Document:

Exhibit 4.3

 

TJCW14-001

 

THE REGISTERED HOLDER
OF THIS PURCHASE WARRANT BY ITS ACCEPTANCE HEREOF, AGREES THAT IT WILL NOT SELL, TRANSFER OR ASSIGN THIS PURCHASE WARRANT EXCEPT
AS HEREIN PROVIDED AND THE REGISTERED HOLDER OF THIS PURCHASE WARRANT AGREES THAT IT WILL NOT SELL, TRANSFER, ASSIGN, PLEDGE OR
HYPOTHECATE THIS PURCHASE WARRANT FOR A PERIOD OF ONE HUNDRED EIGHTY DAYS FOLLOWING THE EFFECTIVE DATE (DEFINED BELOW) TO ANYONE
OTHER THAN (I) ROTH CAPITAL PARTNERS, LLC OR FELTL AND COMPANY, INC. OR AN UNDERWRITER OR A SELECTED DEALER PARTICIPATING IN THE
OFFERING, OR (II) A BONA FIDE OFFICER OR PARTNER OF ROTH CAPITAL PARTNERS, LLC OR FELTL AND COMPANY, INC. OR OF ANY SUCH UNDERWRITER
OR SELECTED DEALER.

 

THIS PURCHASE WARRANT
IS NOT EXERCISABLE PRIOR TO NOVEMBER 10, 2015. VOID AFTER 5:00 P.M., EASTERN TIME, NOVEMBER 10, 2018.

 

COMMON STOCK PURCHASE WARRANT

 

For the Purchase of 22,500 Shares of Common
Stock

of

The Joint Corp.

 

1.Purchase Warrant. THIS CERTIFIES
THAT, in consideration of funds duly paid by or on behalf of Roth Capital Partners, LLC (“Holder”), as registered
owner of this Purchase Warrant, to The Joint Corp., a Delaware corporation (the “Company”), Holder is entitled,
at any time or from time to time from November 10, 2015 (the “Commencement Date”), and until at or before 5:00
p.m., Eastern time, November 10, 2018 (the “Expiration Date”), but not thereafter, to subscribe for,
purchase and receive, in whole or in part, up to 22,500 shares of common stock of the Company, par value $0.001 per share (the
“Shares”), subject to adjustment as provided in Section 6 hereof. If the Expiration Date is a day on which banking
institutions are authorized by law to close, then this Purchase Warrant may be exercised on the next succeeding day which is not
such a day in accordance with the terms herein. During the period commencing on the Effective Date and ending on the Expiration
Date, the Company agrees not to take any action that would terminate this Purchase Warrant. This Purchase Warrant is initially
exercisable at $8.125 per Share; provided, however, that upon the occurrence of any of the events specified in Section
6 hereof, the rights granted by this Purchase Warrant, including the exercise price per Share and the number of Shares to be received
upon such exercise, shall be adjusted as therein specified. The term “Exercise Price” shall mean the initial
exercise price or the adjusted exercise price, depending on the context. The term “Effective Date” shall mean November
10, 2014, the date on which the Registration Statement on Form S-1 (File No. 333-198860) of the Company was declared effective
by the Securities and Exchange Commission.

 

     

     

    

  

2.           Exercise.

 

2.1           Exercise
Form. In order to exercise this Purchase Warrant, the exercise form attached hereto must be duly executed and completed and
delivered to the Company, together with this Purchase Warrant and payment of the Exercise Price for the Shares being purchased
payable in cash by wire transfer of immediately available funds to an account designated by the Company or by certified check or
official bank check. If the subscription rights represented hereby shall not be exercised at or before 5:00 p.m., Eastern time,
on the Expiration Date, this Purchase Warrant shall become and be void without further force or effect, and all rights represented
hereby shall cease and expire.

