Document:

EX-10.27

 Exhibit 10.27 

 
  

SECURITIES PURCHASE AGREEMENT 
  

 
 BY AND AMONG

 THE PURCHASERS LISTED ON EXHIBIT A HERETO 

AND 
 XPONENTIAL
FITNESS, INC. 
 DATED AS OF JUNE 25, 2021 

 TABLE OF CONTENTS 

							
	 	 	 	  	Page	 
	 ARTICLE I SALE AND PURCHASE OF SECURITIES
	  	 	1	 
			
	 Section 1.1
	 	Sale and Purchase of Preferred Shares	  	 	1	 
	 Section 1.2
	 	Closing	  	 	1	 
		
	 ARTICLE II REPRESENTATIONS AND WARRANTIES OF THE COMPANY
	  	 	2	 
			
	 Section 2.1
	 	Organization, Good Standing, Etc.	  	 	2	 
	 Section 2.2
	 	Authorization, Etc.	  	 	2	 
	 Section 2.3
	 	Governmental and Shareholder Approvals	  	 	2	 
	 Section 2.4
	 	Enforceability of Preferred Documents	  	 	2	 
	 Section 2.5
	 	Capitalization; Subsidiaries	  	 	2	 
	 Section 2.6
	 	Litigation; Commercial Tort Claims	  	 	3	 
	 Section 2.7
	 	Financial Condition	  	 	3	 
	 Section 2.8
	 	Compliance with Law, Etc.	  	 	4	 
	 Section 2.9
	 	ERISA	  	 	4	 
	 Section 2.10
	 	Taxes, Etc.	  	 	4	 
	 Section 2.11
	 	Nature of Business	  	 	5	 
	 Section 2.12
	 	Permits, Etc.	  	 	5	 
	 Section 2.13
	 	Properties	  	 	5	 
	 Section 2.14
	 	Full Disclosure	  	 	6	 
	 Section 2.15
	 	Franchise Agreements	  	 	6	 
	 Section 2.16
	 	Environmental Matters	  	 	7	 
	 Section 2.17
	 	Insurance	  	 	8	 
	 Section 2.18
	 	Reserved	  	 	8	 
	 Section 2.19
	 	Intellectual Property	  	 	8	 
	 Section 2.20
	 	Material Contracts	  	 	9	 
	 Section 2.21
	 	Investment Company Act	  	 	9	 
	 Section 2.22
	 	Employee and Labor Matters	  	 	9	 
	 Section 2.23
	 	Customers and Suppliers	  	 	9	 
	 Section 2.24
	 	Anti-Money Laundering and Anti-Terrorism Laws	  	 	9	 
	 Section 2.25
	 	Anti-Bribery and Anti-Corruption Laws	  	 	10	 
	 Section 2.26
	 	Private Offering; No General Solicitation	  	 	10	 
	 Section 2.27
	 	No Broker’s Fees	  	 	10	 
	 Section 2.28
	 	No Other Purchaser Representations and Warranties	  	 	10	 
		
	 ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS
	  	 	11	 
			
	 Section 3.1
	 	Organization, Good Standing, Etc.	  	 	11	 
	 Section 3.2
	 	Authorization, Etc.	  	 	11	 
	 Section 3.3
	 	Governmental and Shareholder Approvals	  	 	11	 
	 Section 3.4
	 	Enforceability of Preferred Documents	  	 	11	 
	 Section 3.5
	 	Investment Matters	  	 	11	 

  
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	 Section 3.6
	 	No Broker’s Fees	  	 	13	 
	 Section 3.7
	 	No Other Company Representations and Warranties	  	 	13	 
		
	 ARTICLE IV CONDITIONS
	  	 	13	 
			
	 Section 4.1
	 	Conditions to the Several, Not Joint, Obligations of the Purchasers	  	 	13	 
	 Section 4.2
	 	Conditions to the Obligations of the Company	  	 	14	 
		
	 ARTICLE V ADDITIONAL COVENANTS
	  	 	15	 
			
	 Section 5.1
	 	Further Assurances	  	 	15	 
	 Section 5.2
	 	Securities Act	  	 	15	 
	 Section 5.3
	 	Use of Proceeds	  	 	15	 
	 Section 5.4
	 	Indemnification; Expenses	  	 	15	 
	 Section 5.5
	 	Tax Treatment	  	 	17	 
	 Section 5.6
	 	HSR	  	 	18	 
	 Section 5.8
	 	Qualified IPO	  	 	18	 
	 Section 5.9
	 	Trigger Event	  	 	18	 
		
	 ARTICLE VI TERMINATION
	  	 	19	 
			
	 Section 6.1
	 	Termination	  	 	19	 
	 Section 6.2
	 	Effect of Termination	  	 	19	 
		
	 ARTICLE VII MISCELLANEOUS
	  	 	19	 
			
	 Section 7.1
	 	Survival	  	 	19	 
	 Section 7.2
	 	Entire Agreement; Parties in Interest	  	 	19	 
	 Section 7.3
	 	No Recourse	  	 	19	 
	 Section 7.4
	 	Governing Law	  	 	20	 
	 Section 7.5
	 	Submission to Jurisdiction	  	 	20	 
	 Section 7.6
	 	Waiver of Jury Trial	  	 	20	 
	 Section 7.7
	 	Remedies	  	 	21	 
	 Section 7.8
	 	Amendments; Waivers	  	 	21	 
	 Section 7.9
	 	Counterparts	  	 	21	 
	 Section 7.10
	 	Assignment	  	 	21	 
	 Section 7.11
	 	Transfer	  	 	21	 
	 Section 7.12
	 	Severability	  	 	22	 
	 Section 7.13
	 	Notice	  	 	22	 
	 Section 7.14
	 	PATRIOT Act	  	 	23	 
	 Section 7.15
	 	Publicity	  	 	23	 
		
	 ARTICLE VIII DEFINITIONS
	  	 	23	 
			
	 Section 8.1
	 	Certain Definitions	  	 	23	 
	 Section 8.2
	 	Construction	  	 	29	 

  
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 Exhibits 
  

	
	Exhibit A – Purchasers
	Exhibit B – Form of Certificate of Designations
	Exhibit C – Form of Amended and Restated LLC Agreement of Xponential Intermediate Holdings LLC
	Exhibit D – Form of Registration Rights Agreement
	Exhibit E – Up-C IPO Steps Memo
	Exhibit F – Form of Lockup Agreement
	Exhibit G – Form of Financing Agreement Amendment
	Exhibit H – Illustrative Conversion Mechanics

 Schedules 
 Company
Disclosure Letter  

  
 iii 

 SECURITIES PURCHASE AGREEMENT 

This SECURITIES PURCHASE AGREEMENT (this “Agreement”), dated as of June 25, 2021, is made by and among
(a) the Purchasers named in Exhibit A hereto (collectively, the “Purchasers”) and (b) Xponential Fitness, Inc., a Delaware corporation (the “Company” and, together with the
Purchasers and any Affiliate of any Purchaser that becomes a party to this Agreement, the “Parties”). 
 WHEREAS,
the Company desires to issue and sell to the Purchasers an aggregate of 200,000 shares of 6.50% Series A-1 Convertible Preferred Stock of the Company (the “Preferred Shares”), concurrently
with the completion of a Qualified IPO (as defined herein) on the terms and subject to the conditions set forth in this Agreement; and 

WHEREAS, at the Closing, each Purchaser desires to purchase the number of Preferred Shares set forth opposite such Purchaser’s
name on Exhibit A under the heading “Purchased Shares” on the terms and subject to the conditions set forth in this Agreement. 

NOW, THEREFORE, the Parties hereby agree as follows: 

ARTICLE I 
 SALE AND
PURCHASE OF SECURITIES 
 Section 1.1 Sale and Purchase of Preferred Shares.
Subject to the terms and conditions of this Agreement, at the Closing (i) the Company will issue and sell to each Purchaser the number of Preferred Shares set forth on Exhibit A hereto opposite such Purchaser’s
name under the heading “Purchased Shares” (the “Purchased Shares”), free and clear of all Liens, in exchange for $1,000 per share, and (ii) each Purchaser will, severally, and not jointly, purchase the
applicable Purchased Shares and pay such Purchaser’s Purchase Price by wire transfer of immediately available funds to an account designated in writing by the Company. The obligations of the Purchasers to purchase the Preferred Shares hereunder
are several, and not joint, and no Purchaser will have any Liability to any Person for the performance or non-performance by any other Purchaser in connection therewith. 

Section 1.2 Closing. The consummation of each sale and purchase of Preferred Shares in accordance with
the terms of this Agreement (the “Closing”) will take place at the offices of Latham & Watkins LLP 1271 Avenue of the Americas, New York, NY 10019 immediately prior to, and conditioned upon, the closing of the Qualified IPO
(the date of such Closing, the “Closing Date”); provided that if the Company consummates a firm commitment underwritten public offering that is not a Qualified IPO (a “Non-Qualified
IPO”), the Purchasers may, in their respective sole discretion, waive the Qualified IPO condition set forth in Section 4.1(e) and if such waiver is granted, the Closing and the Closing Date shall occur immediately prior to, and conditioned
up, the closing of such Non-Qualified IPO (and such date shall be deemed to be the Closing Date). 

 ARTICLE II 

REPRESENTATIONS AND WARRANTIES OF THE COMPANY 

Except as set forth in the Company Disclosure Letter, the Company represents and warrants to the Purchasers that: 

Section 2.1 Organization, Good Standing, Etc. Each Company Group Member (a) is
duly organized, validly existing and in good standing under the laws of the jurisdiction of its formation or organization, (b) has all requisite power and authority to conduct its business as now conducted, and
(c) is duly qualified to do business, and is in good standing in each jurisdiction in which the character of the properties owned or leased by it or in which the transaction of its business makes such qualification necessary,
except, with respect to this clause (c), where a failure to be so qualified would not reasonably be expected to have a Material Adverse Effect. 

Section 2.2 Authorization, Etc. The execution, delivery and performance by the Company of the
Preferred Documents (a) have been duly authorized by all necessary action, (b) do not and will not contravene (i) any of its Organizational Documents, (ii) any applicable Law or (iii) any applicable Contractual Obligation
binding on or otherwise affecting it or any of its properties, (c) do not and will not result in or require the creation of any Lien upon or with respect to any of its properties other than any such Lien that constitutes a Permitted Lien and
(d) do not and will not result in any default, noncompliance, suspension, revocation, impairment, forfeiture or nonrenewal of any permit, license, authorization or approval applicable to its operation or any of its properties, except in the
cause of clauses (b)(ii)-(iii) and (d), as would not reasonably be expected to have a Material Adverse Effect. 

Section 2.3 Governmental and Shareholder Approvals. No authorization or approval or
other action by, and no notice to or filing with any Governmental Authority is required in connection with the due execution, delivery and performance by the Company of any Preferred Document or the consummation of the transactions contemplated by
the Preferred Documents, except for (a) those which have been or will be provided or obtained on or prior to the Closing Date and (b) those notices of filings with any Governmental Authority, which if not obtained or made would not,
individually or in the aggregate, reasonably be expected to be material and adverse to the Company Group Members, taken as a whole. 

Section 2.4 Enforceability of Preferred Documents. This Agreement is, and each other Preferred
Document, when delivered hereunder, will be, a legal valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws affective the enforcement of creditors’ rights generally and general principles of equity. 

Section 2.5 Capitalization; Subsidiaries. 

(a) On the date hereof, all of the Company’s capital stock is owned of record and beneficially by H&W Franchise Holdings LLC
(“H&W”). On the date hereof, H&W conducts its business through Xponential Fitness LLC and its subsidiaries. Xponential Fitness LLC is a wholly owned subsidiary of Xponential Intermediate Holdings LLC. Following a Qualified
IPO, the Company will be a holding company and its sole material asset will be a controlling ownership interest in Xponential Fitness LLC through its ownership interest in Xponential Intermediate Holdings LLC. 

  
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 (b) On the date hereof, the authorized capital stock of H&W is as set forth in the Sixth
Amended and Restated Limited Liability Company Operating Agreement of H&W, dated August 31, 2020 (as amended by Amendment No. One thereto dated March 24, 2021), in each case as provided to Purchasers prior to the date hereof. On the
Closing Date, other than the Preferred Shares, the Company will have no other shares of preferred stock issued or outstanding. 
 (c) Subject
to the accuracy of the representations and warranties of the Purchasers set forth in this Agreement, the Purchasers’ compliance with their respective covenants set forth in this Agreement, and any matters arising from actions taken by or on
behalf of any of the Purchasers or their Affiliates, as of the Closing Date, the applicable Preferred Shares will (i) be duly authorized by all necessary corporate action on the part of the Company and validly issued, (ii) be issued in
compliance with all applicable federal and state securities Laws, (iii) not be subject to any preemptive or similar right, purchase or call option or right of first refusal or similar right, and (iv) be free and clear of all Liens. 

(d) Except as indicated on Schedule 2.5 of the Company Disclosure Letter, all equity securities of each Subsidiary of any Company Group
Member are owned by a Company Group Member, free and clear of all Liens other than Permitted Liens. Except as set forth on Schedule 2.5 of the Company Disclosure Letter, there are no outstanding debt securities of any Subsidiaries of a Company
Group Member and no outstanding obligations of the Subsidiaries of a Company Group Member convertible into or exchangeable for, or warrants, options or other rights (other than stock options granted to employees or directors and director’s
qualifying shares or similar nominal share to the extent required under applicable legal requirements) for the purchase or acquisition from the any of such Subsidiaries, or other obligations of any such Subsidiary to issue, directly or indirectly,
any shares of equity securities of any such Subsidiary. 
 Section 2.6 Litigation; Commercial Tort
Claims. Except as set forth on Schedule 2.6 of the Company Disclosure Letter, (a) there is no pending or, to the knowledge of the Company, threatened (in writing) action, suit or proceeding affecting the Company or any of its
Subsidiaries or any of its properties before any court or other Governmental Authority or any arbitrator that (i) could reasonably be expected to result in an adverse determination, and if so adversely determined, could reasonably be expected
to have a Material Adverse Effect or (ii) seeks to enjoin any transaction contemplated hereby or by any Preferred Document and (b) none of the Company nor any of its Subsidiaries holds any commercial tort claims in respect of which a claim
in excess of $500,000 has been filed in a court of law or a written notice by an attorney has been given to a potential defendant. 

Section 2.7 Financial Condition. The Financial Statements, copies of which have been delivered to each
Purchaser, present fairly, in all material respects, the consolidated financial position, results of operations and cash flows of the Company Group Members for the respective periods or as of the respective dates set forth therein in accordance with
GAAP, applied on a consistent basis during the periods presented, except as otherwise noted therein (subject, in the case of the unaudited consolidated balance sheet and the related consolidated statements of operations, comprehensive income,
shareholders’ equity and cash flows, to normal, recurring year-end adjustments and the absence of footnotes). Since March 31, 2021, no event or development has occurred that has had or could
reasonably be expected to have a Material Adverse Effect. 

  
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 Section 2.8 Compliance with Law, Etc. The Company
Group Members are not in violation of (i) any of their Organizational Documents or (ii) any domestic or, to the best of its knowledge, any foreign Law to the extent that any such violation could reasonably be expected to result in a
Material Adverse Effect, and no material default or event of default has occurred and is continuing thereunder. 

Section 2.9 ERISA. Except as set forth on Schedule 2.9 of the Company Disclosure Letter and
except as could not reasonably be expected, either individually or in the aggregate, to have a Material Adverse Effect, (a) each Plan is in compliance with ERISA and the Internal Revenue Code, and all other applicable laws and regulations
(b) no ERISA Event has occurred or, to the knowledge of the Company, is reasonably expected to occur, (c) the most recent annual report (Form 5500 Series) with respect to each Plan, including any required Schedule B (Actuarial
Information) thereto, copies of which have been filed with the Internal Revenue Service, is complete and correct in all material respects and fairly presents the funding status of such Plan, and since the date of such report there has been no
material adverse change in such funding status of such Plan, and (d) no Plan had an accumulated or waived funding deficiency. No Lien imposed under the Internal Revenue Code or ERISA exists or, to the knowledge of the Company, is likely to
arise on account of any Plan. Except as could not reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect, (i) the Company and its ERISA Affiliates have not incurred any withdrawal liability under ERISA
with respect to any Multiemployer Plan, or is aware of any facts indicating that it or any of its ERISA Affiliates may in the future incur any such withdrawal liability, (ii) the Company has not engaged in a nonexempt prohibited transaction
described in Section 406 of ERISA or Section 4975 of the Internal Revenue Code and (iii) the Company and its ERISA Affiliate have not (1) failed to pay any required installment or other payment required under Section 412 of
the Internal Revenue Code on or before the due date for such required installment or payment, (2) engaged in a transaction within the meaning of Section 4069 of ERISA or (3) incurred any liability to the PBGC that remains outstanding
other than the payment of premiums, and there are no premium payments that have become due that are unpaid. Except as could not reasonably be expected, either individually or in the aggregate, to have a Material Adverse Effect, there are no pending
or, to the best knowledge of the Company, threatened claims, actions, proceedings or lawsuits (other than claims for benefits in the normal course) asserted or instituted against (x) any Plan or its assets or (y) the Company with respect
to any Plan. Except as required by Section 4980B of the Internal Revenue Code, the Company does not maintain an employee welfare benefit plan (as defined in Section 3(1) of ERISA) that provides health or welfare benefits (through the
purchase of insurance or otherwise) for any retired or former employee of the Company or coverage after a participant’s termination of employment, except any such plans for which the Company does not incur any material costs or expenses. 

