Document:

Exhibit 10.1

 

ASSET AND FRANCHISE AGREEMENT PURCHASE AGREEMENT

 

THIS ASSET AND FRANCHISE AGREEMENT PURCHASE
AGREEMENT (“Agreement”) is made and entered into on _______ __, 2019 (“Effective Date”),
by and between The Joint Corp., a Delaware corporation (“TJC”), TJ of Savannah – Twelve Oaks, LLC, a Georgia
limited liability company (“TJS”), TJ of Pooler, LLC, a Georgia limited liability company (“TJP”),
and TJ of Bluffton, LLC, a South Carolina limited liability company (“TJB”) (TJS, TJP and TJB shall collectively
be referred to as the “Seller”), and Robyn Meglin, an individual and Allen Meglin, an individual (collectively,
the “Shareholder”). TJC, Seller, and Shareholder shall at times be collectively referred to as the “Parties.”

 

Background:

 

A.            
The Seller is the franchisee under three separate franchise agreements with TJC for the following three clinics: (i) The
Joint franchise number 04013 known as Savannah Twelve Oaks and located at 5500 Abercorn Street, Suite #22, Savannah, GA 31405;
(ii) The Joint franchise number 04018 known as Pooler and located at 485 Pooler Parkway, Pooler, GA 31322; and (iii) The Joint
franchise number 08014 known as Bluffton and located at 111A Towne Drive, Bluffton, SC 29910 (collectively, the “Subject
Franchises”);

 

B.            
Seller and the Shareholder will sell to TJC, and TJC will purchase from Seller, all of Seller’s interest in the Subject
Franchises and the “Franchise Agreements” (as defined below), on the terms and conditions set forth in this
Agreement; and

 

C.            
The Shareholder owns all of the outstanding interests in each of the three entities comprising the Seller.

 

D.            
The Parties, in conjunction with this Asset and Franchise Agreement Purchase Agreement, mutually desire to terminate the
“Franchise Agreements” (as defined below) as set forth below. The Seller, as Franchisee, will surrender the
Territory and mutually terminate the Franchise Agreements, other than Franchisee’s “Post-Termination Obligations”
(as defined below).

 

NOW, THEREFORE, in consideration of the mutual
agreements, covenants and undertakings herein contained and other valuable consideration, the adequacy of which is acknowledged
by all Parties, the Parties hereby agree as follows:

 

		1.	Purchase and Sale

 

(a)           
Except as provided herein, at the Closing (as hereinafter defined) of the transactions contemplated hereby, Seller and Shareholder
shall sell, assign, transfer and deliver, or cause its affiliates to assign, transfer and deliver, to TJC, and TJC shall purchase
and accept from Seller, Shareholder and/or their affiliates, the “Assets” (as defined below); free and clear
of any and all liens, claims (including, without limitation, title claims and claims of taxing authorities), encumbrances, pledges,
security interests or charges of any kind whatsoever, and shall assume the obligations only as specifically stated herein, for
the purchase price set forth in Section 4 hereof.

 

		(b)	For purposes of this Agreement, “Assets” shall mean:

 

    	- 1 -

     

    

 

(i)            
the three franchise agreements between the three entities comprising Seller and TJC for the Subject Franchises, as more
particularly described in Schedule 1(b)(i) attached hereto as and made a part hereof, without any transfer fees (as
amended, the “Franchise Agreement”);

 

(ii)       all
of Seller’s interest in equipment, machinery, tools, maintenance supplies, office equipment, leasehold improvements, furniture,
fixtures, inventories and supplies and other similar items of tangible personal property (together the “Personal Property”)
used or held for use by Seller in the Subject Franchises, which is more particularly listed and described in Schedule 1(b)(ii)
attached hereto and made a part hereof;

 

(iii)       all
of Seller’s interest in any membership agreements, prepaid services packages and other agreements or arrangements Seller
has made with patients of the Subject Franchises, together with any deposits or prepayments (for packages or otherwise) made by
any patients covered by such agreements or arrangements to the extent related to services to be performed after Closing (hereinafter,
the “Prepayment Balance”);

 

(iv)       the
trademarks, trade names, copyrights and all other intellectual property rights of Seller associated with the Subject Franchises
and all of Seller’s goodwill attributable to the Subject Franchises;

 

(v)       all
telephone numbers and domain names associated with the Subject Franchises;

 

(vi)       copies
of all medical records with respect to patients of the Subject Franchises and all documents and records in the possession of Seller
pertaining to patients and employees of the Subject Franchises;

 

(vii)       to
the extent transferable, all licenses, government approvals and permits and all other approvals and permits relating to the Subject
Franchises;

 

(viii)       all
of Seller’s interests as tenant (including leasehold improvements) under its leases for the premises occupied by the Subject
Franchises, copies of which are attached hereto as Exhibit A and made a part hereof (hereinafter, the “Leases”);
and

 

(ix)       the
agreements and contracts which TJC has expressly agreed to assume and which are listed on Schedule 1(b)(ix) (together,
the “Assumed Contracts”).

 

(c)           
Termination of Franchise Agreements. As of the Effective Date, the Parties hereby agree that effective as of the
Effective Date, the Franchise Agreements, along with any addendums, amendments, exhibits, security agreements related to the Franchise
Agreements, and all of the Parties’ rights and obligations thereunder, shall be terminated and of no further force and effect
subject to the following: All obligations imposed upon Franchisee under this Termination and Release, and the Franchise Agreements
that survive the termination, expiration or transfer of the Agreement, including but not limited to the “Post-Termination
Obligations” and the “Survival Provisions” (without limitation Section 16 of the Franchise
Agreements), shall survive and Franchisee agrees to comply with all such Post-Termination Obligations and Survival Provisions as
applicable to each in accordance with the terms of the Franchise Agreements notwithstanding its termination. Notwithstanding the
foregoing, the Post-Termination Obligations and Survival Provisions related to competition or covenants not-to-compete, shall not
be enforced by Franchisor (excepting any usage of Trade Secrets, Confidential Information or the Marks as defined in the Franchise
Agreements).

 

    	- 2 -

     

    

 

		2.	Excluded Assets

 

Notwithstanding anything to the contrary contained
in this Agreement, it is expressly acknowledged by TJC that Seller will not be conveying to TJC (a) any cash, cash equivalents,
working capital, or accounts receivable (other than accounts receivable under membership agreements or other arrangements described
in Section 1(b)(iii) above for periods after Closing), (b) any of the proceeds of the transaction described in this Agreement,
(c) the items listed on the attached Schedule 2, and (d) any other assets, properties or rights of Seller owned or
used by Seller but not used in or directly related to the Subject Franchises (collectively, the “Excluded Assets”).

 

		3.	No Assumption of Liabilities

 

Except as expressly provided in this Agreement,
TJC shall not assume any debts, liabilities or obligations of Seller or its shareholders, members, affiliates, officers, employees
or agents of any nature, whether known or unknown, fixed or contingent, including, but not limited to, debts, liabilities or obligations
with regard or in any way relating to any contracts (including, without limitation, any of the following: (i) employment agreements;
(ii) stock transfer agreements; and (iii) medical direction agreements; leases for real or personal property, trade payables, tax
liabilities, disclosure obligations, product liabilities, liabilities to any regulatory authorities, liabilities relating to any
claims, litigation or judgments, any pension, profit-sharing or other retirement plans, any medical, dental, hospitalization, life,
disability or other benefit plans, any stock ownership, stock purchase, deferred compensation, performance share, bonus or other
incentive plans, or any other similar plans, agreements, arrangements or understandings which Seller, or any of its affiliates,
maintain, sponsor or are required to make contributions to, in which any employee of Seller participates or under which any such
employee is entitled, by reason of such employment, to any benefits (collectively the (“Excluded Liabilities”).
For the avoidance of doubt, any liability under any leases for real property for the Subject Franchises, whether or not assumed
by TJC, for the period before Closing, shall be an Excluded Liability. However, any liability for periods after Closing under any
assigned leases for real property for the Subject Franchises shall not be an Excluded Liability.

 

		4.	Payment of Purchase Price

 

(a)           
The purchase price to be paid by TJC for the Assets (the “Purchase Price”) is One Million Six Hundred
and Fifty Thousand and No/100 ($1,650,000.00), subject to adjustment as set forth in Section 4(d);

 

(b)           
TJC will pay to Seller the amount of $1,500,000.00 in cash by wire transfer before close of business, eastern daylight
savings time, on the Closing Date, less the following items: (i) any amounts to be paid to third parties in connection with the
satisfaction of liens or security interests affecting the Assets; (ii) any amounts required to be paid to the landlords in connection
with the assignment of the Leases; (iii) the Prepayment Balance for at each location of the Subject Franchises as of the Closing
Date; and (iv) any outstanding or accrued royalties, advertising contributions and other fees under the Franchise Agreements through
the Closing Date (collectively, the “FA Fees”);

 

(c)           
Subject to Section 4(d) below, the $150,000.00 balance of the Purchase Price (the “Purchase Price
Balance”) shall be paid by TJC to Seller ninety (90) calendar days after the Closing Date (the “Purchase Price
Balance Due Date”); and

 

(d)           
Within ninety (90) days after Closing Date, the Purchase Price Balance shall be adjusted by appropriate pro-rations for
rent, state and local real estate taxes and transfer taxes, sales tax, service and utility contracts, any merchant card collections
on account of the Subject Franchises only for periods after the Closing, balance of any security deposit held by the landlord under
the Leases that transfers to TJC, FA Fees, Prepayment Balance, if applicable, and payroll and employee related payments related
to the Subject Franchises in respect of periods prior to Closing (the “Adjustments”). The Parties shall cooperate
to determine the amounts of the Adjustments, and shall use commercially reasonable efforts to determine amounts within sixty (60)
days after Closing Date and shall reimburse the other party as necessary and as detailed below. The agreed amount of the Adjustments
shall be documented by a written calculation signed by the Parties hereto (the “Adjustment Agreement”). In the
event that the Parties agree that the Adjustments in favor of Seller are greater than the Adjustments in favor of TJC, TJC shall
remit the net amount of Adjustments to Seller along with the remittance of the Purchase Price Balance on the Purchase Price Balance
Due Date. In the event that the Parties agree that the Adjustments in favor of TJC are greater than the Adjustments in favor of
Seller, the Purchase Price Balance shall be reduced by the net amount of the Adjustments.

 

    	- 3 -

     

    

 

		5.	Closing

 

Subject to the satisfaction or waiver of the
conditions described in Sections 9 and 10, the Closing of the transactions described herein shall take place on or
about July 15, 2019, but in any event no later than July 31, 2019, at such time as the Parties agree, and shall occur
at the offices of TJC. The date on which the Closing takes place is referred to in this Agreement as the “Closing Date.”
At the Closing, Seller shall deliver, or cause its affiliates to deliver, such bills of sale, assignments, certificates and other
documents and instruments as may reasonably be requested by TJC to carry out the transfer and assignment to TJC of the Assets,
including execution of the “Bill of Sale and Assignment,” attached hereto at Exhibit B. Following the
Closing, the Parties shall cooperate fully with each other and shall make available to the other, as reasonably requested and at
the expense of the requesting party, and to any taxing or regulatory authority, all information, records or documents relating
to tax obligations and regulatory compliance matters of Seller for all periods on or prior to the Closing Date, and shall preserve
all such information, records and documents until the expiration of any applicable statute of limitations and extensions thereof.

 

		6.	Representations, Warranties and Covenants of Seller and the Shareholder

 

Seller and Shareholder hereby jointly and severally
represent and warrant to TJC as follows, and further memorialized hereto at Exhibit D – Seller’s Certificate:

 

(a)       Organization.
Seller is comprised of three limited liability companies that are each duly organized and validly subsisting under the laws of
the State of Georgia, and each has full power and authority to conduct its business as it is now being conducted, and to execute,
deliver and perform this Agreement.

 

(b)       Authority.
Seller is not a party to, subject to, or bound by any agreement, judgment, order, writ, injunction, or decree of any court or governmental
body that prevents or impairs the carrying out of this Agreement. The execution, delivery and performance of this Agreement and
all other documents, instruments and agreements contemplated hereby have been duly authorized by all required corporate, limited
liability company or limited partnership action of Seller. All other actions (including all action required by state law and by
the organizational documents of Seller) necessary to authorize the execution, delivery and performance by Seller of this Agreement,
the bills of sale transferring the Assets, the assignments in connection herewith and the other documents, instruments and agreements
necessary or appropriate to carry out the transactions herein contemplated, have been taken by Seller. Upon the execution of this
Agreement and the other documents and instruments contemplated hereby by Seller and the Shareholder (and assuming the due execution
and delivery by the other parties), this Agreement and such other documents and instruments will be the valid and legally binding
obligations of Seller and the Shareholder, enforceable against each of them in accordance with their respective terms, subject
to applicable bankruptcy, insolvency, reorganization, moratorium and similar laws affecting creditors’ rights generally,
and subject, as to enforceability, to general principles of equity, including principles of commercial reasonableness, good faith
and fair dealing (regardless of whether enforcement is sought in a proceeding at law or in equity). Except as set forth on Schedule
6(b), no authorization, consent, approval or other order of, declaration to or filing with any third party, including any
governmental body or authority is required for the approval or consummation by Seller or the Shareholder of the transactions contemplated
by this Agreement. Seller and the Shareholder agree that assignment of the Leases shall not be subject to or contingent upon any
novation or any release of any principal obligor or guarantor thereunder.

