Document:

ebf-ex41_8.htm

Exhibit 4.1

 

2021 Long-Term Incentive Plan

of Ennis, Inc.

 

(Effective July 15, 2021)

 

	
1.
	
Plan.  This 2021 Long-Term Incentive Plan of Ennis, Inc. (this “Plan”) was adopted by Ennis, Inc. (the “Company”), effective as of the Effective Date, to attract, retain and reward certain employees and directors of the Company and its Subsidiaries by enabling them to acquire shares of common stock of the Company and/or through the provision of cash payments.

	
2.
	
Objectives.  This Plan is designed to attract and retain employees of the Company and its Subsidiaries, to attract and retain qualified directors of the Company, to encourage the sense of proprietorship of such employees and directors and to stimulate the active interest of such persons in the development and financial success of the Company and its Subsidiaries.  These objectives are to be accomplished by making Awards under this Plan and thereby providing Participants with a proprietary interest in the growth and performance of the Company and its Subsidiaries.

	
3.
	
Definitions.  Unless otherwise defined in this Plan, the following terms will have the meanings indicated, unless the context clearly indicates otherwise, with all definitions equally applicable to the singular and plural forms of the terms defined.  

“Affiliate” means a “parent corporation” or a “subsidiary corporation” of the Company, as those terms are defined in Section 424(e) and (f) of the Code.

“Award” means the grant, by the Company pursuant to this Plan, of any Option, SAR, Restricted Stock, Restricted Stock Unit, Performance Award or Cash Award, whether granted singly, in combination or in tandem, to a Participant pursuant to such applicable terms, conditions and limitations as the Committee, or the Board in the case of Awards to Directors, may establish in order to fulfill the objectives of this Plan.

“Award Agreement” means any agreement issued for and on behalf of the Company setting forth, in writing, the terms, conditions and limitations applicable to an Award.

“Board” means the Board of Directors of the Company.

“Cash Award” means an Award, granted by the Company pursuant to this Plan, denominated and paid in cash, and includes Performance Awards paid in cash.

A “Change of Control” shall be deemed to have taken place if one or more of the following occurs:

	
 
	
(A)
	
An entity or person, as that term is used in Section 13(d) and 14(d)(2) of the Exchange Act (other than a qualified benefit plan of the Company or an Affiliate), becomes or is discovered to be a beneficial owner (as defined in Rule 13d-3 under the Exchange Act as in effect on the Effective Date) directly or indirectly of securities of the Company representing 30% or more of the combined voting power of the Company’s then outstanding securities (unless such person is already such a beneficial owner on the Effective Date);

	
 
	
(B)
	
Individuals who, as of the Effective Date, constitute the Board cease for any reason to constitute at least a majority of the Board, unless any such change is approved by a unanimous vote of the Board in office immediately prior to such cessation;

	
 
	
(C)
	
The Company or its Affiliates shall (in a single transaction or a series of related transactions) issues shares, sell or purchase assets, engage in a merger or engage in any other transaction immediately after which securities of the Company representing 50% or more of the combined voting power of the then 

	
 
		
outstanding securities of the Company shall be ultimately owned by person(s) who shall not have owned such securities prior to such transaction or who shall be a party to such transaction;

	
 
	
(D)
	
The Company and its Affiliates shall sell or dispose of (in a single transaction or series of related transactions) business operations which generated a majority of the consolidated revenues (determined on the basis of the Company’s four most recently completed fiscal quarters for which reports have been filed under the Exchange Act) of the Company and its Affiliates immediately prior thereto;

	
 
	
(E)
	
The Board shall approve the distribution to the Company’s shareholders of all or substantially all of the Company’s net assets or shall approve the dissolution of the Company; or

	
 
	
(F)
	
Any other transaction or series of related transactions occur which have substantially the effect of the transactions specified in any of the preceding provisions of this subsection.

The foregoing notwithstanding, no Change of Control shall be deemed to have occurred unless such event constitutes an event specified in Section 409A(a)(2)(A)(v) of the Code and the Treasury regulations promulgated thereunder with respect to an Award that is deferred compensation subject to Section 409A of the Code that will be paid solely based upon the occurrence of Change of Control.

“Code” means the Internal Revenue Code of 1986, as amended, or any successor statute, and the Treasury regulations and other authoritative guidance issued thereunder.

“Committee” means the Compensation Committee of the Board or such other committee of the Board as is designated by the Board to administer this Plan.

“Common Stock” means the Common Stock, par value $2.50 per share, of the Company.

“Company” means Ennis, Inc., a Texas corporation, or any successor thereto.

“Director” means an individual serving as a member of the Board who is not an Employee.

“Dividend Equivalents” means an amount in cash equal to dividends and other distributions (or the economic equivalent thereof) that are payable to stockholders of record on a like number of shares of Common Stock.

“Effective Date” means July 15, 2021, the date this Plan was approved by the Company’s stockholders at the Company’s 2021 annual meeting of stockholders.

“Employee” means an employee of the Company or any of its Subsidiaries or an individual who has agreed to become an employee of the Company or any of its Subsidiaries and actually becomes such an employee within the six months immediately following the making of an Award to such individual.

“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time.

“Fair Market Value” means (a) the closing price per share on a given date on the New York Stock Exchange or such other national securities exchange or market on which the Common Stock may be listed or traded on such date, as reported in The Wall Street Journal or such other source as the Committee may select, or if no shares of Common Stock were traded on such date, then on the next preceding date on which shares of Common Stock were traded, or (b) if the Common Stock is not listed or traded on a national securities exchange or market, such price as determined by the Committee in good faith and in accordance with applicable laws and regulations.

“Incentive Option” means an Option that is intended to comply with the requirements set forth in Section 422 of the Code.

“Nonqualified Option” means an Option that is not an Incentive Option.

“Option” means a right, granted by the Company pursuant to this Plan, to purchase a specified number of shares of Common Stock at a specified price.

“Participant” means an Employee or Director to whom an Award has been made under this Plan.

“Performance Award” means a Stock Award or a Cash Award which may be earned in whole or in part upon attainment of performance goals or other vesting criteria as the Committee may determine and which will be paid in cash or shares of Common Stock or a combination of the foregoing.

“Plan” means this 2021 Long-Term Incentive Plan of Ennis, Inc., as amended from time to time.

“Restricted Stock” means any Common Stock that is restricted or subject to forfeiture provisions.

“Restricted Stock Unit” means a unit that is restricted or subject to forfeiture provisions evidencing the right to receive one share of Common Stock or cash equal to the Fair Market Value of one share of Common Stock.

“Restriction Period” means a period of time beginning as of the date upon which an Award of Restricted Stock or Restricted Stock Units is made pursuant to this Plan and ending as of the date upon which such Award is issued (if not previously issued), no longer restricted or no longer subject to forfeiture provisions.

“SAR” means a right to receive a payment, in cash or shares of Common Stock, equal to the excess of the Fair Market Value of a share of Common Stock on the date the right is exercised over the Fair Market Value of a share of Common Stock on the date of grant.

“Section 409A” means Section 409A of the Code and the Treasury regulations promulgated thereunder.

“Stock Award” means an Award, granted by the Company pursuant to this Plan, in the form of shares of Common Stock or units denominated in shares of Common Stock, and includes Restricted Stock, Restricted Stock Units and Performance Awards that may be settled in shares of Common Stock; Stock Awards shall not include Options or SARs.

“Subsidiary” means (i) in the case of a corporation, any corporation of which the Company directly or indirectly owns shares representing 50% or more of the combined voting power of the shares of all classes or series of capital stock of such corporation which have the right to vote generally on matters submitted to a vote of the stockholders of such corporation, and (ii) in the case of a partnership or other business entity not organized as a corporation, any such business entity of which the Company directly or indirectly owns 50% or more of the voting, capital or profits interests (whether in the form of partnership interests, membership interests or otherwise).

“Voting Securities” means, with respect to any corporation or other business enterprise, those securities which under ordinary circumstances entitle the holder thereof to vote for the election of directors or others charged with comparable duties under applicable law.

	
4.
	
Eligibility.  All Employees and Directors are eligible for Awards under this Plan. 

	
5.
	
Common Stock Available for Awards; Plan and Award Limitations.

	
 
	
(a)
	
Common Stock Available Under this Plan.  Subject to the provisions of Section 15 hereof, there shall be an aggregate of 1,033,648 shares of Common Stock available for Awards under this Plan, granted wholly or partly and including rights or Options that may be exercised for, or settled in, shares of Common Stock.  The number of shares of Common Stock that are the subject of Awards under this Plan that are canceled, terminated, forfeited or expire unexercised shall again immediately become available for Awards hereunder as if such shares had never been the subject of an Award.  The number of shares of Common Stock available under this Plan shall not be increased by shares of Common Stock tendered, surrendered or withheld in connection with the exercise or settlement of an Award or the Company’s tax 

	
 
		
withholding obligations.  (The 2004 Long-Term Incentive Plan of Ennis, Inc., as amended and restated on May 14, 2008 and as further amended on May 25, 2011, expired on June 30, 2021 (the “Prior Plan”) and, therefore, no additional grants may be made pursuant to the Prior Plan after such expiration date.)

	
 
	
(b)
	
Plan Limitations.  All shares of Common Stock available for Awards under this Plan may be granted as Incentive Options or as any other form of Stock Award.

	
 
	
(c)
	
Adjustments.  The limitations set forth in this clause (c) are subject to adjustment in accordance with Section 15 hereof.

	
 
	
(d)
	
Other Actions.  The Committee may from time to time adopt and observe such procedures concerning the counting of shares against this Plan maximum as it may deem appropriate.  The Board, the Committee and the officers of the Company shall from time to time take whatever actions are necessary to file any required documents with governmental authorities, stock exchanges and transaction reporting systems to ensure that shares of Common Stock are available for issuance pursuant to Awards.

	
6.
	
Administration.

	
 
	
(a)
	
Authority of the Committee.  Except as otherwise provided in this Plan with respect to actions or determinations by the Board, this Plan shall be administered by the Committee.  Subject to the provisions hereof, the Committee shall have full and exclusive power and authority to administer this Plan and to take all actions that are specifically contemplated hereby or are necessary or appropriate in connection with the administration hereof.  The Committee shall also have full and exclusive power to interpret this Plan and to adopt such rules, regulations and guidelines for carrying out this Plan as it may deem necessary or proper, all of which powers shall be exercised in the best interests of the Company and in keeping with the objectives of this Plan.  Subject to Section 6(c) below and Section 18 hereof, the Committee may, in its discretion, provide for the extension of the exercisability of an Award, accelerate the vesting or exercisability of an Award, eliminate or make less restrictive any restrictions contained in an Award, waive any restriction or other provision of this Plan or an Award or otherwise amend or modify an Award in any manner that is (i) not materially adverse to the Participant to whom such Award was granted, (ii) consented to by such Participant or (iii) authorized by Section 16(c) hereof; provided, however, that no such action shall (1) permit the term of any Option or SAR to be greater than ten years from the applicable grant date or (2) permit the extension of the term of any outstanding Option or SAR such that the resulting term is greater than ten years from the applicable grant date.  The Committee may make an Award to an individual who it expects to become an employee of the Company or any of its Subsidiaries within the six months following the date the Award is made, with such Award being subject to the individual actually becoming an employee within such time period, and subject to such other terms and conditions as may be established by the Committee.  The Committee may correct any defect or supply any omission or reconcile any inconsistency in this Plan or in any Award in the manner and to the extent the Committee deems necessary or desirable to further the purposes of this Plan.  Any decision of the Committee in the interpretation and administration of this Plan shall lie within its sole and absolute discretion and shall be final, conclusive and binding on all parties concerned.  The Board shall have the same powers as the Committee with respect to Awards to Directors.

