shall, and shall cause its Members to, immediately cease and cause to be terminated all existing activities,
discussions or negotiations it has had with any Person with respect to any Acquisition Proposal and shall promptly inform CEOC, CAC and CEC if it receives any inquiry or proposal relating to an Acquisition Proposal and the details thereof. 

(c) VoteCo hereby (x) waives and agrees not to exercise any rights of appraisal or rights to dissent from the Merger that
VoteCo may have, or that may arise, under the A&R Merger Agreement, the DGCL or otherwise, with respect to the A&R Merger Agreement or the Merger and (y) represents that, as a result of VoteCo’s obligation pursuant to
Section 1.1(a), the Holders will not have appraisal rights or rights to dissent from the Merger under the A&R Merger Agreement or the DGCL. VoteCo shall not, and shall cause its Members to not, bring, commence, institute, maintain,
prosecute, participate or join in or voluntarily aid (and agrees to take all actions necessary to opt out of any class in any class action with respect to) any claim or Proceeding (derivative or otherwise) in law or in equity in any court or before
any Governmental Entity, against CAC or CEC or any of their respective successors or assigns or any other Person (i) challenging the validity of, or seeking to enjoin the operation of, any provision of this Agreement or the A&R Merger
Agreement or prevent, impair or delay the consummation of the transactions contemplated hereby or thereby, or (ii) alleging the execution and delivery of the A&R Merger Agreement by CAC or CEC,

  
 3 

 
the approval of the A&R Merger Agreement by the CAC Board or the CEC Board, or any other action in connection with the negotiation and entry into this Agreement, the A&R Merger Agreement,
the CEOC Plan and the transactions contemplated hereby and thereby breached any fiduciary duty of any Person. 
 (d) VoteCo
shall not, and shall cause its Members to not, take or agree to take or commit to take any action with the intent of, or for the purpose of or that would reasonably be expected to have the effect of, in each case in whole or in part, materially
preventing or delaying the consummation of, or materially impairing the ability of any party to consummate, the transactions contemplated by the A&R Merger Agreement or the CEOC Plan. 

SECTION 2. Representations and Warranties of VoteCo. VoteCo hereby represents and warrants to CAC as follows: 

2.1 Voting Matters. VoteCo has, and will have throughout the Voting Period, as true and lawful proxy and attorney-in-fact for the
holders of the Subject Shares pursuant to the CEC Irrevocable Proxy, the sole power to vote or cause to be voted the Subject Shares on the matters specified in this Agreement, free and clear of any and all claims, liens, encumbrances or restrictions
on the right to vote the Subject Shares, except as may exist by reason of this Agreement. Other than the CEC Irrevocable Proxy, VoteCo is not a party to, and the Subject Shares are not otherwise subject to, any agreement, arrangement or other
understanding (i) that would constitute a breach of Section 4.1 if entered into during the Voting Period, or (ii) that would reasonably be expected to materially delay, impair or restrict VoteCo’s ability to perform its
obligations under this Agreement. The CEC Irrevocable Proxy (x) is in full force and effect and constitutes the legal, valid and binding obligation of each of the parties listed in Schedule A thereto, enforceable in accordance with its terms by
VoteCo against each of such parties, (y) has not been amended or terminated since it was entered into on November 22, 2010 (and no Release Event (as defined therein) has occurred or will occur during the Voting Period) and (z) will
not be amended or waived in any way that would reasonably be expected to materially delay, impair or restrict VoteCo’s ability to perform its obligations under this Agreement, or terminated, prior to the obtaining of the CEC Requisite Vote.

 2.2 Organization. VoteCo is a limited liability company duly formed, validly existing and in good standing under the laws of the
State of Delaware. 
 2.3 Authority Relative to this Agreement. 

(a) VoteCo has all requisite limited liability company power and authority to execute and deliver this Agreement and to
perform its obligations hereunder. 
 (b) The execution and delivery of this Agreement by VoteCo and the performance of its
obligations hereunder and the consummation of the transactions contemplated hereby have been duly and validly authorized by all necessary and appropriate limited liability company or other action on behalf of VoteCo. 

  
 4 

 (c) This Agreement has been duly and validly executed and delivered by VoteCo
and, assuming the due authorization, execution and delivery hereof by CAC, constitutes a valid and binding obligation of VoteCo, enforceable against VoteCo in accordance with its terms, except to the extent that enforcement is limited by bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and similar Laws of general applicability relating to or affecting creditors’ rights or by general equitable principles (whether considered in a proceeding at law or in equity). 