Section 2.10 Taxes, Etc. All federal and material state and local income and other
material tax returns required by applicable Law to be filed by the Company Group Members have been filed, or extensions have been obtained, and such tax returns were accurate and complete in all material respects. All material taxes, assessments and
other governmental charges imposed upon the Company Group Members or any property of the Company Group Members which have 

  
 4 

 
become due and payable on or prior to the date hereof have been paid, except to the extent contested in good faith by proper proceedings and with respect to which adequate reserves have been set
aside in accordance with GAAP. Each of the Operating LLC and its material Subsidiaries has been properly classified as a partnership or disregarded entity since its formation for U.S. federal and applicable state and local income tax purposes. 

Section 2.11 Nature of Business. No Company Group Member is engaged in any business other than as set
forth on Schedule 2.11 of the Company Disclosure Letter. 
 Section 2.12 Permits, Etc. The
Company Group Members have, and are in compliance with all permits, licenses, authorizations, approvals, entitlements and accreditations required for such Person lawfully to own, lease, manage or operate, or to acquire, each business currently
owned, leased, managed or operated, or to be acquired, by such Person, except as could not reasonably be expected to have a Material Adverse Effect. No condition exists or event has occurred which, in itself or with the giving of notice or lapse of
time or both, would result in the suspension, revocation, impairment, forfeiture or non-renewal of any such permit, license, authorization, approval, entitlement or accreditation, and there is no claim that
any thereof is not in full force and effect, except as could not reasonably be expected to have a Material Adverse Effect. 

Section 2.13 Properties. 

(a) Each Company Group Member has good and marketable title to, valid leasehold interests in (other than the Leases), or valid licenses to use,
all tangible property and assets material to its business, free and clear of all Liens, except Permitted Liens and, solely as to leasehold interests (other than the Leases), except to the extent the failure to have such valid leasehold interests
could not reasonably be expected to have a Material Adverse Effect. All such properties and assets are in good working order and condition, ordinary wear and tear and casualty (to the extent fully covered by insurance subject to a deductible) and
condemnation excepted. 
 (b) Schedule 2.13 of the Company Disclosure Letter sets forth a complete and accurate list of the location, by
state and street address, of all real property owned or leased by the Company and each of its Subsidiaries and identifies the interest (fee or leasehold) of such Person therein and whether such real property is a “Facility”. the Company
and each of its Subsidiaries has valid leasehold interests in the Leases described on Schedule 2.13 of the Company Disclosure Letter to which it is a party, except to the extent the failure to have such valid leasehold interests could not
reasonably be expected to have a Material Adverse Effect. Each such Lease is (x) valid and enforceable in accordance with its terms in all material respects and is in full force and effect (except to the extent such Lease has terminated in
accordance with its terms), except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally and (y) no consent or approval of any landlord
or other third party in connection with any such Lease is necessary for the Company to enter into and execute the Preferred Documents, except as set forth on Schedule 2.13 of the Company Disclosure Letter. To the knowledge of the Company, none
of the Company nor any of its Subsidiaries have at any time delivered or received any notice of material default which remains uncured under any such Lease and no event has occurred which, with the giving of notice or the passage of time or both,
would constitute a material default under any such Lease, except to the extent such event could not reasonably be expected to result in a Material Adverse Effect. 

  
 5 

 Section 2.14 Full Disclosure. The Company has
disclosed to the Purchasers all agreements, instruments and corporate or other restrictions to which it is subject, and all other matters known to it, that could reasonably be expected to result in a Material Adverse Effect. None of the other
reports, financial statements, certificates or other written information furnished by or on behalf of the Company to the Purchasers in connection with the negotiation of this Agreement or delivered hereunder (as modified or supplemented by other
information so furnished), as of the date prepared, contains any material misstatement of fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which it was made, not materially
misleading. 
 Section 2.15 Franchise Agreements. 

(a) Schedule 2.15 of the Company Disclosure Letter sets forth, as of December 31, 2020, (i) a complete and accurate list of all
material Franchise Agreements currently in effect, (ii) a complete and accurate list of each Company Group Member’s (or their predecessor franchisor’s) standard forms of Franchise Agreements currently in effect, including the year or
years during which the applicable Company Group Member (or its predecessor) used such form of Franchise Agreement for the 6 months prior to the Effective Date, and (iii) a list of all material Franchisees of the Company Group Members currently
operating under a Franchise Agreement, together with telephone numbers and addresses. 
 (b) Except as set forth on Schedule 2.15 of the
Company Disclosure Letter, each material Franchise Agreement is in full force and effect and constitutes a valid and binding obligation of the Company or the relevant Subsidiary of the Company, as applicable, and, to the knowledge of the Company,
the other party thereto, except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws. The Company Group Members are not in material breach or default thereunder, and, to the knowledge of the
Company, no event has occurred and no condition or state of facts exists which, with the passage of time or the giving of notice or both, would constitute such a default or breach by the Company or the applicable Company Subsidiary thereunder.
Except as set forth on Schedule 2.15 of the Company Disclosure Letter, there is no term, obligation, understanding or agreement that would modify any material term of a material Franchise Agreement or any right or obligation of a party thereunder
which is not reflected on the face of such Franchise Agreement (including, without limitation, any offers or promises with respect to any future or contingent subsidies, rebates, advances or allowances to or for the benefit of any or all
Franchisees). 
 (c) The Company’s and its Subsidiaries’ franchise disclosure documents and/or franchise disclosure documents
previously in effect and, to the extent applicable, currently in effect, if any: (i) materially comply and have materially complied with all applicable United States Federal Trade Commission franchise disclosure rules and state franchise and
business opportunity sales laws in effect at such time; (ii) have been timely amended to reflect any material changes or developments in the Company’s and its Subsidiaries’ franchise system, agreements, operations, financial
condition, litigation matters, or other matters requiring disclosure under any applicable law; and (iii) include all material documents (including audited financial statements for the 

  
 6 

 
applicable Person) required by any applicable law to be provided to prospective franchisees. All of the Franchises granted under the Franchise Agreements have been sold in material compliance
with applicable law, including franchise disclosure and registration requirements. The Company Group Members are and have been in material compliance with all applicable laws relating to franchise matters. 

(d) A list of each Company Group Member’s material franchise disclosure documents for its currently offered form or forms of Franchise
Agreement is set forth on Schedule 2.15 of the Company Disclosure Letter. The Company has provided the Purchasers with true and complete copies of each material franchise disclosure document for its currently offered form or forms of Franchise
Agreement set forth on Schedule 2.15 of the Company Disclosure Letter. Except as set forth on Schedule 2.15 of the Company Disclosure Letter, the Company Group Members have not received any currently effective written notice of any
threatened administrative, criminal or civil action against it or any persons disclosed in any of Company Group Member’s applicable franchise disclosure documents for its Franchise Agreements, where such threatened administrative, criminal
and/or civil action alleges a violation of a franchise law, antitrust law, securities law, fraud, unfair or deceptive practices, or comparable allegations, as well as actions other than ordinary routine litigation incidental to the Company Group
Members’ business that are material in the context of the number of their Franchisees and the size, nature, or financial condition of the franchise system or the Company Group Members’ business operations. 

(e) Except as set forth on Schedule 2.15 of the Company Disclosure Letter, each Company Group Member has maintained an accurate accounting
in all material respects with respect to any advertising funds required to be paid by an Franchisee or an advertising fund for use in connection with national or regional advertising for which it maintains accounts. All collections with respect to
such advertising funds and advertising cooperatives have been collected in accordance with the terms and conditions of each Franchise Agreement, except to the extent where the failure to do so could not reasonably be expected to result in a Material
Adverse Effect. The Company Group Members have properly accounted for all payments made by each Franchisee with respect to any advertising fund or advertising cooperative, except to the extent where the failure to do so could not reasonably be
expected to result in a Material Adverse Effect. No Company Group Member is aware of any allegations that any of the expenditures from any advertising fund or advertising cooperative have been improperly collected, accounted for, maintained, used or
applied that could reasonably be expected to result in a Material Adverse Effect. 
 Section 2.16
Environmental Matters. Except as set forth on Schedule 2.16 of the Company Disclosure Letter, (a) the operations of the Company Group Members are in compliance with all Environmental Laws in all material respects;
(b) there has been no Release at any of the properties owned or operated by the Company or any of its Subsidiaries or a predecessor in interest, or, to the knowledge of the Company, at any disposal or treatment facility which received Hazardous
Materials generated by the Company or any of its Subsidiaries or any predecessor in interest which in either case could reasonably be expected to have a Material Adverse Effect; (c) no Environmental Action has been asserted against the Company
or any of its Subsidiaries or any predecessor in interest nor does the Company have knowledge or notice of any threatened or pending Environmental Action against the Company or any of its Subsidiaries or any predecessor in interest which in either
case could reasonably be expected to have a Material Adverse Effect; 

  
 7 

 
(d) to the knowledge of the Company, no Environmental Actions have been asserted against any facilities that may have received Hazardous Materials generated by the Company or any of its
Subsidiaries or any predecessor in interest which could reasonably be expected to have a Material Adverse Effect; (e) the Company Group Members have not failed to report to the proper Governmental Authority any Release which is required to be
so reported by any Environmental Laws which could reasonably be expected to have a Material Adverse Effect; (f) the Company and each of its Subsidiaries holds all licenses, permits and approvals required under any Environmental Laws in
connection with the operation of the business carried on by it, except for such licenses, permits and approvals as to which the Company’s or its Subsidiaries’ failure to maintain or comply with could not reasonably be expected to have a
Material Adverse Effect; and (g) the Company Group Members have not received any notification from any Governmental Authority pursuant to any Environmental Laws that (i) any work, repairs, construction or capital expenditures are required
to be made in respect as a condition of continued compliance with any Environmental Laws, or any license, permit or approval issued pursuant thereto or (ii) any license, permit or approval referred to above is about to be reviewed, made subject
to limitations or conditions, revoked, withdrawn or terminated, in each case, except as could not reasonably be expected to have a Material Adverse Effect. 

Section 2.17 Insurance. Each Company Group Member keeps its property adequately insured and maintains
(a) insurance to such extent and against such risks, including fire, as is customary with companies in the same or similar businesses, (b) workmen’s compensation insurance in the amount required by applicable law, (c) public
liability insurance in the amount customary with companies in the same or similar businesses against claims for personal injury or death on properties owned, occupied or controlled by it, and (d) such other insurance as may be required by law.
Schedule 2.17 of the Company Disclosure Letter sets forth a list of all insurance maintained by each Company Group Member as of the date hereof. 

Section 2.18 Reserved. 

Section 2.19 Intellectual Property. Except as set forth on Schedule 2.18 of the Company
Disclosure Letter, the Company and each of its Subsidiaries owns or licenses or otherwise has the right to use all intellectual property that are necessary for and material to the conduct of its business as currently conducted, including the
following: inventions, patents, patent applications, registered and unregistered trademarks, service marks and trade names, registered and unregistered copyrights, including software and other works of authorship, trade secrets and other
intellectual property rights. To the knowledge of the Company, none of the Company nor any of its Subsidiaries infringes upon or violates any intellectual property rights owned by any other Person except if the Company and its Subsidiaries could
not, as a result of such infringement or violation, reasonably be expected to suffer a Material Adverse Effect, and no claim or litigation is pending or, to the knowledge of the Company, threatened in writing concerning any claim or allegation that
the Company or any of its Subsidiaries has infringed upon or violated any intellectual property rights owned by any other Person, except for such claims and litigation, which could not reasonably be expected to have a Material Adverse Effect. 

  
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 Section 2.20 Material Contracts. Set forth on
Schedule 2.19 of the Company Disclosure Letter is a complete and accurate list as of the date hereof of all Material Contracts of each Company Group Member, showing the parties and subject matter thereof and amendments and modifications
thereto. Each such Material Contract is (a) in full force and effect and is binding upon and enforceable against each Company Group Member that is a party thereto and (b) is not in default due to the action of any Company Group Member or,
to the knowledge of any Company Group Member, any other party thereto, except to the extent that any such default could not reasonably be expected to result in a Material Adverse Effect. 

Section 2.21 Investment Company Act. No Company Group Member is required to be registered as an
“investment company” within the meaning of the Investment Company Act of 1940, as amended. 
 Section 2.22
Employee and Labor Matters. There is (a) no unfair labor practice complaint pending or, to the knowledge of any the Company, threatened (in writing) against any Company Group Member before any Governmental Authority and no
grievance or arbitration proceeding pending or threatened (in writing) against any Company Group Member that arises out of or under any collective bargaining agreement, in each case that could reasonably be expected to result in a Material Adverse
Effect or (b) no strike, labor dispute, slowdown, stoppage or similar action or grievance pending or, to the knowledge of the Company, threatened (in writing) against any Company Group Member that could reasonably be expected to result in a
Material Adverse Effect. No Company Group Member has incurred any liability or obligation under the Worker Adjustment and Retraining Notification Act or similar state law that remains unpaid or unsatisfied. The hours worked and payments made to
employees of any Company Group Member have not been in violation of the Fair Labor Standards Act or any other applicable legal requirements, except to the extent that such violations could not reasonably be expected to result in a Material Adverse
Effect. All material payments due from any Company Group Member on account of wages and employee health and welfare insurance and other benefits have been paid or accrued as a liability on the books of such Person, except where the failure to do so
could not reasonably be expected to have a Material Adverse Effect. 
 Section 2.23 Customers and
Suppliers. There exists no actual or, to the knowledge of the Company, threatened (in writing) termination, cancellation or limitation of, or modification to or change in, the business relationship between (a) any Company Group Member,
on the one hand, and any customer or any group thereof, on the other hand, or (b) any Company Group Member, on the one hand, and any supplier or any group thereof, on the other hand, in either case with respect to clauses (a) and (b),
which could reasonably be expected to have a Material Adverse Effect. 
 Section 2.24 Anti-Money Laundering
and Anti-Terrorism Laws. 
 (a) The Company Group Members, and to the best knowledge of the Company, any Affiliates of any of the
Company Group Members, are and for the past six years have been in compliance in all material respects with Anti-Money Laundering and Anti-Terrorism Laws. 

(b) None of the Company Group Members, nor, to the best knowledge of the Company, any controlled Affiliate of any of the Company Group Members,
nor any officer or director of any of the Company Group Members, nor any of the Company Group Members’ respective agents acting or benefiting in any capacity in connection with the transactions hereunder, is a Sanctioned Person. 

  
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 Section 2.25 Anti-Bribery and Anti-Corruption Laws.

 (a) The Company Group Members, and their Affiliates, are and for the past five years have been in compliance in all material respects with
Anti-Corruption Laws. 
 (b) To the best knowledge of the Company, except to the extent otherwise disclosed in writing to the Purchasers,
there are, and in the past five years have been, no allegations, pending or open investigations or pending inquiries, in each case of a Governmental Authority with regard to a potential violation of any Anti-Corruption Law by any of the Company
Group Members and Affiliates of the Company Group Members, or any of their respective current or former directors, officers, employees, principal shareholders or owners, or agents. 

Section 2.26 Private Offering; No General Solicitation. 

(a) Subject to the accuracy of the representations and warranties of the Purchasers set forth in this Agreement and the Purchasers’
compliance with their respective covenants set forth in this Agreement, it is not necessary in connection with the issuance of Preferred Shares to the Purchasers in the manner contemplated by this Agreement, to register such Preferred Shares under
the Securities Act. 
 (b) None of the Company, its Affiliates or any Person acting with their approval has offered, sold or solicited any
offer to buy and will not, directly or indirectly, offer, sell or solicit any offer to buy, any security of a type or in a manner that would be integrated with the offering or issuance of the Preferred Shares. None of the Company, its Affiliates or
any Person acting with their approval has engaged in any form of general solicitation or general advertising (within the meaning of Rule 502(c) of Regulation D) or in any activity involving a public offering (within the meaning of
Section 4(a)(2) of the Securities Act) in connection with the offering of the Preferred Shares. 
 (c) The Preferred Shares will not, on
the date they are issued, be of the same class as securities listed on a national securities exchange registered under Section 6 of the Exchange Act or quoted on a U.S. automated interdealer quotation system. 

Section 2.27 No Broker’s Fees. None of the Company Group Members is a
party to any contract, agreement or understanding with any Person that would give rise to a valid claim against it or the Purchasers for a brokerage commission, finder’s fee or like payment in connection with the issuance of the Preferred
Shares. 
 Section 2.28 No Other Purchaser Representations and Warranties. Except for the
representations and warranties expressly set forth in Article III hereof and such representations and warranties set forth in the other Preferred Documents, the Company hereby acknowledges that none of the Purchasers nor any of their respective
Affiliates, nor any other Person, has made or is making any other express or implied representation or warranty with respect to the Purchasers or any of their respective Affiliates, as applicable, or their respective businesses, operations,
liabilities, condition (financial or otherwise) or prospects, including with respect to any information provided or made available to the Company or any of its Representatives or any information developed by the Company or any of its
Representatives. 

  
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 ARTICLE III 

REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS 

Each Purchaser severally, and not jointly, represents and warrants to the Company that: 

Section 3.1 Organization, Good Standing, Etc. Such Purchaser (a) is duly organized,
validly existing and in good standing under the laws of the jurisdiction of its formation or organization, (b) has all requisite power and authority to conduct its business as now conducted, and (c) is duly qualified to do business, and are
in good standing in each jurisdiction in which the character of the properties owned or leased by them or in which the transaction of their business makes such qualification necessary, except, with respect to this clause (c), where a failure to be
so qualified would not reasonably be expected to have a material adverse effect on such Purchaser’s ability to perform its obligations hereunder. 