 

    	- 4 -

     

    

 

(a)           
 Taxes. Seller has filed when due in accordance with all applicable laws (or properly and timely filed an extension
therefor) all tax returns required under applicable statutes, rules or regulations to be filed by it. As of the time of filing,
such returns were accurate and complete in all material respects. All taxes due with respect to Seller and the Assets, and all
additional assessments received, have been paid. Seller is not delinquent in the payment of any such tax and none has requested
any extension of time within which to file any tax return, which return has not since been filed. There are no federal, state,
local or other tax liens outstanding on any of the Assets being sold hereunder.

 

(b)           
Title to and Condition of Assets. Seller has good and marketable title to (or, with respect to any Assets that are
leased, a valid leasehold interest in) all of the Assets to be acquired by TJC at the Closing, free from any liens, adverse claims,
security interest, rights of other parties or like encumbrances of any nature. The Assets consisting of physical property are in
good condition and working order, normal wear and tear excepted, and function properly for their intended uses.

 

(c)           
Compliance with Laws. To the best of Seller’s and Shareholder’s knowledge, neither Seller nor the Subject
Franchises are in violation of, nor are they or any of them subject to any liability in respect of, any federal, state, county,
township, city or municipal laws, codes, regulations or ordinances (including without limitation those relating to environmental
protection, health, hazardous or toxic substances, fire or safety hazards, occupational safety, labor laws, employment discrimination,
subdivision, building or zoning) with respect to the conduct of the Subject Franchises, nor has Seller received any notices of
investigation or violation pertaining to any such matters. To the best of Seller’s and Shareholder’s knowledge, Seller
has, and all professional employees or agents of Seller have, all licenses, franchises, permits, authorizations or approvals from
all governmental or regulatory authorities required for the conduct of the Subject Franchises and neither Seller nor the professional
employees or agents of Seller have violated any such license, franchise, permit, authorization or approval or any terms or conditions
thereof.

 

(d)           
Litigation. There is no action, suit or proceeding pending, threatened against or affecting the Assets, or relating
to or arising out of, the ownership or operation of the Assets, including claims by employees of the Subject Franchises.

 

(e)           
Employees. Schedule 6(g) attached hereto contains a complete and correct list of the name, position,
current rate of compensation and any vacation or holiday pay and any other compensation arrangements or fringe benefits, of each
current employee of Seller who is directly employed in the Subject Franchises (collectively, the “Employees”).
Seller and Shareholder hereby agree to terminate all of the Employees as of the Closing Date and pay any and all compensation due
the Employees through the Closing Date; including, but not limited to, all base pay, hourly pay, bonuses and commission, vacation
and sick time, and any severance obligations.

 

    	- 5 -

     

    

 

(f)            
Contracts. Seller has delivered to TJC copies of any and all material contracts, leases, agreements, software licensing
agreements, or commitments, unless customarily kept in non-physical, non-pdf format or other digital document format, with respect
to the Assets or the Subject Franchises. Except as set forth in Schedule 6(h), no consent or approval of any third
party is required for the assignment to TJC of any contracts that TJC is assuming pursuant to Sections 1(b)(iii), (vi), (vii),
(viii), and (ix).

 

(g)           
Financial Statements. Seller has delivered to TJC the financial statements for the Subject Franchises as of and for
the calendar years 2017 and 2018 and for the first four months of 2019 (collectively, the “Financial Statements”).
The Financial Statements fairly present and will fairly present the financial position and results of operations of the Subject
Franchises as of and for the periods presented.

 

(h)           
Claims.  Neither Seller, Shareholder, nor any other person who holds or has ever held a direct or indirect
interest in the Subject Franchises has any claim, demand, or cause of action for damages of any kind whatsoever, whether known
or unknown, against TJC or its officers, directors, employees, attorneys, agents, successors and assigns by reason of any event,
occurrence or omission arising under, or relating to, the Subject Franchises.

 

(i)            
Pre-Closing Operations. Until such time as the Subject Franchises have been transferred and assigned to TJC, Seller
and the Shareholder shall continue to operate the Subject Franchises in a commercially reasonable manner (including without limitation,
engaging in the sale of any products or packages at discounted amounts, or other revenue “stuffing” activities), consistent
with the respective franchise agreement, and neither the Seller nor any of the Shareholder shall take any actions or operate the
Subject Franchises in such a way as to cause or precipitate any diminution in their prospective, post-closing sales or any material
shift in their prospective, post-closing revenue streams.

 

		7.	TJC’s Representations and Warranties

 

TJC represents and warrants to Seller and the
Shareholder as follows:

 

(a)           
Organization of TJC. TJC is a corporation duly organized and validly subsisting under the laws of the state of Delaware,
and TJC has full power and authority to conduct its business as it is now being conducted, and to execute, deliver and perform
this Agreement.

 

(b)           
Authorization. TJC is not a party to, subject to or bound by any agreement, judgment, order, writ, injunction, or
decree of any court or governmental body that prevents or impairs the carrying out of this Agreement. The execution, delivery and
performance of this Agreement and all other documents, instruments and agreements contemplated hereby have been duly authorized
by TJC’s Board of Directors. All other actions (including all action required by state law and by the organizational documents
of TJC) necessary to authorize the execution, delivery and performance by TJC of this Agreement, the Note, the bill of sale transferring
the Assets, the assignments in connection herewith and the other documents, instruments and agreements necessary or appropriate
to carry out the transactions herein contemplated, have been taken by TJC. Upon the execution of this Agreement and the other documents
and instruments contemplated hereby by TJC, this Agreement and such other documents and instruments will be the valid and legally
binding obligations of TJC, enforceable against it in accordance with their respective terms, subject to applicable bankruptcy,
insolvency, reorganization, moratorium and similar laws affecting creditors’ rights generally, and subject, as to enforceability,
to general principles of equity, including principles of commercial reasonableness, good faith and fair dealing (regardless of
whether enforcement is sought in a proceeding at law or in equity).

 

    	- 6 -

     

    

 

(c)           
No Consent or Approval Required. No authorization, consent, approval or other order of, declaration to or filing
with any governmental body or authority, including, without limitation, with respect to environmental matters, is required for
the consummation by TJC of the transactions contemplated by this Agreement.

 

(d)           
No Violation of Other Agreements. Neither the execution and delivery of this Agreement nor compliance with the terms
and conditions of this Agreement by TJC will breach or conflict with any of the terms, conditions or provisions of any agreement
or instrument to which TJC is or may be bound or constitute a default thereunder or result in a termination of any such agreement
or instrument.

 

(e)           
Financial Capability. TJC will have at Closing, sufficient internal funds available to pay the Purchase Price and
any fees or expenses incurred by TJC in connection with the transactions contemplated hereby.

 

		8.	Pre-Closing Events

 

(a)           
General. Pending Closing, the Parties shall use commercially reasonable efforts to take all actions that may be necessary
to close the transaction in accordance with the terms of this Agreement (but TJC shall not be required to waive any of the TJC
Closing Conditions, and Seller and the Shareholder shall not be required to waive any of the Seller Closing Conditions).

 

(b)           
Conduct of Business. Pending Closing, Seller and the Shareholder shall:

 

(i)            
conduct the business of the Subject Franchises in the ordinary course and use commercially reasonable efforts, in consultation
with (but without being bound by) TJC’s transition management team personnel, to maintain and grow the business of the Subject
Franchises and to preserve their goodwill and advantageous relationships with patients, employees, suppliers and other persons
having business dealings with the Subject Franchises. In clarification of the foregoing, Seller and Shareholder hereby acknowledge
and agree that they shall not sell Heavily Discounted Prepaid Packages from the Subject Franchises from June 1, 2019 until the
Closing Date. “Heavily Discounted Prepaid Packages” shall mean prepaid packages that are priced below the average pricing
Seller and Shareholder sold prepaid packages at the Subject Franchises during the preceding two years; and

 

(ii)           
not take any affirmative action that results in the occurrence of an event of default under any contract or agreement to
which Seller is a party and take any reasonable action within Seller’s control that would avoid the occurrence of such default.

 

		(c)	Access to Information. Pending Closing, Seller and the Shareholder shall:

 

(i)            
afford TJC and its representatives (including its lawyers, accountants, consultants and the like) reasonable access during
normal business hours, but without unreasonable interference with operations, to the Seller’s books and records and other
documents relating to the Subject Franchises;

 

(ii)           
respond to reasonable inquires by TJC and its representatives regarding Seller;

 

    	- 7 -

     

    

 

(iii)         
cause Seller to furnish TJC and its representatives with all information and copies of all documents concerning Seller that
TJC and its representatives reasonably request;

 

(iv)         
deliver to TJC, Seller’s financial statements for the period between January 1, 2019 and the end of the last full
month before Closing; and

 

(v)           
otherwise cooperate with TJC in its due diligence activities.

 

(d)           
Notice of Developments. Pending Closing, Seller and the Shareholder shall promptly give notice to TJC of:

 

(i)            
any fact or circumstance of which Seller or Shareholder becomes aware that causes or constitutes a material inaccuracy in
or material breach of any of Seller’s or Shareholder’s representations and warranties in Section 6 as of the
date of this Agreement;

 

(ii)           
any fact or circumstance of which Seller or a Shareholder becomes aware that would cause or constitute a material inaccuracy
in or material breach of any of Seller’s or the Shareholder’s representations and warranties in Section 6 if
those representations and warranties were made on and as of the date of occurrence or discovery of the fact or circumstance; or

 

(iii)         
the occurrence of any event of which Seller or Shareholder becomes aware that reasonably could be expected to make satisfaction
of any TJC Closing Condition impossible or unlikely.

 

(e)           
Supplements to Schedules. Pending Closing, Seller may supplement or correct the Schedules to this Agreement as necessary
to insure their completeness and accuracy. No supplement or correction to any Schedule or Schedules to this Agreement shall be
effective, however, to cure any breach or inaccuracy in any of the representations and warranties; but if TJC does not exercise
its right to terminate this Agreement under Section 12 and closes the transaction, the supplement or correction shall constitute
an amendment of the Schedule or Schedules to which it relates for all purposes of this Agreement.

 

		9.	TJC Closing Conditions

 

Except as provided herein, TJC’s obligation
to close the transaction is subject to the satisfaction of each of the following conditions (the “TJC Closing Conditions”)
at or prior to Closing:

 

(a)       Seller’s
and the Shareholder’s representations, warranties and covenants in Section 6, as qualified or limited by any exceptions
in the Schedules to Section 6, are true, correct and fulfilled on the Closing Date as if made at and as of Closing (other
than representations and warranties that address matters as of a certain date, which were true and correct as of that date);

 

(b)       At
Exhibit C hereto, Seller and the Shareholder have executed and delivered all of the documents and instruments that
they are required to execute and deliver or enter into prior to or at Closing, and have performed, complied with or satisfied in
all material respects all of the other obligations, agreements and conditions under this Agreement that they are required to perform,
comply with or satisfy at or prior to Closing, and Seller and the Shareholder shall have delivered to TJC properly executed and
notarized releases (in form and substance acceptable to TJC, in its sole and absolute discretion) from any and all third parties
from whom waivers, releases and/or approvals are necessary (in TJC’s sole and absolute discretion) to effectuate the transfer
of the Assets to TJC free and clear of any and all third party interests, claims, liens or security interests;

 

    	- 8 -

     

    

 

(c)       no
material adverse change in the Seller’s assets, financial condition, operations, operating results or prospects relating
to the Subject Franchise has occurred since the date of this Agreement;

 

(d)       no
suit has been initiated or threatened by a third party that challenges or seeks damages or other relief in connection with the
transaction or that could have the effect of preventing, delaying, making illegal or otherwise interfering with the transaction;

 

		(e)	Seller has obtained and delivered to TJC all consents listed on Schedule 6(h);

 

(f)       Seller
has terminated all of the Employees as of the Closing Date and paid all wages, bonuses, commissions, vacation and sick pay, benefits
and any applicable severance to such Employees as of the Closing Date; and TJC has reached satisfactory rehiring terms with those
of the Employees it wants to retain going forward, with such determination to be made in TJC’s sole and absolute discretion;

 

(g)       Seller
has obtained consents to the assignment of, and estoppel letters under, the Leases attached hereto as Exhibit A,
relating to the premises of the Subject Franchises, in a form reasonably acceptable to TJC.

 

(h)       TJC
has received the approval of its Board of Directors to close the transaction contemplated by this Agreement;

 

(i)            
TJC has completed its due diligence activities under Section 8 above to its satisfaction, with such determination
to be made in TJC’s sole and absolute discretion;

 

(j)       The
Seller and the Shareholder have executed and delivered, in a form reasonably acceptable to TJC, releases of all Claims against
TJC, its officers, directors, employees, attorneys, agents, successors and assigns, arising prior to the Closing, in form and substance
acceptable to TJC in its sole discretion;

 

(k)       Seller
has delivered payoff letters and releases of security interests or liens from any secured lenders or lessors;

 

(l)       Seller
has delivered the information as set forth at Exhibit E – Due Diligence Request, attached hereto; and

 

(m)       TJC
is able to negotiate lease terms and conditions for each clinic satisfactory to TJC at it’s absolute and sole discretion.

 

TJC may waive any condition specified in this
Section 9 by a written waiver delivered to Seller or Shareholder at any time prior to or at Closing.