	
 
	
(b)
	
Indemnity.  No member of the Board or the Committee or officer of the Company to whom the Committee has delegated authority in accordance with the provisions of Section 7 of this Plan shall be liable for anything done or omitted to be done by him or her, by any member of the Board or the Committee or by any officer of the Company in connection with the performance of any duties under this Plan, except for his or her own willful misconduct or as expressly provided by statute.

	
 
	
(c)
	
Prohibition on Repricing of Options and Stock Appreciation Rights.  Except in connection with a corporate transaction involving the Company (including, without limitation, any stock dividend, stock split, extraordinary cash dividend, recapitalization, reorganization, merger, consolidation, split-up, spin-off, combination, or exchange of shares), the terms of outstanding Options and SARs may not be amended to (i) reduce the exercise price of outstanding Options or SARs or (ii) cancel outstanding 

	
 
		
Options or SARs in exchange for cash, other Awards or Options or SARs with an exercise price that is less than the exercise price of the original Options or SARs without stockholder approval.

	
7.
	
Delegation.  The Committee may delegate to one or more subcommittees of the Committee, another committee of the Board, the President and Chief Executive Officer of the Company, or to other senior officers of the Company its authority or duties under this Plan pursuant to such conditions or limitations as the Committee may establish; provided, however, the Committee may not delegate to any officer of the Company its authority to make Awards to any officer of the Company.  Any such delegation hereunder shall only be made to the extent permitted by applicable law.

	
8.
	
Awards.  The Committee shall determine the type or types of Awards to be made under this Plan to Employees and shall designate from time to time the Participants who are to be the recipients of such Awards.  Each Award shall be embodied in an Award Agreement in such form as the Committee determines, which shall contain such terms, conditions and limitations as shall be determined by the Committee in its sole discretion, including any treatment upon a Change of Control, and shall be issued for and on behalf of the Company.  Awards may consist of those listed in this Section 8 and may be granted singly, in combination or in tandem.  Awards may also be made in combination or in tandem with, in replacement of, or as alternatives to, grants or rights under this Plan or any other plan of the Company or any of its Subsidiaries, including this Plan of any acquired entity; provided that, except as contemplated in Section 15 hereof, no Option or SAR may be issued in exchange for the cancellation of an Option or SAR, respectively, with a higher exercise price nor may the exercise price of any Option or SAR be reduced.  All or part of an Award may be subject to conditions established by the Committee, which may include, but are not limited to, continuous service with the Company and its Subsidiaries, achievement of specific business objectives, increases in specified indices, attainment of specified growth rates and other measurements of performance.  Upon the termination of employment by a Participant who is an Employee, any unexercised, deferred, unvested or unpaid Awards shall be treated as set forth in the applicable Award Agreement.

	
 
	
(a)
	
Option.  An Award may be in the form of an Option.  An Option awarded pursuant to this Plan may consist of an Incentive Option or a Nonqualified Option.  The price at which shares of Common Stock may be purchased upon the exercise of an Option shall be not less than the Fair Market Value of the Common Stock on the date of grant.  The term of an Option shall not exceed ten years from the date of grant.  Subject to the foregoing provisions, the terms, conditions and limitations applicable to any Options awarded pursuant to this Plan, including the term of any Options and the date or dates upon which such Options become exercisable, shall be determined by the Committee.

	
 
	
(b)
	
Stock Appreciation Right.  An Award may be in the form of a SAR.  The strike price for a SAR shall not be less than the Fair Market Value of the Common Stock on the date on which the SAR is granted.  The term of a SAR shall not exceed ten years from the date of grant.  Subject to the foregoing limitations, the terms, conditions and limitations applicable to any SARs awarded pursuant to this Plan, including the term of any SARs and the date or dates upon which such SARs become exercisable, shall be determined by the Committee.  As of the date of grant of a SAR, the Committee may specifically designate that the Award will be paid (i) only in cash, (ii) only in Common Stock, or (iii) in such other form or combination of forms as the Committee may elect or permit at the time of exercise.

	
 
	
(c)
	
Stock Award.  An Award may be in the form of a Stock Award.  The terms, conditions and limitations applicable to any Stock Awards granted pursuant to this Plan shall be determined by the Committee, subject to the limitations specified below.

	
 
	
(d)
	
Cash Award.  An Award may be in the form of a Cash Award.  The terms, conditions and limitations applicable to any Cash Awards granted pursuant to this Plan shall be determined by the Committee.

	
 
	
(e)
	
Performance Award.  Without limiting the type or number of Awards that may be made under the other provisions of this Plan, an Award may be in the form of a Performance Award.  The amount of cash or shares of Common Stock payable or issuable or vested pursuant to Performance Awards may be adjusted upward or downward, either on a formula or discretionary basis or any combination, as the Committee 

	
 
		
determines in its discretion.  Subject to the foregoing provisions, the terms, conditions and limitations applicable to any Performance Awards made pursuant to this Plan shall be determined by the Committee.

	
 
	
(f)
	
Minimum Vesting.  Any Award (other than a Cash Award) shall have a minimum vesting period or Restriction Period, as applicable, of one year from the date of grant, provided that (i) the Committee may provide for earlier vesting or termination of the Restriction Period following a Change of Control or upon termination of a Participant’s employment or service by reason of death, disability or retirement and (ii) Awards with respect to up to 5% of the shares of Common Stock authorized for grant pursuant to this Plan may have a vesting period or Restriction Period, as applicable, of less than one year.

	
9.
	
Awards to Directors.  The Board may grant a Director of the Company one or more Awards, other than in the form of Incentive Options, and establish the terms thereof in accordance with Section 8 and consistent with the provisions therein for the granting of Awards to Employees by the Committee.  Any such Award shall be subject to the applicable terms, conditions and limitations set forth in this Plan and the applicable Award Agreement.  Upon the termination of service by a Participant who is a Director, any unexercised, deferred, unvested or unpaid Awards shall be treated as set forth in the applicable Award Agreement.

	
10.
	
Award Payment; Dividends and Dividend Equivalents.

	
 
	
(a)
	
General.  As specified in the applicable Award Agreements, payment of Awards may be made in the form of cash or Common Stock, or a combination thereof, and may include such restrictions as the Committee shall determine, including, in the case of Common Stock, restrictions on transfer and forfeiture provisions.  If payment of an Award is made in the form of Restricted Stock, the right to receive such shares shall be evidenced by book-entry registration or in such other manner as the Committee may determine from time to time.  Any statement of ownership evidencing such Restricted Stock shall contain appropriate legends and restrictions that describe the terms and conditions of the restrictions applicable thereto.

	
 
	
(b)
	
Dividends, Dividend Equivalents and Interest.  Rights to dividends or Dividend Equivalents may be extended to and made part of any Stock Award, subject to such terms, conditions and restrictions as the Committee may establish.  Unless otherwise provided in the Participant’s Award Agreement, any dividends or Dividend Equivalents payable in connection with any Stock Award (as provided in the applicable Award Agreement) shall be paid at the same time and in the same manner as dividends are paid to stockholders of record.  The Committee may also establish rules and procedures for the crediting of interest on deferred cash payments, dividends or Dividend Equivalents.  Dividends and/or Dividend Equivalents shall not be made part of any Options or SARs.

	
11.
	
Stock Option Exercise.  The price at which shares of Common Stock may be purchased under an Option shall be paid in full at the time of exercise in cash or, if set forth in the Award Agreement and elected by the Participant, the Participant may purchase such shares by means of the Company withholding shares of Common Stock otherwise deliverable on exercise of the Award or tendering Common Stock or surrendering another Award, including Restricted Stock, valued at Fair Market Value on the date of exercise, or any combination thereof.  The Committee, in its sole discretion, shall determine acceptable methods for Participants to tender Common Stock or other Awards.  The Committee may provide for procedures to permit the exercise or purchase of such Awards by use of the proceeds to be received from the sale of Common Stock issuable pursuant to an Award (including cashless exercise procedures approved by the Committee involving a broker or dealer approved by the Committee).  Unless otherwise provided in the applicable Award Agreement, in the event shares of Restricted Stock are tendered as consideration for the exercise of an Option, a number of the shares issued upon the exercise of the Option, equal to the number of shares of Restricted Stock used as consideration therefore, shall be subject to the same restrictions as the Restricted Stock so submitted as well as any additional restrictions that may be imposed by the Committee.  The Committee may adopt additional rules and procedures regarding the exercise of Options from time to time, provided that such rules and procedures are not inconsistent with the provisions of this Section 11.

	
12.
	
Taxes.  The Company shall have the right to deduct applicable taxes from any Award payment and withhold an appropriate amount of cash or number of shares of Common Stock or a combination thereof for payment of taxes 

		
required by law or to take such other action as may be necessary in the opinion of the Company to satisfy all obligations for withholding of such taxes.  The Committee may also permit withholding to be satisfied by (i) the transfer to the Company of shares of Common Stock theretofore owned by the holder of the Award or (ii) withholding from the shares of Common Stock otherwise deliverable under the Award, in either case with respect to which withholding is required, up to the maximum tax rate applicable to the Participant, as determined by the Committee and subject to applicable law.  If shares of Common Stock are used to satisfy tax withholding, such shares shall be valued based on the Fair Market Value when the tax withholding is required to be made.

	
13.
	
Amendment, Modification, Suspension or Termination.  The Board may amend, modify, suspend or terminate this Plan (and the Committee may amend or modify an Award Agreement) for the purpose of meeting or addressing any changes in legal requirements or for any other purpose permitted by applicable law, except that (i) no amendment or alteration that would materially adversely affect the rights of any Participant under any Award previously granted to such Participant shall be made without the consent of such Participant and (ii) no amendment or alteration shall be effective prior to its approval by the  stockholders of the Company to the extent stockholder approval is otherwise required by applicable legal requirements or the requirements of the securities exchange on which the Company’s stock is listed, including any amendment that expands the types of Awards available under this Plan, materially increases the number of shares of Common Stock available for Awards under this Plan, materially expands the classes of persons eligible for Awards under this Plan, materially extends the term of this Plan, materially changes the method of determining the Exercise Price of Options or strike price of SARs, deletes or limits any provisions of this Plan that prohibit the repricing of Options or SARs.  Notwithstanding any provision in this Plan to the contrary, this Plan shall not be amended or terminated in such manner that would cause this Plan or any amounts or benefits payable hereunder to fail to comply with or be exempt from Section 409A, and any such amendment or termination that may reasonably be expected to result in such failure shall be of no force or effect.

	
14.
	
Assignability.  Unless otherwise determined by the Committee (or the Board, in the case of Awards to Directors) and provided in the Award Agreement, no Award may be assigned or otherwise transferred except by will or the laws of descent and distribution or pursuant to a domestic relations order in a form acceptable to the plan administrator.  Any attempted assignment of an Award or any other benefit under this Plan in violation of this Section 14 shall be null and void.

	
15.
	
Adjustments.