Section 3.2 Authorization, Etc. The execution, delivery and performance by such Purchaser of the
Preferred Documents (a) has been duly authorized by all necessary action, (b) does not and will not contravene (i) any of its Organizational Documents, (ii) any applicable Law or (iii) any applicable Contractual Obligation
binding on or otherwise affecting it, (c) does not and will not result in or require the creation of any Lien upon or with respect to any of its properties, except in the case of clause (b)(ii)-(iii), as would not reasonably be expected to have
a material adverse effect on such Purchaser’s ability to perform its obligations hereunder. 
 Section 3.3
Governmental and Shareholder Approvals. No authorization or approval or other action by, and no notice to or filing with any Governmental Authority is required in connection with the due execution, delivery and performance by such
Purchaser of any Preferred Document or the consummation of the transactions contemplated by the Preferred Documents, except for (a) those which have been provided or obtained and (b) those notices of filings with any Governmental
Authority, which if not obtained or made would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on such Purchaser’s ability to perform its obligations hereunder. 

Section 3.4 Enforceability of Preferred Documents. This Agreement is, and each other Preferred
Document, when delivered hereunder, will be, a legal valid and binding obligation of such Purchaser, enforceable against such Purchaser in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws affective the enforcement of creditors’ rights generally and general principles of equity. 

Section 3.5 Investment Matters. 

(a) Such Purchaser is, and was at the time such Purchaser was offered the Preferred Shares, (i) a qualified institutional buyer,
(ii) an institutional accredited investor (as such term is defined in Rule 501(a)(1), (2), (3), (7) or (8) of Regulation D) or (iii) a non-U.S. Person (as such term is defined in Regulation
S) and will not acquire the Preferred Shares for the account or benefit of any U.S. Person (as such term is defined in Regulation S). 

  
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 (b) Such Purchaser is acquiring the Preferred Shares for its own account, for investment
purposes only and not with a view to any distribution thereof that would not otherwise comply with the Securities Act. 
 (c) Such Purchaser
understands that (i) the Preferred Shares have not been registered under the Securities Act and the Preferred Shares are being issued by the Company in transactions exempt from the registration requirements of the Securities Act and
(ii) all or any part of the Preferred Shares may not be offered or sold, except pursuant to effective registration statements under the Securities Act or pursuant to applicable exemptions from registration under the Securities Act and in
compliance with applicable state Laws. 
 (d) Such Purchaser understands that the exemption from registration afforded by Rule 144
promulgated under the Securities Act (“Rule 144”) (the provisions of which are known to such Purchaser) depends on the satisfaction of various conditions, and that, if applicable, Rule 144 may afford the basis for sales only in
limited amounts. 
 (e) Except as previously disclosed to the Company or its Affiliate, no portion of the funds or assets that will be used
by such Purchaser to pay its respective portion of the Purchase Price or to acquire or hold the Preferred Shares, constitute or will constitute the assets of any (i) employee benefit plan subject to Title I of ERISA, (ii) plan described in
and subject to Section 4975 of the Code (each such employee benefit plan and plan described in clauses (i) and (ii) referred to herein as an “ERISA Plan”), (iii) plan, account or other arrangement subject to provisions
under any other federal, state, local, non-U.S. or other laws or regulations that are similar to the fiduciary responsibility or prohibited transaction provisions of Title I of ERISA or Section 4975
of the Code that could cause the underlying assets of the Company to be treated as assets of such plan, account or arrangement (a “Similar Law Plan”) or (iv) entity whose underlying assets are deemed to include “plan
assets” of any such ERISA Plan or Similar Law Plan pursuant to Section 3(42) of ERISA and any regulations that may be promulgated thereunder or otherwise. 

(f) Such Purchaser (i) is, and for so long as it holds any Preferred Shares, will be, a “venture capital operating company” or
wholly owned by a “venture capital operating company” or (ii) does not have, and for so long as it holds any Preferred Shares, will not have, “significant equity participation” by benefit plan investors. The term
“venture capital operating company” has the meaning assigned to such term in the Department of Labor Regulation Section 2510.3-101. 

(g) Such Purchaser has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the
merits and risks of the prospective investment in the Preferred Shares and has so evaluated the merits and risks of such investment. Such Purchaser understands that it must bear the economic risk of its investment in the Preferred Shares
indefinitely and is able to bear such risk and is able to afford a complete loss of such investment. 
 (h) Such Purchaser acknowledges that
it has reviewed all materials such Purchaser deemed necessary for the purpose of making an investment decision with respect to the Preferred Shares, including information regarding the Transactions, and such Purchaser has evaluated the risks of
investing in the Preferred Shares and understands there are substantial risks of loss incidental to the investment and has determined that it is a suitable investment for such Purchaser. 

  
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 Section 3.6 No Broker’s
Fees. Such Purchaser is not a party to any contract, agreement or understanding with any Person that would give rise to a valid claim against it or any Company Group Member for a brokerage commission, finder’s fee or like payment in
connection with the issuance of the Preferred Shares. 
 Section 3.7 No Other Company Representations and
Warranties. Except for the representations and warranties expressly set forth in Article II hereof and such representations and warranties set forth in the other Preferred Documents, such Purchaser hereby acknowledges that none of the
Company nor any of their respective Affiliates, nor any other Person, has made or is making any other express or implied representation or warranty with respect to the Company or any of its Subsidiaries, as applicable, or their respective
businesses, operations, liabilities, condition (financial or otherwise) or prospects, including with respect to any information provided or made available to such Purchaser or any of its Representatives or any information developed by such Purchaser
or any of its Representatives. 
 ARTICLE IV 

CONDITIONS 

Section 4.1 Conditions to the Several, Not Joint, Obligations of the Purchasers. 

The purchase on the Closing Date of the applicable Preferred Shares by the Purchasers from the Company will be subject to the satisfaction or
waiver by the Purchasers of the following conditions: 
 (a) The representations and warranties of the Company set forth in
Article II will be true and correct in all material respects (without duplication of any materiality or Material Adverse Effect qualifier therein). 

(b) The Company has executed and delivered, and the Purchasers will have received: 

(i) a customary legal opinion from Davis Polk & Wardwell LLP; 

(ii) all documentation and other information about the Company as has been reasonably requested in writing at least five days
prior to the Closing Date by such Purchaser that they reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including the PATRIOT Act (to the
extent such documentation has not been previously provided to the Purchasers); and 
 (iii) a duly executed copy of the
Registration Rights Agreement, in substantially the form attached hereto as Exhibit D (the “Registration Rights Agreement”); 

(iv) a duly executed copy of the Amended and Restated LLC Agreement of the Operating LLC, in substantially the form attached
hereto as Exhibit C (the “LLCA”). 
 (c) The Company shall have delivered a copy of the Certificate of Designations
duly executed by the Company and filed with the Secretary of State of Delaware, in substantially the form attached hereto as Exhibit B. 

  
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 (d) The Company shall have consummated the Reorganization. 

(e) The Company shall consummate a Qualified IPO substantially concurrently with the Closing. 

(f) The Class A-3 Units, Class A-4 Units and Class A-5 Units (each, as defined in the H&W LLC Agreement) shall be recapitalized, repurchased or redeemed in full, and all obligations, preferences and commitments of the Operating LLC in connection
therewith shall be terminated or released, in each case, substantially concurrently with the Closing. 
 (g) The Operating LLC has entered
into and delivered to the Purchasers an executed copy of an Amendment to the Financing Agreement in substantially the form attached hereto as Exhibit G. 

(h) The Company shall have paid all reasonable and documented
out-of-pocket costs and expenses incurred by the Purchasers in connection with the preparation, negotiation, execution and delivery of the Preferred Documents, the
Amendment to the Financing Agreement, and the documents and instruments referred to herein and therein and the consummation of the transactions contemplated hereby and thereby. 

Notwithstanding anything herein to the contrary, the Company and the Operating LLC will be permitted to make changes to the Registration
Rights Agreement, LLCA and/or the Steps Memo prior to Closing in consultation with the Purchasers if such changes do not adversely affect the rights of the Purchasers (as determined in good faith in the sole discretion of the Purchasers). 

Section 4.2 Conditions to the Obligations of the Company. 

The issuance on the Closing Date of the applicable Preferred Shares by the Company to the Purchasers will be subject to the satisfaction or
waiver by the Company of the following conditions: 
 (a) The representations and warranties of such Purchaser set forth in
Article III will be true and correct in all material respects (without duplication of any materiality qualifier therein). 

(b) Each Purchaser has executed and delivered, on or prior to the Closing Date, and the Company will have received: 

(i) a completed IRS Form W-9 or applicable IRS Form
W-8 duly executed by such Purchaser; 
 (ii) all documentation and other information
about such Purchaser as has been reasonably requested in writing at least five days prior to the Closing Date by the Company that it reasonably determines is required by regulatory authorities under applicable “know your customer” and
anti-money laundering rules and regulations, including the PATRIOT Act (to the extent such documentation has not been previously provided to the Company); and 

  
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 (iii) a duly executed copy of the Registration Rights Agreement, in
substantially the form attached hereto as Exhibit D; 
 (iv) a duly executed copy of the LLCA, in substantially the form
attached hereto as Exhibit C; and 
 (v) the Lockup Agreements to be entered into pursuant to Section 5.7 shall
have been executed and delivered prior to the launch of a Qualified IPO and shall be in full force and effect. 
 ARTICLE V 

ADDITIONAL COVENANTS 

Section 5.1 Further Assurances. The Company will execute and deliver such other documents and papers
and take such further actions as may be reasonably required or desirable to carry out the provisions hereof and the transactions contemplated hereby. 

Section 5.2 Securities Act. For so long as any of the Preferred Shares remain outstanding and
constitute “restricted securities” within the meaning of the Securities Act of 1933 of the United States of America, as amended (the “Securities Act”), the Company will make available at the Company’s expense, upon
request, to any holder of Preferred Shares, and any prospective purchasers thereof, the information specified in Rule 144A(d)(4) under the Securities Act or is then subject to Section 13 or 15(d) of the Exchange Act. 

Section 5.3 Use of Proceeds. The proceeds received by the Company hereunder in exchange for the sale
of the Preferred Shares to the Purchasers will be contributed to the Operating LLC or used directly by the Company to (i) refinance the Class A Debt (as defined in the Sixth Amended and Restated Limited Liability Company Operating
Agreement of H&W Franchise Holding LLC, dated August 31, 2020, as amended), (ii) effect certain transactions in connection with the Reorganization and (iii) pay certain fees and expenses related to the transactions contemplated by the
Preferred Documents. 
 Section 5.4 Indemnification; Expenses. 

(a) The Company shall at all times (i) maintain directors’ and officers’ insurance coverage, in form and substance satisfactory
to the Board of Directors of the Company, (ii) maintain customary provisions in its certificate of incorporation and bylaws following completion of a Qualified IPO limiting the liability of directors and providing that the Company will
indemnify each of its directors to the fullest extent permitted under the General Corporation Law of the State of Delaware and (iii) offer each of its directors the opportunity to enter into a customary indemnification agreement with the
Company, provided, that in each such case all directors of the Company shall be entitled to be covered equally with all other directors of the Company. 

  
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 (b) The Company hereby acknowledges that an Indemnified Party may have certain rights to
indemnification, advancement of expenses and/or insurance provided by other sources. The Company hereby agrees (i) that it (or, to the extent applicable, its insurance provider) is the indemnitor of first resort (i.e., its obligations to an
Indemnified Party are primary and any obligation of such other sources to advance expenses or to provide indemnification for the same expenses or liabilities incurred by such Indemnified Party are secondary), (ii) that it shall be required to
advance the full amount of expenses incurred by an Indemnified Party and shall be liable for the full amount of all expenses, judgments, penalties, fines and amounts paid in settlement to the extent legally permitted and as required by the terms of
this Agreement without regard to any rights an Indemnified Party may have against such other sources, and (iii) irrevocably waives, relinquishes and releases such other sources from any and all claims against such other sources for
contribution, subrogation or any other recovery of any kind in respect thereof. The Company further agrees that no advancement or payment by such other sources on behalf of an Indemnified Party with respect to any claim for which such Indemnified
Party has sought indemnification from the Company shall affect the foregoing, and such other sources shall have a right of contribution and/or be subrogated to the extent of such advancement or payment to all of the rights of recovery of such
Indemnified Party against the Company. Any such other sources are express third party beneficiaries of this Section 5.4(e) and, at the request of any Indemnified Party, the Company shall acknowledge its obligations under
this Section 5.4(e) to any such other sources. 
 (c) In
addition, the Company agrees to defend, protect, indemnify and hold harmless each Purchaser and all of their respective Affiliates, directors, officers, equityholders, employees and agents (collectively called the “Indemnitees”)
from and against any and all losses, damages, liabilities, obligations, penalties, fees, reasonable and documented out-of-pocket costs and expenses (including, without
limitation, reasonable and documented out-of-pocket costs and expenses of one outside counsel and one local counsel to the Indemnitees (taken as a whole) in each
relevant jurisdiction) incurred by such Indemnitees, whether prior to or from and after the date hereof, whether direct, indirect or consequential, as a result of or arising from or relating to or in connection with any third party claim (which
shall include, for the avoidance of doubt, any claim made by any equityholder of the Company or the Operating LLC) relating to: (i) the negotiation, preparation, execution or performance or enforcement by the Company of this Agreement, the
other Preferred Documents or of any other document executed in connection with the Preferred Shares contemplated by this Agreement, (ii) the breach or inaccuracy as and when made of any of any Fundamental Representation, (iii) any claim,
litigation, investigation or proceeding relating to the offer and sale by the Company of the Preferred Shares, the Purchasers’ purchase and ownership of the Preferred Shares or the Company’s performance under this Agreement or the other
Preferred Documents, whether or not any Indemnitee is a party thereto (collectively, the “Indemnified Matters”); provided, however, that the Company shall not have any obligation to any Indemnitee under this clause (f) for any
Indemnified Matter (x) caused by the gross negligence or willful misconduct of such Indemnitee as determined by a final non-appealable judgment of a court of competent jurisdiction, or (y) arising
from disputes solely among the Purchasers or (z) that has resulted from an intentional breach of such Indemnitee’s obligations under this Agreement as determined by a final non-appealable judgment of
a court of competent jurisdiction. To the extent that the undertaking to indemnify, pay and hold harmless set forth in this clause (f) may be unenforceable because it is violative of any law or public policy, each the Company shall, jointly and
severally, contribute the maximum portion which it is permitted to pay and satisfy under applicable law, to the payment and satisfaction of all Indemnified Matters incurred by the Indemnitees. The indemnities set forth in this clause (f) shall
survive the repayment or repurchase of the Preferred Shares and termination of this Agreement or the other Preferred Documents.  

  
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 (d) The Company shall pay promptly, and in any event within the earlier to occur of the
Closing and ten (10) Business Days of delivery of an invoice, all reasonable and documented out-of-pocket costs and expenses incurred by or on behalf of each
Purchaser, regardless of whether the transactions contemplated hereby are consummated, including, without limitation, reasonable and documented out-of-pocket fees,
costs, client charges and expenses of one outside counsel and one local counsel in each relevant jurisdiction for the Purchasers (selected by the Purchasers holding a majority of the Preferred Shares), accounting, due diligence, searches and filings
and other miscellaneous disbursements arising from or relating to: (i) the negotiation, preparation, execution, delivery, performance and administration of this Agreement, the other Preferred Documents and the documents related thereto,
(ii) any requested amendments, waivers or consents to this Agreement, the other Preferred Documents and the documents related thereto, whether or not such documents become effective or are given, (iii) the maintenance, preservation and
protection of the Purchasers’ rights under this Agreement, the other Preferred Documents and the documents related thereto, (iv) the defense of any claim or action asserted or brought against any Purchaser by any Person that arises from or
relates to this Agreement, the other Preferred Documents and the documents related thereto, the Purchasers’ claims against the Company or any of its Affiliates under this Agreement, the other Preferred Documents and the documents related
thereto, or any and all matters in connection therewith, (v) the commencement or defense of, or intervention in, any court proceeding arising from or related to this Agreement, the other Preferred Documents and the documents related thereto,
(vi) the filing of any petition, complaint, answer, motion or other pleading by any Purchaser in connection with this Agreement, the other Preferred Documents and the documents related thereto, (vii) any attempt to collect from the Company
under this Agreement, the other Preferred Documents and the documents related thereto, or (viii) the receipt by any Purchaser of any advice from professionals with respect to any of the foregoing. The obligations of the Company under this
clause (d) shall survive the repayment or repurchase of the Preferred Shares and termination of this Agreement or the other Preferred Documents. 

Section 5.5 Tax Treatment. For U.S. federal and applicable state and local income tax purposes, the
Company and holders of the Preferred Shares shall not report on its tax returns or otherwise (including information returns) or otherwise treat (1) any Preferential Coupons (as defined in the Certificate of Designations) or PIK Coupons (as
defined in the Certificate of Designations) that have accrued on the Purchased Shares but not have been paid in cash as constructive distributions required to be included into income of any holder of Purchased Shares (or its direct or indirect
owners, as applicable) pursuant to Section 305(c) of the Code, or otherwise treat such Preferential Coupons or PIK Coupons as distributions required to be included in income on a current basis or (2) the Purchased Shares as having any
redemption premium within the meaning of Treasury Regulations Section 1.305-5(b) (and any corresponding provision of state or local law); except in each case as required by any of the following:
(w) a change in relevant law occurring after the Initial Issue Date (as defined in the Certificate of Designations), (x) after the Initial Issue Date, the promulgation of relevant final U.S. Treasury Regulations addressing instruments similar
to the Purchased Shares (from and after the effective date of such final regulations), (y) any amendment to the terms of the Certification of Designations that is made with the necessary consent of the holders of the Purchased Shares or (z) a
“determination” within the meaning of section 1313(a) of the Code. 

