Document:

EXHIBIT
10.1

 

Sonic
Capital LLC, Sonic Industries LLC, America’s Drive-In Brand Properties LLC, America’s Drive-In Restaurants LLC, SRI
Real Estate Holding LLC, SRI Real Estate Properties LLC

 

Series
2018-1 4.026% Fixed Rate Senior Secured Notes, Class A-2

 

PURCHASE
AGREEMENT

 

January 23,
2018

 

Guggenheim
Securities, LLC

as the Initial Purchaser

c/o Guggenheim Securities, LLC

330 Madison Avenue

New York, New York 10017

 

Ladies and Gentlemen:

 

Sonic
Capital LLC, a Delaware limited liability company (the “Master Issuer”), Sonic Industries LLC, a Delaware
limited liability company (the “Franchise Assets Holder”), America’s Drive-In Brand Properties
LLC, a Kansas limited liability company (the “IP Holder”), America’s Drive-In Restaurants LLC,
a Delaware limited liability company (“ADR”), SRI Real Estate Holding LLC, a Delaware limited liability
company (the “SRI Real Estate Holdco”) and SRI Real Estate Properties LLC, a Delaware limited liability
company (the “SRI Real Estate Assets Holder” and together with the Master Issuer, the Franchise Assets
Holder, the IP Holder, ADR and the SRI Real Estate Holdco, the “Co-Issuers”), propose, upon the terms
and conditions stated herein, to issue and sell to Guggenheim Securities, LLC, as initial purchaser (the “Initial Purchaser”),
a series of fixed rate senior secured notes, the Series 2018-1 4.026% Fixed Rate Senior Secured Notes, Class A-2 Notes (the
“Series 2018-1 Class A-2 Notes” or the “Offered Notes”), in an aggregate principal
amount of $170,000,000.

 

The
Offered Notes (i) will have terms and provisions that are summarized in the Pricing Disclosure Package (as defined below) and (ii)
are to be issued pursuant to the Base Indenture, dated as of May 20, 2011 (the “Initial Closing Date”)
(as amended and supplemented as of the date hereof, the “Base Indenture”), and the Series 2018-1 Supplement
thereto (the “Series 2018-1 Supplement” and, together with the Base Indenture, the Series 2013-1 Supplement
thereto, dated as of July 18, 2013, and the Series 2016-1 Supplement thereto, dated as of May 17, 2016, the “Indenture”),
to be dated as of the Closing Date, in each case entered into by and among the Co-Issuers and Citibank, N.A., as trustee (in such
capacity, the “Trustee”) and as securities intermediary. The Co-Issuers’ obligations under the
Offered Notes will be irrevocably and unconditionally guaranteed (the “Guarantee”) by Sonic Franchising
LLC, a Delaware limited liability company (the “Guarantor” and, together with the Co-Issuers, the “Securitization
Entities” and each, a “Securitization Entity”), pursuant to a Guarantee and Collateral
Agreement, dated May 20, 2011, by and among the Guarantor and the Trustee (the “Guarantee and Collateral Agreement”).
This Agreement confirms the agreement of each the Sonic Parties

    	 

    	

    

(as
defined below) with regard to the purchase of the Offered Notes from the Co-Issuers by the Initial Purchaser.

 

For
purposes of this Agreement, “Sonic” shall mean Sonic Corp., a Delaware corporation, “SRI”
shall mean Sonic Restaurants, Inc., an Oklahoma corporation, “Parent Companies” shall mean, collectively,
Sonic and SRI, and “Sonic Parties” shall mean, collectively, the Parent Companies, Sonic Industries Services
Inc., an Oklahoma corporation, as manager (the “Manager”), and the Securitization Entities.

 

For
purposes of this Agreement, capitalized terms used but not defined herein shall have the meanings given to such terms in the “Certain
Definitions” section of the Pricing Disclosure Package (as defined below).

 

1. Purchase
and Resale of the Offered Notes. The Offered Notes will be offered and sold by the Co-Issuers to the Initial
Purchaser without registration under the Securities Act of 1933, as amended (the “1933 Act”), in
reliance on an exemption pursuant to Section 4(a)(2) under the 1933 Act. The Sonic Parties have prepared (i) a preliminary
offering memorandum, dated January 16, 2018 (as amended or supplemented as of the Applicable Time (as defined below), the
“Preliminary Offering Memorandum”) setting forth information regarding the Sonic Parties and the
Offered Notes, (ii) the Investor Presentation attached hereto as Exhibit 1, (iii) a pricing term sheet substantially in the
form attached hereto as Schedule II (the “Pricing Term Sheet”) setting forth the terms of the
Offered Notes and certain other information omitted from the Preliminary Offering Memorandum and (iv) a final offering
memorandum to be dated prior to the Closing Date (as amended or supplemented, together with the Investor Presentation, the
“Final Offering Memorandum”), setting forth information regarding the Sonic Parties
and the Offered Notes. The Preliminary Offering Memorandum, the Pricing Term Sheet and the Investor Presentation are
collectively referred to as the “Pricing Disclosure Package”. The Sonic Parties hereby confirm that
they have authorized the use of the Pricing Disclosure Package, the documents listed on Schedule III hereto (such
documents, the “Schedule III Documents”) and the Final Offering Memorandum in connection with the
offering and resale of the Offered Notes by the Initial Purchaser. “Applicable Time” means
11:34 A.M. (New York City time) on the date of this Agreement.

 

All
references in this Agreement to the Preliminary Offering Memorandum, the Pricing Disclosure Package or the Final Offering Memorandum
include, unless expressly stated otherwise, all documents, financial statements and schedules and other information contained,
incorporated by reference or deemed incorporated by reference therein (and references in this Agreement to such information being
“contained,” “included” or “stated” (and other references of like import) in the Preliminary
Offering Memorandum, the Pricing Disclosure Package or the Final Offering Memorandum shall be deemed to mean all such information
contained, incorporated by reference or deemed incorporated by reference therein, to the extent such information has not been superseded
or modified by other information contained, incorporated by reference or deemed incorporated by reference therein). All documents
filed (but not furnished to the Initial Purchaser, unless such furnished document is expressly incorporated by reference in the
Preliminary Offering Memorandum, the Pricing Disclosure Package or the Final Offering Memorandum, as the case may be) with the
U.S. Securities and Exchange Commission

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(the
“Commission”) under the Securities Exchange Act of 1934, as amended (the “1934 Act”)
and so deemed to be included in the Preliminary Offering Memorandum, Pricing Disclosure Package or the Final Offering Memorandum,
as the case may be, or any amendment or supplement thereto are hereinafter referred to herein as the “Exchange Act
Reports”.

 

It
is understood and acknowledged that upon original issuance thereof the Offered Notes (and all securities issued in exchange therefor
or in substitution thereof) will bear the legends that are set forth under the caption “Transfer Restrictions” in the
Pricing Disclosure Package.

 

The
Co-Issuers have been advised that the Initial Purchaser intends to offer and resell (the “Exempt Resales”)
the Offered Notes purchased by the Initial Purchaser hereunder on the terms set forth in each of the Pricing Disclosure Package
and the Final Offering Memorandum, as amended or supplemented, solely (a) to persons that the Initial Purchaser reasonably believes
to be “qualified institutional buyers” (“QIBs”) as defined in Rule 144A under the 1933 Act
(“Rule 144A”) and (b) outside of the United States, to persons that the Initial Purchaser reasonably
believes not to be U.S. Persons (such persons, “Non-U.S. Persons”) as defined in Regulation S under the
1933 Act (“Regulation S”) in offshore transactions in reliance on Regulation S, in each case, that the
Initial Purchaser reasonably believes are not Competitors and/or also (c) that the Initial Purchaser reasonably believes to be
affiliates of the Master Issuer. As used in the preceding sentence, the terms “offshore transaction”
and “United States” have the meanings assigned to them in Regulation S. Those persons specified in clauses
(a), (b) and (c) above are referred to herein as “Eligible Purchasers”.

 

2.         Representations
and Warranties of the Sonic Parties. Each of the Sonic Parties jointly and severally, represents and warrants, on and as of
the date hereof and on and as of the Closing Date, as follows:

 

(a)         When
the Offered Notes are issued and delivered pursuant to this Agreement, such Offered Notes and the Guarantee will not be of the
same class (within the meaning of Rule 144A) as securities that are listed on a national securities exchange registered under Section
6 of the 1934 Act or that are quoted in a United States automated inter-dealer quotation system.

 

(b)         Assuming
the accuracy of your representations and warranties in Section 3(b) of this Agreement, the purchase and resale of the Offered Notes
pursuant to this Agreement (including pursuant to the Exempt Resales) are exempt from the registration requirements of the 1933
Act.

 

(c)         No
form of general solicitation or general advertising within the meaning of Regulation D under the 1933 Act (including, but not limited
to, advertisements, articles, notices or other communications published in any newspaper, magazine or similar medium or broadcast
over television or radio, or any seminar or meeting whose attendees have been invited by any general solicitation or general advertising)
(each, a “General Solicitation”) was used by the Sonic Parties, any of their respective affiliates, any
of their respective representatives or any person acting on any of their behalf (other than the Initial Purchaser and its affiliates
or any of its representatives, as to whom the Sonic Parties make no representation) in connection with the offer and sale of the
Offered Notes.

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(d)        No
directed selling efforts within the meaning of Rule 902 under the 1933 Act were used by the Sonic Parties or any of their respective
affiliates, any of their respective representatives or any person acting on their behalf (other than the Initial Purchaser and
its affiliates or any of their respective representatives, as to whom the Sonic Parties make no representation) with respect to
Offered Notes sold outside the United States to Non-U.S. Persons, and each of the Sonic Parties, their respective affiliates and
their respective representatives or any person acting on their behalf (other than the Initial Purchaser and its affiliates and
representatives, as to whom the Sonic Parties make no representation) has complied with and will implement the “offering
restrictions” required by Rule 902 under the 1933 Act.

 

(e)         Each
of the Preliminary Offering Memorandum, the Pricing Disclosure Package and the Final Offering Memorandum, each as of its respective
date, contains all the information specified in, and meeting the requirements of, Rule 144A(d)(4) under the 1933 Act.

 

(f)          None
of the Sonic Parties nor any other person acting on behalf of any Sonic Party has offered or sold any securities in a manner that
would be integrated with the offering of the Offered Notes contemplated by this Agreement pursuant to the 1933 Act, the rules and
regulations thereunder or the interpretations thereof by the Commission.

 

(g)         The
Preliminary Offering Memorandum, the Pricing Disclosure Package and the Final Offering Memorandum have been prepared by the Sonic
Parties for use by the Initial Purchaser in connection with the Exempt Resales. No order or decree preventing the use of the Preliminary
Offering Memorandum, the Pricing Disclosure Package or the Final Offering Memorandum, or any order asserting that the transactions
contemplated by this Agreement are subject to the registration requirements of the 1933 Act, has been issued, and no proceeding
for that purpose has commenced or is pending or, to the knowledge of any Sonic Party, is contemplated.

 

(h)         The
Pricing Disclosure Package did not, as of the Applicable Time, and will not, as of the Closing Date, contain an untrue statement
of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading; provided that no representation or warranty is made as to information contained
in the Pricing Disclosure Package in reliance upon and in conformity with the Initial Purchaser Information (as defined in Section
8(e) below).

 

(i)          The
Final Offering Memorandum will not, as of its date and as of the Closing Date, contain an untrue statement of a material fact or
omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which
they were made, not misleading; provided that no representation or warranty is made as to information contained in the Final
Offering Memorandum in reliance upon and in conformity with the Initial Purchaser Information.

 

(j)          None
of the Sonic Parties has prepared, made, used, authorized, approved or distributed and will not, and will not cause or allow its
agents or representatives to, prepare, make, use, authorize, approve or distribute any written communication (as defined in Rule
405 under the 1933 Act) that constitutes an offer to sell or a solicitation of an offer to buy the Offered Notes, or otherwise
is prepared to market the Offered Notes, other than the Pricing Disclosure

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Package
and the Final Offering Memorandum, without the prior consent of the Initial Purchaser.

 

(k)         The
Exchange Act Reports, when they were or are filed with the Commission, conformed or will conform in all material respects to the
applicable requirements of the 1934 Act and the applicable rules and regulations of the Commission thereunder. The Exchange Act
Reports did not, when filed with the Commission, contain an untrue statement of material fact or omit to state a material fact
necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.

 

(l)          Each
of the Sonic Parties and each of their respective subsidiaries has been duly organized, is validly existing and in good standing
as a corporation, limited liability company or unlimited company, as applicable, under the laws of its respective jurisdiction
of organization and is duly qualified to do business and in good standing as a foreign corporation, limited liability company or
unlimited company, as applicable, in each jurisdiction in which its ownership or lease of property or the conduct of its businesses
requires such qualification, except where the failure to be so qualified or in good standing would not, individually or in the
aggregate, reasonably be expected to have (i) a material adverse effect on the condition (financial or otherwise), results of operations,
stockholders’ equity, properties, management, business or prospects of the Securitization Entities or the Sonic Parties taken
as a whole or (ii) a material adverse effect on the performance by the Sonic Parties of this Agreement, the Offered Notes, the
Indenture or any of the other Related Documents or the consummation of any of the transactions contemplated hereby or thereby (collectively,
clauses (i) and (ii), a “Material Adverse Effect”). Each of the Sonic Parties has all corporate, limited
liability company or unlimited company power and authority necessary to own or lease its properties and to conduct the businesses
in which it is now engaged or contemplated in the Pricing Disclosure Package and the Final Offering Memorandum. Sonic does not
own or control, directly or indirectly, any corporation, limited liability company or other entity other than the subsidiaries
listed in Exhibit 21.01 to Sonic’s Annual Report on Form 10-K for the fiscal year ended August 31, 2017.

 

(m)     (i)          Sonic
has the debt capitalization as set forth in each of the Pricing Disclosure Package and the Final Offering Memorandum, and all of
the issued and outstanding shares of capital stock of Sonic have been duly authorized and validly issued and are fully paid and
non-assessable.

 

          (ii)          The
Co-Issuers have an authorized capitalization as set forth in each of the Pricing Disclosure Package and the Final Offering Memorandum,
and all of the issued and outstanding equity interests of the Co-Issuers have been duly authorized and validly issued and are fully
paid and non-assessable.

 

          (iii)
        All of the outstanding shares of capital
stock, membership interests or other equity interests of each of the Securitization Entities are owned, directly or indirectly,
by Sonic, free and clear of all liens, security interests, mortgages, pledges, charges, equities, claims or restrictions on transferability
or encumbrances of any kind (collectively, “Liens”), other than those Liens (i) imposed by the Indenture
and the Related Documents, (ii) which constitute Permitted Liens, (iii) that would not reasonably be expected to have a Material
Adverse Effect or (iv) which result from transfer restrictions imposed by the Securities Act or the securities or blue sky laws
of certain jurisdictions.

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(n)         Each
of the Co-Issuers shall have all requisite limited liability company power and authority, as applicable, to execute, deliver and
perform its respective obligations under the Indenture on the Closing Date. The Base Indenture has been duly and validly authorized,
executed and delivered by the Co-Issuers and constitutes the valid and legally binding obligation of the Co-Issuers, enforceable
against the Co-Issuers in accordance with its terms, except that such enforceability may be subject to bankruptcy, insolvency,
reorganization, fraudulent conveyance or transfer, moratorium or similar laws affecting creditors’ rights generally and subject
to general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).
The Series 2018-1 Supplement shall be duly and validly authorized by the Co-Issuers on or prior to the Closing Date and upon its
execution and delivery and, assuming due authorization, execution and delivery by the Trustee, will constitute the valid and legally
binding obligation of the Co-Issuers, enforceable against the Co-Issuers in accordance with its terms, except that such enforceability
may be subject to bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or similar laws affecting
creditors’ rights generally and subject to general principles of equity (regardless of whether such enforceability is considered
in a proceeding in equity or at law). Assuming the accuracy of the representations and warranties of the Initial Purchaser contained
in Section 3(b) of this Agreement, no qualification of the Indenture under the Trust Indenture Act of 1939, as amended (the “Trust
Indenture Act”) is required in connection with the offer and sale of the Offered Notes contemplated hereby or in
connection with the Exempt Resales. The Base Indenture conforms in all material respects to the description thereof in each of
the Pricing Disclosure Package and the Final Offering Memorandum. When executed by the Co-Issuers, the Series 2018-1 Supplement
will conform in all material respects to the description thereof in each of the Pricing Disclosure Package and the Final Offering
Memorandum.

 

(o)         Each
of the Co-Issuers shall have all requisite limited liability company power and authority,
as applicable, to execute, issue, sell and perform its obligations under the Offered Notes on or prior to the Closing Date. The
Offered Notes shall be duly authorized by each of the Co-Issuers on or prior to the Closing Date and, when duly executed by each
of the Co-Issuers in accordance with the terms of the Indenture, assuming due authentication of the Offered Notes by the
Trustee, upon delivery to the Initial Purchaser against payment therefor in accordance with
the terms hereof, will be validly issued and delivered and will constitute valid and legally binding obligations of each of the
Co-Issuers entitled to the benefits of the Indenture, enforceable against each of the Co-Issuers in accordance with their terms,
except that the enforceability may be subject to bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium
or similar laws affecting creditors’ rights generally and subject to general principles of equity (regardless of whether
such enforceability is considered in a proceeding in equity or at law). When executed by each of the Co-Issuers, the
Offered Notes will conform in all material respects to the description thereof in each of the Pricing Disclosure Package and the
Final Offering Memorandum.

 

(p)         The Guarantor had all requisite limited liability company and authority to execute, issue and perform its obligations under the
Guarantee and Collateral Agreement on the Initial Closing Date. The Guarantee and Collateral Agreement has been duly and validly
authorized, executed and delivered by the Guarantor, and the Guarantee and Collateral Agreement constitutes valid and legally binding
obligations of the Guarantor, enforceable against

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the
Guarantor in accordance with its terms, except that the enforceability may be subject to bankruptcy, insolvency, reorganization,
fraudulent conveyance or transfer, moratorium or similar laws affecting creditors’ rights generally and subject to general
principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law). The Guarantee
and Collateral Agreement conforms in all material respects to the description thereof in each of the Pricing Disclosure Package
and the Final Offering Memorandum. The Guarantee and Collateral Agreement is effective to guarantee the obligations of the Co-Issuers
under the Offered Notes.

 

(q)         Each
of the Sonic Parties, as applicable, had and shall have all required corporate, limited liability company or unlimited company
power and authority, as applicable, to execute, deliver and perform its obligations under each Related Document to which it is
a party on the Initial Closing Date or on or prior to the Closing Date, as applicable (other than the Offered Notes, the Indenture
and the Guarantee and Collateral Agreement to the extent covered in Section 2(n), (o) and (p)). The Guarantor had and shall have
all requisite limited liability company power and authority, to execute, deliver and perform its obligations under each Related
Document to which it is a party on the Initial Closing Date or on or prior to the Closing Date (other than the Offered Notes, the
Indenture and the Guarantee and Collateral Agreement to the extent covered in Section 2(n), (o) and (p)). Each of the Related Documents
has been or shall be duly and validly authorized, executed and delivered by each of the Sonic Parties (to the extent a party thereto)
and constitutes the valid and legally binding obligation of each of the Sonic Parties (to the extent a party thereto) enforceable
against each of the Sonic Parties (to the extent a party thereto) in accordance with its terms, except that the enforceability
may be subject to bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or similar laws affecting
creditors’ rights generally and subject to general principles of equity (regardless of whether enforcement is sought in a
proceeding in equity or at law) and, as to rights of indemnification and contribution with respect to liabilities under securities
laws, by principles of public policy. Each such Related Document conforms in all material
respects to the description thereof (if any) in each of the Pricing Disclosure Package and the Final Offering Memorandum.

 

(r)         Each
of the Sonic Parties party hereto has all requisite corporate, limited liability company or unlimited company power and authority,
as applicable, to execute, deliver and perform its obligations under this Agreement. This Agreement has been duly and validly
authorized, executed and delivered by each of the Sonic Parties party hereto.

 

(s)         (i)
The issue and sale of the Offered Notes and the Guarantee, (ii) the execution, delivery and performance by the Sonic Parties of
the Offered Notes, the Guarantee, the Indenture, this Agreement and the other Related Documents (to the extent a party thereto),
(iii) the application of the proceeds from the sale of the Offered Notes as described under “Use of Proceeds” in each
of the Pricing Disclosure Package and the Final Offering Memorandum and (iv) the consummation of the transactions contemplated
hereby and thereby, do not and will not (A) conflict with or result in a breach or violation of any of the terms or provisions
of, impose any lien, charge or encumbrance upon any property or assets of any of the Sonic Parties or any of their respective subsidiaries,
or constitute a default under, any indenture, mortgage, deed of trust, loan agreement, credit agreement, security agreement, license,
lease or other agreement or instrument to which any of the Sonic Parties or any of their respective subsidiaries is a party or
by which any of the Sonic Parties or any of their respective subsidiaries is bound or to which any

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of
the property or assets of any of the Sonic Parties or any of their respective subsidiaries is subject, except for Liens created
by the Indenture or the other Related Documents and Permitted Liens, (B) result in any violation of the provisions of the charter,
by-laws, certificate of formation, limited liability company agreement or other organizational document of any of the Sonic Parties,
or (C) result in any violation of any statute or any judgment, order, decree, rule or regulation of any court or governmental agency
or body having jurisdiction over any of the Sonic Parties or any of their respective subsidiaries or any of their respective properties
or assets, except (in the case of clauses (A) and (C)) as would not, individually or in the aggregate, reasonably be expected to
have a Material Adverse Effect.

 

(t)         No
consent, approval, authorization or order of, or filing, registration or qualification with any court or governmental agency or
regulatory body having jurisdiction over any of the Sonic Parties or any of their respective subsidiaries or any of their respective
properties or assets is required for the issue and sale of the Offered Notes and the Guarantee, the execution, delivery and performance
by any of the Sonic Parties or any of their respective subsidiaries of the Offered Notes, the Guarantee, the Indenture, this Agreement
and the other Related Documents (to the extent they are parties thereto), the application of the proceeds from the sale of the
Offered Notes as described under “Use of Proceeds” in each of the Pricing Disclosure Package and the Final Offering
Memorandum and the consummation of the transactions contemplated hereby and thereby, except for (A) such consents, approvals, authorizations,
orders, filings, registrations or qualifications as shall have been obtained or made prior to the Closing Date or are permitted
to be obtained or made subsequent to the Closing Date pursuant to the Indenture and (B) such consents, approvals, authorizations,
orders, filings, registrations or qualifications as may be required under state securities or Blue Sky laws in connection with
the purchase and distribution and resale (including pursuant to the Exempt Resales) of the Offered Notes by the Initial Purchaser.

 

(u)         The
historical consolidated financial statements of Sonic (including the related notes and supporting schedules) included or incorporated
by reference in the Pricing Disclosure Package and the Final Offering Memorandum present fairly in all material respects the financial
condition, results of operations and cash flows of the entities referred to therein, at the dates and for the periods indicated,
and have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”)
applied on a consistent basis throughout the periods involved. The interactive data in eXtensible Business Reporting Language included
or incorporated by reference in the Pricing Disclosure Package and the Final Offering Memorandum fairly present in all material
respects the information called for by, and have been prepared in accordance with, the Commission’s rules and guidelines
applicable thereto.

 

(v)         The
historical consolidated financial statements of the Master Issuer (including the related notes and supporting schedules) included
in the Pricing Disclosure Package and the Final Offering Memorandum present fairly in all material respects the financial condition,
results of operations and cash flows of the entities referred to therein, at the dates and for the periods indicated, and have
been prepared in conformity with GAAP applied on a consistent basis throughout the periods involved.

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(w)        The
Securitized Net Cash Flow included in the Pricing Disclosure Package and the Final Offering Memorandum is derived from the quarterly
noteholder statements generated by the Master Issuer and represents the arithmetic sum of each of the relevant amounts reflected
in such quarterly noteholder statements. The Securitized Net Cash Flow set forth in the Pricing Disclosure Package and the Final
Offering Memorandum has been prepared on a basis consistent with the quarterly noteholder statements and gives effect to assumptions
made on a reasonable basis and in good faith and present fairly in all material respects the historical Securitized Net Cash Flow.

 

(x)         The
non-GAAP financial measures that are included in the Pricing Disclosure Package and the Final Offering Memorandum have been calculated
based on amounts derived from the financial statements and books and records of the Sonic Parties, and the Sonic Parties believe
that any adjustments to such non-GAAP financial measures have a reasonable basis and have been made in good faith.

 

(y)         KPMG
LLP (“KPMG”), who have certified certain financial statements of Sonic, whose report appears in the Pricing
Disclosure Package and the Final Offering Memorandum or is incorporated by reference therein and who have delivered the KPMG initial
letter referred to in Section 7(a) hereof, (x) are independent registered public accountants with respect to Sonic and its subsidiaries
within the meaning of the 1933 Act and the applicable rules and regulations adopted by the Commission and the Public Company Accounting
Oversight Board and (y) was, as of the date of such report, and is, as of the date hereof, an independent public accounting firm
with respect to the Sonic Parties.

 

(z)         Sonic
and each of its subsidiaries maintain a system of internal control over financial reporting (as such term is defined in Rule 13a-15(f)
under the 1934 Act) that complies with the requirements of the 1934 Act and that has been designed by, or under the supervision
of, Sonic principal executive and principal financial officers, to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance with GAAP. Sonic and each of its subsidiaries
maintain internal accounting controls sufficient to provide reasonable assurances regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance with GAAP, including, but not limited to, internal
accounting controls sufficient to provide reasonable assurance that (i) records are maintained in reasonable detail that accurately
and fairly reflect the transactions and dispositions of the assets of Sonic and each of its subsidiaries, (ii) transactions are
recorded as necessary to permit preparation of financial statements in accordance with GAAP and that receipts and expenditures
of Sonic and each of its subsidiaries are being made only in accordance with authorizations of management and directors of Sonic
and each of its subsidiaries and (iii) the unauthorized acquisition, use or disposition of the assets of Sonic and each of its
subsidiaries that could have a material effect on the financial statements are prevented or timely detected. As of the date of
the most recent consolidated balance sheet of Sonic reviewed or audited by KPMG and the audit committee of the board of directors
of Sonic, there were no material weaknesses in any of Sonic and its subsidiaries’ internal controls over financial reporting.

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(aa)       Since
August 31, 2017, the date of the most recent balance sheet of Sonic and its consolidated subsidiaries audited by KPMG and the audit
committee of the board of directors of Sonic (“Audit Date”), (i) Sonic has not been advised of or become
aware of (A) any significant deficiencies in the design or operation of internal control over financial reporting, that could adversely
affect the ability of Sonic or any of its subsidiaries to record, process, summarize and report financial data, or any material
weaknesses in internal control over financial reporting, or (B) any fraud, whether or not material, that involves management or
other employees who have a significant role in the internal control over financial reporting of any of Sonic or any of its subsidiaries
or that is otherwise material to Sonic or any of its subsidiaries; and (ii) there have been no significant changes in internal
control over financial reporting or in other factors that could significantly affect internal control over financial reporting,
including any corrective actions with regard to significant deficiencies and material weaknesses.

 

(bb)       The
section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical
Accounting Policies and Estimates” incorporated by reference in the Preliminary Offering Memorandum contained in the Pricing
Disclosure Package and the Final Offering Memorandum accurately and fully describes (i) the accounting policies that Sonic believes
are the most important in the portrayal of the financial condition and results of operations of Sonic and each of its subsidiaries
and that require management’s most difficult, subjective or complex judgments; (ii) the judgments and uncertainties affecting
the application of critical accounting policies; and (iii) the likelihood that materially different amounts would be reported under
different conditions or using different assumptions and an explanation thereof.

 

(cc)       Except
as described in each of the Pricing Disclosure Package and the Final Offering Memorandum, since the Audit Date, none of the Sonic
Parties nor any of their respective subsidiaries has (i) sustained any loss or interference with its business from fire, explosion,
flood or other calamity, whether or not covered by insurance, or from any labor disturbance or dispute or legal, court or governmental
action, order or decree, (ii) issued or granted any securities, (iii) incurred any liability or obligation, direct or contingent,
other than liabilities and obligations that were incurred in the ordinary course of business, (iv) entered into any transaction
not in the ordinary course of business and/or (v) declared or paid any dividend on its capital stock, and since the Audit Date,
there has not been any change in the capital stock or limited liability company interests, as applicable, or long-term or short-term
debt of any of the Sonic Parties or any of their respective subsidiaries or any changes, or any development involving a change,
whether or not arising from transactions in the ordinary course of business, in the business, general affairs, management, condition
(financial or otherwise), results of operations, stockholders’ equity or limited liability company interests, as applicable,
properties, management, business or prospects of any of the Sonic Parties or any of their respective subsidiaries, in each of (i)
through (v) above, except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

(dd)       Each
of the Co-Issuers and the Guarantor owns and has good title to its Collateral, free and clear of all Liens other than Permitted
Liens. Each of the Parent Companies, the Manager and each of their respective subsidiaries (other than the Co-Issuers and the Guarantor)
has good and marketable title in fee simple to all real property and good and

    	10

    	

    

marketable
title to all personal property owned by it, in each case free and clear of all Liens, except (x) for Permitted Liens and such Liens
that would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect and (y) no representation
is made pursuant to this sentence with respect to good and marketable title to Intellectual Property. All assets held under lease
by the Sonic Parties are held by the relevant entity under valid, subsisting and enforceable leases, with such exceptions as do
not materially interfere with the use made of such assets by the relevant entity.

 

(ee)       Each
of the Co-Issuers’ and the Guarantor’s rights and interests in the Collateral Documents (except with respect to any
owned real property) constitutes accounts or general intangibles under the applicable UCC. The Base Indenture and the Guarantee
and Collateral Agreement are effective to create a valid and continuing Lien on the Collateral in favor of the Trustee on behalf
of and for the benefit of the Secured Parties, which Lien on the Collateral has been perfected (subject to any exceptions described
in the Pricing Disclosure Package and the Final Offering Memorandum and that are otherwise set forth in the Base Indenture, the
Guarantee and Collateral Agreement or any other Related Document) and is prior to all other Liens (other than Permitted Liens).
The Mortgages are effective to create a valid and continuing Lien on each Owned Property, which Lien on the Collateral will be
perfected upon filing in the appropriate jurisdiction. Except as described in the Pricing Disclosure Package and the Final Offering
Memorandum, the Co-Issuers and the Guarantor have received all consents and approvals required by the terms of the Collateral in
order to pledge the Collateral to the Trustee under the Indenture and under the Guarantee and Collateral Agreement. All action
necessary to perfect such first priority security interest in the Collateral has been duly taken (subject to any exceptions described
in the Pricing Disclosure Package and the Final Offering Memorandum and that are otherwise set forth in the Base Indenture, the
Guarantee and Collateral Agreement or any other Related Document).

 

(ff)         Other
than the security interest granted to the Trustee under the Base Indenture, the Guarantee and Collateral Agreement or any other
Related Documents or any other Permitted Lien, none of the Sonic Parties nor any of their respective subsidiaries have pledged,
assigned, sold or granted as of the Closing Date a security interest in the Collateral.

 

(gg)       All
action necessary (including, without limitation, the filing of UCC-1 financing statements and filings with the United States Patent
and Trademark Office, the United States Copyright Office) to protect and evidence the Trustee’s security interest in the
Collateral in the United States has been duly and effectively taken (as described in, and subject to the actions to be taken between
the date hereof and the Closing Date and such other exceptions described in the Pricing Disclosure Package and the Final Offering
Memorandum and that are otherwise set forth in the Base Indenture, the Series 2018-1 Supplement, the Guarantee and Collateral Agreement
or any other Related Document). No effective security agreement, financing statement, equivalent security or lien instrument or
continuation statement authorized by any of the Sonic Parties or any of their respective subsidiaries and listing such Person as
debtor covering all or any part of the Collateral is on file or of record in any jurisdiction (except (i) in respect of Permitted
Liens or (ii) such as may have been filed, recorded or made by such Person in favor of the Trustee on behalf of the Secured Parties
in connection with the Base Indenture and the Guarantee and Collateral Agreement), and no such Person has authorized any

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such
filing. Mortgages have been prepared and executed and delivered to the Trustee with respect to each Owned Property, including an
Assignment of Rents with respect to each Company-owned Drive-In Master Lease and each Post-Securitization Franchise Drive-In Lease
related to such properties.

 

(hh)       Each
Sonic Party and their respective subsidiaries has such permits, licenses, registrations, franchises, certificates of need and other
approvals or authorizations of governmental or regulatory authorities (“Permits”) as are necessary under
applicable law to own their properties and conduct their businesses in the manner described in the Pricing Disclosure Package and
the Final Offering Memorandum, except for any of the foregoing that would not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect. Each Sonic Party and each of their respective subsidiaries has fulfilled and performed
all of its obligations with respect to the Permits, and no event has occurred that allows, or after notice or lapse of time would
allow, revocation or termination thereof or results in any other impairment of the rights of the holder or any such Permits, except
for any of the foregoing that would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
None of the Sonic Parties nor any of their respective subsidiaries has received notice of any revocation or modification of any
such Permits or has any reason to believe that any such Permits will not be renewed in the ordinary course, except as would not,
individually or in the aggregate, be reasonably expected to have a Material Adverse Effect.

 

(ii)         (A)
Each of the Sonic Parties and each of their respective subsidiaries owns or possesses adequate rights to use all patents, patent
applications, trademarks, service marks, trade names, trademark registrations, service mark registrations, copyrights, know-how,
rights of publicity, works of authorship, social media accounts and identifiers, and intellectual property rights in compilations
of data, software, systems and technology (including trade secrets and other unpatented and/or unpatentable proprietary or confidential
information, systems or procedures) (collectively, the “Intellectual Property”), in each case, necessary
for the conduct of their respective businesses as currently conducted, except as would not reasonably be expected to have a Material
Adverse Effect; provided, however, for the avoidance of doubt, the foregoing shall not be deemed to constitute a representation
or warranty with respect to infringement or other violation of Intellectual Property or other proprietary rights of third parties,
which are exclusively addressed below Section 2(ii)(E). (B) The Sonic Parties and each of their respective subsidiaries owns free
and clear of all Liens (other than Franchise Arrangements, Permitted Liens and non-exclusive licenses granted in the ordinary course
of business of the Sonic Parties) all Intellectual Property described in the Preliminary Offering Memorandum, the Final Offering
Memorandum and the Pricing Disclosure Package as being owned by it (“Company Intellectual Property”).
(C) There are no third parties who own any Company Intellectual Property, except as (1) described in the Preliminary Offering Memorandum,
the Final Offering Memorandum and the Pricing Disclosure Package, or (2) would not reasonably be expected to have a Material Adverse
Effect. (D) To the Sonic Parties’ knowledge, there is no infringement by third parties of any Company Intellectual Property,
except as (1) described in the Pricing Disclosure Package, the Preliminary Offering Memorandum or the Final Offering Memorandum
or (2) would not be reasonably expected to have a Material Adverse Effect. (E) Except as (1) described in the Pricing Disclosure
Package, the Preliminary Offering Memorandum or the Final Offering Memorandum or (2) would not reasonably be expected to have a
Material Adverse Effect, (x) there is no

    	12

    	

    

pending
or, to the Sonic Parties’ knowledge, threatened action, suit, proceeding or claim by others: (a) challenging the Sonic Parties’
rights in or to any Company Intellectual Property; (b) challenging the validity, enforceability or scope of any Company Intellectual
Property; or (c) asserting that the Sonic Parties or any of their subsidiaries infringes or otherwise violates, or would, upon
the commercialization of any product or service of the Sonic Parties or any of their subsidiaries described in the Preliminary
Offering Memorandum, the Final Offering Memorandum or the Pricing Disclosure Package as under development, infringe or otherwise
violate, any Intellectual Property of others; or (y) to the Sonic Parties’ knowledge, the operation of the System by the
Sonic Parties and each of their subsidiaries in the conduct of their respective businesses as currently conducted do not infringe,
misappropriate or otherwise violate the Intellectual Property rights of any third party. (F) The Securitization Entities own the
Intellectual Property, or have entered into the license agreements regarding or otherwise possess adequate rights to use the Intellectual
Property necessary for the conduct of their respective businesses as currently conducted in the manner described in the Pricing
Disclosure Package and the Final Offering Memorandum, except for any of the foregoing as would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect. (G) Except with respect to allegations specifically disclosed in the
Final Offering Memorandum, the Sonic Parties (x) have since May 17, 2016 taken reasonable measures to protect the confidentiality,
integrity and availability of personally identifiable data and information technology in the Sonic Parties’ possession, custody
or control, and (y) are in compliance with applicable written policies of the Sonic Parties, PCI-DSS requirements (or is otherwise
in the process of obtaining PCI-DSS certification), laws and regulations regarding data privacy, data security or personally identifiable
information, in each case of subclause (x) and (y), except as would not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect.

 

(jj)         Except
to the extent disclosed in the Final Offering Memorandum, there are no legal or governmental proceedings pending to which any Sonic
Party or any of their respective subsidiaries is a party or of which any property or assets of any of the Sonic Parties or any
of their respective subsidiaries is the subject that would, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect. To each Sonic Party’s knowledge, no such proceedings are threatened or contemplated by governmental
authorities or others.

 

(kk)       The
statements made in the Pricing Disclosure Package and the Final Offering Memorandum under the captions “Description of the
Offered Notes” and “Description of the Base Indenture,” insofar as they constitute a summary of the terms of
the Notes, the Guarantee, and the Indenture, and under the captions “Description of the Securitization Entities and the Securitization
Entities Operating Agreements,” “Characteristics of the Franchise Arrangements,” “Characteristics of the
Real Estate Assets,” “The Franchise Arrangements,” “Description of the Manager and Management Agreement,”
“Description of the Real Estate Assets,” “Description of the Servicer and the Servicing Agreement,” “Description
of the Back-Up Manager and the Back-Up Management Agreement,” “Description of the Contribution Agreements,”
“Description of the IP License Agreements,” “Certain Legal Aspects of the Franchise Assets,” “Certain
U.S. Federal Income Tax Consequences,” “Certain ERISA Considerations,” and “Transfer Restrictions,”
insofar as they purport to constitute summaries of the terms of statutes, rules or regulations, legal or governmental proceedings
or contracts and other documents, constitute accurate summaries of the terms of such statutes, rules and

    	13

    	

    

regulations,
legal and governmental proceedings and contracts and other documents in all material respects; provided, that no representation
or warranty is made as to the Initial Purchaser Information (as defined in Section 8(e)).