 

		10.	Seller’s Closing Conditions

 

Seller’s obligation to close the transaction
is subject to the satisfaction of each of the following conditions (the “Seller Closing Conditions”) at or prior to
Closing:

 

(a)       TJC’s
representations and warranties in Section 7 were true and correct as of the date of this Agreement and are true and correct
on the Closing Date as if made at and as of Closing;

 

    	- 9 -

     

    

 

(b)       TJC
has executed and delivered all of the documents and instruments that it is required to execute and deliver or enter into prior
to or at Closing, and has performed, complied with or satisfied in all material respects all of the other obligations, agreements
and conditions under this Agreement that it is required to perform, comply with or satisfy prior to or at Closing; and

 

(c)       no
suit has been initiated or threatened by a third party since the date of this Agreement that challenges or seeks damages or other
relief in connection with the transaction or that could seeks to prevent the transaction.

 

Seller may waive any condition specified in
this Section 10 by a written waiver delivered to TJC at any time prior to or at Closing.

 

		11.	Non-Competition; Non-Solicitation; Confidentiality

 

(a)           
Definitions. Wherever used in this Section 11, the term “TJC” shall refer to TJC and any
affiliate, subsidiary, or any successor or assign of TJC. Wherever used in this Section, the phrase “directly or indirectly”
includes, but is not limited to, acting, either personally or as principal, owner, shareholder, member, employee, independent contractor,
agent, manager, partner, joint venturer, consultant, or in any other capacity or by means of any corporate or other device, or
acting through the spouse, children, parents, brothers, sisters, or any other relatives, friends, invitees, agents, or associates
of any of the undersigned parties. Wherever used in this Section, the term “employees” shall refer to employees of
TJC; any affiliate, subsidiary, or any successor or assign of TJC; and any franchisee of TJC existing as of the date of this Agreement
and, to the extent allowable by law, any other person that has been an employee (as defined above) in the twelve (12) months preceding
the date of this Agreement. Whenever used in this Section, the term “Confidential Information” shall be defined as
provided in Section 9 of Seller’s, and Shareholder’s franchise agreement with TJC, which provisions are hereby
incorporated by reference and shall expressly further include any audio or video recordings possessed by Seller and/or Shareholder
of conversations between TJC’s employees and both Seller and/or Shareholder.

 

(b)           
Consideration. The undersigned parties acknowledge that consideration for this Agreement has been provided and is
adequate.

 

(c)           
Need for this Agreement. The undersigned parties recognize that in the highly competitive business in which TJC and
its affiliates and franchisees are engaged, preservation of Confidential Information is crucial and personal contact is important
in securing new franchisees and employees, and retaining the goodwill of present franchisees, employees, customers, and suppliers.
Personal contact is a valuable asset and is an integral part of protecting the business of TJC. Seller and the Shareholder recognize
that each of them has had substantial contact with TJC’s employees, customers, consultants, vendors and suppliers and Confidential
Information. For that reason, Seller and the Shareholder may be in a position to take for his, her or its benefit the goodwill
TJC has with its employees and customers (patients) and Confidential Information now or in the future. If Seller or the Shareholder
at any time after Closing takes advantage of such Confidential Information or goodwill for their own benefit, then the competitive
advantage that TJC has created through its efforts and investment will be irreparably harmed.

 

(d)           
Non-Competition with TJC. Seller and the Shareholder agree that, for thirty six (36) months following the date of
Closing, neither Seller nor the Shareholder, will have any direct or indirect interest (e.g., through a spouse, common law or otherwise)
as a disclosed or beneficial owner, investor, partner, director, officer, employee, consultant, representative or agent, or in
any other capacity, in any Chiropractic Business located or operating within twenty-five (25) miles of any chiropractic clinic
currently or within such thirty-six (36) month period owned by TJC or operated by a TJC third party independent franchisee. The
term “Chiropractic Business” means any business which derives more than Ten Thousand Dollars ($10,000.00) of revenue
per year from the performance of chiropractic or related services, or any business which grants franchises or licenses to others
to operate such a business, with the sole exception of (i) a regional developer license granted by TJC or (ii) a franchise operated
under a franchise agreement with TJC.

 

    	- 10 -

     

    

 

(e)           
Non-Solicitation of TJC’s Employees. Seller and Shareholder agree that for twelve (12) months after the date
of this Agreement, it, he or she will not directly or indirectly: (a) induce, canvas, solicit, or request or advise any employees,
suppliers, vendors or consultants of TJC, or any TJC franchisee or affiliated professional corporation to accept employment with
any person, firm, or business that competes with any business of TJC or any TJC franchisee or affiliated professional corporation;
or (b) induce, request, or advise any employee of TJC or TJC franchisee or affiliated professional corporation to terminate such
employee’s relationship with TJC or any TJC franchisee or affiliated professional corporation; or (c) disclose to any other
person, firm, partnership, corporation or other entity, the names, addresses or telephone numbers of any of the employees of TJC
or any TJC franchisee or affiliated professional corporation, except as required by law.

 

(f)            
Non-solicitation of TJC’s Customers (Patients). Seller and Shareholder each agrees that for thirty six (36)
months after the date of this Agreement, it, he or she will not directly or indirectly: (a) induce, canvas, solicit, or request
or advise any customers of TJC or any TJC franchisee or affiliated professional corporation to become customers of any person,
firm, or business that competes with any business of TJC or any TJC franchisee or affiliated professional corporation; or (b) induce,
request or advise any customer of TJC or any TJC franchisee or affiliated professional corporation to terminate or decrease such
customer’s relationship with TJC or any TJC franchisee or affiliated professional corporation; or (c) disclose to any other
person, firm, partnership, corporation or other entity, the names, addresses or telephone numbers of any of the customers of TJC
or any TJC franchisee or affiliated professional corporation, except as required by law.

 

(g)           
Confidential Information. Seller and Shareholder agree at all times following the date of this Agreement, to hold
the Confidential Information in the strictest confidence and not to use such Confidential Information for Seller’s or Shareholder’s
personal benefit, or the benefit of any other person or entity other than TJC, or disclose it directly or indirectly to any person
or entity without TJC’s express authorization or written consent. Seller and the Shareholder fully understand the need to
protect the Confidential Information and all other confidential materials and agree to use all reasonable care to prevent unauthorized
persons from obtaining access to Confidential Information at any time.

 

(h)           
Tolling. To ensure that TJC will receive the full benefit of this Section 11, the provisions of Subsections
(d), (e) and (f) of this Section 11 will shall be extended by a length of time equal to (i) the period during which Seller
or Shareholder is in violation of Seller or the Shareholder’s agreements under such Subsections, and (ii) without duplication,
any period during which litigation that TJC institutes to enforce the Seller or Shareholder’s agreements under such Subsections
is pending (to the extent that Seller or Shareholder is in violation of Seller’s or Shareholder’s agreements under
such Subsections during this period).

 

(i)            
Non-Disparagement: Each of the Parties expressly covenant and agree not to make any false representations, or to
defame, disparage, discredit or deprecate any of the other Parties or otherwise communicate with any person or entity in a manner
intending to damage any of the other Parties, the business conducted by any of the other Parties, or the reputation of any of the
other Parties. For purposes of clarity, the obligations in this Section apply to all methods of communications, including the making
of statements or representations through direct verbal or written communication as well as the making of statements or representations
on the Internet, through social media sites or through any other verbal, digital or electronic method of communication. The obligations
in this Section also prohibit the Parties from indirectly violating this Section by influencing or encouraging third parties to
engage in activities that would constitute a violation of this Section if conducted directly by one of the Parties.

 

    	- 11 -

     

    

 

12.       Termination

 

(a)       This
Agreement may be terminated by TJC, upon notice to Seller and the Shareholder, if prior to or at Closing:

 

(i)       Seller
or Shareholder defaults in the performance of any of their material obligations under this Agreement and the default is not cured
within five business days after TJC gives notice of the default to Seller and the Shareholder; or

 

(ii)       any
TJC Closing Condition is not satisfied as of July 15, 2019, or satisfaction of any TJC Closing Condition is or becomes impossible
(other than as a result of TJC’s breach of or failure to perform its obligations under this Agreement), and TJC does not
waive satisfaction of the condition; or

 

(iii)       Closing
does not occur on or before July 31, 2019 (other than as a result of TJC’s breach of or failure to perform its obligations
under this Agreement).

 

(b)       This
Agreement may be terminated by Seller or the Shareholder, upon notice to TJC, if prior to or at Closing:

 

(i)       TJC
defaults in the performance of any of its material obligations under this Agreement and the default is not cured within five Business
Days after Seller or Shareholder gives notice of the default to TJC;

 

(ii)       any
Seller Closing Condition is not satisfied as of July 15, 2019, or satisfaction of any Seller Closing Condition is or becomes impossible
(other than as a result of Seller’s, or Shareholder’s breach of or failure to perform their obligations under this
Agreement) and Seller does not waive satisfaction of the condition; or

 

(iii)       Closing
has not occurred by July 31, 2019 (other than as a result of Seller’s, or Shareholder’s breach of or failure to perform
their obligations under this Agreement); or

 

(c)       This
Agreement may be terminated by the written agreement of the Parties.

 

(d)       The
right of termination under this Section 12 is in addition to any other rights that a party may have under this Agreement
or otherwise, and a party’s exercise of its right of termination shall not be considered an election of remedies. Notwithstanding
the termination of this Agreement pursuant to this Section 12, the Parties’ confidentiality obligations under Section
11(g) shall survive termination and continue indefinitely.

 

13.       Indemnification
of TJC

 

(a)       Subject
to Sections 15 and 16, Seller and the Shareholder agree, jointly and severally, to indemnify TJC against and hold TJC harmless
from:

 

    	- 12 -

     

    

 

(i)       any
loss, liability, damage, cost or expense, including reasonable attorneys’ fees and cost of investigation (“Loss”)
that TJC (or its directors, representatives, affiliates, employees, subsidiaries, and other related parties or individuals) may
suffer or incur that is caused by, arises out of or relates to any failure, inaccuracy in or breach of any representation and warranty
by Seller or Shareholder in Section 6 of this Agreement;

 

(ii)       any
Loss that TJC may suffer or incur that is caused by, arises out of or relates to Seller’s or Shareholder’s breach of
or failure to perform any of their covenants and obligations in this Agreement in any material respect; or

 

(iii) any Loss that TJC may suffer
or incur that is caused by, arises out of or relates to the assertion against TJC of an Excluded Liability.

 

Claims asserted by TJC under subsections (i),
(ii) and (iii) above are hereinafter referred to as TJC’s “Indemnification Claim(s).”

 

(b)       The
benefit of the indemnification obligations of Seller and the Shareholder under this Section 13 shall extend to the respective
officers, directors, employees and agents of TJC and its affiliates.

 

14.     Indemnification
of Seller and the Shareholder

 

(a)       Subject
to Sections 15 and 16, TJC agrees to indemnify Seller and the Shareholder against and hold each of them harmless from:

 

(i)       any
Loss that Seller or the Shareholder may suffer or incur that is caused by, arises out of or relates to any inaccuracy in or breach
of any representation and warranty by TJC in Section 7 of this Agreement;

 

(ii)       any
Loss that Seller or the Shareholder may suffer or incur that is caused by, arises out of or relates to TJC’s breach of or
failure to perform any of its obligations in this Agreement in any material respect; or

 

(iii)       any
Loss that Seller or the Shareholder may suffer or incur that is caused by, arises out of or relates to TJC’s operation of
the Subject Franchises after Closing.

 

Claims asserted by Seller or the Shareholder under
subsections (i), (ii) and (iii) above are hereinafter referred to as Sellers’ or the Shareholder’s “Indemnification
Claim(s).”

 

(b)       The
benefit of TJC’s indemnification obligation under this Section 14 shall extend to the heirs and legal representatives
of Seller and the Shareholder.

 

15.       Threshold
and Cap

 

(a)       In
respect of TJC’s assertion of an Indemnification Claim under Section 13(a)(i), TJC shall not be entitled to indemnification
until the aggregate amount for which indemnification is sought exceeds $10,000.00. If this threshold is reached, TJC may
assert an Indemnification Claim for the full amount of the claim (going back to the first dollar) and may assert any subsequent
Indemnification Claim under Section 13(a)(i) without regard to any threshold. The maximum aggregate amount for which TJC
may assert Indemnification Claims under Section 13 shall be the Purchase Price. No threshold or cap shall apply, however,
in the case of any Loss caused by, arising out of or relating to any fraud or intentional misrepresentation.

 

    	- 13 -

     

    

 

(b)       In
respect of Seller’s and/or a Shareholder’s assertion of an Indemnification Claim under Section 14(a)(i), Seller
and/or the Shareholder shall not be entitled to indemnification until the aggregate amount for which indemnification is sought
collectively exceeds $10,000.00. If this threshold is reached, Seller and the Shareholder may assert an Indemnification
Claim for the full amount of the claim (going back to the first dollar) and may assert any subsequent Indemnification Claim under
Section 13(a)(i) without regard to any threshold. The maximum aggregate amount for which Seller and/or the Shareholder may
assert Indemnification Claims under Section 14 shall be the Purchase Price. No threshold shall apply, however, in the case
of any Loss caused by, arising out of or relating to any fraud or intentional misrepresentation.

 

(c)       No
threshold shall apply to TJC’s assertion of an Indemnification Claim under Sections 13(a)(ii) or (iii) or to Seller’s
or Shareholder’s assertion of an Indemnification Claim under Sections 14(a)(ii) or (iii).

