Document:

EX-10.5

 Exhibit 10.5 

CONFIDENTIAL PORTIONS OF THIS STOCK OPTION AGREEMENT HAVE BEEN OMITTED PURSUANT TO REGULATION S-K ITEM 601(b)(10)(iv) OF THE SECURITIES ACT OF 1933, AS
AMENDED. CERTAIN CONFIDENTIAL INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (i) IS NOT MATERIAL AND (ii) WOULD LIKELY CAUSE COMPETITIVE HARM TO CORVEL IF PUBLICLY DISCLOSED. THE REDACTED TERMS HAVE BEEN MARKED IN THIS EXHIBIT AT THE
APPROPRIATE PLACES WITH EMPTY BRACKETS INDICATED BY [                ]. 
  

 
 CORVEL CORPORATION 

ID: 33-0282651 

1920 Main Street Suite 900 

Irvine, California 92614 
 Notice of Grant
of Stock Options and Option Agreement 
  
  

 

					
	 Jennifer Yoss
	  	 Option Number:
	  	008761
		  	 Plan:
	  	1988

  
  

Effective 11/05/2020, you have been granted a(n) Non-Qualified Stock Option to buy 5,000.0000 shares of CORVEL
CORPORATION (the Company) stock at $87.6900 per share. 
 The total option price of the shares granted is $438,450.00. 

Shares in each period will become fully vested on the date shown. 
  

													
	Shares	  	Vest Type	 	  	Full Vest	 	  	Expiration	 
	1,500.0000	  	 	On Vest Date	 	  	 	03/05/2022	 	  	 	11/05/2025	 
	1,500.0000	  	 	On Vest Date	 	  	 	03/05/2023	 	  	 	11/05/2025	 
	2,000.0000	  	 	On Vest Date	 	  	 	03/05/2024	 	  	 	11/05/2025	 

 Provided you continue to be a Service Provider (as defined in the Stock Option Agreement attached hereto as Exhibit A)
throughout the specified period, this option will vest based on the achievement of certain performance criteria relating to the Company’s earnings per share (“EPS”) growth. The specific EPS Targets for calendar years 2021, 2022, and
2023, are listed on Schedule A of the Stock Option Agreement. 
 Optionee hereby agrees that the option is granted pursuant to and in accordance with the
express terms and conditions of the Stock Option Agreement and the Corporation’s Restated Omnibus Incentive Plan 
  

 
 By your signature and the Company’s signature
below, you and the Company agree that these options are granted under and governed by the terms and conditions of the Company’s Stock Option Plan as amended and the Option Agreement, all of which are attached and made a part of this document.

  
  

 

					
	 

  
	 		 	 November 10, 2020

	CORVEL CORPORATION	 		 	Date
			
	 /s/ Jennifer Yoss
	 		 	 November 12, 2020

	Jennifer Yoss	 		 	Date

 Discretionary Option Grant Program 

CONFIDENTIAL PORTIONS OF THIS STOCK OPTION AGREEMENT HAVE BEEN OMITTED PURSUANT TO REGULATION S-K ITEM 601(b)(10)(iv) OF THE SECURITIES ACT OF
1933, AS AMENDED. CERTAIN CONFIDENTIAL INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (i) IS NOT MATERIAL AND (ii) WOULD LIKELY CAUSE COMPETITIVE HARM TO CORVEL IF PUBLICLY DISCLOSED. THE REDACTED TERMS HAVE BEEN MARKED IN THIS EXHIBIT
AT THE APPROPRIATE PLACES WITH EMPTY BRACKETS INDICATED BY [                    ]. 

CorVel Corporation 

Stock Option Agreement 

A.    The Board has adopted the Plan for the purpose of retaining the services of selected Employees, non-employee members of the Board (or the board of directors of any Parent or Subsidiary) and consultants and advisors who provide services to the Company (or any Parent or Subsidiary). 

B.    Optionee is to render valuable services to the Company (or a Parent or Subsidiary), and this Agreement is executed
pursuant to, and is intended to carry out the purposes of, the Plan in connection with the Company’s grant of an option to Optionee. 

C.    All capitalized terms in this Agreement shall have the meaning assigned to them in the attached Appendix. 

Now, therefore, it is hereby agreed as follows: 

1.    Grant of Option. Subject to and upon the terms and conditions set forth in this Agreement, Optionee is
hereby granted, as of the Grant Date, an option to purchase the Option Shares. The Option Shares shall be purchasable from time to time during the option term at the Exercise Price. 

2.    Option Term. This option shall expire at the close of business on the Expiration Date, unless sooner
terminated in accordance with this Agreement. 
 3.    Limited Transferability. 

(a)    During Optionee’s lifetime, this option shall be exercisable only by Optionee and shall not be assignable or
transferable other than by will, by the laws of descent and distribution following the Optionee’s death, or to any “Family Member” (as such term is defined in the General Instructions to Form
S-8 (or any successor to such Instructions or such Form) under the Securities Act), provided that Optionee may not receive any consideration for such transfer, the Family Member may not make any subsequent
transfers other than by will or by the laws of descent and distribution and the Company receives written notice of such transfer. This assigned portion may only be exercised by the person or persons who acquire a proprietary interest in the option
pursuant to the assignment. The terms applicable to the assigned portion shall be the same as those in effect for this option immediately prior to such assignment and shall be set forth in such documents issued to the assignee as the Company may
deem appropriate. 
 (b)    Should Optionee die while holding this option, then this option shall be transferred in
accordance with Optionee’s will or the laws of inheritance. However, Optionee may designate one or more persons as the beneficiary or beneficiaries of this option, and this option shall, in accordance with such designation, automatically be
transferred to such 

 
beneficiary or beneficiaries upon Optionee’s death while holding this option. Such beneficiary or beneficiaries shall take the transferred option subject to all the terms and conditions of
this Agreement, including (without limitation) the limited time period during which this option may, pursuant to Paragraph 5, be exercised following Optionee’s death. 

4.    Exercisability. This option shall become exercisable in one or more installments as specified in the
Grant Notice. As the option becomes exercisable for such installments, those installments shall accumulate, and the option shall remain exercisable for the accumulated installments until the Expiration Date or sooner termination of the option term.

 5.    Effect of Cessation of Service. 

(a)    Should Optionee cease to be a Service Provider for any reason (other than death, Permanent Disability or
Misconduct) while this option is outstanding, then this option shall remain exercisable until the earlier of (i) the expiration of the three month period commencing with the date of such cessation of Service Provider status or
(ii) the Expiration Date. 
 (b)    Should Optionee cease to be a Service Provider by reason of Permanent
Disability or death while this option is outstanding, then the option shall remain exercisable until the earlier of (i) the expiration of the twelve month period commencing with the date of such cessation of Service Provider status or
(ii) the Expiration Date. 
 (c)    Should Optionee cease to be a Service Provider due to termination for
Misconduct, then this option shall terminate immediately. 
 (d)    During the limited period of post-service
exercisability, this option may not be exercised in the aggregate for more than the number of Option Shares for which the option is exercisable at the time Optionee ceased to be a Service Provider. This option shall, immediately when Optionee ceases
to be a Service Provider for any reason, terminate with respect to any Option Shares for which this option is not otherwise at that time exercisable. Upon the expiration of the limited post-service exercise period or (if earlier) upon the Expiration
Date, this option shall terminate entirely. 
 6.    Effect of Corporate Transaction. 