 

(ll)         Except
as would not reasonably be expected to result in a Material Adverse Effect, (A) each of the Sonic Parties and each of their respective
subsidiaries carry, or are covered by, insurance from insurers of recognized financial responsibility in such amounts and covering
such risks as is adequate for the conduct of their respective businesses and the value of their respective properties and as is
customary for companies engaged in similar businesses in similar industries; (B) all such policies of insurance of the Sonic Parties
and each of their respective subsidiaries are in full force and effect; (C) the Sonic Parties and each of their respective subsidiaries
are in compliance with the terms of such policies in all material respects; (D) none of the Sonic Parties nor any of their respective
subsidiaries has received notice from any insurer or agent of such insurer that capital improvements or other expenditures are
required or necessary to be made in order to continue such insurance; and (E) there are no claims by the Sonic Parties or any of
their respective subsidiaries under any such policy or instrument as to which any insurance company is denying liability or defending
under a reservation of rights clause. None of the Sonic Parties nor any of their respective subsidiaries has any reason to believe
that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage
from similar insurers as may be necessary to continue its business at a cost that could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

 

(mm)     No
relationship, direct or indirect, that would be required to be described in a registration statement of Sonic pursuant to Item
404 of Regulation S-K, exists between or among any of the Sonic Parties and their respective subsidiaries, on the one hand, and
the directors, officers, stockholders, customers or suppliers of any of the Sonic Parties and their respective subsidiaries, on
the other hand, that has not been described in the Pricing Disclosure Package and the Final Offering Memorandum.

 

(nn)       No
labor disturbance by or dispute with the employees of the Sonic Parties or any of their respective subsidiaries exists or, to the
knowledge of any Sonic Party, is imminent, in each case that would reasonably be expected to have a Material Adverse Effect. Subject
to the understanding that multiple laws and principles govern the circumstances under which a franchisor may be deemed a joint
employer of its franchisees’ employee, that those laws and principles vary from jurisdiction to jurisdiction and statute
to statute, and that no controlling guidance has been issued by any court or agency regarding either the standards that govern
such determinations or the steps that franchisors must take, or refrain from taking, to avoid being deemed a joint employer, the
Sonic Parties believe that they have taken steps which, in their business judgment, and taking into account the needs of the franchise
system and the Sonic brand, they deem reasonably appropriate to mitigate the risk, if any, that (i) employees of the Franchisees
will be deemed joint employees of the Sonic Parties, and (ii) they will be deemed jointly liable for any labor or employment claims
made by the employees of the Franchisees, which, in either case, if adversely determined, would reasonably be expected to have
a Material Adverse Effect.

    	14

    	

    

(oo)       None
of the Sonic Parties nor any of their respective subsidiaries has taken any action which would (A) conflict with or result in a
breach or violation of any of the terms or provisions of, impose any lien, charge or encumbrance upon any property or assets of
any of the Sonic Parties or any of their respective subsidiaries, or constitute a default under, any indenture, mortgage, deed
of trust, loan agreement, credit agreement, security agreement, license, lease or other agreement or instrument to which any of
the Sonic Parties or any of their respective subsidiaries is a party or by which any of the Sonic Parties or any of their respective
subsidiaries is bound or to which any of the property or assets of any of the Sonic Parties or any of their respective subsidiaries
is subject, except for Liens created by the Indenture or the other Related Documents and Permitted Liens, (B) result in any violation
of the provisions of the charter, by-laws, certificate of formation, limited liability company agreement or other organizational
document of any of the Sonic Parties, or (C) result in any violation of any statute or any judgment, order, decree, rule or regulation
of any court or governmental agency or body having jurisdiction over any of the Sonic Parties or any of their respective subsidiaries
or any of their respective properties or assets, except (in the case of clauses (A) and (C)) as would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect.

 

(pp)       Except
as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect:

 

(i)
        the Sonic Parties: (a) are in compliance with all applicable Environmental Laws, (b) hold all permits, licenses, approvals,
registrations, notifications, exemptions and other authorizations required under any Environmental Law (collectively, “Environmental
Permits”, each of which is in full force and effect) required for any of their current operations or for any property
owned, leased, or otherwise operated by any of them and (c) are in material compliance with all of their Environmental Permits;

 

(ii)
      Any gasoline or petroleum (including crude oil or any fraction thereof) or petroleum products (virgin or unused), polychlorinated
biphenyls, urea-formaldehyde insulation, asbestos, pollutants, contaminants, radioactivity and any other materials or substances
that are regulated pursuant to any applicable Environmental Law (collectively, “Materials of Environmental Concern”)
are not present at, on, under or in any real property now or formerly owned, leased or operated by any Sonic Party or any of their
respective subsidiaries, or at any other location (including, without limitation, any location to which Materials of Environmental
Concern have been sent for re-use or recycling or for treatment, storage or disposal) which would reasonably be expected to (i)
give rise to liability of any Sonic Party or any of their respective subsidiaries under any applicable Environmental Law, (ii)
interfere with any Sonic Party’s or any of their respective subsidiaries’ continued operations or (iii) impair the
fair saleable value of any real property owned by any Sonic Party or any of their respective subsidiaries;

 

(iii)
      there is no judicial, administrative, or arbitral proceeding (including any notice of violation or alleged violation) under
or relating to any Environmental Law to which any Sonic Party or any of their respective subsidiaries is, or to the knowledge of
the Sonic Parties or any of their respective subsidiaries will be,

    	15

    	

    

named
as a party that is pending or, to the knowledge of any Sonic Party or any of their respective subsidiaries, threatened;

 

(iv)
      none of the Sonic Parties or any of their respective subsidiaries has received any written request for information, or been
notified in writing that it is a potentially responsible party under or relating to the Federal Comprehensive Environmental Response,
Compensation and Liability Act or any similar Environmental Law, or with respect to any Materials of Environmental Concern;

 

(v)
       none of the Sonic Parties or any of their respective subsidiaries has entered into or agreed to any consent decree, order,
or settlement or other agreement, or is subject to any judgment, decree, or order or other agreement, in any judicial, administrative,
arbitral, or other forum for dispute resolution, in each case, that would be expected to result in ongoing obligations or costs
relating to compliance with or liability under any Environmental Law; and

 

(vi)
      none of the Sonic Parties or any of their respective subsidiaries has assumed or retained, by contract or conduct, any liabilities
of any kind, fixed or contingent, known or unknown, under any Environmental Law or with respect to any Materials of Environmental
Concern.

 

(qq)       Each
of the Sonic Parties and each of their respective subsidiaries has filed all federal, state, local and foreign tax returns required
to be filed through the date hereof, subject to permitted extensions (except in any case in which the failure so to file would
not, individually or in the aggregate, have a Material Adverse Effect), and have paid or caused to be paid all taxes due pursuant
to said returns, (i) except for such taxes as are being contested in good faith and by appropriate proceedings, (ii) except for
which adequate reserves have been set aside in accordance with GAAP or (iii) as would not, individually or in the aggregate, have
a Material Adverse Effect. No tax deficiency has been determined adversely to the Sonic Parties or any of their respective subsidiaries,
nor does any Sonic Party have any knowledge of any tax deficiencies that have been, or could reasonably be expected to be asserted
against the Sonic Parties or any of their respective subsidiaries, that would, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect.

 

(rr)        Except
as would not reasonably be expected to have a Material Adverse Effect, (i) each
“employee benefit plan” (within the meaning of Section 3(3) of the Employee Retirement Security Act of 1974, as amended
(“ERISA”)
and whether or not subject to ERISA) for which any of the Sonic Parties would have any material liability, contingent or otherwise
(each a “Plan”),
presently complies and has been maintained in compliance with its terms and with the requirements of all applicable statutes, rules
and regulations including ERISA and the Code; (ii) no prohibited transaction, within the meaning of Section 406 of ERISA or Section
4975 of the Code, has occurred with respect to any Plan excluding transactions effected pursuant to a statutory or administrative
exemption; and (iii) each Plan that is intended to be qualified under Section 401(a) of the Code is so qualified and nothing has
occurred, whether by action or by failure to act, which would cause the loss of such qualification. No Plan is or was subject to
Title IV of ERISA and none of the Sonic Parties has any material liability with regards to any

    	16

    	

    

post-retirement
welfare benefit under a Plan other than as required by Part 6 of Subtitle B of Title I of ERISA or similar required continuation
of coverage law.

 

(ss)        The
Guarantor is not currently prohibited, directly or indirectly, from paying any dividends to the Co-Issuers, from making any other
distribution on the Guarantor’s limited liability company interests from repaying to the Co-Issuers any loans or advances
to the Guarantor from the Co-Issuers or from transferring any of the Guarantor’s property or assets to the Co-Issuers.

 

(tt)         None
of the Sonic Parties nor any of their respective subsidiaries is, and after giving effect to the offer and sale of the Offered
Notes and the application of the proceeds therefrom as described under “Use of Proceeds” in each of the Pricing Disclosure
Package and the Final Offering Memorandum will be, an “investment company” or a company “controlled” by
an “investment company” within the meaning of Section 3(a)(1) of the Investment Company Act of 1940, as amended (the
“1940 Act”), and the rules and regulations of the Commission thereunder. None of the Co-Issuers constitutes
a “covered fund” for purposes of the Volcker Rule promulgated under the Dodd-Frank Wall Street Reform and Consumer
Protection Act. The Offered Notes are not “asset-backed securities” within the meaning of Section 3(a)(79) of the Securities
Exchange Act of 1934, as amended, and as a result Regulation RR, 17 C. F. R § 246.1 et seq. (the Risk Retention Rules) do
not apply to the issuance and sale of the Offered Notes.

 

(uu)       The
statistical and market-related data included or incorporated by reference in the Pricing Disclosure Package and the Final Offering
Memorandum and/or used or presented in the Schedule III Documents and the consolidated financial statements of Sonic, the Master
Issuer and each of their respective subsidiaries included in the Pricing Disclosure Package and the Final Offering Memorandum are
based on or derived from sources that the Sonic Parties believe to be reliable in all material respects.

 

(vv)       Immediately
after giving effect to the consummation of the transactions contemplated by this Agreement, each of the Sonic Parties will be Solvent.
As used in this Agreement, the term “Solvent” means, with respect to a particular date, that on such
date (i) the present fair market value (or present fair saleable value) of the assets of such relevant entity are not less than
the total amount required to pay the liabilities of such relevant entity on its total existing debts and liabilities (including
contingent liabilities) as they become absolute and matured, (ii) the relevant entity is able to realize upon its assets and pay
its debts and other liabilities, contingent obligations and commitments as they mature and become due in the normal course of business,
(iii) assuming the completion of the transactions contemplated by the Related Documents, the relevant entity is not incurring debts
or liabilities beyond its ability to pay as such debts and liabilities mature, (iv) the relevant entity is not engaged in any business
or transaction, and is not about to engage in any business or transaction, for which its property would constitute unreasonably
small capital after giving due consideration to the prevailing practice in the industry in which such entity is engaged, and (v)
the relevant entity is not a defendant in any civil action that would result in a judgment that such entity is or would become
unable to satisfy. In computing the amount of such contingent liabilities at any time, it is intended that such liabilities will
be computed at the amount that, in the light of all the facts and

    	17

    	

    

circumstances
existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.

 

(ww)     There
are no contracts, agreements or understandings between or among any Sonic Party and any person granting such person the right to
require any of the Sonic Parties to file a registration statement under the 1933 Act with respect to any securities of the Sonic
Parties owned or to be owned by such person or to include any such securities with any securities being registered pursuant to
any other registration statement filed by any Sonic Party under the 1933 Act.

 

(xx)       None
of the Sonic Parties nor any of their respective subsidiaries is a party to any contract, agreement or understanding with any person
(other than this Agreement) that would give rise to a valid claim against any of them or the Initial Purchaser for a brokerage
commission, finder’s fee or like payment in connection with the offering and sale of the Offered Notes.

 

(yy)       None
of the transactions contemplated by this Agreement (including, without limitation, the use of the proceeds from the sale of the
Offered Notes), will violate or result in a violation of Section 7 of the 1934 Act, or any regulation promulgated thereunder, including,
without limitation, Regulations T, U and X of the Board of Governors of the Federal Reserve System.

 

(zz)        None
of the Sonic Parties nor any of their respective affiliates have taken, directly or indirectly, any action designed to or that
has constituted or that could reasonably be expected to cause or result in the stabilization or manipulation of the price of any
security of any Co-Issuer or Guarantor in connection with the offering of the Offered Notes.

 

(aaa)      The
Sonic Parties and their respective affiliates have not taken any action or omitted to take any action that may result in the loss
by any Initial Purchaser of the ability to rely on any stabilization safe harbor provided by applicable law and regulation.

 

(bbb)     None
of the Sonic Parties nor any of their respective subsidiaries is in violation of or has received notice of any violation with respect
to any federal or state law relating to discrimination in the hiring, promotion or pay of employees, nor any applicable federal
or state wage and hour laws, nor any state law precluding the denial of credit due to the neighborhood in which a property is situated,
the violation of any of which would reasonably be expected to have a Material Adverse Effect.

 

(ccc)      None
of the Sonic Parties nor any of their respective subsidiaries, nor to the knowledge of the relevant entity, any director, officer,
manager, member, agent, employee, affiliate or other person acting on behalf of such relevant entity, has (i) made any unlawful
contribution, gift, entertainment or other unlawful expense relating to political activity; (ii) made any direct or indirect unlawful
payment to any domestic governmental official, “foreign official” (as defined in the U.S. Foreign Corrupt Practices
Act of 1977, as amended, and the rules and regulations thereunder (collectively, the “FCPA”) or employee;
(iii) violated or is in violation of any provision of the FCPA, the Bribery Act of 2010 of the United Kingdom or any applicable
non-U.S. anti-bribery statute or regulation; (iv) made any bribe, rebate, payoff, influence

    	18

    	

    

payment,
kickback or other unlawful payment; or (v) received notice of any investigation, proceeding or inquiry by any governmental agency,
authority or body regarding any of the matters in clauses (i)-(iv) above; and the Sonic Parties and their respective subsidiaries
and, to the knowledge of such relevant entity and the relevant entity’s affiliates, have conducted their respective businesses
in compliance with the FCPA and have instituted and maintain policies and procedures designed to ensure, and which are reasonably
expected to continue to ensure, continued compliance therewith.

 

(ddd)     The
operations of the Sonic Parties and each of their respective subsidiaries are and
have been conducted at all times in compliance with applicable financial record-keeping and
reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the money laundering statutes
of all jurisdictions, the rules and regulations thereunder and any related or similar rules, regulations or guidelines issued,
administered or enforced by any governmental agency (collectively, the “Money Laundering Laws”) and no
action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving any Sonic
Party or any of their respective subsidiaries with respect to the Money Laundering Laws is pending or, to the knowledge of such
relevant entity, threatened.

 

(eee)      None
of the Sonic Parties nor any of their respective subsidiaries nor, to the knowledge of such relevant entity, any director, officer,
agent, employee, affiliate or other person acting on behalf of such relevant entity is currently the subject or target of any sanctions
administered or enforced by the United States Government, including, without limitation, the U.S. Department of the Treasury’s
Office of Foreign Assets Control (“OFAC”), the U.S. Department of State, the United Nations Security
Council, the European Union, Her Majesty’s Treasury, or other relevant sanctions authority (collectively, “Sanctions”),
nor is such relevant entity located, organized or resident in a country or territory that is the subject of Sanctions; and the
Sonic Parties and their respective subsidiaries will not directly or indirectly use the proceeds of the offering, or lend, contribute
or otherwise make available such proceeds to any subsidiary, joint venture partner or other person or entity, for the purpose of
financing the activities of or business with any person, or in any country or territory, that currently is the subject or target
of any Sanctions or in any other manner that will result in a violation by any person (including any person participating in the
transaction whether as underwriter, advisor, investor or otherwise) of Sanctions.

 

(fff)        There
are no transfer taxes or other similar fees or charges under Federal law or the laws of any state, or any political subdivision
thereof, required to be paid in connection with the execution and delivery of this Agreement or the issuance and sale by the Co-Issuers
and the Guarantor of the Offered Notes.

 

(ggg)      None
of the Sonic Parties nor any of their respective affiliates or representatives, have participated in a plan or scheme to evade
the registration requirements of the 1933 Act through the sale of the Offered Notes pursuant to Regulation S.

 

(hhh)      The
Investor Model Runs present fairly in all material respects the applicable model or scenario run and, to the extent not specified
by investors, give effect to assumptions made on a reasonable basis and in good faith.

    	19

    	

    

(iii)         No
forward-looking statement (within the meaning of Section 27A of the 1933 Act and Section 21E of the 1934 Act) contained in the
Pricing Disclosure Package or the Final Offering Memorandum has been made without a reasonable basis or has been disclosed other
than in good faith.

 

(jjj)        (i)
The Manager has provided a 17g-5 Representation (as defined below) to S&P (as
defined below); (ii) an executed copy of the 17g-5 Representation delivered to S&P has
been delivered to the Initial Purchaser; and (iii) each of the Sonic Parties
has complied in all material respects with each 17g-5 Representation. For purposes
of this Agreement, “17g-5 Representation” means a written representation provided to S&P,
which satisfies the requirements of Rule 17g-5(a)(3)(iii) of under the 1934 Act.

 

(kkk)     Each
Schedule III Document delivered to any investor, when taken together with the Pricing Disclosure Package, did not, as of the Applicable
Time, contain an untrue statement of a material fact or omit to state a material fact necessary to make the statements therein,
in the light of the circumstances under which they were made, not misleading; provided that no representation or warranty
is made as to information contained in or omitted from such Schedule III Document in reliance upon and in conformity with the Initial
Purchaser Information.

 

(lll)         The
Sonic Parties and their respective affiliates have not taken any action or omitted to take any action which may result in the loss
by the Initial Purchaser of the ability to rely on any stabilisation safe harbour provided by (i) Article 5 of the Market Abuse
Regulation (596/2014) or (ii) the UK Financial Conduct Authority (“FCA”) under s.137Q of the Financial Services
and Markets Act 2000 (“FSMA”).

 

Any
certificate signed by any officer of any Sonic Party and delivered to the Initial Purchaser or counsel for the Initial Purchaser
or any Sonic Party in connection with the offering of the Offered Notes shall be deemed a representation and warranty by such Sonic
Party, as to matters covered thereby, to the Initial Purchaser, and not a representation or warranty by the individual (other than
in his or her official capacity).

 

3.          Purchase
of the Offered Notes by the Initial Purchaser; Agreements to Sell, Purchase and Resell.

 

(a)         On
the basis of the representations, warranties, covenants and agreements herein contained, and subject to the terms and conditions
herein set forth, the Co-Issuers, jointly and severally, agree to sell to the Initial Purchaser and the Initial Purchaser agrees
to purchase from the Co-Issuers, at a purchase price as agreed, in writing, among the Co-Issuers and the Initial Purchaser, $170,000,000
of Offered Notes.

 

(b)         The
Initial Purchaser hereby represents and warrants to the Co-Issuers that it will offer the Offered Notes for sale upon the terms
and conditions set forth in this Agreement, the Pricing Disclosure Package and the Final Offering Memorandum. The Initial Purchaser
hereby represents and warrants to, and agrees with, the Co-Issuers, on the basis of the representations, warranties and agreements
of the Co-Issuers, the Parent Companies, the Manager and the Guarantor, that it: (i) is a sophisticated investor with such knowledge
and

    	20

    	

    

experience
in financial and business matters as are necessary in order to evaluate the merits and risks of an investment in the Offered Notes;
(ii) is purchasing the Offered Notes pursuant to a private sale exempt from registration under the 1933 Act; (iii) in connection
with the Exempt Resales, will solicit offers to buy the Offered Notes only from, and will offer to sell the Offered Notes only
to, the Eligible Purchasers in accordance with this Agreement and on the terms contemplated by the Pricing Disclosure Package and
the Final Offering Memorandum; and (iv) will not offer or sell the Offered Notes, nor has it offered or sold the Offered Notes
by, or otherwise engaged in, any General Solicitation and will not engage in any directed selling efforts within the meaning of
Rule 902 under the 1933 Act, in connection with the offering of the Offered Notes. The Initial Purchaser has advised the Co-Issuers
that they will offer the Offered Notes to Eligible Purchasers at an initial price as set forth in Schedule II hereof. Such price
may be changed by the Initial Purchaser at any time without notice.

 

(c)        The
Initial Purchaser represents and warrants to the Sonic Parties that:

 

(i)         It
has complied and will comply with all applicable provisions of the FSMA with respect to anything done by it in relation to the
Offered Notes in, from or otherwise involving the United Kingdom, and it has only communicated or caused to be communicated and
it will only communicate or cause to be communicated any invitation or inducement to engage in investment activity (within the
meaning of Section 21 of the FSMA) received by it in connection with the issue or sale of any Offered Notes, in circumstances in
which Section 21(1) of the FSMA does not apply to the Co-Issuers; and

 

(ii)        In
relation to each member state of the European Economic Area that has implemented the Prospectus Directive (each a “relevant
member state”), with effect from and including the date on which the Prospectus Directive is implemented in that relevant
member state (the “relevant implementation date”) an offer of Offered Notes to the public has not been made and will
not be made in that relevant member state other than:

 

		(A)	to any legal entity which is a “qualified investor” as defined in the Prospectus Directive;

 

		(B)	to fewer than 150 natural or legal persons (other than qualified investors as defined in the Prospectus
Directive), subject to obtaining the prior consent of the Master Issuer for any such Offer; or

 

		(C)	in any other circumstances falling within Article 3(2) of the Prospectus Directive;

 

provided
that no such offer of Offered Notes shall require the Co-Issuers or the Initial Purchaser to publish a prospectus pursuant to Article
3 of the Prospectus Directive. For the purposes of this Section 3(c), the expression an “offer of Notes to the public”
in any relevant member state means the communication in any form and by any means of sufficient information on the terms of the
offer and the Offered Notes to be offered so as to enable an investor to decide to purchase or subscribe to the Offered Notes,
as the same may be varied in that relevant member state by any measure implementing the Prospectus Directive in that relevant member
state and the expression

    	21

    	

    

“Prospectus
Directive” means Directive 2003/71/EC (and amendments thereto, including by Directive 2010/73/EU) and includes any relevant
implementing measure in each relevant member state.

 

(d)         Initial
Purchaser has not and, prior to the later to occur of (A) the Closing Date and (B) completion of the distribution of the Offered
Notes, will not, use, authorize use of, refer to or distribute any material in connection with the offering and sale of the Offered
Notes other than (i) the Preliminary Offering Memorandum, the Pricing Disclosure Package, the Final Offering Memorandum and the
Schedule III Documents, (ii) any written communication that contains either (x) no “issuer information” (as defined
in Rule 433(h)(2) under the 1933 Act) or (y) “issuer information” that was included (including through incorporation
by reference) in the Preliminary Offering Memorandum, the Pricing Disclosure Package, the Final Offering Memorandum or the Schedule
III Documents or (iii) any written communication prepared by such Initial Purchaser and approved by the Master Issuer (or the Manager
on its behalf) in writing.

 

(e)         The
Initial Purchaser hereby acknowledges that upon original issuance thereof, and until such time as the same is no longer required
under the applicable requirements of the 1933 Act, the Offered Notes (and all securities issued in exchange therefore or in substitution
thereof) shall bear legends substantially in the forms as set forth in the “Transfer Restrictions” section of the Pricing
Disclosure Package and Offering Memorandum (along with such other legends as the Co-Issuers and their counsel deem necessary).

 

The
Initial Purchaser understands that the Co-Issuers and, for purposes of the opinions to be delivered to the Initial Purchaser pursuant
to Sections 7(d) and 7(j) hereof, counsel to the Co-Issuers, and counsel to the Initial Purchaser, will assume the accuracy and
truth of the foregoing representations, warranties and agreements, and the Initial Purchaser hereby consents to such reliance.

 

4.          Delivery
of the Offered Notes and Payment Therefor. Delivery to the Initial Purchaser of and payment for the Offered Notes
shall be made at the office of Skadden, Arps, Slate, Meagher & Flom LLP, at 10:00 A.M., New York City time, on February 1,
2018 (the “Closing Date”). The place of closing for the Offered Notes and the Closing
Date may be varied by agreement between the Initial Purchaser and the Co-Issuers.

 

The
Offered Notes will be delivered to the Initial Purchaser, or the Trustee as custodian for The Depository Trust Company (“DTC”),
against payment by or on behalf of the Initial Purchaser of the purchase price therefor by wire transfer in immediately available
funds, by causing DTC to credit the Offered Notes to the account of the Initial Purchaser at DTC. The Offered Notes will be evidenced
by one or more global securities with respect to each series in definitive form and will be registered in the name of Cede &
Co. as nominee of DTC. The Offered Notes to be delivered to the Initial Purchaser shall be made available to the Initial Purchaser
in New York City for inspection and packaging not later than 10:00 A.M., New York City time, on the Business Day next preceding
the Closing Date.

 

5.          Agreements
of the Sonic Parties. The Sonic Parties, jointly and severally, agree with the Initial Purchaser as follows:

    	22

    	

    

(a)         The
Sonic Parties will furnish to the Initial Purchaser, without charge, within one Business Day of the date of the Final Offering
Memorandum, such number of copies of the Final Offering Memorandum as may then be amended or supplemented as the Initial Purchaser
may reasonably request, provided that such obligation may be satisfied by delivery of the Final Offering Memorandum and
any such amendments and supplements by electronic means, including by e-mail delivery of a PDF file.

 

(b)         The
Sonic Parties shall provide to the Initial Purchaser, without charge, during the period from the date of this Agreement until the
earlier of (i) 180 days from the date of this Agreement and (ii) such date as of which all of the Offered Notes shall have been
sold by the Initial Purchaser (such period, the “Offering Period”), as many copies of the Final Offering
Memorandum and any supplements and amendments thereto, as the Initial Purchaser may reasonably request, provided that such
obligation may be satisfied by delivery of the Final Offering Memorandum and any such amendments and supplements by electronic
means, including by e-mail delivery of a PDF file.

 

(c)         The
Sonic Parties will prepare the Final Offering Memorandum in a form approved by the Initial Purchaser and will not make any amendment
or supplement to the Pricing Disclosure Package or to the Final Offering Memorandum of which the Initial Purchaser shall not previously
have been advised or to which they shall reasonably object after being so advised.

 

(d)         The
Sonic Parties will (i) advise the Initial Purchaser promptly of (x) any Commission order preventing or suspending the use of the
Preliminary Offering Memorandum, the Pricing Disclosure Package, the Final Offering Memorandum or any of the Schedule III Documents
or (y) any suspension of the qualification of the Offered Notes or the Guarantee for offering or sale in any jurisdiction and of
the initiation or threatening of any proceeding for any such purpose, and (ii) use commercially reasonable efforts to prevent the
issuance of any such order preventing or suspending the use of the Preliminary Offering Memorandum, the Pricing Disclosure Package,
the Final Offering Memorandum or any of the Schedule III Documents or suspending any such qualification and, if any such suspension
is issued, to obtain the lifting thereof at the earliest possible time.

 

(e)         Each
of the Sonic Parties consents to the use of the Pricing Disclosure Package, the Final Offering Memorandum and the Schedule III
Documents in accordance with the securities or Blue Sky laws of the jurisdictions in which the Offered Notes are offered by the
Initial Purchaser and by all dealers to whom Offered Notes may be sold, in connection with the offering and sale of the Offered
Notes.

 

(f)          If,
at any time prior to the end of the Offering Period, any event occurs or information becomes known that, in the judgment of any
Sonic Party or in the opinion of counsel for the Initial Purchaser, should be set forth in the Pricing Disclosure Package or the
Final Offering Memorandum so that the Pricing Disclosure Package or the Final Offering Memorandum, as then amended or supplemented,
does not contain an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading, or if it is necessary to supplement or amend
the Pricing Disclosure Package or the Final Offering Memorandum in order to comply with any law, the Sonic Parties will promptly
prepare an appropriate supplement

    	23

    	

    

or
amendment thereto, and will expeditiously furnish to the Initial Purchaser a reasonable number of copies thereof.

 

(g)         Promptly
from time to time, the Sonic Parties shall take such action as the Initial Purchaser may reasonably request to qualify the Offered
Notes for offering and sale under the securities or Blue Sky laws of such jurisdictions as the Initial Purchaser may request, to
comply with such laws so as to permit the continuance of sales and dealings therein in such jurisdictions for as long as may be
necessary to complete the distribution of the Offered Notes and to arrange for the determination of the eligibility for investment
of the Offered Notes under the laws of such jurisdictions as the Initial Purchaser may reasonably request; provided that
in connection therewith, none of the Sonic Parties shall be required to (i) qualify as a foreign corporation, limited liability
company or unlimited company in any jurisdiction in which it would not otherwise be required to so qualify, (ii) file a general
consent to service of process in any such jurisdiction or (iii) subject itself to taxation in any jurisdiction in which it would
not otherwise be subject.

 

(h)         For
a period commencing on the date hereof and ending on the 180th day after the date of the Final Offering Memorandum, the Sonic Parties
agree not to, directly or indirectly, (i) offer for sale, sell, or otherwise dispose of (or enter into any transaction or device
that is designed to, or would be expected to, result in the disposition by any person at any time in the future of) any debt securities
of any Securitization Entity substantially similar to the Offered Notes (“Similar Debt Securities”) or
securities convertible into or exchangeable for Similar Debt Securities, sell or grant options, rights or warrants with respect
to Similar Debt Securities or securities convertible into or exchangeable for Similar Debt Securities, (ii) enter into any swap
or other derivatives transaction that transfers to another, in whole or in part, any of the economic benefits or risks of ownership
of Similar Debt Securities whether any such transaction described in clause (i) or (ii) above is to be settled by delivery of Similar
Debt Securities or other securities, in cash or otherwise, (iii) file or cause to be filed a registration statement, including
any amendments, with respect to the registration of Similar Debt Securities or securities convertible, exercisable or exchangeable
into Similar Debt Securities or (iv) publicly announce an offering of any Similar Debt Securities or securities convertible or
exchangeable into Similar Debt Securities, in each case without the prior written consent of the Initial Purchaser.

 

(i)          So
long as any of the Offered Notes are outstanding, the Sonic Parties will furnish at their expense to the Initial Purchaser, and,
upon request, to holders of the Offered Notes that agree to certain confidentiality obligations and prospective purchasers of the
Offered Notes, the information required by Rule 144A(d)(4) under the 1933 Act (if any).

 

(j)          The Co-Issuers will apply the net proceeds from the sale of the Offered Notes to be sold by the Co-Issuers hereunder substantially
in accordance with the description set forth in the Pricing Disclosure Package and the Final Offering Memorandum under the caption
“Use of Proceeds.”

 

(k)         The
Sonic Parties and their respective affiliates will not take, directly or indirectly, any action designed to or that has constituted
or that reasonably could be expected to cause or result in the stabilization or manipulation of the price of any security of Sonic
Parties in connection with the offering of the Offered Notes.

    	24

    	

    

(l)          Each
Sonic Party will not, and will not permit any of its respective affiliates (as defined in
Rule 144) to, resell any of the Offered Notes that have been acquired by any of them, except for Offered Notes purchased
by any of the Sonic Parties or any of their respective affiliates and resold in a transaction registered under the 1933 Act or
in accordance with Rule 144 or other applicable exemption under the 1933 Act.

 

(m)        The
Sonic Parties will use their commercially reasonable efforts to permit the Offered Notes to be eligible for clearance and settlement
in the United States through DTC and in Europe through Euroclear Bank, S.A./N.V., or Clearstream Banking, société
anonyme.

 

(n)         The
Sonic Parties will not, and will cause their respective affiliates and representatives not to, engage in any “directed selling
efforts” within the meaning of Rule 902 under the 1933 Act.

 

(o)         The
Sonic Parties will, and will cause their respective affiliates and representatives to, comply with and implement the “offering
restrictions” required by Rule 902 under the 1933 Act.

 

(p)         The
Sonic Parties agree not to sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any “security”
(as defined in the 1933 Act) that would be integrated with the sale of the Offered Notes in a manner that would require the registration
under the 1933 Act of the sale to the Initial Purchaser or the Eligible Purchasers of the Offered Notes. The Sonic Parties will
take reasonable precautions designed to insure that any offer or sale, direct or indirect, in the United States or to any U.S.
person (as defined in Rule 902 under the 1933 Act), of any Offered Notes or any substantially similar security issued by any Sonic
Party, within six (6) months subsequent to the date on which the distribution of the Offered Notes has been completed (as notified
to the Co-Issuers by the Initial Purchaser) is made under restrictions and other circumstances reasonably designed not to affect
the status of the offer and sale of the Offered Notes in the United States and to U.S. persons contemplated by this Agreement as
transactions exempt from the registration provisions of the 1933 Act, including any sales pursuant to Rule 144A under, or Regulations
D or S of, the 1933 Act.

 

(q)         The
Co-Issuers and the Guarantor agree to comply with all agreements set forth in the representation letters of the Co-Issuers and
the Guarantor to DTC relating to the approval of the Offered Notes by DTC for “book entry” transfer.

 

(r)          The
Sonic Parties will do and perform all things required or necessary to be done and performed under this Agreement by them prior
to the Closing Date in order to satisfy all conditions precedent to the Initial Purchaser’s obligations hereunder to purchase
the Offered Notes.

 

(s)          During
the Offering Period, the Sonic Parties will not solicit any offer to buy from or offer to sell to any person any Offered Notes
except through the Initial Purchaser. To the extent that the Offering Period continues beyond the Closing Date, the Initial Purchaser
will provide the Co-Issuers and the Manager written notice of the conclusion of the Offering Period.

    	25

    	

    

(t)          The
Sonic Parties (i) shall complete on or prior to the Closing Date all filings and other similar
actions required in connection with the creation and perfection of security interests in the Collateral as and to the extent required
by the Indenture, the Offered Notes, the Guarantee and the other Related Documents and (ii) after the Closing Date, shall complete
all filings and other similar actions that need not be completed on the Closing Date but which may be required in connection with
the creation and perfection or maintenance of security interests in the Collateral as and to the extent required by the Indenture,
the Offered Notes, the Guarantee and the other Related Documents.

 

(u)         The
Sonic Parties, any of their respective affiliates or representatives or any person acting on their behalf (other than the Initial
Purchaser, its affiliates and representatives, as to whom the Sonic Parties make no covenant) will not engage in any General Solicitation
in connection with the offer and sale of the Offered Notes.

 

(v)         The
Sonic Parties will take such steps as shall be necessary to ensure that no such Sonic Party becomes required to register as an
“investment company” within the meaning of such term under the 1940 Act.

 

(w)        No
Sonic Party will take any action which would result in the loss by any Initial Purchaser of the ability to rely on any stabilization
safe harbor provided by applicable law. Each Sonic Party hereby authorizes the Initial Purchaser to make such public disclosure
of information relating to stabilization as is required by applicable law, regulation and guidance.

 

(x)         To
the extent that the ratings to be provided with respect to the Offered Notes as set forth in the Pricing Disclosure Package by
S&P Global Ratings or any successor thereto (“S&P”) are conditional upon the furnishing of documents
or the taking of any other actions by Sonic Parties or any of their respective affiliates, the Sonic Parties and any of their respective
affiliates agree to furnish such documents and take any such other action that is reasonably requested by the S&P.

 

(y)         The
Manager shall comply, and shall cause the Co-Issuers to comply, in all material respects with Rule 17g-5 under the 1934 Act and
the 17g-5 Representation.

 

6.          Expenses.
Whether or not the transactions contemplated by this Agreement are consummated or this Agreement becomes effective or is terminated,
the Sonic Parties, jointly and severally, agree, to pay all reasonable documented out-of-pocket expenses, costs, fees and taxes
incident to and in connection with: (a) the preparation, printing, filing and distribution of the Preliminary Offering Memorandum,
the Pricing Disclosure Package, the Final Offering Memorandum and the Schedule III Documents (including, without limitation, financial
statements and exhibits and one or more versions of the Preliminary Offering Memorandum and the Final Offering Memorandum, if requested,
for distribution in Canada, including in the form of a Canadian “wrapper” (including related fees and expenses of Canadian
counsel to the Initial Purchaser)) and all amendments and supplements thereto (including the fees, disbursements and expenses of
the Sonic Parties’ accountants, other experts and counsel); (b) the preparation, printing (including, without limitation,
word processing and duplication costs) and delivery of this Agreement, the Indenture, the Offered Notes, the Guarantee and the
other Related Documents, all Blue Sky memoranda and all other agreements, memoranda, correspondence and

    	26

    	

    

other
documents printed and delivered in connection therewith and with the Exempt Resales; (c) the issuance and delivery by the Co-Issuers
of the Offered Notes and by the Guarantor of the Guarantee and any taxes payable in connection therewith; (d) the qualification
of the Offered Notes for offer and sale under the securities or Blue Sky laws of the several states and any foreign jurisdictions
as the Initial Purchaser may designate (including, without limitation, the reasonable fees and disbursements of the Initial Purchaser’s
counsel relating to such registration or qualification); (e) the furnishing of such copies of the Preliminary Offering Memorandum,
the Pricing Disclosure Package, the Final Offering Memorandum and the Schedule III Documents, and all amendments and supplements
thereto, as may be reasonably requested for use in connection with the Exempt Resales; (f) the preparation of certificates for
the Offered Notes (including, without limitation, printing and engraving thereof); (g) the fees and expenses of the accountants
and other experts incurred in connection with the delivery of the comfort letters and “agreed upon procedures” letters
to the Initial Purchaser pursuant to the terms of this Agreement; (h) the reasonable fees, disbursements and expenses of outside
legal counsel to the Initial Purchaser, the fees of outside accountants, the costs of any diligence service, and the fees of any
other third party service provider or advisor retained by the Initial Purchaser with the prior approval of the Co-Issuers (not
to be unreasonably withheld); (i) the custody of the Offered Notes and the approval of the Offered Notes by DTC for “book-entry”
transfer (including fees and expenses of counsel for the Initial Purchaser); (j) the rating of the Offered Notes; (k) the obligations
of the Trustee, the Servicer, any agent of the Trustee or the Servicer and the counsel for the Trustee or the Servicer in connection
with the Indenture, the Offered Notes, the Guarantee or the other Related Documents; (l) the performance by the Sonic Parties of
their other obligations under this Agreement and under the other Related Documents which are not otherwise specifically provided
for in this Section 6; (m) all reasonable travel expenses (including expenses related to chartered aircraft) of the Initial Purchaser
and Sonic Parties’ officers and employees and any other expenses of each of the Initial Purchaser, the Sonic Parties in connection
with attending or hosting meetings with prospective purchasers of the Offered Notes, and expenses associated with any “road
show” presentation to potential investors (including any electronic “road show” presentations); (n) compliance
with Rule 17g-5 under the 1934 Act; and (o) all sales, use and other taxes (other than income taxes) related to the transactions
contemplated by this Agreement, the Indenture, the Offered Notes, the Guarantee or the other Related Documents.

 

7.         Conditions
to Initial Purchaser’s Obligations. The obligations of the Initial Purchaser hereunder are subject (i) to the accuracy,
when made and on and as of the Closing Date, of the representations and warranties of the Sonic Parties contained herein, (ii)
to the accuracy of the statements of each Sonic Party and each of their respective officers made in any certificate delivered
pursuant hereto, (iii) to the performance by the Sonic Parties and each of their respective obligations hereunder, and (iv) to
each of the following additional terms and conditions:

 

(a)         The
Final Offering Memorandum (and any amendments or supplements thereto) shall have been printed and copies distributed to the Initial
Purchaser as promptly as practicable on or following the date of this Agreement or at such other date and time as to which the
Initial Purchaser may agree.

    	27

    	

    

(b)         The
Initial Purchaser shall not have discovered and disclosed to the Sonic Parties on or prior to the Closing Date that the Pricing
Disclosure Package or the Final Offering Memorandum or any amendment or supplement to any of the foregoing, contains an untrue
statement of a fact which, in the opinion of the Initial Purchaser, is material or omits to state a fact which, in the opinion
of the Initial Purchaser, is material and is necessary in order to make the statements therein, in the light of the circumstances
then prevailing, not misleading.