	
 
	
(a)
	
The existence of outstanding Awards shall not affect in any manner the right or power of the Company or its stockholders to make or authorize any or all adjustments, recapitalizations, reorganizations or other changes in the capital stock of the Company or its business or any merger or consolidation of the Company, or any issue of bonds, debentures, preferred or prior preference stock (whether or not such issue is prior to, on a parity with or junior to the Common Stock) or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding of any kind, whether or not of a character similar to that of the acts or proceedings enumerated above.

	
 
	
(b)
	
In the event of any subdivision or consolidation of outstanding shares of Common Stock, declaration of a dividend payable in shares of Common Stock or other stock split, then (i) the number of shares of Common Stock reserved under this Plan, (ii) the number of shares of Common Stock available under this Plan for Incentive Options and Stock Awards, (iii) the number of shares of Common Stock covered by outstanding Awards in the form of Common Stock or units denominated in Common Stock, (iv) the exercise or other price in respect of such Awards, and (v) the appropriate Fair Market Value and other price determinations for such Awards shall each be proportionately adjusted by the Committee to reflect such transaction.  In the event of any other recapitalization or capital reorganization of the Company, any consolidation or merger of the Company with another corporation or entity, the adoption by the Company of any plan of exchange affecting the Common Stock or any distribution to holders of Common Stock of securities or property (other than normal cash dividends or dividends payable in Common Stock), the Committee shall make appropriate adjustments to (1) the number of shares of Common Stock covered by Awards in the form of Common Stock or units denominated in Common Stock, (2) the exercise or other price in respect of such Awards, (3) the appropriate Fair Market Value 

	
 
		
and other price determinations for such Awards, and (4) the number of shares of Common Stock available under this Plan for Incentive Options and Stock Awards; provided that such adjustments shall only be such as are necessary to maintain the proportionate interest of the holders of the Awards and preserve, without exceeding, the value of such Awards.

	
 
	
(c)
	
In the event of a corporate merger, consolidation, acquisition of property or stock, separation, reorganization or liquidation, the Committee may make such adjustments to Awards or other provisions for the disposition of Awards as it deems equitable, and shall be authorized, in its discretion, to (i) provide for the substitution of a new Award or other arrangement (which, if applicable, may be exercisable for such property or stock as the Committee determines) for an Award or the assumption of the Award (and for awards not granted under this Plan), regardless of whether in a transaction to which Section 424(a) of the Code applies, (ii) provide, prior to the transaction, for the acceleration of the vesting and exercisability of, or lapse of restrictions with respect to, the Award and, if the transaction is a cash merger, provide for the termination of any portion of the Award that remains unexercised at the time of such transaction, (iii) provide for the acceleration of the vesting and exercisability of an Award and the cancellation thereof in exchange for such payment as the Committee, in its sole discretion, determines is a reasonable approximation of the value thereof, (iv) cancel any Awards and direct the Company to deliver to the Participants who are the holders of such Awards cash in an amount that the Committee shall determine in its sole discretion is equal to the Fair Market Value of such Awards as of the date of such event, which, in the case of any Option, shall be the amount equal to the excess of the Fair Market Value of a share as of such date over the per-share exercise price for such Option (for the avoidance of doubt, if such Fair Market Value is less than such exercise price, the Option may be canceled for no consideration), or (v) cancel Awards that are Options and give the Participants who are the holders of such Awards notice and opportunity to exercise prior to such cancellation.

	
 
	
(d)
	
No adjustment authorized by this Section 15 shall be made in such manner that would result in this Plan or any amounts or benefits payable hereunder to fail to comply with or be exempt from Section 409A, and any such adjustment that may reasonably be expected to result in such failure shall be of no force or effect.

	
16.
	
Restrictions.  No Common Stock or other form of payment shall be issued or made with respect to any Award unless the Company shall be satisfied based on the advice of its counsel that such issuance or other payment will be in compliance with all applicable federal and state securities laws.  Certificates evidencing shares of Common Stock delivered under this Plan (to the extent that such shares are so evidenced) may be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under the rules, regulations and other requirements of the Securities and Exchange Commission, any securities exchange or transaction reporting system upon which the Common Stock is then listed or to which it is admitted for quotation and any applicable federal or state securities law.  The Committee may cause a legend or legends to be placed upon such certificates (if any) to make appropriate reference to such restrictions.

	
17.
	
Unfunded Plan.  This Plan is unfunded.  Although bookkeeping (notional) accounts may be established with respect to Participants who are entitled to cash, Common Stock or rights thereto under this Plan, any such accounts shall be used merely as a bookkeeping convenience.  The Company shall not be required to segregate any assets that may at any time be represented by cash, Common Stock or rights thereto, nor shall this Plan be construed as providing for such segregation, nor shall the Company, the Board or the Committee be deemed to be a trustee of any cash, Common Stock or rights thereto to be granted under this Plan.  Any liability or obligation of the Company to any Participant with respect to an Award of cash, Common Stock or rights thereto under this Plan shall be based solely upon any contractual obligations that may be created by this Plan and any Award Agreement, and no such liability or obligation of the Company shall be deemed to be secured by any pledge or other encumbrance on any property of the Company.  All amounts provided under this Plan shall be paid from the general assets of the Company and no separate fund shall be established to secure payment.  To the extent that a Participant or other person acquires a right to receive payment from the Company under this Plan, such right shall be no greater than the right of any unsecured general creditor of the Company.

	
18.
	
Section 409A.

	
 
	
(a)
	
The Company intends that this Plan and Awards comply with, or be exempt from, the requirements of Section 409A of the Code and the accompanying regulations and guidance issued by the Internal Revenue Service and shall be operated and interpreted consistent with that intent.  Notwithstanding anything in this Plan to the contrary, if any Plan provision or Award under this Plan would result in the imposition of an additional tax under Section 409A, that Plan provision or Award will be reformed to avoid imposition of the additional tax, including that any Award subject to Section 409A held by a specified employee that is settled upon termination of employment (for reasons other than death) shall be delayed in payment until the expiration of six months, and no action taken to comply with Section 409A shall be deemed to adversely affect the Participant’s rights under an Award.  No payment, benefit or consideration shall be substituted for an Award if such action would result in the imposition of taxes under Section 409A

	
 
	
(b)
	
Unless the Committee provides otherwise in an Award Agreement, each Award of Restricted Stock Units or Cash Award (or portion thereof if the Award is subject to a vesting schedule) shall be settled no later than the 15th day of the third month after the end of the first calendar year in which the Award (or such portion thereof) is no longer subject to a “substantial risk of forfeiture” within the meaning of Section 409A.  If the Committee determines that an Award of Restricted Stock Units or a Cash Award is intended to be subject to Section 409A, the applicable Award Agreement shall include terms that are designed to satisfy the requirements of Section 409A.

	
 
	
(c)
	
If the Participant is identified by the Company as a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code on the date on which the Participant has a “separation from service” (other than due to death) within the meaning of Treasury Regulation §1.409A-1(h), any Award payable or settled on account of a separation from service that is deferred compensation subject to Section 409A shall be paid or settled on the earliest of (1) the first business day following the expiration of six months from the Participant’s separation from service, (2) the date of the Participant’s death, or (3) such earlier date as complies with the requirements of Section 409A.

	
19.
	
Governing Law.  This Plan and all determinations made and actions taken pursuant hereto, to the extent not otherwise governed by mandatory provisions of the Code or the securities laws of the United States, shall be governed by and construed in accordance with the laws of the State of Texas.

	
20.
	
Right to Continued Service or Employment.  Nothing in this Plan or an Award Agreement shall interfere with or limit in any way the right of the Company or any of its Subsidiaries to terminate any Participant’s employment or other service relationship with the Company or its Subsidiaries at any time, nor confer upon any Participant any right to continue in the capacity in which he is employed or otherwise serves the Company or its Subsidiaries.

	
21.
	
Usage.  Words used in this Plan in the singular shall include the plural and vice versa, and words of one gender shall be construed to include the other gender and the neuter, in each case as the context requires.

	
22.
	
Headings.  The headings in this Plan are inserted for convenience of reference only and shall not affect the meaning or interpretation of this Plan.

	
23.
	
Effectiveness.  This Plan, as approved by the Board on April 16, 2021, is effective as of the Effective Date.  This Plan shall continue in effect for a term of ten years commencing on the Effective Date, unless earlier terminated by action of the Board, and no further Awards may be granted under this Plan after the tenth anniversary of the Effective Date or, if earlier, termination by action of the Board, except as to Awards then outstanding under this Plan.  Such outstanding Awards shall remain in effect until they have been exercised or terminated, or have expired.  Notwithstanding the foregoing, the adoption of this Plan is expressly conditioned upon the approval by the holders of a majority of shares of Common Stock present, or represented, and entitled to vote at the Company’s 2021 annual meeting of stockholders scheduled to be held on July 15, 2021.  If the stockholders of the Company should fail to so approve this Plan, this Plan shall not be of any force or effect.EX-10.1

 EXHIBIT 10.1 

Certain information in this document, marked by [***], has been omitted pursuant to Regulation S-K,
Item 601(b)(10)(iv). Such omitted information is both (i) not material and (ii) is the type that the registrant treats as private or confidential. 

SECURED PROMISSORY NOTE 
  

			
	$10,000,000.00	  	September 29, 2021

 FOR VALUE RECEIVED, CHECK FIVE LLC, a Delaware limited liability company (the
“Maker”), unconditionally promises to pay to the order of NEURONETICS, INC., a Delaware corporation (the “Payee,” which term will also include any subsequent holder of this Note), the principal sum of Ten Million
Dollars ($10,000,000.00), together with interest until paid, as set forth herein. 
 1.    Principal Payments.

 (a)    The Maker will pay the unpaid principal balance of this Note to the Payee in [***] monthly installments in the
amount of [***] each, which installments will be due and payable on the first (1st) day of each month, beginning on [***] (as may be extended pursuant to the proviso hereto, the “Principal
Commencement Date”), and on the first (1st) day of each consecutive month thereafter with the remaining principal balance of this Note to be paid on the Maturity Date; provided, that if
the Payee determines in its reasonable discretion that the Maker [***], then the Principal Commencement Date shall be extended to [***]. 

(b)    Unless sooner paid in full, the entire unpaid principal balance of this Note, together with all outstanding and
unpaid accrued interest, late charges, fees and Collection Costs will be due and payable by the Maker to the Payee on [***] (the “Maturity Date”). 

2.    Interest Payments. 

(a)    Interest will accrue and be payable on the outstanding and unpaid principal balance of this Note at the floating
interest rate of [***]. Interest will accrue based on a 360-day year for the actual number of days the principal is outstanding. As used herein, “Prime Rate” will mean the highest rate per
annum published from time to time by the Wall Street Journal as the Prime Rate, or, in the event the Wall Street Journal ceases to publish the Prime Rate, the base, reference or other rate then designated by the Payee for general commercial loan
reference purposes, it being understood that such rate is a reference rate, not necessarily the lowest, established from time to time, which serves as the basis upon which effective interest rates are calculated for loans making reference thereto.
The effective interest rate applicable to undersigned’s loans will change on the date of each change in the Prime Rate. The Payee will deliver an invoice to Maker each month with the amount of interest payment due for such month, which invoice
shall be conclusive absent manifest error. 
 (b)    The Maker will make payments of the accrued and unpaid interest on
the unpaid principal balance of this Note to the Payee in arrears as follows: 
 (i)      monthly, within two
(2) days of receipt of an invoice from the Payee of the interest payment due for the prior month; and 

 (ii)    on the Maturity Date. 