2.4 No Conflict. Except for any filing that may be required by applicable federal securities or antitrust laws, the execution and
delivery of this Agreement by VoteCo does not, and the performance of its obligations under this Agreement will not, (a) require any consent or approval by, filing with, or notification to, any Governmental Entity or any other Person by VoteCo,
(b) violate or conflict with or result in any breach of any provision of the organizational documents of VoteCo, (c) violate or conflict with, or result in any breach of or default (with or without notice or lapse of time or both) under,
or give to any other Person (with or without notice or lapse of time or both) any right of termination, acceleration or cancellation of, or result in the creation of any claim, lien, encumbrance or restriction on the right to vote or Transfer the
Subject Shares under, any provision of any agreement to which VoteCo is a party or any instrument, permit, concession, franchise or license of VoteCo or (d) violate or conflict with any Law applicable to VoteCo or to VoteCo’s properties or
assets, except in the case of the foregoing clauses (a), (c) and (d) only, for any of the foregoing as would not reasonably be expected to materially delay, impair or restrict VoteCo’s ability to perform its obligations under this
Agreement. 
 2.5 Subject Shares. Other than the Subject Shares, VoteCo does not hold or control any other equity interests
possessing voting rights in or with respect to CEC. The Holders, in the aggregate, are the direct holders of record of all of the Subject Shares, free and clear of any and all claims, liens, encumbrances or restrictions on the right to vote the
Subject Shares, except as may exist by reason of this Agreement or the CEC Irrevocable Proxy. The Subject Shares constitute all of the equity interests of CEC beneficially owned by any of the Sponsors (as defined in the Original CEOC Plan). Other
than such consents as have already been obtained, no consent of any Person is required for VoteCo or any Holder to execute and deliver this Agreement. 

2.6 Dispositive Power. VoteCo has, and will have throughout the Voting Period, as true and lawful proxy and attorney-in-fact for the
applicable holders of the Subject Shares pursuant to the CEC Irrevocable Proxy, the sole power to direct and effect the sale, transfer or other disposition of all or any part of the Subject Shares, if, as and when so determined in the sole
discretion of VoteCo and, without limiting the foregoing, the CEC Irrevocable Proxy provides VoteCo with the sole ability to dispose of the Subject Shares and use the proceeds thereof to satisfy obligations VoteCo has on account of a breach of this
Agreement. Pursuant to the CEC Irrevocable Proxy, the Subject Shares may not be Transferred by, or at the direction of, the Holders or any Person other than VoteCo. 

  
 5 

 SECTION 3. Representations and Warranties of CAC. CAC hereby represents and warrants to
VoteCo as of the date of this Agreement as follows: 
 3.1 Organization. CAC is a corporation duly incorporated, validly existing and
in good standing under the laws of the state of Delaware. 
 3.2 Authority Relative to this Agreement. 

(a) CAC has all requisite corporate power and authority to execute and deliver this Agreement and to perform its obligations
hereunder. 
 (b) The execution and delivery of this Agreement by CAC and the performance of its obligations hereunder and
the consummation of the transactions contemplated hereby have been duly and validly authorized by all necessary and appropriate corporate action by the board of directors of CAC. This Agreement has been duly and validly executed and delivered by CAC
and, assuming the due authorization, execution and delivery by VoteCo, constitutes a valid and binding obligation of CAC, enforceable against CAC in accordance with its terms, except to the extent that enforcement is limited by bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and similar Laws of general applicability relating to or affecting creditors’ rights or by general equitable principles (whether considered in a proceeding at law or in equity). 

3.3 No Conflict. Except for any filings that may be required by applicable federal securities or antitrust laws, the execution and
delivery of this Agreement by CAC do not, and the performance of its obligations hereunder will not, (a) require any consent or approval by, filing with, or notification to, any Governmental Entity or any other Person by CAC, (b) violate
or conflict with or result in any breach of any provision of the articles of incorporation or by-laws of CAC, (c) violate or conflict with, or result in any breach of or default (with or without notice or lapse of time or both) under, or give
to any other Person (with or without notice or lapse of time or both) any right of termination, acceleration or cancellation of, any provision of any agreement to which CAC is a party or any instrument, permit, concession, franchise or license of
CAC, or (d) violate or conflict with any Law applicable to CEC or its properties or assets, except, in the case of the foregoing clauses (a), (c) and (d) only for any of the foregoing as would not reasonably be expected to materially
impair or restrict CAC’s ability to perform its obligations under this Agreement. 

  
 6 

 SECTION 4. Additional Agreements. 

4.1 No Other Proxies, Etc. VoteCo hereby covenants and agrees that during the Voting Period, except as otherwise specifically permitted
by this Agreement (including Section 1.1) and except for the CEC Irrevocable Proxy, VoteCo shall not, and shall cause its Members to not, offer or agree to, grant any proxy or power of attorney with respect to, deposit into a voting
trust or enter into a voting arrangement with respect to, whether by proxy, voting agreement or otherwise, any Subject Shares or any interest therein or any other securities convertible into or exercisable for any Company Common Shares, and shall
not, and shall cause its Members to not, amend or terminate the CEC Irrevocable Proxy in any way that would materially adversely impact VoteCo’s ability to carry out its obligations under this Agreement; provided that nothing in this
Section 4.1 shall prevent VoteCo from granting a proxy for any other annual or special meeting of stockholders of CEC in a manner permitted by Section 1.2. During the Voting Period, no VoteCo Member shall withdraw as a member of VoteCo
(other than in the event of such Member’s death, disability or termination as an executive of the applicable Sponsor), nor shall VoteCo admit any new members. 