 

(c)         All
corporate proceedings and other legal matters incident to the authorization, form and validity of this Agreement, the Offered Notes,
the Indenture, the other Related Documents, the Pricing Disclosure Package and the Final Offering Memorandum, and all other legal
matters relating to this Agreement and the transactions contemplated hereby shall be reasonably satisfactory in all material respects
to counsel for the Initial Purchaser, and the Sonic Parties shall have furnished to such counsel all documents and information
that they may reasonably request to enable them to pass upon such matters.

 

(d)         The
Initial Purchaser shall have received one or more opinions and a negative assurance letter of Skadden, Arps, Slate, Meagher &
Flom LLP, counsel to the Sonic Parties, with respect to the matters set forth on Exhibit 2-A hereto.

 

(e)         The
Initial Purchaser shall have received an opinion of in-house counsel to the Sonic Parties, addressed to the Initial Purchaser and
dated the Closing Date, in form and substance reasonably satisfactory to the Initial Purchaser and its counsel, which opinion shall
include the opinions set forth on Exhibit 2-B.

 

(f)          The
Initial Purchaser shall have received an opinion and negative assurance letter of DLA Piper LLP (US), franchise counsel to the
Sonic Parties, addressed to the Initial Purchaser and dated the Closing Date, in form and substance reasonably satisfactory to
the Initial Purchaser and its counsel, which opinion shall include the relevant opinions set forth on Exhibit 2-C.

 

(g)         The
Initial Purchaser shall have received an opinion from Adams Jones Law Firm P.A., Kansas counsel, addressed to the Initial Purchaser
and dated as of the Closing Date, in form and substance reasonably satisfactory to the Initial Purchaser and its counsel, which
opinion shall include the relevant opinions set forth on Exhibit 2-C.

 

(h)         The
Initial Purchaser shall have received an opinion from Phillips Murrah P.C., Oklahoma counsel, addressed to the Initial Purchaser
and dated as of the Closing Date, in form and substance reasonably satisfactory to the Initial Purchaser and its counsel, which
opinions shall include the relevant opinions set forth on Exhibit 2-C.

 

(i)          The
Initial Purchaser shall have received an opinion of Dentons US LLP, counsel to the Trustee, addressed to the Initial Purchaser
and dated as of the Closing Date, in form and substance reasonably satisfactory to the Initial Purchaser and its counsel, which
opinion shall include the relevant opinions set forth on Exhibit 2-D.

 

(j)          The
Initial Purchaser shall have received an opinion and negative assurance letter of Andrascik & Tita LLC, counsel to the Servicer,
and an opinion of in-house

    	28

    	

    

counsel
to the Servicer, each addressed to the Initial Purchaser and dated the Closing Date, in form and substance reasonably satisfactory
to the Initial Purchaser and its counsel, which opinions shall include the relevant opinions set forth on Exhibit 2-D.

 

(k)         The
Initial Purchaser shall have received a bring down letter to the opinion of in-house counsel to the Back-Up Manager delivered in
connection with the issuance and sale of the Series 2018-1 Notes, addressed to the Initial Purchaser and dated as of the Closing
Date, in form and substance reasonably satisfactory to the Initial Purchaser and its counsel, which bring-down letter to the opinion
shall include the relevant opinions set forth on Exhibit 2-D.

 

(l)          The
Initial Purchaser shall have received from White & Case LLP, counsel for the Initial Purchaser, such opinions and negative
assurance letter, dated as of the Closing Date, with respect to the issuance and sale of the Offered Notes, the Preliminary Offering
Memorandum, the Final Offering Memorandum and other related matters as the Initial Purchaser may reasonably require, and the Sonic
Parties shall have furnished to such counsel such documents and information as such counsel reasonably requests for the purpose
of enabling them to pass upon such matters.

 

(m)        In
addition to the other opinions and letters provided for in this Section 7, the Initial Purchaser shall have been provided with
any other opinions that have been addressed to S&P in connection with the transactions contemplated herein, and such opinions
will be addressed to the Initial Purchaser.

 

(n)         At
the time of execution of this Agreement, the Initial Purchaser shall have received from KPMG, a “comfort letter”, in
form and substance reasonably satisfactory to the Initial Purchaser, addressed to the Initial Purchaser and dated the date hereof
(i) confirming that they are independent public accountants with respect to Sonic and its subsidiaries within the meaning of the
1933 Act and the applicable rules and regulations adopted by the Commission and the Public Company Accounting Oversight Board and
are in compliance with the applicable requirements relating to the qualification of accountants under Rule-01 of Regulation S-X
of the Commission and (ii) stating, as of the date hereof (or, with respect to matters involving changes or developments since
the respective dates as of which specified financial information is given in the Pricing Disclosure Package, as of a date not more
than three (3) days prior to the date hereof), the conclusions and findings of such firm with respect to the financial information
and (iii) covering such other matters as are ordinarily covered by accountants’ “comfort letters” to underwriters
in connection with registered public offerings.

 

(o)         With
respect to the “comfort letter” of KPMG referred to in the preceding paragraph and delivered to the Initial Purchaser
concurrently with the execution of this Agreement (the “KPMG initial letter”), KPMG shall have furnished
to the Initial Purchaser a “bring-down letter” of such accountants, addressed to the Initial Purchaser and dated the
Closing Date (i) confirming that they are independent public accountants with respect to Sonic and its subsidiaries within the
meaning of the 1933 Act and the applicable rules and regulations adopted by the Commission and the Public Company Accounting Oversight
Board and are in compliance with the applicable requirements relating to the qualification of accountants under Rule 2-01 of Regulation
S-X of the Commission, (ii) stating, as of the Closing Date (or, with respect to matters involving changes or developments since
the respective dates as of which specified

    	29

    	

    

financial
information is given in each of the Pricing Disclosure Package or the Final Offering Memorandum, as of a date not more than three
(3) days prior to the date of the Closing Date), the conclusions and findings of such firm with respect to the financial information
and other matters covered by the KPMG initial letter, and (iii) confirming in all material respects the conclusions and findings
set forth in the KPMG initial letter.

 

(p)         At
the time of execution of this Agreement, the Initial Purchaser shall have received from FTI Consulting, Inc. a letter (the “Initial
AUP Letter”), in form and substance reasonably satisfactory to the Initial Purchaser, addressed to the Initial Purchaser
and dated the date hereof, concerning certain agreed-upon procedures performed in respect of the information presented in the Pricing
Disclosure Package, the Final Offering Memorandum and the Investor Model Runs set forth in Schedule III.

 

(q)         With
respect to the Initial AUP Letter referred to in the preceding paragraph and delivered to the Initial Purchaser concurrently with
the execution of this Agreement, FTI Consulting, Inc. shall have furnished to the Initial Purchaser a “bring-down letter”,
addressed to the Initial Purchaser and dated the Closing Date stating, as of the Closing Date (or, with respect to matters involving
changes or developments since the respective dates as of which specified financial information is given in each of the Pricing
Disclosure Package or the Final Offering Memorandum, as of a date not more than three (3) days prior to the Closing Date), (i)
the conclusions and findings of such firm with respect to the matters covered by the Initial AUP Letter, and (ii) confirming in
all material respects the conclusions and findings set forth in the Initial AUP Letter.

 

(r)          (i)
None of the Sonic Parties shall have sustained, since August 31, 2017, any material loss or interference with its business or properties
from fire, explosion, flood, earthquake, hurricane, accident or other calamity, whether or not covered by insurance, or from any
labor disturbance or dispute or any legal, court or governmental action, order or decree, other than as set forth in the Pricing
Disclosure Package and the Final Offering Memorandum (exclusive of any supplement thereto); and (ii) subsequent to the dates as
of which information is given in the Pricing Disclosure Package and the Final Offering Memorandum (exclusive of any supplement
thereto), there shall not have been any change in the capital stock or limited liability company interests, as applicable, or long-term
or short-term debt of any of the Sonic Parties or any of their respective subsidiaries or any change, or any development involving
a prospective change, in or affecting the business, general affairs, condition (financial or otherwise), results of operations,
limited liability company interests, stockholders’ equity or limited liability company interest, as applicable, properties,
management, business or prospects of the Sonic Parties or any of their respective subsidiaries, individually or taken as a whole,
the effect of which, in any such case described above, is, in the judgment of the Initial Purchaser, so material and adverse as
to make it impracticable or inadvisable to proceed with the offering, sale or delivery of the Offered Notes on the terms and in
the manner contemplated in the Pricing Disclosure Package and the Final Offering Memorandum.

 

(s)         Each
of the Sonic Parties shall have furnished or caused to be furnished to the Initial Purchaser dated as of the Closing Date a certificate
of the Chief Financial Officer of each of the Sonic Parties, or other officers reasonably satisfactory to the Initial Purchaser,
as to

    	30

    	

    

such
matters as the Initial Purchaser may reasonably request, including, without limitation a statement:

 

(i)         that
the representations and warranties of the Sonic Parties in Section 2 and in any other Related Document to which each Sonic Party,
as applicable, is a party are true and correct on and as of the Closing Date, and (x) the Sonic Parties have complied in all material
respects with all its agreements contained herein and in any other Related Document to which it is a party and satisfied all the
conditions on its part to be performed or satisfied hereunder or any other Related Document to which it is a party at or prior
to the Closing Date and (y) the Guarantor acknowledges that the Offered Notes are covered by the obligations of the Guarantee and
Collateral Agreement;

 

(ii)        that
subsequent to the date as of which information is given in the Pricing Disclosure Package, there has not been any development in
the business, condition (financial or otherwise), results of operations, stockholders’ equity, properties, general affairs,
capitalization, management, businesses or prospects of any of the Sonic Parties, as applicable, except as set forth or contemplated
in the Pricing Disclosure Package or the Final Offering Memorandum or as described in such certificate that could reasonably be
expected to result in a Material Adverse Effect

 

(iii)       that
they have carefully examined the Pricing Disclosure Package and the Final Offering Memorandum, and, in their opinion, (A) the Pricing
Disclosure Package, as of the Applicable Time, and the Final Offering Memorandum, as of its date and as of the Closing Date, did
not and do not contain an untrue statement of a material fact or omit to state a material fact necessary to make the statements
therein, in the light of the circumstances under which they were made, not misleading and (B) since the date of the Pricing Disclosure
Package and the Final Offering Memorandum, no event has occurred which should have been set forth in a supplement or amendment
to the Pricing Disclosure Package and the Final Offering Memorandum;

 

(iv)       that
(i) none of the Sonic Parties shall have sustained, since the date of the latest audited financial statements included or incorporated
by reference in the Pricing Disclosure Package and the Final Offering Memorandum, any material loss or interference with their
business or properties from fire, explosion, flood or other calamity, whether or not covered by insurance, or from any labor dispute
or any legal or governmental proceeding, other than as set forth in the Pricing Disclosure Package and the Final Offering Memorandum
(exclusive of any supplement thereto); (ii) subsequent to the dates as of which information is given in Pricing Disclosure Package
and the Final Offering Memorandum (exclusive of any supplement thereto), there shall not have been any change in the capital stock
or long-term or short-term debt of any Sonic Party or any change or any development involving a change, whether or not arising
from transactions in the ordinary course of business, in the business, general affairs, management, condition (financial or otherwise),
results of operations, stockholders’ equity, properties or prospects of the Sonic Parties and their respective subsidiaries,
individually or taken as a whole, the effect of which, in any such case described above, is, in the judgment of the Initial Purchaser,
so material and adverse as to make it impracticable or inadvisable to

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proceed
with the offering, sale or delivery of the Offered Notes on the terms and in the manner contemplated in the Pricing Disclosure
Package and the Final Offering Memorandum, (iii) no downgrading has occurred in the rating accorded Sonic’s, the Manager’s,
the Guarantor’s or any Co-Issuer’s debt securities by any “nationally recognized statistical rating organization,”
as that term is defined in Section 3(a)(62) of the 1934 Act, or (iv) any such organization has publicly announced that it has under
surveillance or review, with possible negative implications, its rating of any Sonic Party debt securities;

 

(v)        each
of the Mortgages identified in a data file delivered to the Initial Purchaser has been prepared and executed and delivered to the
Trustee; and

 

(vi)       the
financial information relating to the fiscal year ended 2013 set forth in the final offering memorandum dated April 12, 2016 setting
forth information regarding the Sonic Parties and the Series 2016-1 Notes is true and correct as of the date hereof and will be
true and correct as of the Closing Date, and no changes to such financial information are necessary to be made as of the date hereof.

 

(t)          Subsequent
to the Applicable Time there shall not have occurred any of the following: (i) downgrading of the rating accorded Sonic or the
Manager’s debt securities by any “nationally recognized statistical rating organization,” as the term is defined
in Section 3(a)(62) of the 1934 Act or (ii) any such organization shall have publicly announced that it has under surveillance
or review, with possible negative implications, its rating of any debt securities of Sonic or the Manager. The Initial Purchaser
shall have received a letter from S&P stating that the Offered Notes have received a rating of not less than “BBB”.

 

(u)         The
Offered Notes shall be eligible for clearance and settlement in the United States through DTC and in Europe through Euroclear Bank,
S.A./N.V., or Clearstream Banking, société anonyme.

 

(v)         The
Series 2018-1 Supplement and the Springing Amendments (as defined in Section 9 of this Agreement) shall each have been duly executed
and delivered by the Co-Issuers and the Trustee, in a form satisfactory to the Initial Purchaser, and the Offered Notes shall have
been duly executed and delivered by the Co-Issuers and duly authenticated by the Trustee. Each of the Series 2018-1 Supplement
and the Offered Notes shall have been consummated in accordance with the terms set forth in the Pricing Disclosure Package, the
Preliminary Offering Memorandum and the Final Offering Memorandum.

 

(w)        The
Initial Purchaser shall have received true and executed copies of each of the documents specified in clauses (s), (v) and (z).

 

(x)         Subsequent
to the Applicable Time there shall not have occurred any of the following: (i) any domestic or international event or act or occurrence
has materially disrupted, or in the opinion of the Initial Purchaser will in the immediate future materially disrupt, the market
for the securities of any Sonic Party or securities in general; or (ii) trading on the NYSE or NASDAQ shall have been suspended
or been made subject to material limitations, or minimum or maximum prices for trading shall have been fixed, or maximum ranges
for prices

    	32

    	

    

for
securities shall have been required on the NYSE or NASDAQ or by order of the Commission or any other governmental authority having
jurisdiction; or (iii) a banking moratorium has been declared by any state or federal authority or any material disruption in commercial
banking or securities settlement or clearance services shall have occurred; or (iv) (A) there shall have occurred any outbreak
or escalation of hostilities or acts of terrorism involving the United States or there is a declaration of a national emergency
or war by the United States or (B) there shall have been any other calamity or crisis or any change in political, financial or
economic conditions if the effect of any such event in (A) or (B), in the judgment of the Initial Purchaser, makes it impracticable
or inadvisable to proceed with the offering, sale and delivery of the Offered Notes, on the terms and in the manner contemplated
by the Final Offering Memorandum or that, in the judgment of the Initial Purchaser, could materially and adversely affect the financial
markets or the markets for the Offered Notes and other debt securities.

 

(y)         There
shall exist at and as of the Closing Date no condition that would constitute an “Event of Default” (or an event that
with notice or the lapse of time, or both, would constitute an “Event of Default”) under, and as defined in, the Indenture
or a material breach under any of the other Related Documents as in effect at the Closing Date (or an event that with notice or
lapse of time, or both, would constitute such a default or material breach). On the Closing Date, each of the Related Documents
shall be in full force and effect, shall conform in all material respects to the description thereof contained in the Pricing Disclosure
Package and the Final Offering Memorandum and shall not have been modified.

 

(z)         Each
Parent Company, the Manager, the Guarantor and each Co-Issuer shall have furnished to the Initial Purchaser a certificate, in form
and substance reasonably satisfactory to the Initial Purchaser, dated as of the Closing Date, of the Chief Financial Officer (or,
if such entity has no Chief Financial Officer, of another Authorized Officer) of such entity that such entity will be Solvent immediately
after the consummation of the transactions contemplated by this Agreement.

 

(aa)       None
of (i) the issuance and sale of the Offered Notes pursuant to this Agreement, (ii) the transactions contemplated by the Related
Documents or (iii) the use of the Pricing Disclosure Package, the Schedule III Documents or the Final Offering Memorandum shall
be subject to an injunction (temporary or permanent) and no restraining order or other injunctive order shall have been issued;
and there shall not have been any legal action, order, decree or other administrative proceeding instituted or (to the knowledge
of Sonic Parties) overtly threatened against the Sonic Parties or the Initial Purchaser that would reasonably be expected to adversely
impact the issuance of the Offered Notes or the Initial Purchaser’s activities in connection therewith or any other transactions
contemplated by the Related Documents or the Pricing Disclosure Package.

 

(bb)       The
Initial Purchaser shall have received evidence satisfactory to the Initial Purchaser and its counsel that all UCC-1 financing statements
and assignments and other instruments required to be filed on or prior to the Initial Closing Date or the Closing Date pursuant
to the Related Documents have been filed.

 

(cc)       The
Initial Purchaser shall have received evidence satisfactory to the Initial Purchaser and its counsel that all conditions precedent
to the issuance of the Offered Notes

    	33

    	

    

that
are contained in the Indenture have been satisfied, including confirmation that the Rating Agency Condition with respect to the
Offered Notes has been satisfied.

 

(dd)          The
representations and warranties of each of the Sonic Parties (to the extent a party thereto) contained in the Related Documents
to which each of the Sonic Parties is a party will be true and correct as of the Closing Date (i) if qualified as to materiality,
in all respects and (ii) if not so qualified, in all material respects as of the Closing Date (unless stated to relate solely to
an earlier date, in which case such representations and warranties shall be true and correct (x) if qualified as to materiality
in all respects and (y) if not so qualified, in all material respects, as of such earlier date).

 

(ee)          On
or prior to the Closing Date, the Parent Companies, the Manager, the Guarantor and the Co-Issuers shall have furnished to the Initial
Purchaser such further certificates and documents as the Initial Purchaser may reasonably request.

 

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

 

8.         Indemnification
and Contribution.

 

(a)          Each
of the Sonic Parties shall, jointly and severally, indemnify and hold harmless the Initial Purchaser, its affiliates, directors,
officers, employees and each person, if any, who controls the Initial Purchaser within the meaning of Section 15 of the 1933 Act
or Section 20 of the 1934 Act (each, an “Initial Purchaser Indemnified Party”), against any and all losses,
liabilities, claims, damages and expenses whatsoever as incurred (including but not limited to reasonable third party out-of-pocket
attorneys’ fees and any and all reasonable out-of-pocket expenses whatsoever incurred in investigating, preparing or defending
against any litigation, commenced or threatened, or any claim whatsoever, and any and all amounts paid in settlement of any claim
or litigation), joint or several, to which they or any of them may become subject under the 1933 Act, the 1934 Act or otherwise,
insofar as such losses, liabilities, claims, damages or expenses (or actions in respect thereof) arise out of or are based upon
(i) any untrue statement or alleged untrue statement of a material fact contained (A) in the Preliminary Offering Memorandum, the
Pricing Disclosure Package or the Final Offering Memorandum or in any amendment or supplement thereto, (B) in any Blue Sky application
or other document prepared or executed by any of the Sonic Parties (or based upon any written information furnished by any of the
Sonic Parties) specifically for the purpose of qualifying any or all of the Offered Notes under the securities laws of any state
or other jurisdiction (any such application, document or information being hereinafter called a “Blue Sky Application”)
or (C) in any materials or information provided to investors by, or with the approval of any of the Sonic Parties in connection
with the marketing of the offering of the Offered Notes, including any road show or investor presentations made to investors by
any of the Sonic Parties (whether in person or electronically) and the documents and information listed on Schedule III hereto
(all of the foregoing materials described in this clause (C), the “Marketing Materials”), (ii) the omission
or alleged omission to state in the Preliminary Offering Memorandum, the Pricing Disclosure Package or the Final Offering Memorandum,
or in any amendment or supplement thereto, or in any Blue Sky Application or in any Marketing Materials, any material fact necessary
in order to

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make
the statements therein, in the light of the circumstances under which they were made, not misleading, (iii) any act or failure
to act or any alleged act or failure to act by any Initial Purchaser in connection with, or relating in any manner to, the Offered
Notes or the offering contemplated hereby, and that is included as part of or referred to in any loss, claim, damage, liability
or action or expense arising out of or based upon matters covered by clause (i) or (ii) above, or (iv) the violation of any securities
laws (including without limitation the anti-fraud provision thereof) of any foreign jurisdiction in which the Offered Notes are
offered; provided, however, that the Sonic Parties will not be liable in any such case to the extent but only to
the extent that it is determined in a final and unappealable judgment by a court of competent jurisdiction that any such loss,
liability, claim, damage or expense arises directly and primarily out of or is based directly and primarily upon any such untrue
statement or alleged untrue statement or omission or alleged omission made therein in reliance upon and in conformity with the
Initial Purchaser Information. The parties agree that such information provided by or on behalf of any Initial Purchaser through
the Initial Purchaser consists solely of the Initial Purchaser Information.

 

Each
of the Sonic Parties hereby agrees, jointly and severally, to indemnify and hold harmless each Initial Purchaser Indemnified Party,
against any and all losses, liabilities, claims, damages and expenses whatsoever as incurred (including but not limited to reasonable
out-of-pocket attorneys’ fees and any and all reasonable out-of-pocket expenses whatsoever incurred in investigating, preparing
or defending against any litigation, commenced or threatened, or any claim whatsoever, and any and all amounts paid in settlement
of any claim or litigation), joint or several, to which they or any of them may become subject, insofar as such loss, claim, damage,
liability or action arises out of, or is based upon, any website maintained in compliance with Rule 17g-5 under the 1934 Act by
or on behalf of any Sonic Party in connection with the marketing of the offering of the Offered Notes.

 

Except
as otherwise provided in Section 8(c), each of the Sonic Parties agrees that it shall, jointly and severally, reimburse each Indemnified
Party promptly upon demand for any reasonable out-of-pocket legal or other reasonable out-of-pocket expenses reasonably incurred
by that Initial Purchaser Indemnified Party in connection with investigating or defending or preparing to defend against any losses,
liabilities, claims, damages or expenses for which indemnity is being provided pursuant to this Section 8(a) as such expenses are
incurred.

 

The
foregoing indemnity agreement will be in addition to any liability which the Sonic Parties may otherwise have, including but not
limited to other liability under this Agreement.

 

(b)          The
Initial Purchaser shall indemnify and hold harmless each Sonic Party, each of the officers, directors and employees of each Sonic
Party, and each other person, if any, who controls such Sonic Party within the meaning of Section 15 of the 1933 Act or Section
20 of the 1934 Act (each a “Sonic Indemnified Party”), against any losses, liabilities, claims, damages
and expenses whatsoever as incurred (including but not limited to attorneys’ fees and any and all expenses whatsoever incurred
in investigating, preparing or defending against any litigation, commenced or threatened, or any claim whatsoever, and any and
all amounts paid in settlement of any claim or litigation), joint or several, to which they or any of them may become subject

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under
the 1933 Act, the 1934 Act or otherwise, insofar as such losses, liabilities, claims, damages or expenses (or actions in respect
thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained (A) in
the Preliminary Offering Memorandum, the Pricing Disclosure Package or the Final Offering Memorandum or in any amendment or supplement
thereto, (B) in any Blue Sky Application or (C) in any Marketing Materials, or (ii) the omission or alleged omission to state in
the Preliminary Offering Memorandum, the Pricing Disclosure Package or the Final Offering Memorandum, or in any amendment or supplement
thereto, in any Blue Sky Application or in any Marketing Materials any material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading, but in each case only to the extent that
the untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and in conformity with
written information furnished to any of the Sonic Parties by or on behalf of any Initial Purchaser through the Initial Purchaser
expressly for use in the Preliminary Offering Memorandum, the Pricing Disclosure Package, the Final Offering Memorandum, amendment
or supplement thereto, Blue Sky Application or Marketing Materials (as the case may be), which information is limited to the Initial
Purchaser Information, provided, however, that in no case shall any Initial Purchaser be liable or responsible for
any amount in excess of the discount applicable to the Offered Notes to be purchased by such Initial Purchaser under this Agreement.

 

The
foregoing indemnity agreement will be in addition to any liability which the Initial Purchaser may otherwise have, including but
not limited to other liability under this Agreement.

 

(c)          Promptly
after receipt by an indemnified party under subsection (a) or (b) above of notice of any claims or the commencement of any action,
such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection,
notify each party against whom indemnification is to be sought in writing of the claim or the commencement thereof (but the failure
so to notify an indemnifying party shall not relieve the indemnifying party from any liability which it may have under this Section
8 to the extent that it is not materially prejudiced due to the forfeiture of substantive rights or defenses as a result thereof
or otherwise has notice of any such action, and in any event shall not relieve it from any liability that such indemnifying party
may have otherwise than on account of the indemnity agreement hereunder). In case any such claim or action is brought against any
indemnified party, and it notifies an indemnifying party of the commencement thereof, the indemnifying party will be entitled to
participate, at its own expense in the defense of such action, and to the extent it may elect by written notice delivered to the
indemnified party promptly after receiving the aforesaid notice from such indemnified party, to assume the defense thereof with
counsel reasonably satisfactory to such indemnified party; provided, however, that counsel to the indemnifying party
shall not (except with the written consent of the indemnified party) also be counsel to the indemnified party. Notwithstanding
the foregoing, the indemnified party or parties shall have the right to employ its or their own counsel in any such case, but the
reasonable out-of-pocket fees and expenses of such counsel shall be at the expense of such indemnified party or parties unless
(i) the employment of such counsel shall have been authorized in writing by one of the indemnifying parties in connection with
the defense of such action, (ii) the indemnifying parties shall not have employed counsel reasonably satisfactory to

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such
indemnified party to have charge of the defense of such action within a reasonable time after notice of commencement of the action,
(iii) such indemnified party or parties shall have reasonably concluded, based on
advice of counsel, that there may be legal defenses
available to it or them which are different from or additional to those available to the indemnifying parties, or (iv)
the named parties in any such proceeding (including any impleaded parties) include both the indemnifying party and the indemnified
party and representation of both sets of parties by the same counsel would present a conflict due to actual or potential differing
interests between them, in any of which events (i) through (iv) such fees and expenses shall be borne by the indemnifying parties
(and the indemnifying parties shall not have the right to direct the defense of such action on behalf of the indemnified party
or parties). No indemnifying party shall, without the prior written consent of the
indemnified parties, effect any settlement or compromise of, or consent to the entry of judgment with respect to, any pending
or threatened claim, investigation, action, suit or proceeding in respect of which indemnity or contribution may be or could have
been sought by an indemnified party under this Section 8 (whether or not the indemnified party is an actual or potential party
thereto), unless such settlement, compromise or judgment (i) includes an unconditional release of the indemnified party from all
liability arising out of such claim, investigation, action or proceeding and (ii) does not include a statement as to or an admission
of fault, culpability or any failure to act, by or on behalf of the indemnified party. No indemnifying party shall be liable for
any settlement or compromise of, or consent to the entry of judgment with respect to, any such action or claim effected without
its consent.

 

(d)          In
order to provide for contribution in circumstances in which the indemnification provided for in Section 8(a) through (c) is for
any reason held to be unavailable from any indemnifying party or is insufficient to hold harmless a party indemnified thereunder,
the Sonic Parties and the Initial Purchaser shall contribute to the aggregate losses, claims, damages, liabilities and expenses
of the nature contemplated by such indemnification provision (including any investigation, legal and other expenses incurred in
connection with, and any amount paid in settlement of, any action, suit or proceeding or any claims asserted), but after deducting
in the case of losses, claims, damages, liabilities and expenses suffered by the Sonic Parties, any contribution received by the
Sonic Parties from persons, other than the Initial Purchaser, who may also be liable for contribution, including their directors,
officers, employees and persons who control the Sonic Parties within the meaning of Section 15 of the 1933 Act or Section 20 of
the 1934 Act as incurred to which the Sonic Parties and one or more of the Initial Purchaser may be subject, in such proportions
as is appropriate to reflect the relative benefits received by the Sonic Parties and the Initial Purchaser from the offering and
sale of the Offered Notes under this Agreement or, if such allocation is not permitted by applicable law, in such proportions as
are appropriate to reflect not only the relative benefits referred to above but also the relative fault of the Sonic Parties and
the Initial Purchaser in connection with the statements or omissions which resulted in such losses, claims, damages, liabilities
or expenses, as well as any other relevant equitable considerations. The relative benefits received by the Sonic Parties and the
Initial Purchaser shall be deemed to be in the same proportion as the total proceeds from the offering and sale of the Offered
Notes under this Agreement (net of discounts and commissions but before deducting expenses) received by the Sonic Parties or their
affiliates under this Agreement, on the one hand, and the discounts or commissions received by the Initial Purchaser under this
Agreement, on the other hand, bear to the aggregate offering price to investors of the Offered Notes purchased under this Agreement,
as set forth on the cover of the

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Final
Offering Memorandum. The relative fault of each of the Sonic Parties (on the one hand) and of the Initial Purchaser (on the other
hand) shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact
or the omission or alleged omission to state a material fact relates to information supplied by the Sonic Parties or their affiliates
or the Initial Purchaser and the parties’ relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission. The Sonic Parties and the Initial Purchaser agree that it would not be just and equitable if
contribution pursuant to this Section 8(d) were determined by pro rata allocation (even if the Initial Purchaser were treated as
one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred
to above in this Section 8(d). The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified
party and referred to above in this Section 8(d) shall be deemed to include any legal or other expenses reasonably incurred by
such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any
judicial, regulatory or other legal or governmental agency or body, commenced or threatened, or any claim whatsoever based upon
any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 8(d),
(i) the Initial Purchaser shall not be required to contribute any amount in excess of the amount by which the total underwriting
discounts and commissions received by it exceeds the amount of damages that the Initial Purchaser has otherwise paid or become
liable to pay by reason of such untrue or alleged untrue statement or omission or alleged omission, and (ii) no person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution from any person
who was not guilty of such fraudulent misrepresentation. For purposes of this Section 8(d), (A) each of the Initial Purchaser Indemnified
Parties other than the Initial Purchaser shall have the same rights to contribution as the Initial Purchaser, and (B) each director,
officer or employee of the Sonic Parties and each person, if any, who controls the Sonic Parties within the meaning of Section
15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Sonic Parties, subject in each
case of (A) and (B) to clauses (i) and (ii) of the immediately preceding sentence. Any party entitled to contribution will, promptly
after receipt of notice of commencement of any action, suit or proceeding against such party in respect of which a claim for contribution
may be made against another party or parties, notify each party or parties from whom contribution may be sought, but the omission
to so notify such party or parties shall not relieve the party or parties from whom contribution may be sought from any obligation
it or they may have under this Section 8(d) or otherwise. The obligations of the Sonic Parties to contribute pursuant to this Section
8(d) shall be joint and several.

 

(e)          The
Initial Purchaser confirms and the Sonic Parties acknowledge and agree that (i) the statements with respect to the offering of
the Offered Notes by the Initial Purchaser set forth in the third to last paragraph (relating to overallotment, stabilization and
similar activities) of the section entitled “Plan of Distribution” in the Pricing Disclosure Package and the Final
Offering Memorandum and (ii) the names of the Initial Purchaser set forth on the front and back cover page of the Preliminary Offering
Memorandum and the Final Offering Memorandum constitute the only information concerning the Initial Purchaser furnished in writing
to the Sonic Parties by or on behalf of the Initial Purchaser specifically for inclusion in the Preliminary Offering Memorandum,
the Pricing Disclosure Package and the Final Offering Memorandum or in any amendment or supplement thereto or in any Blue Sky Application
(the “Initial
Purchaser Information”).

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9.         Consent.
The Initial Purchaser of the Offered Notes by its acceptance of the Offered Notes is deemed to agree, in its capacity as holder
of 100% of the Offered Notes, to (i) the Series 2018-1 Supplement, to be dated as of the Closing Date, to the Base Indenture, to
be entered into by and among the Co-Issuers and Citibank, N.A., as the Trustee and the securities intermediary thereunder, (ii)
the Fifth Supplement, to be dated as of the Closing Date, to the Base Indenture, to be entered into by and among the Co-Issuers
and Citibank, N.A., as the Trustee and the securities intermediary thereunder (such amendment, the “Base Indenture
Springing Amendment”), (iii) the Amendment No. 1 to be dated as of the Closing Date, to the Management and Consulting
Agreement, dated as of May 20, 2011, to be entered into by and among the Co-Issuers, the Guarantor, the Manager and Citibank, N.A.,
as the Trustee (such amendment the “Management Agreement Springing Amendment” and, together with the
Base Indenture Springing Amendment, the “Springing Amendments”), pursuant to which the amendments set
forth therein shall become effective upon the payment in full of (i) the Outstanding Principal Amount of the Series 2013-1 Class
A-2 Notes (as such term is defined in the Series 2013-1 Supplement, dated as of July 18, 2013, to the Base Indenture, entered into
by and among the Co-Issuers and Citibank, N.A., as the Trustee and the securities intermediary thereunder) and (ii) the Outstanding
Principal Amount of the Series 2016-1 Class A-2 Notes (as such term is defined in the Series 2016-1 Supplement, dated as of May
17, 2016, to the Base Indenture, entered into by and among the Co-Issuers and Citibank, N.A., as the Trustee and the securities
intermediary thereunder), and in their respective capacities as Noteholders hereby direct the Control Party, where such direction
from the Noteholders is required, to consent to the Springing Amendments.

 

10.       Termination.
The Initial Purchaser shall have the right to terminate this Agreement at any time prior to the Closing Date, if, at or after the
Applicable Time: (i) any domestic or international event or act or occurrence has materially disrupted, or in the opinion of the
Initial Purchaser will in the immediate future materially disrupt, the market for the Co-Issuers’ securities or securities
in general; or (ii) trading on the NYSE or NASDAQ shall have been suspended or been made subject to material limitations, or minimum
or maximum prices for trading shall have been fixed, or maximum ranges for prices for securities shall have been required, on the
NYSE or NASDAQ or by order of the Commission or any other governmental authority having jurisdiction; or (iii) a banking moratorium
has been declared by any state or federal authority or any material disruption in commercial banking or securities settlement or
clearance services shall have occurred; or (iv) (A) there shall have occurred any outbreak or escalation of hostilities or acts
of terrorism involving the United States or there is a declaration of a national emergency or war by the United States or (B) there
shall have been any other calamity or crisis or any change in political, financial or economic conditions if the effect of any
such event in (A) or (B), in the judgment of the Initial Purchaser, makes it impracticable or inadvisable to proceed with the offering,
sale and delivery of the Offered Notes, on the terms and in the manner contemplated by the Final Offering Memorandum; or (v) the
conditions set forth in Sections 7(q), 7(s) or 7(y) have not been satisfied or the Initial Purchaser shall decline to purchase
the Offered Notes for any reason permitted under this Agreement. Any notice of termination pursuant to this Section 10 shall be
in writing.

    	39

    	

    

11.       Non-Assignability.
None of the Sonic Parties may assign its rights and obligations under this Agreement. The Initial Purchaser may not assign its
rights and obligations under this Agreement, except that the Initial Purchaser shall have the right to substitute any one of its
affiliates as the purchaser of the Offered Notes that it has agreed to purchase hereunder (“Substituting Initial Purchaser”),
by a written notice to the Co-Issuers, which notice shall be signed by both the Substituting Initial Purchaser and such affiliate,
shall contain such affiliate’s agreement to be bound by this Agreement and shall contain a confirmation by such affiliate
of the accuracy with respect to it of the representations set forth in Section 3. Upon receipt of such notice, wherever the word
“Initial Purchaser” is used in this Agreement (other than in this Section 11), such word shall be deemed to refer to
such affiliate in lieu of the Substituting Initial Purchaser.

 

12.       Reimbursement
of Initial Purchaser’s Expenses. If (a) the Co-Issuers for any reason fail to tender the Offered Notes for delivery to
the Initial Purchaser, or (b) the Initial Purchaser declines to purchase the Offered Notes for any reason permitted under this
Agreement, the Sonic Parties shall jointly and severally reimburse the Initial Purchaser for all reasonable documented out-of-pocket
expenses (including fees and disbursements of counsel for the Initial Purchaser) incurred by the Initial Purchaser in connection
with this Agreement and the proposed purchase of the Offered Notes, and upon demand shall pay the full amount thereof to the Initial
Purchaser.

 

13.       Notices,
etc. All statements, requests, notices and agreements hereunder shall be in writing, and:

 

(a)          if
to Guggenheim Securities, LLC as the Initial Purchaser, shall be delivered or sent by hand delivery, mail, overnight courier or
e-mail to Guggenheim Securities, LLC, 330 Madison Avenue, New York, New York 10017, Attention: Structured Products Capital Markets
(e-mail: Cory.Wishengrad@guggenheimpartners.com; Marina.Pristupova@guggenheimpartners.com), with a copy to the General Counsel
(e-mail: alex.sheers@guggenheim.com) and with a copy to White & Case LLP, 1221 Avenue of the Americas, New York, New York 10020,
Attention: David Thatch (e-mail: dthatch@whitecase.com); and

 

(b)          if
to any of the Sonic Parties, shall be delivered or sent by hand delivery, mail, overnight courier, with a copy by e-mail, to Sonic
Corp., 300 Johnny Bench Drive, Oklahoma City, Oklahoma, 73104, Attention: Claudia San Pedro (e-mail: claudia.sanpedro@sonicdrivein.com),
with a copy to Skadden, Arps, Slate, Meagher & Flom LLP, Four Times Square, New York, New York, 10036, Attention: David H.
Midvidy, Esq. (e-mail: david.midvidy@skadden.com).

 

Any
such statements, requests, notices or agreements shall take effect at the time of receipt thereof.

 

14.       Persons
Entitled to Benefit of Agreement. This Agreement shall inure to the benefit of and be binding upon the Initial Purchaser, the
Sonic Parties and their respective successors. This Agreement and the terms and provisions hereof are for the sole benefit of only
those persons, except that the representations, warranties, indemnities and agreements of Sonic

    	40

    	

    

Parties
contained in this Agreement shall also be deemed to be for the benefit of the Initial Purchaser Indemnified Parties and, in the
case of Section 8(b) only, the Sonic Indemnified Parties. Nothing in this Agreement is intended or shall be construed to give any
person, other than the persons referred to in this Section 14, any legal or equitable right, remedy or claim under or in respect
of this Agreement or any provision contained herein.

 

15.       Survival.
The respective indemnities, rights of contribution, representations, warranties and agreements of any of the Sonic Parties and
the Initial Purchaser contained in this Agreement or made by or on behalf of them, respectively, pursuant to this Agreement, shall
survive the delivery of and payment for the Offered Notes and shall remain in full force and effect, regardless of any termination
of this Agreement or any investigation made by or on behalf of any of them or any person controlling any of them.

 

16.       Definition
of the Terms “Business Day”, “Affiliate”, and “Subsidiary”. For purposes of this Agreement,
(a) “business day” means any day on which the New York Stock Exchange, Inc. is open for trading, and (b) “affiliate”
and “subsidiary” have the meanings set forth in Rule 405 under the 1933 Act.