  
 17 

 Section 5.6 HSR. Upon request by any Purchaser, the
Company and such Purchaser shall make any appropriate filings of a Notification and Report Form pursuant to the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the “HSR Act”) with respect to the conversion of such
Purchaser’s 6.50% Series A-1 Convertible Preferred Stock into 6.50% Series A Convertible Preferred Stock as promptly as practicable after the date hereof and supply as promptly as practicable any
additional information and documentary material that may be requested pursuant to the HSR Act and to use their reasonable best efforts to take all other actions necessary to cause the expiration or termination of the applicable waiting periods under
the HSR Act as soon as practicable. The Company will pay all costs of the Parties’ filings under the HSR Act made pursuant to this Section 5.7. 

Section 5.7 Qualified IPO. On or prior to the launch by the Company of a Qualified IPO, each Purchaser
shall execute and deliver to the Company and the representatives of the underwriters of such Qualified IPO a Lockup Agreement in substantially the form attached hereto as Exhibit F or in any more favorable form (from the perspective of the lock-up party) entered into by Snapdragon Capital or its Affiliates. 
 Section 5.8
Shortfall Event. Upon the occurrence of a liquidation, bankruptcy, insolvency proceeding, winding up, reorganization, other insolvency proceeding or dissolution of the Company or the Operating LLC, or a mandatory redemption, or
Sale of the Company, in each case in which the holders of the Convertible Preferred Stock do not receive the full Mandatory Redemption Price, Fixed Liquidation Preference, accrued Preferential Return or other amount to which such holders would
otherwise be entitled (a “Shortfall Event”), the Operating LLC shall pay or cause to be paid, to the Company an amount in cash (or if no cash is available for distribution, other assets with a corresponding fair market value) in
preference and priority to any payments or distributions of any kind to the holders of any LLC Units (as defined in the LLCA) or other junior equity interests of the Operating LLC the maximum amount of any and all amounts required to be distributed,
indemnified, reimbursed or otherwise paid by the Operating LLC (i) on the Preferred Units (as defined in the LLCA) of the Operating LLC and/or (ii) with respect to any expenses, liabilities or other obligations described in
Section 13.01 of the LLCA (such amounts, the “Company Priority Amounts”). For so long as a Shortfall Event has occurred and is continuing, until the Company has received the maximum amount of any and
all Company Priority Amounts, no distributions or other payments may be made to any holders of LLC Units (as defined in the LLCA) or other junior equity interests of the Operating LLC. Each of the Purchasers, the Company and the Operating LLC
acknowledge and agree to the foregoing, will take all necessary steps or actions to effect the foregoing and agree not to contest the validity, priority or enforceability of the Company Priority Amounts or this provision. For so long as a Shortfall
Event has occurred and is continuing, if the Company does not take all necessary steps to cause the Operating LLC to enforce all of its rights in respect of the Company Priority Amounts, the Purchasers shall be entitled to take all actions necessary
to direct or force the Company to acquire the maximum amount of any and all amounts required to be distributed, indemnified, reimbursed or otherwise paid by the Operating LLC to the Company in respect of the Company Priority Amounts as express
third-party beneficiaries of this provision and Sections 3.02(h) and 13.01 of the LLCA.  

  
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 ARTICLE VI 

TERMINATION 

Section 6.1 Termination. This Agreement may be terminated, and the transactions contemplated hereby
may be abandoned: 
 (a) By mutual written agreement of the Parties hereto; or 

(b) By the Purchasers or the Company if the Closing has not occurred within sixty (60) days following the date hereof (the
“Outside Date”); provided, that if prior to the Outside Date, any Party hereto brings any action to enforce specifically the performance of the terms and provisions hereof by any other Party, then the Outside Date shall
automatically be extended without further action by any Party hereto until the date that is 30 days following the date on which a final, non-appealable order by a court of competent jurisdiction has been
entered into with respect to such action and the Outside Date shall be deemed to be such later date for purposes of this Agreement. 

Section 6.2 Effect of Termination. In the event that this Agreement is validly terminated pursuant to
Section 6.1, this Agreement shall forthwith become void and of no further force or effect; provided, however, that notwithstanding anything herein to the contrary, (a) this
Section 6.2 and Article VII shall survive any termination of this Agreement and (b) the termination of this Agreement shall not relieve any party of any liability or damages incurred or suffered as a result of
fraud or intentional breach of this Agreement. 
 ARTICLE VII 

MISCELLANEOUS 

Section 7.1 Survival. All representations and warranties made by the Company and the Purchasers
contained in this Agreement, or made by or on behalf of them, respectively, pursuant to this Agreement, will survive the execution and delivery of this Agreement and will continue in full force and effect for so long as a Purchaser holds any
Preferred Shares after the date hereof. All covenants made herein will survive the Closing according to their respective terms. 

Section 7.2 Entire Agreement; Parties in Interest. This Agreement (including the exhibits hereto and
the Company Disclosure Letter), and the other Preferred Documents constitute the entire agreement, and supersede all other prior agreements and understandings, both written and oral, between or among the Parties (or their respective affiliates) with
respect to the subject matter hereof. This Agreement will be binding upon and inure solely to the benefit of each Party and their respective successors, legal representatives and permitted assigns, and nothing in this Agreement, express or implied,
is intended to or will confer upon any other Person any rights, benefits or remedies of any nature whatsoever under or by reason of this Agreement, except for the provisions of Section 7.3 which will be enforceable by the
beneficiaries contemplated thereby. 
 Section 7.3 No Recourse. Notwithstanding anything to the
contrary in this Agreement, this Agreement may only be enforced by a Party against, and any Proceedings that may be based upon, arise out of or relate to this Agreement, or the negotiation, execution or performance of this Agreement, may only be
made by such Party against, another Party or, if applicable, such other Party’s Affiliates that become party to this Agreement, and no current, former or future Affiliates 

  
 19 

 
of a Party or any of their Affiliates (except for any Affiliates of a Party who become party to this Agreement in their capacity as such), or any of the foregoing Persons’ respective current
or future Representatives (collectively, the “Related Parties”) will have any liability for any liabilities of such Party for any claim (whether in tort, contract or otherwise) based on, in respect of, or by reason of, the purchase
of the Preferred Shares hereunder or the other Transactions or in respect of any oral representations made or alleged to be made in connection herewith or therewith. In no event will a Party or any of its Affiliates, and each Party agrees not to and
to cause its Affiliates not to, seek to enforce this Agreement against, make any claims for breach of this Agreement against, or seek to recover losses or other damages in connection therewith from, any Related Party. 

Section 7.4 Governing Law. This Agreement and all Disputes arising out of or relating to this
Agreement or the transactions contemplated hereby will be governed by, and construed in accordance with, the internal laws of the State of Delaware, without regard to the laws of any other jurisdiction that might be applied because of the conflicts
of laws principles of the State of Delaware. 
 Section 7.5 Submission to
Jurisdiction. Each of the Parties irrevocably agrees that any legal action or proceeding, arising out of or relating to this Agreement, brought by any other Party or its, his or her successors or assigns will be brought and determined in the
Court of Chancery in the State of Delaware or the courts of the United States of America for the District of Delaware, and the appellate courts of either of the foregoing, and each of the Parties hereby irrevocably submits to the exclusive
jurisdiction of the aforesaid courts for itself and with respect to its, his or her property, generally and unconditionally, with regard to any such action or proceeding arising out of or relating to this Agreement and the transactions contemplated
hereby. Each of the Parties agrees not to commence any action, suit or proceeding relating thereto except in the courts described above in Delaware, other than actions in any court of competent jurisdiction to enforce any judgment, decree or award
rendered by any such court in Delaware as described herein. Each of the Parties further agrees that notice as provided herein will constitute sufficient service of process and the Parties further waive any argument that such service is insufficient.
Each of the Parties hereby irrevocably and unconditionally waives, and agrees not to assert, by way of motion or as a defense, counterclaim or otherwise, in any action or proceeding arising out of or relating to this Agreement or the transactions
contemplated hereby, (i) any claim that it is not personally subject to the jurisdiction of the courts in Delaware as described herein for any reason, (ii) that it or its, his or her property is exempt or immune from jurisdiction of any
such court or from any legal process commenced in such courts (whether through service of notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise), and (iii) that (A) the suit, action
or proceeding in any such court is brought in an inconvenient forum, (B) the venue of such suit, action or proceeding is improper or (C) this Agreement, or the subject matter hereof, may not be enforced in or by such courts. 

Section 7.6 Waiver of Jury Trial. EACH OF THE PARTIES IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY
JURY IN ANY PROCEEDING BETWEEN OR AMONG THE PARTIES ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 

  
 20 

 Section 7.7 Remedies. 

(a) Except as otherwise provided herein, all remedies available under this Agreement, at law or otherwise, will be deemed cumulative and not
alternative or exclusive of other remedies. The exercise by any Party of a particular remedy will not preclude the exercise of any other remedy. 

(b) The Parties agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in
accordance with their specific terms or were otherwise breached. Accordingly, each of the Parties shall be entitled to specific performance of the terms hereof, including an injunction or injunctions from a court of competent jurisdiction to prevent
breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement, this being in addition to any other remedy to which such party is entitled at law or in equity. Each of the Parties hereby further waives (i) any
defense in any action for specific performance that a remedy at law would be adequate and (ii) any requirement under any law to post security as a prerequisite to obtaining equitable relief. 

Section 7.8 Amendments; Waivers. Any provision of this Agreement may be amended or waived if, and only
if, such amendment or waiver is in writing and signed, by the Purchasers holding a majority of the Preferred Shares and the Company. No knowledge, investigation or inquiry, or failure or delay by the Company or any Purchaser in exercising any right
hereunder will operate as a waiver thereof nor will any single or partial exercise thereof preclude any other or further exercise of any other right hereunder. No waiver of any right or remedy hereunder will be deemed to be a continuing waiver in
the future or a waiver of any rights or remedies arising thereafter. 
 Section 7.9 Counterparts.
This Agreement may be executed in two or more counterparts, each of which constitutes an original, and all of which taken together constitute one instrument. A signature delivered by email or other electronic transmission (including DocuSign) will
be considered an original signature. 
 Section 7.10 Assignment. This Agreement will be binding upon
and will inure to the benefit of the Parties and their respective permitted assigns and successors. Neither this Agreement nor any of the rights, interests or obligations hereunder may be assigned by the Company without the prior written consent of
the Purchasers, on the one hand, or by any Purchaser without the prior consent of the Company, on the other hand, except that each Purchaser may, without the consent of the Company, assign all or a portion of its rights, interests and obligations
hereunder to one or more of such Person’s Affiliates to whom such Person transfers any of its Preferred Shares in accordance with the Certificate of Designations. Any assignment or transfer in violation of this
Section 7.10 will be null and void ab initio. 
 Section 7.11
Transfer. Notwithstanding anything to the contrary in the Certificate of Designations, and in addition to the transfer restrictions set forth in the Lockup Agreements, the Purchasers may not transfer any Preferred Shares without
the consent of the Company, other than (x) to Permitted Transferees (as defined in the Certificate of Designations), (y) from the eight (8th) month anniversary of the Closing Date through the eighteen (18th) month anniversary of the Closing
Date, each Purchaser may Transfer up to 49.0% of the Preferred Shares held by such holder and (z) from and after the eighteen (18th) month anniversary of the Closing Date, each Purchaser may transfer all or any portion of its Preferred
Shares. In addition, (x) no Purchaser may 

  
 21 

 
sell any shares of Class A Common Stock it receives upon conversion of Preferred Shares for the duration of any lock-up period (after giving effect to
any releases granted thereunder) in connection with a Qualified IPO pursuant to Section 4 of the Registration Rights Agreement and (y) from the end of such lock-up period to the twelfth (12th) month following a Qualified IPO, the Purchasers may sell (whether pursuant to a registration statement filed with the SEC covering the offer and sale of such shares of Class A Common Stock,
Rule 144 or another available exemption under applicable securities laws) with the such shares of Class A Common Stock in an amount not to exceed, on a pro rata basis (based on the percentage of the shares of Class A Common Stock held by
such Purchaser being sold), the amount of shares transferred by any Permitted Party (as defined in the Certificate of Designations). Following the twelfth (12th) month following a Qualified IPO,
the Purchasers may sell all or any portion of such shares of Class A Common Stock issued to it upon conversion of the Preferred Shares. 

Section 7.12 Severability. In the event that any provision of this Agreement, or the application
thereof becomes or is declared by a court of competent jurisdiction to be illegal, void, invalid or unenforceable, the remainder of this Agreement will continue in full force and effect and the application of such provision to other Persons or
circumstances will be interpreted so as reasonably to effect the intent of the Parties. The Parties further agree to replace such illegal, void, invalid or unenforceable provision of this Agreement with a legal, valid and enforceable provision that
achieves, to the extent possible, the economic, business and other purposes of such illegal, void, invalid or unenforceable provision. 

Section 7.13 Notice. 

(a) Except as otherwise provided in this Agreement, any notice or other communication required or permitted to be delivered to any Party under
this Agreement will be in writing and delivered by (i) email or (ii) registered mail via a national courier service to the following email address or physical address, as applicable: 

If to the Company: 
 Xponential
Fitness, Inc. 
 17877 Von Karman Ave. 

Irvine, California 92614, 

Attention: John Meloun 
 Email:
john.meloun@xponential.com 
 and with a copy (which will not constitute notice) to: 

Davis Polk & Wardwell LLP 

1600 El Camino Road 
 Menlo Park,
CA 94025 
 Attention: Alan Denenberg 

Email: alan.deneberg@davispolk.com 

If to any of the Purchasers, at the email address or physical address, as applicable, set forth on such Purchaser’s signature page
hereto. 

  
 22 

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

Latham & Watkins LLP 

1271 Avenue of the Americas 10020 

New York, NY 
 Attention: Justin
Hamill; Peter Sluka 
 Email: justin.hamill@lw.com; peter.sluka@lw.com 

(b) Notice or other communication pursuant to Section 7.8(a) will be deemed given or received when delivered. Any
Party may specify a different address, by written notice to the other Parties. The change of address will be effective upon the other Parties’ receipt of the notice of the change of address. 

Section 7.14 PATRIOT Act. The Purchasers hereby notify the Company that, pursuant to the requirements
of the PATRIOT Act, the Purchasers may be required to obtain, verify and record information that identifies the Company, including its name, address and other information that will allow the Purchasers to identify the Company in accordance with the
PATRIOT Act. 
 Section 7.15 Publicity. All press releases or other public communications or
announcements relating to the transactions contemplated hereby, and the method of the release for publication thereof, shall be subject to the prior written approval of the Purchasers and the Company, which approval shall not be unreasonably
withheld, conditioned or delayed; provided, that the provisions of this Section 7.15 shall not apply to the extent that a public announcement is required by applicable securities laws, any Governmental Authority or
stock exchange rule; provided further, that the Party making such announcement shall use commercially reasonably efforts to consult with the other Parties in advance as to its form, content and timing. 

ARTICLE VIII 

DEFINITIONS 

Section 8.1 Certain Definitions. The following words and phrases have the meanings specified in this
Section 8.1: 
 “Affiliate” means, with respect to any Person, any other Person that directly or
indirectly through one or more intermediaries, controls, is controlled by, or is under common control with such Person; provided, that the Company and its Subsidiaries shall not be deemed to be Affiliates of any Purchaser or any of its
Affiliates. For purposes of this definition, “control” of a Person means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise;
and the terms “controlling,” “controlled,” “controlled by” and “under common control with” have meanings correlative to the foregoing.. 

“Anti-Corruption Laws” means the U.S. Foreign Corrupt Practices Act of 1977, as amended and all other laws, rules and
regulations of any jurisdiction applicable to any Company Group Member concerning or relating to bribery or corruption. 

  
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 “Anti-Money Laundering and Anti-Terrorism Laws” means any applicable Law
relating to terrorism, economic sanctions or money laundering, including, without limitation, (a) the Money Laundering Control Act of 1986 (i.e., 18 U.S.C. §§ 1956 and 1957), (b) the Bank Secrecy Act of 1970 (31 U.S.C.
§§ 5311-5330 and 12 U.S.C. §§ 1818(s), 1820(b) and 1951-1959), and the implementing regulations promulgated thereunder, (c) the USA PATRIOT Act and the implementing regulations promulgated thereunder, (d) the
laws, regulations and executive orders administered by OFAC, (e) any law prohibiting or directed against terrorist activities or the financing or support of terrorist activities (e.g., 18 U.S.C. §§ 2339A and 2339B), and
(f) any similar laws enacted in the United States or any other jurisdictions in which the parties to this Agreement operate, as any of the foregoing laws have been, or shall hereafter be, amended, renewed, extended, or replaced and all other
present and future legal requirements of any Governmental Authority governing, addressing, relating to, or attempting to eliminate, terrorist acts and acts of war and any regulations promulgated pursuant thereto. 

“Authorized Officer” means, with respect to any Person, any individual (a) holding the position of chairman of the board
(if an officer), chief executive officer, president, vice president (or the equivalent thereof), chief financial officer, secretary, general counsel, treasurer or authorized representative of such Person and (b) with respect to which the
secretary or assistant secretary of such Person has delivered an incumbency certificate to the Purchasers as to the authority of such individual in such position. 

“Business Day” means any day other than a Saturday, Sunday or other day on which commercial banks are authorized to close
under the Laws of, or are in fact closed in, the State of New York. 
 “Class A Common Stock” means the
Company’s Class A Common Stock, par value $0.0001 per share. 
 “Code” means the U.S. Internal Revenue Code
of 1986, as amended. 
 “Company Disclosure Letter” means the disclosure letter delivered by the Company to the Purchasers
prior to entering into this Agreement. 
 “Company Group Member” means, at any time, the Company and each of its
Subsidiaries (after giving effect to the Reorganization). 
 “Contractual Obligation” means, with respect to any Person,
any provision of any security issued by such Person or of any agreement, instrument or other undertaking to which such Person is a party or by which it or any of its property is bound. 