4.2 Additional Shares. In the event of a share dividend or distribution, or any change in the Company Common Shares by reason of any
share dividend, distribution, subdivision, recapitalization, reclassification, consolidation, conversion or the like, including the exchange of any securities convertible into or exercisable for any Company Common Shares, or any other acquisition of
(or acquisition of control of) Company Common Shares after the date hereof, the term “Subject Shares” shall be deemed to refer to and include such shares as well as all such share dividends and distributions and any securities into which
or for which any or all of the Subject Shares may be changed or exchanged or which are received in such transaction. 
 4.3
Transfer. 
 (a) During the Voting Period, VoteCo shall not, and shall cause its Members to not, permit or allow any
of the Subject Shares to be, and shall cause the Subject Shares not to be, directly or indirectly, Transferred, and shall not make any offer or enter into any agreement providing for a Transfer of any of the Subject Shares and shall not commit to
do, consent to, or otherwise facilitate any of the foregoing, except in cases where the transferee executes a customary joinder agreeing to be bound by this Agreement in the same manner as VoteCo, including full recourse to the Subject Shares so
Transferred for any violation of this Agreement by VoteCo (including any such violation by VoteCo as a result of an action of any Member) or such transferee. Any attempted Transfer in violation of this Agreement shall be void ab initio. If any
involuntary Transfer of any or all of the Subject Shares shall occur (including, if applicable, a sale by trustee in any bankruptcy, or a sale to a purchaser at any creditor’s or court sale), or any other involuntary action in violation of this
Section 4.3 shall occur resulting in any person having beneficial ownership over any or all of the Subject Shares or otherwise having the power to exercise, in whole or in part, any control over any or all of the Subject Shares with
respect to any of the matters contemplated by this Agreement, then the transferee (which term, as used herein, shall include any and all transferees and subsequent transferees of the initial transferee) or such other person shall take and hold the
Subject Shares subject to all of the restrictions, liabilities and rights under this Agreement, which shall continue in full force and effect until valid termination of this Agreement. 

  
 7 

 (b) VoteCo agrees to Transfer, or cause the Transfer of, any or all of the
Subject Shares, and to apply any or all of the proceeds of such sale of the Subject Shares, to satisfy any finally determined liability of, or finally determined damages payable by, VoteCo for breach of the agreements, representations and warranties
under this Agreement that exists after giving effect to any specific performance obtained under Section 6.9 (whether such breach arises from an action, omission or inaccuracy of VoteCo, any Member of VoteCo or, with respect to this
Section 4.3, Section 6.11 or Section 6.12, any Holders) (a “VA Breach”). 
 4.4
Notice of Amendment. At any time during the Voting Period, CAC shall: 
 (a) provide prompt (and in any event within
one (1) calendar day) Notice (as defined below) to VoteCo of any amendment, waiver or other modification to the A&R Merger Agreement, the CEOC Plan filed with the Bankruptcy Court on June 28, 2016 (the “Original CEOC
Plan”) or the RSAs, including by any other writing or agreement (any such amendment, waiver or other modification, an “Amendment”), together with an executed copy of such Amendment; and 

(b) provide prompt (and in any event within two (2) calendar days) Notice of any request for any such amendment, waiver
or other modification 
 4.5 Support of Restructuring. VoteCo hereby agrees to, and shall cause its Members to: 

(a) consent to those actions contemplated by the CEOC Plan, the RSAs or otherwise required to be taken to effectuate the
Restructuring, including entering into all documents and agreements necessary to consummate the Restructuring, in each case, to which VoteCo is to be a party pursuant to the CEOC Plan or the RSAs, including voting the Subject Shares in favor of any
shareholder vote necessary for the issuance of New CEC Common Equity (as defined in the CEOC Plan) pursuant to the CEOC Plan, as long as such issuance is recommended by the CEC Special Committee or the CEC Board of Directors; 

(b) support the Restructuring and, to the extent applicable, vote in favor of the CEOC Plan, when and if properly solicited to
do so under the Bankruptcy Code, all Equity Interests now or hereafter beneficially owned by VoteCo or for which it now or hereafter serves as the nominee, investment manager, or advisor for beneficial holders of Claims (and not withdraw or revoke
its vote with respect to the CEOC Plan, or transfer or limit any rights to vote); and 

  
 8 

 (c) not take any action materially inconsistent with the transactions expressly
contemplated by the CEOC Plan or the RSAs, or that would materially delay or obstruct the consummation of the Restructuring, including, without limitation, commencing, or joining with any Person in commencing, any litigation or involuntary case for
relief under the Bankruptcy Code against the Debtors or CEC. 
 SECTION 5. Termination. 

5.1 This Agreement shall terminate upon VoteCo providing Notice of termination to CAC within five (5) calendar days after receipt of
(i) any Amendment to the A&R Merger Agreement that adversely affects the interests of VoteCo (or after any such Amendment should have been provided) or (ii) any Amendment to the Original CEOC Plan or either RSA that materially
adversely affects the interests of VoteCo (or after any such Amendment should have been provided). Notwithstanding the foregoing, (a) VoteCo shall have no right to terminate this Agreement pursuant to Section 5.1(i) or (ii) if VoteCo
previously consented to such Amendment and (b) VoteCo shall have no right to terminate this Agreement pursuant to Section 5.1(i) if the CEC Special Committee approved such Amendment, unless VoteCo or any VoteCo Related Entity is
disproportionately adversely affected by such Amendment relative to CEC’s other stockholders, in which case this clause (b) shall not apply and VoteCo shall have the right to terminate this Agreement pursuant to Section 5.1(i). 