(a)    This option, to the extent outstanding at the time of a Corporate Transaction but not otherwise fully exercisable,
shall automatically accelerate so that this option shall, immediately prior to the effective date of such Corporate Transaction, become exercisable for all of the Option Shares at the time subject to this option. However, this option shall
not become exercisable on such an accelerated basis, if and to the extent: (i) this option is, in connection with the Corporate Transaction, to be assumed by the successor corporation (or parent thereof) or to be replaced with a
comparable option to purchase shares of the capital stock of the successor corporation (or parent thereof) or (ii) this option is to be replaced with a cash incentive program of the successor corporation which preserves the spread existing at
the time of the Corporate Transaction on any Option Shares for which this option is not otherwise at that 

  
 2 

 
time exercisable (the excess of the Fair Market Value of those Option Shares over the aggregate Exercise Price payable for such shares) and provides for subsequent payout in accordance with the
same exercise schedule for those Option Shares set forth in the Grant Notice. 
 (b)    Upon the consummation of the
Corporate Transaction, this option shall terminate, except to the extent assumed by the successor corporation (or parent thereof) in connection with the Corporate Transaction. 

(c)    If this option is assumed in connection with a Corporate Transaction, then this option shall be appropriately
adjusted, immediately after such Corporate Transaction, to apply to the number and class of securities which would have been issuable to Optionee as a result of the consummation of such Corporate Transaction had the option been exercised immediately
prior to such Corporate Transaction, and appropriate adjustments shall also be made to the Exercise Price, provided the aggregate Exercise Price shall remain the same. 

(d)    This Agreement shall not in any way affect the right of the Company to adjust, reclassify, reorganize or otherwise
change its capital or business structure or to merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets. 

7.    Adjustment in Option Shares. Should any change be made to the Common Stock by reason of any
stock split, reverse stock split, stock dividend, recapitalization, combination of shares, exchange of shares, reorganization, merger, consolidation, split-up, spin-off,
or other change affecting the outstanding Common Stock as a class without the Company’s receipt of consideration, appropriate adjustments shall be made to (a) the total number and/or class of securities subject to this option and
(b) the Exercise Price in order to reflect such change and thereby preclude a dilution or enlargement of benefits hereunder. 

8.    Stockholder Rights. The holder of this option shall not have any stockholder rights with respect to
the Option Shares until such person shall have exercised the option in accordance with the provisions of Paragraph 9, paid the Exercise Price and become a holder of record of the purchased shares. 

9.    Manner of Exercising Option. 

(a)    In order to exercise this option with respect to all or any part of the Option Shares for which this option is at
the time exercisable, Optionee (or any other person or persons exercising the option) must take the following actions: 

(i)    Execute and deliver to the Company (A) a Notice of Exercise, in substantially the form
attached hereto as Exhibit A, that specifies the number of Option Shares for which the option is being exercised and (B) any additional documents which the Committee may, in its discretion, deem advisable. 

  
 3 

 (ii)    Pay the aggregate Exercise Price for the
purchased shares in one or more of the following forms: 
 (A)    cash or check payable to the
Company’s order; 
 (B)    shares of Common Stock held by Optionee for the requisite period
necessary to avoid a charge to the Company’s reported earnings and valued at Fair Market Value on the Exercise Date; 

(C)    through a special sale and remittance procedure pursuant to which Optionee is to provide
irrevocable written instructions (1) to a Company-designated brokerage firm to effect the immediate sale of the purchased shares and remit to the Company, out of the sale proceeds available on the settlement date, an amount sufficient to cover
the aggregate Exercise Price payable for the purchased shares plus all applicable Federal and state income and employment taxes required to be withheld by the Company by reason of such purchase and (2) to the Company to deliver the certificates
for the purchased shares directly to such brokerage firm in order to complete the sale transaction; or 

(D)    payment in the form of a promissory note which the Committee, in its discretion, may approve at the
time of exercise in accordance with Paragraph 10. 
 (iii)    Furnish to the Company appropriate
documentation that the person or persons exercising the option (if other than Optionee) have the right to exercise this option. 

(iv)    Make appropriate arrangements with the Company (or Parent or Subsidiary employing or retaining
Optionee) for the satisfaction of all Federal, state and local income and employment tax withholding requirements applicable to the option exercise. 

(b)    If payment of the exercise price is made by means of the surrender of shares of Common Stock which are subject to
certain restrictions, the number of shares of Common Stock issued upon the exercise of the option equal to the number of shares of restricted stock surrendered shall be subject to the same restrictions as the restricted stock that was surrendered.

 (c)    Except to the extent the sale and remittance procedure specified in Paragraph 9(a)(ii)(C) is utilized in
connection with the option exercise, payment of the option price for the purchased shares must accompany the Notice of Exercise. 

(d)    Assuming Optionee does not sell the purchased shares of Common Stock on the Exercise Date, as soon as practical
after the Exercise Date, the Company shall either 

  
 4 

 
(i) issue to or on behalf of Optionee (or any other person or persons exercising this option) a certificate for the purchased Option Shares, with the appropriate legends affixed thereto, or
(ii) instruct the Company’s transfer agent to make a book-entry reflecting the purchase on its stockholder ledger. 

(e)    In no event may this option be exercised for any fractional shares. 

10.    Financing. The Committee may, in its absolute discretion and without any obligation to do so,
(a) authorize the extension of a full-recourse interest-bearing loan to such Optionee from the Company, (b) permit Optionee to pay the option price for the purchased Common Stock in installments over a period of years or
(c) authorizing a guarantee by the Company of a third-party loan to Optionee. The terms of any loan, installment method of payment or guarantee (including the interest rate and terms of repayment) shall be established by the Committee in its
sole discretion, after taking into account the tax and accounting consequences. The maximum credit available to Optionee shall not exceed the sum of (i) the aggregate option price of the purchased shares (less the par value) plus (ii) any
Federal and state income and employment tax liability incurred by Optionee in connection with the exercise of the option. 

11.    Tax Withholding. The Committee may, in its discretion and upon such terms and conditions as it may
deem appropriate (including the applicable safe-harbor provisions of Securities and Exchange Commission Rule 16b-3 or any successor rule or regulation) provide Optionee (if Optionee is an Employee) with the
election to surrender previously acquired shares of Common Stock or have shares withheld in satisfaction of the tax withholding obligations. To the extent necessary to avoid adverse accounting treatment, the number of shares that may be withheld for
this purpose shall not exceed the minimum number needed to satisfy the applicable income and employment tax withholding rules. If Common Stock is used to satisfy the Company’s tax withholding obligations, the shares of Common Stock shall have
been held by Optionee for the requisite period necessary to avoid a charge to the Company’s reported earnings and shall be valued at their Fair Market Value when the tax withholding is required to be made. 