“Environment” the environment, natural resources and any surface, subsurface or physical medium, including: (a) land
surface; (b) surface water; (c) groundwater; (d) subsurface strata; and (e) ambient air. 
 “Environmental
Action” means any written complaint, summons, citation, notice, directive, order, claim, litigation, investigation, judicial or administrative proceeding, judgment, letter or other written communication from any Person or Governmental
Authority to the Company or any of its Subsidiaries involving violations of Environmental Laws or Releases of Hazardous Materials (a) from any assets, properties or businesses owned or operated by the Company or any of its Subsidiaries or any
predecessor in interest, (b) from adjoining properties or business, or (c) onto any facilities which received Hazardous Materials generated by the Company or any of its Subsidiaries or any predecessor in interest. 

  
 24 

 “Environmental Laws” means all laws, rules, regulations, codes, ordinances,
orders, decrees, judgments, injunctions, notices or binding agreements issued, promulgated or entered into by or with any Governmental Authority relating in any way to the environment, preservation or reclamation of natural resources, the
management, Release or threatened Release of any Hazardous Material or health and safety matters related to Hazardous Materials. 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and the rules and regulations promulgated
under it. 
 “ERISA Affiliate” means any trade or business (whether or not incorporated) that is under common control with
the Company and is treated as a single employer within the meaning of Section 414 of the Code or Section 4001 of ERISA. 

“ERISA Event” means (a) a Reportable Event with respect to any Plan, (b) any event that causes any Company Group
Member or any of its ERISA Affiliates to incur liability under Section 515 (other than for payment of timely contributions to one or more Multiemployer Plans), 4062, 4063, 4064, 4069, 4201, 4204 or 4212 of ERISA or Section 4971 of the
Internal Revenue Code, (c) the filing of a notice of intent to terminate a Plan or the treatment of a Plan amendment as a termination under Section 4041 of ERISA, (d) the institution of proceedings by the PBGC to terminate a Plan, or
(e) any other event or condition that could reasonably be expected to constitute grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Plan. “Exchange Act” means the
U.S. Securities Exchange Act of 1934, as amended, and the rules and regulations of the SEC promulgated thereunder. 

“Financial Statements” means (a) the audited consolidated balance sheet of the Company Xponential Fitness LLC for the
Fiscal Year ended December 31, 2020, and the related consolidated statement of operations, shareholders’ equity and cash flows for the fiscal year then ended and (b) the unaudited consolidated balance sheet of Xponential Fitness LLC
and its Subsidiaries for the three months ended March 31, 2021, and the related consolidated statement of operations, shareholder’s equity and cash flows for the three months then ended. 

“Financing Agreement” means that certain Financing Agreement, dated as of April 19, 2021, by and among Xponential
Intermediate Holdings, LLC, Xponential Fitness LLC, Wilmington Trust National Association, and the other Borrowers, Guarantors and Lenders party thereto. 

“Fiscal Year” means the fiscal year of the Company and its Subsidiaries ending on December 31 of each year. 

“Franchise Agreement” means any franchise agreements whether now existing or hereafter entered into by the Company or any of
its Subsidiaries and related to the franchising of the business of operating a Franchised Location, and all other agreements with any Franchisee, sub-franchisee or similar Person to which any Company Group
Member is a party, in each case, related to the franchising of the business of operating a Franchised Location, all as amended or modified from time to time. 

  
 25 

 “Franchised Location” means a health and wellness facility owned and
operated by a Company Group Member or a Franchisee. 
 “Franchisee” means any franchisee under a Franchise Agreement. 

“Fundamental Representations” means the representations and warranties set forth in Section 2.1, 2.2, 2.3, 2.5, 2.24,
2.25 and 2.27 of this Agreement. 
 “GAAP” means generally accepted accounting principles in the United States applied on a
consistent basis. 
 “Governmental Authority” means the government of the U.S., any other nation or any political
subdivision thereof, whether state, provincial, county, local, or otherwise, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government in any jurisdiction (including any supranational bodies such as the European Union or the European Central Bank). 

“Hazardous Materials” means all explosive or radioactive substances or wastes and all hazardous or toxic substances, wastes
or other pollutants, including petroleum or petroleum distillates, asbestos or asbestos containing materials, polychlorinated biphenyls, radon gas, infections or medical wastes and all other substances or wastes of any nature regulated pursuant to
any Environmental Law. 
 “Law” means any applicable U.S. or foreign, federal, state, provincial, municipal or local
law (including common law), statute, ordinance, rule, regulation, code, policy, directive, standard, license, treaty, judgment, order, injunction, decree or agency requirement of or undertaking to or agreement with any Governmental Authority. 

“Lease” means any lease of real property to which any Company Group Member is a party as lessor or lessee. 

“Liability” means any indebtedness, loss, damage, claim, fines, penalties, liability or obligation (whether direct or
indirect, known or unknown, asserted or unasserted, absolute or contingent, accrued or unaccrued, matured or unmatured, determined or determinable, disputed or undisputed, liquidated or unliquidated, or due or to become due, and whether in contract,
tort, strict liability or otherwise), and including all costs and expenses relating thereto (including all fees, disbursements and expenses of legal counsel, experts, engineers and consultants and costs of investigation). 

“Liens” means any liens (statutory or otherwise), deeds of trust, pledges, mortgages, charges, encumbrances, security
interests, restrictions on voting or transfer (other than transfer restrictions imposed under applicable securities Laws, the Lockup Agreement or the Certificate of Designations) or any other claim of any third party. 

  
 26 

 “Material Adverse Effect” means with respect to any event, act, condition
or occurrence of whatever nature (including any adverse determination in any litigation, arbitration, or governmental investigation or proceeding), whether singularly or in conjunction with any other event or events, act or acts, condition or
conditions, occurrence or occurrences whether or not related, resulting in a material adverse change in, or a material adverse effect on, (a) the operations, business, assets properties or financial condition of the Company Group Members taken
as a whole, (b) the Company’s ability to perform its obligations under the Preferred Documents in such a way as would reasonably be expected to cause the Company to be unable to pay or perform its payment obligations under Preferred
Documents when due, (c) the material rights or remedies (taken as a whole) of the Purchasers under the Preferred Documents, taken as a whole, or (d) the legality, validity or enforceability against the Company of any of the Preferred
Documents. 
 “Material Contract” means, with respect to any Person, (a) each contract or agreement to which that
Person or any of its Subsidiaries is a party involving aggregate consideration payable by that Person or Subsidiary of $500,000 or more in any Fiscal Year and (b) all other contracts or agreements as to which the breach, nonperformance,
cancellation or failure to renew (without contemporaneous replacement of substantially equivalent value) by any party could reasonably be expected to have a Material Adverse Effect. 

“Multiemployer Plan” means a multiemployer plan as defined in Section 4001(a)(3) of ERISA, which is contributed to by
(or to which there is or may be an obligation to contribute of) the Company or an ERISA Affiliate, and each such plan for the five-year period immediately following the latest date on which the Company or an ERISA Affiliate contributed to or had an
obligation to contribute to such plan. 
 “OFAC” means the United States Department of the Treasury’s Office of
Foreign Assets Control. 
 “Organizational Documents” means the articles or certificate of incorporation or formation,
certificate of limited partnership, joint venture or partnership agreement, operating or limited liability company agreement, by-laws or other constitutional, governing or organizational document of any Person
other than an individual, each as from time to time amended or modified. 
 “Operating LLC” means Xponential Intermediate
Holdings LLC, a Delaware limited liability company. 
 “PATRIOT Act” means the Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)). 

“PBGC” means the Pension Benefit Guaranty Corporation. 

“Permitted Liens” means any of the following (a) Liens for taxes which are not yet due and payable or which are being
contested in good faith by appropriate proceedings and for which appropriate reserves have been established on the Financial Statements, (b) statutory or common law Liens to secure landlords, lessors or renters under leases or rental
agreements, (c) deposits or pledges made in connection with, or to secure payment of, workers’ compensation, unemployment insurance, old age pension or other social security programs mandated under applicable Laws, (d) Liens in favor
of carriers, warehousemen, mechanics and materialmen, to secure claims for labor, materials or supplies and other like Liens arising in the ordinary course of business, (e) restrictions on transfer of securities imposed by applicable state and
federal securities Laws, (f) the interests 

  
 27 

 
of the lessors under the Leases and Liens encumbering the interests of the lessors of, or the interests of the holders of any other superior interests in, the real property subject to the Leases,
(g) Liens described on Schedule 7.1 of the Company Disclosure Letter, (h) Liens imposed or promulgated by applicable Laws with respect to real property and improvements, including zoning regulations, (i) licenses and sub-licenses of intellectual property granted by any Company Group Member in the ordinary course of business that do not materially detract from the value subject thereto and (j) easements, rights of way,
covenants, restrictions and other Liens which do not adversely impact the Company and its Subsidiaries, taken as a whole, in any material respect. 

“Person” means any natural person, corporation, limited liability company, trust, joint venture, association, company,
partnership, Governmental Authority or other entity. 
 “Plan” shall mean any “employee benefit plan” as defined
in Section 3 of ERISA (other than a Multiemployer Plan) subject to Title IV of ERISA maintained or contributed to by the Company or any ERISA Affiliate or to which the Company or any ERISA Affiliate has or may have any liability or obligation
to contribute. 
 “Preferred Documents” means this Agreement, the Registration Rights Agreement and the Certificate of
Designations. 
 “Pro Rata Share” means, with respect to each Purchaser, the percentage set forth in
Exhibit A opposite such Purchaser’s name under the heading “Pro Rata Share.” 

“Proceeding” means any claim, action, demand, suit, litigation, investigation, inquiries or proceeding relating to any of the
foregoing, whether based on contract, tort or any other theory (including any investigation of, preparation for, or defense of any pending claim, investigation, litigation or proceeding). 

“Purchase Price” means, with respect to any Purchaser, the amount set forth opposite such Purchaser’s name on
Exhibit A under the heading “Purchase Price”. 
 “Qualified IPO” means a firm
commitment underwritten public offering pursuant to an effective registration statement filed under the Securities Act filed with the SEC covering the offer and sale of Class A Common Stock; provided that (i) the aggregate gross proceeds
from such offering are not less than $100.0 million and (ii) the aggregate gross proceeds from such offering to the Company are not less than $75.0 million and following which the Class A Common Stock is listed on a nationally
recognized stock exchange. 
 “Release” means any release, spill, emission, leaking, dumping, injection, pouring, deposit,
disposal, discharge, dispersal, leaching or migration of Hazardous Materials into the Environment or within any building, structure, facility or fixture. 

“Reorganization” means the corporate reorganization structured and consummated substantially consistent with the Up-C Steps Memo attached hereto as Exhibit E (the “Steps Memo”). 

  
 28 

 “Reportable Event” means an event described in Section 4043 of ERISA
(other than an event not subject to the provision for 30-day notice to the PBGC under the regulations promulgated under such Section). 

“Representatives” means, with respect to any Person, such Person’s officers, directors, partners, limited partners,
investors, lenders, rating agencies, managed accounts, employees, investment bankers, attorneys, accountants and other advisors, agents and representatives. 

“Sanctioned Country” means, at any time, a country, region or territory that is, or whose government is, the subject or
target of any Sanctions. 
 “Sanctioned Person” mean, at any time, (a) any Person that is the subject or target of any
Sanctions, (b) any Person located, organized, operating or resident in a Sanctioned Country, or (c) any Person owned or controlled by any such Person. 

“Sanctions” means economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by
(a) the U.S. government, including those administered by OFAC or the U.S. Department of State, (b) the United Nations Security Council, the European Union or Her Majesty’s Treasury of the United Kingdom or (c) any other
relevant sanctions authority. 
 “SEC” means the Securities and Exchange Commission. 

“Subsidiary” of a Person means a corporation, partnership, joint venture, limited liability company or other business entity
of which (a) a majority of the shares of securities or other equity interests having ordinary voting power for the election of members of the board of managers or other governing body (other than securities or interests having such power only
by reason of the happening of a contingency that has not yet happened) are at the time beneficially owned, (b) more than half of the issued equity interests is at the time beneficially owned, or (c) the management of which is otherwise
controlled, directly or indirectly, through one or more intermediaries, or both, by such Person. Unless otherwise specified, all references herein to a “Subsidiary” or to “Subsidiaries” will refer to a Subsidiary or
Subsidiaries of the Company. 
 “Taxes” means all present or future taxes, duties, levies, imposts, deductions,
assessments, fees, withholdings (including backup withholding) or similar charges, and all liabilities (including additions to tax, penalties and interest) with respect thereto. 

“Transactions” means the transactions contemplated by this Agreement. 

“U.S.” means the United States of America. 

Section 8.2 Construction. The Parties intend that each representation, warranty, covenant and
agreement contained in this Agreement will have independent significance. The headings are for convenience only and will not be given effect in interpreting this Agreement. References to sections, articles or exhibits are to the sections, articles
and exhibits contained in, referred to by or attached to this Agreement, unless otherwise specified. Disclosure of any item in any section or subsection of the Company Disclosure Letter will be deemed disclosure with respect to any other
section or subsection to which the relevance of such item is reasonably apparent on 

  
 29 

 
the face of such disclosure. The words “hereof,” “herein” and “hereunder” and words of similar import, when used in this Agreement, refer to this Agreement as a
whole and not to any particular provision of this Agreement. The words “include,” “includes” and “including” in this Agreement mean “include/includes/including without limitation.” Except as the context
otherwise provides, the words “either,” “or,” “neither,” “nor” and “any” are not exclusive. All references to $, currency, monetary values and dollars set forth herein mean U.S. dollars. The use
of the masculine, feminine or neuter gender or the singular or plural form of words will not limit any provisions of this Agreement. References to a Person also include its permitted assigns and successors. A statement that an item is listed,
disclosed or described means that it is correctly listed, disclosed or described, and a statement that a copy of an item has been delivered means a correct and accurate copy of such item has been delivered. Any reference to a statute refers to the
statute, any amendments or successor legislation and all rules and regulations promulgated under or implementing the statute, as in effect at the relevant time. The word “extent” in the phrase “to the extent” will mean the degree
to which a subject or other thing extends, and such phrase will not mean simply “if.” All references to the knowledge of the Company or any Subsidiary of the Company or facts known by any such Person will mean actual knowledge of any
Authorized Officer of such Person. Whenever this Agreement refers to a number of days, such number will refer to calendar days, unless Business Days are specified. Whenever any action must be taken hereunder on or by a day that is not a Business
Day, then such action may be validly taken on or by the next day that is a Business Day. Any reference herein to any Law, contract, agreement or other instrument, including the governing documents of any Person will be construed as referring to such
Law, contract, agreement or instrument as amended or modified or, in the case of a Law, codified or reenacted, in each case, in whole or in part, and as in effect from time to time. The Parties acknowledge and agree that (a) each Party and its
counsel has reviewed, or has had the opportunity to review, the terms and provisions of this Agreement, (b) any rule of construction to the effect that any ambiguities are resolved against the drafting Party will not be used to interpret this
Agreement, and (c) the provisions of this Agreement will be construed fairly as to all Parties and not in favor of or against any Party, regardless of which Party was generally responsible for the preparation of this Agreement and no
presumption or burden of proof will arise favoring or disfavoring any Party by virtue of such previous drafts of this Agreement or any of the other Preferred Document or the fact that any clauses have been added, deleted or otherwise modified from
any prior drafts of this Agreement or any other Preferred Document. 
 [Remainder of page intentionally left blank] 

 

  
 30 

 IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed and
delivered as of the date first above written. 
  

			
	THE COMPANY:
	
	XPONENTIAL FITNESS, INC. 
		
	By:	 	 /s/ John Meloun

	Name: John Meloun
	Title: CFO
	
	PURCHASERS:
	
	MSD CREDIT OPPORTUNITY MASTER FUND, L.P.
	LOMBARD INTERNATIONAL LIFE LTD., on behalf of its segregated account BIGVA0005
	LOMBARD INTERNATIONAL LIFE LTD., on behalf of its segregated account BIGVA0005
	LOMBARD INTERNATIONAL LIFE LTD., on behalf of its segregated account BIGVA0006
	MSD PRIVATE CREDIT OPPORTUNITY MASTER FUND 2, L.P.
	MSD PRIVATE CREDIT OPPORTUNITY MASTER FUND, L.P.
	MSD SBAFLA FUND, L.P.
	MSD SIF HOLDINGS, L.P.
	MSD SPECIAL INVESTMENTS FUND, L.P.
		
	By:	 	 /s/ Kenneth Gerold

	Name: Kenneth Gerold
	Title: Authorized Signatory
	
	Address for Notices:
	
	 c/o MSD Partners, L.P.
 645 Fifth
Avenue, 21st Floor

	New York, NY 10022

 
					
	Attention:	 	Ken Gerold
		 	Jeremy Herz
		 	Simon Crocker

 
			
	Email:	 	 kgerold@msdpartners.com

jherz@msdpartners.com

		 	scrocker@msdpartners.com

 
			
	REDWOOD MASTER FUND LTD.
	
	By: Redwood Capital Management, LLC, its Investment Manager
		
	By:	 	 /s/ Sean Sauler

	Name: Sean Sauler
	Title: Deputy CEO

 
			
	DESALKIV PORTFOLIOS LLC

 
			
		
	By:	 	 /s/ Marianna Fassinotti

			
	Name: Marianna Fassinotti
	Title: Authorized Signatory
	
	Address for Notices:
	
	 c/o DESALKIV Portfolios LLC
 1166
Avenue of the Americas, 9th Floor

	New York, NY 10036
	Attention: Seth Charnow
		 	 Marianna Fassinotti

	Email:	 	Seth.Charnow@deshaw.com
		 	Marianna.Fassinotti@deshaw.comEX-10.1

 Exhibit 10.1 

PIERIS PHARMACEUTICALS, INC. 