5.2 This Agreement shall terminate automatically immediately two (2) Business Days after (x) VoteCo provides Notice of termination
to CAC (with a copy to the 3PBs) upon the occurrence of any of the following, or (y) CEC or the CEC Special Committee provides Notice of termination to VoteCo and CAC (with a copy to the 3PBs), upon the occurrence of (a) or (c) of the
following: 
 (a) a CEC Adverse Recommendation Change prior to obtaining the CEC Requisite Vote; 

(b) the termination of the CEC-VoteCo Agreement; 

(c) the termination of the A&R Merger Agreement, except to the extent such termination is caused by any material breach of
this Agreement by VoteCo; 
 (d) December 31, 2017, provided that this clause (d) shall not be a termination event
if the failure of the Effective Time to occur by such date was caused by a breach of this Agreement by VoteCo; or 
 (e) the
Effective Time. 

  
 9 

 Upon the termination of this Agreement pursuant to this Section 5, the parties shall be
released from their respective commitments, undertakings and agreements pursuant to this Agreement, and there shall be no liability or obligation on the part of any party pursuant to this Agreement; provided that no such termination shall relieve
any party from liability for any willful breach of this Agreement prior to such termination and the covenants in Section 6.12 will survive for such purpose until the later of (X) a period of four (4) months following such termination
or (Y) the date of final resolution of any formal claim for such willful breach made prior to the end of such four (4) month period. 

SECTION 6. Miscellaneous. 

6.1 Publication. 

(a) VoteCo hereby permits CAC to publish and disclose, in any document or schedule filed with the SEC, or in any other
regulatory filing in connection with the A&R Merger Agreement or the Chapter 11 Cases, this Agreement and the terms hereof, subject to the prior written consent of VoteCo, not to be unreasonably withheld. CAC shall provide VoteCo a reasonable
period to review any such disclosure (and CAC shall take into account any reasonable comments of VoteCo); provided that CAC may disclose and discuss this Agreement and the terms hereof with any gaming regulatory authority without the prior consent
of VoteCo. 
 (b) CAC hereby permits VoteCo to publish and disclose, in any document or schedule filed with the SEC, this
Agreement and the terms hereof, subject to prior written consent of CAC, not to be unreasonably withheld. VoteCo shall provide CAC a reasonable period to review any such disclosure (and VoteCo shall take into account any reasonable comments of CAC);
provided, however, that notwithstanding the foregoing, VoteCo may file one or more amendments to its statement of beneficial ownership on Schedule 13D pertaining to the Subject Shares describing this Agreement and the terms thereof and include a
copy of this Agreement in such filing without the prior consent of CAC, and further provided that VoteCo may disclose and discuss this Agreement and the terms hereof with any gaming regulatory authority without the prior consent of CAC. 

6.2 Expenses. Subject to any other agreement between the parties, all costs and expenses incurred in connection with this Agreement
shall be paid by the party incurring such costs and expenses. 
 6.3 Entire Agreement; No Third Party Beneficiaries. 

(a) This Agreement, together with the documents referred to herein, constitutes the entire agreement and supersedes all prior
agreements and understandings, both written and oral, between the parties with respect to the subject matter hereof; provided that if there is any conflict between this Agreement and the A&R Merger Agreement, this Agreement shall control.
This Agreement is intended to create a contractual relationship between VoteCo and CAC and is not intended to create, and does not create, any agency, partnership, joint venture or any like relationship between the parties. 

  
 10 

 (b) This Agreement is not intended to, and shall not, confer upon any Person not
a party any rights or remedies hereunder, except that (1) (i) CEC is an intended third-party beneficiary of VoteCo’s obligations pursuant to Section 1.1. CEC, the CAC Special Committee and the CEC Special Committee are
intended third-party beneficiaries of VoteCo’s obligations pursuant to Section 5.2(y) (and such provision may not be amended without their prior written consent) and (iii) (x) if the Amended 1L Bond RSA is entered into, the
Consenting Creditors (as defined in the Amended 1L Bond RSA), (y) if the Amended 1L Bond RSA is entered into, the Consenting Bank Creditors (as defined in that certain First Amended and Restated Restructuring Support and Forbearance Agreement,
dated as of June 21, 2016 and attached to the Form 8-K filed by CEC on June 21, 2016 (the “Bank RSA”) and (z) CEOC are intended third-party beneficiaries of the provisions hereunder, in each case, whether or not
expressly named in such provisions, entitled to enforce such obligations as if a party directly hereto (collectively the “3PBs”) and (2) the VoteCo Related Entities are intended third-party beneficiaries of the provisions of
Section 6.11, entitled to enforce such provisions as if a party directly hereto. 
 (c) The “Amended 1L Bond
RSA” means that certain Sixth Amended and Restated Restructuring Support and Forbearance Agreement, among CEC, the Debtors and the Consenting Creditors (as defined therein), if entered into. 