 

16.       Survival

 

(a)       An
Indemnification Claim under Sections 13(a)(i) and 14(a)(i) may be asserted at any time prior to the second anniversary
of the Closing Date, with the exception that:

 

(i)       an
Indemnification Claim under Section 13(a)(i) in respect of any inaccuracy in or breach of any of the representations and
warranties in Section 6(c) (“Taxes”) may be asserted at any time prior to the expiration of the applicable statute
of limitation; and

 

(ii)       an
Indemnification Claim under Section 13(a)(i) in respect of any inaccuracy in or breach of any of the representations and
warranties in Sections 6(b) (“Authority”) and 6(d) (“Title to and Condition of Assets”),
may be asserted at any time without limit, but only as to Indemnification Claims related to title to Assets, not the condition
of Assets.

 

(b)        An
Indemnification Claim under Sections 13(a)(ii) and (iii) and Sections 14(a)(ii) and (iii) may be asserted
at any time prior to ninety (90) days after the expiration of the applicable statute of limitation.

 

17.       Notice
of Indemnification Claim

 

(a)       The
indemnified party may assert an Indemnification Claim by giving written notice of the Indemnification Claim to the indemnifying
party. The indemnified party’s notice shall provide reasonable detail of the facts giving rise to the Indemnification Claim
and a statement of the indemnified party’s Loss or an estimate of the Loss that the indemnified party reasonably anticipates
that it will suffer. The indemnified party may amend or supplement its Indemnification Claim at any time, and more than once, by
written notice to the indemnifying party.

 

(b)       If
or to the extent that the Indemnification Claim is not in respect of a Third-Party Suit, Section 18 shall apply. If or to
the extent that the Indemnification Claim is in respect of a Third-Party Suit, Section 19 shall apply.

 

    	- 14 -

     

    

 

18.       Resolution
of Claims

 

(a)       If
the indemnifying party does not object to an Indemnification Claim during the 30-day period following receipt of the indemnified
party’s notice of its Indemnification Claim, the indemnified party’s Indemnification Claim shall be considered undisputed,
and the indemnified party shall be entitled to recover the actual amount of its indemnifiable loss from the indemnifying party,
subject to the threshold, if any, in Section 15(a) or (b).

 

(b)       If
the indemnifying party gives notice to the indemnified party within the 30-day objection period that the indemnifying party objects
to the indemnified party’s Indemnification Claim, the indemnifying party and the indemnified party shall attempt in good
faith to resolve their differences during the 30-day period following the indemnified party’s receipt of the indemnifying
party’s notice of its objection. If they fail to resolve their disagreement during this 30-day period, either of them may
unilaterally submit the disputed Indemnification Claim for non-binding arbitration before the American Arbitration Association
in Savannah, Georgia in accordance with its rules for commercial arbitration in effect at the time, which shall be a condition
precedent to seeking resolution of the disputed Indemnification Claim before any court of competent jurisdiction. The award of
the arbitrator or panel of arbitrators may include attorneys’ fees to the prevailing party. The prevailing party may enforce
the award of the arbitrator or panel of arbitrators in any court of competent jurisdiction.

 

19.       Third
Party Suits

 

(a)       Indemnified
party shall promptly give notice to indemnifying party of any suit, demand, or claim by a third person against indemnified party,
for which indemnified party is entitled to indemnification under Section 13(a) (a “Third Party Suit”), which
may be given by notice of an Indemnification Claim in respect of the Third-Party Suit. Indemnified party’s failure or delay
in giving this notice shall not relieve indemnifying party from its indemnification obligation under this Section 19(a)
in respect of the Third-Party Suit, except to the extent that indemnifying party suffers or incur a loss or is prejudiced by reason
of indemnified party’s failure or delay.

 

(b)       Indemnified
party shall control the defense of any Third-Party Suit. Indemnifying party shall be entitled to copies of all pleadings and, at
its expense, may participate in, but not control, the defense and employ its own counsel. Indemnifying party shall in any event
reasonably cooperate in the defense of the Third-Party Suit.

 

(c)       Indemnified
party’s settlement of a Third-Party Suit shall also be binding on indemnifying party, in the same manner as if a final judgment
in the amount of the settlement had been entered by a court of competent jurisdiction, if, as part of the settlement, indemnifying
party receives a binding release providing that any liability of indemnifying party in respect of the Third-Party Suit is being
satisfied as part of the settlement. Indemnified party shall give indemnifying party at least thirty (30) days’ prior notice
of any proposed settlement, and during this thirty (30)-day period indemnifying party may reject the proposed settlement and instead
assume the defense of the Third-Party Suit if:

 

(i)       the
Third-Party Suit seeks only money damages and does not seek injunctive or other equitable relief against indemnified party;

 

(ii)       Indemnifying
party unconditionally acknowledges in writing to indemnified party that indemnifying party is obligated to indemnify indemnified
party in full in respect of the Third-Party Suit (except for any matters that are not subject to indemnification under this Agreement);

 

    	- 15 -

     

    

 

(iii)       the
counsel chosen by indemnifying party to defend the Third-Party Suit is reasonably satisfactory to indemnified party;

 

(iv)       Indemnifying
party furnishes indemnified party with security reasonably satisfactory to indemnified party to assure that indemnifying party
have the financial resources to defend the Third-Party Suit and to satisfy their indemnification obligation in respect of the Third-Party
Suit;

 

(v)       Indemnifying
party actively and diligently defends the Third-Party Suit; and

 

(vi)       Indemnifying
party consults with indemnified party regarding the Third-Party Suit at indemnified party’s reasonable request.

 

If indemnifying party assumes the defense of
the Third-Party Suit, indemnified party shall be entitled to copies of all pleadings and, at its expense, may participate in, but
not control, the defense and employ its own counsel.

 

(d)       Indemnifying
party may settle a Third-Party Suit in which, indemnifying party controls the defense only if the following conditions are satisfied:

 

(i)       the
terms of settlement do not require any admission by indemnifying party or indemnified party, in respect of any matters subject
to indemnification under Sections 13 or 14 of this Agreement, that in indemnified party’s reasonable judgment would
have an adverse effect on indemnified party; and

 

(ii)       as
part of the settlement, indemnified party receives a binding release providing that any liability of indemnified party in respect
of the Third-Party Suit is being satisfied as part of the settlement.

 

(e)       Indemnified
party’s failure to defend a Third Party Suit shall not relieve indemnifying party of its indemnification obligation under
Section 13 or Section 14 of this Agreement if indemnified party gives indemnifying party at least thirty (30) days’
prior notice of indemnified party’s intention not to defend the Third Party Suit and affords indemnifying party the opportunity
to assume the defense without having to satisfy the conditions in Section 19(c) for assuming the defense.

 

20.       Expenses

 

Each party shall pay its own expenses in connection
with the negotiation and preparation of this Agreement and the closing of this transaction, including the process of determining
and paying the amount of the Adjustments under Section 4(d) above. In the event of termination of this Agreement prior to
Closing pursuant to Section 12, each Party’s obligation to pay its own expenses shall be subject to any right of recovery
as a result of a default under this Agreement by the other party.

 

21.       Schedules

 

Nothing in any Schedule to Section 6
shall be considered adequate to constitute an exception to the related representation and warranty in Section 6 unless the
Schedule describes the relevant facts in reasonable detail. Any exception in a Schedule to Section 6 shall be considered
an exception to any other representation and warranty in Section 6 to which the exception relates if it is reasonably apparent
on its face that the exception in question relates to such other representation and warranty.

 

    	- 16 -

     

    

 

22.       Parties’
Review

 

Any knowledge acquired by a party (or that should
have been or could have been acquired) as a result of any due diligence or other review or investigation in connection with the
negotiation and execution of this Agreement and the closing of the transaction shall not limit that party’s right to rely
on the other party’s representations and warranties in this Agreement or circumscribe that party’s entitlement to indemnification
under this Agreement.

 

23.       Publicity

 

Any public announcement or similar publicity
regarding this Agreement or the transaction shall be issued only as, when and in the manner and form that TJC determines.

 

24.       Notices

 

(a)       All
notices under this Agreement shall be in writing and sent by certified or registered mail, overnight messenger service, or personal
delivery, as follows:

 

(i)       if
to Seller, to or in care of:

 

TJ of Savannah – Twelve Oaks, LLC

TJ of Pooler, LLC

TJ of Bluffton, LLC

44 Cotton Crossing West

Savannah, GA 31411

 

(iii)       If
to the Shareholder:

 

Robyn Meglin

Allen Meglin

44 Cotton Crossing West

Savannah, GA 31411

 

(iii)       if
to TJC, to:

 

The Joint Corp.

16767 N. Perimeter Dr. Suite 240

Scottsdale, AZ 85260

Attention: Jorge Armenteros

 

with a required copy to:

 

Aaron Gagnon, Esq.

Warshawsky Seltzer, PLLC

9943 East Bell Road

Scottsdale, AZ 85260

 

(b)       A
notice sent by certified or registered mail shall be considered to have been given five business days after being deposited in
the mail. A notice sent by overnight courier service or personal delivery shall be considered to have been given when actually
received by the intended recipient. A party may change its address for purposes of this Agreement by notice in accordance with
this Section 24.

 

    	- 17 -

     

    

 

25.       Further
Assurances and Cooperation

 

(a)       The
parties agree to (i) furnish to one another other such further information, (ii) execute and deliver to one another such further
documents and (iii) do such other acts and things that any party reasonably requests for the purpose of carrying out the intent
of this Agreement and the documents and instruments referred to in this Agreement. The Parties acknowledge that TJC may be required
to conduct audits of the financial statements of the businesses operated using the Assets, and the Seller and the Shareholder agree
to cooperate with TJC and to provide it with any information reasonably available to the Seller and the Shareholder to assist TJC
and its representatives in conducting such audits. For forty-five (45) days following the Closing, Seller and Shareholder shall
provide to TJC such assistances as TJC reasonably requests to help ensure a smooth and orderly transition of ownership of the Subject
Franchises.

 

(b)       The
Parties acknowledge that TJC may be required by applicable laws and regulations to include financial statements and information
relating to the Subject Franchises in TJC’s financial statements, and TJC may be required to perform audits of the Subject
Franchises’ financial statements. Accordingly, the Seller and the Shareholder agree to cooperate with TJC and to provide
it with any information reasonably available to the Seller and the Shareholder to assist TJC and its representatives in obtaining
such financial statements, conforming such financial statements to applicable accounting standards and conducting such audits (Seller’s
and the Shareholder’s “Section 25(b) Duties”). Such information includes, but is not limited to, the financial
books, records and work papers of Seller.

 

26.       Waiver

 

The failure or any delay by any party in exercising
any right under this Agreement or any document referred to in this Agreement shall not operate as a waiver of that right, and no
single or partial exercise of any right shall preclude any other or further exercise of that right or the exercise of any other
right. All waivers shall be in writing and signed by the party to be charged with the waiver, and no waiver that may be given by
a party shall be applicable except in the specific instance for which it is given.

 

27.       Entire
Agreement

 

This Agreement supersedes all prior agreements
between the parties with respect to its subject matter and constitutes (together with (i) the Exhibits, (ii) the Schedules and
(iii) the Parties’ Closing Documents) a complete and exclusive statement of the terms of the agreement between the parties
with respect to its subject matter. This Agreement may not be amended except by a written agreement signed by the party to be charged
with the amendment.

 

28.       Assignment

 

No party may assign any of its rights under
this Agreement without the prior written consent of the other party. Notwithstanding the foregoing, TJC may assign its rights,
interests and duties under this Agreement and all ancillary documents to a third party TJC franchisee (who desires to step in to
the shoes of TJC and complete the transaction contemplated by this Agreement) without the necessity of obtaining any consent of
Seller or Shareholder.

 

29.       No
Third-Party Beneficiaries

 

Nothing in this Agreement shall be considered
to give any person other than the parties any legal or equitable right, claim or remedy under or in respect of this Agreement or
any provision of this Agreement. This Agreement and all of its provisions are for the sole and exclusive benefit of the parties
and their respective successors, permitted assigns, heirs and legal representatives.

 

    	- 18 -

     

    

 

30.       Construction

 

(a)       All
references in this Agreement to “Section” or “Sections” refer to the corresponding section or sections
of this Agreement.

 

(b)       All
words used in this Agreement shall be construed to be of the appropriate gender or number as the context requires.

 

(c)       Unless
otherwise expressly provided, the word “including” does not limit the preceding words or terms.

 

(d)       The
captions of articles and sections of this Agreement are for convenience only and shall not affect the construction or interpretation
of this Agreement.

 

31.       Severability

 

The invalidity or unenforceability of any term
or provision, or part of any term or provision, of this Agreement shall not affect the validity and enforceability of the other
terms and provisions of this Agreement, and this Agreement shall be construed in all respects as if the invalid or unenforceable
term or provision, or part, had been omitted. In the event that any provision of this Agreement is determined by a court of competent
jurisdiction to be unenforceable because it is too broad, such provision shall be interpreted to be only as broad as is enforceable.

 

32.       Counterparts

 

This Agreement may be signed in any number of
counterparts (including by facsimile or portable document format (pdf)), all of which together shall constitute one and the same
instrument.

 

33.       Governing
Law

 

This Agreement shall be governed by the internal
Laws of the State of Georgia, without giving effect to any choice of law provision or rule (whether of the State of Georgia or
any other state) that would cause the laws of any state other than the State of Georgia to govern this Agreement.

 

34.       Binding
Effect

 

This Agreement shall apply to, be binding in
all respects upon and inure to the benefit of parties and their respective heirs, legal representatives, successors and permitted
assigns.