2020 EMPLOYEE, DIRECTOR AND CONSULTANT EQUITY INCENTIVE PLAN, AS AMENDED 

 

	 	1.	 DEFINITIONS. 

Unless otherwise specified or unless the context otherwise requires, the following terms, as used in this Pieris Pharmaceuticals, Inc. 2020
Employee, Director and Consultant Equity Incentive Plan, as amended, have the following meanings: 
 Administrator means the Board of
Directors, unless it has delegated power to act on its behalf to the Committee, in which case the term “Administrator” means the Committee. 

Affiliate means a corporation which, for purposes of Section 424 of the Code, is a parent or subsidiary of the Company, direct or
indirect. 
 Agreement means an agreement between the Company and a Participant pertaining to a Stock Right delivered pursuant to the
Plan, in such form as the Administrator shall approve. 
 Board of Directors means the Board of Directors of the Company. 

Cause means, with respect to a Participant (a) dishonesty with respect to the Company or any Affiliate, (b) insubordination,
substantial malfeasance or non-feasance of duty, (c) unauthorized disclosure of confidential information, (d) breach by a Participant of any provision of any employment, consulting, advisory,
nondisclosure, non-competition or similar agreement between the Participant and the Company or any Affiliate, and (e) conduct substantially prejudicial to the business of the Company or any Affiliate;
provided, however, that any provision in an agreement between a Participant and the Company or an Affiliate, which contains a conflicting definition of Cause for termination and which is in effect at the time of such termination, shall supersede
this definition with respect to that Participant. The determination of the Administrator as to the existence of Cause will be conclusive on the Participant and the Company. 

Code means the United States Internal Revenue Code of 1986, as amended including any successor statute, regulation and guidance thereto.

 Committee means the committee of the Board of Directors, if any, to which the Board of Directors has delegated power to act under
or pursuant to the provisions of the Plan. 
 Common Stock means shares of the Company’s common stock, $0.001 par value per
share. 
 Company means Pieris Pharmaceuticals, Inc., a Nevada corporation. 

Consultant means any natural person who is an advisor or consultant that provides bona fide services to the Company or its Affiliates,
provided that such services are not in connection with the offer or sale of securities in a capital raising transaction, and do not directly or indirectly promote or maintain a market for the Company’s or its Affiliates’ securities. 

 Disability or Disabled means permanent and total disability as defined in
Section 22(e)(3) of the Code. 
 Director means a member of the Board of Directors. 

Directors’ Compensation Year means the approximately one-year period beginning on the date
of each regular annual stockholders meeting and ending on the date of the next regular annual stockholders meeting. 
 Employee means
any employee of the Company or of an Affiliate (including, without limitation, an employee who is also serving as an officer or Director of the Company or of an Affiliate), designated by the Administrator to be eligible to be granted one or more
Stock Rights under the Plan. 
 Exchange Act means the Securities Exchange Act of 1934, as amended. 

Fair Market Value of a Share of Common Stock means: 

(i)    If the Common Stock is listed on a national securities exchange or traded in the over-the-counter market and sales prices are regularly reported for the Common Stock, the closing or, if not applicable, the last price of the Common Stock on the composite
tape or other comparable reporting system for the trading day on the applicable date and if such applicable date is not a trading day, the last market trading day prior to such date; 

(ii)    If the Common Stock is not traded on a national securities exchange but is traded on the over-the-counter market, if sales prices are not regularly reported for the Common Stock for the trading day referred to in clause (1), and if bid and asked prices for
the Common Stock are regularly reported, the mean between the bid and the asked price for the Common Stock at the close of trading in the over-the-counter market for the
trading day on which Common Stock was traded on the applicable date and if such applicable date is not a trading day, the last market trading day prior to such date; and 

(iii)    If the Common Stock is neither listed on a national securities exchange nor traded in the over-the-counter market, such value as the Administrator, in good faith, shall determine. 

ISO means an option intended to qualify as an incentive stock option under Section 422 of the Code. 

Non-Qualified Option means an option which is not intended to qualify as an ISO. 

Option means an ISO or Non-Qualified Option granted under the Plan. 

Participant means an Employee, Director or Consultant of the Company or an Affiliate to whom one or more Stock Rights are granted under
the Plan. As used herein, “Participant” shall include “Participant’s Survivors” where the context requires. 

Performance Based Award means a Stock Grant or Stock-Based Award which vests based on the attainment of written Performance Goals as set
forth in Paragraph 9 hereof. 

 Performance Goals means performance goals determined by the Committee in its sole
discretion and set forth in an Agreement. The satisfaction of Performance Goals shall be subject to certification by the Committee. The Committee has the authority to take appropriate action with respect to the Performance Goals (including, without
limitation, making adjustments to the Performance Goals or determining the satisfaction of the Performance Goals in connection with a Corporate Transaction) provided that any such action does not otherwise violate the terms of the Plan. 

Plan means this Pieris Pharmaceuticals, Inc. 2020 Employee, Director and Consultant Equity Incentive Plan, as amended. 

Securities Act means the Securities Act of 1933, as amended. 

Shares means shares of the Common Stock as to which Stock Rights have been or may be granted under the Plan or any shares of capital
stock into which the Shares are changed or for which they are exchanged within the provisions of Paragraph 3 of the Plan. The Shares issued under the Plan may be authorized and unissued shares or shares held by the Company in its treasury, or
both. 
 Stock-Based Award means a grant by the Company under the Plan of an equity award or an equity based award which is not an
Option or a Stock Grant. 
 Stock Grant means a grant by the Company of Shares under the Plan. 

Stock Right means a right to Shares or the value of Shares of the Company granted pursuant to the Plan — an ISO, a Non-Qualified Option, a Stock Grant or a Stock-Based Award. 
 Survivor means a deceased
Participant’s legal representatives and/or any person or persons who acquired the Participant’s rights to a Stock Right by will or by the laws of descent and distribution. 

 

	 	2.	 PURPOSES OF THE PLAN. 

The Plan is intended to encourage ownership of Shares by Employees and Directors of and certain Consultants to the Company and its Affiliates
in order to attract and retain such people, to induce them to work for the benefit of the Company or of an Affiliate and to provide additional incentive for them to promote the success of the Company or of an Affiliate. The Plan provides for the
granting of ISOs, Non-Qualified Options, Stock Grants and Stock-Based Awards. 
  

	 	3.	 SHARES SUBJECT TO THE PLAN. 

(a)    Commencing on June 25, 2021, the number of Shares which may be issued from time to time pursuant to this Plan
shall be the sum of: (i) 3,939,1521/ shares of Common Stock and (ii) any shares of Common Stock that are represented by awards granted under the Company’s 2014 Employee, Director and
Consultant Equity Incentive Plan, the 2016 Employee, Director and Consultant Equity Incentive Plan, the 2018 Employee, Director and Consultant Equity Incentive Plan, and the 2019 Employee, Director and Consultant Equity Incentive Plan that are
forfeited, expire or are canceled without delivery of shares of Common Stock or which result in the forfeiture of shares of Common Stock back to the Company on or after June 23, 2020, or the equivalent of such number of Shares after 

 

	1/ 	 This number consists of 1,689,152 remaining shares available for issuance under the 2020 Plan as of
April 19, 2021 and 2,250,000 additional shares subject to stockholder approval at the annual meeting of stockholders to be held on June 25, 2021. 

 
the Administrator, in its sole discretion, has interpreted the effect of any stock split, stock dividend, combination, recapitalization or similar transaction in accordance with Paragraph 24 of
this Plan; provided, however, that no more than 11,650,575 Shares shall be added to the Plan pursuant to subsection (ii). 

(b)    If an Option ceases to be “outstanding”, in whole or in part (other than by exercise), or if the Company
shall reacquire (at not more than its original issuance price) any Shares issued pursuant to a Stock Grant or Stock-Based Award, or if any Stock Right expires or is forfeited, cancelled, or otherwise terminated or results in any Shares not being
issued, the unissued or reacquired Shares which were subject to such Stock Right shall again be available for issuance from time to time pursuant to this Plan. Notwithstanding the foregoing, if a Stock Right is exercised, in whole or in part, by
tender or withholding of Shares or if the Company or an Affiliate’s tax withholding obligation is satisfied by the tender or withholding of Shares, the number of Shares deemed to have been issued under the Plan for purposes of the limitation
set forth in Paragraph 3(a) above shall be the number of Shares that were subject to the Stock Right or portion thereof, and not the net number of Shares actually issued. In addition, Shares repurchased by the Company with the proceeds of the option
exercise price may not be reissued under the Plan. However, in the case of ISOs, the foregoing provisions shall be subject to any limitations under the Code. 
  

	 	4.	 ADMINISTRATION OF THE PLAN. 

The Administrator of the Plan will be the Board of Directors, except to the extent the Board of Directors delegates its authority to the
Committee, in which case the Committee shall be the Administrator. Subject to the provisions of the Plan, the Administrator is authorized to: 

(a)    Interpret the provisions of the Plan and all Stock Rights and to make all rules and determinations which it deems
necessary or advisable for the administration of the Plan; 
 (b)    Determine which Employees, Directors and
Consultants shall be granted Stock Rights provided that no more than 100,000 Shares may be issued under the Plan as “full value awards” (Stock Grants, restricted stock units, performance shares and other full value Stock-Based Awards);
provided, if a full value award expires, is forfeited, or otherwise lapses, the shares that were subject to the full value award shall again be available for the grant of full value awards; 

(c)    Determine the number of Shares for which a Stock Right or Stock Rights shall be granted, provided however that in
no event shall Stock Rights to be granted to any non-employee director under the Plan in any calendar year exceed an aggregate grant date fair value of $400,000 except that the foregoing limitation shall not
apply to awards granted (i) pursuant to an election by a non-employee director to receive the award in lieu of cash for all or a portion of cash fees to be received for service on the Board or any
Committee thereof or (ii) in connection with a non-employee director initially joining the Board of Directors; 

(d)    Specify the terms and conditions upon which a Stock Right or Stock Rights may be granted, provided that no
dividends or dividend equivalents shall be paid on any Stock Right prior to the vesting of the underlying Shares and no Stock Right shall be granted with a vesting schedule providing for exercisability or the lapsing of restrictions or repurchase
rights over a period of less than one year from the date of grant. Notwithstanding the foregoing: (i) Stock Rights may be granted that do not comply with the applicable one-year minimum vesting
requirement set forth above with respect to a maximum of 5% of the Shares reserved for issuance under the Plan; (ii) for purposes of counting Shares against the 5% limitation, the Share counting rules under Section 3 of the Plan apply;
(iii) Stock Rights granted to non-employee Directors with vesting at the end of a Directors’ Compensation Year shall not be counted against the 5% limitation; and (iv) nothing in this
Section 4(d) shall limit the authority of the Administrator to provide for the acceleration of the exercisability of any Stock Right or the lapse of any restrictions relating to any Stock Right, except as expressly limited by
Section 24(e); 

 (e)    Determine and make any adjustments in the Performance Goals
included in any Performance-Based Awards; 
 (f)    Amend any term or condition of any outstanding Stock Right, other
than reducing the exercise price or purchase price or extending the expiration date of an Option, provided that (i) such term or condition as amended is not prohibited by the Plan; (ii) any such amendment shall not impair the rights of a
Participant under any Stock Right previously granted without such Participant’s consent or in the event of death of the Participant the Participant’s Survivors; and (iii) any such amendment shall be made only after the Administrator
determines whether such amendment would cause any adverse tax consequences to the Participant, including, but not limited to, the annual vesting limitation contained in Section 422(d) of the Code and described in Paragraph 6(b)(iv) below with
respect to ISOs and pursuant to Section 409A of the Code; and 
 (g)    Adopt any
sub-plans applicable to residents of any specified jurisdiction as it deems necessary or appropriate in order to comply with or take advantage of any tax or other laws applicable to the Company, any Affiliate
or to Participants or to otherwise facilitate the administration of the Plan, which sub-plans may include additional restrictions or conditions applicable to Stock Rights or Shares issuable pursuant to a Stock
Right; provided, however, that all such interpretations, rules, determinations, terms and conditions shall be made and prescribed in the context of not causing any adverse tax consequences under Section 409A of the Code and preserving the tax
status under Section 422 of the Code of those Options which are designated as ISOs. Subject to the foregoing, the interpretation and construction by the Administrator of any provisions of the Plan or of any Stock Right granted under it shall be
final, unless otherwise determined by the Board of Directors, if the Administrator is the Committee. In addition, if the Administrator is the Committee, the Board of Directors may take any action under the Plan that would otherwise be the
responsibility of the Committee. 
 To the extent permitted under applicable law, the Board of Directors or the Committee may allocate all
or any portion of its responsibilities and powers to any one or more of its members and may delegate all or any portion of its responsibilities and powers to any other person selected by it. The Board of Directors or the Committee may revoke any
such allocation or delegation at any time. Notwithstanding the foregoing, only the Board of Directors or the Committee shall be authorized to grant a Stock Right to any Director of the Company or to any “officer” of the Company as defined
by Rule 16a-1 under the Exchange Act. 
  

	 	5.	 ELIGIBILITY FOR PARTICIPATION. 

The Administrator will, in its sole discretion, name the Participants in the Plan; provided, however, that each Participant must be an
Employee, Director or Consultant of the Company or of an Affiliate at the time a Stock Right is granted. Notwithstanding the foregoing, the Administrator may authorize the grant of a Stock Right to a person not then an Employee, Director or
Consultant of the Company or of an Affiliate; provided, however, that the actual grant of such Stock Right shall be conditioned upon such person becoming eligible to become a Participant at or prior to the time of the execution of the Agreement
evidencing such Stock Right. ISOs may be granted only to Employees who are deemed to be residents of the United States for tax purposes. Non-Qualified Options, Stock Grants and Stock-Based Awards may be
granted to any Employee, Director or Consultant of the Company or an Affiliate. The granting of any Stock Right to any individual shall neither entitle that individual to, nor disqualify him or her from, participation in any other grant of Stock
Rights or any grant under any other benefit plan established by the Company or any Affiliate for Employees, Directors or Consultants. 

	 	6.	 TERMS AND CONDITIONS OF OPTIONS. 

Each Option shall be set forth in an Option Agreement, duly executed by the Company and, to the extent required by law or requested by the
Company, by the Participant. The Administrator may provide that Options be granted subject to such terms and conditions, consistent with the terms and conditions specifically required under this Plan, as the Administrator may deem appropriate
including, without limitation, subsequent approval by the stockholders of the Company of this Plan or any amendments thereto. The Option Agreements shall be subject to at least the following terms and conditions: 

(a)    Non-Qualified Options: Each Option intended to be a Non-Qualified Option shall be subject to the terms and conditions which the Administrator determines to be appropriate and in the best interest of the Company, subject to the following minimum standards for any such
Non-Qualified Option: 
  

	 	(i)	 Exercise Price: Each Option Agreement shall state the exercise price (per share) of the Shares covered
by each Option, which exercise price shall be determined by the Administrator and shall be at least equal to the Fair Market Value per share of Common Stock on the date of grant of the Option. 

 

	 	(ii)	 Number of Shares: Each Option Agreement shall state the number of Shares to which it pertains.

  

	 	(iii)	 Vesting: Each Option Agreement shall state the date or dates on which it first is exercisable and the
date after which it may no longer be exercised, and may provide that the Option rights accrue or become exercisable in installments over a period of months or years, or upon the occurrence of certain performance conditions or the attainment of
stated goals or events. 

  

	 	(iv)	 Additional Conditions: Exercise of any Option may be conditioned upon the Participant’s execution
of a Share purchase agreement in a form satisfactory to the Administrator providing for certain protections for the Company and its other stockholders, including requirements that: 

 

	 	1.	 The Participant’s or the Participant’s Survivors’ right to sell or transfer the Shares may be
restricted; and 

  

	 	2.	 The Participant or the Participant’s Survivors may be required to execute letters of investment intent and
must also acknowledge that the Shares will bear legends noting any applicable restrictions. 

  

	 	(v)	 Term of Option: Each Option shall terminate not more than ten years from the date of the grant or at
such earlier time as the Option Agreement may provide. 

 (b)    ISOs: Each Option intended to
be an ISO shall be issued only to an Employee who is deemed to be a resident of the United States for tax purposes, and shall be subject to the following terms and conditions, with such additional restrictions or changes as the Administrator
determines are appropriate but not in conflict with Section 422 of the Code and relevant regulations and rulings of the Internal Revenue Service: 
  

	 	(i)	 Minimum standards: The ISO shall meet the minimum standards required of
Non-Qualified Options, as described in Paragraph 6(a) above, except clause (i) and (v) thereunder. 

	 	(ii)	 Exercise Price: Immediately before the ISO is granted, if the Participant owns, directly or by reason of
the applicable attribution rules in Section 424(d) of the Code: 

  

	 	1.	 10% or less of the total combined voting power of all classes of stock of the Company or an Affiliate, the
exercise price per share of the Shares covered by each ISO shall not be less than 100% of the Fair Market Value per share of the Common Stock on the date of grant of the Option; or 

 

	 	2.	 More than 10% of the total combined voting power of all classes of stock of the Company or an Affiliate, the
exercise price per share of the Shares covered by each ISO shall not be less than 110% of the Fair Market Value per share of the Common Stock on the date of grant of the Option. 

 

	 	(iii)	 Term of Option: For Participants who own: 

 

	 	1.	 10% or less of the total combined voting power of all classes of stock of the Company or an Affiliate, each ISO
shall terminate not more than ten years from the date of the grant or at such earlier time as the Option Agreement may provide; or 

  

	 	2.	 More than 10% of the total combined voting power of all classes of stock of the Company or an Affiliate, each
ISO shall terminate not more than five years from the date of the grant or at such earlier time as the Option Agreement may provide. 