 

2.2           Cashless
Exercise.  If at any time after the Commencement Date there is no effective registration statement registering, or no
current prospectus available for, the resale of the Shares by the Holder at the time the Holder desires to exercise this Purchase
Warrant, then in lieu of exercising this Purchase Warrant at that time by payment of cash or check payable to the order of the
Company pursuant to Section 2.1 above, Holder may elect to receive the number of Shares equal to the value of this Purchase Warrant
(or the portion thereof being exercised), by surrender of this Purchase Warrant to the Company, together with the exercise form
attached hereto, in which event the Company shall issue to Holder, Shares in accordance with the following formula:

 

	X	=	Y(A-B)	 
	A	 
	Where,	 	 	 
	 	X	=	The number of Shares to be issued to Holder;
	 	Y	=	The number of Shares for which the Purchase Warrant is being exercised;
	 	A	=	The fair market value of one Share; and
	 	B	=	The Exercise Price.

 

For purposes of this
Section 2.2, the fair market value of a Share is defined as follows:

 

		(i)	if the Company’s common stock is traded on a securities
exchange, the value shall be deemed to be the closing price on such exchange on the trading day prior to the exercise form being
submitted in connection with the exercise of the Purchase Warrant;

 

		(ii)	if the Company’s common stock is actively traded
over-the-counter, the value shall be deemed to be the closing bid price on the trading day prior to the exercise form being submitted
in connection with the exercise of the Purchase Warrant; or

 

		(iii)	if there is no active public market, the value shall
be the fair market value thereof, as determined in good faith by the Company’s Board of Directors.

 

2.3          Legend.
Each certificate representing the Shares shall bear a legend as follows unless such securities have been registered under the Securities
Act of 1933, as amended (the “Securities Act”):

 

“The securities
represented by this certificate have not been registered under the Securities Act of 1933, as amended (the “Securities
Act”), or applicable state law. Neither the securities nor any interest therein may be offered for sale, sold or otherwise
transferred except pursuant to an effective registration statement under the Securities Act, or pursuant to an exemption from registration
under the Securities Act and applicable state law which, in the opinion of counsel to the Company, is available.”

 

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3.           Transfer.

 

3.1           General
Restrictions. The registered Holder of this Purchase Warrant agrees by his, her or its acceptance hereof, that such Holder
will not: (a) sell, transfer, assign, pledge or hypothecate this Purchase Warrant for a period of one hundred eighty (180) days
following the Effective Date to anyone other than: (i) Roth Capital Partners, LLC (“Roth”) or Feltl and Company,
Inc. (“Feltl”) or an underwriter or a selected dealer participating in the offering contemplated by the Underwriting
Agreement (the “Offering”), or (ii) a bona fide officer or partner of Roth or Feltl or of any such underwriter
or selected dealer, provided that, in each case (i) or (ii), such transfer shall be in accordance with FINRA Rules 5110(g)(1) and
5110(g)(2)(A)(ii), or (b) cause this Purchase Warrant or the securities issuable hereunder to be the subject of any hedging, short
sale, derivative, put or call transaction that would result in the effective economic disposition of this Purchase Warrant or the
securities hereunder, except as provided for in FINRA Rule 5110(g)(2). On and after 180 days after the Effective Date, transfers
of this Purchase Warrant to others may be made subject to compliance with or exemptions from applicable securities laws. In order
to make any permitted assignment, the Holder must deliver to the Company the assignment form attached hereto duly executed and
completed, together with the Purchase Warrant and payment of all transfer taxes, if any, payable in connection therewith. The Company
shall within five (5) business days transfer this Purchase Warrant on the books of the Company and shall execute and deliver a
new Purchase Warrant or Purchase Warrants of like tenor to the appropriate assignee(s) expressly evidencing the right to purchase
the aggregate number of Shares purchasable hereunder or such portion of such number as shall be contemplated by any such assignment.

 

3.2           Restrictions
Imposed by the Securities Act. The securities evidenced by this Purchase Warrant shall not be transferred unless and until:
(i) the Company has received the opinion of counsel for the Holder that the securities may be transferred pursuant to an exemption
from registration under the Securities Act and applicable state securities laws, the availability of which is established to the
reasonable satisfaction of the Company (the Company hereby agreeing that the opinion of Mintz, Levin, Cohn, Ferris, Glovsky and
Popeo, P.C. shall be deemed satisfactory evidence of the availability of an exemption), or (ii) a registration statement or a
post-effective amendment to the Registration Statement relating to the offer and sale of such securities has been filed by the
Company and declared effective by the U.S. Securities and Exchange Commission (the “Commission”) and compliance
with applicable state securities law has been established.