 

 

 

 

[SIGNATURES FOLLOW BELOW]

 

 

 

    	- 19 -

     

    

 

IN WITNESS WHEREOF, the Parties hereto affix their
signatures and execute this Agreement as of the Effective Date.

 

	“Seller”	 	“TJC”
	 	 	 
	TJ of Savannah-Twelve Oaks, LLC, a	 	The Joint Corp., a Delaware corporation
	Georgia limited liability company	 	 
	 	 	 
	By: 	/s/ Allen Meglin	 	By: 	/s/ Peter Holt
	Its: 	CEO	 	Peter Holt, Chief Executive Officer
	 	 	 
	 	 	 
	TJ of Pooler, LLC, a Georgia limited	 	 
	Liability company	 	 
	 	 	 
	By: 	/s/ Allen Meglin	 	 
	Its:	CEO	 	 
	 	 	 
	 	 	 
	TJ of Bluffton, LLC, a Georgia limited	 	 
	Liability company	 	 
	 	 	 
	By: 	/s/ Allen Meglin	 	 
	Its:	CEO	 	 
	 	 	 
	 	 	 
	“Shareholder”	 	 
	 	 	 
	ROBYN MEGLIN	 	ALLEN MEGLIN
	 	 	 
	/s/ Robyn Meglin	 	/s/Allen
Meglin
	Robyn Meglin, individually	 	Allen Meglin, individually

 

 

 

 

 

Signature Page to Asset Purchase Agreement

 

    	- 20 -

     

    

 

ADDENDUM NO. 1 TO THE ASSET AND FRANCHISE AGREEMENT PURCHASE
AGREEMENT 

 

THIS ADDENDUM NO. 1 TO THE ASSET AND FRANCHISE AGREEMENT PURCHASE
AGREEMENT (“Addendum”) is made and entered into on July 23, 2019 (“Effective Date”),
by and between The Joint Corp., a Delaware corporation (“TJC”), TJ of Savannah – Twelve Oaks, LLC, a Georgia
limited liability company (“TJS”), TJ of Pooler, LLC, a Georgia limited liability company (“TJP”),
and TJ of Bluffton, LLC, a Georgia limited liability company (“TJB”) (TJS, TJP and TJB shall collectively be
referred to as the “Seller”), and Robyn Meglin, an individual and Allen Meglin, an individual (collectively,
the “Shareholder”). TJC, Seller, and Shareholder shall at times be collectively referred to as the “Parties.”

 

RECITALS

 

WHEREAS,
the Parties entered into that certain Asset and Franchise Agreement Purchase Agreement on July 15, 2019 (the “Purchase
Agreement”), pursuant to which TJC agreed to purchase Seller’s and Shareholder’s interests in the
“Subject Franchises” and the “Franchise Agreements” (as defined in the Purchase
Agreement), on the terms and conditions set forth in the Purchase Agreement.

 

WHEREAS, TJC has requested that Seller
and Shareholder modify the Agreement, and Seller and Shareholder have agreed to do so upon the terms and conditions set forth herein.

 

NOW, THEREFORE, for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

 

AGREEMENT

 

1.             
Closing Date. Pursuant to Section 5 Closing, of the Purchase Agreement, the “Closing Date”
shall hereinafter be defined as July 17, 2019.

 

MISCELLANEOUS

 

2.       Modification.
This Addendum and the Purchase Agreement when executed constitute the entire agreement and understanding between the Parties with
respect to the subject matter contained herein and therein. Any and all prior agreements and understandings between the Parties
and relating to the subject matter contained in this Addendum and the Purchase Agreement, whether written or verbal, other than
as contained within the executed Addendum and Purchase Agreement, are void and have no force and effect. In order to be binding
between the Parties, any subsequent modifications must be in writing signed by the Parties.

 

3.       Effect
on Agreement. Except as specifically modified or supplemented by this Addendum, all terms, conditions, covenants and agreements
set forth in the Purchase Agreement shall remain in full force and effect.

 

4.       Inconsistency.
In the event of any inconsistency between the Purchase Agreement and this Addendum, this Addendum shall prevail.

 

5.       Counterparts.
This Addendum may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute
but one and the same document.

 

 

 

[Signatures follow below]

 

    	 1 

     

    

 

IN WITNESS WHEREOF, the Parties hereto affix their signatures
and execute this Addendum on the Effective Date.

 

	“Seller”	 	“TJC”
	 	 	 
	TJ of Savannah-Twelve Oaks, LLC, a	 	The Joint Corp., a Delaware corporation
	Georgia limited liability company	 	 
	 	 	 
	By:  	/s/ Allen Meglin	 	By: 	/s/ Peter Holt
	Its: 	CEO	 	Peter Holt, Chief Executive Officer
	 	 	 	 
	TJ of Pooler, LLC, a Georgia limited	 	 	 
	Liability company	 	 	 
	 	 	 	 
	By: 	/s/ Allen Meglin	 	 	 
	Its:	CEO	 	 	 
	 	 	 	 
	TJ of Bluffton, LLC, a Georgia limited	 	 	 
	Liability company	 	 	 
	 	 	 	 
	By: 	/s/ Allen Meglin	 	 	 
	Its: 	CEO	 	 	 
	 	 	 	 	 
	“Shareholder”	 	 	 
	 	 	 	 
	ROBYN MEGLIN	 	ALLEN MEGLIN
	 	 	 	 
	/s/ Robyn Meglin	 	/s/Allen Meglin
	Robyn Meglin, individually	 	Allen Meglin, individually
	 	 	 	 

 

 

 

 

 

2EX-10.1

 Exhibit 10.1 

EMPLOYMENT AGREEMENT 

THIS EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into effective as of 7/22/2019, by and between Jennifer Fall Jung, a
California resident (“Employee”), and Funko, Inc., a Delaware corporation (any of its Affiliates as may employ the Employee from time to time, and any successor(s) thereto, the “Company”). 

RECITALS 
 WHEREAS,
the Company desires to enter into this Agreement with Employee, pursuant to which the Company will employ Employee on the terms and conditions set forth in this Agreement, and Employee desires to be employed by the Company pursuant to the terms
and conditions of this Agreement; 
 WHEREAS, the parties have agreed that Employee will commence full-time employment with the
Company on August 13, 2019 (the “Effective Date”); 
 WHEREAS, prior to the Effective Date, the parties desire for
Employee to provide consulting services to the Company during the period beginning on July 22, 2019 and ending on the Effective Date (the “Consulting Period”), in accordance with the terms set forth on Annex A. 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties
agree as follows: 
 1.        Employment. The Company agrees to employ Employee on the terms
and conditions set forth in this Agreement, and Employee accepts such employment and agrees to perform the services and duties for the Company as herein provided for the period and upon the other terms and conditions set forth in this Agreement.

 2.        Term. Unless earlier terminated pursuant to the terms of Section 7 hereof,
and subject to Employee’s delivery of documentation sufficient to satisfy the requirements of the Immigration Reform and Control Act of 1986, Employee shall be employed by the Company for the period commencing as of the Effective Date and
ending on the third (3rd) anniversary of the Effective Date (the “Initial Term”), subject to automatic renewal periods for up to two additional one (1)-year periods, unless either party
provides the other party with ninety (90) days’ advance written notice prior to the end of the Initial Term or any such renewal period, as applicable, of such party’s intent not to renew (the Initial Term and any such renewal period,
the “Term”). 
 3.        Position and Duties. 

3.01    Title. During the Term, Employee agrees to serve as the Company’s Chief Financial Officer. 

3.02    Location; Duties. During the Term, Employee’s primary workplace shall be the Company’s offices
in Everett, Washington, except for usual and customary travel on the Company’s business. During the Term, Employee agrees to serve the Company, and Employee will faithfully and to the best of her ability discharge the duties associated with her
position of 

  
 1 

 
Chief Financial Officer and will devote her full time during business hours for the Company and to the business and affairs of the Company, its direct and indirect subsidiaries and its
affiliates. Employee hereby confirms that during the Term, she will not render or perform services for any other corporation, firm, entity or person. Employee recognizes that she will be required to travel to perform certain of her duties. Employee
shall report to, and be subject to the direction of, the Company’s Chief Executive Officer, or if determined by the Board of Directors (the “Board”), the Board. During the Term, Employee shall be employed by the Company on a full time
basis. Notwithstanding the foregoing, Employee shall be permitted to participate in, and be involved with, such community, educational, charitable, professional, and religious organizations so long as such participation does not, in the judgment of
the Board interfere with the performance of or create a potential conflict with Employee’s duties hereunder. 

4.        Compensation. 

4.01    Base Salary. During the Term, the Company shall pay to Employee a base annual salary of four hundred
twenty-five thousand dollars ($425,000) (“Base Salary”), which salary shall be paid in accordance with the Company’s normal payroll procedures and policies. 

4.02    Annual Bonus. During the Term, Employee shall be eligible to receive a bonus pursuant to an annual
performance-based incentive compensation program to be established by the Board, with Employee’s annual target to be up to 50% of Employee’s then Base Salary (pro-rated for any partial bonus years
ending during the Term); provided, however, that the Company reserves the right to establish such lesser target if done in good faith and as a result of Company’s legitimate business needs. Notwithstanding the preceding sentence,
Employee’s bonus, if any, may be below (including zero), at, or above, the annual target based upon the achievement of the performance objectives, as determined by the Company in its sole discretion, and payment of any bonus described in this
Section 4.02 shall be according to the established plan and subject to Employee’s continued employment by the Company through the date the bonus is paid pursuant to the annual performance-based incentive compensation program. With respect
to any bonus year during the Term, the Board or a committee thereof may in its discretion establish a maximum payout level, in excess of the annual target, to be payable to Employee to the extent that actual performance exceeds the performance
objectives. 
 4.03    Benefits. During the Term, Employee may participate in all employee benefit plans or
programs of the Company consistent with such plans and programs of the Company. The Company does not guarantee the adoption or continuance of any particular employee benefit plan or program during the Term, and Employee’s participation in any
such plan or program shall be subject to the provisions, rules and regulations applicable thereto. 
 4.04    Equity
Awards. Following the Effective Date, the Employee shall be eligible to be issued equity in an amount targeted at 200% of Employee’s base annual salary. The equity grant shall be a combination of restricted stock units (RSUs) and stock
options, unless otherwise determined by the Board. The RSUs and the stock option award shall vest over four years, with 25% of the RSUs vesting on each of the first four anniversaries of the vesting commencement date, and 25% of the stock option
award vesting on the one-year anniversary of the vesting commencement date with the remaining 75% of such stock option award vesting in thirty-six (36) equal and
cumulative installments on each monthly anniversary thereafter. 

  
 2 

 4.05    Expenses; Contributions. During the Term, the Company
agrees to reimburse all reasonable business expenses incurred by Employee consistent with the Company’s policies regarding reimbursement in the performance of Employee’s duties under this Agreement. 

4.06    Paid Time Off. During the Term, Employee, as a senior member of the leadership team, will not accrue
vacation, it is in effect, unlimited. 
 4.07    Indemnification and Additional Insurance. The Company shall
indemnify Employee with respect to matters relating to Employee’s services as an officer of the Company or any of its affiliates, occurring during the course and scope of Employee’s employment with the Company to the extent required by,
and pursuant to the provisions in the, Delaware law. The Company may also cover Employee under a policy of officers’ and directors’ liability insurance providing coverage that is comparable to that provided now or hereafter to other senior
executives of the Company. 
 4.08    Relocation; Relocation Expenses. Employee shall relocate her primary
residence to a location within fifty (50) miles of the Company’s offices in Everett, Washington by not later than October 15, 2020. Prior to Employee’s permanent relocation to the Everett, Washington area, Employee will be
expected to work from the Company’s offices in Everett, Washington no less than three weeks per month, unless otherwise permitted by the Company. The Company shall pay to Employee a taxable temporary housing allowance of $3,000 per month for
the period beginning on the Effective Date and ending on the first anniversary of the Effective Date (or, if earlier, the date of Employee’s termination). The Company shall also reimburse Employee for up to $20,000 of Employee’s reasonable
and customary expenses related to the relocation of Employee’s primary residence to the Everett, Washington area (the “Moving Allowance”), as well as the costs of forty-five (45) two-way
flights for Employee’s travel from California to Washington in an amount of up to $300 each, in each case subject to the Company’s applicable expense reimbursement policy as may be in effect from time to time. Employee shall be solely
responsible for all taxes arising in connection with the payment of the Moving Allowance, including without limitation any and all federal, state, local and foreign income and employment taxes. If Employee’s employment is terminated by the
Company for Cause or Employee resigns for any reason prior to the first anniversary of the Effective Date, Employee shall be required to reimburse the Company for any portion of the Moving Allowance paid pursuant to this Section 4.08. 