12.    Compliance with Laws and Regulations. 

(a)    The exercise of this option and the issuance of the Option Shares upon such exercise shall be subject to compliance
by the Company and Optionee with all applicable requirements of law relating thereto and with all applicable regulations of any Stock Exchange (or the Nasdaq Stock Market, if applicable) on which the Common Stock may be listed for trading at the
time of such exercise and issuance. 
 (b)    The inability of the Company to obtain approval from any regulatory body
having authority deemed by the Company to be necessary to the lawful issuance and sale of any Common Stock pursuant to this option shall relieve the Company of any liability with respect to the non-issuance or
sale of the Common Stock as to which such approval shall not have been obtained. The Company, however, shall use reasonable efforts to obtain all such approvals. 

  
 5 

 13.    Successors and Assigns. Except to the extent
otherwise provided in this Agreement, the provisions of this Agreement shall inure to the benefit of, and be binding upon, the Company and its successors and assigns and Optionee, Optionee’s assigns, the legal representatives, heirs and
legatees of Optionee’s estate and any beneficiaries of this option designated by Optionee. 

14.    Notices. Any notice required to be given or delivered to the Company under the terms of this
Agreement shall be in writing and addressed to the Company at its principal corporate offices. Any notice required to be given or delivered to Optionee shall be in writing and addressed to Optionee at the address indicated below Optionee’s
signature line on the Grant Notice. All notices shall be deemed effective upon personal delivery or three days after deposit in the U.S. mail, postage prepaid and properly addressed to the party to be notified. 

15.    Construction. This Agreement and the option evidenced hereby are made and granted pursuant to the
Plan and are in all respects limited by and subject to the terms of the Plan. In the event of a conflict between the terms and conditions of the Plan and the terms and conditions of this Agreement, the terms and conditions of this Agreement shall
prevail. All decisions of the Committee with respect to any question or issue arising under the Plan or this Agreement shall be conclusive and binding on all persons having an interest in this option. 

16.    Governing Law. The interpretation, performance and enforcement of this Agreement shall be governed by
the laws of the State of Delaware without resort to its conflict-of-laws rules. 

17.    No Employment/Service Contract. Nothing in this Agreement or in the Plan shall confer upon Optionee
any right to continue to be a Service Provider of the Company (or any Parent or Subsidiary) for any period of specific duration or otherwise interfere with or restrict in any way the rights of the Company (or such Parent or Subsidiary) or Optionee,
which rights are hereby expressly reserved by each, to terminate Optionee’s Service Provider status at any time and for any reason whatsoever, with or without cause. 

  
 6 

 EXHIBIT A 

NOTICE OF EXERCISE OF STOCK OPTION 

I hereby notify CorVel Corporation (the “Company”) that I,
                    , elect to purchase                  shares of
Common Stock of the Corporation (the “Purchased Shares”) at an option price of $         per share (the “Option Price”) pursuant to the option (the “Option”) granted to me on
                    . 
 My option was
granted as a non-qualified stock option. I will need to report taxable income at the time I exercise this Option and pay the corresponding withholding tax (the “Withholding Tax”) to the Corporation.
The Withholding Tax is computed on the difference between the Option Price and the Fair Market Value of the stock on the date I exercise the Option. 

Concurrently with the delivery of the Exercise Notice to the Chief Financial Officer of the Corporation, I shall hereby pay to the Corporation
the Option Price and Withholding Tax for the Purchased Shares in accordance with the provisions of my agreement with the Corporation evidencing the Option and shall deliver whatever additional documents may be required by such agreement as a
condition for exercise. 
  

					
	    	 		 	
	  
 Date
	 		 	  
 Optionee’s
Signature

			
	If applicable, print name in exact manner it is to appear on the stock certificate:	 		 	  

			
	Optionee’s Mailing Address:	 		 	  

		 		 	     

			
	Address to which certificate is to be sent, if different from address above:	 		 	  

		 		 	     

			
	Brokerage Account Information	 		 	  

	(Broker Name, Contact Info., Account #)	 		 	  

	    	 		 	  

  
 A-1 

 APPENDIX 

The following definitions shall be in effect under this Agreement: 

A.    Agreement shall mean this Stock Option Agreement. 

B.    Board shall mean the Board of Directors of the Company. 

C.    Common Stock shall mean shares of the Company’s common stock, $0.0001 par value. 

D.    Code shall mean the Internal Revenue Code of 1986, as amended. 

E.    Committee shall mean a committee designated by the Board to administer the Plan, which initially shall
be the compensation committee of the Board. The Committee shall be comprised of at least two directors but not less than such number of directors as shall be required to permit awards granted under the Plan to qualify under Rule 16b-3 under the Securities Act and Section 162(m) of the Code, and each member of the Committee shall be a “Non-Employee Director ” within the meaning of Rule 16b-3 under the Securities Act and an “Outside Director” within the meaning of Section 162(m) of the Code. 

F.    Company shall mean CorVel Corporation, a Delaware corporation, or any corporate successor which shall
assume the Plan. 
 G.    Corporate Transaction shall mean any of the following transactions for which the
approval of the Company’s stockholders is obtained: 
 (i)    a merger or acquisition in which the
Company is not the surviving entity, except for a transaction the principal purpose of which is to change the state of the Company’s incorporation, 

(ii)    the sale, transfer or other disposition of all or substantially all of the assets of the Company to
any entity other than a parent or subsidiary of the Company, or 
 (iii)    any reverse merger in which
the Company is the surviving entity but in which fifty percent (50%) or more of the Company’s outstanding voting stock is transferred to holders different from those who held such fifty percent (50%) or greater interest immediately prior to
such merger. 
 H.    Employee shall mean an individual for whom the Company or one or more of its Parent
or Subsidiaries reports his or her earnings on a Form W-2. 

I.    Exercise Date shall mean the date on which the option shall have been exercised in accordance with
Paragraph 9. 

  
 A-2 

 J.    Exercise Price shall mean the exercise price per
Option Share as specified in the Grant Notice. 
 K.    Expiration Date shall mean the date on which the
option expires as specified in the Grant Notice. 
 L.    Fair Market Value per share of Common Stock on
any relevant date shall be determined in accordance with the following provisions: 
 (i)     If the
Common Stock is at the time listed on the Nasdaq National Market or the Nasdaq Capital Market, then the Fair Market Value shall be the closing selling price per share of Common Stock on the date in question, as such price is reported by the National
Association of Securities Dealers on the Nasdaq National Market or the Nasdaq Capital Market and published in The Wall Street Journal. 

(ii)     If the Common Stock is at the time listed on any Stock Exchange, then the Fair Market Value shall
be the closing selling price per share of Common Stock on the date in question on the Stock Exchange determined by the Committee to be the primary market for the Common Stock, as such price is officially quoted in the composite tape of transactions
on such exchange and published in The Wall Street Journal. 
 (iii)     If the Common Stock is not
listed on the Nasdaq National Market, Nasdaq Capital Market or a national securities exchange, the Fair Market Value shall be the average of the closing bid and ask prices of the Common Stock on that day as reported by the Nasdaq bulletin board or
any comparable system on that day. 
 (iv)     If the Common Stock is not traded included in the Nasdaq
bulletin board or any comparable system, the Fair Market Value shall be the average of the closing bid and ask prices on that day as furnished by any member of the National Association of Securities Dealers, Inc. selected from time to time by the
Company for that purpose. 
 (v)     If the date in question is not a trading day, then the Fair Market
Value shall be determined based on prices for the trading day prior to the date in question. 
 M.    Grant
Date shall mean the date of grant of the option as specified in the Grant Notice. 
 N.    Grant
Notice shall mean the Notice of Grant of Stock Option accompanying this Agreement, pursuant to which Optionee has been informed of the basic terms of the option evidenced hereby. 