 

4.           Registration
Rights.

 

4.1           Demand
Registration.

 

4.1.1           Grant
of Right. The Company, upon written demand (a “Demand Notice”) of the Holder agrees to register, on one
occasion, all or any portion of the Shares underlying the Purchase Warrant (the “Registrable Securities”),
if and when the Company is eligible to use a registration statement on Form S-3. On such occasion, the Company will file
a registration statement with the Commission covering the Registrable Securities within sixty (60) days after receipt of a Demand
Notice and use its commercially reasonable efforts to have the registration statement declared effective promptly thereafter, subject
to compliance, with review by the Commission; provided, however, that the Company shall not be required to comply
with a Demand Notice if the Company has filed a registration statement with respect to which the Holder is entitled to piggyback
registration rights pursuant to Section 4.2 hereof and either: (i) the Holder has elected to participate in the offering covered
by such registration statement or (ii) if such registration statement relates to an underwritten primary offering of securities
of the Company, until the offering covered by such registration statement has been withdrawn or until thirty (30) days after such
offering is consummated. The demand for registration may be made at any time during a period of three (3) years beginning on the
Commencement Date. The Company covenants and agrees to give written notice of its receipt of any Demand Notice by any Holder(s)
to all other Holders of the Purchase Warrants and/or the Registrable Securities within ten (10) days after the date of the receipt
of any such Demand Notice.

 

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4.1.2           Terms. The
Company shall bear all fees and expenses attendant to the registration of the Registrable Securities pursuant to Section
4.1.1, but the Holder shall pay any and all underwriting commissions and the expenses of any legal counsel selected by the
Holder to represent it in connection with the sale of the Registrable Securities. The Company agrees to use its commercially
reasonable efforts to cause the filing required herein to become effective promptly and to qualify or register the
Registrable Securities in such states as are reasonably requested by the Holder; provided, however, that in no
event shall the Company be required to register the Registrable Securities in a state in which such registration would cause:
(i) the Company to be obligated to register or license to do business in such state or submit to general service of process
in such state, or (ii) the principal stockholders of the Company to be obligated to escrow their shares of capital stock of
the Company. The Company shall cause any registration statement filed pursuant to the demand right granted under Section
4.1.1 to remain effective for a period of at least twelve (12) consecutive months after the date that the Holder of the
Registrable Securities covered by such registration statement is first given the opportunity to sell all of such securities.
The Holder shall only use the prospectuses provided by the Company to sell the shares covered by such registration statement,
and will immediately cease to use any prospectus furnished by the Company if the Company advises the Holder that such
prospectus may no longer be used due to a material misstatement or omission. Notwithstanding the provisions of this Section
4.1.2, the Holder shall be entitled to a demand registration under this Section 4.1.2 on only one (1) occasion and such
demand registration right shall terminate on the fourth anniversary of the effectiveness of the registration statement in
accordance with FINRA Rule 5110(f)(2)(G)(iv).

 

4.2           “Piggy-Back”
Registration.

 

4.2.1           Grant
of Right. In addition to the demand right of registration described in Section 4.1 hereof, the Holder shall have the right,
for a period of no more than six (6) years from the Effective Date in accordance with FINRA Rule 5110(f)(2)(G)(v), to include all
or any portion of the Registrable Securities as part of any other registration of securities filed by the Company (other than in
connection with a transaction of the type contemplated by Rule 145(a) promulgated under the Securities Act or pursuant to Form
S-8 or any equivalent form); provided, however, that if, in c any primary or secondary underwritten public offering
for the account of the Company, the managing underwriter(s) thereof shall, in its reasonable discretion, impose a limitation on
the number of shares of Common Stock which may be included in the Registration Statement because, in such underwriter(s)’
judgment, marketing or other factors dictate such limitation is necessary to facilitate public distribution, then the Company shall
be obligated to include in such Registration Statement only such limited portion of the Registrable Securities with respect to
which the Holder requested inclusion hereunder as the underwriter shall reasonably permit. Any exclusion of Registrable Securities
shall be made pro rata among the selling stockholders seeking to include Shares in proportion to the number of Shares sought to
be included by such selling stockholders; provided, however, that the Company shall not exclude any Registrable Securities
unless the Company has first excluded all outstanding securities, the holders of which are not entitled to inclusion of such securities
in such Registration Statement or are not entitled to pro rata inclusion with the Registrable Securities.