5.        Confidential Information and Proprietary Information. 

5.01    Confidential Information. During the Term and at all times thereafter, Employee shall not divulge, furnish
or make accessible to anyone or use in any way (other than in the ordinary course of the business of the Company or any of its affiliates) any confidential or secret knowledge or information of the Company or any of its affiliates which Employee has
acquired or become acquainted with prior to the termination of the period of her employment by the Company (including employment by the Company or any affiliated companies prior to the date of this Agreement), whether developed by herself or by
others, including, without limitation, any trade secrets, confidential or secret designs, processes, formulae, plans, devices or material (whether or not patented or patentable) directly or indirectly useful in any aspect of the business of the
Company or any of its affiliates, any customer or supplier lists of the Company or any of its 

  
 3 

 
affiliates, any confidential or secret development or research work of the Company or any of its affiliates, or any other confidential information or secret aspect of the business of the Company
or any of its affiliates (collectively, “Confidential Information”). Employee acknowledges that (a) the Company and its affiliates have expended and shall continue to expend substantial amounts of time, money and effort to develop
business strategies, employee and customer relationships and goodwill and build an effective organization, (b) Employee is and shall become familiar with the Company’s and its affiliates’ Confidential Information, including trade
secrets, and that Employee’s services are of special, unique and extraordinary value to the Company and its affiliates, (c) the above-described knowledge or information constitutes a unique and valuable asset of the Company and its
affiliates and the Company and its affiliates have a legitimate business interest and right in protecting its Confidential Information, business strategies, employee and customer relationships and goodwill and (d) any disclosure or other use of
such knowledge or information other than for the sole benefit of the Company and any of its affiliates would be wrongful and would cause irreparable harm to the Company and any of its affiliates. However, the foregoing shall not apply to any
knowledge or information which is now published or which subsequently becomes generally publicly known in the form in which it was obtained from the Company or any of its affiliates, other than as a direct or indirect result of the breach of this
Agreement by Employee. 
 5.02    Proprietary Information. (a) Employee agrees that the results and
proceeds of Employee’s services for the Company or its affiliates (including, but not limited to, any trade secrets, products, services, processes, know-how, designs, developments, innovations, analyses,
drawings, reports, techniques, formulas, methods, developmental or experimental work, improvements, discoveries, inventions, ideas, source and object codes, programs, matters of a literary, musical, dramatic or otherwise creative nature, writings
and other works of authorship) resulting from services performed while an employee of the Company and any works in progress, whether or not patentable or registrable under copyright or similar statutes, that were made, developed, conceived or
reduced to practice or learned by Employee, either alone or jointly with others (collectively, “Inventions”), shall be works-made-for-hire and the Company (or,
if applicable or as directed by the Company or any of its affiliates) shall be deemed the sole owner throughout the universe of any and all trade secret, patent, copyright and other intellectual property rights (collectively, “Proprietary
Rights”) of whatsoever nature therein, whether or not now or hereafter known, existing, contemplated, recognized or developed, with the right to use the same in perpetuity in any manner the Company determines in its sole discretion, without any
further payment to Employee whatsoever. If, for any reason, any of such results and proceeds shall not legally be a work-made-for-hire and/or there are any Proprietary
Rights which do not accrue to the Company (or, as the case may be, any of its affiliates) under the immediately preceding sentence, then Employee hereby irrevocably assigns and agrees to assign any and all of Employee’s right, title and
interest thereto, including any and all Proprietary Rights of whatsoever nature therein, whether or not now or hereafter known, existing, contemplated, recognized or developed, to the Company (or, if applicable or as directed by the Company or any
of its affiliates), and the Company or its affiliates shall have the right to use the same in perpetuity throughout the universe in any manner determined by the Company or such affiliates without any further payment to Employee whatsoever. As to any
Invention that Employee is required to assign, Employee shall promptly and fully disclose to the Company all information known to Employee concerning such Invention. 

  
 4 

 (b) Employee agrees that, from time to time, as may be requested by the Company and at the
Company’s sole cost and expense, Employee shall do any and all things that the Company may reasonably deem useful or desirable to establish or document the Company’s exclusive ownership throughout the United States of America or any other
country of any and all Proprietary Rights in any such Inventions, including the execution of appropriate copyright and/or patent applications or assignments. To the extent Employee has any Proprietary Rights in the Inventions that cannot be assigned
in the manner described above, Employee unconditionally and irrevocably waives the enforcement of such Proprietary Rights. This Section 5.02 is subject to and shall not be deemed to limit, restrict or constitute any waiver by the Company of any
Proprietary Rights of ownership to which the Company may be entitled by operation of law by virtue of the Company’s being Employee’s employer. Employee further agrees that, from time to time, as may be requested by the Company and at the
Company’s sole cost and expense, Employee shall assist the Company in every proper and lawful way to obtain and from time to time enforce Proprietary Rights relating to Inventions in any and all countries. To this end, Employee shall execute,
verify and deliver such documents and perform such other acts (including appearances as a witness) as the Company may reasonably request for use in applying for, obtaining, perfecting, evidencing, sustaining, and enforcing such Proprietary Rights
and the assignment thereof. In addition, Employee shall execute, verify, and deliver assignments of such Proprietary Rights to the Company or its designees. Employee’s obligation to assist the Company with respect to Proprietary Rights relating
to such Inventions in any and all countries shall continue beyond the termination of Employee’s employment with the Company. 
 (c)
Employee hereby waives and quitclaims to the Company any and all claims, of any nature whatsoever, that Employee now or may hereafter have for infringement of any Proprietary Rights assigned hereunder to the Company. 

5.03    Defend Trade Secrets Act. Employee acknowledges that, pursuant to 18 U.S.C. § 1833(b), an
individual may not be held liable under any criminal or civil federal or state trade secret law for disclosure of a trade secret (a) made in confidence to a government official, either directly or indirectly, or to an attorney, solely for the
purpose of reporting or investigating a suspected violation of law or (b) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. Additionally, an individual suing an employer for
retaliation based on the reporting of a suspected violation of law may disclose a trade secret to her or her attorney and use the trade secret information in the court proceeding, so long as any document containing the trade secret is filed under
seal and the individual does not disclose the trade secret except pursuant to court order. 

6.        Non-competition and Non-solicitation Covenants
and Adversarial Restrictions. 
 6.01    Non-competition. Employee
agrees that, during the Term and for twelve months after the termination of Employee’s employment for any reason (the “Non-Compete Period”), Employee shall not, directly or indirectly,
(a) engage in activities or businesses (including without limitation by owning any interest in, managing, controlling, participating in, consulting with, advising, rendering services for, or in any manner engaging in the business of owning,
operating or managing any business) in any geographic location in which the Company, its subsidiaries or Affiliates engage in, whether through selling, distributing, manufacturing, marketing, purchasing, or otherwise, that compete directly or
indirectly with the Company or any 

  
 5 

 
of its subsidiaries or Affiliates (“Competitive Activities”), it being understood that Competitive Activities as of the date hereof include, without limitation, the manufacture,
marketing, license, distribution and sale of licensed pop culture products; or (b) assist any person in any way to do, or attempt to do, anything prohibited by Section 6.01(a) above. Employee acknowledges (i) that the business of the
Company and its affiliates is global in scope and (ii) notwithstanding the jurisdiction of formation or principal office of the Company and its affiliates, or the location of any of their respective executives or employees (including, without
limitation, Employee), it is expected that the Company and its affiliates will have business activities and have valuable business relationships within their respective industries throughout the United States and abroad. 

6.02    Indirect Competition. Employee further agrees that, during the Term and the
Non-Compete Period, she will not, directly or indirectly, assist or encourage any other person in carrying out, direct or indirectly, any activity that would be prohibited by the above provisions of this
Section 6 if such activity were carried out by Employee, either directly or indirectly; and in particular, Employee agrees that she will not, directly or indirectly, induce any employee of the Company to carry out, directly or indirectly, any
such activity. 
 6.03    Non-solicitation. Employee further agrees
that, during the Term and for a period of two years after the termination of her employment (the “Non-Solicitation Period”), she will not, directly or indirectly, employ or hire, or assist or
encourage any other person in seeking to employ or hire, any employee, consultant, advisor or agent of the Company or any of its affiliates or encouraging any such employee, consultant, advisor or agent to discontinue employment with the Company or
any of its affiliates. 
 6.04    Non-Disparagement. Employee agrees not
to disparage the Company, any of its products or practices, or any of its directors, officers, agents, representatives, partners, members, equity holders or affiliates, either orally or in writing, at any time, and the Company shall direct its
directors and officers not to disparage Employee, either orally or in writing, at any time; provided that Employee, the Company and the Company’s directors and officers may confer in confidence with their respective legal representatives and
make truthful statements as required by law, or by governmental, regulatory or self-regulatory investigations or as truthful testimony in connection with any litigation involving Employee and the Company or its affiliates. 

6.05    Enforceability. If a final and non-appealable judicial
determination is made that any of the provisions of this Section 6 constitutes an unreasonable or otherwise unenforceable restriction against Employee, the provisions of this Section 6 will not be rendered void but will be deemed to be
modified to the minimum extent necessary to remain in force and effect for the longest period and largest geographic area that would not constitute such an unreasonable or unenforceable restriction. Moreover, and without limiting the generality of
Section 6, notwithstanding the fact that any provision of this Section 6 is determined to not be enforceable through specific performance, the Company will nevertheless be entitled to recover monetary damages as a result of Employee’s
breach of such provision. 
 6.06    Acknowledgement. Employee acknowledges that Employee has carefully read
this Agreement and has given careful consideration to the restraints imposed upon Employee by this Agreement, and is in full accord as to the necessity of such restraints for the reasonable and proper protection of the Confidential Information,
business strategies, employee and customer 

  
 6 

 
relationships and goodwill of the Company and its subsidiaries and affiliates now existing or to be developed in the future. Employee expressly acknowledges and agrees that each and every
restraint imposed by this Agreement is reasonable with respect to subject matter, time period and geographical area. Employee further acknowledges that although Employee’s compliance with the covenants contained in Sections 5 and 6 may
prevent Employee from earning a livelihood in a business similar to the business of the Company, Employee’s experience and capabilities are such that Employee has other opportunities to earn a livelihood and adequate means of support for
Employee and Employee’s dependents. 
 7.        Termination. 

7.01    Grounds for Termination. Employee’s employment with the Company shall terminate (a) by Employee
for Good Reason, (b) by the Company for Cause, (c) by the Employee without Good Reason, (d) by the Company without Cause, (e) on account of Employee’s death or disability, or (f) by expiration or non-renewal of the Term. Notwithstanding any termination of this Agreement and Employee’s employment by the Company, Employee, in consideration of his employment hereunder to the date of such termination, shall
remain bound by the provisions of this Agreement which specifically relate to periods, activities or obligations upon or subsequent to the termination of Employee’s employment including without limitation the provisions of Sections 5, 6 and 8
hereof. 
 7.02    Cause Defined. Termination of Employee’s employment by the Company for any of the
following reasons shall be deemed termination for “Cause”: (a) gross neglect or willful misconduct by Employee of Employee’s duties or Employee’s willful failure to carry out, or comply with, in any material respect any lawful
and reasonable directive of the Board not inconsistent with the terms of this Agreement; (b) conviction of Employee of, or Employee’s plea of no contest, plea of nolo contendere or imposition of adjudicated probation with respect to, any
felony or crime involving moral turpitude or Employee’s indictment for any felony or crime involving moral turpitude; provided if Employee is terminated following such indictment but is found not guilty or the indictment is dismissed, the
termination shall be deemed to be a termination without Cause; (c) Employee’s habitual unlawful use (including being under the influence) or possession of illegal drugs on the Company’s premises or while performing Employee’s
duties and responsibilities under this Agreement; (d) Employee’s commission at any time of any act of fraud, embezzlement, misappropriation, material misconduct, or breach of fiduciary duty against the Company (or any predecessor thereto
or successor thereof); or (e) Employee’s material breach of the restrictive covenants in Sections 5 and 6 hereof or any other confidentiality, non-compete or
non-solicitation covenant; provided that the Company shall provide Employee with fifteen (15) days prior written notice before any such termination in (a) or (e) (other than to the extent that (a)
relates to any fraud or intentional misconduct) with an opportunity to meet with the Board and discuss or cure any such alleged violation. 

7.03    Good Reason Defined. Termination of Employee’s employment by Employee for any of the following
reasons shall be deemed for “Good Reason”: (a) a material adverse change in Employee’s title or reporting line or material duties, authorities or responsibilities, as determined by the Board (provided, that Employee’s title,
reporting line or material duties, authorities or responsibilities shall not be deemed to be materially adversely changed solely because the Company (or its successor) is no longer an independently operated

  
 7 

 
public entity or becomes a subsidiary of another entity); (b) a material breach by the Company of any material provision of this Agreement; (c) a material reduction of Employee’s Base
Salary or benefits or target bonus opportunity (other than such a reduction that is generally consistent with a general reduction affecting the Company’s other similarly situated executives); (d) failure by the Company to pay any portion of
Employee’s earned Base Salary or bonus; or (e) the Company’s requiring Employee to be headquartered at any office or location more than 50 miles from Everett, Washington, provided that in the case of all the above events, Employee may
not resign from her employment for Good Reason unless she provides the Company written notice within 90 days after the initial occurrence of the event and at least 60 days prior to the date of termination, and the Company has not corrected the event
prior to the date of termination. 
 7.04    Surrender of Records and Property. Upon termination of her
employment with the Company for any reason, Employee shall deliver promptly to the Company all records, manuals, books, blank forms, documents, letters, memoranda, notes, notebooks, reports, data, tables, calculations or copies thereof, which are
the property of the Company or any of its Affiliates or which relate in any way to the business, products, practices or techniques of the Company or any of its affiliates, and all other property, trade secrets and confidential information of the
Company or any of its affiliates, including, but not limited to, all documents which in whole or in part contain any trade secrets or confidential information of the Company or any of its Affiliates, which in any of these cases are in her possession
or under her control. 
 7.05    Payments Upon Termination. (a) If this Agreement is terminated for any
reason set forth in Section 7, then Employee shall be entitled to receive (i) her earned but unpaid Base Salary through the date of the termination, (ii) any accrued and unused vacation or paid time off through the date of
termination, (iii) reimbursement of any business expenses incurred in the ordinary course of business through the date of termination that have not yet been reimbursed pursuant to Section 4.05, and (iv) any earned but unpaid bonus
pursuant to Section 4.02 for the calendar year prior to termination to the extent not yet paid when due (together, the “Accrued Compensation”). 