O.    Misconduct shall mean any of the following: 

(i)    Optionee’s intentional misconduct or continuing gross neglect of duties which materially and
adversely affects the business and operations of the Company or any Parent or Subsidiary employing Optionee; 

  
 A-3 

 (ii)    Optionee’s unauthorized use or disclosure
of (or attempt to use or disclose) confidential information or trade secrets of the Company or any Parent or Subsidiary; or 

(iii)    Optionee’s commission of an act involving embezzlement, theft, fraud, falsification of
records, destruction of property or commission of a crime or other offense involving money or other property of the Company or any Parent or Subsidiary employing Optionee. 

The reasons for termination of Optionee as a Service Provider set forth in this subparagraph are not intended to be an exclusive list of all
acts or omissions which the Company (or any Parent or Subsidiary) may deem to constitute misconduct or other grounds for terminating Optionee (or any other individual). 

P.    Non-Statutory Option shall mean an option not intended to
satisfy the requirements of Code Section 422. 
 Q.    Notice of Exercise shall mean the notice of
exercise in the form attached hereto as Exhibit A. 
 R.    Option Shares shall mean the number of shares
of Common Stock subject to the option as specified in the Grant Notice. 
 S.    Optionee shall mean the
person to whom the option is granted as specified in the Grant Notice. 
 T.    Parent shall mean any
corporation (other than the Company) in an unbroken chain of corporations ending with the Company, provided each such corporation in the unbroken chain (other than the Company) owns, at the time of the determination, stock possessing fifty percent
(50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. 

U.    Permanent Disability shall have the meaning assigned to “permanent and total disability” as
set forth in Code Section 22(e)(3). 
 V.    Plan shall mean the CorVel Corporation Restated Omnibus
Incentive Plan (Formerly The Restated 1988 Executive Stock Option Plan). 
 W.    Securities Act shall
mean the Securities Act of 1933, as amended. 
 X.    Service Provider shall mean an individual who
renders service on a periodic basis to the Company, its Parent and/or any of its Subsidiaries as an Employee, a non-Employee member of the board of directors or a consultant or independent advisor. 

Y.    Stock Exchange shall mean the American Stock Exchange or the New York Stock Exchange, or any other
national stock exchange. 

  
 A-4 

 Z.    Subsidiary shall mean any corporation (other than
the Company) in an unbroken chain of corporations beginning with the Company, provided such corporation (other than the last corporation in the unbroken chain) owns, at the time of determination, stock possessing fifty percent (50%) or more of the
total combined voting power of all classes of stock in one of the other corporations in such chain. For purposes of all Non-Statutory Option grants under the Plan and all Corporate Transaction provisions of
the Plan, the term “Subsidiary” shall also include any partnership, joint venture or other business entity of which the Company owns, directly or indirectly through another entity, more than a fifty percent (50%) interest in voting power,
capital or profits. 

  
 A-5 

 SCHEDULE A 

CORVEL CORPORATION 
 Shares earned by EPS number by
Tranche year 
 CY 2021, CY 2022, CY 2023 
  

			
	Option grant:	  	5,000 Shares option grant
	CY 2021 Tranche	  	 1500 30% of total grant
	CY 2022 Tranche	  	 1500 30% of total grant
	CY 2023 Tranche	  	 2000 40% of total grant

  