 

17.       Governing
Law. This Agreement and any claim, controversy or dispute arising under or related to this Agreement shall be governed by
and construed in accordance with the laws of the State of New York.

 

18.       Submission
to Jurisdiction and Venue. Each of the parties hereto hereby irrevocably and unconditionally:

 

(a)          submits
for itself and its property in any legal action or proceeding relating to this Agreement or any of the transactions contemplated
hereby, or for recognition and enforcement of any judgment in respect thereof, to the non-exclusive general jurisdiction of the
courts of the State of New York, the courts of the United States for the Southern District of New York, and appellate courts from
any thereof;

 

(b)          consents
that any such action or proceeding may be brought in such courts and waives any objection that it may now or hereafter have to
the venue of any such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient court
and agrees not to plead or claim the same;

 

(c)          agrees
that service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified mail
(or any substantially similar form of mail), postage prepaid, to any party hereto at its address set forth in Section 13 or at
such other address of which such party shall have been notified pursuant thereto; and

 

(d)          agrees
that nothing herein shall affect the right to effect service of process in any other manner permitted by law or shall limit the
right to sue in any other jurisdiction; and waives, to the maximum extent not prohibited by law, any right it may have to claim
or recover in any legal action or proceeding referred to in this Section 18 any special, exemplary, punitive or consequential damages.

    	41

    	

    

Each
of Sonic Parties and the Initial Purchaser agree that any suit, action or proceeding arising out of or based upon this Agreement
or the transactions contemplated hereby may be instituted in any State or U.S. federal court in The City of New York and County
of New York, and waives any objection that such party may now or hereafter have to the laying of venue of any such proceeding,
and irrevocably submits to the non-exclusive jurisdiction of such courts in any suit, action or proceeding.

 

19.       Waiver
of Jury Trial. The Co-Issuers, the Parent Companies, the Manager, the Guarantor and the Initial Purchaser hereby irrevocably
waive, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out
of or relating to this Agreement or the transactions contemplated hereby.

 

20.       No
Fiduciary Duty. The Sonic Parties acknowledge and agree that (a) the purchase and sale of the Offered Notes pursuant to this
Agreement, including the determination of the offering price of the Offered Notes and any related discounts and commissions, is
an arm’s-length commercial transaction between the Sonic Parties, on the one hand, and the Initial Purchaser, on the other
hand, (b) in connection with the offering, sale and the delivery of the Offered Notes and the process leading thereto, the Initial
Purchaser and its representatives are and have been acting solely as a principal and is not the agent or fiduciary of any Sonic
Party, any of its respective subsidiaries or its respective stockholders, creditors, employees or any other party, (c) neither
the Initial Purchaser nor any of its representatives has assumed or will assume an advisory, agency or fiduciary responsibility
in favor of any Sonic Party with respect to the offering, sale and delivery of the Offered Notes or the process leading thereto
(irrespective of whether such Initial Purchaser or its representative has advised or is currently advising the Sonic Parties or
any of their respective subsidiaries on other matters) and neither the Initial Purchaser nor its representatives has any obligation
to the Sonic Parties with respect to the offering of the Offered Notes except the obligations expressly set forth in this Agreement,
(d) the Initial Purchaser and its affiliates and representatives may be engaged in a broad range of transactions that involve interests
that differ from those of the Sonic Parties, (e) any duties and obligations that the Initial Purchaser may have to the Sonic Parties
shall be limited to those duties and obligations specifically stated herein, and (f) the Initial Purchaser has not provided any
legal, accounting, regulatory or tax advice with respect to the offering of the Offered Notes and the Sonic Parties have consulted
their own respective legal, accounting, regulatory and tax advisors to the extent they deemed appropriate. The Sonic Parties hereby
waive any claims that they each may have against the Initial Purchaser with respect to any breach of fiduciary duty in connection
with the Offered Notes.

 

21.       Counterparts.
This Agreement may be executed in one or more counterparts, including by facsimile and other means of electronic transmission,
and, if executed in more than one counterpart, the executed counterparts shall each be deemed to be an original but all such counterparts
shall together constitute one and the same instrument.

 

22.       Headings.
The headings herein are inserted for convenience of reference only and are not intended to be part of, or to affect the meaning
or interpretation of, this Agreement.

 

23.       Severability.
In case any provision of this Agreement shall be deemed invalid, illegal or unenforceable, the validity, legality and enforceability
of the remaining provisions shall not in any way be affected or impaired thereby.

    	42

    	

    

If
the foregoing correctly sets forth the agreement among the Sonic Parties and the Initial Purchaser, please indicate your acceptance
in the space provided for that purpose below.

 

	 	Very
truly yours,
	 	 	 
	 	 	SONIC CAPITAL LLC
	 	 	 	 
	 	 	By:	/s/ Claudia S. San Pedro 
	 	 	 	Name: Claudia S. San Pedro
	 	 	 	Title: Executive Vice President and Chief Financial Officer
	 	 	 	 
	 	 	SONIC INDUSTRIES LLC
	 	 	 
	 	 	By:	/s/ Claudia S. San Pedro 
	 	 	 	Name: Claudia S. San Pedro
	 	 	 	Title: Executive Vice President and Chief Financial Officer
	 	 	 	 
	 	 	AMERICA’S DRIVE-IN BRAND PROPERTIES LLC
	 	 	 	 
	 	 	By:	/s/ Claudia S. San Pedro 
	 	 	 	Name: Claudia S. San Pedro
	 	 	 	Title: Executive Vice President and Chief Financial Officer
	 	 	 	 
	 	 	AMERICA’S DRIVE-IN RESTAURANTS LLC
	 	 	 
	 	 	By: 	/s/ Claudia S. San Pedro 
	 	 	 	Name: Claudia S. San Pedro
	 	 	 	Title: Senior Vice President and Chief Financial Officer

 

[Signature Page to Purchase Agreement]

    	 

    	

    

	 	SRI REAL ESTATE HOLDING LLC
	 	 
	 	By: 	/s/ Claudia
    S. San Pedro 
	 	 	Name: Claudia S. San Pedro
	 	 	Title: Senior Vice President and Chief Financial Officer
	 	 	 
	 	SRI REAL ESTATE PROPERTIES LLC
	 	 
	 	By:	/s/ Claudia S. San Pedro 
	 	 	Name: Claudia S. San Pedro
	 	 	Title: Senior Vice President and Chief Financial Officer
	 	 	 
	 	SONIC FRANCHISING LLC
	 	 
	 	By:	/s/ Claudia S. San Pedro 
	 	 	Name: Claudia S. San Pedro
	 	 	Title: Executive Vice President and Chief Financial Officer
	 	 	 
	 	SONIC INDUSTRIES SERVICES INC.
	 	 
	 	By:	/s/ Claudia S. San Pedro 
	 	 	Name: Claudia S. San Pedro
	 	 	Title: Executive Vice President and Chief Financial Officer
	 	 	 
	 	SONIC RESTAURANTS, INC.
	 	 
	 	By:	/s/ Claudia S. San Pedro 
	 	 	Name: Claudia S. San Pedro
	 	 	Title: Senior Vice President and Chief Financial Officer

 

[Signature Page to Purchase Agreement]

    	 

    	

    

	 	SONIC CORP.
	 	 
	 	By: 	/s/ Claudia
    S. San Pedro 
	 	 	Name: Claudia S. San Pedro
	 	 	Title: Executive Vice President and Chief Financial Officer

 

Accepted:

 

GUGGENHEIM
SECURITIES, LLC,

as
the Initial Purchaser

 

	By: 	/s/ Cory Wishengrad	 
	 	Name: Cory Wishengrad	 
	 	Title: Senior Managing Director	 

 

[Signature Page to Purchase Agreement]

    	 

    	

    

SCHEDULE I

 

[RESERVED]

    	 

    	

    
Schedule
II

 

PRICING TERM SHEET

 

SONIC CAPITAL LLC

SONIC INDUSTRIES LLC

AMERICA’S DRIVE-IN
BRAND PROPERTIES LLC

AMERICA’S DRIVE-IN
RESTAURANT LLC

SRI REAL ESTATE HOLDINGS
LLC

SRI REAL ESTATE PROPERTIES
LLC

 

Pricing Supplement dated
January 23, 2018 to the Preliminary Offering Memorandum 

dated January 16, 2018

$170,000,000 Series
2018-1 4.026% Fixed Rate Senior Secured Notes, Class A-2

 

	Gross Proceeds to the Co-Issuers:	$170,000,000
	Price to Investors:	100.0%
	Interest/Coupon Rate:	4.026% per annum
	Ratings (S&P):	“BBB”
	Trade Date:	January 23, 2018
	Closing Date:	February 1, 2018 (T+7)
	
        Initial
        Purchaser:

         
	Guggenheim Securities, LLC
	Anticipated Repayment Date:	Payment Date occurring in February 2025.
	Series 2018-1 Legal Final Maturity Date:	
        Payment
        Date occurring in February 2048.

         

	First Payment Date:	March 20, 2018
	Monthly Collection Period:	
        Each
        period from and including the first day of each calendar month to and including the last day of such calendar month.
        

         

	Interest Period:	
        For
        purposes of the first Payment Date, the Interest Period for the Offered Notes will be the period from and including the Closing
        Date to but excluding March 20, 2018, which, for the avoidance of doubt, will be 49 days as calculated on a “30/360”
        basis.

         

 

     

     

    

	
        Series 2018-1 Post-ARD

        Contingent
        Interest:
	A per annum rate equal to the greater of (a) 5% per annum and (b) a per annum rate equal to the excess, if any, by which (i) the sum of (A) the yield to maturity (adjusted to a “mortgage equivalent basis” for a monthly-pay security pursuant to the standards and practices of the Securities Industry and Financial Markets Association), on such Tranche’s Series 2018-1 Anticipated Repayment Date of the United States Treasury Security having a term closest to 10 years plus (B) 5% plus (C) 1.50% exceeds (ii) such Tranche’s Series 2018-1 Class A-2 Note Rate.
	Rule 144A CUSIP/ISIN Numbers:	83546D AF5 / US83546DAF50
	Reg S CUSIP/ISIN Numbers	U83549 AE2 / USU83549AE27
	Distribution:	Rule 144A and Reg S Compliant

 

This
Pricing Supplement (this “Pricing Supplement”) is qualified in its entirety by reference to the Preliminary
Offering Memorandum, dated January 16, 2018, of Sonic Capital LLC, Sonic Industries LLC, America’s Drive-In Restaurants LLC,
America’s Drive-In Brand Properties LLC, SRI Real Estate Holding and SRI Real Estate Properties LLC (the “Preliminary
Offering Memorandum”). The information in this Pricing Supplement supersedes the information in the Preliminary Offering
Memorandum to the extent inconsistent with the information in the Preliminary Offering Memorandum. Capitalized terms used herein
and not defined herein have the meanings assigned in the Preliminary Offering Memorandum.

THE
OFFERED NOTES ARE SOLELY THE JOINT AND SEVERAL OBLIGATIONS OF THE CO-ISSUERS (GUARANTEED BY THE GUARANTOR). THE OFFERED NOTES DO
NOT REPRESENT OBLIGATIONS OF THE MANAGER OR ANY OF ITS AFFILIATES (OTHER THAN THE CO-ISSUERS AND THE GUARANTOR), OFFICERS, DIRECTORS,
SHAREHOLDERS, MEMBERS, PARTNERS, REPRESENTATIVES OR AGENTS. THE OFFERED NOTES ARE NOT INSURED OR GUARANTEED BY ANY GOVERNMENTAL
AGENCY. THE OFFERED NOTES REPRESENT NON-RECOURSE OBLIGATIONS OF THE CO-ISSUERS (GUARANTEED BY THE GUARANTOR) AND ARE PAYABLE SOLELY
FROM THE COLLATERAL AND PROSPECTIVE INVESTORS SHOULD MAKE AN INVESTMENT DECISION BASED UPON AN ANALYSIS OF THE SUFFICIENCY OF THE
COLLATERAL.

2

     

     

    

 THE
ISSUANCE AND SALE OF THE OFFERED NOTES HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“1933 ACT”), OR ANY STATE SECURITIES LAW AND NO SERIES 2018-1 CLASS A-2 NOTEHOLDER WILL HAVE THE RIGHT TO REQUIRE
SUCH REGISTRATION. THE OFFERED NOTES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS (AS DEFINED IN RULE 902
UNDER THE 1933 ACT) UNLESS THE OFFERED NOTES ARE REGISTERED UNDER THE 1933 ACT OR AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS
IS AVAILABLE. THE OFFERED NOTES ARE BEING SOLD ONLY TO THE MASTER ISSUER OR PERSONS THAT THE INITIAL PURCHASER REASONABLY BELIEVES
TO BE AFFILIATES OF THE MASTER ISSUER, OR PERSONS THAT THE INITIAL PURCHASER REASONABLY BELIEVES TO BE (I) “QUALIFIED INSTITUTIONAL
BUYERS” AS DEFINED IN RULE 144A UNDER THE 1933 ACT, OR (II) NOT “U.S. PERSONS” (AS DEFINED IN RULE 902 UNDER
THE 1933 ACT) IN OFFSHORE TRANSACTIONS IN RELIANCE ON REGULATION S UNDER THE 1933 ACT, AND, IN THE CASE OF (I) AND (II), THAT
ARE NOT COMPETITORS. BECAUSE THE OFFERED NOTES ARE NOT REGISTERED, THEY ARE SUBJECT TO CERTAIN RESTRICTIONS ON RESALE DESCRIBED
UNDER “TRANSFER RESTRICTIONS” IN THE PRELIMINARY OFFERING MEMORANDUM.

3 

    	 

    	

    

Schedule
III

 

		A.	Additional Materials provided to Investors in connection with the Preliminary Offering Memorandum:

		1.	Model runs and the inputs and outputs thereto and thereof provided to prospective investors with
respect to the Preliminary Offering Memorandum (the final runs, the “Investor Model Runs”), which Investor
Model Runs have been subject to the procedures set forth in the Initial AUP Letter, based on the Excel files titled:

		·	2018.01.12__SONC_Model_Scenario_Zero_Growth_Case.xlsm

		·	2018.01.12__SONC_Model_Scenario_Breakeven_Case_Haircut thru Prin.xlsm

		·	2018.01.12__SONC_Model_Scenario_Breakeven_Case_Haircut thru Post-ARD.xlsm

		·	2018.01.12__SONC_Model_Scenario_Breakeven_Case_Annual thru Prin.xlsm

		·	2018.01.12__SONC_Model_Scenario_Breakeven_Case_Annual thru Post-ARD.xlsm

		·	1a - 2018.01.17_AIG_SONC_Model_Scenario_Breakeven_Case_Haircut thru Prin.xlsm

		·	1b - 2018.01.17_AIG_SONC_Model_Scenario_Breakeven_Case_Haircut thru Post-ARD.xlsm

		·	1c - 2018.01.17_AIG_SONC_Model_Scenario_Breakeven_Case_Haircut thru Prin.xlsm

		·	1d - 2018.01.17_AIG_SONC_Model_Scenario_Breakeven_Case_Haircut thru Post-ARD.xlsm

		·	2a - 2018.01.17_AIG_SONC_Model_Scenario_Breakeven_Case_Haircut thru Post-ARD.xlsm

		·	2b - 2018.01.17_AIG_SONC_Model_Scenario_Breakeven_Case_Haircut thru Post-ARD.xlsm

		·	3a - 2018.01.17_AIG_SONC_Model_Scenario_Breakeven_Case_Haircut thru Prin.xlsm

		·	3b - 2018.01.17_AIG_SONC_Model_Scenario_Breakeven_Case_Haircut thru Post-ARD.xlsm

		·	3c - 2018.01.17_AIG_SONC_Model_Scenario_Breakeven_Case_Haircut thru Prin.xlsm

     

     

    

		·	3d - 2018.01.17_AIG_SONC_Model_Scenario_Breakeven_Case_Haircut thru Post-ARD.xlsm

		·	4a - 2018.01.17_AIG_SONC_Model_Scenario_Breakeven_Case_Haircut thru Prin.xlsm

		·	4b - 2018.01.17_AIG_SONC_Model_Scenario_Breakeven_Case_Haircut thru Post-ARD.xlsm

		·	5A-a - 2018.01.17_AIG_SONC_Model_Scenario_1.55x DSCR_Haircut.xlsm

		·	5A-b - 2018.01.17_AIG_SONC_Model_Scenario_1.55x DSCR_Haircut.xlsm

		·	5B-a - 2018.01.17_AIG_SONC_Model_Scenario_$2.755bn Sales_Haircut.xlsm

		·	5B-b - 2018.01.17_AIG_SONC_Model_Scenario_$2.755bn Sales_Haircut.xlsm

		·	6a - 2018.01.17_AIG_SONC_Model_Scenario_1.25x DSCR_Haircut.xlsm

		·	6b - 2018.01.17_AIG_SONC_Model_Scenario_1.25x DSCR_Haircut.xlsm

		·	7 - 2018.01.17_AIG_SONC_Model_Scenario_Yr 2 Sales 25% Haircut.xlsm

		·	8 - 2018.01.17_AIG_SONC_Model_Scenario_Breakeven_Case_Annual thru Post-ARD.xlsm

		·	9 - 2018.01.17_AIG_SONC_Model_Scenario_Breakeven_Case_Annual thru Prin.xlsm

		·	1 - 2018.01.19_AIG_SONC_Model_Scenario_Drop sales 8% Yr 1-3; 25% store HC Yr 4.xlsm

		·	2 - 2018.01.19_AIG_SONC_Model_Scenario_Drop sales 8% Yr 7-9; 25% store HC Yr 10.xlsm

		·	0 - 2018.01.16_Athene_SONC_Model_Scenario_Zero_Growth_Case.xlsm

		·	1 - 2018.01.16_Athene_SONC_Model_Scenario_100% Cash Sweep_Haircut.xlsm

		·	2 - 2018.01.16_Athene_SONC_Model_Scenario_Breakeven_Case_Haircut thru Prin.xlsm

		·	3 - 2018.01.16_Athene_SONC_Model_Scenario_Shock AUV Yr 1-7.xlsm

		·	4 - 2018.01.16_Athene_SONC_Model_Scenario_Shock Store Growth Yr 1-7.xlsm

2 

     

     

    

		·	5 - 2018.01.16_Athene_SONC_Model_Scenario_Shock AUV & Store Growth Yr 1-7.xlsm

		·	6 - 2018.01.16_Athene_SONC_Model_Scenario_Avoid Int Shortfall - Shock Store Growth Yr 1-7.xlsm

		·	7 - 2018.01.16_Athene_SONC_Model_Scenario_Avoid Int Shortfall - Shock AUV Yr 1-7.xlsm

		·	8 - 2018.01.16_Athene_SONC_Model_Scenario_100% Cash Sweep Shock Store Growth Yr 1-7.xlsm

		·	9 - 2018.01.16_Athene_SONC_Model_Scenario_100% Cash Sweep Shock AUV Yr 1-7.xlsm

		·	10 - 2018.01.16_Athene_SONC_Model_Scenario_100% Cash Sweep Shock Store Growth & AUV Yr 1-7.xlsm

		·	11 - 2018.01.16_Athene_SONC_Model_Scenario_Shock Store Growth & AUV Yr 4-8.xlsm

		·	12 - 2018.01.16_Athene_SONC_Model_Scenario_No Int Shortfall - Shock Store Growth & AUV Yr 4-8.xlsm

		·	13 - 2018.01.16_Athene_SONC_Model_Scenario_100% Cash Sweep - Shock Store Growth & AUV Yr 4-8.xlsm

		2.	Responses to questions from prospective investors:

		N/A	

B.       Investor
Presentation attached as Exhibit 1

3 

    	 

    	

    

Exhibit
1

 

Management
Presentation dated January 2018, Series 2018-1 Fixed Rate Senior Notes (the “Investor Presentation”)

    	 

    	

    

Exhibit
2-A

 

Skadden,
Arps, Slate, Meagher & Flom LLP Opinions

 

Skadden 2018 Corporate Opinion

 

1.          Based
solely on our review of the Delaware Certificates, each Delaware Opinion Party is duly incorporated or formed, as applicable, and
is validly existing and in good standing under the DGCL or the DLLCA, as applicable.

 

2.          Each
Delaware Opinion Party has or had, as applicable, the corporate or limited liability company, as applicable, power and authority
to execute and deliver each of the Transaction Documents to which such Delaware Opinion Party is a party and to perform all its
obligations thereunder, including, if such Delaware Opinion Party is a Co-Issuer, the issuance and sale of the Class A-2 Notes,
under the DGCL or the DLLCA, as applicable.

 

3.          Each
of the Transaction Documents to which a Delaware Opinion Party is a party has been duly authorized, executed and delivered by all
requisite corporate or limited liability company, as applicable, action on the part of such Delaware Opinion Party under the DGCL
or the DLLCA, as applicable.

 

4.          (A)
Each of the Transaction Agreements (other than the IP Transaction Agreements) to which an Opinion Party is a party constitutes
the valid and binding obligation of such Opinion Party, enforceable against such Opinion Party in accordance with its terms under
the laws of the State of New York. (B) Each of the IP Transaction Agreements to which an Opinion Party is a party constitutes the
valid and binding obligation of such Opinion Party, enforceable against such Opinion Party in accordance with its terms under the
laws of the State of Delaware.

 

5.          Neither
the execution and delivery by each Delaware Opinion Party of the Transaction Documents to which such Delaware Opinion Party is
a party nor the performance of its obligations thereunder, including, if such Delaware Opinion Party is a Co-Issuer, the issuance
and sale of the Class A-2 Notes: (i) conflicts or conflicted, as applicable, with the Organizational Documents of such Delaware
Opinion Party or (ii) violates the DGCL or the DLLCA, as applicable, or any law, rule or regulation of the State of New York, the
United States of America.

 

6.          Neither
the execution and delivery by each Opinion Party of the Transaction Documents to which such Opinion Party is a party nor the performance
of all its obligations thereunder, including, if such Opinion Party is a Co-Issuer, the issuance and sale of the Class A-2 Notes,
requires the consent, approval, licensing or authorization of, or any filing, recording or registration with, any governmental
authority under any law, rule or regulation of the State of New York or the United States of America, as applicable, except for
those consents, approvals, licenses and authorizations already obtained and those filings, recordings and registrations already
made.

 

7.          Each
Opinion Party is not and, solely after giving effect to the offering and sale of the Class A-2 Notes and the application of the
proceeds thereof as described in the Offering Memorandum, will not be an “investment company” as such term is defined
in Section 3(a)(1) of

    	 

    	

    

the
Investment Company Act of 1940, as amended, and each Opinion Party is not a “covered
fund” for purposes of regulations adopted under Section 13 of the Bank Holding Company Act of 1956, as amended.

 

8.          The
Class A-2 Notes have been duly authorized by all requisite limited liability company action on the part of the Co-Issuers that
are Delaware LLC Opinion Parties and duly executed by such Co-Issuers under the DLLCA, and when duly authenticated by the Trustee
and issued and delivered by the Co-Issuers against payment therefor in accordance with the terms of the Note Purchase Agreements
and the Indenture, the Class A-2 Notes will constitute valid and binding obligations of the Co-Issuers, entitled to the benefits
of the Indenture and enforceable against the Co-Issuers in accordance with their terms under the laws of the State of New York.

 

9.          Assuming
(i) the accuracy of the representations and warranties of the Opinion Parties party thereto set forth in Section 2(a) through 2(g)
of the Class A-2 NPA and of the Initial Purchaser in Sections 3(b), (d) and (e) of the Class A-2 NPA, (ii) the due performance
by such Opinion Parties of the covenants and agreements set forth in Section 5(e) through (h), (n) through (p) and (s) of the Class
A-2 NPA and the due performance by the Initial Purchaser of the covenants and agreements set forth in Section 3(b), (d) and (e)
of the Class A-2 NPA, and (iii) the compliance by the Initial Purchaser with the offering and transfer procedures and restrictions
described in the Offering Memorandum, the offer, sale and delivery of the Class A-2 Notes to the Initial Purchaser in the manner
contemplated by the Offering Memorandum and the Class A-2 NPA and the initial resale of the Class A-2 Notes by the Initial Purchaser
in the manner contemplated in the Offering Memorandum and the Class A-2 NPA, do not require registration under the Securities Act
of 1933, as amended, or qualification of the Indenture under the Trust Indenture Act of 1939, as amended, it being understood that
we do not express any opinion with respect to any subsequent reoffer or resale of any Class A-2 Notes.

 

Skadden
2018 Voluntary Bankruptcy Opinion

 

10.          Based
on and subject to the facts and assumptions set forth above, the discussion contained in the opinion and the reasoned analysis
of analogous case law (although there is no precedent directly on point), and the qualifications set forth in the opinion, we are
of the opinion that in a properly presented and argued case by a party with standing to seek dismissal of a Voluntary Case based
on an Opinion Party’s failure to comply with those provisions of its LLC Agreement requiring the unanimous written consent
of its Managers to commence a Voluntary Case, as a legal matter, and based upon existing case law, (i) the provisions of each Opinion
Party’s LLC Agreement requiring the unanimous written consent of such Opinion Party’s Managers to commence a Voluntary
Case constitute the valid and binding obligation of the Member of such Opinion Party, enforceable against such Member in accordance
with their terms under the laws of the State of Delaware, and (ii) a bankruptcy court, in determining each Opinion Party’s
authority to commence a Voluntary Case, would rule that compliance with such provisions of such Opinion Party’s LLC Agreement
is necessary to commence a Voluntary Case.

 

Skadden 2018 Conditions Precedent
Opinion for 2018-1 Series Supplement

 

11.          The
execution of the Series 2018-1 Supplement is permitted by the Base Indenture and that all conditions precedent to the execution
and delivery of the Series 2018-1 Supplement under the Base Indenture and the Series 2018-1 Supplement have been satisfied.

    	 

    	

    

12.          The
Notes and the Company Order conform to the requirements of the Base Indenture and the Series 2018-1 Supplement, and the Notes are
permitted to be authenticated by the Trustee pursuant to the terms of the Base Indenture and the Series 2018-1 Supplement.

 

Skadden
2018 Security Interest Opinion

 

13.          Under
the New York UCC, the provisions of the Indenture are effective to create a security interest in each Co-Issuer’s rights
in the UCC Collateral in favor of the Trustee to secure the Obligations (as defined in the Indenture).

 

14.          Under
the New York UCC, the provisions of the G&C Agreement are effective to create a security interest in the Franchisor’s
rights in the UCC Collateral in favor of the Trustee to secure the Obligations (as defined in the Indenture).

 

15.          Under
the Delaware UCC, the security interest of the Trustee was perfected in each Delaware Grantor’s rights in that portion of
the UCC Collateral in which a security interest can be perfected under the Delaware UCC by the filing of a financing statement
in the Delaware Filing Office upon the later of the attachment of the security interest and the filing of the Delaware Financing
Statement identifying such Grantor as debtor in the Delaware Filing Office.

 

16.          Under
the New York UCC, the provisions of each Control Agreement are effective to perfect the security interest of the Trustee in each
Grantor’s rights in the respective Collateral Account.

 

17.          To
the extent that the provisions of the Copyright Act of 1976 (17 U.S.C. § 101, et seq.) (the “Copyright Act”) pertaining
to the transfer of copyright ownership preempt the provisions of the applicable UCC requiring the filing of a financing statement
for the perfection of a security interest in copyrights, the recordation of the Copyright Security Agreement in the United States
Copyright Office (the “USCO”) against the U.S. registered copyrights identified by the copyright registration numbers
set forth on Schedule 1 to the Copyright Security Agreement (the “Copyrights”) within one (1) month after its execution
perfected the Trustee’s security interest in the IP Holder’s right, title and interest in the Copyrights.

 

18.          To
the extent that the provisions of the Lanham (Trademark) Act (15 U.S.C. § 1051, et seq.) (the “Lanham Act”) pertaining
to the assignment of trademarks preempt the provisions of the applicable UCC requiring the filing of a financing statement for
the perfection of a security interest in trademarks, the recordation of (i) the 2017 Supplemental Trademark Security Agreement
in the United States Patent and Trademark Office (the “PTO”) against the U.S. registered trademarks and trademark applications
identified by the trademark and trademark application numbers set forth on Schedule 1 to the 2017 Supplemental Trademark Security
Agreement (the “2017 Supplemental Trademarks”) within three (3) months after its date perfected the Trustee’s
security interest in the IP Holder’s right, title and interest in such 2017 Supplemental Trademarks, (ii) the 2016 Supplemental
Trademark Security Agreement in the PTO against the U.S. registered trademarks and trademark applications identified by the trademark
and trademark application numbers set forth on Schedule 1 to the 2016 Supplemental Trademark Security Agreement (the “2016
Supplemental Trademarks”) within three (3) months after its date perfected the Trustee’s security interest in the IP
Holder’s right, title and interest in

    	 

    	

    

such
2016 Supplemental Trademarks, and (iii) the Trademark Security Agreement in the PTO against the U.S. registered trademarks and
trademark applications identified by the trademark and trademark application numbers set forth on Schedule 1 to the Trademark Security
Agreement (the “Existing Trademarks” and, together with the 2016 Supplemental Trademarks and the 2017 Supplemental
Trademarks, the “Trademarks”) within three (3) months after its date perfected the Trustee’s security interest
in the IP Holder’s right, title and interest in such Existing Trademarks.

 

19.          To
the extent that the provisions of the United States Patent Act (35 U.S.C. § 1, et seq.) (the “Patent Act”) pertaining
to the assignment, grant or conveyance of patents preempt the provisions of the applicable UCC requiring the filing of a financing
statement for the perfection of a security interest in patents, the recordation of (i) the Supplemental Patent Security Agreement
in the PTO against the U.S. patents and patent applications identified by the patent and patent application numbers set forth on
Schedule 1 to the 2016 Supplemental Patent Security Agreement (the “Supplemental Patents”) within three (3) months
from its date perfected the Trustee’s security interest in the IP Holder’s right, title and interest in such Supplemental
Patents, and (ii) the Patent Security Agreement in the PTO against the U.S. patents and patent applications identified by the patent
and patent application numbers set forth on Schedule 1 to the Patent Security Agreement the “Existing Patents” and,
together with the Supplemental Patents, the “Patents”) within three (3) months from its date perfected the Trustee’s
security interest in the IP Holder’s right, title and interest in such Existing Patents.

 

Skadden
2018 Tax Opinion

 

20.          Accordingly,
based upon and subject to the assumptions and qualifications contained in the opinion, although there are no cases or other precedent
directly on point, we are of the opinion that the Offered Notes will be treated as debt for U.S. federal income tax purposes.

 

21.          Accordingly,
based on the assumptions and qualifications contained in the opinion and as of the date of the opinion, for U.S. federal income
tax purposes, the issuance of the Offered Notes will not cause the Notes of any outstanding Series or Class that were characterized
as debt at the time of their issuance to be characterized as other than debt at the time of the issuance of the Offered Notes.

 

22.          Based
upon the assumptions and qualifications contained in the opinion and in reliance thereon, we hereby confirm that, although the
discussion set forth in the Offering Memorandum under the heading “Certain U.S. Federal Income Tax Consequences” does
not purport to discuss all possible United States federal income tax consequences of the purchase, ownership, and disposition of
the Notes, subject to the agreements, qualifications, assumptions, and Co-Issuers’ determinations referred to therein, such
discussion constitutes, in all material respects, a fair and accurate summary of the United States federal income tax consequences
of the purchase, ownership, and disposition of the Notes under current United States federal income tax law.

 

Skadden 2018 Back-Up Security
Interest Opinion

 

23.          We
call to your attention that each Contribution Agreement purported to sell the

    	 

    	

    

Contributed
Assets, and we do not express any opinion with respect to the proper characterization of the transfer. However, if in each case
the transfer was characterized as a lien, the provisions of each Contribution Agreement were effective under the New York UCC to
create a security interest in each Grantor’s rights in the Contributed Assets (as defined in the applicable Contribution
Agreement) in favor of the related Secured Party in each case to secure a loan in the aggregate value of the Contributed Assets
(as defined in the applicable Contribution Agreement).

 

24.          Under
the Delaware UCC, the security interest of the Former Franchise Assets Holder was perfected in the Master Issuer’s rights
in that portion of the UCC Collateral related to the Franchise Assets Contribution Agreement in which a security interest can be
perfected under the Delaware UCC by the filing of a financing statement in the Delaware Filing Office upon the later of the attachment
of the security interest and the filing of the Delaware Financing Statement identifying the Master Issuer as debtor in the Delaware
Filing Office.

 

25.          Under
the Delaware UCC, the security interest of the IP Holder was perfected in the Franchise Assets Holder’s rights in that portion
of the UCC Collateral related to the IP Assets Contribution Agreement in which a security interest can be perfected under the Delaware
UCC by the filing of a financing statement in the Delaware Filing Office upon the later of the attachment of the security interest
and the filing of the Delaware Financing Statement identifying the Franchise Assets Holder as debtor in the Delaware Filing Office.

 

26.          Under
the Delaware UCC, the security interest of ADR was perfected in the Franchise Assets Holder’s rights in that portion of the
UCC Collateral related to the Kansas Assets Contribution Agreement in which a security interest can be perfected under the Delaware
UCC by the filing of a financing statement in the Delaware Filing Office upon the later of the attachment of the security interest
and the filing of the Delaware Financing Statement identifying the Franchise Assets Holder as debtor in the Delaware Filing Office.

 

27.          To
the extent that the provisions of the Copyright Act of 1976 (17 U.S.C. § 101, et seq.) (the “Copyright Act”) pertaining
to the transfer of copyright ownership preempt the provisions of the applicable UCC requiring the filing of a financing statement
for the perfection of a security interest in copyrights, the recordation of the Copyright Security Agreement in the United States
Copyright Office (the “USCO”) against the U.S. registered copyrights identified by the copyright registration numbers
set forth on Schedule 1 to the Copyright Security Agreement (the “Copyrights”) within one (1) month after its execution
perfected the IP Holder’s security interest in ADIC Holdco’s right, title and interest in the Copyrights.

 

28.          To
the extent that the provisions of the Lanham (Trademark) Act (15 U.S.C. § 1051, et seq.) (the “Lanham Act”) pertaining
to the assignment of trademarks preempt the provisions of the applicable UCC requiring the filing of a financing statement for
the perfection of a security interest in trademarks, the recordation of the Trademark Security Agreement in the United States Patent
and Trademark Office (the “PTO”) against the U.S. registered trademarks and trademark applications identified by the
trademark and trademark application numbers set forth on Schedule 1 to the Trademark Security Agreement (the “Trademarks”)
within three (3) months after its date perfected the IP Holder’s security interest in ADIC Holdco’s right, title and
interest in such Trademarks.

    	 

    	

    

29.          To
the extent that the provisions of the United States Patent Act (35 U.S.C. § 1, et seq.) (the “Patent Act”) pertaining
to the assignment, grant or conveyance of patents preempt the provisions of the applicable UCC requiring the filing of a financing
statement for the perfection of a security interest in patents, the recordation of the Patent Security Agreement in the PTO against
the U.S. patents and patent applications identified by the patent and patent application numbers set forth on Schedule 1 to the
Patent Security Agreement (the “Patents”) within three (3) months from its date perfected the IP Holder’s security
interest in ADIC Holdco’s right, title and interest in such Patents.

 

Skadden
2018 Negative Assurance Letter

 

30.          On
the basis of the assumptions and qualifications contained in the negative assurance letter, no facts have come to the attention
of Skadden, Arps, Slate, Meagher & Flom LLP that have caused it to believe that the Offering Memorandum, as of its date and
as of the date hereof, contained or contains an untrue statement of a material fact or omitted or omits to state a material fact
necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading
(except that in each case we do not express any view as to the financial statements, schedules and other financial information
or Other Excluded Information (as defined below) included or incorporated by reference therein or excluded therefrom). In addition,
on the basis of the foregoing, no facts have come to our attention that have caused us to believe that the Disclosure Package,
as of the Applicable Time (as defined below), contained an untrue statement of a material fact or omitted to state a material fact
necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading
(except that we do not express any view as to the financial statements, schedules, other financial information or Other Excluded
Information included or incorporated by reference therein or excluded therefrom).

 

31.          In
addition, the statements in the Preliminary Offering Memorandum and the Offering Memorandum (a) under the captions “Description
of the Securitization Entities and the Securitization Entities Operating Agreements”, “Description of the Manager and
the Management Agreement”, “Description of the Servicer and the Servicing Agreement”, “Description of the
Back-Up Manager and the Back-Up Management Agreement”, “Description of the Offered Notes”, “Description
of the Base Indenture”, “Description of the Contribution Agreements” and “Description of the IP License
Agreements,” insofar as such statements purport to summarize certain provisions of the documents referred to therein, fairly
summarize such provisions in all material respects, and (b) under the captions “Certain ERISA Considerations” and “Additional
Regulatory Considerations” insofar as they purport to describe the provisions of the laws and regulations referred to therein,
are true and correct in all material respects.

 

Skadden
2018 Reliance Letter

 

32.          You
may rely on (i) the 2011 Opinions described below as if they were addressed to you as of May 20, 2011, subject to all the assumptions
and qualifications contained in the respective 2011 Opinions and (ii) the 2016 Opinions as if they were addressed to you as of
May 17, 2016, subject to all the assumptions and qualifications contained in the respective 2016 Opinions described below. We have
assumed and continue to assume no obligation to update or

    	 

    	

    

supplement
the attached 2011 Opinions and 2016 Opinions to reflect any facts or circumstances that have occurred since May 20, 2011 or May
17, 2016, as applicable, or may occur on or after the date hereof; provided, that we have furnished you with an opinion, dated
the date hereof, with respect to certain corporate matters of the Transaction Parties relating the 2018 Issuance.

 

2011 Corporate
Opinion

 

(a)          Based
solely on our review of the Delaware Certificates, each Delaware Opinion Party is duly incorporated or formed, as applicable, and
is validly existing and in good standing under the DGCL or the DLLCA, as applicable.

 

(b)          Each
Delaware Opinion Party has the corporate or limited liability company, as applicable, power and authority to execute and deliver
each of the Transaction Documents to which such Delaware Opinion Party is a party and to consummate the transactions contemplated
thereby under the DGCL or the DLLCA, as applicable.

 

(c)          Each
of the Transaction Documents to which a Delaware Opinion Party is a party has been duly authorized, executed and delivered by all
requisite corporate or limited liability company, as applicable, action on the part of such Delaware Opinion Party under the DGCL
or the DLLCA, as applicable.

 

(d)          (A)
Each of the Transaction Agreements (other than the IP Transaction Agreements) to which an Opinion Party is a party constitutes
the valid and binding obligation of such Opinion Party, enforceable against such Opinion Party in accordance with its terms under
the laws of the State of New York. (B) Each of the IP Transaction Agreements to which an Opinion Party is a party constitutes the
valid and binding obligation of such Opinion Party, enforceable against such Opinion Party in accordance with its terms under the
laws of the State of Delaware.

 

(e)          Each
LLC Agreement constitutes a valid and binding agreement of each Member party thereto, enforceable against such Member in accordance
with the DLLCA.

 

(f)          The
provisions of each LLC Agreement regulating each Delaware Opinion Party’s (other than Holdco’s) authority to commence
a voluntary case under title 11 of the United States Code constitute a valid and binding agreement of the respective Member, enforceable
against such Member in accordance with its terms under the DLLCA.