(c)    If a prepayment of principal is made on this Note, the Maker will pay to the Payee, on the date of the prepayment,
all accrued and unpaid interest on the principal amount prepaid. 
 3.    Default Interest. Upon and after the
occurrence of an Event of Default, interest will accrue and be payable on the unpaid principal balance of this Note at the interest rate per annum that is [***] plus the interest rate otherwise applicable to this Note (the “Default Interest
Rate”). Interest will continue to accrue and be payable on the unpaid principal balance of this Note after the commencement, and during the pendency, of any case, whether voluntary or involuntary, with respect to the Maker under the United
States Bankruptcy Code or under similar law or any other law of any jurisdiction regarding bankruptcy, insolvency, assignment for the benefit of creditors, receivership, conservatorship, moratorium, rearrangement, reorganization, liquidation or
similar debtor relief. 
 4.    Late Charges. If any scheduled payment of principal or
interest due under this Note is not paid within fifteen (15) days after the date that the payment is due, the Maker will pay to the Payee a late charge equal to [***] of the amount past due. The 15-day
period provided in the preceding sentence is not a grace or cure period and the Payee will be entitled to exercise all of the Payee’s rights and remedies upon the occurrence of an Event of Default regardless of whether a late charge is due or
is paid. The Maker will pay the late charge to the Payee within ten (10) days after the Payee’s written request for payment of the late charge, which request may be made by the Payee including the late charge in the amount or amounts due
on a billing statement given to the Maker or in another writing from the Payee to the Maker. 
 5.    Manner of
Payment. All payments will be made in United States of America (“United States”) dollars in immediately available funds without defense, set-off, counterclaim or deduction of any kind on
the due dates of such payments. Payments will be made to the Payee’s address set forth in this Note (or such other payment address as may be designated by the Payee upon written notice to the Maker) by 11:00 a.m. (time at the payment address)
on the due date for such payments. If any payment on this Note will be due and payable on any day that is not a Business Day, such payment will be deemed due on the next following Business Day, and interest will be payable at the interest rate on
this Note (including the Default Interest Rate, as applicable) through such Business Day. Payment received by the Payee at the payment address after 11:00 a.m. (time at the payment address) will be deemed to have been made on the next Business Day
after such receipt in the Payee’s discretion. Any payments by check will be accepted subject to collection in immediately available funds. Payments will be applied to interest, principal, late charges, fees and Collection Costs in such order as
the Payee may determine in the Payee’s discretion. If at any time any payment made by the Maker under this Note is rescinded or must otherwise be restored or returned upon the insolvency, bankruptcy or reorganization of the Maker or for any
other reason, the Maker’s obligation to make such payment under this Note will be reinstated as though such payment had not been made. As used in this Note, “Business Day” means any day that is (a) a Monday, Tuesday,
Wednesday, Thursday or Friday on which banks in the Governing Jurisdiction (herein defined) are open for the transaction of a substantial part of their commercial banking business and (b) not a legal holiday in the Governing Jurisdiction. 

6.    Prepayments. 

(a)    [***] 

  
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 (b)    [***] 

(c)    [***] 

7.    Collection Costs. Within ten (10) days after the Payee’s written request from time to time, the
Maker will pay, or provide the Payee with sufficient funds for the payment of, or reimburse the Payee for the payment of, the Payee’s Collection Costs. As used in this Note, “Collection Costs” means the Payee’s costs and
expenses (including, without limitation, attorneys’ fees and other legal expenses, and the fees and expenses of other professionals, including experts, consultants, accountants, appraisers, surveyors, engineers, receivers, trustees,
warehousemen and auctioneers) incurred by the Payee in (a) collecting or attempting to collect the Obligations (as used in this Note, “Obligations” means the principal, interest and other amounts owed to the Payee under this
Note), (b) enforcing or defending the Payee’s rights, and exercising any remedies, under this Note or under any Related Document (as used in this Note, “Related Document” means the Commercial Agreement, the Limited Recourse
Guaranty and Pledge Agreement by 6215 Riverwalk LLC, the direct parent of the Maker, in favor of the Payee, and any other agreement, instrument or document that guarantees or secures this Note or any of the Obligations, or that otherwise evidences
any of the Obligations) or under any law, or (c) enforcing the Payee’s rights, and exercising the Payee’s remedies, with respect to any Collateral (as used in this Note, “Collateral” means any personal property, real
property, intangible property or fixtures in which the Payee has been granted a security interest or lien to secure this Note or the Obligations or to secure any guarantee thereof, including without limitation all assets of the Maker in which Payee
has been granted a security interest pursuant to Section 9(s)). If the Maker will fail to pay or reimburse the Payee for Collection Costs as herein provided, and the Payee will pay, or will have paid or advanced, such Collection Costs (the
Payee being hereby authorized, but not obligated, to pay or advance such Collection Costs), the Payee will be entitled to add the amount of such Collection Costs to the amount of principal outstanding under this Note and thereafter charge interest
thereon at the interest rate applicable (including the Default Interest Rate as applicable) to the outstanding principal balance of this Note. If the Payee adds the amount of Collection Costs that are not paid or reimbursed by the Maker to the
amount of principal outstanding under this Note as provided in this Section, neither the addition of such unpaid amount to the principal outstanding under this Note, nor the charging of interest thereon, will relieve the Maker of any Event of
Default for failure to pay Collection Costs when due, and the Payee will be entitled to exercise all of the Payee’s rights and remedies upon the occurrence of any such Event of Default. 

8.    Representations and Warranties. The Maker makes the following representations and warranties to the Payee:

 (a)    Organization and Qualification to do Business. The Maker is (i) a limited liability company duly
formed, validly existing, and in good standing, under the laws of the State of Delaware, and (ii) qualified to do business in each jurisdiction where such qualification is necessary. The Maker does not operate any business under any other
name other than the DBA “Success TMS”. 
 (b)    Power and Authority. The Maker has the limited
liability company power and authority to execute, deliver and perform this Note and each Related Document to which the Maker is or will be a party. The Maker’s execution, delivery and performance of this Note, and each Related Document
to which the Maker is or will be a party, have been duly authorized by all requisite limited liability company action on the part of the Maker. 

  
 - 3 - 

 (c)    Execution, Delivery and Enforceability. This Note has been
duly and validly executed and delivered by the Maker and constitutes the Maker’s legal, valid and binding obligation, enforceable in accordance with its terms. 

(d)    No Conflicts. The execution, delivery and performance of this Note and the Related Documents to which it is
a party by the Maker, and the Maker’s incurrence of the indebtedness and other Obligations evidenced by this Note, do not and will not (i) contravene any of the Maker’s Organizational Documents, (ii) contravene, be in conflict
with, result in a breach of, or constitute (with due notice or lapse of time or both, as applicable) a default under, any indenture, agreement or other instrument binding upon the Maker or any of the property of the Maker, (iii) result in the
creation or imposition of any security interest, lien or encumbrance upon any of the Maker’s property for the benefit or security of any obligation or Person, excepting any security interests, liens or encumbrances created or imposed solely for
the benefit and security of the Payee, or (iv) contravene any provision of law or any order of any court or other agency of government. As used in this Note, “Organizational Documents” means any articles or certificates of
incorporation, organization, or formation, and the like, and any bylaws, operating agreements, partnership agreements, trust agreements, shareholder agreements or other governing documents, and including any amendments or restatements of any
thereof. 
 (e)    Subsidiaries. The Maker does not have any Subsidiaries. As used in this Note,
“Subsidiary” means, with respect to any Person, any corporation, limited liability company, partnership, statutory trust or other entity with respect to which such Person holds, directly or indirectly, a majority of the shares,
membership interests, partnership interests, beneficial interests, or other equity interests having ordinary voting power for the election of the board of directors or other equivalent governing body thereof, or as to which such Person controls,
directly or indirectly, the management thereof. “Person” means any natural person, corporation, limited liability company, partnership, joint venture, association, joint-stock company, unincorporated organization, trust,
governmental authority or other entity, including any receiver, debtor-in-possession, trustee, custodian, conservator, or liquidator. 

(f)    Compliance with Applicable Laws. The Maker and its Subsidiaries are in compliance in all material respects
with all Applicable Laws. As used in this Note, “Applicable Laws” means, as to any Person, all laws (whether federal, state, local or foreign) applicable to or binding upon (i) such Person, (ii) any property of such
Person, or (iii) any business or activity of such Person. 
 (g)    Solvency. Giving effect to the
Maker’s incurrence of the principal amount of the indebtedness, and the other Obligations, evidenced by this Note, (i) the value of the Maker’s assets is greater than the total amount of the Maker’s liabilities, including
contingent and unliquidated liabilities (computed, in the case of contingent and unliquidated liabilities, at the amount that, in light of all of the currently existing facts and circumstances can reasonably be expected to become actual or matured
liabilities), (ii) the Maker is able to pay all of its liabilities as such liabilities mature, and (iii) the Maker does not have unreasonably small capital. 

(h)    Margin Stock. The Maker is not engaged in the business of extending credit for the purpose, whether
immediate, incidental or ultimate, of buying or carrying Margin Stock, and no amount of the proceeds of the indebtedness evidenced by this Note has been used, and no amount thereof will be used, to purchase or carry any Margin Stock or to extend
credit to others for the purpose of purchasing or carrying any Margin Stock. As used in this Note, “Margin Stock” means margin stock within the meanings of Regulations T, U and X, of the Board of Governors of the Federal Reserve
System of the United States (and any successor thereto), as the same may be modified and supplemented and in effect from time to time. 

  
 - 4 - 

 (i)    Investment Company Act. The Maker is not an
“investment company” or a company “controlled” by an “investment company,” within the meaning of the Investment Company Act of 1940, as amended. 

9.    Covenants. The Maker further covenants and agrees, for the benefit and security of the Payee, as follows:

 (a)    Existence. The Maker and its Subsidiaries will do all things necessary to preserve, renew and keep in
full force and effect their legal existence in the jurisdictions where they are incorporated, organized or formed. The Maker and its Subsidiaries will do all things necessary to maintain their qualification to do business in each jurisdiction where
such qualification is necessary. The Maker and its Subsidiaries will do all things necessary to preserve, renew and keep in full force and effect all rights, permits, licenses, franchises, patents, trademarks, copyrights, privileges, authorizations,
permissions, consents, easements, agreements or approvals of or issued by any governmental authority or any other Person that may be required by any law or are otherwise necessary or advisable for the ownership or operation of the business, property
or assets of the Maker and its Subsidiaries. Neither the Maker nor any of its Subsidiaries will change or amend its or their Organizational Documents, except for changes or amendments that do not (i) affect the rights or privileges of the Maker
or (ii) affect the interests of the Payee under this Note or any Related Document. 
 (b)    Compliance with
Law. 
 (i) The Maker and its Subsidiaries will comply in all material respects with all Applicable Laws. 