																																	
	 	 	CY 2021	 	  	 	 	 	CY 2022	 	  	 	 	 	CY 2023	 
	 	 	Percentage	 	 	Shares	 	  	 	 	 	Percentage	 	 	Shares	 	  	 	 	 	Percentage	 	 	Shares	 
	$[            ]	 	 	0.0	% 	 	 	0	 	  	$	[            	] 	 	 	0.0	% 	 	 	0	 	  	$	[            	] 	 	 	0.0	% 	 	 	0	 
	$[            ]	 	 	2.1	% 	 	 	32	 	  	$	[            	] 	 	 	1.9	% 	 	 	28	 	  	$	[            	] 	 	 	1.8	% 	 	 	35	 
	$[            ]	 	 	4.3	% 	 	 	64	 	  	$	[            	] 	 	 	3.8	% 	 	 	56	 	  	$	[            	] 	 	 	3.5	% 	 	 	71	 
	$[            ]	 	 	6.4	% 	 	 	96	 	  	$	[            	] 	 	 	5.6	% 	 	 	84	 	  	$	[            	] 	 	 	5.3	% 	 	 	106	 
	$[            ]	 	 	8.6	% 	 	 	129	 	  	$	[            	] 	 	 	7.5	% 	 	 	113	 	  	$	[            	] 	 	 	7.1	% 	 	 	141	 
	$[            ]	 	 	10.7	% 	 	 	161	 	  	$	[            	] 	 	 	9.4	% 	 	 	141	 	  	$	[            	] 	 	 	8.8	% 	 	 	176	 
	$[            ]	 	 	12.9	% 	 	 	193	 	  	$	[            	] 	 	 	11.3	% 	 	 	169	 	  	$	[            	] 	 	 	10.6	% 	 	 	212	 
	$[            ]	 	 	15.0	% 	 	 	225	 	  	$	[            	] 	 	 	13.1	% 	 	 	197	 	  	$	[            	] 	 	 	12.4	% 	 	 	247	 
	$[            ]	 	 	17.1	% 	 	 	257	 	  	$	[            	] 	 	 	15.0	% 	 	 	225	 	  	$	[            	] 	 	 	14.1	% 	 	 	282	 
	$[            ]	 	 	19.3	% 	 	 	289	 	  	$	[            	] 	 	 	16.9	% 	 	 	253	 	  	$	[            	] 	 	 	15.9	% 	 	 	318	 
	$[            ]	 	 	21.4	% 	 	 	321	 	  	$	[            	] 	 	 	18.8	% 	 	 	281	 	  	$	[            	] 	 	 	17.6	% 	 	 	353	 
	$[            ]	 	 	23.6	% 	 	 	354	 	  	$	[            	] 	 	 	20.6	% 	 	 	309	 	  	$	[            	] 	 	 	19.4	% 	 	 	388	 
	$[            ]	 	 	25.7	% 	 	 	386	 	  	$	[            	] 	 	 	22.5	% 	 	 	338	 	  	$	[            	] 	 	 	21.2	% 	 	 	424	 
	$[            ]	 	 	27.9	% 	 	 	418	 	  	$	[            	] 	 	 	24.4	% 	 	 	366	 	  	$	[            	] 	 	 	22.9	% 	 	 	459	 
	$[            ]	 	 	30.0	% 	 	 	450	 	  	$	[            	] 	 	 	26.3	% 	 	 	394	 	  	$	[            	] 	 	 	24.7	% 	 	 	494	 
	$[            ]	 	 	33.3	% 	 	 	500	 	  	$	[            	] 	 	 	28.1	% 	 	 	422	 	  	$	[            	] 	 	 	26.5	% 	 	 	529	 
	$[            ]	 	 	36.7	% 	 	 	550	 	  	$	[            	] 	 	 	30.0	% 	 	 	450	 	  	$	[            	] 	 	 	28.2	% 	 	 	565	 
	$[            ]	 	 	40.0	% 	 	 	600	 	  	$	[            	] 	 	 	33.3	% 	 	 	500	 	  	$	[            	] 	 	 	30.0	% 	 	 	600	 
	$[            ]	 	 	43.3	% 	 	 	650	 	  	$	[            	] 	 	 	36.7	% 	 	 	550	 	  	$	[            	] 	 	 	32.9	% 	 	 	659	 
	$[            ]	 	 	46.7	% 	 	 	700	 	  	$	[            	] 	 	 	40.0	% 	 	 	600	 	  	$	[            	] 	 	 	35.9	% 	 	 	718	 
	$[            ]	 	 	50.0	% 	 	 	750	 	  	$	[            	] 	 	 	43.3	% 	 	 	650	 	  	$	[            	] 	 	 	38.8	% 	 	 	776	 
	$[            ]	 	 	53.3	% 	 	 	800	 	  	$	[            	] 	 	 	46.7	% 	 	 	700	 	  	$	[            	] 	 	 	41.8	% 	 	 	835	 
	$[            ]	 	 	56.7	% 	 	 	850	 	  	$	[            	] 	 	 	50.0	% 	 	 	750	 	  	$	[            	] 	 	 	44.7	% 	 	 	894	 
	$[            ]	 	 	60.0	% 	 	 	900	 	  	$	[            	] 	 	 	53.3	% 	 	 	800	 	  	$	[            	] 	 	 	47.6	% 	 	 	953	 
	$[            ]	 	 	63.3	% 	 	 	950	 	  	$	[            	] 	 	 	56.7	% 	 	 	850	 	  	$	[            	] 	 	 	50.6	% 	 	 	1,012	 
	$[            ]	 	 	66.7	% 	 	 	1,000	 	  	$	[            	] 	 	 	60.0	% 	 	 	900	 	  	$	[            	] 	 	 	53.5	% 	 	 	1,071	 
	$[            ]	 	 	70.0	% 	 	 	1,050	 	  	$	[            	] 	 	 	63.3	% 	 	 	950	 	  	$	[            	] 	 	 	56.5	% 	 	 	1,129	 
	$[            ]	 	 	73.3	% 	 	 	1,100	 	  	$	[            	] 	 	 	66.7	% 	 	 	1,000	 	  	$	[            	] 	 	 	59.4	% 	 	 	1,188	 
	$[            ]	 	 	76.7	% 	 	 	1,150	 	  	$	[            	] 	 	 	70.0	% 	 	 	1,050	 	  	$	[            	] 	 	 	62.4	% 	 	 	1,247	 
	$[            ]	 	 	80.0	% 	 	 	1,200	 	  	$	[            	] 	 	 	73.3	% 	 	 	1,100	 	  	$	[            	] 	 	 	65.3	% 	 	 	1,306	 
	$[            ]	 	 	81.3	% 	 	 	1,220	 	  	$	[            	] 	 	 	76.7	% 	 	 	1,150	 	  	$	[            	] 	 	 	68.2	% 	 	 	1,365	 
	$[            ]	 	 	82.7	% 	 	 	1,240	 	  	$	[            	] 	 	 	80.0	% 	 	 	1,200	 	  	$	[            	] 	 	 	71.2	% 	 	 	1,424	 
	$[            ]	 	 	84.0	% 	 	 	1,260	 	  	$	[            	] 	 	 	81.3	% 	 	 	1,219	 	  	$	[            	] 	 	 	74.1	% 	 	 	1,482	 
	$[            ]	 	 	85.3	% 	 	 	1,280	 	  	$	[            	] 	 	 	82.5	% 	 	 	1,238	 	  	$	[            	] 	 	 	77.1	% 	 	 	1,541	 
	$[            ]	 	 	86.7	% 	 	 	1,300	 	  	$	[            	] 	 	 	83.8	% 	 	 	1,256	 	  	$	[            	] 	 	 	80.0	% 	 	 	1,600	 
	$[            ]	 	 	88.0	% 	 	 	1,320	 	  	$	[            	] 	 	 	85.0	% 	 	 	1,275	 	  	$	[            	] 	 	 	81.2	% 	 	 	1,624	 
	$[            ]	 	 	89.3	% 	 	 	1,340	 	  	$	[            	] 	 	 	86.3	% 	 	 	1,294	 	  	$	[            	] 	 	 	82.4	% 	 	 	1,647	 
	$[            ]	 	 	90.7	% 	 	 	1,360	 	  	$	[            	] 	 	 	87.5	% 	 	 	1,313	 	  	$	[            	] 	 	 	83.5	% 	 	 	1,671	 
	$[            ]	 	 	92.0	% 	 	 	1,380	 	  	$	[            	] 	 	 	88.8	% 	 	 	1,331	 	  	$	[            	] 	 	 	84.7	% 	 	 	1,694	 
	$[            ]	 	 	93.3	% 	 	 	1,400	 	  	$	[            	] 	 	 	90.0	% 	 	 	1,350	 	  	$	[            	] 	 	 	85.9	% 	 	 	1,718	 
	$[            ]	 	 	94.7	% 	 	 	1,420	 	  	$	[            	] 	 	 	91.3	% 	 	 	1,369	 	  	$	[            	] 	 	 	87.1	% 	 	 	1,741	 
	$[            ]	 	 	96.0	% 	 	 	1,440	 	  	$	[            	] 	 	 	92.5	% 	 	 	1,388	 	  	$	[            	] 	 	 	88.2	% 	 	 	1,765	 
	$[            ]	 	 	97.3	% 	 	 	1,460	 	  	$	[            	] 	 	 	93.8	% 	 	 	1,406	 	  	$	[            	] 	 	 	89.4	% 	 	 	1,788	 
	$[            ]	 	 	98.7	% 	 	 	1,480	 	  	$	[            	] 	 	 	95.0	% 	 	 	1,425	 	  	$	[            	] 	 	 	90.6	% 	 	 	1,812	 
	$[            ]	 	 	100.0	% 	 	 	1,500	 	  	$	[            	] 	 	 	96.2	% 	 	 	1,444	 	  	$	[            	] 	 	 	91.8	% 	 	 	1,835	 
		 				 				  	$	[            	] 	 	 	97.5	% 	 	 	1,463	 	  	$	[            	] 	 	 	92.9	% 	 	 	1,859	 
		 				 				  	$	[            	] 	 	 	98.7	% 	 	 	1,481	 	  	$	[            	] 	 	 	94.1	% 	 	 	1,882	 
		 				 				  	$	[            	] 	 	 	100.0	% 	 	 	1,500	 	  	$	[            	] 	 	 	95.3	% 	 	 	1,906	 
		 				 				  				 				 				  	$	[            	] 	 	 	96.5	% 	 	 	1,929	 
		 				 				  				 				 				  	$	[            	] 	 	 	97.6	% 	 	 	1,953	 
		 				 				  				 				 				  	$	[            	] 	 	 	98.8	% 	 	 	1,976	 
		 				 				  				 				 				  	$	[            	] 	 	 	100.0	% 	 	 	2,000	 

 Notwithstanding anything to the contrary in this Schedule A or the Stock Option Agreement to which this Schedule A is
attached, the Company shall have the right, in its sole discretion, with or without the consent of the Optionee, to amend this Schedule A to adjust any or all of the targets, dates and/or target EPS amounts as it deems equitable to recognize unusual
or non-recurring events, including, but not limited to the Company’s acquisition of another business entity or assets, a corporate merger or other consolidation, or the sale or discontinuation of
significant business operations or business units of the Company; changes in tax laws or accounting procedures; and any other extraordinary circumstances. 
  