6.4 Parties in Interest and Assignment. This Agreement shall be binding upon, inure solely to the benefit of, and be enforceable by,
the parties, the 3PBs and their successors and permitted assigns. VoteCo may not assign any rights or delegate any obligations hereunder without the prior written consent of CAC, CEOC, the Requisite Consenting Creditors (as defined in the Bank RSA)
if the Amended 1L Bond RSA is entered into and, to the extent relating to Section 1.1, CEC; CAC may not assign any rights or delegate any obligations hereunder without the prior written consent of VoteCo, CEOC and the Requisite
Consenting Creditors (as defined in the Bank RSA) if the Amended 1L Bond RSA is entered into; and either such consent can be granted or denied in the sole, exclusive and non-appealable discretion of the party whose consent is sought. Any such
purported assignment or delegation made in violation of the foregoing shall be null and void. VoteCo acknowledges this Agreement and all of the parties’ respective obligations hereunder shall survive and be fully enforceable in accordance with
its terms notwithstanding the commencement and pendency of any CEC Chapter 11 Case. 
 6.5 Amendment; No Waiver. This Agreement may
not be amended except by an instrument in writing between CAC and VoteCo and consented to by CEOC, the Requisite Consenting Creditors (as defined in the Bank RSA) if the Amended 1L Bond RSA is entered into and, to the extent relating to
Section 1.1, CEC. Neither the failure nor any delay by any party in exercising any right, power or privilege under this Agreement will operate as a waiver of such right, power or privilege, and no single or partial exercise of any such
right, 

  
 11 

 
power or privilege will preclude any other or further exercise of such right, power or privilege or the exercise of any other right, power or privilege. In addition, (a) no claim or right
arising out of this Agreement can be discharged by any party, in whole or in part, by a waiver or renunciation of the claim or right unless in writing signed by such party (and consented to by CEOC, the Requisite Consenting Creditors (as defined in
the Bank RSA) if the Amended 1L Bond RSA is entered into and, to the extent relating to Section 1.1, CEC), (b) no waiver that may be given by any party unless consented to by CEOC, the Requisite Consenting Creditors (as defined in
the Bank RSA) if the Amended 1L Bond RSA is entered into and, to the extent relating to Section 1.1, CEC, and any such waiver will not be applicable except in the specific instance for which it is given and (c) no notice to or
demand on a party will be deemed to be a waiver of any obligation of such party and no notice from or demand by a party will be deemed to be a waiver of such party’s right to take further action without notice or demand as provided in this
Agreement. 
 6.6 Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced
by any rule of Law, or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of this Agreement is not materially affected in any manner
adverse to any party, including the 3PBs. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties shall negotiate in good faith to modify this Agreement so as to effect the original
intent of the parties as closely as possible in a manner mutually acceptable to the parties and the applicable 3PBs in order that the terms of this Agreement remain as originally contemplated to the fullest extent possible. 

6.7 Notices. Each notice and other communication hereunder (a “Notice”) shall be in writing and shall be deemed duly
given (a) on the date of delivery if delivered personally, (b) by facsimile upon confirmation of receipt or (c) on the second Business Day following the date of dispatch if delivered by a recognized express courier service. All
Notices shall be delivered as set forth below or under such other instructions as may be designated in writing by the party to receive such Notice. 

if to CAC: 
 Caesars Acquisition
Company 
 One Caesars Palace Drive 

Las Vegas, Nevada 89109 

Facsimile: (702) 892-2616 

Attention: General Counsel 

  
 12 

 with copies (which shall not constitute notice) to: 

Skadden, Arps, Slate, Meagher & Flom LLP 

300 South Grand Avenue, Suite 3400 

Los Angeles, CA 90071 
 Facsimile:
(213) 621-5200 and (213) 621-5127 
 Attention: Van Durrer II, Esq. and Andrew D. Garelick, Esq. 

Latham & Watkins LLP 

885 Third Avenue 
 New York, New
York 10022 
 Facsimile: (212) 751-4864 

Attention: Raymond Y. Lin, Esq. and Michael Treska, Esq. 

if to VoteCo: 
 Hamlet Holdings
LLC 
 c/o Apollo Management, L.P. 

9 West 57th St., 43rd Floor 

New York, New York 10019 

Attention: John J. Suydam 
 and

 Hamlet Holdings LLC 
 c/o
TPG Global, LLC 
 301 Commerce St., Suite 3300 

Ft. Worth, Texas 76102 

Attention: General Counsel 
 with
a copy (which shall not constitute notice) to: 
 Akin Gump Strauss Hauer & Feld, LLP 