(b) If Employee’s employment is terminated pursuant to Section 7.01(a) or (d) and provided that Employee shall have executed
and delivered to the Company the a release of claims substantially in the form attached hereto as Exhibit A (the “Release”) and any period for rescission of such Release shall have expired without Employee having rescinding such
Release, in addition to the Accrued Compensation, Employee shall be entitled to receive either (i) if Employee has been an employee of the Company or its affiliates for more than six continuous months, but less than two years, following the
Effective Date but prior to the date of termination, continuation of the Base Salary for up to six (6) months from the date of termination, payable in six equal monthly installments in accordance with the Company’s regular payroll
practices, and reimbursement, up to a maximum of six (6) months, of the Company-paid portion of premium payments, as if Employee had remained an active employee, for any COBRA coverage Employee elects, if any; or (ii) if Employee has been
an employee of the Company or its affiliates for at least two years following the Effective Date but prior to the date of termination, an amount equal to continuation of the Base Salary for up to twelve (12) months from the date of termination,
payable in twelve equal monthly installments in accordance with the Company’s regular payroll practices, and reimbursement, up to a maximum of twelve (12) months, of the Company-paid portion of premium payments, as if Employee had remained
an active employee, for any COBRA coverage Employee elects, if any. 

  
 8 

 7.06    Termination in Connection with a Change in Control.
(a) Notwithstanding the foregoing, if Employee’s employment is terminated pursuant to Section 7.01(a) or (d) on or within twelve (12) months following a Change in Control, and provided that Employee shall have executed and
delivered to the Company the Release and any period for rescission of such Release shall have expired without Employee having rescinded such Release, in addition to the Accrued Compensation but in lieu of any payments or benefits pursuant to
Section 7.05(b), Employee shall be entitled to receive an amount equal to continuation of the Base Salary for twelve (12) months from the date of termination, payable in twelve equal monthly installments in accordance with the
Company’s regular payroll practices, and reimbursement, up to a maximum of twelve (12) months, of the Company-paid portion of premium payments, as if Employee had remained an active employee, for any COBRA coverage Employee elects, if any.

 (b) For purposes of this Agreement, a “Change in Control” shall mean, following the Effective Date, (i) a change in
ownership or control of Funko, Inc. effected through a transaction or series of transactions (other than an offering of common stock or units to the general public through a registration statement filed with the Securities and Exchange Commission)
whereby any “person” or related “group” of “persons” (as such terms are used in Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (other than Funko, Inc., any
of their respective subsidiaries, ACON Equity Management, L.L.C., ACON Equity GenPar, L.L.C., any other entity owned or controlled by one or more of the managing members or managers of ACON Equity Management, L.L.C. or ACON Equity GenPar, L.L.C.
(collectively, “ACON”), any employee benefit plan maintained by Funko, Inc. or any of their respective subsidiaries, or a “person” that, prior to such transaction, directly or indirectly controls, is controlled by, or is under
common control with, Funko, Inc. or ACON), directly or indirectly acquires beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) of securities of Funko, Inc. possessing more than fifty
percent (50%) of the total combined voting power of Funko, Inc.’s securities outstanding immediately after such acquisition; (ii) the majority of the members of the Board are replaced during any twelve (12) month period by directors
whose appointment or election is not endorsed by a majority of the Board, as applicable, prior to the date of such appointment or election; or (iii) a sale or other disposition of all or substantially all of the Company’s assets in any
single transaction or series of related transactions. 
 7.07    Mitigation. The amounts set forth in
Section 7.05(b) and Section 7.06(a) shall be reduced by any amount Employee receives as compensation from a subsequent employer during the severance period. 

7.08    Termination of Offices Held. Upon termination of her employment with the Company for any reason, Employee
agrees that she shall immediately resign from any offices she holds with the Company or any of its affiliates, including any boards of directors or boards of managers. 

  
 9 

 8.        Miscellaneous. 

8.01    Governing Law: Venue. This Agreement is made under and shall be governed by and construed in accordance
with the laws of the State of Washington, regardless of the laws that might otherwise govern under applicable principles of conflict of law. 

8.02    Prior Agreements. This Agreement contains the entire agreement of the parties relating to the subject
matter hereof and supersedes all prior agreements and understandings with respect to such subject matter, including, without limitation, that certain offer letter provided to Employee on July 2, 2019, and the parties hereto have made no
agreement, representations or warranties relating to the subject matter of this Agreement which are not set forth herein. 

8.03    Withholding Taxes. The Company may withhold from any payments or benefits payable under this Agreement all
federal, state, city or other taxes as shall be required pursuant to any law or governmental regulation or ruling. 

8.04    Amendments. No amendments or modifications of this Agreement shall be deemed effective unless made in
writing and signed by the parties hereto. 
 8.05    No Waiver. No term or condition of this Agreement shall be
deemed to have been waived, nor shall there by an estoppel to enforce any provisions of this Agreement, except by a statement in writing signed by the party against whom enforcement of the waiver or estoppel is sought. Any written waiver shall not
be deemed a continuing waiver unless specifically stated, shall operate only as to the specific term or condition waived and shall not constitute a waiver of such term or condition for the future or as to any act other than that specifically waived

 8.06    Section 409A.    (a) For purposes of this Agreement,
“Section 409A” means Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and the Treasury Regulations promulgated thereunder (and such other Treasury or Internal Revenue Service guidance) as in
effect from time to time. The parties intend that any amounts payable hereunder that could constitute “deferred compensation” within the meaning of Section 409A will be compliant with Section 409A or exempt from
Section 409A. Notwithstanding the foregoing, Employee shall be solely responsible and liable for the satisfaction of all taxes and penalties that may be imposed on or for the account of Employee in connection with this Agreement (including any
taxes and penalties under Section 409A), and neither the Company nor any of its Affiliates shall have any obligation to indemnify or otherwise hold Employee (or any beneficiary) harmless from any or all of such taxes or penalties. No provision
of this Agreement shall be interpreted or construed to transfer any liability for failure to comply with the requirements of Section 409A from the Employee or any other individual to the Company or any of its affiliates, employees or agents.

 (b) Notwithstanding anything in this Agreement to the contrary, the following special rule shall apply, if and to the extent required by
Section 409A, in the event that (i) Employee is deemed to be a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code, (ii) amounts or benefits under this Agreement or any other program, plan or
arrangement of the Company or a controlled group affiliate thereof are due or payable on account of “separation from service” within the meaning of Treasury Regulations Section 1.409A-l(h)

  
 10 

 
and (iii) Employee is employed by a public company or a controlled group affiliate thereof: no payments hereunder that are “deferred compensation” subject to Section 409A
shall be made to Employee prior to the date that is six (6) months after the date of Employee’s separation from service or, if earlier, Employee’s date of death; following any applicable six (6) month delay, all such delayed
payments will be paid in a single lump sum on the earliest permissible payment date, without interest. 
 (c) Each payment made under this
Agreement (including each separate installment payment in the case of a series of installment payments) shall be deemed to be a separate payment for purposes of Section 409A. Amounts payable under this Agreement shall be deemed not to be a
“deferral of compensation” subject to Section 409A to the extent provided in the exceptions in Treasury Regulation Sections 1.409A-1(b)(4) (“short-term deferrals”) and (b)(9)
(“separation pay plans,” including the exception under subparagraph (iii)) and other applicable provisions of Section 409A. For purposes of this Agreement, with respect to payments of any amounts that are considered to be
“deferred compensation” subject to Section 409A, references to “termination of employment,” “termination,” or words and phrases of similar import, shall be deemed to refer to Employee’s “separation from
service” as defined in Section 409A and shall be interpreted and applied in a manner that is consistent with the requirements of Section 409A. 

(d) Notwithstanding anything to the contrary in this Agreement, any payment or benefit under this Agreement or otherwise that is exempt from
Section 409A pursuant to Treasury Regulation Section 1.409A-l(b)(9)(v)(A) or (C) (relating to certain reimbursements and in-kind benefits) shall be paid or
provided to Employee only to the extent that the expenses are not incurred, or the benefits are not provided, beyond the last day of the second calendar year following the calendar year in which Employee’s “separation from service”
occurs; and provided further that such expenses are reimbursed no later than the last day of the third calendar year following the calendar year in which Employee’s “separation from service” occurs. To the extent any indemnification
payment, expense reimbursement, or the provision of any in-kind benefit is determined to be subject to Section 409A (and not exempt pursuant to the prior sentence or otherwise), the amount of any such
indemnification payment or expenses eligible for reimbursement, or the provision of any in-kind benefit, in one calendar year shall not affect the indemnification payment or provision of in-kind benefits or expenses eligible for reimbursement in any other calendar year (except for any life-time or other aggregate limitation applicable to medical expenses), and in no event shall any indemnification
payment or expenses be reimbursed after the last day of the calendar year following the calendar year in which Employee incurred such indemnification payment or expenses, and in no event shall any right to indemnification payment or reimbursement or
the provision of any in-kind benefit be subject to liquidation or exchange for another benefit. 

(e) Notwithstanding anything to the contrary in this Agreement, to the extent that any payments due under this Agreement as a result of the
Employee’s termination of employment with the Company are subject to the Employee’s execution and delivery and non-revocation of the Release, (i) no such payments shall be made on or prior to
the sixtieth (60th) day immediately following Employee’s date of termination (the “Release Period”), (ii) the Company shall deliver the Release to Employee no later than seven
(7) days immediately following Employee’s date of termination, (iii) if, as of the Release Expiration Date, Employee has failed to execute the Release or has timely revoked her acceptance of the Release thereafter, Employee shall not
be entitled to 

  
 11 

 
any payments or benefits otherwise conditioned on the Release, and (iv) if, as of the Release Expiration Date, Employee has executed the Release and has not revoked her acceptance of the
Release thereafter, any such payments that are delayed pursuant to this Section 8.06(e) shall be paid in a lump sum on the first regularly scheduled payroll date following the expiration of the Release Period, without interest. For purposes of
this Section 8.06(e), “Release Expiration Date” shall mean the date that is twenty-one (21) days following the date upon which the Company timely delivers the Release to Employee, or, in
the event that Employee’s termination of employment is “in connection with an exit incentive or other employment termination program” (as such phrase is defined in the Age Discrimination in Employment Act of 1967), the date that is
forty-five (45) days following such delivery date. 
 8.07    Compensation Recovery Policy. Employee
acknowledges and agrees that, to the extent the Company adopts any claw-back or similar policy pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act or otherwise, and any rules and regulations promulgated thereunder, she shall
take all action necessary or appropriate to comply with such policy (including, without limitation, entering into any further agreements, amendments or policies necessary or appropriate to implement and/or enforce such policy with respect to past,
present and future compensation, as appropriate). 
 8.08    Severability. To the extent any provision of this
Agreement shall be invalid or unenforceable, it shall be considered deleted here from, and the remainder of such provision and of this Agreement shall be unaffected and shall continue in full force and effect. In furtherance and not in limitation of
the foregoing, should the duration or geographical extent of, or business activities covered by, any provision of this Agreement be in excess of that which is valid and enforceable under applicable law, then such provision shall be construed to
cover only that duration, extent or activities which may validly and enforceably be covered. Employee acknowledges the uncertainty of the law in this respect and expressly stipulates that this Agreement be given the construction which renders its
provisions valid and enforceable to the maximum extent (not exceeding its express terms) possible under applicable law. 

8.09    Assignment. The Company may transfer and assign this Agreement and the Company’s rights and
obligations hereunder to another entity that is substantially comparable to the Company in its financial strength and ability to perform the Company’s obligations under this Agreement. After any such assignment by the Company, the Company shall
be discharged from all further liability hereunder and such assignee shall thereafter be deemed to be the Company for the purposes of all provisions of this Agreement including this Section 8. Neither this Agreement nor the rights or
obligations hereunder of the parties hereto shall be transferable or assignable by Employee, except in accordance with the laws of descent and distribution. 

8.10    Injunctive Relief. Employee agrees that it would be difficult to compensate the Company fully for damages
for any violation of the provisions of this Agreement, including without limitation the provisions of Sections 5 and 6. Accordingly, Employee specifically agrees that the Company shall be entitled to temporary and permanent injunctive relief to
enforce the provisions of this Agreement and that such relief may be granted without the necessity of proving actual damages. This provision with respect to injunctive relief shall not, however, diminish the right of the Company to claim and recover
damages in addition to injunctive relief. 