	†	 Certain confidential information contained in this exhibit has been omitted by means of redacting a portion of
the text and replacing it with empty brackets indicated by [                    ] pursuant to Regulation S-K Item 601(b)(10)(iv) of the Securities
Act of 1933, as amended. Certain confidential information has been excluded from the exhibit because it (i) is not material and (ii) would likely cause competitive harm to CorVel if publicly disclosed. An unredacted copy of the exhibit will be
provided on a supplemental basis to the SEC upon request. 

 CorVel Corporation 

Performance Stock Options 
 Options granted in
November 5, 2020 
  

																					
	 	  	CY 2021	 	 	CY 2022	 	 	Pct. Increase	 	  	CY 2023	 	 	Pct. Increase	 
	 EPS Target for each calendar year
	  	$	[            ]	 	 	$	[            ]	 	 	 	[    ]%	 	  	$	[            ]	 	 	 	[    ]%	 
	 Percentage of option grant for tranche (totals 100%)
	  	 	30	% 	 	 	30	% 	 				  	 	40	% 	 			
						
	 to earn 100% of tranche (105% of EPS target)
	  	$	[            ]	 	 	$	[            ]	 	 	 	[    ]%	 	  	$	[            ]	 	 	 	[    ]%	 
	 to earn 80% of tranche (100% of EPS target)
	  	$	[            ]	 	 	$	[            ]	 	 	 	[    ]%	 	  	$	[            ]	 	 	 	[    ]%	 
	 to earn 30% of tranche (95% of EPS target)
	  	$	[            ]	 	 	$	[            ]	 	 	 	[    ]%	 	  	$	[            ]	 	 	 	[    ]%	 
	 EPS at zero earned (90% of EPS target)
	  	$	[            ]	 	 	$	[            ]	 	 	 	[    ]%	 	  	$	[            ]	 	 	 	[    ]%	 

  

	†	 Certain confidential information contained in this exhibit has been omitted by means of redacting a portion of
the text and replacing it with empty brackets indicated by [                    ] pursuant to Regulation S-K Item 601(b)(10)(iv) of the Securities
Act of 1933, as amended. Certain confidential information has been excluded from the exhibit because it (i) is not material and (ii) would likely cause competitive harm to CorVel if publicly disclosed. An unredacted copy of the exhibit will be
provided on a supplemental basis to the SEC upon request.Exhibit
10.2

 

Stock
REDEMPTION Agreement

(Trojan
Investments LLC)

(Series
A Fixed Rate Cumulative Preferred Stock)

 

This
Stock Redemption Agreement (this “Agreement”), dated as of July 13, 2020, is entered into between Trojan Investments
LLC, a California limited liability company (“Seller”), and FAT Brands Inc., a Delaware corporation (the “Company”)
(each, a “Party” and, collectively, the “Parties”).

 

Recitals

 

WHEREAS,
the Company has authorized the issuance of up to 100,000 shares of Series A Fixed Rate Cumulative Preferred Stock, par value $0.0001
per share (the “Series A Preferred Stock”) pursuant to a Certificate of Designation of Rights and Preferences
of the Series A Preferred Stock filed with the Secretary of State of the State of Delaware on or about June 8, 2018 (the “Certificate
of Designation”);

 

WHEREAS,
Seller owns an aggregate of 80,000 shares of Series A Preferred Stock (the “Redeemed Shares”) of the Company;
and

 

WHEREAS,
Seller wishes to sell to the Company, and the Company wishes to purchase and redeem from Seller, all of the Redeemed Shares, as
more fully described and subject to the terms and conditions set forth herein.

 

NOW,
THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

 

ARTICLE
I

Purchase and Sale

 

Section
1.01 Purchase and Sale. Subject to the terms and conditions set
forth herein, in consideration for the Purchase Price (as defined herein), at each Closing (as defined herein) Seller shall sell,
transfer, and deliver to the Company, and the Company shall redeem and purchase from Seller, all of Seller’s right, title,
and interest in and to the Redeemed Shares to be purchased at such Closing, including the right to receive any accumulated accrued
and unpaid dividends on such Redeemed Shares for any Dividend Period (as defined in the Certificate of Designation) ending or
prior to the date of redemption (the “Redemption”), free and clear of any pledge, lien, charge, security interest,
mortgage, claim, or other encumbrance (each, an “Encumbrance”).

 

Section
1.02 Purchase Price; Allocation. The purchase
price for the Redeemed Shares shall be $100.00 per share, plus any accumulated accrued and unpaid dividends on such Redeemed Shares
for any Dividend Period (as defined in the Certificate of Designation) ending or prior to the date of redemption (the “Purchase
Price”). The payment delivered to Seller at each Closing shall be allocated first to accumulated accrued and unpaid
dividends in arrears for any Dividend Period ending on or prior to the applicable Closing Date, and thereafter to the Redeemed
Shares. The Company shall pay the Purchase Price to Seller at each Closing in cash, by wire transfer of immediately available
funds to such bank account as shall be specified in writing by Seller.

 

    	1

    	 

    

 

Section
1.03 Certificate of Designation. Seller shall
not make a new election to redeem any of the Redeemed Shares pursuant to the redemption provisions of the Certificate of Designation,
and hereby withdraws any such election or notice thereof heretofore delivered to the Company. Seller hereby waives the provisions
in Section 3(d) and Section 3(e) of the Certificate of Designation that restrict or prevent the Company from declaring, paying,
setting apart for payment, redeeming, purchasing or otherwise acquiring for any consideration any Parity Shares or Junior Shares
(as each term is defined in the Certificate of Designation).

 

Section
1.04 Withholding Taxes. The Company shall
be entitled to deduct and withhold from the Purchase Price all taxes that The Company is required to deduct and withhold from
such payment under applicable tax laws. Any amount so deducted and withheld shall be paid over to the appropriate governmental
body and shall be treated as delivered to Seller hereunder.

 

ARTICLE
II

CLOSING 

 

Section
2.01 Closings. The closings of the Redemption contemplated by
this Agreement (each, a “Closing”) shall take place in tranches based on the following schedule:

 

	 	a)	20%
    of the gross proceeds of the Company’s pending offering of Series B Cumulative Preferred Stock up to a maximum of $2,000,000,
    to be paid at the initial closing of such offering; 
	 	b)	an
    additional $2,000,000 no later than December 31, 2020; 
	 	c)	an
    additional $2,000,000 no later than June 30, 2021; and 
	 	d)	the
    balance of the Purchase Price by no later than December 31, 2021;

 

(each,
a “Closing Date”); provided, that the Company may at its option accelerate the timing of any Closing
to an earlier date upon notice to Seller. Each Closing shall take place at the offices of the offices of Loeb & Loeb LLP,
10100 Santa Monica Blvd., Los Angeles CA 90067, or remotely by the exchange of documents and signatures (or their electronic counterparts).
In the event that the Company fails to deliver the consideration payable for any tranche of Redeemed Shares on or prior to the
applicable Closing Date, default interest shall begin to accrue on such unpaid amount until it is fully paid at the rate of five
percent (5.0%) per annum.