One Bryant Park 
 Bank of America
Tower 
 New York, New York 10036-6745 

Facsimile: (212) 872-1002 

	 	Attention:	Daniel I. Fisher 

	 	    	Steven M. Pesner 

 and 

Kasowitz Benson Torres & Friedman LLP 

1633 Broadway 
 New York, New York
10019 
 Facsimile: (212) 506-1800 

	 	Attention:	Marc E. Kasowitz 

	 	    	Joshua Greenblatt 

  
 13 

 with a copy, in each case (i) to Caesars Entertainment Operating Company, Inc., with a copy
to Kirkland & Elllis LLP, as set forth in the CAC/CEOC RSA and (ii) if the Amended 1L Bond RSA is entered into, to Kramer Levin Naftalis & Frankel LLP, as set forth in the Amended 1L Bond RSA and Stroock &
Stroock & Lavan LLP, as set forth in the Bank RSA. 
 6.8 Governing Law. This Agreement will be governed by, and construed
in accordance with, the Laws of the State of Delaware, without regard to any principles of conflicts of law thereof that are not mandatorily applicable by Law and would permit or require the application of the Laws of another jurisdiction. In
furtherance of the foregoing, the parties hereby acknowledge and agree that it is their intent that the Applicable Courts not apply the internal affairs doctrine for the purposes of any litigation, action, suit or other proceeding with respect to
the subject matter hereof. 
 6.9 Specific Performance; Submission to Jurisdiction. The parties agree that money damages would be
both incalculable and an insufficient remedy and that irreparable damage would occur if any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that,
subject to the discretion of the Applicable Courts, the parties, any of the 3PBs and any of the VoteCo Related Entities shall be entitled to an injunction or other equitable relief to prevent breaches or violations of this Agreement and to enforce
specifically the terms and provisions of this Agreement in any Applicable Court, this being in addition to any other remedy to which they are entitled at law or in equity. Moreover, and in recognition of the foregoing, each of the parties hereby
waives (a) any defense in any action for specific performance of this Agreement that a remedy at law would be adequate and (b) any requirement under any law for any party to post security as a prerequisite to obtaining equitable relief.
Each party irrevocably and unconditionally submits to the jurisdiction of the Chosen Courts for any action or proceeding arising out of or relating to this Agreement (provided that with respect to any action or proceeding involving any 3PB, the
United States District Court for the Northern District of Illinois shall have exclusive jurisdiction; provided further, however, that nothing in this Agreement shall be deemed a consent or submission by CAC to the jurisdiction of the United States
Bankruptcy Court for the Northern District of Illinois for any purpose, including with respect to any disputes under or relating to this Agreement, and the 3PBs, CEC, and VoteCo reserve all rights in this regard (the Chosen Courts, together with the
foregoing court pursuant to these two provisos, the “Applicable Courts”)), and hereby irrevocably and unconditionally agrees that all claims in respect of such action or proceeding may be heard and determined in such court. Each
party hereby irrevocably and unconditionally waives, to the fullest extent that it may effectively do so, any defense of an inconvenient forum which such party may now or hereafter have to the maintenance of such action or proceeding. The parties
further agree (i) to the extent permitted by Law, that final and nonappealable judgment against any of them in any 

  
 14 

 
action or proceeding contemplated above shall be conclusive and may be enforced in any other jurisdiction within or outside the United States by suit on the judgment, a certified copy of which
shall be conclusive evidence of the fact and amount of such judgment and (ii) that service of process upon such party in any such action or proceeding shall be effective if Notice is given in accordance with Section 6.7. 

6.10 Interpretation. The parties have participated jointly in negotiating and drafting this Agreement. If an ambiguity or a question
of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provision of this
Agreement. When a reference is made in this Agreement to sections or subsections, such reference shall be to a section or subsection of this Agreement unless otherwise indicated. The headings contained in this Agreement are for reference purposes
only and shall not affect in any way the meaning or interpretation of this Agreement. Whenever the words “include,” “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words
“without limitation.” The words “herein,” “hereof,” “hereunder” and words of similar import shall be deemed to refer to this Agreement as a whole, and not to any particular provision of this Agreement. Any
pronoun shall include the corresponding masculine, feminine and neuter forms. References to “party” or “parties” in this Agreement mean CAC and VoteCo. 

6.11 Absolute Non-Recourse to VoteCo Related Entities. 

(a) For the avoidance of doubt and notwithstanding any other provision of this Agreement to the contrary, the covenants,
agreements and commitments of VoteCo hereunder are only made by VoteCo and are applicable to the conduct of VoteCo and its Members and, in the case of Section 4.3, Section 6.11 and Section 6.12, the Holders, and
shall not impose any liability on any of VoteCo’s Affiliates or its and their respective Members, Holders, partners, members, equityholders, officers, managers, directors, employees, attorneys, accountants, agents, advisors and Representatives
(each, a “VoteCo Related Entity” and collectively, the “VoteCo Related Entities”), except to the extent of recourse to the Subject Shares in accordance with this Section 6.11 and
Section 6.12. 
 (b) Notwithstanding any other provision of this Agreement to the contrary: 

 

	 	(i)	no recourse under this Agreement shall be had against any VoteCo Related Entity, whether by the enforcement of any assessment or by any legal or equitable proceeding or by virtue of any Applicable Law; other than, in
the case of Section 4.3, Section 6.11 and Section 6.12, the Holders and, in such cases, with recourse only to the Subject Shares; 

  
 15 

	 	(ii)	this Agreement may only be enforced against, and any claim or cause of action based upon, arising out of, or otherwise related to this Agreement may only be brought against, VoteCo, with full recourse to the Subject
Shares and, in the case of Section 4.3, Section 6.11 and Section 6.12, the Holders, in each case, with recourse only to the Subject Shares; and 

 

	 	(iii)	CAC agrees with, acknowledge and covenant to comply with the previous clauses (i) and (ii). 