 

(g)          Under
the DLLCA and each LLC Agreement, the commencement of a bankruptcy proceeding with respect to or a dissolution of the Member will
not, by itself, cause a Delaware Opinion Party (other than the Holdco) to be dissolved or its affairs to be wound up.

 

(h)          Neither
the execution and delivery by each Delaware Opinion Party of the Transaction Documents to which such Delaware Opinion Party is
a party nor the consummation by such Delaware Opinion Party of the transactions contemplated thereby, including the issuance and
sale of the Notes in accordance with the Transaction Documents, conflicts with the Organizational Documents of such Delaware Opinion
Party.

 

(i)          Neither
the execution and delivery by each Opinion Party of the

    	 

    	

    

Transaction
Documents to which such Opinion Party is a party nor the consummation by such Opinion Party of the transactions contemplated thereby,
including the issuance and sale of the Notes: (i) violates any law, rule or regulation of the State of Delaware, the State of New
York or the United States of America, or (ii) requires the consent, approval, licensing or authorization of, or any filing, recording
or registration with, any governmental authority under any law, rule or regulation of the State of New York or the United States
of America or the DGCL or the DLLCA, as applicable, except for those consents, approvals, licenses and authorizations already obtained
and those filings, recordings and registrations already made.

 

(j)          Each
Opinion Party is not and, solely after giving effect to the offering and sale of the Notes and the application of the proceeds
thereof as described in the Offering Memorandum, will not be an “investment company” as such term is defined in the
Investment Company Act of 1940, as amended.

 

(k)          Assuming
that each Opinion Party complies with the provisions of the Indenture relating to the use of proceeds, the making of the loans
and/or other extensions of credit under the Indenture will not violate Regulation U or X of the Board of Governors of the Federal
Reserve System.

 

(l)          The
Notes have been duly authorized by all requisite limited liability company action on the part of the Co-Issuers and duly executed
by the Co-Issuers under the DLLCA, and when duly authenticated by the Trustee and issued and delivered by the Co-Issuers against
payment therefor in accordance with the terms of the Purchase Agreements and the Indenture, the Notes will constitute valid and
binding obligations of the Co-Issuers, entitled to the benefits of the Indenture and enforceable against the Co-Issuers in accordance
with their terms under the laws of the State of New York.

 

(m)          Assuming
(i) the accuracy of the representations and warranties of the Opinion Parties party thereto set forth in Section 2(a) through (e)
of the Class A-2 NPA and of the Initial Purchasers in Sections 3(b) and (d) of the Class A-2 NPA, (ii) the due performance by such
Opinion Parties of the covenants and agreements set forth in Section 5(i), (o), (p), (q) and (u) of the Class A-2 NPA and the due
performance by the Initial Purchasers of the covenants and agreements set forth in Section 3(b) and (d) of the Class A-2 NPA, and
(iii) the compliance by the Initial Purchasers with the offering and transfer procedures and restrictions described in the Offering
Memorandum, the offer, sale and delivery of the Notes to the Initial Purchasers in the manner contemplated by the Purchase Agreements
and the Offering Memorandum and the initial resale of the Notes by the Initial Purchasers in the manner contemplated in the Offering
Memorandum and the Purchase Agreements, do not require registration under the Securities Act or qualification of the Indenture
under the Trust Indenture Act of 1939, it being understood that we do not express any opinion with respect to any subsequent reoffer
or resale of any Notes.

 

2011 Security
Interest Opinion

 

(a)          Under
the New York UCC, the provisions of the Indenture are effective to create a security interest in each Grantor’s (other than
the Franchisor’s) rights in the UCC Collateral in favor of the Trustee to secure the Obligations (as defined in the Indenture).

    	 

    	

    

(b)          Under
the New York UCC, the provisions of the G&C Agreement are effective to create a security interest in the Franchisor’s
rights in the UCC Collateral in favor of the Trustee to secure the Obligations (as defined in the Indenture).

 

(c)          Each
Delaware Financing Statement is in sufficient form for filing in the Delaware Filing Office. Under the Delaware UCC, the security
interest of the Trustee will be perfected in each Grantor’s rights in that portion of the UCC Collateral in which a security
interest can be perfected under the Delaware UCC by the filing of a financing statement in the Delaware Filing Office upon the
later of the attachment of the security interest and the filing of the Delaware Financing Statement identifying such Grantor as
debtor in the Delaware Filing Office.

 

(d)          Under
the New York UCC and the Federal Book-Entry Regulations, the provisions of each Control Agreement are effective to perfect the
security interest of the Trustee in each Grantor’s rights in the respective Collateral Account.

 

(e)          To
the extent that federal copyright laws of the United States of America pertaining to the transfer of copyright ownership are applicable
to the rights being granted to the Trustee under the Copyright Security Agreement, the recordation of the Copyright Security Agreement
in the United States Copyright Office (the “USCO”) against the U.S. registered copyrights set forth on Schedule 1 to
the Copyright Security Agreement (the “Copyrights”) within one (1) month after its execution will render the Trustee’s
security interest in the IP Holder’s right, title and interest in the Copyrights prevailing over later conflicting transfers
(within the meaning of the Copyright Act, 17 U.S.C. 101, et seq.) of such Copyrights.

 

(f)          To
the extent that federal trademark laws of the United States of America pertaining to the assignment of trademarks are applicable
to the rights being granted to the Trustee under the Trademark Security Agreement, the recordation of the Trademark Security Agreement
in the United States Patent and Trademark Office (the “PTO”) against the U.S. registered trademarks and trademark applications
set forth on Schedule 1 to the Trademark Security Agreement (the “Trademarks”) within three (3) months after its date
will render the Trustee’s security interest in the IP Holder’s right, title and interest in such Trademarks valid against
subsequent purchasers (within the meaning of the Lanham Act, as defined below) of such Trademarks.

 

(g)          To
the extent that federal patent laws of the United States of America pertaining to the assignment grant, or conveyance of patents
are applicable to the rights being granted to the Trustee under the Patent Security Agreement, the recordation of the Patent Security
Agreement in the PTO against the U.S. patents and patent applications set forth on Schedule 1 to the Patent Security Agreement
(the “Patents”) within three (3) months after its date will render the Trustee’s security interest in the IP
Holder’s right, title and interest in such Patents effective against subsequent purchasers and mortgagees (within the meaning
of the U.S. Patent Act, 35 U.S.C. 101, et seq.) of such Patents.

 

2011 Contribution
Agreements Security Interest Opinion

    	 

    	

    
(a)          We
call to your attention that each Contribution Agreement purported to sell the Contributed Assets, and we do not express any opinion
with respect to the proper characterization of the transfer. However, if in each case the transfer was characterized as a lien,
the provisions of each Contribution Agreement were effective under the New York UCC to create a security interest in each Grantor’s
rights in the Contributed Assets (as defined in the applicable Contribution Agreement) in favor of the related Secured Party in
each case to secure a loan in the aggregate value of the Contributed Assets (as defined in the applicable Contribution Agreement).

 

(b)          Under
the Delaware UCC, the security interest of the Former Franchise Assets Holder was perfected in the Master Issuer’s rights
in that portion of the UCC Collateral related to the Franchise Assets Agreement in which a security interest can be perfected under
the Delaware UCC by the filing of a financing statement in the Delaware Filing Office upon the later of the attachment of the security
interest and the filing of the Delaware Financing Statement identifying the Master Issuer as debtor in the Delaware Filing Office.

 

(c)          To
the extent that federal copyright laws of the United States of America pertaining to the transfer of copyright ownership are applicable
to the rights granted to IP Holder under the Copyright Security Agreement, the recordation of the Copyright Security Agreement
in the United States Copyright Office (the “USCO”) against the U.S. registered copyrights set forth on Schedule 1 to
the Copyright Security Agreement (the “Copyrights”) within one (1) month after its execution rendered IP Holder’s
interest in ADIC Holdco’s right, title and interest in such Copyrights prevailing over conflicting later transfers (within
the meaning of the Copyright Act, 17 U.S.C. 101, et. seq.) of such Copyrights.

 

(d)          To
the extent that federal trademark laws of the United States of America pertaining to the assignment of trademarks are applicable
to the rights granted to IP Holder under the Trademark Security Agreement, the recordation of the Trademark Security Agreement
in the United States Patent and Trademark Office (the “PTO”) against the U.S. registered trademarks and trademark applications
set forth on Schedule 1 to the Trademark Security Agreement (the “Trademarks”) within three (3) months after its date
rendered IP Holder’s interest in ADIC Holdco’s right, title and interest in such Trademarks valid against subsequent
purchasers (within the meaning of the Lanham Act, as defined below) of such Trademarks .

 

(e)          To
the extent that federal patent laws of the United States of America pertaining to the assignment, grant, or conveyance of patents
are applicable to the rights granted to IP Holder under the Patent Security Agreement, the recordation of the Patent Security Agreement
in the PTO against the U.S. patents and patent applications set forth on Schedule 1 to the Patent Security Agreement (the “Patents”)
within three (3) months after its date rendered IP Holder’s interest in ADIC Holcdo’s right, title and interest in
such Patents effective against subsequent purchasers and mortgagees (both within the meaning of the U.S. Patent Act, 35 U.S.C.
101, et seq.) of such Patents.

 

2011 True Sale
Opinion

 

(a)          Based
upon the facts and assumptions set forth earlier in the opinion and the legal considerations discussed above, it is our opinion
that in a properly presented and argued case, as

    	 

    	

    

a legal matter, and based upon
existing case law, in the event of the bankruptcy of a Transferor, subject to the qualifications stated in the opinion, (a) section
362(a) of the Bankruptcy Code would not apply to stay payment to the applicable Transferee (or its assigns) of amounts collected
on the Transferred Assets and proceeds of sale thereof and (b) the Transferred Assets and proceeds of sale or collections thereof
would not constitute property of the applicable Transferor’s bankruptcy estate under section 541(a)(1) of the Bankruptcy
Code.

 

2016 Corporate
Opinion

 

(a)          Based
solely on our review of the Delaware Certificates, each Delaware Opinion Party is duly incorporated or formed, as applicable, and
is validly existing and in good standing under the DGCL or the DLLCA, as applicable.

 

(b)          Each
Delaware Opinion Party has the corporate or limited liability company, as applicable, power and authority to execute and deliver
each of the Transaction Documents to which such Delaware Opinion Party is a party and to perform all its obligations thereunder,
including, if such Delaware Opinion Party is a Co-Issuer, the issuance and sale of the Notes, under the DGCL or the DLLCA, as applicable.

 

(c)          Each
of the Transaction Documents to which a Delaware Opinion Party is a party has been duly authorized, executed and delivered by all
requisite corporate or limited liability company, as applicable, action on the part of such Delaware Opinion Party under the DGCL
or the DLLCA, as applicable.

 

(d)          (A)
Each of the Transaction Agreements (other than the IP Transaction Agreements) to which an Opinion Party is a party constitutes
the valid and binding obligation of such Opinion Party, enforceable against such Opinion Party in accordance with its terms under
the laws of the State of New York. (B) Each of the IP Transaction Agreements to which an Opinion Party is a party constitutes the
valid and binding obligation of such Opinion Party, enforceable against such Opinion Party in accordance with its terms under the
laws of the State of Delaware.

 

(e)          Neither
the execution and delivery by each Delaware Opinion Party of the Transaction Documents to which such Delaware Opinion Party is
a party nor the performance of all its obligations thereunder, including, if such Delaware Opinion Party is a Co-Issuer, the issuance
and sale of the Notes: (i) conflicts with the Organizational Documents of such Delaware Opinion Party or (ii) violates any law,
rule or regulation of the State of New York, the United States of America or the DGCL or the DLLCA, as applicable.

 

(f)          Neither
the execution and delivery by each Opinion Party of the Transaction Documents to which such Opinion Party is a party nor the performance
of all its obligations thereunder, including, if such Opinion Party is a Co-Issuer, the issuance and sale of the Notes, requires
the consent, approval, licensing or authorization of, or any filing, recording or registration with, any governmental authority
under any law, rule or regulation of the State of New York or the United States of America, as applicable, except for those consents,
approvals, licenses and authorizations already obtained and those filings, recordings and registrations already made.

    	 

    	

    

(g)          Each
Opinion Party is not and, solely after giving effect to the offering and sale of the Notes and the application of the proceeds
thereof as described in the Offering Memorandum, will not be an “investment company” as such term is defined in Section
3(a)(1) of the Investment Company Act of 1940, as amended, and each Opinion Party is not a “covered fund” as defined
in the final regulations issued December 10, 2013, implementing Section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection
Act of 2010.

 

(h)          The
Notes have been duly authorized by all requisite limited liability company action on the part of the Co-Issuers that are Delaware
Opinion Parties and duly executed by such Co-Issuers under the DLLCA, and when duly authenticated by the Trustee and issued and
delivered by the Co-Issuers against payment therefor in accordance with the terms of the Note Purchase Agreements and the Indenture,
the Notes will constitute valid and binding obligations of the Co-Issuers, entitled to the benefits of the Indenture and enforceable
against the Co-Issuers in accordance with their terms under the laws of the State of New York.

 

(i)          Assuming
(i) the accuracy of the representations and warranties of the Opinion Parties party thereto set forth in Section 2(a) through 2(g)
of the Class A-2 NPA and of the Initial Purchasers in Sections 3(b), (d) and (e) of the Class A-2 NPA, (ii) the due performance
by such Opinion Parties of the covenants and agreements set forth in Section 5(e) through (h), (n) through (p) and (s) of the Class
A-2 NPA and the due performance by the Initial Purchasers of the covenants and agreements set forth in Section 3(b), (d) and (e)
of the Class A-2 NPA, and (iii) the compliance by the Initial Purchasers with the offering and transfer procedures and restrictions
described in the Offering Memorandum, the offer, sale and delivery of the Class A-2 Notes to the Initial Purchasers in the manner
contemplated by the Offering Memorandum and the Class A-2 NPA and the initial resale of the Class A-2 Notes by the Initial Purchasers
in the manner contemplated in the Offering Memorandum and the Class A-2 NPA, do not require registration under the Securities Act
of 1933, as amended, or qualification of the Indenture under the Trust Indenture Act of 1939, as amended, it being understood that
we do not express any opinion with respect to any subsequent reoffer or resale of any Class A-2 Notes.

 

(j)          Assuming
the accuracy of the representations and warranties of the Opinion Parties party thereto set forth in Section 6.01(c) through (e)
and (g) of the Class A-1 NPA and of the Lender Parties (as such term is defined in the Class A-1 NPA) in Section 6.03(a) through
(h) of the Class A-1 NPA, the offer, sale and delivery of the Class A-1 Notes to the Lender Parties in the manner contemplated
by the Class A-1 NPA does not require registration under the Securities Act of 1933, as amended, or qualification of the Indenture
under the Trust Indenture Act of 1939, as amended, it being understood that we do not express any opinion with respect to any subsequent
reoffer or resale of any Class A-1 Notes.

 

2016 Security
Interest Opinion

 

(a)          Under
the New York UCC, the provisions of the Indenture are effective to create a security interest in each Co-Issuer’s rights
in the UCC Collateral in favor of the Trustee to secure the Obligations (as defined in the Indenture).

    	 

    	

    

(b)          Under
the New York UCC, the provisions of the G&C Agreement are effective to create a security interest in the Franchisor’s
rights in the UCC Collateral in favor of the Trustee to secure the Obligations (as defined in the Indenture).

 

(c)          Under
the Delaware UCC, the security interest of the Trustee was perfected in each Delaware Grantor’s rights in that portion of
the UCC Collateral in which a security interest can be perfected under the Delaware UCC by the filing of a financing statement
in the Delaware Filing Office upon the later of the attachment of the security interest and the filing of the Delaware Financing
Statement identifying such Grantor as debtor in the Delaware Filing Office.

 

(d)          Under
the New York UCC, the provisions of each Control Agreement are effective to perfect the security interest of the Trustee in each
Grantor’s rights in the respective Collateral Account.

 

(e)          To
the extent that the provisions of the Copyright Act of 1976 (17 U.S.C. § 101, et seq.) (the “Copyright Act”) pertaining
to the transfer of copyright ownership preempt the provisions of the applicable UCC requiring the filing of a financing statement
for the perfection of a security interest in copyrights, the recordation of the Copyright Security Agreement in the United States
Copyright Office (the “USCO”) against the U.S. registered copyrights identified by the copyright registration numbers
set forth on Schedule 1 to the Copyright Security Agreement (the “Copyrights”) within one (1) month after its execution
perfected the Trustee’s security interest in the IP Holder’s right, title and interest in the Copyrights.

 

(f)          To
the extent that the provisions of the Lanham (Trademark) Act (15 U.S.C. § 1051, et seq.) (the “Lanham Act”) pertaining
to the assignment of trademarks preempt the provisions of the applicable UCC requiring the filing of a financing statement for
the perfection of a security interest in trademarks, the recordation of the (i) 2016 Supplemental Trademark Security Agreement
in the United States Patent and Trademark Office (the “PTO”) against the U.S. registered trademarks and trademark applications
identified by the trademark and trademark application numbers set forth on Schedule 1 to the 2016 Supplemental Trademark Security
Agreement (the “Supplemental Trademarks”) within three (3) months after its date perfected the Trustee’s security
interest in the IP Holder’s right, title and interest in such Supplemental Trademarks, and (ii) Trademark Security Agreement
in the PTO against the U.S. registered trademarks and trademark applications identified by the trademark and trademark application
numbers set forth on Schedule 1 to the Trademark Security Agreement (the “Existing Trademarks” and, together with the
2016 Supplemental Trademarks, the “Trademarks”) within three (3) months after its date perfected the Trustee’s
security interest in the IP Holder’s right, title and interest in such Existing Trademarks.

 

(g)          To
the extent that the provisions of the United States Patent Act (35 U.S.C. § 1, et seq.) (the “Patent Act”) pertaining
to the assignment, grant or conveyance of patents preempt the provisions of the applicable UCC requiring the filing of a financing
statement for the perfection of a security interest in patents, the recordation of the (i) Supplemental Patent Security Agreement
in the PTO against the U.S. patents and patent applications identified by the patent and patent application numbers set forth on
Schedule 1 to the 2016 Supplemental Patent Security Agreement (the “Supplemental Patents”) within three (3) months
from its date perfected the Trustee’s security interest in the IP Holder’s right, title and interest in such Supplemental

    	 

    	

    

Patents, and (ii) Patent Security
Agreement in the PTO against the U.S. patents and patent applications identified by the patent and patent application numbers set
forth on Schedule 1 to the Patent Security Agreement the “Existing Patents” and, together with the Supplemental Patents,
the “Patents”) within three (3) months from its date perfected the Trustee’s security interest in the IP Holder’s
right, title and interest in such Existing Patents.

 

Skadden
2018 Bringdown Opinion of Non-Consolidation Matters

 

33.          Accordingly,
you are hereby authorized to rely upon the Non-Consolidation Opinion to the same extent as if the Non-Consolidation Opinion were
dated the date hereof and delivered to you as a named addressee thereof.

    	 

    	

    

Exhibit
2-B

 

Capitalized terms used within this
Exhibit 2-B shall have the meanings set forth in the opinion letter in which they will be delivered.

 

In-House Counsel
Opinion

 

Sonic 2018 In-House Opinion

 

1.From
January 1, 2007, to May 20, 2011, Sonic Industries LLC (the “Franchise Assets Holder”) prepared and maintained Franchise
Disclosure Documents for the offer and sale of Sonic franchises in the United States with issuance dates as noted in Schedule B-1
(the “Franchise Assets Holder FDDs”). Since May 20, 2011, Sonic Franchising LLC (the “Franchisor”) has
prepared and maintained Franchise Disclosure Documents for the offer and sale of Sonic franchises in the United States with issuance
dates as noted in Schedule B-2 (the “Franchisor FDDs” and, together with the Franchise Assets Holder FDDs, the “FDDs”).

 

2.The
FDDs comply in all material respects with the disclosure requirements of the U.S. Federal Trade Commission and applicable state
franchise and business opportunity laws.

 

3.Except
in circumstances that would not reasonably be expected to have a material adverse effect on the business or assets of the Co-Issuers
or the Franchisor, (i) from January 1, 2007, to May 20, 2011, the Franchise Assets Holder registered or filed the Franchise Assets
Holder FDDs in all franchise registration/filings states in which the Franchise Assets Holder offered or sold Sonic franchises
except for those states in which the Franchise Assets Holder was exempt from registration or filing and (ii) since May 20, 2011,
the Franchisor has registered or filed the Franchisor FDDs in all franchise registration/filings states in which the Franchisor
has offered or sold Sonic franchises except for those states in which the Franchisor was exempt from registration or filing.

 

4.Except
in circumstances that would not reasonably be expected to have a material adverse effect on the business or assets of the Co-Issuers
or the Franchisor, (i) from January 1, 2007, to May 20, 2011, the Franchise Assets Holder, as required for its franchise offer
and sales activities, had franchise registrations/filings in effect, or was exempt from franchise registrations/filings, in all
franchise registration/filing states in which the Franchise Assets Holder offered or sold Sonic franchises and (ii) since May 20,
2011, the Franchisor, as required for its franchise offer and sales activities, had or has had franchise registrations/filings
in effect, or has been exempt from franchise registrations/filings, in all franchise registration/filing states in which the Franchisor
has offered or sold Sonic franchises.

 

5.Except
in circumstances that would not reasonably be expected to have a material adverse effect on the business or assets of the Co-Issuers
or the Franchisor, (i) from January 1, 2007, to May 20, 2011, the Franchise Assets Holder made all necessary filings, including
exemption filings, under state business opportunity laws regulating the offer and sale of Sonic franchises and (ii) since May 20,
2011, the Franchisor has made all necessary filings, including exemption filings, under state business opportunity laws regulating
the offer and sale of Sonic franchises.

    	 

    	

    

6.The
forms of license agreement and development agreement attached as exhibits to the forms of the FDDs were the forms of license agreement
and development agreement signed by the franchisees who had received the FDDs to which they were attached (including, as applicable,
state-specific riders or addenda required by state franchise registration authorities), except to the extent they were modified
by negotiated changes. These forms comply in all material respects with applicable state and federal laws and regulations.

 

7.Except
in circumstances that would not reasonably be expected to have a material adverse effect on the business or assets of the Co-Issuers
or the Franchisor, since January 1, 2007, all advertising and other franchisee solicitation materials required by applicable state
franchise laws to be filed with state franchise registration authorities have been so filed by the Franchise Assets Holder or the
Franchisor, as applicable, and have in all material respects complied in substance and form with all standards and conditions prescribed
by such applicable laws.

 

8.Except
in circumstances that would not reasonably be expected to have a material adverse effect on the business or assets of the Co-Issuers
or the Franchisor, (i) from January 1, 2007, to May 20, 2011, the Franchise Assets Holder, as required for its franchise offer
and sales activities, filed with all applicable state franchise registration authorities all franchise salesperson disclosure forms,
franchise sales agent forms, and franchise broker forms required by state franchise laws to be filed with such state franchise
registration authorities and (ii) since May 20, 2011, the Franchisor, as required for its franchise offer and sales activities,
filed with all applicable state franchise registration authorities all franchise salesperson disclosure forms, franchise sales
agent forms, and franchise broker forms required by state franchise laws to be filed with such state franchise registration authorities.

 

9.Except
in circumstances that would not reasonably be expected to have a material adverse effect on the business or assets of the Co-Issuers
or the Franchisor, (i) the Franchise Assets Holder has not sold any Sonic franchises to any franchisees at a time when its Franchise
Assets Holder FDDs were not then in effect and (ii) the Franchisor has not sold any Sonic franchises to any franchisees at a time
when its Franchisor FDDs were not then in effect.

 

10.         Except
in circumstances that would not reasonably be expected to have a material adverse effect on the business or assets of the Co-Issuers
or the Franchisor, neither the Franchise Assets Holder nor the Franchisor has sold any Sonic franchises to any franchisees at a
time when its required state franchise registrations or business opportunity filings (or exemptions from registration or filing)
referred to in paragraphs 3, 4 and 5 were not then in effect.

 

11.         There
is no action, proceeding, or investigation pending or threatened against Holdco or any of its Subsidiaries before any court or
administrative agency that may reasonably be expected to have a material adverse effect on the business or assets of the Co-Issuers
or the Franchisor.

 

12.         The
execution and delivery by each of Holdco and its Subsidiaries of each Transaction Document to which it is a party and the performance
of its obligations thereunder and under the Related Documents will not (i) violate any order, writ, injunction or decree of any
United States federal or state court, governmental authority or agency applicable to Holdco or

    	 

    	

    

any of its
Subsidiaries or (ii) breach or result in a default or the creation or imposition of any Lien upon any of the assets of Holdco or
any of its Subsidiaries under the terms of any agreement or instrument which is material to the business of Holdco and its Subsidiaries,
taken as a whole.

    	 

    	

    

Exhibit
2-C

 

Capitalized terms used within this
Exhibit 2-C shall have the meanings set forth in the respective opinion letters in which they will be delivered.

 

DLA Piper Opinion

 

DLA Piper Corporate Opinion and
Negative Assurance Letter

 

1.The
statements made in the Final Offering Memorandum and the Preliminary Offering Memorandum under the caption “The Franchise
Arrangements” and in the subsection titled “The Franchise Agreements” under the caption “Sonic,”
but only insofar as any such statements purport to constitute summaries of certain terms of the Current Form Franchise Documents,
constitute accurate summaries of the terms of the Current Form Franchise Documents in all material respects. The statements in
the Final Offering Memorandum and the Preliminary Offering Memorandum under the caption “Certain Legal Aspects of the Franchise
Arrangements,” insofar as they describe United States federal and state laws relating to franchising and business opportunities
constitute accurate summaries of the matters described therein in all material respects. No facts have come to our attention that
have led us to believe that the statements in the Disclosure Package and the Final Offering Memorandum in each case under the caption
“The Franchise Arrangements” or the subsection titled “Franchise Agreements” under the caption “Sonic,”
or the statements in the Disclosure Package and the Final Offering Memorandum in each case under the caption “Certain Legal
Aspects of the Franchise Arrangements,” as of the Applicable Time (in the case of the Disclosure Package) contained or, in
the case of the Final Offering Memorandum, when issued contained, or on the date of the opinion letter contain, any untrue statement
of a material fact or omitted or omit to state a material fact necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading. However, except for our review as described in this paragraph,
we did not independently investigate or verify, and express no opinion with respect to, the factual statements contained in the
Disclosure Package and the Final Offering Memorandum.

 

2.No
consent, approval, or authorization of or designation, declaration, or filing with any federal or state authority that regulates
franchising in the U.S. is required in connection with the Securitization Transaction. However, see the discussion below regarding
the actions that the Franchisor must take after the Series 2018-1 Closing Date in order to offer and sell Sonic franchises in the
United States to comply with United States federal and state franchise and business opportunity laws.

 

Adams Jones
Law Firm, P.A. Opinions

 

Adams Jones 2018 Corporate Opinion

 

1.Based
solely on our review of the Organizational Documents, the Kansas Certificate and the Secretary’s Certificate, the IP Holder
is duly formed, validly existing and in good standing.

    	 

    	

    

2.     The
IP Holder has power and authority to execute, deliver and perform its obligations under each Transaction Document.

 

3.     The
execution, delivery and performance of the Transaction Documents to which the IP Holder is a party have been duly authorized by
necessary limited liability company action of the IP Holder.

 

4.     Each
Transaction Document to which the IP Holder is a party has been duly executed and delivered by the IP Holder.

 

5.     Each
of the Transaction Documents to which the IP Holder is a party constitutes the valid and binding obligation of the IP Holder, enforceable
against the IP Holder in accordance with its terms under the laws of the State of Kansas.

 

6.     Neither
the execution and delivery by the IP Holder of the Transaction Documents to which the IP Holder is a party nor the consummation
by the IP Holder of the transactions contemplated thereby, including the issuance and sale of the Notes in accordance with the
Transaction Documents, conflicts with the Organizational Documents of the IP Holder or violates any law, rule or regulation of
the State of Kansas or the United States of America.

 

7.     Neither
the execution and delivery by the IP Holder of the Transaction Documents to which the IP Holder is a party nor the consummation
by the IP Holder of the transactions contemplated thereby, including the issuance and sale of the Notes, requires the consent,
approval, licensing or authorization of, or any filing, recording or registration with, any governmental authority under any law,
rule or regulation of the State of Kansas or the United States of America, except for those consents, approvals, licenses and authorizations
already obtained and those filings, recordings and registrations already made.

 

8.     The
Notes have been duly authorized by all requisite limited liability company action on the part of the IP Holder and duly executed
by the IP Holder, and when duly authenticated by the Trustee and issued and delivered by the IP Holder against payment therefor
in accordance with the terms of the Class A-2 NPA and the Indenture, the Notes will constitute valid and binding obligations of
the IP Holder, entitled to the benefits of the Indenture and enforceable against the IP Holder in accordance with their terms under
the laws of the State of Kansas.

 

9.     To
our Actual Knowledge, there are no legal proceedings pending or overtly threatened against the IP Holder regarding the effect on
the validity or enforceability of the Transaction Documents.

 

10.   While
under the Kansas Revised Limited Liability Company Act (the “LLC Act”), on application to a court of competent jurisdiction,
a judgment creditor of a member thereof (“Member”) may be able to charge the Member’s share of any profits and
losses of the IP Holder and the Member’s right to receive distributions of the IP Holder’s assets (the “Member’s
Interest”), to the extent so charged, the judgment creditor has only the right to receive any distribution or distributions
to which the Member would otherwise have been

    	 

    	

    

entitled
in respect of the Member’s Interest. Under the LLC Act, no creditor of the Member shall have any right to obtain possession
of, or otherwise exercise legal or equitable remedies with respect to, the property of the IP Holder. Thus, under the LLC Act,
a judgment creditor of the Member may not satisfy its claims against the Member by asserting a claim against the assets of the
IP Holder.

 

Adams Jones
2018 Reliance Letter

 

11.
Accordingly, you are hereby authorized to rely upon the 2011 Opinion to the same extent as if the 2011 Opinion was dated the
date hereof and delivered to you as a named addressee thereof.

 

2011 Opinion

 

(a)          IP
Holder is duly formed, validly existing and in good standing.

 

(b)          IP
Holder has power and authority to execute, deliver and perform its obligations under each Kansas Transaction Document. The execution,
delivery and performance of the Kansas Transaction Documents have been duly authorized by necessary limited liability company action
of the IP Holder.

 

(c)          Each
Kansas Transaction document has been duly executed and delivered by IP Holder.

 

(d)          The
execution, delivery and performance of the Kansas Transaction Documents do not: (i) violate any law, regulation, order or decree
of any governmental authority; (ii) violate any other order, writ, injunction or decree; (iii) result in the creation or imposition
of any Lien except for Liens created under the Transaction Documents, or (iv) breach or result in a default under any Transaction
Document.

 

(e)          Except
for filings which are necessary to perfect the security interests granted under the Kansas Transaction Documents and any other
filings, authorizations or approvals as are specifically provided for in the Kansas Transaction Documents, no authorizations, consents
or approvals are necessary for the execution, delivery, or performance of the Kansas Transaction Documents.

 

(f)          (a)
To the extent that (x) the Kansas UCC governs the perfection of a security interest in the Indenture Collateral (as defined in
the Base Indenture), as to which we express no opinion, and (y) a security interest in the Kansas Debtor Collateral can be perfected
by filing a financing statement in the office of the Secretary of State of Kansas under the Kansas UCC, the 2011 Kansas Debtor
Financing Statement of IP Holder is in appropriate form and when duly filed pursuant to the Kansas UCC will result in the perfection
of a security interest in IP Holder’s rights in that portion of the Kansas Debtor Collateral described in the Kansas Debtor
Financing Statement of IP Holder (the “Kansas Debtor Collateral”) as of the time of filing of the Kansas Debtor Financing
Statement of IP Holder.

 

		(b)	To the extent that (x) the Kansas UCC governed the perfection of a security interest in the Contributed Assets (as defined
in the Kansas Assets Agreement), as to which

    	 

    	

    

we express no opinion, and
(y) a security interest in the Contributed Assets could be perfected by filing a financing statement in the office of the Secretary
of State of Kansas under the Kansas UCC, the ADIC Holdco-New ADIC Financing Statement was in appropriate form and was duly filed
pursuant to the Kansas UCC, resulting in the perfection of a security interest in New ADIC’s rights in that portion of the
Contributed Assets described in the ADIC Holdco-New ADIC Financing Statement (the “New ADIC Collateral”) as of the
time of filing of the ADIC Holdco-New ADIC Financing Statement.

 

		(c)	To the extent that (x) the Kansas UCC governed the perfection of a security interest in the Contributed Assets (as defined
in the IP Assets Agreement), as to which we express no opinion, and (y) a security interest in the Contributed Assets could be
perfected by filing a financing statement in the office of the Secretary of State of Kansas under the Kansas UCC, the ADIC Holdco-IP
Holder Financing Statement was in appropriate form and was duly filed pursuant to the Kansas UCC, resulting in the perfection of
a security interest in the IP Holder’s rights in that portion of the Contributed Assets described in the ADIC Holdco-IP Holder
Financing Statement (the “IP Holder Collateral”) as of the time of filing of the ADIC Holdco-IP Holder Financing Statement.

 

(g)          Each
Kansas Transaction Document constitutes a legal, valid and binding obligation of the IP Holder, in accordance with its terms.

 

(h)          To
our Actual Knowledge, there are no legal proceedings pending or overtly threatened against the IP Holder regarding the effect on
the validity or enforceability of the Kansas Transaction Documents.

 

(i)          A Federal
bankruptcy court would hold that Kansas law, and not Federal law, would govern the determination of what persons or entities have
authority to file a voluntary bankruptcy petition on behalf of the IP Holder.

 

(j)          If
properly presented to a Kansas court, a Kansas court applying Kansas law would conclude that: (i) in order for a Person to file
a voluntary bankruptcy petition on behalf of the IP Holder, the prior written consent of its member (the “Member”)
and the prior unanimous written consent of its Board (including the Independent Managers), as provided for in Section 9(j)(iii)
of the of the IP Holder LLC Agreement of the IP Holder, is required; and (ii) the provision, contained in Section 9(j)(iii) of
the IP Holder LLC Agreement of the IP Holder, that requires the prior written consent of its Member and the prior unanimous written
consent of its Board (including the Independent Managers) in order for a Person to file a voluntary bankruptcy petition on behalf
of the IP Holder, constitutes a legal, valid and binding agreement of its Member, and is enforceable against its Member, in accordance
with its terms.

 

(k)          While
under the Kansas Revised Limited Liability Company Act (the “LLC Act”), on application to a court of competent jurisdiction,
a judgment creditor of the Member may be able to charge the Member’s share of any profits and losses of the IP Holder and
the Member’s right to receive distributions of the IP Holder’s assets (the “Member’s Interest”),
to the extent so charged, the judgment creditor has only the right to receive any distribution or

    	 

    	

    

distributions to which the Member
would otherwise have been entitled in respect of the Member’s Interest, and to receive such allocation of income, gain, loss,
deduction or credit or similar item to which the Member was entitled. Under the LLC Act, no creditor of the Member shall have any
right to obtain possession of, or otherwise exercise legal or equitable remedies with respect to, the property of the IP Holder.
Thus, under the LLC Act, a judgment creditor of the Member may not satisfy its claims against the Member by asserting a claim against
the assets of the IP Holder.

 

(l)          Under
the LLC Act: (i) the IP Holder is a separate legal entity; and (ii) the existence of the IP Holder as a separate legal entity will
continue until the cancellation of the Articles of Organization of the IP Holder as provided in the LLC Act.

 

(m)        Under
the LLC Act and the IP Holder LLC Agreement of the IP Holder, the bankruptcy or dissolution of the Member will not, by itself,
cause the IP Holder to be dissolved or its affairs to be wound up.

 

(n)         Our
opinion with respect to the enforceability of the choice of law provisions contained in the Kansas Transaction Documents that are
not expressly made subject to Kansas law is qualified by the following: certain of the Kansas Transaction Documents are to be governed
by and construed in accordance with the laws of the State of New York or Delaware. Assuming that the law of either of such other
states that is sought to be applied by Kansas courts does not violate the public policy of the State of Kansas, and that a Kansas
court would find that there is a reasonable relationship between such other state and the Kansas Transaction Documents, it is our
opinion that in a properly presented case, a Kansas court or federal court applying Kansas law would give effect to this choice
of law, with the exception that matters relating to transfers or creation of an interest in real property (including “fixtures”
under the Kansas UCC) for security purposes or otherwise, the nature of an interest in real property that is transferred or created
by the Securitization Transaction, the method for foreclosure of a lien on real property, the nature of an interest in real property
that results from foreclosure, or the manner and effect of recording or failing to record evidence of a transaction that transfers
or creates an interest in real property will be governed by Kansas law.

 

Phillips Murrah
P.C. Opinions

 

Phillips
Murrah 2018 Corporate Opinion

 

1.Each
of SISI and SRI is a corporation, duly incorporated, validly existing and in good standing under the laws of the State of Oklahoma,
has the corporate power and the corporate authority as approved by appropriate action to execute, perform and deliver the Transaction
Documents to which it is a party and has the full corporate power and the corporate authority to conduct the activities in which
it is now engaged.

 

2.Each
of the Transaction Documents has been duly executed and delivered by SISI and/or SRI, as applicable.

    	 

    	

    

3.No
approval, consent, license or withholding of objection on the part of, or filing, registration or qualification with, any governmental
body, federal, state or local, is necessary in connection with the execution, delivery and performance of the Transaction Documents
by SISI and SRI.

 

4.The
execution, delivery and performance by SISI and SRI of the Transaction Documents do not conflict with or violate any law or any
order of any court or governmental authority applicable to or binding on either SISI or SRI, or conflict with or result in any
breach of any of the provisions of or constitute a default under or result in the creation or imposition of any lien upon any of
the property of either SISI or SRI pursuant to the provisions of the respective Certificate of Incorporation or Bylaws of SISI
and SRI or any agreement or other instrument known to us to which either company is a party or by which such company may be bound.

 

5.There
are no actions, suits or proceedings pending or, to our knowledge, overtly threatened against or affecting either SISI or SRI or
any property of either company in any court or before any arbitrator of any kind or before or by any governmental authority with
respect to the Transaction Documents.

 

Phillips
Murrah 2018 Reliance Letter

 

6.You
may rely on the 2011 Opinion as if it was addressed to you as of May 20, 2011, subject to all the assumptions, qualifications,
limitations, exceptions and conditions contained in such letter.

 

2011
Opinion

 

(a)          Each
of SISI and SRI is a corporation, duly incorporated, validly existing and in good standing under the laws of the State of Oklahoma,
has the corporate power and the corporate authority as approved by appropriate action to execute, perform and deliver the Transaction
Documents to which it is a party and has the full corporate power and the corporate authority to conduct the activities in which
it is now engaged.

 

(b)          Each
of the Transaction Documents has been duly executed and delivered by SISI and/or SRI, as applicable. In the event the Master Leases
are governed by Oklahoma law, each of the Master Leases constitutes the legal, valid and binding contract of SRI, enforceable against
SRI in accordance with its terms.

 

(c)          No
approval, consent, license or withholding of objection on the part of, or filing, registration or qualification with, any governmental
body, federal, state or local, is necessary in connection with the execution, delivery and performance of the Transaction Documents
by SISI and SRI.