 

Section
2.02 Closing Deliverables.

 

(a)
Seller’s Deliveries. At each Closing, Seller shall deliver
to the Company for cancelation such share certificate(s) representing the number of Redeemed Shares to be purchased at the Closing
duly endorsed to the Company for transfer and, if requested by the Company, Seller shall duly execute and deliver an assignment
separate from certificate for the Redeemed Shares and shall execute and deliver any additional documents or assignments necessary
to effectuate the transfer and conveyance of such Redeemed Shares. The Company will promptly deliver to the Seller a new share
certificate for the balance of any certificate delivered by Seller that is not being cancelled.

 

    	2

    	 

    

 

 

(b)
Company’s
Deliveries. At each Closing, The Company shall
deliver and pay to Seller the Purchase Price for the Redeemed Shares to be purchased at such Closing.

 

ARTICLE
III

REPRESENTATIONS
AND WARRANTIES OF SELLER

 

Seller
represents and warrants to the Company that the statements contained in this ARTICLE III are true and correct as of the date hereof.

 

Section
3.01 Organization and Authority of Seller; Enforceability. Seller
is a limited liability company duly organized, validly existing, and in good standing under the laws of its the state of formation.
Seller has full limited liability company power and authority to enter into this Agreement and the documents to be delivered by
Seller hereunder, to carry out its obligations hereunder, and to consummate the transactions contemplated hereby. The execution,
delivery, and performance by Seller of this Agreement and the documents to be delivered by Seller hereunder and the consummation
of the transactions contemplated hereby have been duly authorized by all requisite limited liability company action on the part
of Seller. This Agreement and the documents to be delivered by Seller hereunder have been duly executed and delivered by Seller
and (assuming due authorization, execution, and delivery by the Company of this Agreement) constitute legal, valid, and binding
obligations of Seller, enforceable against Seller in accordance with their respective terms, except as may be limited by any bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance, or other similar laws affecting the enforcement of creditors’
rights generally or by general principles of equity.

 

Section
3.02 No Conflicts; Consents. The execution,
delivery, and performance by Seller of this Agreement and the documents to be delivered by Seller hereunder, and the consummation
of the transactions contemplated hereby, do not and will not: (a) violate or conflict with the organizational documents of Seller;
(b) violate or conflict with any judgment, order, decree, statute, law, ordinance, rule, or regulation applicable to Seller; or
(c) conflict with or result in (with or without notice or lapse of time or both) any violation of, or default under, or give rise
to a right of termination, acceleration, or modification of any obligation or loss of any benefit under any contract, oral or
written, or other instrument to which Seller is a party or otherwise bound. No consent, approval, waiver, or authorization is
required to be obtained by Seller from any person or entity (including any governmental authority) in connection with the execution,
delivery, and performance by Seller of this Agreement and the consummation of the transactions
contemplated hereby.

 

    	3

    	 

    

 

Section
3.03 Legal Proceedings. Seller is not a party
to any claim, action, suit, proceeding, or governmental investigation (“Action”) and, to Seller’s knowledge,
there is no threatened Action (a) relating to or affecting the Redeemed Shares or in which a charging order against the Redeemed
Shares has been sought or awarded; or (b) that challenges or seeks to prevent, enjoin, or otherwise delay the transactions contemplated
by this Agreement.

 

Section
3.04 Ownership of Redeemed Shares.

 

(a)
Seller has good and valid title to all of the Redeemed Shares, free and clear of all Encumbrances.

 

(b)
There are no voting trusts, proxies, or other agreements or understandings in effect with respect to the voting, transfer, or
assignment of any of the Redeemed Shares.

 

Section
3.05 Brokers. No broker, finder, or investment banker is entitled
to any brokerage, finder’s, or other fee or commission in connection with the transactions contemplated by this Agreement
based upon arrangements made by or on behalf of Seller.

 

ARTICLE
IV

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

The
Company represents and warrants to Seller that the statements contained in this ARTICLE IV are true and correct as of the date
hereof.

 

Section
4.01 Organization and Authority of the Company; Enforceability.
The Company is a corporation duly organized, validly existing, and in good standing under the laws of the state of Delaware. The
Company has full corporate power and authority to enter into this Agreement and the documents to be delivered by the Company hereunder,
to carry out its obligations hereunder, and to consummate the transactions contemplated hereby. The execution, delivery, and performance
by the Company of this Agreement and the documents to be delivered by the Company hereunder and the consummation of the transactions
contemplated hereby have been duly authorized by all requisite corporate action on the part of the Company. This Agreement and
the documents to be delivered by the Company hereunder have been duly executed and delivered by the Company, and (assuming due
authorization, execution, and delivery by Seller of this Agreement) constitute legal, valid, and binding obligations of the Company,
enforceable against it in accordance with their terms, except as may be limited by any bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance, or other similar laws affecting the enforcement of creditors’ rights generally or by
general principles of equity.

 

Section
4.02 No Conflicts; Consents. The execution,
delivery, and performance by the Company of this Agreement, and the consummation of the transactions contemplated hereby, do not
and will not: (a) violate or conflict with the Certificate of Incorporation, Bylaws or other organizational documents of the Company;
(b) violate or conflict with any judgment, order, decree, statute, law, ordinance, rule, or regulation applicable to the Company;
or (c) conflict with or result in (with or without notice or lapse of time or both) any violation of, or default under, or give
rise to a right of termination, acceleration, or modification of any obligation or loss of any benefit under any contract, oral
or written, or other instrument to which the Company is a party or otherwise bound. No consent, approval, waiver, or authorization
is required to be obtained by the Company from any person or entity (including any governmental authority) in connection with
the execution, delivery, and performance by the Company of this Agreement and the consummation of the transactions contemplated
hereby.

 

    	4

    	 

    

 

Section
4.03 Legal Proceedings. There is no Action
pending or, to the Company’s knowledge, threatened against or by the Company or any of its affiliates that challenges or
seeks to prevent, enjoin, or otherwise delay the transactions contemplated by this Agreement.

 

Section
4.04 Brokers. No broker, finder, or investment
banker is entitled to any brokerage, finder’s, or other fee or commission in connection with the transactions contemplated
by this Agreement based upon arrangements made by or on behalf of the Company.