  

	 	(iv)	 Limitation on Yearly Exercise: The Option Agreements shall restrict the amount of ISOs which may become
exercisable in any calendar year (under this or any other ISO plan of the Company or an Affiliate) so that the aggregate Fair Market Value (determined on the date each ISO is granted) of the stock with respect to which ISOs are exercisable for the
first time by the Participant in any calendar year does not exceed $100,000. 

  

	 	7.	 TERMS AND CONDITIONS OF STOCK GRANTS. 

Each Stock Grant to a Participant shall state the principal terms in a Stock Grant Agreement duly executed by the Company and, to the extent
required by law or requested by the Company, by the Participant. The Stock Grant Agreement shall be in a form approved by the Administrator and shall contain terms and conditions which the Administrator determines to be appropriate and in the best
interest of the Company, subject to the following minimum standards: 
 (a)    Each Stock Grant Agreement shall state
the purchase price per share, if any, of the Shares covered by each Stock Grant, which purchase price shall be determined by the Administrator but shall not be less than the minimum consideration required by the laws of the state of Nevada, if any,
on the date of the grant of the Stock Grant; 
 (b)    Each Stock Grant Agreement shall state the number of Shares to
which the Stock Grant pertains; 

 (c)    Each Stock Grant Agreement shall include the terms of any right
of the Company to restrict or reacquire the Shares subject to the Stock Grant, including the time period or attainment of Performance Goals or such other performance criteria upon which such rights shall accrue and the purchase price therefor, if
any; and 
 (d)    Dividends (other than stock dividends to be issued pursuant to Section 24 of the Plan) may
accrue but shall not be paid prior to the time, and may be paid only to the extent that the restrictions or rights to reacquire the Shares subject to the Stock Grant lapse. 
  

	 	8.	 TERMS AND CONDITIONS OF OTHER STOCK-BASED AWARDS. 

The Administrator shall have the right to grant other Stock-Based Awards based upon the Common Stock having such terms and conditions as the
Administrator may determine, including, without limitation, the grant of Shares based upon certain conditions, the grant of securities convertible into Shares and the grant of stock appreciation rights, phantom stock awards or stock units. The
principal terms of each Stock-Based Award shall be set forth in a Stock-Based Award Agreement, duly executed by the Company and, to the extent required by law or requested by the Company, by the Participant. The Stock-Based Award Agreement shall be
in a form approved by the Administrator and shall contain terms and conditions which the Administrator determines to be appropriate and in the best interest of the Company. Each Stock-Based Award Agreement shall include the terms of any right of the
Company including the right to terminate the Stock-Based Award without the issuance of Shares, the terms of any vesting conditions, Performance Goals or events upon which Shares shall be issued, provided that dividends (other than stock dividends to
be issued pursuant to Section 24 of the Plan) or dividend equivalents may accrue but shall not be paid prior to and may be paid only to the extent that the Shares subject to the Stock-Based Award vest. Under no circumstances may the Agreement
covering stock appreciation rights (a) have an exercise price (per share) that is less than the Fair Market Value per share of Common Stock on the date of grant or (b) expire more than ten years following the date of grant. 

The Company intends that the Plan and any Stock-Based Awards granted hereunder be exempt from the application of Section 409A of the Code
or meet the requirements of paragraphs (2), (3) and (4) of subsection (a) of Section 409A of the Code, to the extent applicable, and be operated in accordance with Section 409A so that any compensation deferred under any
Stock-Based Award (and applicable investment earnings) shall not be included in income under Section 409A of the Code. Any ambiguities in the Plan shall be construed to effect the intent as described in this Paragraph 8. 

 

	 	9.	 PERFORMANCE BASED AWARDS. 

The Committee shall determine whether, with respect to a performance period, the applicable Performance Goals have been met with respect to a
given Participant and, if they have, to so certify and ascertain the amount of the applicable Performance-Based Award. No Performance-Based Awards will be issued for such performance period until such certification is made by the Committee. The
number of Shares issued in respect of a Performance-Based Award determined by the Committee for a performance period shall be paid to the Participant at such time as determined by the Committee in its sole discretion after the end of such
performance period, and any dividends (other than stock dividends to be issued pursuant to Section 24 of the Plan) or dividend equivalents that accrue shall only be paid in respect of the number of Shares earned in respect of such
Performance-Based Award. 
  

	 	10.	 EXERCISE OF OPTIONS AND ISSUE OF SHARES. 

An Option (or any part or installment thereof) shall be exercised by giving written notice to the Company or its designee (in a form acceptable
to the Administrator, which may include electronic notice), together with provision for payment of the aggregate exercise price in accordance with this Paragraph 10 for the Shares as to which the Option

 
is being exercised, and upon compliance with any other condition(s) set forth in the Option Agreement. Such notice shall be signed by the person exercising the Option (which signature may be
provided electronically in a form acceptable to the Administrator), shall state the number of Shares with respect to which the Option is being exercised and shall contain any representation required by the Plan or the Option Agreement. Payment of
the exercise price for the Shares as to which such Option is being exercised shall be made (a) in United States dollars in cash or by check, or (b) at the discretion of the Administrator, through delivery of shares of Common Stock held for
at least six months (if required to avoid negative accounting treatment) having a Fair Market Value equal as of the date of the exercise to the aggregate cash exercise price for the number of Shares as to which the Option is being exercised, or
(c) at the discretion of the Administrator, by having the Company retain from the Shares otherwise issuable upon exercise of the Option, a number of Shares having a Fair Market Value equal as of the date of exercise to the aggregate exercise
price for the number of Shares as to which the Option is being exercised, or (d) at the discretion of the Administrator, in accordance with a cashless exercise program established with a securities brokerage firm, and approved by the
Administrator, or (e) at the discretion of the Administrator, by any combination of (a), (b), (c) and (d) above or (f) at the discretion of the Administrator, by payment of such other lawful consideration as the Administrator may
determine. Notwithstanding the foregoing, the Administrator shall accept only such payment on exercise of an ISO as is permitted by Section 422 of the Code. 

The Company shall then reasonably promptly deliver the Shares as to which such Option was exercised to the Participant (or to the
Participant’s Survivors, as the case may be). In determining what constitutes “reasonably promptly,” it is expressly understood that the issuance and delivery of the Shares may be delayed by the Company in order to comply with any law
or regulation (including, without limitation, state securities or “blue sky” laws) which requires the Company to take any action with respect to the Shares prior to their issuance. The Shares shall, upon delivery, be fully paid, non-assessable Shares. 
  

	 	11.	 PAYMENT IN CONNECTION WITH THE ISSUANCE OF STOCK GRANTS AND STOCK-BASED AWARDS AND ISSUE OF SHARES.

 Any Stock Grant or Stock-Based Award requiring payment of a purchase price for the Shares as to which such Stock Grant
or Stock-Based Award is being granted shall be made (a) in United States dollars in cash or by check, or (b) at the discretion of the Administrator, through delivery of shares of Common Stock held for at least six months (if required to
avoid negative accounting treatment) and having a Fair Market Value equal as of the date of payment to the purchase price of the Stock Grant or Stock-Based Award, or (c) at the discretion of the Administrator, by any combination of (a) and
(b) above; or (d) at the discretion of the Administrator, by payment of such other lawful consideration as the Administrator may determine. 

The Company shall, when required by the applicable Agreement, reasonably promptly deliver the Shares as to which such Stock Grant or
Stock-Based Award was made to the Participant (or to the Participant’s Survivors, as the case may be), subject to any escrow provision set forth in the applicable Agreement. In determining what constitutes “reasonably promptly,” it is
expressly understood that the issuance and delivery of the Shares may be delayed by the Company in order to comply with any law or regulation (including, without limitation, state securities or “blue sky” laws) which requires the Company
to take any action with respect to the Shares prior to their issuance. 
  

	 	12.	 RIGHTS AS A STOCKHOLDER. 

No Participant to whom a Stock Right has been granted shall have rights as a stockholder with respect to any Shares covered by such Stock Right
except after due exercise of an Option or issuance of Shares as set forth in any Agreement, tender of the aggregate exercise or purchase price, if any, for the Shares being purchased and registration of the Shares in the Company’s share
register in the name of the Participant. 

	 	13.	 ASSIGNABILITY AND TRANSFERABILITY OF STOCK RIGHTS. 

By its terms, a Stock Right granted to a Participant shall not be transferable by the Participant other than (i) by will or by the laws of
descent and distribution, or (ii) as approved by the Administrator in its discretion and set forth in the applicable Agreement provided that no Stock Right may be transferred by a Participant for value. Notwithstanding the foregoing, an ISO
transferred except in compliance with clause (i) above shall no longer qualify as an ISO. The designation of a beneficiary of a Stock Right by a Participant, with the prior approval of the Administrator and in such form as the Administrator
shall prescribe, shall not be deemed a transfer prohibited by this Paragraph 13. Except as provided above during the Participant’s lifetime a Stock Right shall only be exercisable by or issued to such Participant (or his or her legal
representative) and shall not be assigned, pledged or hypothecated in any way (whether by operation of law or otherwise) and shall not be subject to execution, attachment or similar process. Any attempted transfer, assignment, pledge, hypothecation
or other disposition of any Stock Right or of any rights granted thereunder contrary to the provisions of this Plan, or the levy of any attachment or similar process upon a Stock Right, shall be null and void. 

 

	 	14.	 EFFECT ON OPTIONS OF TERMINATION OF SERVICE OTHER THAN FOR CAUSE OR DEATH OR DISABILITY.

 Except as otherwise provided in a Participant’s Option Agreement, in the event of a termination of service (whether
as an Employee, Director or Consultant) with the Company or an Affiliate before the Participant has exercised an Option, the following rules apply: 

(a)    A Participant who ceases to be an Employee, Director or Consultant of the Company or of an Affiliate (for any
reason other than termination for Cause, Disability, or death for which events there are special rules in Paragraphs 15, 16, and 17, respectively), may exercise any Option granted to him or her to the extent that the Option is exercisable on the
date of such termination of service, but only within such term as the Administrator has designated in a Participant’s Option Agreement. 

(b)    Except as provided in Subparagraph (c) below, or Paragraph 16 or 17, in no event may an Option intended to be
an ISO, be exercised later than three months after the Participant’s termination of employment. 
 (c)    The
provisions of this Paragraph 14, and not the provisions of Paragraph 16 or 17, shall apply to a Participant who subsequently becomes Disabled or dies after the termination of employment, director status or consultancy; provided, however, in the case
of a Participant’s Disability or death within three months after the termination of employment, director status or consultancy, the Participant or the Participant’s Survivors may exercise the Option within one year after the date of the
Participant’s termination of service, but in no event after the date of expiration of the term of the Option. 

(d)    Notwithstanding anything herein to the contrary, if subsequent to a Participant’s termination of employment,
termination of director status or termination of consultancy, but prior to the exercise of an Option, the Administrator determines that, either prior or subsequent to the Participant’s termination, the Participant engaged in conduct which would
constitute Cause, then such Participant shall forthwith cease to have any right to exercise any Option. 

 (e)    A Participant to whom an Option has been granted under the Plan
who is absent from the Company or an Affiliate because of temporary disability (any disability other than a Disability as defined in Paragraph 1 hereof), or who is on leave of absence for any purpose, shall not, during the period of any such
absence, be deemed, by virtue of such absence alone, to have terminated such Participant’s employment, director status or consultancy with the Company or with an Affiliate, except as the Administrator may otherwise expressly provide; provided,
however, that, for ISOs, any leave of absence granted by the Administrator of greater than three months, unless pursuant to a contract or statute that guarantees the right to reemployment, shall cause such ISO to become a Non-Qualified Option on the date that is six months following the commencement of such leave of absence. 

(f)    Except as required by law or as set forth in a Participant’s Option Agreement, Options granted under the Plan
shall not be affected by any change of a Participant’s status within or among the Company and any Affiliates, so long as the Participant continues to be an Employee, director or Consultant of the Company or any Affiliate. 

 

	 	15.	 EFFECT ON OPTIONS OF TERMINATION OF SERVICE FOR CAUSE. 

Except as otherwise provided in a Participant’s Option Agreement, the following rules apply if the Participant’s service (whether as
an Employee, director or Consultant) with the Company or an Affiliate is terminated for Cause prior to the time that all his or her outstanding Options have been exercised: 

(a)    All outstanding and unexercised Options as of the time the Participant is notified his or her service is terminated
for Cause will immediately be forfeited. 
 (b)    Cause is not limited to events which have occurred prior to a
Participant’s termination of service, nor is it necessary that the Administrator’s finding of Cause occur prior to termination. If the Administrator determines, subsequent to a Participant’s termination of service but prior to the
exercise of an Option, that either prior or subsequent to the Participant’s termination the Participant engaged in conduct which would constitute Cause, then the right to exercise any Option is forfeited. 

 

	 	16.	 EFFECT ON OPTIONS OF TERMINATION OF SERVICE FOR DISABILITY. 

Except as otherwise provided in a Participant’s Option Agreement: 

(a)    A Participant who ceases to be an Employee, director or Consultant of the Company or of an Affiliate by reason of
Disability may exercise any Option granted to such Participant: 
  

	 	(i)	 To the extent that the Option has become exercisable but has not been exercised on the date of the
Participant’s termination of service due to Disability; and 

  

	 	(ii)	 In the event rights to exercise the Option accrue periodically, to the extent of a pro rata portion through the
date of the Participant’s termination of service due to Disability of any additional vesting rights that would have accrued on the next vesting date had the Participant not become Disabled. The proration shall be based upon the number of days
accrued in the current vesting period prior to the date of the Participant’s termination of service due to Disability. 

(b)    A Disabled Participant may exercise the Option only within the period ending one year after the date of the
Participant’s termination of service due to Disability, notwithstanding that the Participant might have been able to exercise the Option as to some or all of the Shares on a later date if the Participant had not been terminated due to
Disability and had continued to be an Employee, director or Consultant or, if earlier, within the originally prescribed term of the Option. 

 (c)    The Administrator shall make the determination both of whether
Disability has occurred and the date of its occurrence (unless a procedure for such determination is set forth in another agreement between the Company and such Participant, in which case such procedure shall be used for such determination). If
requested, the Participant shall be examined by a physician selected or approved by the Administrator, the cost of which examination shall be paid for by the Company. 
  

	 	17.	 EFFECT ON OPTIONS OF DEATH WHILE AN EMPLOYEE, DIRECTOR OR CONSULTANT. 

Except as otherwise provided in a Participant’s Option Agreement: 

(a)    In the event of the death of a Participant while the Participant is an Employee, director or Consultant of the
Company or of an Affiliate, such Option may be exercised by the Participant’s Survivors: 
  

	 	(i)	 To the extent that the Option has become exercisable but has not been exercised on the date of death; and

  

	 	(ii)	 In the event rights to exercise the Option accrue periodically, to the extent of a pro rata portion through the
date of death of any additional vesting rights that would have accrued on the next vesting date had the Participant not died. The proration shall be based upon the number of days accrued in the current vesting period prior to the Participant’s
date of death. 

 (b)    If the Participant’s Survivors wish to exercise the Option, they must
take all necessary steps to exercise the Option within one year after the date of death of such Participant, notwithstanding that the decedent might have been able to exercise the Option as to some or all of the Shares on a later date if he or she
had not died and had continued to be an Employee, director or Consultant or, if earlier, within the originally prescribed term of the Option. 
  

	 	18.	 EFFECT OF TERMINATION OF SERVICE ON STOCK GRANTS AND STOCK-BASED AWARDS. 

In the event of a termination of service (whether as an Employee, Director or Consultant) with the Company or an Affiliate for any reason
before the Participant has accepted a Stock Grant or a Stock-Based Award and paid the purchase price, if required, such grant shall terminate. 

For purposes of this Paragraph 18, a Participant to whom a Stock Grant or Stock-Based Award has been issued under the Plan who is absent from
work with the Company or with an Affiliate because of temporary disability (any disability other than a Disability as defined in Paragraph 1 hereof), or who is on leave of absence for any purpose, shall not, during the period of any such absence, be
deemed, by virtue of such absence alone, to have terminated such Participant’s employment, director status or consultancy with the Company or with an Affiliate, except as the Administrator may otherwise expressly provide. 

In addition, for purposes of this Paragraph 18 any change of employment or other service within or among the Company and any Affiliates shall
not be treated as a termination of employment, director status or consultancy so long as the Participant continues to be an Employee, Director or Consultant of the Company or any Affiliate. 

 Except as otherwise provided in a Participant’s Agreement, in the event of a
termination of service for any reason (whether as an Employee, Director or Consultant), other than termination for Cause, death or Disability for which there are special rules in Paragraphs 19, 20, and 21 below, before all forfeiture provisions or
Company rights of repurchase shall have lapsed, then the Company shall have the right to cancel or repurchase that number of Shares subject to a Stock Grant or Stock-Based Award as to which the Company’s forfeiture or repurchase rights have not
lapsed. 
  

	 	19.	 EFFECT ON STOCK GRANTS AND STOCK-BASED AWARDS OF TERMINATION OF SERVICE FOR CAUSE.

 Except as otherwise provided in a Participant’s Agreement, the following rules apply if the Participant’s
service (whether as an Employee, Director or Consultant) with the Company or an Affiliate is terminated for Cause: 

(a)    All Shares subject to any Stock Grant or Stock-Based Award that remain subject to forfeiture provisions or as to
which the Company shall have a repurchase right shall be immediately forfeited to the Company as of the time the Participant is notified his or her service is terminated for Cause. 