 

(d)          The
execution, delivery and performance by SISI and SRI of the Transaction Documents do not conflict with or violate any law or any
order of any court or governmental authority applicable to or binding on either SISI or SRI, or conflict with or result in any
breach of any of the provisions of or constitute a default under or result in the creation or imposition of

    	 

    	

    

any lien upon any of the property
of either SISI or SRI pursuant to the provisions of the respective Certificate of Incorporation or Bylaws of SISI and SRI or any
agreement or other instrument known to us to which either company is a party or by which such company may be bound.

 

(e)          There
are no actions, suits or proceedings pending or, to our knowledge, overtly threatened against or affecting either SISI or SRI or
any property of either company in any court or before any arbitrator of any kind or before or by any governmental authority with
respect to the Transaction Documents.

 

(f)          SISI
had the right to assign its interest in the Existing Franchise Agreements and Existing Development Agreements to the Master Issuer
as contemplated in the SISI Contribution Agreement and the Master Issuer had the right to assign its interest in the Existing Franchise
Agreements and Existing Development Agreements to the Franchise Assets Holder as contemplated in the Franchise Assets Contribution
Agreement without the consent of any other parties to such Existing Franchise Agreements and Existing Development Agreements, and
the Existing Franchise Agreements and Existing Development Agreements became enforceable by the Master Issuer and the Franchise
Assets Holder as assignees.

 

(g)          The
UCC-1 Financing Statement covering the Contributed Assets as described in the SISI Contribution Agreement and naming SISI as Debtor
and the Master Issuer as Secured Party was in proper form for filing with the County Clerk of Oklahoma County, Oklahoma, and upon
such filing, the security interest granted in the SISI Contribution Agreement in such Contributed Assets became perfected to the
extent that a security interest in such Contributed Assets can be perfected by filing.

 

(h)          The
UCC-1 Financing Statement covering the Contributed Assets as described in the RE Interests Agreement and naming SRI as Debtor and
SRI Real Estate Assets Holdco as Secured Party was in proper form for filing with the County Clerk of Oklahoma County, Oklahoma,
and upon such filing, the security interest granted in the RE Interests Agreement in such Contributed Assets became perfected to
the extent that a security interest in such Contributed Assets can be perfected by filing.

 

(i)          SRI
had the right to assign its interest in the Master Leases to the SRI Real Estate Assets Holder as contemplated in the RE Assets
Agreement without the consent of any parties to the Master Leases and the Master Lease Agreements became enforceable by SRI Real
Estate Assets Holder. Oklahoma case law provides that the law of the state where the real property is located would govern any
disputes concerning interests in such real property. Denney v. Teel, 688 P.2d 803 (Okla. 1984).

    	 

    	

    

Exhibit
2-D

 

Capitalized terms
used within this Exhibit 2-D shall have the meanings set forth in the respective opinion letters in which they will be delivered.

 

Dentons US LLP Opinions

 

Dentons 2018 Corporate Opinion

 

1.Citibank
is, based upon a certificate of corporate existence issued by the Comptroller of the Currency, validly existing as a national banking
association in good standing under the laws of the United States, and has the requisite entity power and authority to execute and
deliver each Agreement to which it is a party and to perform its obligations thereunder.

 

2.Each
of the Agreements has been duly authorized by all requisite action, executed and delivered by the Trustee.

 

3.Each
of the Agreements, assuming (unless opined to herein) the necessary entity power and authority, authorization, execution, authentication,
payment and delivery of and by each party thereto, is a valid and legally binding agreement under the laws of the State of New
York, enforceable thereunder in accordance with its terms against the Trustee.

 

4.With
respect to the Trustee, the performance of its obligations under each of the Agreements and the consummation of the transactions
contemplated thereby will not result in any breach or violation of its articles of association or bylaws.

 

5.With
respect to the Trustee, to our knowledge, there is no legal action, suit, proceeding or investigation before any court, agency
or other governmental body pending or threatened (by written communication to it of a present intention to initiate such action,
suit, proceeding or investigation) against it which, either in one instance or in the aggregate, draws into question the validity
of, seeks to prevent the consummation of any of the transactions contemplated by or would impair materially its ability to perform
its obligations under the Agreements.

 

6.With
respect to the Trustee, the performance of its obligations under each of the Agreements to which it is a party and the consummation
of the transactions contemplated thereby do not require any consent, approval, authorization or order of, filing with or notice
to any United States federal or State of New York court, agency or other governmental body under any United States federal or State
of New York statute or regulation that is normally applicable to transactions of the type contemplated by the Agreements, except
such as may be required under the securities laws of any State of the United States or such as have been obtained, effected or
given.

 

7.With
respect to the Trustee, the performance of its obligations under each of the Agreements and the consummation of the transactions
contemplated thereby will not result in any breach or violation by the Trustee of any United States federal or State of New York
statute or regulation that is normally applicable to transactions of the type contemplated by the Agreements.

    	 

    	

    

8.The
Notes have been duly authenticated and delivered by the Trustee in accordance with the Indenture.

 

Dentons
2018 Reliance Letter

 

9.In
connection with the securities described above, you may rely upon our opinion letter, dated May 20, 2011 and a copy of which is
attached hereto, as of the date thereof and as if such opinion letter was addressed to you, subject to all of the assumptions,
qualifications and other limitations set forth therein.

 

2011 Opinion

 

(a)          Citibank,
based upon a certificate of corporate existence issued by the Comptroller of the Currency, is validly existing as a banking association
in good standing under the laws of the United States, and has the requisite entity power and authority to execute and deliver each
Agreement to which it is a party and to perform its obligations thereunder.

 

(b)          Each
of the Agreements has been duly authorized by all requisite action, executed and delivered by the Trustee.

 

(c)          Each
of the Agreements, assuming (unless opined to herein) the necessary entity power and authority, authorization, execution, authentication,
payment and delivery of and by each party thereto, is a valid and legally binding agreement under the laws of the State of New
York, enforceable thereunder in accordance with its terms against the Trustee.

 

(d)          With
respect to the Trustee, the performance of its obligations under each of the Agreements and the consummation of the transactions
contemplated thereby will not result in any breach or violation of its articles of association or bylaws.

 

(e)          With
respect to the Trustee, to our knowledge, there is no legal action, suit, proceeding or investigation before any court, agency
or other governmental body pending or threatened (by written communication to it of a present intention to initiate such action,
suit or proceeding) against it which, either in one instance or in the aggregate, draws into question the validity of, seeks to
prevent the consummation of any of the transactions contemplated by or would impair materially its ability to perform its obligations
under the Agreements.

 

(f)          With
respect to the Trustee, the performance of its obligations under each of the Agreements to which it is a party and the consummation
of the transactions contemplated thereby do not require any consent, approval, authorization or order of, filing with or notice
to any United States federal or State of New York court, agency or other governmental body under any United States federal or State
of New York statute or regulation that is normally applicable to transactions of the type contemplated by the Agreements, except
such as may be required under the securities laws of any State of the United States or such as have been obtained, effected or
given.

 

(g)          With
respect to the Trustee, the performance of its obligations under each of the Agreements and the consummation of the transactions
contemplated thereby will not result in

    	 

    	

    

any breach or violation of any
United States federal or State of New York statute or regulation that is normally applicable to transactions of the type contemplated
by the Agreements.

 

(h)          The
Notes have been duly authenticated and delivered by the Trustee in accordance with the Agreements.

 

Andrascik &
Tita LLC Opinion

 

A&T
2018 Enforceability Opinion

 

10.         The
Servicing Agreement constitutes a legal, valid and binding agreement of the Servicer enforceable in accordance with its terms against
the Servicer subject to (i) applicable bankruptcy, insolvency, fraudulent conveyance, receivership, conservatorship, reorganization,
liquidation, moratorium, readjustment of debt or other similar laws affecting the enforcement of creditors’ rights generally,
as such laws would apply in the event of the insolvency, receivership, conservatorship, liquidation or reorganization of, or other
similar occurrence with respect to the Servicer, or in the event of any moratorium or similar occurrence affecting the Servicer
and (ii) general principles of equity, including, without limitation, principles of commercial reasonableness, good faith and fair
dealing (regardless of whether enforcement is sought in a proceeding at law or in equity), and except that the enforcement of rights
with respect to indemnification, limitations and releases of liability and covenants not to sue, and contribution obligations and
provisions (a) purporting to waive or limit rights to trial by jury, oral amendments to written agreements or rights of set off,
(b) relating to submission to jurisdiction, venue or service of process, or (c) relating to severability clauses, may be limited
by applicable law or considerations of public policy.

 

11.         On
the basis of our participation in the preparation of the Midland Offering Memorandum Section and, in the course of such preparation,
in conferences, discussions and/or other communications with representatives of Midland with respect thereto, and relying as to
facts necessary to the determination of materiality to the extent we may do so in the exercise of our professional responsibility
based upon the certificates and statements of officers and other representatives of Midland and subject to the other matters set
forth in this letter, during the course of such participation, no facts have come to our attention that caused us to believe that
with respect to the Preliminary Offering Memorandum, as of [] a.m. (New York City time) on [], 2018 with respect to the Offered
Notes, which we have been informed by you was the time at which sales to investors of the Offered Notes were first made, or with
respect to the Final Offering Memorandum, as of its date and as of the date hereof, the information set forth in the Midland Offering
Memorandum Section (other than any financial, statistical and/or accounting information contained in or omitted from the Midland
Offering Memorandum Section, as to which we do not comment), in each case to the extent that such information relates to Midland
solely by virtue of its acting as Servicer under the Servicing Agreement, contained or contains an untrue statement of a material
fact or omitted or omits to state a material fact necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading.

    	 

    	

    

In-House
Counsel of Servicer Opinion

 

Midlands
2018 Opinion

 

12.         PNC
Bank is a national banking association duly organized, validly existing and in good standing under the laws of the United States
of America, with full power and authority under such laws to enter into and perform its obligations under the Servicing Agreement.

 

13.         The
Servicing Agreement has been duly authorized, executed and delivered by PNC Bank.

 

14.         No
consent, approval, authorization or order of any federal court, governmental agency or body is or was required in connection with
the execution, delivery and performance by PNC Bank of the Servicing Agreement, except for those consents, approvals, authorizations
or orders that previously have been obtained.

 

15.         PNC
Bank’s execution, delivery and fulfillment of the terms of the Servicing Agreement do not (a) conflict with or result in
a violation of the Articles of Association or By-Laws of PNC Bank or (b) violate applicable provisions of federal statutory laws
or regulations known by me to be applicable to PNC Bank and to transactions of the type contemplated by the Servicing Agreement,
the violation of which would have a material adverse effect on the ability of PNC Bank to perform its obligations under the Servicing
Agreement.

 

16.         PNC
Bank’s execution, delivery and fulfillment of the terms of the Servicing Agreement do not result in a breach or violation
of, or constitute a default or an event which, with the passing of time, the giving of notice or both, would constitute a default
under, or result in a right of acceleration of its obligations under, the terms of any indenture or other agreement or instrument
known to me to which PNC Bank is a party or by which it is bound or any order, judgment or decree of any federal or state court,
administrative agency or governmental instrumentality known by me to be applicable to PNC Bank, the breach, violation, default
or acceleration of which would have a material adverse effect on the ability of PNC Bank to perform its obligations under the Servicing
Agreement.

 

17.         To
my knowledge, there are no actions, suits or proceedings against PNC Bank, pending before any federal or state court, governmental
agency or arbitrator or overtly threatened in writing against PNC Bank which challenge the enforceability or validity of the Servicing
Agreement or any action taken or to be taken in connection with PNC Bank’s obligations contemplated therein or which, either
individually or in the aggregate, is reasonably likely to materially impair PNC Bank’s ability to perform under the terms
of the Servicing Agreement.

 

Back-up
Manager In-House Opinions

 

18.         The
Company has been duly incorporated and is validly existing as a corporation under the laws of the State of Maryland.

 

19.         The
addressees of this opinion shall be entitled to rely on the opinions issued by the Company on May 20, 2011 and May 17, 2016, as
if they were dated on the date hereof and delivered as a named addressee thereof.EX-10.6

 Exhibit 10.6 
  

SOLID BIOSCIENCES INC. 

FORM OF 2018 OMNIBUS INCENTIVE PLAN 

 TABLE OF CONTENTS 

									
	 	 	 	 	 	  	Page	 
		
	ARTICLE I PURPOSE	  	 	1	 
		
	ARTICLE II DEFINITIONS	  	 	1	 
		 	2.1	 	 “Acquisition Event”
	  	 	1	 
		 	2.2	 	 “Affiliate”
	  	 	1	 
		 	2.3	 	 “Appreciation Award”
	  	 	1	 
		 	2.4	 	 “Award”
	  	 	2	 
		 	2.5	 	 “Board”
	  	 	2	 
		 	2.6	 	 “Cause”
	  	 	2	 
		 	2.7	 	 “Change in Control”
	  	 	2	 
		 	2.8	 	 “Change in Control Price”
	  	 	3	 
		 	2.9	 	 “Code”
	  	 	3	 
		 	2.10	 	 “Committee”
	  	 	3	 
		 	2.11	 	 “Common Stock”
	  	 	3	 
		 	2.12	 	 “Company”
	  	 	3	 
		 	2.13	 	 “Competitor”
	  	 	4	 
		 	2.14	 	 “Consultant”
	  	 	4	 
		 	2.15	 	 “Detrimental Activity”
	  	 	4	 
		 	2.16	 	 “Disability”
	  	 	5	 
		 	2.17	 	 “Disparagement”
	  	 	5	 
		 	2.18	 	 “Dividends”
	  	 	5	 
		 	2.19	 	 “Effective Date”
	  	 	5	 
		 	2.20	 	 “Eligible Employee”
	  	 	5	 
		 	2.21	 	 “Exchange Act”
	  	 	5	 
		 	2.22	 	 “Exercisable Awards”
	  	 	5	 
		 	2.23	 	 “Fair Market Value”
	  	 	6	 
		 	2.24	 	 “Family Member”
	  	 	6	 
		 	2.25	 	 “Incentive Stock Option”
	  	 	6	 
		 	2.26	 	 “Individual Target Award”
	  	 	6	 
		 	2.27	 	 “Lead Underwriter”
	  	 	6	 
		 	2.28	 	 “Lock-Up Period”
	  	 	6	 
		 	2.29	 	 “Non-Employee Director”
	  	 	6	 
		 	2.30	 	 “Non-Qualified Stock Option”
	  	 	6	 
		 	2.31	 	 “Other Extraordinary Event”
	  	 	6	 
		 	2.32	 	 “Other Stock-Based Award”
	  	 	6	 
		 	2.33	 	 “Parent”
	  	 	7	 
		 	2.34	 	 “Participant”
	  	 	7	 
		 	2.35	 	 “Performance-Based Cash Award”
	  	 	7	 
		 	2.36	 	 “Performance Criteria”
	  	 	7	 
		 	2.37	 	 “Performance Period”
	  	 	7	 
		 	2.38	 	 “Performance Share”
	  	 	7	 
		 	2.39	 	 “Performance Unit”
	  	 	7	 

  
 i 

									
		 	2.40	 	 “Person”
	  	 	7	 
		 	2.41	 	 “Plan”
	  	 	7	 
		 	2.42	 	 “Registration Date”
	  	 	7	 
		 	2.43	 	 “Restricted Stock”
	  	 	7	 
		 	2.44	 	 “Restriction Period”
	  	 	8	 
		 	2.45	 	 “Rule 13d-3”
	  	 	8	 
		 	2.46	 	 “Rule 16b-3”
	  	 	8	 
		 	2.47	 	 “Section 162(m)”
	  	 	8	 
		 	2.48	 	 “Section 4.2 Event”
	  	 	8	 
		 	2.49	 	 “Section 409A Covered Award”
	  	 	8	 
		 	2.50	 	 “Section 409A”
	  	 	8	 
		 	2.51	 	 “Securities Act”
	  	 	8	 
		 	2.52	 	 “Stock Option” or “Option”
	  	 	8	 
		 	2.53	 	 “Subsidiary”
	  	 	8	 
		 	2.54	 	 “Ten Percent Stockholder”
	  	 	8	 
		 	2.55	 	 “Termination”
	  	 	8	 
		 	2.56	 	 “Termination of Consultancy”
	  	 	8	 
		 	2.57	 	 “Termination of Directorship”
	  	 	9	 
		 	2.58	 	 “Termination of Employment”
	  	 	9	 
		 	2.59	 	 “Transfer”
	  	 	9	 
		 	2.60	 	 “Transition Period”
	  	 	9	 
		
	ARTICLE III ADMINISTRATION	  	 	10	 
		 	3.1	 	 The Committee
	  	 	10	 
		 	3.2	 	 Grant and Administration of Awards
	  	 	10	 
		 	3.3	 	 Award Agreements
	  	 	11	 
		 	3.4	 	 Guidelines
	  	 	11	 
		 	3.5	 	 Section 162(m)
	  	 	11	 
		 	3.6	 	 Delegation; Advisors
	  	 	11	 
		 	3.7	 	 Decisions Final
	  	 	11	 
		 	3.8	 	 Procedures
	  	 	12	 
		 	3.9	 	 Liability; Indemnification
	  	 	12	 
		
	ARTICLE IV SHARE LIMITATIONS	  	 	12	 
		 	4.1	 	 Shares
	  	 	12	 
		 	4.2	 	 Changes
	  	 	14	 
		 	4.3	 	 Minimum Purchase Price
	  	 	15	 
		
	ARTICLE V ELIGIBILITY	  	 	16	 
		 	5.1	 	 General Eligibility
	  	 	16	 
		 	5.2	 	 Incentive Stock Options
	  	 	16	 
		 	5.3	 	 General Requirement
	  	 	16	 

  
 ii 

									
		
	ARTICLE VI STOCK OPTIONS	  	 	16	 
		 	6.1	 	 Stock Options
	  	 	16	 
		 	6.2	 	 Incentive Stock Options
	  	 	17	 
		 	6.3	 	 Terms of Stock Options
	  	 	17	 
		
	ARTICLE VII RESTRICTED STOCK	  	 	20	 
		 	7.1	 	 Awards of Restricted Stock
	  	 	20	 
		 	7.2	 	 Awards and Certificates
	  	 	20	 
		 	7.3	 	 Restrictions and Conditions
	  	 	21	 
		
	ARTICLE VIII OTHER STOCK-BASED AWARDS	  	 	22	 
		 	8.1	 	 Other Awards
	  	 	22	 
		 	8.2	 	 Terms and Conditions
	  	 	23	 
		
	ARTICLE IX PERFORMANCE-BASED CASH AWARDS	  	 	24	 
		 	9.1	 	 Performance-Based Cash Awards
	  	 	24	 
		 	9.2	 	 Terms and Conditions
	  	 	25	 
		
	ARTICLE X CHANGE IN CONTROL PROVISIONS	  	 	27	 
		
	ARTICLE XI TERMINATION OR AMENDMENT OF PLAN	  	 	28	 
		
	ARTICLE XII UNFUNDED PLAN	  	 	28	 
		
	ARTICLE XIII GENERAL PROVISIONS	  	 	29	 
		 	13.1	 	 Legend
	  	 	29	 
		 	13.2	 	 Other Plans
	  	 	29	 
		 	13.3	 	 No Right to Employment, Consultancy, or Directorship
	  	 	29	 
		 	13.4	 	 Withholding of Taxes
	  	 	29	 
		 	13.5	 	 No Assignment of Benefits
	  	 	30	 
		 	13.6	 	 Listing and Other Conditions
	  	 	30	 
		 	13.7	 	 Governing Law
	  	 	30	 
		 	13.8	 	 Construction
	  	 	30	 
		 	13.9	 	 No Acquired Rights
	  	 	31	 
		 	13.10	 	 Data Protection
	  	 	31	 
		 	13.11	 	 Costs
	  	 	31	 
		 	13.12	 	 No Right to Same Benefits
	  	 	31	 
		 	13.13	 	 Death or Disability
	  	 	31	 
		 	13.14	 	 Section 16(b) of the Exchange Act
	  	 	32	 
		 	13.15	 	 Section 409A
	  	 	32	 
		 	13.16	 	 Successor and Assigns
	  	 	33	 
		 	13.17	 	 Severability of Provisions
	  	 	33	 
		 	13.18	 	 Participants Subject to Taxation Outside the U.S.; No Tax Equalization
	  	 	33	 

  
 iii 

									
		 	13.19	 	 Payments to Minors, Etc
	  	 	33	 
		 	13.20	 	 Headings and Captions
	  	 	33	 
		 	13.21	 	 Recoupment
	  	 	34	 
		 	13.22	 	 Reformation
	  	 	34	 
		 	13.23	 	 Electronic Communications
	  	 	34	 
		 	13.24	 	 Agreement
	  	 	34	 
		 	13.25	 	 Transition Period
	  	 	34	 
		
	ARTICLE XIV EFFECTIVE DATE OF PLAN	  	 	35	 
		
	ARTICLE XV TERM OF PLAN	  	 	35	 
		
	EXHIBIT A: PERFORMANCE CRITERIA	  	 	Ex. A-1	 
	EXHIBIT B: UNITED KINGDOM ADDENDUM	  	 	Ex. B-1	 
		 	1.	 	 Purpose
	  	 	Ex. B-1	 
		 	2.	 	 Definitions
	  	 	Ex. B-1	 
		 	3.	 	 Terms
	  	 	Ex. B-1	 
		 	4.	 	 Withholding Obligations
	  	 	Ex. B-1	 
		 	5.	 	 Section 431 Elections
	  	 	Ex. B-2	 

  
 iv 

 SOLID BIOSCIENCES INC. 

2018 OMNIBUS INCENTIVE PLAN 

ARTICLE I  
 PURPOSE

 The purpose of this Solid Biosciences Inc. 2018 Omnibus Incentive Plan is to enhance the profitability and value of the Company for
the benefit of its stockholders by enabling the Company to offer Eligible Employees, Consultants, and Non-Employee Directors incentive awards to attract, retain, and reward such individuals and strengthen the
mutuality of interests between such individuals and the Company’s stockholders. The Plan, as set forth herein, is effective as of the Effective Date (as defined in Article XIV). 

ARTICLE II 
 DEFINITIONS

 For purposes of the Plan, the following terms shall have the following meanings: 

2.1 “Acquisition Event” 

means a merger or consolidation in which the Company is not the surviving entity, any transaction that results in the acquisition of all or
substantially all of the Company’s outstanding Common Stock by a single person or entity or by a group of persons or entities acting in concert, or the sale or transfer of all or substantially all of the Company’s assets. 

2.2 “Affiliate” 

means each of the following: (a) any Subsidiary; (b) any Parent; (c) any corporation, trade, or business (including a
partnership or limited liability company) that is directly or indirectly controlled 50% or more (whether by ownership of stock, assets, or an equivalent ownership interest or voting interest) by the Company or any Affiliate; (d) any
corporation, trade, or business (including a partnership or limited liability company) that directly or indirectly controls 50% or more (whether by ownership of stock, assets, or an equivalent ownership interest or voting interest) of the Company;
and (e) any other entity in which the Company or any Affiliate has a material equity interest and that is designated as an “Affiliate” by resolution of the Committee. 

2.3 “Appreciation Award” 

means any Stock Option or any Other Stock-Based Award that is based on the appreciation in value of a
share of Common Stock in excess of an amount at least equal to the Fair Market Value on the date such Stock Option or Other Stock-Based Award is granted. 

  
 1 

 2.4 “Award” 

means any award granted or made under the Plan of any Stock Option, Restricted Stock, Other
Stock-Based Award, or Performance-Based Cash Award. 

2.5 “Board” 

means the Board of Directors of the Company. 

2.6 “Cause” 

means, with respect to a Participant’s Termination of Employment or Termination of Consultancy, unless otherwise defined in the
applicable Award agreement or other written agreement approved by the Committee, a termination due to (i) the failure by the Participant to perform such duties as are reasonably requested by the Company; (ii) the Participant’s
disregard of his or her duties or failure to act, where such action would be in the ordinary course of the Participant’s duties; (iii) the failure by the Participant to observe policies of the Company or any Affiliate generally applicable
to employees of the Company or any Affiliate; (iv) the gross negligence or willful misconduct by the Participant in the performance of his or her duties; (v) the commission by the Participant of any act of fraud, theft, dishonesty, or
self-dealing with respect to the Company or any Affiliate, or any felony or criminal act involving moral turpitude; (vi) the Participant’s conviction of, or plea of guilty or nolo contendere to, a felony; (vii) any breach by the
Participant of the provisions of any confidentiality, non-competition, or non-solicitation agreement between the Participant and the Company or any Affiliate, or any other agreement or contract with the
Company or any Affiliate; (viii) chronic absenteeism (excluding vacations, illnesses, or leaves of absence approved by the Company); (ix) any alcohol or other substance abuse by the Participant; or (x) the commission by the
Participant of any violation of any state or federal law relating to the workplace environment (including, without limitation, laws relating to sexual harassment or age, sex, or other prohibited discrimination). With respect to a Participant’s
Termination of Directorship, “cause” means an act or failure to act that constitutes cause for removal of a director under Delaware law. 

2.7 “Change in Control” 

unless otherwise defined in the applicable Award agreement or other written agreement approved by the Committee and subject to
Section 13.15(b), means the occurrence of any of the following: 
 (a) the acquisition (including through purchase, reorganization,
merger, consolidation, or similar transaction), directly or indirectly, in one or more transactions by a Person (other than any Person or group of Persons consisting solely of stockholders of the Company as of the date immediately before the
Registration Date) of beneficial ownership (within the meaning of Rule 13d-3) of securities representing 50% or more of the combined voting power of the securities of the Company entitled to vote
generally in the election of directors, calculated on a fully diluted basis after giving effect to such acquisition; 
 (b) an election of
Persons to the Board that causes two-thirds of the Board to consist of Persons other than (i) members of the Board on the Effective Date and (ii) Persons who were nominated for election as members of
the Board at a time when two-thirds of the Board consisted of Persons who were members of the Board on the Effective Date; provided that any Person nominated for election by a Board at least two-thirds of which consisted of Persons described in clauses (i) or (ii) or by Persons who were themselves nominated by such Board shall be deemed to have been nominated by a Board consisting of Persons
described in clause (i); or 

  
 2 

 (c) the sale or other disposition, directly or indirectly, of all or substantially all of the
assets of the Company and its subsidiaries, taken as a whole, to any Person (other than any Person or group of Persons consisting solely of stockholders of the Company as of the date immediately before the Registration Date); 

provided, however, that a Change in Control shall be deemed to not have occurred if such Change in Control results from the issuance, in
connection with a bona fide transaction or series of transactions with the primary purpose of providing equity financing to the Company or any of its Affiliates, of voting securities of the Company or any of its Affiliates or any rights to acquire
voting securities of the Company or any of its Affiliates that are convertible into voting securities. 
 2.8 “Change in Control
Price” 
 has the meaning set forth in Section 10.1. 

2.9 “Code” 

means the Internal Revenue Code of 1986, as amended, and all rules and regulations promulgated thereunder. Any reference to any Section of the
Code shall also be a reference to any successor provision. 
 2.10 “Committee” 

means: (a) with respect to the application of the Plan to Eligible Employees and Consultants, the Compensation Committee of the Board or
such other committee or subcommittee that is appointed by the Board, in each case, consisting of two or more non-employee directors, each of whom is intended to be (i) to the extent required by Rule 16b-3, a Non-Employee Director; (ii) to the extent required by Section 162(m), an “outside director” as defined under Section 162(m); and
(iii) as applicable, an “independent director” as defined under the Nasdaq Listing Rules, the NYSE Listed Company Manual, or other applicable stock exchange rules; and (b) with respect to the application of the Plan to Non-Employee Directors, the Board. It is intended that, absent an affirmative decision by the Board to appoint a separate Committee, the Compensation Committee of the Board shall serve as the “Committee”
with respect to the application of the Plan to Eligible Employees and Consultants. To the extent that no Committee exists that has the authority to administer the Plan, the functions of the Committee shall be exercised by the Board, and all
references herein to the Committee shall be deemed references to the Board. If for any reason the appointed Committee does not meet the requirements of Rule 16b-3 or Section 162(m), such
noncompliance shall not affect the validity of Awards, grants, interpretations, or other actions of the Committee. 
 2.11
“Common Stock” 
 means the common stock of the Company, par value $0.001 per share. 

2.12 “Company” 

means Solid Biosciences Inc., a Delaware corporation, and its successors by operation of law. 

  
 3 

 2.13 “Competitor” 

means any Person that is, directly or indirectly, in competition with the business or activities of the Company and its Affiliates. 

2.14 “Consultant” 

means any natural person who provides bona fide consulting or advisory services to the Company or its Affiliates, provided that
such services are not in connection with the offer or sale of securities in a capital-raising transaction, and do not, directly or indirectly, promote or maintain a market for the Company’s or its
Affiliates’ securities. 
 2.15 “Detrimental Activity” 

means, unless otherwise defined in the applicable Award agreement or other written agreement approved by the Committee: 

(a) without written authorization from the Company, disclosure to any Person outside the Company and its Affiliates or the use in any manner,
except as necessary in the furtherance of the Participant’s responsibilities to the Company or any of its Affiliates, at any time, of any confidential information, trade secrets, or proprietary information relating to the business of the
Company or any of its Affiliates that is acquired by the Participant at any time before the Participant’s Termination; 
 (b) any
activity while employed or performing services that results, or if known could have reasonably been expected to result, in the Participant’s Termination for Cause; 

(c) without written authorization from the Company, directly or indirectly, in any capacity whatsoever, (i) owning, managing, operating,
controlling, being employed by (whether as an employee, consultant, independent contractor, or otherwise, and whether or not for compensation), or rendering services to any Competitor; (ii) soliciting, aiding, or inducing any customer of the
Company or any Subsidiary to curtail, reduce, or terminate its business relationship with the Company or any Subsidiary, or in any other way interfering with any such business relationships with the Company or any Subsidiary; (iii) soliciting,
aiding, or inducing any employee, representative, or agent of the Company or any Subsidiary to leave such employment or retention or to accept employment with or render services to or with any other person, firm, corporation, or other entity
unaffiliated with the Company or hiring or retaining any such employee, representative, or agent or taking any action to materially assist or aid any other person, firm, corporation, or other entity in identifying, hiring, or soliciting any such
employee, representative, or agent; or (iv) interfering, or aiding, or inducing any other person or entity in interfering with the relationship between the Company, its Subsidiaries, and any of their respective vendors, joint venturers, or
licensors; 
 (d) a material breach of any restrictive covenant contained in any agreement between the Participant and the Company or an
Affiliate; or 
 (e) the Participant’s Disparagement, or inducement of other to do so, of the Company or its Affiliates or their past or
present officers, directors, employees, or products. 
 Only the Chief Executive Officer or the Chief Financial Officer of the Company (or their designee,
as evidenced in writing) shall have the authority to provide the Participant, except for himself or herself, with written authorization to engage in the activities contemplated in subsections (a) and (c). 

  
 4 

 2.16 “Disability” 

means, unless otherwise defined in the applicable Award agreement or other written agreement approved by the Committee, with respect to
a Participant’s Termination, a “permanent and total disability,” as defined in Section 22(e)(3) of the Code. A Disability shall only be deemed to occur at the time of the determination by the Committee of the Disability.
Notwithstanding the foregoing, for an Award that provides for payment or settlement triggered upon a Disability and that constitutes a Section 409A Covered Award, the foregoing definition shall apply for purposes of vesting of such Award,
provided that for purposes of payment or settlement of such Award, such Award shall not be paid (or otherwise settled) until the earliest of: (A) the Participant’s “disability” within the meaning of
Section 409A(a)(2)(C) of the Code, (B) the Participant’s “separation from service” within the meaning of Section 409A of the Code, and (C) the date such Award would otherwise be settled pursuant to the terms of the
Award agreement. 
 2.17 “Disparagement” 

means making comments or statements to the press, the Company’s or its Affiliates’ employees, consultants, or any individual or
entity with whom the Company or its Affiliates has a business relationship that could reasonably be expected to adversely affect in any manner: (a) the conduct of the business of the Company or its Affiliates (including, without limitation, any
products or business plans or prospects); or (b) the business reputation of the Company or its Affiliates, or any of their products, or their past or present officers, directors, or employees. For purposes of this Section 2.17,
“Disparagement” does not include (i) compliance with legal process or subpoenas to the extent only truthful statements are rendered in such compliance attempt, (ii) statements made in response to an inquiry from a court or
regulatory body, or (iii) reporting possible violations of federal law or regulation to any governmental agency or entity, including but not limited to, the Department of Justice, the Securities and Exchange Commission, the U.S. Congress, or
any Inspector General, or making other disclosures that are protected under the whistleblower provisions of applicable law or regulation. 

2.18 “Dividends” 

means dividends, dividend equivalents, or other distributions. 

2.19 “Effective Date” 

means the effective date of the Plan, as defined in Article XIV. 

2.20 “Eligible Employee” 

means an employee of the Company or an Affiliate. 

2.21 “Exchange Act” 

means the Securities Exchange Act of 1934, as amended, and all rules and regulations promulgated thereunder. Any references to any Section of
the Exchange Act shall also be a reference to any successor provision. 
 2.22 “Exercisable Awards” 

has the meaning set forth in Section 4.2(d). 

  
 5 

 2.23 “Fair Market Value” 

unless otherwise required by any applicable provision of the Code, means as of any date and except as provided below, (a) the closing
price reported for the Common Stock on such date: (i) as reported on the principal national securities exchange in the United States on which it is then traded, or (ii) if not traded on any such national securities exchange, as quoted on
an automated quotation system sponsored by the Financial Industry Regulatory Authority; or (b) if the Common Stock shall not have been reported or quoted on such date, on the first day prior thereto on which the Common Stock was reported or
quoted. If the Common Stock is not traded, listed, or otherwise reported or quoted, then Fair Market Value means the fair market value of the Common Stock as determined by the Committee in good faith in whatever manner it considers appropriate,
taking into account the requirements of Section 409A or Section 422 of the Code, as applicable. Notwithstanding anything herein to the contrary, for purposes of any Stock Options that are granted effective on the Registration Date, the
Fair Market Value shall equal the initial public offering price of the Common Stock. 
 2.24 “Family Member” 

means “family member,” as defined in Section A.1.(a)(5) of the general instructions of Form
S-8, as may be amended from time to time. 
 2.25 “Incentive Stock Option”

 means any Stock Option awarded to an Eligible Employee of the Company, its Subsidiaries, or its Parent intended to be and designated
as an “Incentive Stock Option” within the meaning of Section 422 of the Code. 
 2.26 “Individual Target
Award” 
 has the meaning in Section 9.1. 

2.27 “Lead Underwriter” 

has the meaning in Section 13.24. 

2.28 “Lock-Up Period” 

has the meaning in Section 13.24. 

2.29 “Non-Employee Director” 

means a “non-employee director,” as defined in
Rule 16b-3. 
 2.30 “Non-Qualified Stock
Option” 
 means any Stock Option that is not an Incentive Stock Option. 

2.31 “Other Extraordinary Event” 

has the meaning in Section 4.2(b). 

2.32 “Other Stock-Based Award” 

means an Award under Article VIII that is valued in whole or in part by reference to, or is payable in or otherwise based on, Common
Stock. 

  
 6 

 2.33 “Parent” 

means any “parent corporation” of the Company within the meaning of Section 424(e) of the Code. 

2.34 “Participant” 

means an Eligible Employee, Non-Employee Director, or Consultant to whom an Award has been granted
pursuant to the Plan. 
 2.35 “Performance-Based Cash Award” 

means a cash Award under Article IX that is payable or otherwise based on the attainment of certain
pre-established performance goals during a Performance Period. 
 2.36 “Performance
Criteria” 
 has the meaning set forth in Exhibit A. 

2.37 “Performance Period” 

means each fiscal year of the Company or such other period (as specified by the Committee) over which the attainment of performance goals is
measured. 
 2.38 “Performance Share” 

means an Other Stock-Based Award of the right to receive a number of shares of Common Stock or cash of
an equivalent value at the end of a specified Performance Period. 
 2.39 “Performance Unit” 

means an Other Stock-Based Award of the right to receive a fixed dollar amount, payable in cash or
Common Stock or a combination of both, at the end of a specified Performance Period. 
 2.40 “Person” 

means any individual, entity (including any employee benefit plan or any trust for an employee benefit plan), or group (within the meaning of
Section 13(d)(3) or Section 14(d)(2) of the Exchange Act, or any successor provision). 
 2.41 “Plan” 

means this Solid Biosciences Inc. 2018 Omnibus Incentive Plan, as amended from time to time. 

2.42 “Registration Date” 

means the first date on or after the Effective Date (a) on which the Company sells its Common Stock in a bona fide, firm
commitment underwriting pursuant to a registration statement under the Securities Act, or (b) any class of common equity securities of the Company is required to be registered under Section 12 of the Exchange Act. 

2.43 “Restricted Stock” 

means an Award of shares of Common Stock that is subject to restrictions pursuant to Article VII. 

  
 7 

 2.44 “Restriction Period” 

has the meaning set forth in Section 7.3(a). 

2.45 “Rule 13d-3” 

means Rule 13d-3 under Section 13(d) of the Exchange Act as then in effect or any successor
provision and all rules and regulations promulgated thereunder. 
 2.46
“Rule 16b-3” 
 means
Rule 16b-3 under Section 16(b) of the Exchange Act as then in effect or any successor provision and all rules and regulations promulgated thereunder. 

2.47 “Section 162(m)” 

means the exception for performance-based compensation under Section 162(m) of the Code and all
rules and regulations promulgated thereunder. 
 2.48 “Section 4.2 Event” 

has the meaning set forth in Section 4.2(b). 

2.49 “Section 409A Covered Award” 

has the meaning set forth in Section 13.15. 

2.50 “Section 409A” 

means the nonqualified deferred compensation rules under Section 409A of the Code and all rules and regulations promulgated thereunder.

 2.51 “Securities Act” 

means the Securities Act of 1933, as amended, and all rules and regulations promulgated thereunder. Any reference to any Section of the
Securities Act shall also be a reference to any successor provision. 
 2.52 “Stock Option” or “Option”

 means any option to purchase shares of Common Stock granted pursuant to Article VI. 

2.53 “Subsidiary” 

means any “subsidiary corporation” of the Company within the meaning of Section 424(f) of the Code. 

2.54 “Ten Percent Stockholder” 

means a person owning stock possessing more than 10% of the total combined voting power of all classes of stock of the Company, its
Subsidiaries, or its Parent. 
 2.55 “Termination” 

means a Termination of Consultancy, Termination of Directorship, or Termination of Employment, as applicable. 

2.56 “Termination of Consultancy” 

means: (a) that the Consultant is no longer acting as a consultant to the Company or an Affiliate; or (b) when an entity that is
retaining a Participant as a Consultant ceases to be an 

  
 8 

 
Affiliate, unless the Participant otherwise is, or thereupon becomes, a Consultant to the Company or another Affiliate at the time the entity ceases to be an Affiliate. In the event that a
Consultant becomes an Eligible Employee or a Non-Employee Director upon the termination of his consultancy, unless otherwise determined by the Committee, no Termination of Consultancy shall be deemed to occur
until such time as such Consultant is no longer a Consultant, an Eligible Employee, or a Non-Employee Director. Notwithstanding the foregoing, the Committee may otherwise define Termination of Consultancy in
the Award agreement or, if no rights of a Participant are reduced, may otherwise define Termination of Consultancy thereafter. 
 2.57
“Termination of Directorship” 
 means that the Non-Employee Director has
ceased to be a director of the Company; except that if a Non-Employee Director becomes an Eligible Employee or a Consultant upon the termination of his directorship, his ceasing to be a director of the Company
shall not be treated as a Termination of Directorship unless and until the Participant has a Termination of Employment or Termination of Consultancy, as the case may be. 