 

ARTICLE
V

MUTUAL RELEASES

 

Section
5.01 Release by Seller. The Company’s obligation to pay
the Purchase Price for Redeemed Shares shall be satisfied and discharged with respect to each tranche of Redeemed Shares that
is acquired and paid for as provided in Article II. In addition, upon the payment in full of the aggregate Purchase Price to be
paid to Seller hereunder, Seller, on behalf of itself and each of its members, managers, officers, agents, employees, and representatives,
and any of its or their successors, assigns, and affiliates (collectively, the “Seller Releasing Parties”),
shall absolutely, unconditionally, and irrevocably release and discharge the Company, and each of its officers, agents, employees,
stockholders and representatives, and any of its or their successors, assigns, and affiliates (collectively, the “Company
Released Parties”) from any and all claims, counterclaims, actions, causes of action, suits, defenses, debts, obligations,
promises, expenses, liabilities, setoffs, accounts, covenants, contracts, agreements, costs, judgments, and demands whatsoever,
whether at law, in equity, contract, tort, or otherwise (whether fixed or contingent, known or unknown, liquidated or unliquidated)
(each, a “Claim”), which any of the Seller Releasing Parties now has, or may hereafter have, against any of
the Company Released Parties, arising out of or relating to events, actions, omissions, facts, or circumstances occurring, arising,
or existing at or prior to Closing. Each of the Seller Releasing Parties shall refrain from, directly or directly, asserting any
Claim or demand or commencing, instituting, or causing to be commenced, any Action of any kind against any Company Released Party
based upon any matter released pursuant to this Section 5.01.

 

Section
5.02 Release by the Company. Upon the payment in full of the aggregate
Purchase Price to be paid to Seller hereunder, the Company, on behalf of itself and each of its officers, agents, employees, stockholders
and representatives, and any of its or their successors, assigns, and affiliates, in each case, other than any Seller Released
Party (as defined herein) (collectively, the “Company Releasing Parties”), shall absolutely, unconditionally,
and irrevocably releases and discharges Seller, and each of its members, managers, officers, agents, employees, and representatives,
and any of its or their successors, assigns, and affiliates (collectively, the “Seller Released Parties”) from
any and all Claims which any of the Company Releasing Parties now has, or may hereafter have, against any of the Seller Released
Parties, arising out of or relating to events, actions, omissions, facts, or circumstances occurring, arising, or existing at
or prior to Closing. Each of the Company Releasing Parties shall refrain from, directly or directly, asserting any Claim or demand
or commencing, instituting, or causing to be commenced, any Action of any kind against any Seller Released Party based upon any
matter released pursuant to this Section 5.02.

 

    	5

    	 

    

 

Section
5.03 General. In entering into the release of claims provided
under this Article V, each of Seller and the Company hereby acknowledge and agree, on behalf of itself and each of the Seller
Releasing Parties and Company Releasing Party, respectively, that Claims or facts in addition to or different from what each of
them may now know, believe, or suspect to exist might hereafter be discovered; nevertheless, it is such Party’s intention,
by entering into this Agreement to, upon the payment in full of the aggregate Purchase Price to Seller, fully, finally, and forever
release, discharge, and settle all of the Claims described in this Article V, notwithstanding the existence or possible future
discovery of any such additional or different Claim or fact, and the existence or possible future discovery of any such additional
or different Claim or fact will in no manner affect this Agreement or the release set forth herein. In addition, each Party certifies
that it has read the provisions of California Civil Code Section 1542 and has consulted its own legal counsel regarding that section.
Each Party waives any and all rights under California Civil Code Section 1542, which states as follows:

 

A
GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME
OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

 

ARTICLE
VI

Miscellaneous

 

Section
6.01 Expenses. All costs and expenses incurred
in connection with this Agreement and the transactions contemplated hereby shall be paid by the Party incurring such costs and
expenses.

 

Section
6.02 Severability. If any term or provision
of this Agreement is invalid, illegal, or unenforceable in any jurisdiction, such invalidity, illegality, or unenforceability
shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in
any other jurisdiction. Upon such determination that any term or other provision is invalid, illegal, or unenforceable, the Parties
shall negotiate in good faith to modify the Agreement so as to effect the original intent of the Parties as closely as possible
in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to
the greatest extent possible.

 

Section
6.03 Entire Agreement. This Agreement and the documents to be
delivered hereunder constitute the sole and entire agreement of the Parties with respect to the subject matter contained herein,
and supersede all prior and contemporaneous understandings and agreements, both written and oral, with respect to such subject
matter. In the event of any inconsistency between the statements in the body of this Agreement, those in documents to be delivered
hereunder, and/or the Disclosure Schedules (other than an exception expressly set forth as such in the Disclosure Schedules),
the statements in the body of this Agreement will control.

 

    	6

    	 

    

 

Section
6.04 Further Assurances. Following each Closing,
each of the Parties shall, and shall cause their respective affiliates to, execute and deliver such additional documents, instruments,
conveyances, and assurances and take such further actions as may be reasonably required to carry out the provisions hereof and
give effect to the transactions contemplated by this Agreement.

 

Section
6.05 Successors and Assigns. This Agreement shall be binding upon
and shall inure to the benefit of the Parties and their respective successors and permitted assigns. Neither Party may assign
its rights or obligations hereunder without the prior written consent of the other Party.

 

Section
6.06 No Third-Party Beneficiaries. This Agreement
is for the sole benefit of the Parties and their respective successors and permitted assigns and nothing herein, express or implied,
is intended to or shall confer upon any other person or entity any legal or equitable right, benefit, or remedy of any nature
whatsoever under or by reason of this Agreement.

 

Section
6.07 Amendment and Modification. This Agreement
may only be amended, modified, or supplemented by an agreement in writing signed by each Party. No
waiver by any Party of any of the provisions hereof shall be effective unless explicitly set forth in writing and signed by the
Party so waiving.

 

Section
6.08 Governing Law. All matters arising out
of or relating to this Agreement or the transactions contemplated hereby shall be governed by and construed in accordance with
the internal laws of the State of Delaware without giving effect to any choice or conflict of law provision or rule (whether of
the State of Delaware or any other jurisdiction).

 

Section
6.09 Submission to Jurisdiction. Any legal
suit, action, or proceeding arising out of or based upon this Agreement or the transactions contemplated hereby shall be instituted
in the federal courts of the United States of America or the courts of the State of California in each case located in the city
of Los Angeles, and each Party irrevocably submits to the exclusive jurisdiction of such courts in any such suit, action, or proceeding.

 

Section
6.10 Waiver of Jury Trial. Each Party acknowledges
and agrees that any controversy which may arise under this Agreement is likely to involve complicated and difficult issues and,
therefore, such Party irrevocably and unconditionally waives any right it may have to a trial by jury in respect of any legal
action arising out of or relating to this Agreement or the transactions contemplated hereby.

 

Section
6.11 Specific Performance. The Parties agree
that irreparable damage would occur if any provision of this Agreement were not performed in accordance with the terms hereof
and that the Parties shall be entitled to specific performance of the terms hereof, in addition to any other remedy to which they
are entitled at law or in equity.

 

Section
6.12 Counterparts. This Agreement may be executed in counterparts,
each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement. A signed
copy of this Agreement delivered by facsimile, e-mail, or other means of electronic transmission shall be deemed to have the same
legal effect as delivery of an original signed copy of this Agreement.

 

[signature
page follows]

 

    	7

    	 

    

 

 

IN
WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed as of the date first written above by their respective
officers or representatives, thereunto duly authorized.

 

	 	FAT
    Brands, Inc. 
	 	 	 
	 	By:	/s/
    Andrew Wiederhorn
	 	Name:	Andrew
    Wiederhorn
	 	Title:	Chief
    Executive Officer 
	 	 	 
	 	Trojan
    Investments, LLC 
	 	 	 
	 	By:	/s/
    Kenneth J. Anderson 
	 	Name:	Kenneth
    J. Anderson
	 	Title:	 

 

    	8

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