  
 12 

 8.11    Notices. Any notice, payment, demand or communication
required or permitted to be given by the provisions of this Agreement shall be deemed to have been effectively given and received on the date personally delivered to the respective party to whom it is directed, or five (5) days after the date
when deposited by registered or certified mail, with postage and charges prepaid and addressed to such party at its address below its signature. Any party may change its address by delivering a written change of address to all of the other parties
in the manner set forth in this Section 8.11. 
 8.12    Section 280G. Notwithstanding any other provision
of this Agreement or any other plan, arrangement, or agreement to the contrary, if any of the payments or benefits provided or to be provided by the Company or its affiliates to Employee or for Employee’s benefit pursuant to the terms of this
Agreement or otherwise (“Covered Payments”) constitute parachute payments within the meaning of Section 280G of the Code (such payments, the “Parachute Payments”) and would, but for this Section 8.12, be subject to the
excise tax imposed under Section 4999 of the Code (or any successor provision thereto) or any similar tax imposed by state or local law or any interest or penalties with respect to such taxes (collectively, the “Excise Tax”), or not
be deductible under Section 280G of the Code, then such Covered Payments shall be reduced to the minimum extent necessary to ensure that no portion of the Covered Payments is subject to the Excise Tax. The Covered Payments shall be reduced in a
manner that maximizes Employee’s economic position. In applying this principle, the reduction shall be made in a manner consistent with the requirements of Section 409A, to the extent applicable, and where two or more economically
equivalent amounts are subject to reduction but payable at different times, such amounts payable at the later time shall be reduced first but not below zero. 

[Signatures on following page] 

  
 13 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date set forth
in the first paragraph. 
  

	
	
	

  

			
	FUNKO, INC.
		
	By:	 	 /s/ Brian Mariotti

		 	Name: Brian Mariotti
		 	Title: CEO
	
	 /s/ Jennifer Fall Jung

	Jennifer Fall Jung

  
  
  

 

  
 [Signature Page to the
Employment Agreement] 

 Exhibit A 

WAIVER AND RELEASE OF CLAIMS AGREEMENT 

In exchange for the severance payments and benefits provided to me pursuant to Section 7.05 and 7.06 (collectively, the “Severance
Benefits”) of that certain Employment Agreement, dated as of [                ], by and among Funko, Inc. (“Company”) and Joseph Sansone (the
“Employee”) (the “Employment Agreement”), the Employee freely and voluntarily agrees to enter into and be bound by this Waiver and Release of Claims Agreement (this “Release”). 

1.        General Release. The Employee, on her own behalf and on behalf of her spouse, child or
children (if any), heirs, personal representative, executors, administrators, successors, assigns and anyone else claiming through her (the “Releasors”), hereby releases and discharges forever Funko, Inc., and its affiliates, and
each of their respective past, present or future parent, affiliated, related, and subsidiary entities and each of their respective past, present or future directors, officers, employees, trustees, agents, attorneys, administrators, plans, plan
administrators, insurers, equity holders, members, representatives, predecessors, successors and assigns, and all Persons acting by, through, under or in concert with them (hereinafter collectively referred to as the “Released
Parties”), from and against all liabilities, claims, demands, liens, causes of action, charges, suits, complaints, grievances, contracts, agreements, promises, obligations, costs, losses, damages, injuries, attorneys’ fees and other
legal responsibilities (collectively referred to as “Claims”), of any form whatsoever (whether or not relating to Employee’s employment with the Company), including, but not limited to, any claims in law, equity, contract or
tort, claims under any policy, agreement, understanding or promise, written or oral, formal or informal, between the Employee and the Company or any of the other Released Parties, and any claims under the Civil Rights Act of 1866, the Civil Rights
Act of 1871, the Civil Rights Act of 1964, the Americans With Disabilities Act of 1990, the Age Discrimination in Employment Act of 1967 (“ADEA”), the Sarbanes-Oxley Act of 2002, the Securities Act of 1933, the Securities Exchange
Act of 1934 (the “Exchange Act”), the Employee Retirement Income Security Act of 1974, the Rehabilitation Act of 1973, the Family and Medical Leave Act of 1993, the Genetic Information Nondiscrimination Act of 2008, the Worker
Adjustment and Retraining Notification Act of 1988, the Delaware Discrimination in Employment Act, the Delaware Persons with Disabilities Employment Protection Act, the Delaware Whistleblowers’ Protection Act, the Delaware Wage Payment and
Collection Act, the Delaware Fair Employment Practices Act, Delaware’s social media law, the Washington Industrial Welfare Act, the Washington Minimum Wage Act, the Washington Wage Payment Act, the Washington Wage Rebate Act, the Washington Law
Against Discrimination and the Washington Leave Law, as each may have been amended from time to time, or any other federal, state or local statute, regulation, law, rule, ordinance or constitution, or common law, whether known or unknown,
unforeseen, unanticipated, unsuspected or latent, that the Employee or any of the Releasors now possess or have a right to, or have at any time heretofore owned or held, or may at any time own or hold by reason of any matter or thing arising from
any cause whatsoever prior to the date of execution of this Release, and without limiting the generality of the foregoing, from all claims, demands and causes of action based upon, relating to, or arising out of: (a) the Employment Agreement;
(b) the Employee’s employment or other relationship with any of the Released Parties or the termination thereof; and (c) the Employee’s status as a holder of securities of any of the Released Parties.

 
This Release includes, but is not limited to, all wrongful termination and “constructive discharge” claims, all discrimination claims, all claims relating to any contracts of
employment, whether express or implied, any covenant of good faith and fair dealing, whether express or implied, and any tort of any nature. This Release is for any relief, no matter how denominated, including but not limited to wages, back pay,
front pay, benefits, compensatory, liquidated or punitive damages and attorneys’ fees. The Employee acknowledges and reaffirms Employee’s obligations under the Employment Agreement with the Company dated
[                ], a signed copy of which is attached hereto as Exhibit A, including but not limited to Sections 5 and 6 thereof. 

2.        Covenant Not To Sue. The Employee represents and covenants that she has not
filed, initiated or caused to be filed or initiated any Claim, charge, suit, complaint, grievance, action, cause of action or proceeding against the Company or any of other the Released Parties. Except to the extent that such waiver is precluded by
law, the Employee further promises and agrees that she will not file, initiate or cause to be filed or initiated any Claim, charge, suit, complaint, grievance, action, cause of action or proceeding based upon, arising out of or relating to any Claim
released hereunder, nor shall the Employee participate, assist or cooperate in any Claim, charge, suit, complaint, grievance, action, cause of action or proceeding regarding any of the Released Parties relating to any Claims released hereunder,
whether before a court or administrative agency or otherwise, unless required to do so by law. 

3.        Exclusions. Notwithstanding the foregoing, the Employee does not release her rights
to receive the Severance Benefits or any right that may not be released by private agreement. In addition, this Release will not prevent the Employee from (i) filing a charge or complaint with the Equal Employment Opportunity Commission, the
National Labor Relations Board, the Occupational Safety and Health Administration, the Securities and Exchange Commission or any other federal, state or local governmental agency or commission (“Government Agencies”) or
(ii) reporting possible violations of federal law or regulation to, otherwise communicating with or participating in any investigation or proceeding that may be conducted by, or providing documents and other information, without notice to the
Company, to, any Governmental Agency or entity, including in accordance with the provisions of and rules promulgated under Section 21F of the Exchange Act or Section 806 of the Sarbanes-Oxley Act of 2002, as each may have been amended from
time to time, or any other whistleblower protection provisions of state or federal law or regulation. This Agreement does not limit Employee’s right to receive an award for information provided to any Government Agencies; provided,
however, that the Employee acknowledges and agrees that any Claim by her, or brought on her behalf, for damages in connection with such a charge or investigation filed with the Equal Employment Opportunity Commission would be and hereby is
barred. 
 4.        No Assignment. The Employee represents and warrants that she has made
no assignment or other transfer, and covenants that she will make no assignment or other transfer, of any interest in any Claim that she may have against any of the Released Parties. 

5.        Indemnification of Released Parties. The Employee agrees to indemnify and hold
harmless the Released Parties, and each of them, against any loss, claim, demand, damage, expenses or any other liability whatsoever, including reasonable attorneys’ fees and costs, resulting from: (i) any breach of this Release by her
successors in interest; (ii) any assignment or transfer, or attempted assignment or transfer, of any Claims released hereunder; or (iii) any action or proceeding brought by her successors in interest, if such action or proceeding arises
out of, is based upon, or is related to any Claims released hereunder. This indemnity does not require payment as a condition precedent to recovery by any of the Released Parties. 

 6.        Acknowledgments. The Employee
acknowledges that the Company delivered this Release to her on [                ]. The Employee agrees that the Company has advised her to consult with an attorney
before executing this Release. The Employee agrees that she has had the opportunity to consult with counsel, if he chose to do so, and that the Employee has had a sufficient and reasonable amount of time to read and consider this Release before
executing it. The Employee acknowledges that he is responsible for any costs and fees resulting from his attorney reviewing this Release. The Employee agrees that she has carefully read this Release and knows its contents, and that she signs this
Release voluntarily, with a full understanding of its significance, and intending to be bound by its terms. The Employee acknowledges that the provision of the Severance Benefits is in exchange for the promises in the Release and is not normally
available under Company policy to employees who resign or are terminated by the Company, and that, but for her execution of this Release, she would not be entitled to receive the Severance Benefits. The Employee further acknowledges that the
provision of the Severance Benefits does not constitute an admission by the Released Parties of liability or of violation of any applicable law or regulation. The Company and its affiliates expressly deny any liability or alleged violation and state
that the Severance Benefits are being provided solely for the purpose of compromising any and all claims of the Employee without the cost and burden of litigation. 

7.        ADEA Provisions. The Employee understands that this Release includes a release of
claims arising under ADEA. The Employee acknowledges and agrees that she has had at least 21 days after the date of her receipt of this Release (such period, the “Consideration Period”) to review this Release and consider its terms
before signing this Release and that the Consideration Period will not be affected or extended by any changes, whether material or immaterial, that might be made to this Release. The Employee further acknowledges and agrees that she understands that
she may use as much or all of such 21-day period as she wishes before signing, and warrants that she has done so. The Employee may revoke and cancel this Release in writing at any time within seven days after
her execution of this Release (such seven-day period, the “Revocation Period”) by providing notice of revocation to
[                ]. This Release shall not become effective and enforceable until after the expiration of the Revocation Period; after such time, if there has been no
revocation, this Release shall immediately be fully effective and enforceable. 

8.        Consequences of Breach or Revocation. The Employee agrees that, notwithstanding
anything to the contrary in this Release, in the event that she breaches any of the terms of the Release, or revokes the Release pursuant to Section 7, she shall forfeit the Severance Benefits and reimburse the Company for any portion of the
Severance Benefits that have already been paid, and, in the event of such a breach, she shall reimburse the Company for any expenses or damages incurred as a result of such breach. 

9.        Severability. If any provision of the Release is declared invalid or unenforceable,
the remaining portions of the Release shall not be affected thereby and shall be enforced. 

10.        Governing Law: Venue. This Agreement is made under and shall be governed by and
construed in accordance with the laws of the State of Delaware. 

 IN WITNESS WHEREOF, the undersigned has signed and executed this Release on
the date set forth below as an expression of her intent to be bound by the foregoing terms of this Release. 
  

			
	
	 
		
	Date:	 	 

 Annex A 

Duties: During the Consulting Period, Jennifer Fall Jung will provide the following consulting services to the Company: Provide
transitional functional and business leadership through financial acumen. Assess financial system and process, and well as accounting and finance team capability, as well as such other items as are reasonably requested by the Board from time to time
(the “Services”). Ms. Fall Jung shall not be required to provide more than 40 hours of service in any week. 
 Term:
The Consulting Period shall commence on July 22, 2019 and end on the Effective Date, unless earlier terminated as provided below. 

Consulting Fees/Compensation: In consideration for Ms. Fall Jung’s services during the Consulting Period and agreement to
commence full-time employment with the Company on the Effective Date, Ms. Fall Jung shall receive the following compensation: $25,000 for the Consulting Period. Ms. Fall Jung will submit invoices for completed Services to the Company in a
form satisfactory to the Company within 30 days of completion of the Services covered by such invoice. 
 Expense Reimbursement:
Ms. Fall Jung shall be entitled to reimbursement of reasonable and documented business expenses in connection with providing the Services during the Consulting Period, subject to prior written approval by the Board. 

Termination: Either party may terminate the Consulting Period for any reason upon ten (10) days’ advance written notice to
the other party. In the event the Consulting Period is terminated, Ms. Fall Jung will be paid for all work performed through the date of termination. 

Independent Contractor: During the Consulting Period, Ms. Fall Jung’s relationship with the Company will be that of an
independent contractor and nothing in this Agreement, including without limitation this Annex A, should be construed to create a partnership, joint venture, or employer-employee relationship. Ms. Fall Jung is not the agent of the Company
and is not authorized to make any representation, warranty, contract, or commitment on behalf of the Company. As an independent contractor, Ms. Fall Jung will not be entitled to participate in the Company’s employee benefit plans during
the Consulting Period unless otherwise required by applicable law. Ms. Fall Jung will be solely responsible for all tax returns and payments required to be filed with or made to any federal, state or local tax authority with respect to
Ms. Fall Jung’s performance of the Services and receipt of compensation therefor. Because Ms. Fall Jung will be an independent contractor, the Company will not withhold or make payments for social security, make unemployment insurance
or disability insurance contributions, or obtain worker’s compensation insurance on Ms. Fall Jung’s behalf (or for any person performing Services on behalf of Ms. Fall Jung, if applicable) during the Consulting Period.
Ms. Fall Jung agrees to accept exclusive liability for complying with all applicable state and federal laws governing self- employed individuals, including obligations such as payment of taxes, social security, disability and other
contributions based on fees paid to Ms. Fall Jung hereunder. 
 Restrictive Covenants: Ms. Fall Jung shall be bound by the
confidentiality and non-solicitation provisions as set forth in Sections 5.01-5.03 and Section 6.03.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00298-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00298-of-00352.parquet"}]]