2.58 “Termination of Employment” 

means: (a) a termination of employment (for reasons other than a military or other approved leave of absence) of a Participant from the
Company and its Affiliates; or (b) when an entity that is employing a Participant ceases to be an Affiliate, unless the Participant otherwise is, or thereupon becomes, employed by the Company or another Affiliate at the time the entity ceases
to be an Affiliate. In the event that an Eligible Employee becomes a Consultant or a Non-Employee Director upon the termination of his employment, unless otherwise determined by the Committee, no Termination
of Employment shall be deemed to occur until such time as such Eligible Employee is no longer an Eligible Employee, a Consultant, or a Non-Employee Director. Notwithstanding the foregoing, the Committee may
otherwise define Termination of Employment in the Award agreement or, if no rights of a Participant are reduced, may otherwise define Termination of Employment thereafter. 

2.59 “Transfer” 

means: (a) when used as a noun, any direct or indirect transfer, offer, sale, assignment, pledge, lease, donation, grant, gift, bequest,
hypothecation, encumbrance, charge, or other disposition (including the issuance of equity in a Person), whether for value or no value and whether voluntary or involuntary (including by operation of law), and (b) when used as a verb, to
directly or indirectly transfer, offer, sell, assign, pledge, lease, donate, grant, gift, bequest, hypothecate, encumber, charge, or otherwise dispose of (including the issuance of equity in a Person) whether for value or for no value and whether
voluntarily or involuntarily (including by operation of law). “Transferred” and “Transferable” shall have a correlative meaning. 

2.60 “Transition Period” 

means the “reliance period” under Treasury Regulation Section 1.162-27(f)(2), which
ends on the earliest to occur of the following: (i) the date of the first annual meeting of stockholders at which directors are to be elected that occurs after the close of the third calendar year following the calendar year in which the
Registration Date occurs; (ii) the date the Plan is materially amended for purposes of Treasury Regulation Section 1.162-27(h)(1)(iii); or (iii) the date all shares of Common Stock available for
issuance under the Plan have been allocated. 

  
 9 

 ARTICLE III  

ADMINISTRATION 
 3.1
The Committee. 
 The Plan shall be administered and interpreted by the Committee. 

3.2 Grant and Administration of Awards. 

The Committee shall have full authority and discretion, as provided in Section 3.7, to grant and administer Awards, including the
authority to: 
 (a) select the Eligible Employees, Consultants, and Non-Employee Directors to whom
Awards may from time to time be granted; 
 (b) determine the number of shares of Common Stock to be covered by each Award; 

(c) determine the type and the terms and conditions, not inconsistent with the terms of the Plan, of each Award (including the exercise or
purchase price (if any), any restriction, forfeiture, or limitation, and any vesting schedule or acceleration or waiver thereof); 
 (d)
determine whether a Stock Option is an Incentive Stock Option or Non-Qualified Stock Option; 
 (e)
determine whether to require a Participant, as a condition of the granting of any Award, to refrain from selling or otherwise disposing of Common Stock acquired pursuant to such Award for a period of time, as determined by the Committee; 

(f) condition the grant, vesting, or payment of any Award on the attainment of performance goals (including goals based on the Performance
Criteria) over a Performance Period, set such goals and such period, and certify the attainment of such goals; 
 (g) amend, after the date
of grant, the terms that apply to an Award upon a Participant’s Termination, provided that such amendment does not reduce the Participant’s rights under the Award; 

(h) adopt, alter, or repeal such subplans to the Plan as it shall deem necessary or advisable; 

(i) determine the circumstances under which Common Stock and other amounts payable with respect to an Award may be deferred automatically or at
the election of the Participant, in each case in a manner intended to comply with or be exempt from Section 409A; 
 (j) generally,
exercise such powers and perform such acts as the Committee deems necessary or advisable to promote the best interests of the Company in connection with the Plan that are not inconsistent with the provisions of the Plan and applicable law; 

(k) construe and interpret the terms and provisions of the Plan and any Award (and any agreements relating thereto); and 

(l) correct any defect, supply any omission, or reconcile any inconsistency in the Plan or in any agreement relating thereto. 

  
 10 

 3.3 Award Agreements. 

All Awards shall be evidenced by, and subject to the terms and conditions of, a written notice provided by the Company to the Participant or a
written agreement executed by the Company and the Participant. 
 3.4 Guidelines. 

The Committee shall have the authority to adopt, alter, and repeal such administrative rules, guidelines, and practices governing the Plan as
it shall, from time to time, deem necessary or advisable. The Committee may adopt special guidelines and provisions for persons who are residing in or employed in, or subject to, the taxes of, any domestic or foreign jurisdiction to comply with
applicable tax and securities laws and may impose such limitations and restrictions that it deems necessary or advisable to comply with the applicable tax and securities laws of such domestic or foreign jurisdiction. 

3.5 Section 162(m). 

Notwithstanding anything herein to the contrary, with regard to any provision of the Plan or any agreement relating thereto that is intended
to comply with Section 162(m) following the Transition Period, any action or determination by the Committee shall be permitted only to the extent such action or determination would be permitted under Section 162(m). The Plan has been
adopted by the Board before the Registration Date and is intended to rely on the Transition Period and, following the Transition Period with respect to Awards intended to be “performance-based,” to
comply with the applicable provisions of Section 162(m), and the Plan shall be limited, construed, and interpreted in a manner so as to comply therewith. 

3.6 Delegation; Advisors. 

The Committee may, as it from time to time deems advisable and to the extent permitted by applicable law and stock exchange rules: 

(a) delegate its responsibilities to officers or employees of the Company and its Affiliates, including delegating authority to officers to
grant Awards or execute agreements or other documents on behalf of the Committee; and 
 (b) engage legal counsel, consultants, professional
advisors, and agents to assist in the administration of the Plan and rely upon any opinion or computation received from any such Person. Expenses incurred by the Committee or the Board in the engagement of any such person shall be paid by the
Company. 
 3.7 Decisions Final. 

All determinations, evaluations, elections, approvals, authorizations, consents, decisions, interpretations, and other actions made or taken
by or at the direction of the Company, the Board, or the Committee (or any of its members) arising out of or in connection with the Plan shall be within the sole and absolute discretion of all and each of them, and shall be final, binding, and
conclusive on all employees and Participants and their respective beneficiaries, heirs, executors, administrators, successors, and assigns. 

  
 11 

 3.8 Procedures. 

If the Committee is appointed, the Board shall designate one of the members of the Committee as chairperson, and the Committee shall hold
meetings, subject to the By-Laws of the Company, at such times and places as it shall deem advisable, including by telephone conference or by written consent to the extent permitted by applicable law. A
majority of the Committee members shall constitute a quorum. All determinations of the Committee shall be made by a majority of its members. Any decision or determination reduced to writing and signed by all of the Committee members in accordance
with the By-Laws of the Company shall be fully effective as if it had been made by a vote at a meeting duly called and held. The Committee shall keep minutes of its meetings and shall make such rules and
regulations for the conduct of its business as it shall deem advisable. 
 3.9 Liability; Indemnification. 

(a) The Committee, its members, and any delegate or Person engaged pursuant to Section 3.6 shall not be liable for any action or
determination made in good faith with respect to the Plan. To the maximum extent permitted by applicable law, no officer or employee of the Company or any Affiliate or member or former member of the Committee or of the Board shall be liable for any
action or determination made in good faith with respect to the Plan or any Award granted under it. 
 (b) To the maximum extent permitted by
applicable law and the Certificate of Incorporation and By-Laws of the Company and to the extent not covered by insurance directly insuring such person, each current or former officer or employee of the
Company or any Affiliate and member of the Committee or the Board shall be indemnified and held harmless by the Company against any cost or expense (including reasonable fees of counsel reasonably acceptable to the Committee) or liability (including
any sum paid in settlement of a claim with the approval of the Committee), and shall be advanced amounts necessary to pay the foregoing at the earliest time and to the fullest extent permitted, arising out of any act or omission to act in connection
with the administration of the Plan, except to the extent arising out of such person’s own fraud or bad faith. Such indemnification shall be in addition to any rights of indemnification provided for under applicable law or under the Certificate
of Incorporation or By-Laws of the Company or any Affiliate. Notwithstanding anything herein to the contrary, this indemnification will not apply to the actions or determinations made by an individual with
regard to Awards granted to him. 
 ARTICLE IV  

SHARE LIMITATIONS 
 4.1
Shares. 
 (a) General Limitations. 

(i) Subject to Section 4.2, the aggregate number of shares of Common Stock which may be issued or used for reference purposes or with
respect to which Awards under the Plan may be granted over the term of the Plan is 5,001,000. Subject to Section 4.2, no more than 5,001,000 shares of Common Stock in the aggregate may be issued under the Plan in respect of Incentive Stock
Options. At all times, the Company will reserve and keep available a sufficient number of shares of Common Stock as will be required to satisfy the requirements of all Awards granted and outstanding under the Plan. 

  
 12 

 (ii) If any Appreciation Award expires, terminates, or is canceled for any reason without having
been exercised in full, the number of shares of Common Stock underlying any unexercised portion shall again be available under the Plan. If shares of Restricted Stock or Other Stock-Based Awards that are not
Appreciation Awards are forfeited for any reason, the number of forfeited shares comprising or underlying the Award shall again be available under the Plan. 

(iii) The number of shares of Common Stock available under the Plan shall be reduced by (A) the total number of Appreciation Awards that
have been exercised, regardless of whether any shares of Common Stock underlying such Awards are actually issued to the Participant as the result of a net exercise or settlement, and (B) all shares of Common Stock, not covered by
clause (A) above used to pay any exercise price or tax withholding obligation with respect to any Award. In addition, the Company may not use the cash proceeds it receives from Stock Option exercises to repurchase shares of Common Stock on the
open market for reuse under the Plan. Notwithstanding anything to the contrary herein, Awards that may be settled solely in cash shall not be deemed to use any shares under the Plan. 

(iv) Shares issued under the Plan may be either authorized and unissued Common Stock or Common Stock held in or acquired for the treasury of
the Company, or both. 
 (b) Individual Participant Limitations. Except as otherwise provided herein, at all times after the end of
the Transition Period: 
 (i) the maximum number of shares of Common Stock that may be made subject to Stock Options, Restricted Stock, or
Other Stock-Based Awards denominated in shares of Common Stock granted to each Eligible Employee or Consultant during any fiscal year of the Company is 2,500,500 shares per type of Award (subject to increase
or decrease pursuant to Section 4.2); 

  
 13 

 (ii) the aggregate amount of compensation to be paid to any one Participant in respect of all
Other Stock-Based Awards denominated in dollars and Performance-Based Cash Awards, and granted to such Participant in any one fiscal year of the Company, shall not
exceed $5 million, and any Awards that are cancelled during the year shall be counted against this limit to the extent required by Section 162(m) of the Code; provided, further, that the foregoing limit shall be adjusted on a
proportionate basis for any Performance Period that is not based on one fiscal year of the Company; and 
 (iii) the maximum number of
shares of Common Stock that may be made subject to Awards granted to each Non-Employee Director during any fiscal year of the Company is 1,000,200 shares (subject to increase or decrease pursuant to
Section 4.2); and 
 provided, however, that the foregoing individual Participant limits shall not apply to (x) any Awards granted at any
time that are not intended to be “performance-based” under Section 162(m) of the Code, and (y) the following Awards granted at any time during the Transition Period: (A) Options or
Other Stock-Based Awards that are stock appreciation rights, and (B) Restricted Stock or Other Stock-Based Awards that constitute “restricted property”
under Section 83 of the Code to the extent granted during the Transition Period, even if such Awards vest or are settled after the Transition Period. 

4.2 Changes. 
 (a)
The existence of the Plan and the Awards shall not affect in any way the right or power of the Board or the stockholders of the Company to make or authorize (i) any adjustment, recapitalization, reorganization, or other change in the
Company’s capital structure or its business, (ii) any merger or consolidation of the Company or any Affiliate, (iii) any issuance of bonds, debentures, or preferred or prior preference stock ahead of or affecting the Common Stock,
(iv) the dissolution or liquidation of the Company or any Affiliate, (v) any sale or transfer of all or part of the assets or business of the Company or any Affiliate, (vi) any Section 4.2 Event, or (vii) any other corporate
act or proceeding. 
 (b) Subject to the provisions of Section 4.2(d), in the event of any change in the capital structure or business
of the Company by reason of any stock split, reverse stock split, stock dividend, combination or reclassification of shares, recapitalization, merger, consolidation, spin off, split off, reorganization or partial or complete liquidation, issuance of
rights or warrants to purchase Common Stock or securities convertible into Common Stock, sale or transfer of all or part of the Company’s assets or business, or other corporate transaction or event that would be considered an “equity
restructuring” within the meaning of FASB ASC Topic 718 (each, a “Section 4.2 Event”), then (i) the aggregate number or kind of shares that thereafter may be issued under the Plan, (ii) the number or kind
of shares or other property (including cash) subject to an Award, (iii) the purchase or exercise price of Awards, and (iv) the individual Participant limits set forth in Section 4.1(b) (other than cash limitations) shall be adjusted
by the Committee as the Committee determines, in good faith, to be necessary or advisable to prevent substantial dilution or enlargement of the rights of the Participants under the Plan. In connection with any Section 4.2 Event, the Committee
may provide for the cancellation of outstanding Awards and payment in cash or other property in exchange therefor. In addition, subject to Section 4.2(d), in the event of any change in the capital structure of the Company that is not a
Section 4.2 Event (an “Other Extraordinary Event”), then the Committee may make the adjustments described in 

  
 14 

 
clauses (i) through (iv) above as it determines, in good faith, to be necessary or advisable to prevent substantial dilution or enlargement of the rights of Participants under the Plan.
Notice of any such adjustment shall be given by the Committee, or otherwise be made available, to each Participant whose Award has been adjusted and such adjustment (whether or not such notice is given) shall be binding for all purposes of the Plan.
Except as expressly provided in this Section 4.2(b) or in the applicable Award agreement, a Participant shall have no rights by reason of any Section 4.2 Event or any Other Extraordinary Event. Notwithstanding the foregoing, (x) any
adjustments made pursuant to Section 4.2(b) to Awards that are considered “non-qualified deferred compensation” within the meaning of Section 409A shall be made in a manner intended to
comply with the requirements of Section 409A; and (y) any adjustments made pursuant to Section 4.2(b) to Awards that are not considered “non-qualified deferred compensation” subject to
Section 409A shall be made in a manner intended to ensure that after such adjustment, the Awards either (A) continue to be exempt from Section 409A or (B) comply with the requirements of Section 409A. 

(c) Fractional shares of Common Stock resulting from any adjustment in Awards pursuant to Section 4.2(a) or (b) shall be aggregated
until, and eliminated at, the time of exercise by rounding-down for fractions less than one-half and rounding-up for fractions
equal to or greater than one-half. No cash settlements shall be made with respect to fractional shares eliminated by rounding. 

(d) Upon the occurrence of an Acquisition Event, the Committee may terminate all outstanding and unexercised Stock Options or any Other Stock-Based Award that provides for a Participant-elected exercise (collectively, “Exercisable Awards”), effective as of the date of the Acquisition
Event, by delivering notice of termination to each Participant at least 20 days before the date of consummation of the Acquisition Event, in which case during the period from the date on which such notice of termination is delivered to the
consummation of the Acquisition Event, each such Participant shall have the right to exercise in full all of such Exercisable Awards that are then outstanding to the extent vested on the date such notice of termination is given (or, at the
discretion of the Committee, without regard to any limitations on exercisability otherwise contained in the Award agreements), but any such exercise shall be contingent on the occurrence of the Acquisition Event, and, provided that, if the
Acquisition Event does not take place within a specified period set forth in such notice, if any, for any reason whatsoever, the notice and exercise pursuant thereto shall be null and void and the applicable provisions of Section 4.2(b) and
Article X shall apply. For the avoidance of doubt, in the event of an Acquisition Event, the Committee may terminate any Exercisable Award for which the exercise price is equal to or exceeds the Fair Market Value on the date of the Acquisition
Event without payment of consideration therefor. If an Acquisition Event occurs but the Committee does not terminate the outstanding Awards pursuant to this Section 4.2(d), then the provisions of Section 4.2(b) and Article X shall
apply. 
 4.3 Minimum Purchase Price. 

Notwithstanding anything herein to the contrary, if authorized but previously unissued shares of Common Stock are issued under the Plan, such
shares shall not be issued for consideration that is less than required under applicable law. 

  
 15 

 ARTICLE V 

ELIGIBILITY 
 5.1
General Eligibility. 
 All current and prospective Eligible Employees and Consultants, and current Non-Employee Directors, are eligible to be granted Awards. Eligibility for the grant of Awards and actual participation in the Plan shall be determined by the Committee in its sole discretion. Notwithstanding
anything herein to the contrary, no Award under which a Participant may receive shares of Common Stock may be granted to an Eligible Employee, Consultant, or Non-Employee Director of any Affiliate if such
shares of Common Stock do not constitute “service recipient stock” for purposes of Section 409A with respect to such Eligible Employee, Consultant, or Non-Employee Director if such shares are
required to constitute “service recipient stock” for such Award to comply with, or be exempt from, Section 409A. 
 5.2
Incentive Stock Options. 
 Notwithstanding anything herein to the contrary, only Eligible Employees of the Company, its
Subsidiaries, and its Parent (if any) are eligible to be granted Incentive Stock Options under the Plan. Eligibility for the grant of an Incentive Stock Option and actual participation in the Plan shall be determined by the Committee. 

5.3 General Requirement. 

The grant of Awards to a prospective Eligible Employee or Consultant and the vesting and exercise of such Awards shall be conditioned
upon such Person actually becoming an Eligible Employee or Consultant; provided, however, that no Award may be granted to a prospective Eligible Employee or Consultant unless the Company determines that the Award will comply with
applicable laws, including the securities laws of all relevant jurisdictions (and, in the case of an Award to an Eligible Employee or Consultant pursuant to which Common Stock would be issued before such Person performing services for the Company,
the Company may require payment of not less than the par value of the Common Stock by cash or check to ensure proper issuance of the shares in compliance with applicable law). Awards may be awarded in consideration for past services actually
rendered to the Company or an Affiliate. 
 ARTICLE VI 

STOCK OPTIONS 
 6.1
Stock Options. 
 Each Stock Option shall be one of two types: (a) an Incentive Stock Option, or (b) a Non-Qualified Stock Option. The Committee shall have the authority to grant to any Eligible Employee Incentive Stock Options, Non-Qualified Stock Options, or both types of
Stock Options. The Committee shall have the authority to grant any Consultant or Non-Employee Director Non-Qualified Stock Options. To the extent that any Stock Option
does not qualify as an Incentive Stock Option (whether because of its provisions or the time or manner of its exercise or otherwise), such Stock Option or the portion thereof that does not qualify as an Incentive Stock Option shall constitute a
separate Non-Qualified Stock Option. 

  
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 6.2 Incentive Stock Options. 

Notwithstanding anything herein to the contrary, no term of the Plan relating to Incentive Stock Options shall be interpreted, amended, or
altered, nor shall any discretion or authority granted under the Plan be so exercised, so as to disqualify the Plan under Section 422 of the Code, or, without the consent of the Participants affected, to disqualify any Incentive Stock Option
under Section 422 of the Code. 
 6.3 Terms of Stock Options. 

Stock Options granted under the Plan shall be subject to the following terms and conditions and shall be in such form and contain such
additional terms and conditions, not inconsistent with the terms of the Plan, as the Committee shall deem desirable: 
 (a) Exercise
Price. The exercise price per share of Common Stock subject to a Stock Option shall be determined by the Committee on or before the date of grant, provided that the per share exercise price of a Stock Option shall be not less than 100% (or, in
the case of an Incentive Stock Option granted to a Ten Percent Stockholder, 110%) of the Fair Market Value of the Common Stock on the date of grant. 

(b) Stock Option Term. The term of each Stock Option shall be fixed by the Committee, provided that no Stock Option shall be
exercisable more than ten years after the date such Stock Option is granted (or, in the case of an Incentive Stock Option granted to a Ten Percent Stockholder, five years). 

(c) Exercisability. 
 (i)
Stock Options shall be exercisable at such time or times and subject to such terms and conditions as shall be determined by the Committee in the applicable Award agreement; provided, however, that Stock Options shall be subject to a
minimum vesting schedule of at least one year from the date of grant, except that the Committee may provide (but shall have no obligation to do so) for accelerated vesting before the completion of such
one-year period upon a Change in Control or the Participant’s Disability or death. Notwithstanding the foregoing sentence, subject to the limitations set forth in Section 4, Awards with respect to up
to five percent (5%) of the total number of shares of Common Stock reserved for Awards under the Plan may be granted to any Participant without regard to any minimum vesting requirements. The Committee may waive any limitations on
exercisability at any time at or after grant in whole or in part, in its discretion. 
 (ii) Unless otherwise determined by the Committee in
the applicable Award agreement, (A) in the event the Participant engages in Detrimental Activity before any exercise of the Stock Option, all Stock Options held by the Participant shall thereupon terminate and expire, (B) as a condition of
the exercise of a Stock Option, the Participant shall be required to certify in a manner acceptable to the Company (or shall be deemed to have certified) that the Participant is in compliance with the terms and conditions of the Plan and that the
Participant has not engaged in, and does not intend to engage in, any Detrimental Activity, and (C) in the event the Participant engages in Detrimental Activity during the one-year period commencing on
the earlier of the date the Stock Option is exercised or the date of the Participant’s Termination, the Company shall be entitled to recover from the Participant at any time within one year after the date on which the Company becomes aware of
Participant’s engagement in such Detrimental Activity, and the Participant shall pay over to the Company, an amount equal to any gain realized (whether at the time of exercise or thereafter) as a result of the exercise. Unless otherwise
determined by the Committee in the applicable Award agreement, this Section 6.3(c)(ii) shall cease to apply upon a Change in Control. 

  
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 (d) Method of Exercise. To the extent vested, a Stock Option may be exercised in whole or
in part at any time during the Option term, by giving written notice of exercise to the Committee (or its designee) specifying the number of shares of Common Stock to be purchased. Such notice shall be in a form acceptable to the Committee and shall
be accompanied by payment in full of the purchase price as follows: (i) in cash or by check, bank draft, or money order payable to the order of the Company; (ii) solely to the extent permitted by applicable law and authorized by the
Committee, if the Common Stock is traded on a national securities exchange or quoted on a national quotation system sponsored by the Financial Industry Regulatory Authority, through a procedure whereby the Participant delivers irrevocable
instructions to a broker reasonably acceptable to the Committee to deliver promptly to the Company an amount equal to the purchase price; or (iii) on such other terms and conditions as may be acceptable to the Committee (including the
relinquishment of Stock Options or by payment in full or in part in the form of Common Stock owned by the Participant (for which the Participant has good title, free and clear of any liens and encumbrances)). No shares of Common Stock shall be
issued until payment therefor, as provided herein, has been made or provided for. 
 (e)
Non-Transferability of Options. No Stock Option shall be Transferable by the Participant other than by will or by the laws of descent and distribution, and all Stock Options shall be exercisable, during
the Participant’s lifetime, only by the Participant. Notwithstanding the foregoing, the Committee may determine that a Non-Qualified Stock Option that otherwise is not Transferable pursuant to this
Section is Transferable to a Family Member in whole or in part, and in such circumstances, and under such conditions as specified by the Committee. A Non-Qualified Stock Option that is Transferred to a Family
Member pursuant to the preceding sentence (i) may not be Transferred subsequently other than by will or by the laws of descent and distribution, and (ii) remains subject to the terms of the Plan and the applicable Award agreement. Any
shares of Common Stock acquired upon the exercise of a Non-Qualified Stock Option by a permissible transferee of a Non-Qualified Stock Option or a permissible transferee
pursuant to a Transfer after the exercise of the Non-Qualified Stock Option shall be subject to the terms of this Plan and the applicable Award agreement. 

(f) Termination by Death or Disability. Unless otherwise determined by the Committee at grant (or, if no rights of the Participant (or,
in the case of his death, his estate) are reduced, thereafter), if a Participant’s Termination is by reason of death or Disability, all Stock Options that are held by such Participant that are vested and exercisable on the date of the
Participant’s Termination may be exercised by the Participant (or, in the case of death, by the legal representative of the Participant’s estate) at any time within a period of one year after the date of such Termination, but in no event
beyond the expiration of the stated term of such Stock Options. 
 (g) Involuntary Termination Without Cause. Unless otherwise
determined by the Committee at grant (or, if no rights of the Participant (or, in the case of his death, his estate) are reduced, thereafter), if a Participant’s Termination is by involuntary termination by the Company or an Affiliate without
Cause, all Stock Options that are held by such Participant that are vested and exercisable on the date of the Participant’s Termination may be exercised by the Participant at any time within a period of 90 days after the date of such
Termination, but in no event beyond the expiration of the stated term of such Stock Options. 

  
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 (h) Voluntary Termination. Unless otherwise determined by the Committee at grant (or, if
no rights of the Participant (or, in the case of his death, his estate) are reduced, thereafter), if a Participant’s Termination is voluntary (other than a voluntary Termination described in subsection (i)(B) below), all Stock Options that
are held by such Participant that are vested and exercisable on the date of the Participant’s Termination may be exercised by the Participant at any time within a period of 30 days after the date of such Termination, but in no event beyond the
expiration of the stated term of such Stock Options. 
 (i) Termination for Cause. Unless otherwise determined by the Committee at
grant (or, if no rights of the Participant (or, in the case of his death, his estate) are reduced, thereafter), if a Participant’s Termination (A) is for Cause or (B) is a voluntary Termination after the occurrence of an event that
would be grounds for a Termination for Cause, all Stock Options, whether vested or not vested, that are held by such Participant shall terminate and expire on the date of such Termination. 

(j) Unvested Stock Options. Unless otherwise determined by the Committee, Stock Options that are not vested as of the date of a
Participant’s Termination for any reason shall terminate and expire on the date of such Termination. 
 (k) Incentive Stock Option
Limitations. To the extent that the aggregate Fair Market Value (determined as of the date of grant) with respect to which Incentive Stock Options are exercisable for the first time by an Eligible Employee during any calendar year under the Plan
and any other stock option plan of the Company, any Subsidiary, or any Parent exceeds $100,000, such Incentive Stock Options shall be treated as Non-Qualified Stock Options. In addition, if an Eligible
Employee does not remain employed by the Company, any Subsidiary, or any Parent at all times from the date an Incentive Stock Option is granted until three months before the date of exercise thereof (or such other period as required by applicable
law), such Stock Option shall be treated as a Non-Qualified Stock Option. Should any provision of the Plan not be necessary in order for the Stock Options to qualify as Incentive Stock Options, or should any
additional provisions be required, the Committee may amend the Plan accordingly, without the necessity of obtaining the approval of the stockholders of the Company. 

(l) Form, Modification, Extension, and Renewal of Stock Options. Stock Options may be evidenced by such form of agreement as is approved
by the Committee. The Committee may (i) modify, extend, or renew outstanding Stock Options (provided that (A) the rights of a Participant are not reduced without his consent, and (B) such action does not subject the Stock
Options to Section 409A or otherwise extend the Stock Options beyond their stated term), and (ii) accept the surrender of outstanding Stock Options and authorize the granting of new Stock Options in substitution therefor. Notwithstanding
anything herein to the contrary, an outstanding Option may not be modified to reduce the exercise price thereof nor may a new Option at a lower exercise price be substituted for a surrendered Option (other than adjustments or substitutions in
accordance with Section 4.2), unless such action is approved by the stockholders of the Company. 
 (m) No Reload Options.
Options shall not provide for the grant of the same number of Options as the number of shares used to pay for the exercise price of Options or shares used to pay withholding taxes (i.e., “reloads”). 

  
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 ARTICLE VII 

RESTRICTED STOCK 
 7.1
Awards of Restricted Stock. 
 The Committee shall determine the Participants to whom, and the time or times at which, grants of
Restricted Stock shall be made, the number of shares to be awarded, the purchase price (if any) to be paid by the Participant (subject to Section 7.2), the time or times at which such Awards may be subject to forfeiture or to restrictions on
transfer, and all other terms and conditions of the Awards. 
 Unless otherwise determined by the Committee in the applicable Award
agreement, (A) in the event the Participant engages in Detrimental Activity before any vesting of Restricted Stock, all unvested Restricted Stock shall be immediately forfeited, and (B) in the event the Participant engages in Detrimental
Activity during the one-year period after any vesting of such Restricted Stock, the Committee shall be entitled to recover from the Participant (at any time within one year after such engagement in Detrimental Activity) an amount equal to the Fair
Market Value as of the vesting date(s) of any Restricted Stock that had vested in the period referred to above. Unless otherwise determined by the Committee in the applicable Award agreement, this paragraph shall cease to apply upon a Change in
Control. 
 The Committee may condition the grant or vesting of Restricted Stock upon the attainment of specified performance goals
(including goals based on the Performance Criteria) or such other factors as the Committee may determine. 
 7.2 Awards and Certificates.

 The Committee may require, as a condition to the effectiveness of an Award of Restricted Stock, that the Participant execute and
deliver to the Company an Award agreement or other documentation and comply with the terms of such Award agreement or other documentation. Further, Restricted Stock shall be subject to the following conditions: 

(a) Purchase Price. The purchase price of Restricted Stock, if any, shall be fixed by the Committee. In accordance with
Section 4.3, the purchase price for shares of Restricted Stock may be zero to the extent permitted by applicable law, and, to the extent not so permitted, such purchase price may not be less than the minimum purchase price required under
applicable law. 
 (b) Legend. Each Participant receiving Restricted Stock shall be issued a stock certificate in respect of such
shares of Restricted Stock, unless the Committee elects to use another system, such as book entries by the transfer agent, as evidencing ownership of shares of Restricted Stock. Such certificate shall be registered in the name of such Participant,
and shall, in addition to such legends required by applicable securities laws, if any, bear an appropriate legend referring to the terms, conditions, and restrictions applicable to such Award, substantially in the following form: 

“The anticipation, alienation, attachment, sale, transfer, assignment, pledge, encumbrance, or charge of the shares of
stock represented hereby are subject to the terms and conditions (including forfeiture) of the Solid Biosciences Inc. (the “Company”) 2018 Omnibus Incentive Plan (as amended from time to time, the
“Plan”), and an Award Agreement entered into between the registered owner and the Company dated                 . Copies of such Plan and
Award Agreement are on file at the principal office of the Company.” 

  
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 (c) Custody. If stock certificates are issued in respect of shares of Restricted Stock,
the Committee may require that any stock certificates evidencing such shares be held in custody by the Company until the restrictions thereon shall have lapsed, and that, as a condition of any grant of Restricted Stock, the Participant shall have
delivered a duly signed stock power or other instruments of assignment (including a power of attorney), each endorsed in blank with a guarantee of signature if deemed necessary or appropriate by the Company, which would permit transfer to the
Company of all or a portion of the shares subject to the Award of Restricted Stock in the event that such Award is forfeited in whole or part. 

7.3 Restrictions and Conditions. 

Restricted Stock shall be subject to the following restrictions and conditions: 

(a) Restriction Period. 

(i) The Participant shall not be permitted to Transfer shares of Restricted Stock, and the Restricted Stock shall be subject to a risk of
forfeiture (collectively, “restrictions”) during the period or periods set by the Committee (the “Restriction Periods”), as set forth in the Restricted Stock Award agreement. The Committee may provide for the lapse
of the restrictions in whole or in part (including in installments) based on service, attainment of performance goals, or such other factors or criteria as the Committee may determine, and may waive all or any part of the restrictions at any time
subject to Section 7.3(a)(iii). 
 (ii) If the grant of Restricted Stock or the lapse of restrictions is based on the attainment of
performance goals, such performance goals shall be established by the Committee in writing on or before the date the grant of Restricted Stock is made and while the outcome of the performance goals is substantially uncertain and, following the
Transition Period, that is permitted under Section 162(m) with regard to an Award of Restricted Stock that is intended to comply with Section 162(m). Such performance goals may incorporate provisions for disregarding (or adjusting for)
changes in accounting methods, corporate transactions (including dispositions and acquisitions), and other similar events or circumstances. Following the Transition Period, with regard to an Award of Restricted Stock that is intended to comply with
Section 162(m), (A) to the extent that any such provision set forth in the prior sentence would create impermissible discretion under Section 162(m) or otherwise violate Section 162(m), such provision shall be of no force or
effect, and (B) the applicable performance goals shall be based on one or more of the Performance Criteria. For the avoidance of doubt, during the Transition Period, the Committee may establish such performance goals as it determines. 

(iii) Notwithstanding anything herein to the contrary, Awards of Restricted Stock shall be subject to a minimum vesting schedule of at least
one year from the date of grant, except that the Committee may provide (but shall have no obligation to do so) for accelerated vesting before the completion of such one-year period upon a Change in Control or
the Participant’s Disability or death. Notwithstanding the foregoing sentence, subject to the limitations set forth in Section 4, Awards with respect to up to five percent (5%) of the total number of shares of Common Stock reserved
for Awards under the Plan may be granted to any Participant without regard to any minimum vesting requirements. 

  
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 (b) Rights as a Stockholder. Except as otherwise determined by the Committee, the
Participant shall have all the rights of a holder of shares of Common Stock of the Company with respect to Restricted Stock, subject to the following provisions of this Section 7.3(b). Except as otherwise determined by the Committee,
(i) the Participant shall have no right to tender shares of Restricted Stock, (ii) Dividends on shares of Restricted Stock shall be withheld, in each case, while the Restricted Stock is subject to restrictions, and (iii) in no event
shall Dividends payable thereunder be paid unless and until the shares of Restricted Stock to which they relate no longer are subject to a risk of forfeiture. Dividends that are not paid currently shall be credited to bookkeeping accounts on the
Company’s records for purposes of the Plan and, except as otherwise determined by the Committee, shall not accrue interest. Such Dividends shall be paid to the Participant in the same form as paid on the Common Stock upon the lapse of the
restrictions. The obligation of the Company to pay any Dividends hereunder upon lapse of the applicable restrictions shall be a general, unsecured obligation of the Company payable solely from the general assets of the Company. In no event shall the
Company be required, or have any obligation, to set aside, or hold in escrow or trust, any funds for the purpose of paying such Dividends. 

(c) Termination. Upon a Participant’s Termination for any reason during the Restriction Period, all Restricted Stock still subject
to restriction will vest or be forfeited in accordance with the terms and conditions established by the Committee at grant, or, if no rights of a Participant are reduced, thereafter. 

(d) Lapse of Restrictions. If and when the Restriction Period expires without a prior forfeiture of the Restricted Stock, the
certificates for such shares shall be delivered to the Participant, and any and all unpaid distributions or Dividends payable thereunder shall be paid. All legends shall be removed from said certificates at the time of delivery to the Participant,
except as otherwise required by applicable law or other limitations imposed by the Committee. 
 ARTICLE VIII 

OTHER STOCK-BASED AWARDS 

8.1 Other Awards. 

The Committee is authorized to grant Other Stock-Based Awards that are payable in, valued in whole or
in part by reference to, or otherwise based on or related to shares of Common Stock, including but not limited to, shares of Common Stock awarded purely as a bonus and not subject to any restrictions or conditions, shares of Common Stock in payment
of the amounts due under an incentive or performance plan sponsored or maintained by the Company or an Affiliate, stock appreciation rights, stock equivalent units, restricted stock units, Performance Shares, Performance Units, and Awards valued by
reference to book value of shares of Common Stock. 
 The Committee shall have authority to determine the Participants to whom, and the time
or times at which, Other Stock-Based Awards shall be made, the number of shares of Common Stock to be awarded pursuant to such Awards, and all other terms and conditions of the Awards. 

  
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 The Committee may condition the grant or vesting of Other
Stock-Based Awards upon the attainment of performance goals (including, performance goals based on the Performance Criteria) or such other factors as the Committee may determine. If the grant or vesting of an
Other Stock-Based Award is based on the attainment of performance goals, such performance goals shall be established by the Committee in writing on or before the date the grant of Other Stock-Based Award is made and while the outcome of the performance goals is substantially uncertain and, following the Transition Period, that is permitted under Section 162(m) with regard to an Other Stock-Based Award that is intended to comply with Section 162(m). Such performance goals may incorporate provisions for disregarding (or adjusting for) changes in accounting methods, corporate transactions
(including dispositions and acquisitions), and other similar events or circumstances. Following the Transition Period, with regard to an Other Stock-Based Award that is intended to comply with
Section 162(m), (a) to the extent any such provision set forth in the prior sentence would create impermissible discretion under Section 162(m) or otherwise violate Section 162(m), such provision shall be of no force or effect,
and (b) the applicable performance goals shall be based on one or more of the Performance Criteria. For the avoidance of doubt, during the Transition Period, the Committee may establish such performance goals as it determines. 

8.2 Terms and Conditions. 

Other Stock-Based Awards made pursuant to this Article VIII shall be subject to the following
terms and conditions: 
 (a) Non-Transferability. The Participant may not Transfer Other Stock-Based Awards or the Common Stock underlying such Awards before the date on which the underlying Common Stock is issued, or, if later, the date on which any restriction, performance, or deferral period
applicable to such Common Stock lapses. 
 (b) Dividends. The Committee shall determine to what extent, and under what conditions, the
Participant shall have the right to receive Dividends with respect to shares of Common Stock covered by Other Stock-Based Awards. Except as otherwise determined by the Committee, Dividends with respect to
unvested Other Stock-Based Awards shall be withheld until such Other Stock-Based Awards vest. Dividends that are not paid currently shall be credited to bookkeeping
accounts on the Company’s records for purposes of the Plan and, except as otherwise determined by the Committee, shall not accrue interest. Such Dividends shall be paid to the Participant in the same form as paid on the Common Stock or such
other form as is determined by the Committee upon the lapse of the restrictions. The obligation of the Company to pay any Dividends hereunder upon lapse of the applicable restrictions shall be a general, unsecured obligation of the Company payable
solely from the general assets of the Company. In no event shall the Company be required, or have any obligation, to set aside, or hold in escrow or trust, any funds for the purpose of paying such Dividends. 