 

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4.2.2          Terms.
The Company shall bear all fees and expenses attendant to registering the Registrable Securities pursuant to Section 4.2.1 hereof,
but the Holder shall pay any and all underwriting commissions and the expenses of any legal counsel selected by the Holder to represent
it in connection with the sale of the Registrable Securities. In the event of such a proposed registration, the Company shall furnish
the then Holder of outstanding Registrable Securities with not less than thirty (30) days written notice prior to the proposed
date of filing of such registration statement. Such notice to the Holder shall continue to be given for each registration statement
filed by the Company until such time as all of the Registrable Securities have been sold by the Holder. The holders of the Registrable
Securities shall exercise the “piggy-back” rights provided for herein by giving written notice within ten (10) days
of the receipt of the Company’s notice of its intention to file a registration statement. Except as otherwise provided in
this Purchase Warrant, there shall be no limit on the number of times the Holder may request registration under this Section 4.2.2;
provided, however, that such registration rights shall terminate on the fifth anniversary of the Commencement Date.

 

4.3           General
Terms.

 

4.3.1           Indemnification.
The Company shall indemnify the Holder of the Registrable Securities to be sold pursuant to any registration statement hereunder
and each person, if any, who controls such Holder within the meaning of Section 15 of the Securities Act or Section 20 (a) of the
Securities Exchange Act of 1934, as amended (“Exchange Act”), against all loss, claim, damage, expense or liability
(including all reasonable attorneys’ fees and other expenses reasonably incurred in investigating, preparing or defending
against any claim whatsoever) to which any of them may become subject under the Securities Act, the Exchange Act or otherwise,
arising from such registration statement but only to the same extent and with the same effect as the provisions pursuant to which
the Company has agreed to indemnify the Underwriters contained in Section 9(a) of the Underwriting Agreement between Roth, Feltl
(as representatives of the several Underwriters named in Schedule 1 attached thereto) and the Company, dated as of November 11,
2014. The Holder(s) of the Registrable Securities to be sold pursuant to such registration statement, and their successors and
assigns, shall severally, and not jointly, indemnify the Company, against all loss, claim, damage, expense or liability (including
all reasonable attorneys’ fees and other expenses reasonably incurred in investigating, preparing or defending against any
claim whatsoever) to which they may become subject under the Securities Act, the Exchange Act or otherwise, arising from information
furnished by or on behalf of the Holder(s), or their successors or assigns, in writing, for specific inclusion in such registration
statement to the same extent and with the same effect as the provisions contained in Section 9(b) of the Underwriting Agreement
pursuant to which the Underwriters have agreed to indemnify the Company.

 

4.3.2           Exercise
of Purchase Warrant. Nothing contained in this Purchase Warrant shall be construed as requiring the Holder to exercise their
Purchase Warrant prior to or after the initial filing of any registration statement or the effectiveness thereof.

 

4.3.3           Documents
Delivered to Holder. The Company shall furnish to each Holder participating in any of the foregoing offerings and to each underwriter
of any offering pursuant to Section 4.1 or Section 4.2 hereof, if any, a signed counterpart, addressed to such Holder or underwriter,
of: (i) an opinion of counsel to the Company, dated the effective date of such registration statement (and, if such registration
statement includes an underwritten public offering, an opinion dated the date of the closing under any underwriting agreement related
thereto), and (ii) a “cold comfort” letter dated the effective date of such registration statement (and, if such registration
statement includes an underwritten public offering, a letter dated the date of the closing under the underwriting agreement) signed
by the independent registered public accounting firm which has issued a report on the Company’s financial statements included
in such registration statement, in each case covering substantially the same matters with respect to such registration statement
(and the prospectus included therein) and, in the case of such accountants’ letter, with respect to events subsequent to
the date of such financial statements, as are customarily covered in opinions of issuer’s counsel and in accountants’
letters delivered to underwriters in underwritten public offerings of securities. The Company shall also deliver promptly to each
Holder participating in the offering requesting the correspondence and memoranda described below and to the managing underwriter,
if any, copies of all correspondence between the Commission and the Company, its counsel or auditors and all memoranda relating
to discussions with the Commission or its staff with respect to the registration statement and permit each Holder and underwriter
to do such investigation, upon reasonable advance notice, with respect to information contained in or omitted from the registration
statement as it deems reasonably necessary to comply with applicable securities laws or rules of FINRA. Such investigation shall
include access to books, records and properties and opportunities to discuss the business of the Company with its officers and
independent auditors, all to such reasonable extent and at such reasonable times as any such Holder shall reasonably request.