(ii) The Maker will not, directly or indirectly, or knowingly permit any affiliate to (1) enter into any documents,
instruments, agreements or contracts with any person listed on the OFAC Lists, (2) conduct any business or engage in any transaction or dealing with any Blocked Person, including without limitation, the making or receiving of any contribution
of funds, goods or services to or for the benefit of any Blocked Person, (3) deal in, or otherwise engage in any transaction relating to, any property or interests in property blocked pursuant to Executive Order No. 13224 or any similar
executive order or other Anti-Terrorism Law, or (4) engage in or conspire to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in Executive
Order No. 13224 or other Anti-Terrorism Law. As used herein, (i) “OFAC Lists” are, collectively, the Specially Designated Nationals and Blocked Persons List maintained by U.S. Department of Treasury Office of Foreign Assets
Control (“OFAC”) pursuant to Executive Order No. 13224, 66 Fed. Reg. 49079 (Sept. 25, 2001) and/or any other list of terrorists or other restricted Persons maintained pursuant to any of the rules and regulations of OFAC or
pursuant to any other applicable Executive Orders; (ii) “Blocked Person” is any person: (a) listed in the annex to, or is otherwise subject to the provisions of, Executive Order No. 13224, (b) a person owned or
controlled by, or acting for or on behalf of, any person that is listed in the annex to, or is otherwise subject to the provisions of, Executive Order No. 13224, (c) a person with which any Lender is prohibited from dealing or otherwise
engaging in any transaction by any Anti-Terrorism Law, (d) a person that commits, threatens or conspires to commit or supports “terrorism” as defined in Executive Order No. 13224, or (e) a person that is named a
“specially 

  
 - 5 - 

 
designated national” or “blocked person” on the most current list published by OFAC or other similar list; and (iii) “Anti-Terrorism Laws” means any laws, rules,
regulations or orders relating to terrorism or money laundering, including without limitation Executive Order No. 13224 (effective September 24, 2001), the USA PATRIOT Act, the laws comprising or implementing the Bank Secrecy Act, and the
laws administered by OFAC. 
 (c)    Taxes. The Maker and its Subsidiaries will (i) file, or cause to be
filed, when due, all tax returns and reports which are required to be filed by them, (ii) pay and discharge promptly, on or before the due date, all taxes, assessments, charges, and other impositions imposed by any government or governmental
authority on any of them or on any of their properties or assets, and (iii) pay when due all lawful claims which, if unpaid, would by law become a lien upon any of their properties or assets. Promptly upon the Payee’s request from time to
time, the Maker and its Subsidiaries will provide to the Payee receipts and other evidences of compliance with the provisions of this Section. 

(d)    Books and Records. The Maker and its Subsidiaries will maintain their financial books and records in
accordance with GAAP. The Payee will be permitted access to all financial books and records of the Maker and its Subsidiaries at any of the Maker’s locations, or at any location of any Subsidiary of the Maker, during normal business hours and
will be permitted to make and keep copies, at the Maker’s expense, of such records as the Payee may request, at the Maker’s cost and expense. As used in this Note, “GAAP” means generally accepted accounting principles in
the United States as in effect from time to time as set forth in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and the statements and pronouncements of the Financial
Accounting Standards Board which are applicable to the circumstances as of the date of determination. 

(e)    Financial Reports. The Maker will deliver to the Payee or cause to be delivered to the Payee the following:

 (i) as soon as available, but in no event more than ninety (90) days after the close of each of the Maker’s
fiscal years, a consolidated balance sheet of the Maker and its Subsidiaries as of the end of such fiscal year, together with related consolidated statements of income and cash flows for such fiscal year, and setting forth in comparative form
consolidated figures for the preceding fiscal year, all in reasonable detail and prepared after audit by a certified public accountant reasonably acceptable to the Payee whose opinion will be unqualified and will be to the effect that such
consolidated financial statements have been prepared in accordance with GAAP applied on a consistent basis (excepting changes noted therein with which such accountants concur); 

(ii) as soon as available, but in no event more than forty-five (45) days after the end of each of the first three fiscal
quarters, a consolidated balance sheet of the Maker and its Subsidiaries and statements of income and cash flows for the Maker and its Subsidiaries each for such quarterly period and for the applicable portion of the fiscal year ending with such
period, in each case setting forth in comparative form consolidated figures for the corresponding period of the preceding fiscal year (except that the balance sheet will be compared to that at prior year end), all in reasonable form and detail
acceptable to the Payee, and accompanied by a certificate of the chief financial officer of the Maker stating that, to the best of his or her knowledge, information and belief, such financial statements are true and correct in all material respects
and have been prepared in accordance with GAAP applied on a consistent basis, subject to changes resulting from normal year-end audit adjustment; 

  
 - 6 - 

 (iii) as soon as available, but in no event more than thirty (30) days
after the end of each month (but within forty-five (45) days in cases where such month end is also the last month of a fiscal quarter), a consolidated balance sheet of the Maker and its Subsidiaries and statements of income and cash flows for
the Maker and its Subsidiaries for each such monthly period and for the applicable portion of the fiscal year ending with such period, in each case setting forth in comparative form consolidated figures for the corresponding period of the preceding
fiscal year (except that the balance sheet will be compared to that at prior year end) all in reasonable form and detail acceptable to the Payee, and accompanied by a certificate of the chief financial officer of the Maker stating that, to the best
of his or her knowledge, information and belief, such financial statements are true and correct in all material respects and have been prepared in accordance with GAAP applied on a consistent basis, subject to changes resulting from normal year-end audit adjustment; and 
 (iv) within ten (10) days after the Payee’s
written request from time to time, the Maker will furnish to the Payee such other information concerning the financial and operating condition, and results of operations, of the Maker and its Subsidiaries, or compliance with the terms of this Note
or any Related Documents, or concerning any Upstream Owners (as used in this Note, “Upstream Owner” means any Person having any direct or indirect legal or beneficial ownership interest in the Maker), as the Payee may request. 

(f)    Other Information; Litigation Cooperation. 

(i) Promptly upon the Maker’s filing, registration or other transmission thereof, the Maker will give the Payee
(i) copies of any filings and registrations with, and reports to, the Securities and Exchange Commission, or any successor agency, by the Maker or any Subsidiary of the Maker, (ii) copies of any tax returns filed with the Internal Revenue
Service or with the tax authorities of any state by the Maker or any Subsidiary of the Maker, and (iii) copies of all financial statements, proxy statements, notices and reports that the Maker or any Subsidiary of the Maker sends to its
shareholders, members, partners, beneficiaries or other equity holders, or to the holders of any indebtedness of the Maker or any Subsidiary the Maker in their capacities as holders of such indebtedness. 

(ii) Maker will make available to Payee, without expense to Payee, Maker and each of Maker’s officers, employees and
agents and Maker’s books, to the extent that Payee may reasonably deem them necessary to prosecute or defend any third-party suit or proceeding instituted by or against Payee with respect to any Collateral or relating to the Maker or this Note.

 (g)    Notice of Default. The Maker will give the Payee written notice of any breach, default or Event of
Default under this Note or under any Related Document, within three (3) Business Days after the occurrence thereof. 

(h)    Investments. Without the Payee’s prior written consent, neither the Maker nor any Subsidiary of the
Maker will (i) purchase, acquire or otherwise invest in any equity interest in any Person, (ii) purchase, acquire or otherwise invest in any indebtedness of any Person, (iii) make any loan to or for any Person, or (iv) provide
any other financial or credit support to or for any Person. 

  
 - 7 - 

 (i)    Acquisitions. Without the Payee’s prior written
consent, neither the Maker nor any Subsidiary of the Maker will (i) acquire all or substantially all of assets of any Person, (ii) acquire any line of business of any Person, (iii) merge or consolidate with any Person, (iv) enter
into any partnership or joint venture, or (v) form or acquire any Subsidiary. 
 (j)    Indebtedness.
Without the Payee’s prior written consent, neither the Maker nor any Subsidiary of the Maker will incur, assume, or otherwise be or become liable for any Indebtedness, or permit any Indebtedness to be secured by a security interest, lien or
other encumbrance on any Property of the Maker or of any Subsidiary of the Maker, other than (i) any Indebtedness owed to the Payee, (ii) a receivables financing facility in an aggregate outstanding principal amount not to exceed [***],
(iii) guarantees permitted under Section 9(k) of this Note and (iv) other Indebtedness in aggregate outstanding amount not to exceed [***]. As used in this Note, “Indebtedness” means any of the following: (i) loans
and other indebtedness for borrowed money, (ii) any interest bearing obligations, (iii) obligations under capital leases, (iv) obligations to pay the deferred purchase price or acquisition price of property, assets or services
(excepting trade credit in the ordinary course of business outstanding not more than 60 days), (v) reimbursement obligations and other obligations relating to letters of credit, bank guarantees and the like, (vi) obligations arising from cash
management services or credit extended in connection therewith that are not incurred in the ordinary course of business consistent with past practice, (vii) obligations under swap agreements and other hedging agreements, (viii) any
obligations to purchase, redeem, retire, defease or otherwise acquire any shares, membership interests, partnership interests, beneficial interests or other equity interests of any Person, and (ix) any indebtedness or other obligations secured
by a security interest, lien or other encumbrance on the property of the Maker or any Subsidiary of the Maker regardless of whether the Maker or such Subsidiary is liable or such indebtedness or other obligations. 

(k)    Guarantees. Without the Payee’s prior written consent, neither the Maker nor any Subsidiary of the
Maker will guarantee the payment of any Indebtedness or any other obligations of any Person, other than (i) indorsements of bank checks for collection in the ordinary course of business, (ii) guarantees of Indebtedness owed to the Payee
and (iii) guarantees of obligations of Maker or any Subsidiary of the Maker under leases of real property and leases of intellectual property entered into with third parties that are not Affiliates of Maker in the ordinary course of business
consistent with past practice. 
 (l)    Liens. Without the Payee’s prior written consent, neither the Maker
nor any Subsidiary of the Maker will grant, create or suffer to exist any security interest, lien or encumbrance on any of the Maker’s Property or such Subsidiary’s Property, other than (i) zoning restrictions, easements, licenses,
reservations, covenants, conditions or other restrictions on the use of real property or other minor irregularities in title (including leasehold title), so long as the same do not, in the aggregate, materially impair the present use, value or
marketability of any real property, leases or leasehold interests to which they apply, (ii) security deposits required under leases of real property to which the Maker or such Subsidiary is the lessee, provided that such leases are entered
into, and such security deposits are made, in the ordinary course of the Maker’s or such Subsidiary’s business, (iii) deposits securing obligations under workmen’s compensation, unemployment insurance, social security or public
liability laws or similar legislation, (iv) security interests, liens or encumbrances in favor of the Payee (and in favor of no other Person), and (v) liens (including the right of set-off) in favor
of a bank or other depository institution arising as a matter of law encumbering deposits. 