(c) Vesting. Other Stock Based Awards and any underlying Common Stock shall vest or be forfeited to the extent set forth in the
applicable Award agreement or as otherwise determined by the Committee. At the expiration of any applicable Performance Period, the Committee shall determine the extent to which the relevant performance goals are achieved and the portion of each
Other Stock-Based Award that has been earned. The Committee may, at or after grant, accelerate the vesting of all or any part of any Other Stock-Based Award.
Notwithstanding anything herein to the contrary, Other Stock-Based Awards shall be subject to a minimum vesting schedule of at least one year from the date of grant, except that the Committee may provide (but
shall have no obligation to do so) for 

  
 23 

 
accelerated vesting before the completion of such one-year period upon a Change in Control or the Participant’s Disability or death. Notwithstanding
the foregoing sentence, subject to the limitations set forth in Section 4, Awards with respect to up to five percent (5%) of the total number of shares of Common Stock reserved for Awards under the Plan may be granted to any Participant
without regard to any minimum vesting requirements. 
 (d) Payment. Following the Committee’s determination in accordance with
subsection (c) above, shares of Common Stock or, as determined by the Committee, the cash equivalent of such shares, shall be delivered to the Participant, or his legal representative, in an amount equal to such individual’s earned Other Stock-Based Award. Notwithstanding the foregoing, the Committee may exercise negative discretion by providing in an Other Stock-Based Award the discretion to pay an amount
less than otherwise would be provided under the applicable level of attainment of the performance goals or subject the payment of all or part of any Other Stock-Based Award to additional vesting, forfeiture,
and deferral conditions as it deems appropriate. 
 (e) Detrimental Activity. Unless otherwise determined by the Committee in the
applicable Award agreement, (A) in the event the Participant engages in Detrimental Activity before any vesting of such Other Stock-Based Award, all unvested Other
Stock-Based Award shall be immediately forfeited, and (B) in the event the Participant engages in Detrimental Activity during the one-year period after any vesting of such Other Stock-Based Award, the Committee shall be entitled to recover from the Participant (at any time within the one-year period after such engagement in Detrimental Activity) an
amount equal to any gain the Participant realized from any Other Stock-Based Award that had vested in the period referred to above. Unless otherwise determined by the Committee in the applicable Award
agreement, this Section 8.2(e) shall cease to apply upon a Change in Control. 
 (f) Price. Common Stock issued on a bonus basis
under this Article VIII may be issued for no cash consideration; Common Stock purchased pursuant to a purchase right awarded under this Article VIII shall be priced as determined by the Committee. 

(g) Termination. Upon a Participant’s Termination for any reason during the Performance Period, the Other Stock-Based Awards will vest or be forfeited in accordance with the terms and conditions established by the Committee at grant or, if no rights of the Participant are reduced, thereafter. 

ARTICLE IX 
 PERFORMANCE-BASED CASH AWARDS 
 9.1 Performance-Based
Cash Awards. 
 The Committee shall have authority to determine the Eligible Employees and Consultants to whom, and the time or
times at which, Performance-Based Cash Awards shall be made, the dollar amount to be awarded pursuant to such Performance-Based Cash Award, and all other conditions for
the payment of the Performance-Based Cash Award. 
 Except as otherwise provided herein, the
Committee shall condition the right to payment of any Performance-Based Cash Award upon the attainment of specified performance goals (including performance goals based on the Performance Criteria) established
pursuant to Section 9.2(c) and such other factors as the Committee may determine, including to comply with the requirements of Section 162(m). The Committee may establish different performance goals for different Participants. 

  
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 Subject to Section 9.2(c), for any Participant the Committee may specify a targeted Performance-Based Cash Award for a Performance Period (each an “Individual Target Award”). An Individual Target Award may be expressed, at the Committee’s discretion, as a fixed dollar
amount, a percentage of the Participant’s base pay, as a percentage of a bonus pool funded by a formula based on achievement of performance goals, or an amount determined pursuant to an objective formula or standard. The Committee’s
establishment of an Individual Target Award for a Participant for a Performance Period shall not imply or require that the same level or any Individual Target Award be established for the Participant for any subsequent Performance Period or for any
other Participant for that Performance Period or any subsequent Performance Period. At the time the performance goals are established (as provided in Section 9.2(c)), the Committee shall prescribe a formula to determine the maximum and minimum
percentages (which may be greater or less than 100% of an Individual Target Award) that may be earned or payable based upon the degree of attainment of the performance goals during the Performance Period. Notwithstanding anything herein to the
contrary, the Committee may exercise negative discretion by providing in an Individual Target Award the discretion to pay a Participant an amount that is less than the Participant’s Individual Target Award (or attained percentages thereof)
regardless of the degree of attainment of the performance goals; provided that, except as otherwise specified by the Committee with respect to an Individual Target Award, no discretion to reduce a
Performance-Based Cash Award earned based on achievement of the applicable performance goals shall be permitted for any Performance Period in which a Change in Control occurs, or during such Performance Period
with regard to the prior Performance Periods if the Performance-Based Cash Awards for the prior Performance Periods have not been paid by the time of the Change in Control, with regard to individuals who were
Participants at the time of the Change in Control. 
 9.2 Terms and Conditions. 

Performance-Based Cash Awards shall be subject to the following terms and conditions: 

(a) Committee Certification. At the expiration of the applicable Performance Period, the Committee shall determine and certify in
writing the extent to which the performance goals established pursuant to Section 9.2(c) are achieved and, if applicable, the percentage of the Performance-Based Cash Award that has been vested and
earned. 
 (b) Waiver of Limitation. In the event of the Participant’s Disability or death, or in cases of special circumstances
(to the extent permitted under Section 162(m) with regard to a Performance-Based Cash Award that is intended to comply with Section 162(m)), the Committee may waive in whole or in part any or all of
the limitations imposed thereunder with respect to any or all of a Performance-Based Cash Award. 

(c) Performance Goals, Formulae, or Standards. The performance goals for the earning of
Performance-Based Cash Awards shall be established by the Committee in writing on or before the date the grant of Performance-Based Cash Award is made and while the
outcome of the performance goals is substantially uncertain and, following the Transition Period, that is permitted under Section 162(m) with regard to a Performance-Based Cash Award that is intended to
comply with Section 162(m). Such performance goals may incorporate provisions 

  
 25 

 
for disregarding (or adjusting for) changes in accounting methods, corporate transactions (including dispositions and acquisitions), and other similar events or circumstances. Following the
Transition Period, with regard to a Performance-Based Cash Award that is intended to comply with Section 162(m), (i) to the extent any such provision set forth in the prior sentence would create
impermissible discretion under Section 162(m) or otherwise violate Section 162(m), such provision shall be of no force or effect and (ii) the applicable performance goals shall be based on one or more of the Performance Criteria. For
the avoidance of doubt, during the Transition Period, the Committee may establish such performance goals as it determines. 
 (d)
Payment. Following the Committee’s determination and certification in accordance with subsection (a) above, the earned Performance-Based Cash Award amount shall be paid to the Participant
or his legal representative, in accordance with the terms and conditions set forth in the Performance-Based Cash Award agreement, but in no event, except as provided in the next sentence, shall such amount be
paid later than the later of: (i) March 15 of the year following the year in which the applicable Performance Period ends (or, if later, the year in which the Award is earned); or (ii) two and
one-half months after the expiration of the fiscal year of the Company in which the applicable Performance Period ends. Notwithstanding the foregoing, the Committee may place such conditions on the payment of
all or any portion of any Performance-Based Cash Award as the Committee may determine and before the beginning of a Performance Period, the Committee may (A) provide that the payment of all or any portion
of any Performance-Based Cash Award shall be deferred, and (B) permit a Participant to elect to defer receipt of all or a portion of any Performance-Based Cash
Award. Any Performance-Based Cash Award deferred by a Participant in accordance with the terms and conditions established by the Committee shall not increase (between the date on which the Performance-Based Cash Award is credited to any deferred compensation program applicable to such Participant and the payment date) by an amount that would result in such deferral being deemed as an “increase in
the amount of compensation” under Section 162(m). To the extent applicable, any deferral under this Section 9.2(d) shall be made in a manner intended to comply with or be exempt from the applicable requirements of Section 409A.
Notwithstanding the foregoing, the Committee may exercise negative discretion by providing in a Performance-Based Cash Award the discretion to pay an amount less than otherwise would be provided under the
applicable level of attainment of the performance goals. 
 (e) Termination. Unless otherwise determined by the Committee at the time
of grant (or, if no rights of the Participant (or, in the case of his death, his estate) are reduced, thereafter), no Performance-Based Cash Award or pro rata portion thereof shall be payable to any
Participant who incurs a Termination before the date such Performance-Based Cash Award is paid and the Performance-Based Cash Awards only shall be deemed to be earned
when actually paid. 

  
 26 

 ARTICLE X 

CHANGE IN CONTROL PROVISIONS 

10.1 In the event of a Change in Control of the Company, except as otherwise provided by the Committee in an Award agreement or
otherwise in writing, a Participant’s unvested Award shall not vest and a Participant’s Award shall be treated in accordance with one of the following methods as determined by the Committee: 

(a) Awards, whether or not then vested, may be continued, assumed, have new rights substituted therefor, or be treated in accordance with
Section 4.2(d), and Restricted Stock or other Awards may, where appropriate in the discretion of the Committee, receive the same distribution as other Common Stock on such terms as determined by the Committee; provided that, the
Committee may decide to award additional Restricted Stock or any other Award in lieu of any cash distribution. Notwithstanding anything herein to the contrary, any assumption or substitution of Incentive Stock Options shall be structured in a manner
intended to comply with the requirements of Treasury Regulation § 1.424-1 (and any amendments thereto). 

(b) Awards may be canceled in exchange for an amount of cash equal to the Change in Control Price (as defined below) per share of Common Stock
covered by such Awards), less, in the case of an Appreciation Award, the exercise price per share of Common Stock covered by such Award. The “Change in Control Price” means the price per share of Common Stock paid in the
Change in Control transaction. 
 (c) Appreciation Awards may be cancelled without payment, if the Change in Control Price is less than the
exercise price per share of such Appreciation Awards. 
 Notwithstanding anything herein to the contrary, the Committee may provide for accelerated vesting
or lapse of restrictions, of an Award at any time. 

  
 27 

 ARTICLE XI 

TERMINATION OR AMENDMENT OF PLAN 

Notwithstanding anything herein to the contrary, the Board, or the Committee (to the extent permitted by law), may at any time, and from time
to time, amend, in whole or in part, any or all of the provisions of the Plan (including any amendment deemed necessary or advisable to ensure that the Company may comply with any regulatory requirement referred to in Article XIII or
Section 409A), or suspend or terminate it entirely, retroactively or otherwise; provided, however, that, unless otherwise required by law or specifically provided herein, the rights of a Participant with respect to Awards granted
before such amendment, suspension, or termination may not be reduced in any material respect without the consent of such Participant and, provided further, without the approval of the holders of the Company’s Common Stock entitled to
vote in accordance with applicable law, no amendment may be made that would (a) increase the aggregate number of shares of Common Stock that may be issued under the Plan (except by operation of Section 4.2); (b) increase the maximum
individual Participant limits under Section 4.1(b) (except by operation of Section 4.2); (c) change the classification of individuals eligible to receive Awards under the Plan; (d) extend the maximum term of Options;
(e) alter the Performance Criteria; (f) other than adjustments or substitutions in accordance with Section 4.2, amend the terms of outstanding Awards to reduce the exercise price of outstanding Stock Options or Appreciation Awards, or
cancel outstanding Stock Options or Appreciation Awards (where, before the reduction or cancellation, the exercise price exceeds the Fair Market Value on the date of cancellation) in exchange for cash, other Awards, or Stock Options or Appreciation
Awards with an exercise price that is less than the exercise price of the original Stock Options or Appreciation Awards; or (g) otherwise require stockholder approval in order for the Plan or any of the Awards issued hereunder to continue to
comply with applicable law (including Sections 162(m) and 422 of the Code) or the rules of any applicable securities exchange or system on which the Company’s securities are listed or traded at the request of the Company. 

The Committee may amend the terms of any Award theretofore granted, prospectively or retroactively; provided that no such
amendment reduces in any material respect the rights of any Participant without the Participant’s consent. Actions taken by the Committee in accordance with Article IV shall not be deemed to reduce the rights of any Participant.

 Notwithstanding anything herein to the contrary, the Board or the Committee may amend the Plan or any Award at any time without a
Participant’s consent to comply with Section 409A or any other applicable law. 
 ARTICLE XII  

UNFUNDED PLAN 
 The Plan
is intended to constitute an “unfunded” plan for incentive and deferred compensation. With respect to any payments as to which a Participant has a fixed and vested interest but which are not yet made to a Participant by the Company,
nothing contained herein shall give any such Participant any rights that are greater than those of a general unsecured creditor of the Company. 

  
 28 

 ARTICLE XIII 

GENERAL PROVISIONS 

13.1 Legend. 
 The
Committee may require each person receiving shares of Common Stock pursuant to an Award to represent to and agree with the Company in writing that the Participant is acquiring the shares without a view to distribution thereof and such other
securities law-related representations as the Committee shall request. In addition to any legend required by the Plan, the certificates or book entry accounts for such shares may include any legend that the Committee deems appropriate to reflect any
restrictions on Transfer. 
 All certificates or book entry accounts for shares of Common Stock delivered under the Plan shall be subject to
such stop transfer orders and other restrictions as the Committee may deem advisable under the rules, regulations, and other requirements of the Securities and Exchange Commission, any stock exchange upon which the Common Stock is then listed or any
national automated quotation system on which the Common Stock is then quoted, any applicable Federal or state securities law, and any applicable corporate law, and the Committee may cause a legend or legends to be put on any such certificates to
make appropriate reference to such restrictions. If necessary or advisable to prevent a violation of applicable securities laws or to avoid the imposition of public company reporting requirements, then, notwithstanding anything herein to the
contrary, any stock-settled Awards shall be paid in cash in an amount equal to the Fair Market Value on the date of settlement of such Awards. 

13.2 Other Plans. 

Nothing contained in the Plan shall prevent the Board from adopting other or additional compensation arrangements, subject to stockholder
approval if such approval is required; and such arrangements may be either generally applicable or applicable only in specific cases. 

13.3 No Right to Employment, Consultancy, or Directorship. 

Neither the Plan nor the grant of any Award hereunder shall give any Participant or other person any right to employment, consultancy, or
directorship by the Company or any Affiliate, or limit in any way the right of the Company or any Affiliate by which an employee is employed or a Consultant or Non-Employee Director is retained to terminate
their employment, consultancy, or directorship at any time. 
 13.4 Withholding of Taxes. 

The Company or any Affiliate shall have the right to deduct from any payment to be made pursuant to the Plan, or to otherwise require, before
the issuance or delivery of any shares of Common Stock or the payment of any cash, payment by the Participant of any Federal, foreign, state, or local taxes required by law to be withheld. Upon the vesting of Restricted Stock (or other Award that is
taxable upon vesting), or upon making an election under Section 83(b) of the Code, a Participant shall pay all required withholding to the Company or any Affiliate. Any statutorily required withholding obligation with regard to any Participant
may be satisfied, subject to the consent of the Committee, by reducing the number of shares of Common Stock otherwise deliverable or by delivering shares of Common Stock already owned. Any fraction of a share of Common Stock required to satisfy such
tax obligations shall be disregarded, and the amount due shall be paid instead in cash by the Participant. 

  
 29 

 13.5 No Assignment of Benefits. 

No Award or other benefit payable under the Plan shall, except as otherwise specifically provided in the Plan or permitted by the Committee,
be Transferable in any manner, and any attempt to Transfer any such benefit shall be null and void, and any such benefit shall not in any manner be liable for or subject to the debts, contracts, liabilities, engagements, or torts of any person who
shall be entitled to such benefit, nor shall it be subject to attachment or legal process for or against such person. 
 13.6 Listing
and Other Conditions. 
 (a) Unless otherwise determined by the Committee, as long as the Common Stock is listed on a national
securities exchange or system sponsored by a national securities association, the issuance of shares of Common Stock pursuant to an Award shall be conditioned upon such shares being listed on such exchange or system. The Company shall have no
obligation to issue such shares unless and until such shares are so listed, and the right to exercise any Stock Option or other Exercisable Award with respect to such shares shall be suspended until such listing has been effected. 

(b) If at any time counsel to the Company shall be of the opinion that any offer or sale of Common Stock pursuant to an Award is or may be
unlawful or prohibited, or will or may result in the imposition of excise taxes on the Company, under the statutes, rules, or regulations of any applicable jurisdiction or under the rules of the national securities exchange on which the Common Stock
then is listed, the Company shall have no obligation to make such offer or sale, or to make any application or to effect or to maintain any qualification or registration under the Securities Act or otherwise, with respect to the Common Stock or
Awards, and the right to exercise any Stock Option or other Exercisable Award shall be suspended until, in the opinion of said counsel, such offer or sale shall be lawful, permitted, or will not result in the imposition of excise taxes on the
Company. 
 (c) Upon termination of any period of suspension under this Section 13.6, any Award affected by such suspension that shall
not then have expired or terminated shall be reinstated as to all shares available before such suspension and as to shares that would otherwise have become available during the period of such suspension, but no such suspension shall extend the term
of any Award. 
 (d) A Participant shall be required to supply the Company with certificates, representations, and information that the
Company requests and otherwise cooperate with the Company in obtaining any listing, registration, qualification, exemption, consent, or approval the Company deems necessary or appropriate. 

13.7 Governing Law. 

The Plan and matters arising under or related to it shall be governed by and construed in accordance with the internal laws of the State of
Delaware without giving effect to its principles of conflicts of laws. 
 13.8 Construction. 

Wherever any words are used in the Plan in the masculine, feminine, or neutral gender they shall be construed as though they were also used in
the masculine, feminine, or neutral gender (as the case may be) in all cases where they would so apply. As used herein, (a) “or” shall mean “and/or,” and (b) “including” or “include” shall mean
“including, without limitation.” Any reference herein to an agreement in writing shall be deemed to include an electronic writing to the extent permitted by applicable law. 

  
 30 

 13.9 No Acquired Rights. 

By participating in the Plan, each Participant is deemed to acknowledge and accept that the Committee has the sole discretion to amend or
terminate the Plan, to the extent permitted hereunder, at any time and that the opportunity given to a Participant to participate in the Plan is at the sole discretion of the Committee and does not obligate the Company or any Affiliate to offer such
participation in the future (whether on the same or different terms). By participating in the Plan, each Participant is deemed further to acknowledge and accept that (i) such Participant’s participation in the Plan is not to be considered
part of any normal or expected compensation, (ii) the value of Awards granted to a Participant shall not be used for purposes of determining any benefits or compensation payable to the Participant or the Participant’s beneficiaries or
estate under any benefit arrangement of the Company or its Affiliates, and (iii) the termination of the Participant’s employment with the Company or an Affiliate under any circumstance whatsoever will not give the Participant any claim or
right of action against the Company or any of its Affiliates in respect of any lost rights under the Plan that may arise as a result of such termination of employment. 

13.10 Data Protection. 

By participating in the Plan, each Participant shall consent to the holding and processing of personal information provided by such
Participant to the Company, any Affiliate, trustee, or third-party service provider for all purposes relating to the operation of the Plan. These include: (i) administering and maintaining Participant
records; (ii) providing information to the Company, Affiliates, trustees of any employee benefit trust, registrars, brokers, or third-party administrators of the Plan; (iii) providing information to
future purchasers or merger partners of the Company or any Affiliate or the business in which the Participant works; and (iv) transferring personal information about the Participant to any country or territory that may not provide the same
protection for the information as the Participant’s home country. Such personal information may include the Participant’s name, home address, and telephone number; date of birth; social security or insurance number; other identification
number; salary; nationality; job title; any shares or directorships held in the Company or an Affiliate; and details of all Awards or other entitlement to shares awarded, canceled, exercised, vested, unvested, or outstanding in a Participant’s
favor. 
 13.11 Costs. 

The Company shall bear all expenses associated with administering the Plan, including expenses of issuing Common Stock pursuant to any Awards.

 13.12 No Right to Same Benefits. 

The provisions of Awards need not be the same with respect to each Participant, and each Award to an individual Participant need not be the
same. 
 13.13 Death or Disability. 

The Committee may require the transferee of a Participant to supply it with written notice of the Participant’s death or Disability and
to supply it with a copy of the will (in the case of the Participant’s death) or such other evidence as the Committee deems necessary or advisable to establish the validity of the transfer of an Award. The Committee also may require that the
transferee agree to be bound by all of the terms and conditions of the Plan. 

  
 31 

 13.14 Section 16(b) of the Exchange Act. 

All elections and transactions under the Plan by persons subject to Section 16 of the Exchange Act involving shares of Common Stock are
intended to comply with any applicable exemptive condition under Rule 16b-3. The Committee may establish and adopt written administrative guidelines, designed to facilitate compliance with
Section 16(b) of the Exchange Act, as it may deem necessary or advisable for the administration and operation of the Plan and the transaction of business thereunder. 

13.15 Section 409A. 

Although the Company does not guarantee to a Participant the particular tax treatment of any Award, all Awards are intended to comply
with, or be exempt from, the requirements of Section 409A, and the Plan and any Award agreement shall be limited, construed, and interpreted in accordance with such intent. To the extent that any Award constitutes
“non-qualified deferred compensation” pursuant to Section 409A (a “Section 409A Covered Award”), it is intended to be paid in a manner that will comply with
Section 409A. In no event shall the Company be liable for any additional tax, interest, or penalties that may be imposed on a Participant by Section 409A or for any damages or other penalties or awards for failing to comply with
Section 409A. Notwithstanding anything herein or in an Award to the contrary, the following provisions shall apply to Section 409A Covered Awards: 

(a) A termination of employment shall not be deemed to have occurred for purposes of any provision of a Section 409A Covered Award
providing for payment upon or following a termination of the Participant’s employment unless such termination is also a “separation from service” within the meaning of Section 409A and, for purposes of any such provision of a
Section 409A Covered Award, references to a “termination,” “termination of employment,” or like terms shall mean separation from service within the meaning of Section 409A. Notwithstanding anything herein or in an Award
to the contrary, if the Participant is deemed on the date of the Participant’s Termination to be a “specified employee” within the meaning of that term under Section 409A(a)(2)(B) of the Code and using the identification
methodology selected by the Company from time to time, or if none, the default methodology set forth in Section 409A, then with regard to any such payment under a Section 409A Covered Award, to the extent required to be delayed in
compliance with Section 409A(a)(2)(B) of the Code, such payment shall not be made before the earlier of (i) the expiration of the six-month period measured from the date of the Participant’s
separation from service, and (ii) the date of the Participant’s death. All payments delayed pursuant to this Section 13.15(a) shall be paid to the Participant on the first day of the seventh month following the date of the
Participant’s separation from service or, if earlier, on the date of the Participant’s death. 
 (b) With respect to any payment
pursuant to a Section 409A Covered Award that is triggered upon a Change in Control, unless otherwise provided by the Committee in the applicable Award agreement, the settlement of such Award shall not occur until the earliest of (i) the
Change in Control if such Change in Control constitutes a “change in the ownership of the corporation,” a “change in effective control of the corporation,” or a “change in the ownership of a substantial portion of the assets
of the corporation,” within the meaning of 

  
 32 

 
Section 409A(a)(2)(A)(v) of the Code, (ii) the date such Award otherwise would be settled pursuant to the terms of the applicable Award agreement, and (iii) the Participant’s
“separation from service” within the meaning of Section 409A, subject to Section 13.15(a). 
 (c) For purposes of
Section 409A, a Participant’s right to receive any installment payments under the Plan or pursuant to an Award shall be treated as a right to receive a series of separate and distinct payments. 

(d) Whenever a payment under the Plan or pursuant to an Award specifies a payment period with reference to a number of days (e.g.,
“payment shall be made within 30 days following the date of termination”), the actual date of payment within the specified period shall be within the sole discretion of the Company. 

13.16 Successor and Assigns. 

The Plan shall be binding on all successors and permitted assigns of a Participant, including the estate of such Participant and the executor,
administrator, or trustee of such estate. 
 13.17 Severability of Provisions. 

If any provision of the Plan shall be held invalid or unenforceable, such invalidity or unenforceability shall not affect any other provisions
hereof, and the Plan shall be construed and enforced as if such provisions had not been included. 
 13.18 Participants Subject to
Taxation Outside the U.S.; No Tax Equalization. 
 With respect to a Participant who is subject to taxation in a country other than
the United States, the Committee may grant Awards to such Participant on such terms and conditions as the Committee deems appropriate to comply with the laws of the applicable country, and the Committee may create such procedures, addenda, and
subplans and make such modifications as may, in the Committee’s discretion, be necessary or desirable to comply with such laws. Neither the Company nor any Affiliate shall have any responsibility to such Participant with respect to any taxes
owed or owing in or to any jurisdiction that such Participant incurs as a result of receiving an Award and becoming a Participant in the Plan, nor shall the Company or any Affiliate provide any tax equalization payment to any Participant in respect
of taxes owed or owing in or to any jurisdiction by a Participant. 
 13.19 Payments to Minors, Etc. 

Any benefit payable to or for the benefit of a minor, an incompetent person, or other person incapable of receipt thereof shall be deemed paid
when paid to such person’s guardian or to the party providing or reasonably appearing to provide for the care of such person, and such payment shall fully discharge the Committee, the Board, the Company, its Affiliates, and their employees,
agents, and representatives with respect thereto. 
 13.20 Headings and Captions. 

The headings and captions herein are provided for reference and convenience only, shall not be considered part of the Plan, and shall not be
employed in the construction of the Plan. 

  
 33 

 13.21 Recoupment. 

In addition to any recoupment provisions set forth herein relating to Detrimental Activity, all Awards granted or other compensation paid by
the Company under the Plan, including any shares of Common Stock issued under any Award thereunder, will be subject to: (i) any compensation recapture policies established by the Board or the Committee from time to time and in effect at the
time of grant of the Award, and (ii) any compensation recapture policies to the extent required pursuant to any applicable law (including, without limitation, the Dodd-Frank Act) or the rules and
regulations of any national securities exchange on which the shares of Common Stock are then traded. 
 13.22 Reformation.

 If any provision regarding Detrimental Activity or any other provision set forth in the Plan or an Award agreement is found by any
court of competent jurisdiction or arbitrator to be invalid, null, void, or unenforceable or to be excessively broad as to duration, activity, geographic application, or subject, such provision or provisions shall be construed by limiting or
reducing them to the extent legally permitted so as to be enforceable to the maximum extent compatible with then applicable law. 
 13.23
Electronic Communications. 
 Notwithstanding anything herein or in any Award to the contrary, any Award agreement, notice of
exercise of an Exercisable Award, or other document or notice required or permitted by the Plan or an Award that is required to be delivered in writing may, to the extent determined by the Committee, be delivered and accepted electronically.
Signatures also may be electronic if permitted by the Committee. The term “written agreement” as used in the Plan shall include any document that is delivered or accepted electronically. 

13.24 Agreement. 

As a condition to the grant of an Award, if requested by the Company and the lead underwriter of any public offering of the Common
Stock (the “Lead Underwriter”), a Participant shall irrevocably agree, and by acceptance of an Award shall irrevocably be deemed to have agreed, not to sell, contract to sell, grant any option to purchase, transfer the
economic risk of ownership in, make any short sale of, pledge, or otherwise Transfer or dispose of, any interest in any Common Stock or any securities convertible into, derivative of, or exchangeable or exercisable for Common Stock, or any other
rights to purchase or acquire Common Stock (except Common Stock included in such public offering or acquired on the public market after such offering) during such period of time following the effective date of a registration statement of the Company
filed under the Securities Act that the Lead Underwriter shall specify (the “Lock-up Period”). The Participant shall further agree to sign such documents as may be requested by the Lead
Underwriter to effect the foregoing and agree that the Company may impose stop-transfer instructions with respect to Common Stock acquired pursuant to an Award until the end of such Lock-up Period. 
 13.25 Transition Period. 

The Plan has been adopted by the Board before the occurrence of a Registration Date. The Plan is intended to constitute a plan described in
Treasury Regulation § 1.162-27(f)(1). 

  
 34 

 ARTICLE XIV 

EFFECTIVE DATE OF PLAN 

The Plan was adopted by the Board on December 13, 2017, to be effective on the date of effectiveness of the registration statement on
Form S-1 filed by the Company with the Securities and Exchange Commission for the initial public offering of the Common Stock (the “Effective Date”). The Plan was approved by the stockholders of the Company on
December 18, 2017. 
 ARTICLE XV 

TERM OF PLAN 
 No
Award shall be granted on or after the tenth anniversary of the earlier of (a) the Effective Date or (b) the date of stockholder approval of the Plan, provided that Awards granted before the tenth anniversary of the Plan’s
adoption by the Board may extend beyond that date in accordance with the terms of the Plan. Following the Transition Period, the Company may seek stockholder re-approval of the Performance Criteria to the
extent that such stockholder approval is obtained no later than the first stockholder meeting that occurs in the fifth year following the year in which such stockholders previously approved the Performance Criteria. Awards (other than Stock Options
or stock appreciation rights) may be based on such Performance Criteria to qualify for the “performance-based compensation” exception under Section 162(m) of the Code. 

  
 35 

 SOLID BIOSCIENCES INC. 

2018 OMNIBUS INCENTIVE PLAN 

EXHIBIT A: PERFORMANCE CRITERIA 

Performance goals established for purposes of the grant or vesting of performance-based Awards of
Restricted Stock, Other Stock-Based Awards, or Performance-Based Cash Awards that are intended to be
“performance-based” under Section 162(m) shall be based on one or more of the following performance criteria (“Performance Criteria”): 

 

	 	(1)	enterprise value or value creation targets; 

  

	 	(2)	income or net income; operating income; net operating income or net operating income after tax; operating profit or net operating profit; 

 

	 	(3)	cash flow, including but not limited to, from operations or free cash flow; 

  

	 	(4)	specified objectives with regard to limiting the level of increase in all or a portion of bank debt or other long-term or short-term public
or private debt or other similar financial obligations, or other capital structure improvements, which may be calculated net of cash balances or other offsets and adjustments as may be established by the Committee; 

 

	 	(5)	net sales, revenues, net income, or earnings before income tax or other exclusions; 

  

	 	(6)	operating margin, return on operating revenue, or return on operating profit; 

  

	 	(7)	return measures (after tax or pre-tax), including return on capital employed, return on invested capital, return on equity, return on assets, return on net assets;

  

	 	(8)	market capitalization, earnings per share, fair market value of the shares of the Company, franchise value (net of debt), economic value added; 

 

	 	(9)	total stockholder return or growth in total stockholder return (with or without dividend reinvestment); 

  

	 	(10)	financing and other capital raising transactions; 

  

	 	(11)	proprietary investment results; 

  

	 	(12)	estimated market share; 

  

	 	(13)	expansion of sales in additional geographies or markets; 

  

	 	(14)	expense management/control or reduction (including, without limitation, compensation and benefits expense); 

  
 Ex. A-1 

	 	(15)	customer satisfaction; 

  

	 	(16)	technological improvements/implementation, new product innovation; 

  

	 	(17)	collections and recoveries; 

  

	 	(18)	property or asset purchases; 

  

	 	(19)	litigation and regulatory resolution/implementation goals; 

  

	 	(20)	leases, contracts, or financings (including renewals, overhead, savings, G&A, and other expense control goals); 

  

	 	(21)	risk management/implementation; 

  

	 	(22)	development and implementation of strategic plans or organizational restructuring goals; 

  

	 	(23)	development and implementation of risk and crisis management programs; compliance requirements and compliance relief; productivity goals; workforce management and succession planning goals; 

 

	 	(24)	employee satisfaction or staff development; 

  

	 	(25)	formations of joint ventures or partnerships or the completion of other similar transactions intended to enhance revenue or profitability or to enhance its customer base; 

 

	 	(26)	licensing or partnership arrangements; 

  

	 	(27)	progress of partnered programs and partner satisfaction; 

  

	 	(28)	progress of internal research or development programs; 

  

	 	(29)	submission of a new drug application (“NDA”) or the approval of the NDA by the U.S. Food and Drug Administration (“FDA”); 

 

	 	(30)	submission of an investigational new drug application (“IND”) or the approval of the IND by the FDA; 

  

	 	(31)	submission of a therapeutic biologics license application (“BLA”) or the approval of the BLA by the FDA; 

  

	 	(32)	submission to, or approval by, a foreign regulatory body of an applicable filing or a product; 

  

	 	(33)	strategic partnerships or transactions (including in-licensing and out-licensing of intellectual property; 

  
 Ex. A-2 

	 	(34)	achievement of a launch of a new drug; 

  

	 	(35)	initiation or completion of a clinical trial phase; 

  

	 	(36)	implementation or completion of critical projects; 

  

	 	(37)	achievement of specified milestones in the discovery and development of one or more of the Company’s products; 

  

	 	(38)	achievement of specified milestones in the commercialization of one or more of the Company’s products; 

  

	 	(39)	achievement of specified milestones in the manufacturing of one or more of the Company’s products; 

  

	 	(40)	achievement of specified regulatory milestones relating to one or more of the Company’s products; or 

  

	 	(41)	completion of a merger, acquisition, or any transaction that results in the sale of all or substantially all of the stock or assets. 

All Performance Criteria may be based upon the attainment of specified levels of the Company (or Affiliate, division, other operational unit,
business segment, or administrative department of the Company or any Affiliate) performance under one or more of the measures described above and may be measured relative to the performance of other corporations (or an affiliate, subsidiary,
division, other operational unit, business segment, or administrative department of another corporation or its affiliates). Any goal may be expressed as a dollar figure, on a percentage basis (if applicable), or on a per share basis, and goals may
be either absolute, relative to a selected peer group or index, or a combination of both. To the extent permitted under Section 162(m), (including compliance with any requirements for stockholder approval), the Committee may: (i) designate
additional business criteria on which the Performance Criteria may be based or (ii) adjust, modify, or amend the aforementioned business criteria. 

Except as otherwise determined by the Committee in the applicable Award agreement, the measures used in Performance Criteria set under the
Plan shall be determined in accordance with generally accepted accounting principles (“GAAP”) and in a manner consistent with the methods used in the Company’s regular reports on Forms
10-K and 10-Q, without regard to any of the following unless otherwise determined by the Committee consistent with the requirements of Section 162(m)(4)(C) of the
Code and the regulations thereunder: 
 (a) all items of gain, loss, or expense for the fiscal year or other applicable Performance Period
that are related to special, unusual, or non-recurring items, events, or circumstances affecting the Company (or Affiliate, division, other operational unit, business segment, or administrative department of
the Company or any Affiliate) or the financial statements of the Company (or Affiliate, division, other operational unit, business segment, or administrative department of the Company or any Affiliate); 

  
 Ex. A-3 

 (b) all items of gain, loss, or expense for the fiscal year or other applicable Performance
Period that are related to (i) the disposal of a business or discontinued operations or (ii) the operations of any business acquired by the Company (or Affiliate, division, other operational unit, business segment, or administrative
department of the Company or any Affiliate) during the fiscal year or other applicable Performance Period; and 
 (c) all items of gain,
loss, or expense for the fiscal year or other applicable Performance Period that are related to changes in accounting principles or to changes in applicable law or regulations. 

To the extent any Performance Criteria are expressed using any measures that require deviations from GAAP, such deviations shall be at the
discretion of the Committee as exercised at the time the Performance Criteria are set and, following the Transition Period, to the extent permitted under Section 162(m). 

  
 Ex. A-4 

 SOLID BIOSCIENCES INC. 

2018 OMNIBUS INCENTIVE PLAN 

EXHIBIT B: UNITED KINGDOM ADDENDUM 

 

	1.	Purpose 

  

	1.1	The purpose of this United Kingdom Addendum to the Plan (the “UK Addendum”) is to enable the Committee to grant Awards (being Stock Options, Restricted Stock, Other
Stock-Based Awards, or Performance-Based Cash Awards) to certain employees and full-time directors of the Company who are based
in the United Kingdom (“UK”) only. 

  

	1.2	Awards granted pursuant to the UK Addendum will be non-tax advantaged for UK tax purposes and, to the extent relevant, Awards are granted pursuant to an “employee share
scheme” for the purposes of the Financial Services and Markets Act 2000. 

  

	2.	Definitions 

 Any terms not defined in this UK Addendum will have the meaning set
out in Article II of the Plan. 
  

	3.	Terms 

 Awards granted pursuant to the UK Addendum shall be governed by the terms
of the Plan, subject to any such amendments set out below and by the terms of the individual Award agreement entered into between the Company and the Participant. 
  

	4.	Withholding Obligations 

  

	4.1	The Participant shall be accountable for any income tax and, subject to the following provisions, national insurance liability that is chargeable on any assessable income deriving from the grant, vesting, exercise,
transfer, or cancellation (whether for consideration or otherwise) of an Award, or in respect of any additional share or cash consideration acquired as a result of distribution of a dividend, or otherwise in respect of the exercise of an Award. In
respect of such assessable income, the Participant shall indemnify the Company and (at the direction of the Company) any Affiliate which is or may be treated as the employer of the Participant in respect of the following (together, the
“Tax Liabilities”): 

  

	 	(a)	any income tax liability that falls to be paid to Her Majesty’s Revenue and Customs (“HMRC”) by the Company (or the relevant employing Affiliate) under the PAYE system as it applies to
income tax under the Income Tax (Earnings and Pensions) Act 2003 (“ITEPA”) and the Pay As You Earn (“PAYE”) regulations referred to therein; and 

  
 Ex. B-1 

	 	(b)	any national insurance liability that falls to be paid to HMRC by the Company (or the relevant employing Affiliate) under the PAYE system as it applies for national insurance purposes under the Social Security
Contributions and Benefits Act 1992 and regulations referred to therein, including: 

  

	 	(i)	all the employee’s primary Class 1 national insurance contributions; and 

  

	 	(ii)	to the extent permitted by law, all of the employer’s secondary Class 1 national insurance contributions. 

  

	4.2	Pursuant to the indemnity referred to in clause 4.1 above, the Participant shall make such arrangements as the Company requires to meet the cost of the Tax Liabilities, including, at the direction of the Company,
any of the following: 

  

	 	(a)	making a cash payment of an appropriate amount to the relevant employing company whether by cheque, banker’s draft, or deduction from salary in time to enable the Company to remit such amount to HMRC before the
14th day following the end of the month in which the event giving rise to the Tax Liabilities occurred; 

  

	 	(b)	appointing the Company as agent or attorney for the sale of sufficient Shares acquired pursuant to the exercise of any Stock Options or pursuant to the grant, exercise, or vesting of an Award to cover the Tax
Liabilities and authorising the payment to the relevant company of the appropriate amount (including all reasonable fees, commissions, and expenses incurred by the relevant employing company in relation to such sale) out of the net proceeds of sale
of such Shares; or 

  

	 	(c)	to the extent permitted by law, entering into: 

  

	 	(i)	an agreement that allows the Participant’s employer to recover the whole or any portion of any employer’s secondary Class 1 National Insurance Contributions in respect of the vesting or exercise of the Award
from the Participant; or 

  

	 	(ii)	an election whereby the employer’s liability for secondary Class 1 national insurance contributions is transferred to the Participant on terms set out in the election, as approved by HMRC. 

 

	4.3	The failure by a Participant to make arrangements in line with clause 4.2 above at the request of the Company shall result in the vesting of such Award (other than an Exercisable Award) or the exercise of such
Exercisable Award (as applicable) being ineffective, null, and void. 

  

	5.	Section 431 Elections 

 Where Shares to be acquired on the exercise or
vesting of an Award are considered (at the sole discretion of the Company) to be “restricted securities” for the purposes of Part 7 of ITEPA, it is a condition of exercise that the Participant (if so directed by the Company) enter into a
joint election with the Company (or, if different, the relevant employing Affiliate) pursuant to Section 431 of ITEPA electing that the market value of the shares to be acquired on the exercise or vesting of the Award be calculated as if the
Shares were not “restricted securities.” 

  
 Ex. B-2

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