 

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4.3.4          Underwriting
Agreement. The Company shall enter into an underwriting agreement with the managing underwriter(s), if any, selected by the
holders of a majority of the shares covered by the Registration Statement contemplated by either Section 4.1 or Section 4.2, which
managing underwriter shall be reasonably satisfactory to the Company. Such agreement shall be reasonably satisfactory in form and
substance to the Company, each Holder and such managing underwriters, and shall contain such representations, warranties and covenants
by the Company and such other terms as are customarily contained in agreements of that type used by the managing underwriter. The
Holder shall be a party to any underwriting agreement relating to an underwritten sale of their Registrable Securities and may,
at their option, require that any or all the representations, warranties and covenants of the Company to or for the benefit of
such underwriters shall also be made to and for the benefit of such Holder. Such Holder shall not be required to make any representations
or warranties to or agreements with the Company or the underwriters except as they may relate to such Holder, the Shares and their
intended methods of distribution.

 

4.3.5          Documents
to be Delivered by Holder. Each Holder participating in any of the foregoing offerings shall furnish to the Company a completed
and executed questionnaire provided by the Company requesting information customarily sought of selling security holders.

 

4.3.6           Damages.
Should the Company fail to comply with the provisions of Section 4.1 or Section 4.2, the Holder shall, in addition to any other
legal or other relief available to the Holder, be entitled to obtain specific performance or other equitable (including injunctive)
relief against the threatened breach of such provisions or the continuation of any such breach, without the necessity of proving
actual damages and without the necessity of posting bond or other security.

 

5.           New
Purchase Warrant to be Issued.

 

5.1           Partial
Exercise or Transfer. Subject to the restrictions in Section 3 hereof, this Purchase Warrant may be exercised or assigned in
whole or in part. In the event of the exercise or assignment hereof in part only, upon surrender of this Purchase Warrant for cancellation,
together with the duly executed exercise or assignment form and funds sufficient to pay the Exercise Price and/or transfer tax
if exercised pursuant to Section 2.1 hereto, the Company shall cause to be delivered to the Holder without charge a new Purchase
Warrant of like tenor to this Purchase Warrant in the name of the Holder evidencing the right of the Holder to purchase the number
of Shares purchasable hereunder as to which this Purchase Warrant has not been exercised or assigned.

 

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5.2           Lost
Certificate. Upon receipt by the Company of evidence satisfactory to it of the loss, theft, destruction or mutilation of this
Purchase Warrant and of reasonably satisfactory indemnification or the posting of a bond, the Company shall execute and deliver
a new Purchase Warrant of like tenor and date. Any such new Purchase Warrant executed and delivered as a result of such loss,
theft, mutilation or destruction shall constitute a substitute contractual obligation on the part of the Company.

 

6.           Adjustments.

 

6.1           Adjustments
to Exercise Price and Number of Securities. The Exercise Price and the number of Shares underlying the Purchase Warrant shall
be subject to adjustment from time to time as hereinafter set forth:

 

6.1.1           Share
Dividends; Split Ups. If, after the date hereof, and subject to the provisions of Section 6.3 below, the number of outstanding
Shares is increased by a stock dividend payable in Shares or by a split up of Shares or other similar event, then, on the effective
day thereof, the number of Shares purchasable hereunder shall be increased in proportion to such increase in outstanding Shares,
and the Exercise Price shall be proportionately decreased.

 

6.1.2            Aggregation
of Shares. If, after the date hereof, and subject to the provisions of Section 6.3 below, the number of outstanding Shares
is decreased by a consolidation, combination or reclassification of Shares or other similar event, then, on the effective date
thereof, the number of Shares purchasable hereunder shall be decreased in proportion to such decrease in outstanding Shares, and
the Exercise Price shall be proportionately increased.