  
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 (m)    Dispositions. Without the Payee’s prior written
consent, neither the Maker nor any Subsidiary of the Maker will sell, assign, transfer, convey, exchange, convert, surrender, contribute, donate, gift, lease, license, abandon or otherwise dispose of any of the Maker’s or any such
Subsidiary’s Property, other than (i) sales or other dispositions of equipment that is obsolete and no longer useful in the business of the Maker or any Subsidiary of the Maker, and (ii) sales of inventory in the ordinary course of
business of the Maker or a Subsidiary of the Maker. 
 (n)    Dividends and Distributions. Without the
Payee’s prior written consent, neither the Maker nor any Subsidiary of the Maker will (i) pay any dividend, or make any other distribution, payment or advance, to any holder of, or otherwise in respect of, any shares, membership interests,
partnership interests, beneficial interests, warrants or other equity interests in the Maker or any Subsidiary of the Maker, (ii) redeem, repurchase or purchase any shares, membership interests, partnership interests, beneficial interests,
warrants, or other equity interests in the Maker or any Subsidiary of the Maker, or (iii) prepay, redeem, repurchase, purchase, or maintain any sinking fund or other fund for the payment of, any indebtedness of the Maker or of any Subsidiary of
the Maker that is or may be convertible into any equity interest in the Maker or in any Subsidiary of the Maker; provided that (i) Subsidiaries of the Maker will be permitted to pay dividends to, and make distributions to, the Maker (or if the
Subsidiary initially paying the dividend or making the distribution is not a direct Subsidiary of the Maker, then to one or more Subsidiaries of the Maker but only to the extent necessary for the purpose of effecting the concurrent payment of a
dividend or distribution in the same amount from a direct Subsidiary of the Maker to the Maker), and (ii) payments, dividends or distributions by the Maker to its direct or indirect equity holders in order to pay consolidated or combined
federal, state or local income or franchise taxes attributable to the income of the Maker or any of its Subsidiaries, to the extent such taxes are not payable directly by the Maker or any of their Subsidiaries, which payments, dividends and
distributions by the Maker (less any such taxes payable directly by the Maker or any of its Subsidiaries) will not be in excess of the applicable income or franchise tax liabilities that would have been payable by Maker and the Subsidiaries on a
stand-alone basis. 
 (o)    Affiliate Transactions. Without the Payee’s prior written consent, neither the
Maker nor any Subsidiary of the Maker will engage in any transaction, or enter into any agreement, with any Affiliate unless such transaction or agreement is engaged in or entered into on terms that are no less favorable to the Maker or such
Subsidiary than those that would have been obtained in a comparable transaction by the Maker or such Subsidiary with a non-Affiliate. As used in this Note, “Affiliate” means, as to any
specified Person, any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified Person; and “control,” including, with correlative meanings, the terms
“controlling,” “controlled by,” and “under common control with,” as used with respect to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management or
policies of such Person, whether through ownership of voting securities, by agreement or otherwise. 

(p)    Accounting Changes; Fiscal Year. Without the Payee’s prior written consent, neither the Payee nor any
of its Subsidiaries will change its (i) accounting treatment or reporting, or tax reporting treatment, except as required by GAAP or any requirement of law and disclosed by the Maker to the Payee or (ii) fiscal year. 

(q)    Change in Nature of Business; Change in Management. 

(i) Without the Payee’s prior written consent, neither the Maker nor any of its Subsidiaries will make any material change
in the nature or conduct of its business carried on at 

  
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the date of this Note or enter into any line of business other than the line or lines of business it is engaged in on the date of this Note. Maker shall not operate its business under any other
name other than “Success TMS” without the prior written consent of the Payee. 
 (ii) The Maker will not terminate
the employment of any Key Person unless written notice thereof is provided to the Payee within ten (10) days of such termination or employment. As used herein, “Key Person” means Maker’s [***]. 

(r)    Fundamental Changes. Without the Payee’s prior written consent, neither the Maker nor any of its
Subsidiaries will (i) change its capital or organizational structure, or convert from one form of entity to another (or, if a limited liability company, create or form any series), or adopt or approve a plan of division, file a certificate of
division, or effect a division, (ii) sell or otherwise dispose of all or substantially all of its assets in one transaction or in a series of related transactions, (iii) cease doing business, or (iv) liquidate, dissolve, wind up,
terminate or cease to exist. 
 (s)    Security Agreement. 

(i) Unless otherwise indicated in this Note, words used in this Section 9(s) that are defined in Article 9 of the Uniform
Commercial Code (“UCC”) as in effect in the Governing Jurisdiction on the date of this Note (“Article 9”), or are used in Article 9, will have the same meanings as in Article 9. To secure the full and complete
payment and performance of this Note and the Obligations when due (the “Note Obligations”), and all other obligations of the Maker or any other Person to the Payee under this Note or under any Related Document (the “Related
Obligations,” and the Related Obligations together with the Note Obligations, the “Secured Obligations”), the Maker hereby grants to the Payee a security interest in all assets of the Maker, now owned and hereafter
acquired, created or arising (all of which constitutes Collateral), including without limitation the following personal property and fixtures: (i) accounts; (ii) certificates of title; (iii) chattel paper, including, without limitation,
tangible chattel paper and electronic chattel paper; (iv) deposit accounts; (v) documents, including, without limitation, tangible documents of title, electronic documents of title and warehouse receipts; (vi) general intangibles,
including, without limitation, payment intangibles; (vii) goods, including, without limitation, inventory, equipment, fixtures, manufactured homes and farm products; (viii) health-care-insurance receivables; (ix) instruments; (x)
intellectual property, including, without limitation, patents, trademarks, copyrights, mask works, licenses, and trade secrets; (xi) investment property, including, without limitation, securities, security entitlements, securities accounts,
commodity accounts, and commodity contracts; (xii) letter-of-credit rights and letters of credit; (xiii) money; (xiv) promissory notes; (xv) software;
(xvi) as-extracted collateral; (xvii) timber to be cut, (xviii) all commercial tort claim(s); (xix) supporting obligations; (xx) products of any of the foregoing; (xxi) proceeds of any of
the foregoing (including, without limitation, cash and non-cash proceeds and insurance proceeds); and (xxii) records. If the Maker now has, or hereafter acquires, any right, title, or interest in any
commercial tort claim that is not described above, the Maker will promptly (and in any event within ten (10) days hereafter or after such acquisition, as applicable) give the Payee written notice thereof and the Maker will execute and deliver
to the Payee a security agreement in form and substance satisfactory to the Payee for the purpose of granting to the Payee a valid and enforceable security interest in such commercial tort claim to further secure the Secured Obligations. The Maker
represents and warrants to the Payee that the security interests granted to the Payee in this Note are now and will at all times be valid and enforceable first priority security interests. 

  
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 (ii) The Payee will be entitled to file and maintain one or more UCC
financing statements identifying the Maker as the debtor and the Payee as the secured party for purposes of perfecting and giving notice of the security interests granted to the Payee under this Note. The Payee will be entitled to describe the
collateral on such UCC financing statements in the manner described in this Section, or as “all assets of the Debtor,” or as “all personal property of the Debtor,” or any combination thereof. Promptly upon, and in any event
within five (5) days after, the Payee’s written request, the Maker will provide the Payee with all information that the Payee requests for purposes of preparing and filing such UCC financing statements. With respect to security interests
granted to the Payee under this Note in any personal property or fixtures as to which another method of perfection (for example, perfection by control or by a filing other than a UCC financing statement filing) may be required, or may be deemed
necessary or advisable by the Payee (and the Payee will have notified the Maker thereof), the Maker will promptly cause such security interests to be perfected by such other method of perfection, and to the extent that it is necessary to obtain an
account control agreement, written consent, written acknowledgment or other documentation from a deposit account bank, a securities intermediary, a letter of credit issuer, a bailee, or other Person for such purposes, the Maker will promptly obtain
such agreement, consent, acknowledgment or other documentation from such deposit account bank, securities intermediary, letter of credit issuer, bailee or other Person, in form and substance satisfactory to the Payee. 

(iii) Promptly upon the Payee’s written request, the Maker will take such actions, and cause the Maker’s other
creditors and counterparties to take such actions, as may be necessary or advisable, as determined by the Payee in the Payee’s discretion, to confirm that the security interests granted to the Payee under this Note are perfected first priority
security interests and are not subject to any security interest, lien or encumbrance of any other Person. All costs and expenses (including the Payee’s attorneys’ fees and other legal expenses, and all costs, expenses, and taxes relating
to filings and the like) of perfecting, confirming and maintaining the first priority of the security interests granted to the Payee under this Note will be paid or reimbursed by the Maker promptly upon, and in any event within ten (10) days
after, the Payee’s written requests for such payment or reimbursement from time to time. The Payee will have all of the rights and remedies of a secured party under the UCC as in effect in the Governing Jurisdiction and other applicable law.
Within ten (10) days after the Payee’s written requests from time to time, the Maker will provide the Payee with such information as the Payee may request regarding any or all of the Collateral. This Note constitutes a security agreement
made by the Maker for the benefit and security of the Payee. 
 (t)    Use of Proceeds. The Maker will use the
proceeds of this Note for working capital purposes and will not use such proceeds: (i) in violation of any Applicable Law, including FCPA or OFAC regulations, (ii) for payment of any dividends or distributions, (iii) for payment of
any executive compensation outside of the ordinary course of business consistent with past practice as previously disclosed to the Payee or (iv) for payments to any Persons that is, or has a controlling interest in, a competitor of the Payee,
its Affiliates or any of their respective business. 
 (u)    Replacement Notes. If this Note is lost or
destroyed, the Maker will, within ten (10) days after the Payee’s written request, execute and deliver to the Payee a replacement promissory note identical to this Note, provided the Payee will execute and deliver to the Maker a
certificate (i) stating that the original of this Note has been lost or destroyed and (ii) confirming that the Payee will indemnify the Maker from and against the Maker’s actual damages suffered as a result of the existence

  
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of this Note and the replacement promissory note requested by the Payee, both evidencing the same obligation. No replacement of this Note will result in a novation of the Maker’s obligations
under this Note. If this Note is guaranteed or secured, such guarantees and security shall continue in full force and effect and will apply to any such replacement promissory note. 

(v)    Further Assurances. Maker will execute any further instruments and take further action as Payee reasonably
requests to perfect or continue the Payee’s lien in the Collateral or to effect the purposes of this Note. 

(w)    Post-Closing Obligations. Promptly, and in any event within ten (10) Business Days after the date
hereof, Maker shall deliver to Payee (i) a duly completed and executed perfection certificate, in a form and substance reasonably satisfactory to Payee and (ii) evidence that the UCC financing statement [***], with Maker as debtor, has
been terminated. 
 10.    Default; Acceleration. The occurrence of any of the following events or circumstances
will be an “Event of Default”: 
 (a)    the failure of the Maker to make any payment of principal or
interest on this Note within five (5) days after the same shall become due; 
 (b)    the failure of the Maker to
pay any other amounts, including any late charge, Collection Costs or other amounts owed to the Payee under this Note, within ten (10) days after the Payee gives the Maker a written request for such payment; 

(c)    the failure of the Maker to perform its obligations under Section 9(g), (h), (i), (j), (k), (l), (m), (n),
(o), (p), (q) or (r) of this Note; 
 (d)    the failure of the Maker to pay or perform its obligations under any
term, provision, covenant or agreement in this Note, which failure is not within the scope of preceding clauses (a), (b) or (c), which failure shall continue unremedied for a period of five (5) days; 

(d)    if any representation or warranty made by the Maker in this Note or in any Related Document is breached in any
material respect or is false or misleading; provided that if such breach is curable, Maker shall have five (5) days to cure any such breach; 

(e)    the occurrence of a breach or default under any Related Document by (i) the Maker or (ii) any other party
thereto (other than the Payee); provided that if such Related Document expressly provides for a grace or cure period for such breach or default, such breach or default under the Related Document will not constitute an Event of Default under this
Note until such breach or default under the Related Document continues uncured beyond the grace or cure period expressly provided in the Related Document; provided, further, that if such Related Document does not provide for a grace or cure period
for such breach or default and such breach or default is curable, Maker shall have five (5) days to cure any such breach or default; 

(f)    if the Maker, or any Subsidiary of the Maker, will breach or default in any payment of any indebtedness (other than
the indebtedness evidenced by this Note) owed by it to any Person, or will breach, or default under, any other terms, representations, warranties, covenants, conditions, or other provisions applicable to such indebtedness, if (i) the amount of
such indebtedness exceeds Ten Thousand Dollars ($10,000) and (ii) the occurrence of any such breach or default would accelerate such indebtedness, or would entitle the holder of such indebtedness to accelerate such indebtedness or exercise any
other remedies with respect thereto; 