(c) None of the VoteCo Related Entities shall have any liability or obligations (whether in contract, tort, equity or
otherwise) under this Agreement or for any claim based on, in respect of, or by reason of the transactions contemplated hereby, including with respect to any breaches of this Agreement, except to the extent (and only to the extent) of recourse to
the Subject Share in accordance with this Section 6.11 and Section 6.12. VoteCo acknowledges and agrees that the provisions of Section 1.3, Section 4.1, Section 4.3, Section 4.5
and Section 6.12 are intended to, and shall, impose liability on VoteCo, with full recourse to the Subject Shares, for any VA Breach, notwithstanding that the Members of VoteCo and the Holders have no liability for such actions or
omissions, except, in the case of any Holder, for breaches by such Holder of Section 4.3 or Section 6.12, in each case, with recourse only to the Subject Shares. 

(d) The limitations and provisions of this Section 6.11 shall apply to each 3PB in all respects in the same manner
as they apply to CAC. 
 6.12 Representations, Warranties and Agreements of the Holders. Without limiting the provisions of
Section 6.11 relating to lack of recourse other than to the Subject Shares, each of the Holders represents, warrants and agrees that: 

(a) The representations and warranties set forth in the second sentence of Section 2.1, Sections 2.2
through 2.4 and the last sentence of Section 2.5, in each case, as if such Holder were substituted for VoteCo are true and correct. 

(b) VoteCo has, and will continue to have throughout the Voting Period and thereafter as long as it has obligations under this
Agreement, as true and lawful proxy and attorney-in-fact for the applicable holders of the Subject Shares pursuant to the CEC Irrevocable Proxy and pursuant to this Section 6.12(a), the sole and irrevocable right and power (i) to
direct and effect the sale, transfer or other disposition of all or any part of the Subject Shares, (ii)(A) to transfer any or all of the Subject Shares and (B) to sell any or all of the Subject Shares and to apply any or all of the proceeds of
such sale of the Subject Shares, in each case of (A) and (B), to satisfy any finally determined liability or finally determined damages for a VA Breach, and that none of the foregoing will constitute a breach of the CEC Irrevocable
Proxy; 

  
 16 

 (c) VoteCo will not have any liability or obligation to any Holder in connection
with the actions set forth in Section 6.12(a) or Section 4.3(b) and such Holder will not have any claim to such Subject Shares or proceeds therefrom to the extent such Subject Shares or proceeds are used to satisfy any
finally determined liability or finally determined damages for a VA Breach; 
 (d) no action is required on the part of
such Holder in order to Transfer the Subject Shares in accordance with the foregoing and VoteCo is hereby authorized to execute and deliver on behalf of such Holder any instruments or agreements necessary to effectuate the foregoing; 

(e) all of the Subject Shares beneficially owned by such Holder are subject to all of the provisions of this Agreement and are
available to secure performance of this Agreement; 
 (f) any and all of the Subject Shares beneficially owned by such
Holder may be transferred or sold by VoteCo and the proceeds of such sale applied, to satisfy any finally determined liability or finally determined damages for a VA Breach; and 

(g) the CEC Irrevocable Proxy (A) is in full force and effect and constitutes the legal, valid and binding obligation of
such Holder, enforceable in accordance with its terms by VoteCo against such Holder, (B) has not been amended or terminated since it was entered into on October 21, 2013 (and no Release Event (as defined therein) has occurred or will occur
during the Voting Period) and (C) will not be amended or waived (in a manner that would reasonably be expected to materially delay, impair or restrict VoteCo’s ability to perform its obligations under this Agreement) or terminated prior to
the obtaining of the CEC Requisite Vote. 
 (h) This Section 6.12 is intended to benefit and may be enforced by
the VoteCo Related Entities and shall be binding on all successors and assigns of CAC and any 3PB. 
 6.13 Representations, Warranties
and Agreements of the Members. Without limiting the provisions of Section 6.11 relating to lack of recourse, each of the Members represents and warrants that it is not aware of any breach as of the date hereof of any of the
representations and warranties of VoteCo or the Holders set forth herein. 
 6.14 Counterparts. This Agreement may be executed in
separate counterparts, each of which shall be considered one and the same agreement and shall become effective when each of the parties has delivered a signed counterpart to the other party, it being understood that both parties need not sign the
same counterpart. Delivery of an executed signature page of this Agreement by facsimile transmission or electronic “.pdf” shall be effective as delivery of a manually executed counterpart hereof. 