(b)    Cause is not limited to events which have occurred prior to a Participant’s termination of service, nor is it
necessary that the Administrator’s finding of Cause occur prior to termination. If the Administrator determines, subsequent to a Participant’s termination of service, that either prior or subsequent to the Participant’s termination
the Participant engaged in conduct which would constitute Cause, then all Shares subject to any Stock Grant or Stock-Based Award that remained subject to forfeiture provisions or as to which the Company had a repurchase right on the date of
termination shall be immediately forfeited to the Company. 
  

	 	20.	 EFFECT ON STOCK GRANTS AND STOCK-BASED AWARDS OF TERMINATION OF SERVICE FOR DISABILITY.

 Except as otherwise provided in a Participant’s Agreement, the following rules apply if a Participant ceases to be
an Employee, Director or Consultant of the Company or of an Affiliate by reason of Disability: to the extent the forfeiture provisions or the Company’s rights of repurchase have not lapsed on the date of Disability, they shall be exercisable;
provided, however, that in the event such forfeiture provisions or rights of repurchase lapse periodically, such provisions or rights shall lapse to the extent of a pro rata portion of the Shares subject to such Stock Grant or Stock-Based Award
through the date of Disability as would have lapsed had the Participant not become Disabled. The proration shall be based upon the number of days accrued prior to the date of Disability. 

The Administrator shall make the determination both as to whether Disability has occurred and the date of its occurrence (unless a procedure
for such determination is set forth in another agreement between the Company and such Participant, in which case such procedure shall be used for such determination). If requested, the Participant shall be examined by a physician selected or
approved by the Administrator, the cost of which examination shall be paid for by the Company. 
  

	 	21.	 EFFECT ON STOCK GRANTS AND STOCK-BASED AWARDS OF DEATH WHILE AN EMPLOYEE, DIRECTOR OR CONSULTANT.

 Except as otherwise provided in a Participant’s Agreement, the following rules apply in the event of the death of a
Participant while the Participant is an Employee, Director or Consultant of the Company or of an Affiliate: to the extent the forfeiture provisions or the Company’s rights of repurchase have not lapsed on the date of death, they shall be
exercisable; provided, however, that in the event such forfeiture provisions or rights of repurchase lapse 

 
periodically, such provisions or rights shall lapse to the extent of a pro rata portion of the Shares subject to such Stock Grant or Stock-Based Award through the date of death as would have
lapsed had the Participant not died. The proration shall be based upon the number of days accrued prior to the Participant’s date of death. 
  

	 	22.	 PURCHASE FOR INVESTMENT. 

Unless the offering and sale of the Shares shall have been effectively registered under the Securities Act, the Company shall be under no
obligation to issue Shares under the Plan unless and until the following conditions have been fulfilled: 
 (a)    The
person who receives a Stock Right shall warrant to the Company, prior to the receipt of Shares, that such person is acquiring such Shares for his or her own account, for investment, and not with a view to, or for sale in connection with, the
distribution of any such Shares, in which event the person acquiring such Shares shall be bound by the provisions of the following legend (or a legend in substantially similar form) which shall be endorsed upon the certificate evidencing the Shares
issued pursuant to such exercise or such grant of a Stock Right: 
 “The shares represented by this certificate have been taken for
investment and they may not be sold or otherwise transferred by any person, including a pledgee, unless (1) either (a) a Registration Statement with respect to such shares shall be effective under the Securities Act of 1933, as amended, or
(b) the Company shall have received an opinion of counsel satisfactory to it that an exemption from registration under such Act is then available, and (2) there shall have been compliance with all applicable state securities laws.”

 (b)    At the discretion of the Administrator, the Company shall have received an opinion of its counsel that the
Shares may be issued in compliance with the Securities Act without registration thereunder. 
  

	 	23.	 DISSOLUTION OR LIQUIDATION OF THE COMPANY. 

Upon the dissolution or liquidation of the Company, all Options granted under this Plan which as of such date shall not have been exercised and
all Stock Grants and Stock-Based Awards which have not been accepted, to the extent required under the applicable Agreement, will terminate and become null and void; provided, however, that if the rights of a Participant or a Participant’s
Survivors have not otherwise terminated and expired, the Participant or the Participant’s Survivors will have the right immediately prior to such dissolution or liquidation to exercise or accept any Stock Right to the extent that the Stock
Right is exercisable or subject to acceptance as of the date immediately prior to such dissolution or liquidation. Upon the dissolution or liquidation of the Company, any outstanding Stock-Based Awards shall immediately terminate unless otherwise
determined by the Administrator or specifically provided in the applicable Agreement. 
  

	 	24.	 ADJUSTMENTS. 

Upon the occurrence of any of the following events, a Participant’s rights with respect to any Stock Right granted to him or her hereunder
shall be adjusted as hereinafter provided, unless otherwise specifically provided in a Participant’s Agreement. 

(a)    Stock Dividends and Stock Splits. If (i) the shares of Common Stock shall be subdivided or combined
into a greater or smaller number of shares or if the Company shall issue any shares of Common Stock as a stock dividend on its outstanding Common Stock, or (ii) additional shares or new or different shares or other securities

 
of the Company or other non-cash assets are distributed with respect to such shares of Common Stock, each Stock Right and the number of shares of Common
Stock deliverable thereunder shall be appropriately increased or decreased proportionately, and appropriate adjustments shall be made including, in the exercise or purchase price per share and the Performance Goals applicable to outstanding
Performance-Based Awards, to reflect such events. The number of Shares subject to the limitations in Paragraph 3(a) and 4(c) shall also be proportionately adjusted upon the occurrence of such events. 

(b)    Corporate Transactions. If the Company is to be consolidated with or acquired by another entity in a merger,
consolidation, or sale of all or substantially all of the Company’s assets or the acquisition of all of the outstanding voting stock of the Company in a single transaction or a series of related transactions by a single entity other than a
transaction to merely change the state of incorporation (a “Corporate Transaction”), the Administrator or the board of directors of any entity assuming the obligations of the Company hereunder (the “Successor Board”), shall, as
to outstanding Options, either (i) make appropriate provision for the continuation of such Options by substituting on an equitable basis for the Shares then subject to such Options either the consideration payable with respect to the
outstanding shares of Common Stock in connection with the Corporate Transaction or securities of any successor or acquiring entity; or (ii) upon written notice to the Participants, provide that such Options must be exercised (either (A) to
the extent then exercisable or, (B) at the discretion of the Administrator, any such Options being made partially or fully exercisable for purposes of this Subparagraph), within a specified number of days of the date of such notice, at the end
of which period such Options which have not been exercised shall terminate; or (iii) terminate such Options in exchange for payment of an amount equal to the consideration payable upon consummation of such Corporate Transaction to a holder of
the number of shares of Common Stock into which such Option would have been exercisable (either (A) to the extent then exercisable or, (B) at the discretion of the Administrator, any such Options being made partially or fully exercisable
for purposes of this Subparagraph) less the aggregate exercise price thereof. For purposes of determining the payments to be made pursuant to Subclause (iii) above, in the case of a Corporate Transaction the consideration for which, in
whole or in part, is other than cash, the consideration other than cash shall be valued at the fair value thereof as determined in good faith by the Board of Directors. 

With respect to outstanding Stock Grants, the Administrator or the Successor Board, shall make appropriate provision for the continuation of
such Stock Grants on the same terms and conditions by substituting on an equitable basis for the Shares then subject to such Stock Grants either the consideration payable with respect to the outstanding Shares of Common Stock in connection with the
Corporate Transaction or securities of any successor or acquiring entity. In lieu of the foregoing, in connection with any Corporate Transaction, the Administrator may provide that, upon consummation of the Corporate Transaction, each outstanding
Stock Grant shall be terminated in exchange for payment of an amount equal to the consideration payable upon consummation of such Corporate Transaction to a holder of the number of shares of Common Stock comprising such Stock Grant (to the extent
such Stock Grant is no longer subject to any forfeiture or repurchase rights then in effect or, at the discretion of the Administrator, all forfeiture and repurchase rights being waived upon such Corporate Transaction). 

In taking any of the actions permitted under this Paragraph 24(b), the Administrator shall not be obligated by the Plan to treat all Stock
Rights, all Stock Rights held by a Participant, or all Stock Rights of the same type, identically. 

(c)    Recapitalization or Reorganization. In the event of a recapitalization or reorganization of the Company
other than a Corporate Transaction pursuant to which securities of the Company or of another corporation are issued with respect to the outstanding shares of Common Stock, a Participant upon exercising an Option or accepting a Stock Grant after the
recapitalization or reorganization shall be entitled to receive for the price paid upon such exercise or acceptance if any, the number of replacement securities which would have been received if such Option had been exercised or Stock Grant accepted
prior to such recapitalization or reorganization. 

 (d)    Adjustments to Stock-Based Awards. Upon the happening of
any of the events described in Subparagraphs (a), (b) or (c) above, any outstanding Stock-Based Award shall be appropriately adjusted to reflect the events described in such Subparagraphs. The Administrator or the Successor Board shall
determine the specific adjustments to be made under this Paragraph 24, including, but not limited to the effect of any, Corporate Transaction and, subject to Paragraph 4, its determination shall be conclusive. 

(e)    Modification of Options. Notwithstanding the foregoing, any adjustments made pursuant to Subparagraph (a),
(b) or (c) above with respect to Options shall be made only after the Administrator determines whether such adjustments would (i) constitute a “modification” of any ISOs (as that term is defined in Section 424(h) of the
Code) or (ii) cause any adverse tax consequences for the holders of Options, including, but not limited to, pursuant to Section 409A of the Code. If the Administrator determines that such adjustments made with respect to Options would
constitute a modification or other adverse tax consequence, it may refrain from making such adjustments, unless the holder of an Option specifically agrees in writing that such adjustment be made and such writing indicates that the holder has full
knowledge of the consequences of such “modification” on his or her income tax treatment with respect to the Option. This paragraph shall not apply to the acceleration of the vesting of any ISO that would cause any portion of the ISO to
violate the annual vesting limitation contained in Section 422(d) of the Code, as described in Paragraph 6(b)(iv). 
  

	 	25.	 ISSUANCES OF SECURITIES. 

Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock
of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares subject to Stock Rights. Except as expressly provided herein, no adjustments shall be made for dividends paid in cash or in
property (including without limitation, securities) of the Company prior to any issuance of Shares pursuant to a Stock Right. 
  

	 	26.	 FRACTIONAL SHARES. 

No fractional shares shall be issued under the Plan and the person exercising a Stock Right shall receive from the Company cash in lieu of such
fractional shares equal to the Fair Market Value thereof. 
  

	 	27.	 CONVERSION OF ISOs INTO NON-QUALIFIED OPTIONS; TERMINATION OF
ISOs. 

 The Administrator, at the written request of any Participant, may in its discretion take such actions as may
be necessary to convert such Participant’s ISOs (or any portions thereof) that have not been exercised on the date of conversion into Non-Qualified Options at any time prior to the expiration of such
ISOs, regardless of whether the Participant is an Employee of the Company or an Affiliate at the time of such conversion. At the time of such conversion, the Administrator (with the consent of the Participant) may impose such conditions on the
exercise of the resulting Non-Qualified Options as the Administrator in its discretion may determine, provided that such conditions shall not be inconsistent with this Plan. Nothing in the Plan shall be deemed
to give any Participant the right to have such Participant’s ISOs converted into Non-Qualified Options, and no such conversion shall occur until and unless the Administrator takes appropriate action. The
Administrator, with the consent of the Participant, may also terminate any portion of any ISO that has not been exercised at the time of such conversion. 
  

	 	28.	 WITHHOLDING. 

In the event that any federal, state, or local income taxes, employment taxes, Federal Insurance Contributions Act (“F.I.C.A.”)
withholdings or other amounts are required by applicable law or governmental regulation to be 

 
withheld from the Participant’s salary, wages or other remuneration in connection with the issuance of a Stock Right or Shares under the Plan or for any other reason required by law, the
Company may withhold from the Participant’s compensation, if any, or may require that the Participant advance in cash to the Company, or to any Affiliate of the Company which employs or employed the Participant, the statutory minimum amount of
such withholdings unless a different withholding arrangement, including the use of shares of the Company’s Common Stock or a promissory note, is authorized by the Administrator (and permitted by law). For purposes hereof, the fair market value
of the shares withheld for purposes of payroll withholding shall be determined in the manner set forth under the definition of Fair Market Value provided in Paragraph 1 above, as of the most recent practicable date prior to the date of exercise. If
the Fair Market Value of the shares withheld is less than the amount of payroll withholdings required, the Participant may be required to advance the difference in cash to the Company or the Affiliate employer. The Administrator in its discretion
may condition the exercise of an Option for less than the then Fair Market Value on the Participant’s payment of such additional withholding. 
  

	 	29.	 NOTICE TO COMPANY OF DISQUALIFYING DISPOSITION. 

Each Employee who receives an ISO must agree to notify the Company in writing immediately after the Employee makes a Disqualifying Disposition
of any Shares acquired pursuant to the exercise of an ISO. A Disqualifying Disposition is defined in Section 424(c) of the Code and includes any disposition (including any sale or gift) of such Shares before the later of (a) two years
after the date the Employee was granted the ISO, or (b) one year after the date the Employee acquired Shares by exercising the ISO, except as otherwise provided in Section 424(c) of the Code. If the Employee has died before such Shares are
sold, these holding period requirements do not apply and no Disqualifying Disposition can occur thereafter. 
  

	 	30.	 TERMINATION OF THE PLAN. 

The Plan will terminate on April 11, 2030, the date which is ten years from the
earlier of the date of its adoption by the Board of Directors and the date of its approval by the stockholders of the Company. The Plan may be terminated at an earlier date by vote of the stockholders or the Board of Directors of the Company;
provided, however, that any such earlier termination shall not affect any Agreements executed prior to the effective date of such termination. Termination of the Plan shall not affect any Stock Rights theretofore granted. 

 

	 	31.	 AMENDMENT OF THE PLAN AND AGREEMENTS. 

The Plan may be amended by the stockholders of the Company. The Plan may also be amended by the Administrator, provided that any amendment
approved by the Administrator which the Administrator determines is of a scope that requires stockholder approval shall be subject to obtaining such stockholder approval including, without limitation, to the extent necessary to qualify any or all
outstanding Stock Rights granted under the Plan or Stock Rights to be granted under the Plan for favorable federal income tax treatment as may be afforded incentive stock options under Section 422 of the Code and to the extent necessary to
qualify the Shares issuable under the Plan for listing on any national securities exchange or quotation in any national automated quotation system of securities dealers. Other than as set forth in Paragraph 24 of the Plan, the Administrator may not
without stockholder approval reduce the exercise price of an Option or cancel any outstanding Option in exchange for a replacement option having a lower exercise price, any Stock Grant, any other Stock-Based Award or for cash. In addition, the
Administrator may not take any other action that is considered a direct or indirect “repricing” for purposes of the stockholder approval rules of the applicable securities exchange or inter-dealer quotation system on which the Shares are
listed, including any other action that is treated as a repricing under generally accepted accounting principles. Any modification or amendment of the Plan shall not, without the consent of a Participant, adversely affect his or her rights under a
Stock Right 

 
previously granted to him or her, unless such amendment is required by applicable law or necessary to preserve the economic value of such Stock Right. With the consent of the Participant
affected, the Administrator may amend outstanding Agreements in a manner which may be adverse to the Participant but which is not inconsistent with the Plan. In the discretion of the Administrator, outstanding Agreements may be amended by the
Administrator in a manner which is not adverse to the Participant. Nothing in this Paragraph 31 shall limit the Administrator’s authority to take any action permitted pursuant to Paragraph 24. 

 

	 	32.	 EMPLOYMENT OR OTHER RELATIONSHIP. 

Nothing in this Plan or any Agreement referred to herein shall be deemed to prevent the Company or an Affiliate from terminating the
employment, consultancy or director status of a Participant, nor to prevent a Participant from terminating his or her own employment, consultancy or director status or to give any Participant a right to be retained in employment or other service by
the Company or any Affiliate for any period of time. 
  

	 	33.	 SECTION 409A. 

If a Participant is a “specified employee” as defined in Section 409A of the Code (and as applied according to procedures of the
Company and its Affiliates) as of his separation from service, to the extent any payment under this Plan or pursuant to the grant of a Stock-Based Award constitutes deferred compensation (after taking into account any applicable exemptions from
Section 409A of the Code), and to the extent required by Section 409A of the Code, no payments due under this Plan or pursuant to a Stock-Based Award may be made until the earlier of: (i) the first day of the seventh month following
the Participant’s separation from service, or (ii) the Participant’s date of death; provided, however, that any payments delayed during this six-month period shall be paid in the aggregate in a
lump sum, without interest, on the first day of the seventh month following the Participant’s separation from service. 
 The
Administrator shall administer the Plan with a view toward ensuring that Stock Rights under the Plan that are subject to Section 409A of the Code comply with the requirements thereof and that Options under the Plan be exempt from the
requirements of Section 409A of the Code, but neither the Administrator nor any member of the Board, nor the Company nor any of its Affiliates, nor any other person acting hereunder on behalf of the Company, the Administrator or the Board shall
be liable to a Participant or any Survivor by reason of the acceleration of any income, or the imposition of any additional tax or penalty, with respect to a Stock Right, whether by reason of a failure to satisfy the requirements of
Section 409A of the Code or otherwise. 
  

	 	34.	 CLAWBACK. 

Notwithstanding anything to the contrary contained in this Plan, the Company may recover from a Participant any compensation received from any
Stock Right (whether or not settled) or cause a Participant to forfeit any Stock Right (whether or not vested) in the event that the Company’s Clawback Policy then in effect is triggered. 

 

	 	35.	 GOVERNING LAW. 

This Plan shall be construed and enforced in accordance with the law of the state of Nevada, without giving effect to the conflict of law
principles thereof.

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