  
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 (g)    if a judgment, order or award for payment of money in excess of
Ten Thousand Dollars ($10,000) will be entered against the Maker or any Subsidiary of the Maker, in favor of any Person, and such judgment or order will continue unsatisfied and unstayed (i) for a period of thirty (30) days after the entry
thereof, or (ii) if earlier, on the date on which any lien may attach in respect of such judgment, order or award; 

(h)    the commencement of any action (including any self-help action) or proceeding, judicial or otherwise, by any
Person, other than the Payee, for the purpose of enforcing or protecting such Person’s security interest in or lien upon any Property of the Maker or any Subsidiary of the Maker, or the seizure, repossession, or other taking of possession, of
any property of the Maker or any Subsidiary of the Maker, by any Person other than the Payee by any action or means, including condemnation, forfeiture, foreclosure (or deed in lieu of foreclosure), seizure, levy, distraint, replevin or self-help;

 (i)    the occurrence, directly or indirectly, voluntarily or involuntarily, by operation of law or otherwise, of any
sale, assignment, transfer, conveyance, exchange, conversion, surrender, contribution, donation, gift giving or pledge of, or the creation of a security interest in, all or any portion of the shares, membership interests, partnership interests,
beneficial interests or other equity interests in the Maker or in any Subsidiary of the Maker, or any Upstream Owner; 

(j)    the occurrence, directly or indirectly, voluntarily or involuntarily, by operation of law or otherwise, of any
Change of Control of the Maker, or any Subsidiary of the Maker. As used in this Note, “Change of Control” means with respect to any Person, any change in the power to direct or cause the direction of the management or policies of
such Person, whether through ownership of voting securities, by agreement or otherwise, including any of the following: (i) a change in the legal or beneficial ownership of twenty percent (20%) or more of the voting securities (or other voting
ownership interests) of such Person, or if such Person is a limited partnership, of any general partner of such Person, (ii) during the period of twenty-four (24) consecutive months, a majority of the members of the board of directors or
other equivalent governing body of such Person cease to be to be composed of individuals (A) who were members of that board or other equivalent governing body on the first day of such twenty-four (24) consecutive month period,
(B) whose election or nomination to that board or equivalent governing body was approved by individuals referred to in preceding clause (A) constituting at the time of such election or nomination at least a majority of that board or
equivalent governing body, or (C) whose election or nomination to that board or equivalent governing body was approved by individuals referred to in preceding clauses (A) and (B) constituting at the time of such election or nomination at
least a majority of that board or equivalent governing body, or (iii) the replacement of a managing general partner of a partnership or a managing member of a limited liability company; 

(k)    the occurrence of any adverse change in the business, properties, assets, condition (financial, operating or
otherwise), or results of operations, of the Maker or any Subsidiary of the Maker, that materially impairs, or would reasonably be expected to materially impair, the ability of the Maker to pay the Obligations in accordance with the terms of this
Note or any Related Document; 
 (l)    the occurrence of any event or circumstance that materially impairs, or would be
reasonably expected to materially impair, (i) the Payee’s security interest in, or lien on, any Collateral, or the perfection or priority of such security interest or lien, (ii) the value of the Collateral, or (iii) the ability
of the Payee to enforce its remedies against the Maker under this Note or any Related Document or pursuant to applicable law; 

  
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 (m)    if the Maker will allege any invalidity or unenforceability of
(i) this Note, (ii) any of the Obligations, (iii) any Related Document, or (iv) any security interest, lien or encumbrance created in favor of the Payee under any Related Document; 

(n)    if the Maker will commence a voluntary case or other proceeding seeking liquidation, reorganization, or other
relief with respect to itself or its debts under any bankruptcy, insolvency, or similar law now or hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, custodian, or similar official of it or any substantial part of its
assets, or will consent to any such relief or to the appointment of or taking possession by any such official in an involuntary case or other proceeding commenced against it, or will make a general assignment for the benefit of creditors, or will
fail generally to pay its debts as they become due, or will take any action to authorize any of the foregoing (the “Voluntary Events”); or 

(o)    if an involuntary case or other proceeding will be commenced against the Maker seeking liquidation, reorganization
or other relief with respect to it or its debts under any bankruptcy, insolvency or similar law now or hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of it or any substantial
part of its assets, and such involuntary case or other proceeding will remain undismissed and unstayed for a period of thirty (30) days, or an order for relief will be entered against the Maker under the federal bankruptcy laws as now or
hereafter in effect (the “Involuntary Events,” and together with the Voluntary Events, the “Bankruptcy Events of Default”). 

Upon the occurrence of an Event of Default, the unpaid principal balance of this Note together with all accrued and unpaid interest thereon and all late
charges, fees, Collection Costs and other sums evidenced by this Note will, at the option of the Payee, and in the Payee’s discretion, be accelerated and become immediately due and payable. Notwithstanding the foregoing, upon any Bankruptcy
Event of Default, and without notice to or demand upon the Maker or any action by the Payee, the unpaid principal balance of this Note together with all accrued and unpaid interest thereon, and all late charges, fees, Collection Costs and other sums
evidenced by this Note, will be accelerated automatically and become immediately due and payable. The Payee’s rights and remedies with respect to the acceleration of this Note upon the occurrence of an Event of Default are in addition to the
Payee’s rights and remedies under common and statutory law and under any Related Documents. 
 11.    Board
Observation Right. During the term of this Note, Payee will be entitled to (i) receive notice of any regular or special meeting of the member or board of directors (or equivalent governing body) (the “Board”) of the Maker
(or of the adoption or proposed adoption of any resolution of the Board by written consent) at the time such notice (or such proposed written consent) is provided to the members of the Board (the “Directors”), (ii) receive copies of
any materials delivered to the sole member of the Maker or the Directors concurrently with their delivery to the sole member or the Directors and (iii) attend and participate (but not vote) in all meetings of the Board and any committees
thereof. 
 12.    Notices. Any notice, request or demand required or permitted by or in connection with this
Note will be in writing and will be made by facsimile, or by electronic transmission (“e-mail”), or by hand delivery, or by a nationally recognized overnight delivery service, or by certified
mail, return receipt requested, postage prepaid, addressed to the Payee or to the Maker at the appropriate address set 

  
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forth below or to such other address as may be hereafter specified by written notice by the Payee or the Maker. Notice, request or demand will be considered given as of the earlier of the date of
actual receipt, or the date of the facsimile transmission without error, if receipt of the facsimile has been confirmed by telephone, or the date the e-mail is delivered, or the date of hand delivery, or one
(1) Business Day after delivery to a nationally recognized overnight delivery service, or three (3) Business Days after the date of mailing by certified mail, return receipt requested, postage prepaid, independent of the date of actual
delivery or whether delivery is ever in fact made, as the case may be, provided the giver of the notice, request or demand can establish that the notice, request or demand was given as provided herein. Notwithstanding the aforesaid procedures, any
notice, request or demand upon the Maker, in fact received by the Maker, will be sufficient notice, request or demand. 
 [***] 

13.    Certain Waivers. The Maker waives demand, presentment, protest, notice of dishonor, notice of protest,
notice of nonpayment, notice of acceleration, and diligence. Presentment is not necessary to enforce the obligation of indorsers of this Note. Notice of dishonor is not necessary to enforce the obligation of any party to pay this Note. The Maker
agrees that if the Payee or any other Person entitled to enforce this Note agrees at any time, with or without consideration, to an extension of the due date of the obligation of any party to pay this Note, such extension (whether of the maturity of
this Note or any payment under this Note) will not discharge any obligation of the Maker. The Maker waives valuation and appraisement and all applicable exemption rights, whether under any state constitution, homestead laws or otherwise. The Maker
waives all defenses based on suretyship or impairment of collateral. 
 14.    Preservation of Payee Rights. No
failure on the part of the Payee to exercise any right or remedy hereunder, whether before or after the happening of an Event of Default, will constitute a waiver thereof, and no waiver of any past Event of Default will constitute waiver of any
future default or of any other Event of Default. No failure to accelerate the indebtedness evidenced hereby by reason of any Event of Default hereunder, or acceptance of a past due payment, or indulgence granted from time to time, will be construed
to be a waiver of the right to insist upon prompt payment thereafter or to impose late charges retroactively or prospectively, or will be deemed to be a novation of this Note or as a reinstatement of the indebtedness evidenced hereby or as a waiver
of such right of acceleration or any other right, or be construed so as to preclude the exercise of any right that the Payee may have, whether by the laws of the Governing Jurisdiction, by agreement, or otherwise; and the Maker hereby expressly
waives the benefit of any statute or rule of law or equity that would produce a result contrary to or in conflict with the foregoing. 

15.    Payee’s Setoff Rights. To the extent permitted by law, the Payee will have the right (referred to
herein as the “Setoff Rights”) to set off against any principal, accrued interest or other amounts owing to the Payee under this Note, or owing to the Payee under any Related Document, any or all of the Maker’s deposits,
moneys, securities and other property held by the Payee, or in the possession of the Payee, or in transit to the Payee, whether held in a deposit account or other account, or held for safekeeping, or otherwise. The Payee may exercise the Setoff
Rights upon the occurrence and during the continuance of any Event of Default. The Payee may exercise the Setoff Rights without demand or notice to the Maker. The Setoff Rights are in addition to any liens, setoff rights or other rights and remedies
that the Payee may have by law or pursuant to any other agreement, and are in addition to the Payee’s rights and remedies with respect to any collateral or other property in which the Payee may have a security interest or other lien. 

  
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 16.    Commercial Obligations. The Maker acknowledges and agrees
that all of the Obligations under this Note are commercial obligations. The Maker represents and warrants to the Payee that no amount of the proceeds of the indebtedness evidenced by this Note has been used, and no amount thereof will be used, for
consumer, personal, family or household purposes. 
 17.    Maximum Rate of Interest. Notwithstanding anything
herein to the contrary, the obligations of the Maker under this Note will be subject to the limitation that payments of interest (including any amounts properly characterized as interest under the law applicable to the indebtedness evidenced hereby)
will not be required to the extent that receipt of such payments of interest by the Payee would be contrary to provisions of law applicable to the indebtedness evidenced hereby that limit the maximum lawful rate of interest that may be charged or
collected by the Payee on this Note or on the indebtedness evidenced hereby. Without limiting the generality of the foregoing, all calculations of the rate of interest contracted for, charged or received under this Note which are made for the
purposes of determining whether such rate of interest exceeds the maximum lawful rate of interest will be made, to the extent permitted by applicable law, by amortizing, prorating, allocating and spreading in equal parts during the period of the
full stated term of this Note all interest at any time contracted for, charged or received in connection with the indebtedness evidenced by this Note, and then, if any portion of the interest paid to the Payee exceeds the maximum lawful amount (any
such portion, an “excess amount”), such excess amount will be automatically credited against and in reduction of the principal balance of this Note, and if any of said excess amount remains after the principal balance of this Note has been
paid in full, then the Payee will return such remaining excess amount to the Maker, it being the intent of the parties hereto that under no circumstances will the Maker be required to pay any interest in excess of the highest rate of interest
permissible under applicable law. This Section applies only if there are such provisions of law applicable to this Note or the indebtedness evidenced hereby that limit the maximum lawful rate of interest that may be charged or collected by the Payee
on this Note or the indebtedness evidenced hereby. 
 18.    Amendments and Waivers. This Note may not be
modified, amended, restated, changed or terminated orally, but only by an agreement in writing executed by the Maker and the Payee. No waiver of any term, covenant, representation, warranty or other provision of this Note, and no waiver of any Event
of Default or any breach or default that with the giving of notice or the passage of time could become an Event of Default, will be effective unless such waiver is given in writing and executed by the Payee. If any such waiver is given by the Payee,
such waiver will be effective only with respect to the specific circumstances set forth in such writing. No security interest or lien will be terminated or released, and no Collateral will be released from any security interest or lien, except by an
agreement in writing executed by the Payee. The Payee will not be obligated to agree to any modification, amendment, restatement, change, consent, termination, waiver, or release, and any such agreement may be conditioned, delayed, or withheld, in
the Payee’s absolute discretion. 
 19.    Severability. In case any provision or any part of any provision
contained in this Note will for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability will not affect any other provision or remaining part of the affected provision of this
Note, but this Note will be construed as if such invalid, illegal, or unenforceable provision or part thereof had never been contained herein but only to the extent such provision or part thereof is invalid, illegal, or unenforceable. 