  
 17 

 6.15 Certain Definitions. 

(a) “beneficial ownership” by a Person of any securities includes ownership by any Person who, directly or
indirectly, through any contract, arrangement, understanding, relationship or otherwise, has or shares (i) voting power which includes the power to vote, or to direct the voting of, such security; and/or (ii) investment power which
includes the power to dispose, or to direct the disposition, of such security; and shall otherwise be interpreted in accordance with the term “beneficial ownership” as defined in Rule 13d-3 adopted by the SEC under the Exchange Act;
provided that a person shall be deemed to have beneficial ownership over any securities which may be acquired by such person pursuant to any contract, arrangement or understanding or upon the exercise of conversion rights, exchange rights, warrants
or options, or otherwise (irrespective of whether the right to acquire such securities is exercisable immediately or only after the passage of time, including the passage of time in excess of 60 days, the satisfaction of any conditions, the
occurrence of any event or any combination of the foregoing). The terms “beneficial owner,” “beneficially own,” “beneficially owned” and similar terms shall have a correlative meaning. 

(b) “Equity Interests” means any shares of CEC Common Stock or other equity interest in CEC, or any option,
warrant, right or security convertible, exchangeable or exercisable therefor or other instrument, obligation or right the value of which is based on any of the foregoing. 

(c) “Transfer” means any direct offer, sale, lease, assignment, encumbrance, pledge, hypothecation,
disposition, tender or other transfer (by merger, liquidation, dissolution, distribution, operation of Law or otherwise), either voluntary or involuntary, of any capital stock or interest in any capital stock, in whole or in part, in each case by
VoteCo or any Holder. 
 [Rest of page intentionally left blank]  

  
 18 

 IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed as of the date
first above written. 
  

			
	CAESARS ACQUISITION COMPANY
		
	By:	 	/S/ MITCH GARBER
	 Name: Mitch Garber
 Title: Chief
Executive Officer

 [Signature Page to CEC Voting Agreement] 

 
			
	HAMLET HOLDINGS LLC
		
	By:	 	/s/ LEON D. BLACK
	Name:	 	Leon Black, solely on behalf of VoteCo in his capacity as a Member
	Title:	 	Member
		
	By:	 	/s/ DAVID BONDERMAN
	Name:	 	David Bonderman, solely on behalf of VoteCo in his capacity as a Member
	Title:	 	Member
		
	By:	 	/s/ JAMES COULTER
	Name:	 	James Coulter, solely on behalf of VoteCo in his capacity as a Member
	Title:	 	Member
		
	By:	 	/s/ JOSHUA HARRIS
	Name:	 	Joshua Harris, solely on behalf of VoteCo in his capacity as a Member
	Title:	 	Member
		
	By:	 	/s/ MARC ROWAN
	Name:	 	Marc Rowan, solely on behalf of VoteCo in his capacity as a Member
	Title:	 	Member

 [Signature Page to CEC Voting Agreement] 

 
			
	APOLLO HAMLET HOLDINGS, LLC, solely for purposes of Section 6.12, Section 6.11 and Section 4.3
		
	By:	 	/s/ LAURIE D. MEDLEY
	 Name: Laurie D. Medley
 Title:
Authorized Person

	
	APOLLO HAMLET HOLDINGS B, LLC, solely for purposes of Section 6.12, Section 6.11 and Section 4.3
		
	By:	 	/s/ LAURIE D. MEDLEY
	 Name: Laurie D. Medley
 Title:
Authorized Person

 [Signature Page to CEC Voting Agreement] 

 
			
	TPG HAMLET HOLDINGS, LLC, solely for purposes of Section 6.12, Section 6.11 and Section 4.3
		
	By:	 	/s/ CLIVE BODE
	 Name: Clive Bode
 Title: Vice
President

	
	TPG HAMLET HOLDINGS B, LLC, solely for purposes of Section 6.12, Section 6.11 and Section 4.3
		
	By:	 	/s/ CLIVE BODE
	 Name: Clive Bode
 Title: Vice
President

 [Signature Page to CEC Voting Agreement] 

 
			
	 CO-INVEST HAMLET HOLDINGS, SERIES LLC, solely for purposes of Section 6.12, Section 6.11 and Section 4.3

 
 By: Its Managing Members

 
 Apollo Management VI, L.P.

on behalf of affiliated investment funds
  

By: AIF VI Management, LLC,
 its general partner

		
	By:	 	/S/ LAURIE D. MEDLEY
	 Name: Laurie D. Medley
 Title: Vice
President

	
	 TPG GenPar V, L.P
  

By: TPG GenPar V Advisors, LLC
 its general partner

		
	By:	 	/S/ CLIVE BODE
	 Name: Clive Bode
 Title: Vice
President

	
	 CO-INVEST HAMLET HOLDINGS B, LLC, solely for purposes of Section 6.12, Section 6.11 and Section 4.3

 
 By: Its Managing Members

 
 Apollo Management VI, L.P.

on behalf of affiliated investment funds
  

By: AIF VI Management, LLC,
 its general partner

		
	By:	 	/S/ LAURIE D. MEDLEY
	 Name: Laurie D. Medley
 Title: Vice
President

	
	 TPG GenPar V, L.P
  

By: TPG GenPar V Advisors, LLC
 its general partner

		
	By:	 	/S/ CLIVE BODE
	 Name: Clive Bode
 Title: Vice
President

 [Signature Page to CEC Voting Agreement]

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