20.    Successors and Assigns. This Note will be binding upon the Maker and the Maker’s successors and
assigns, and will inure to the benefit of the Payee and the Payee’s successors and 

  
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assigns. This Note may be assigned in whole or in part by the Payee. The Maker may not assign any of its rights or obligations under this Note without the prior written consent of the Payee, and
any purported assignment by the Maker without the Payee’s prior written consent will be null and void. 

21.    Captions. Section headings and captions in this Note are for convenience only and shall not affect the
construction or interpretation of this Note. Unless otherwise expressly stated in this Note, references in this Note to Sections will be read as Sections of this Note. 

22.    Time of the Essence. Time is of the essence of this Note. 

23.    Further Assurances. The Maker will execute and deliver to the Payee such further assurances of this Note and
take such other further actions as the Payee may from time to time request to further the intent and purposes of this Note and to maintain the rights and remedies intended to be created in favor the Payee under this Note. 

24.    Holder in Due Course Status. If the Payee transfers or assigns this Note to another holder who takes this
Note for value and without actual knowledge of a defense, set-off or claim of the Maker against any prior holder of this Note, such transferee or assignee will not be subject to any defenses, set-offs, or claims that the Maker may have against any holder of this Note prior to such transfer or assignment, and such transferee or assignee will have all of the rights of a holder in due course against the
Maker even if, absent this provision, such transferee or assignee would not qualify as, or would not be, a holder in due course under applicable law. This Section is intended to apply, and is intended to give such transferee or assignee the rights
of a holder in due course against the Maker, regardless of whether this Note is or is not a negotiable instrument. 

25.    Counterparts. This Note may be executed in counterparts (and by different parties hereto in different
counterparts), each of which will constitute an original, but all of which when taken together will constitute a single promissory note. Delivery of an executed counterpart of a signature page of this Note by facsimile or in electronic (for example,
“.pdf” or “tif”) format by email or other electronic transmission will be effective as delivery of a manually executed counterpart of this Note. Signature pages may be detached from separate counterparts and attached to a single
counterpart so that all signature pages are attached to the same document. In making proof of this Note, it will not be necessary to produce more than one counterpart of this executed Note. 

26.    Representation by Counsel. The Maker acknowledges that the Maker is and has been represented by counsel of
the Maker’s choice in connection with the negotiation, preparation, review, authorization, execution and delivery of this Note and any other instruments, agreements or matters relating to this Note. 

27.    Choice of Law, Venue, and Jury Trial Waiver. 

(a)    Governing Law. This Note and the rights and obligations of the Maker and the Payee hereunder will, in all
respects, be governed by, and construed in accordance with, the laws (excluding the principles of conflict of laws) of the State of New York (the “Governing Jurisdiction”) (including,
Section 5-1401 and Section 5-1402 of the General Obligations Law of the State of New York), including all matters of construction, validity and performance.

  
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 (b)    JURISDICTION; VENUE; SERVICE. 

(i)    THE MAKER HEREBY IRREVOCABLY CONSENTS TO THE NON-EXCLUSIVE PERSONAL
JURISDICTION OF THE STATE COURTS OF THE GOVERNING JURISDICTION AND, IF A BASIS FOR FEDERAL JURISDICTION EXISTS, THE NON-EXCLUSIVE PERSONAL JURISDICTION OF ANY UNITED STATES DISTRICT COURT FOR THE GOVERNING
JURISDICTION. 
 (ii)    THE MAKER AGREES THAT VENUE WILL BE PROPER IN ANY COURT OF THE GOVERNING JURISDICTION SELECTED
BY THE PAYEE OR, IF A BASIS FOR FEDERAL JURISDICTION EXISTS, IN ANY UNITED STATES DISTRICT COURT IN THE GOVERNING JURISDICTION. THE MAKER WAIVES ANY RIGHT TO OBJECT TO THE MAINTENANCE OF ANY SUIT, CLAIM, ACTION, LITIGATION OR PROCEEDING OF ANY KIND
OR DESCRIPTION, WHETHER IN LAW OR EQUITY, WHETHER IN CONTRACT OR IN TORT OR OTHERWISE, IN ANY OF THE STATE OR FEDERAL COURTS OF THE GOVERNING JURISDICTION ON THE BASIS OF IMPROPER VENUE OR INCONVENIENCE OF FORUM. 

(iii)    ANY SUIT, CLAIM, ACTION, LITIGATION OR PROCEEDING OF ANY KIND OR DESCRIPTION, WHETHER IN LAW OR EQUITY, WHETHER
IN CONTRACT OR TORT OR OTHERWISE, BROUGHT BY THE MAKER AGAINST THE PAYEE THAT IS BASED, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, ON THIS NOTE OR ANY MATTERS RELATING TO THIS NOTE OR ANY RELATED DOCUMENT OR ANY OBLIGATIONS, WILL BE BROUGHT IN A
COURT ONLY IN THE GOVERNING JURISDICTION. THE MAKER WILL NOT FILE ANY COUNTERCLAIM AGAINST THE PAYEE IN ANY SUIT, CLAIM, ACTION, LITIGATION OR PROCEEDING BROUGHT BY THE PAYEE AGAINST THE MAKER IN A JURISDICTION OUTSIDE OF THE GOVERNING JURISDICTION
UNLESS UNDER THE RULES OF THE COURT IN WHICH THE PAYEE BROUGHT SUCH SUIT, CLAIM, ACTION, LITIGATION OR PROCEEDING THE COUNTERCLAIM IS MANDATORY, AND NOT PERMISSIVE, AND WOULD BE CONSIDERED WAIVED UNLESS FILED AS A COUNTERCLAIM IN THE SUIT, CLAIM,
ACTION, LITIGATION OR PROCEEDING INSTITUTED BY THE PAYEE AGAINST THE MAKER. THE MAKER AGREES THAT ANY FORUM OUTSIDE THE GOVERNING JURISDICTION IS AN INCONVENIENT FORUM AND THAT ANY SUIT, CLAIM, ACTION, LITIGATION OR PROCEEDING BROUGHT BY THE MAKER
AGAINST THE PAYEE IN ANY COURT OUTSIDE THE GOVERNING JURISDICTION SHOULD BE DISMISSED OR TRANSFERRED TO A COURT LOCATED IN THE GOVERNING JURISDICTION. [FURTHERMORE, IF THE GOVERNING JURISDICTION IS THE STATE OF NEW YORK, THE MAKER IRREVOCABLY
AND UNCONDITIONALLY AGREES THAT IT WILL NOT BRING OR COMMENCE ANY SUIT, CLAIM, ACTION, LITIGATION OR PROCEEDING OF ANY KIND OR DESCRIPTION, WHETHER IN LAW OR EQUITY, WHETHER IN CONTRACT OR IN TORT OR OTHERWISE, AGAINST THE PAYEE IN ANY WAY RELATING
TO THIS NOTE OR ANY RELATED DOCUMENT, OR ANY OBLIGATIONS HEREUNDER OR THEREUNDER, OR ANY TRANSACTIONS RELATING HERETO OR THERETO, IN ANY FORUM OTHER THAN THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY, AND THE UNITED STATES DISTRICT
COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY SUBMITS TO THE JURISDICTION OF SUCH COURTS AND AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH SUIT,
CLAIM, ACTION, LITIGATION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT.] EACH OF THE MAKER AND THE PAYEE AGREES THAT A FINAL JUDGMENT IN

  
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ANY SUCH SUIT, CLAIM, ACTION, LITIGATION OR PROCEEDING WILL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. 

(iv)    EACH OF THE MAKER AND THE PAYEE IRREVOCABLY CONSENT TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED
COURTS IN ANY SUCH SUIT, CLAIM, ACTION, LITIGATION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL POSTAGE PREPAID, TO IT AT THE ADDRESS SET FORTH FOR NOTICES IN THIS NOTE (OR AT SUCH OTHER ADDRESS FOR NOTICE AS THE
MAKER OR THE PAYEE WILL HAVE SPECIFIED BY WRITTEN NOTICE TO THE OTHER), SUCH SERVICE TO BECOME EFFECTIVE THIRTY (30) DAYS AFTER THE DATE OF MAILING. 

(v)    NOTHING HEREIN WILL AFFECT THE RIGHT OF THE PAYEE TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO
COMMENCE LEGAL PROCEEDINGS OR TO OTHERWISE PROCEED AGAINST THE MAKER OR ANY OTHER PERSON IN THE GOVERNING JURISDICTION OR IN ANY OTHER JURISDICTION. 

(c)    WAIVER OF JURY TRIAL. THE MAKER AND THE PAYEE MUTUALLY WAIVE ALL RIGHT TO TRIAL BY JURY OF ALL CLAIMS OF ANY
KIND ARISING OUT OF OR BASED UPON THIS NOTE, ANY RELATED DOCUMENT, ANY OBLIGATIONS OR ANY CONTEMPLATED TRANSACTION. THE MAKER AND THE PAYEE ACKNOWLEDGE THAT THIS IS A WAIVER OF A LEGAL RIGHT AND THAT THE MAKER AND THE PAYEE EACH MAKE THIS WAIVER
VOLUNTARILY AND KNOWINGLY AFTER CONSULTATION WITH COUNSEL OF ITS CHOICE. THE MAKER AND THE PAYEE AGREE THAT ALL SUCH CLAIMS WILL BE TRIED BEFORE A JUDGE OF A COURT HAVING JURISDICTION, WITHOUT A JURY. 

[The signature page follows. The remainder of this page is blank.] 

  
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 IN WITNESS WHEREOF, and intending to be legally bound hereby, the Maker executes this
Promissory Note as of the date first written above. 
  

					
	MAKER:
	
	CHECK FIVE LLC, a Delaware limited liability company
		
	By:	 	
                    

		 	Name:	 	[***]
		 	Title:	 	[***]

 [Maker’s Signature Page to Promissory Note] 

 The Payee hereby confirms its acceptance of the foregoing Promissory Note and its agreement with the terms,
provisions, covenants and agreements set forth therein, as of the date first above written. 
  

			
	PAYEE:
	
	NEURONETICS, INC., a Delaware corporation
		
	By:	 	 /s/ Keith J. Sullivan

	Name:	 	Keith J. Sullivan
	Title:	 	President & CEO

 [Payee’s Signature Page to Promissory Note] 

  
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Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00334-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00334-of-00352.parquet"}]]