 

6.1.3          Replacement
of Securities upon Reorganization, etc. In case of any reclassification or reorganization of the outstanding Shares other than
a change covered by Section 6.1.1 or 6.1.2 hereof or that solely affects the par value of such Shares, or in the case of any share
reconstruction or amalgamation or consolidation of the Company with or into another corporation (other than a consolidation or
share reconstruction or amalgamation in which the Company is the continuing corporation and that does not result in any reclassification
or reorganization of the outstanding Shares), or in the case of any sale or conveyance to another corporation or entity of the
property of the Company as an entirety or substantially as an entirety in connection with which the Company is dissolved, the Holder
of this Purchase Warrant shall have the right thereafter (until the expiration of the right of exercise of this Purchase Warrant)
to receive upon the exercise hereof, for the same aggregate Exercise Price payable hereunder immediately prior to such event, the
kind and amount of shares of stock or other securities or property (including cash) receivable upon such reclassification, reorganization,
share reconstruction or amalgamation, or consolidation, or upon a dissolution following any such sale or transfer, by a Holder
of the number of Shares of the Company obtainable upon exercise of this Purchase Warrant immediately prior to such event; and if
any reclassification also results in a change in Shares covered by Section 6.1.1 or 6.1.2, then such adjustment shall be made pursuant
to Sections 6.1.1, 6.1.2 and this Section 6.1.3. The provisions of this Section 6.1.3 shall similarly apply to successive reclassifications,
reorganizations, share reconstructions or amalgamations, or consolidations, sales or other transfers.

 

6.1.4           Changes in Form of Purchase Warrant. This form of Purchase Warrant need not be changed because of any change pursuant to
this Section 6.1, and any Purchase Warrant issued after such change may state the same Exercise Price and the same number of Shares
as are stated in the Purchase Warrant initially issued. The acceptance by any Holder of the issuance of a new Purchase Warrant
reflecting a required or permissive change shall not be deemed to waive any rights to an adjustment occurring after the Effective
Date or the computation thereof.

 

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6.2           Substitute
Purchase Warrant. In case of any consolidation of the Company with, or share reconstruction or amalgamation of the Company
with or into, another corporation (other than a consolidation or share reconstruction or amalgamation which does not result in
any reclassification or change of the outstanding Shares), the corporation formed by such consolidation or share reconstruction
or amalgamation shall execute and deliver to each Holder a supplemental Purchase Warrant providing that the holder of such Purchase
Warrant then outstanding or to be outstanding shall have the right thereafter (until the stated expiration of such Purchase Warrant)
to receive, upon exercise of such Purchase Warrant, the kind and amount of shares of stock and other securities and property receivable
upon such consolidation or share reconstruction or amalgamation, by a holder of the number of Shares of the Company for which
such Purchase Warrant might have been exercised immediately prior to such consolidation, share reconstruction or amalgamation,
sale or transfer. Such supplemental Purchase Warrant shall provide for adjustments which shall be identical to the adjustments
provided for in this Section 6. The above provision of this Section 6 shall similarly apply to successive consolidations or share
reconstructions or amalgamations.

 

6.3         Elimination of Fractional
Interests. The Company shall not be required to issue certificates representing fractions of Shares upon the exercise of the
Purchase Warrant, nor shall it be required to issue scrip or pay cash in lieu of any fractional interests, it being the intent
of the parties that all fractional interests shall be eliminated by rounding any fraction up or down, as the case may be, to the
nearest whole number of Shares or other securities, properties or rights.

 

7.           Reservation and Listing.
The Company shall at all times reserve and keep available out of its authorized Shares, solely for the purpose of issuance upon
exercise of the Purchase Warrant, such number of Shares as shall be issuable upon the exercise thereof. The Company covenants and
agrees that, upon exercise of the Purchase Warrant and payment of the Exercise Price therefor (or upon cashless exercise, as the
case may be), in accordance with the terms hereby, all Shares and other securities issuable upon such exercise shall be duly and
validly issued, fully paid and non-assessable and not subject to preemptive rights of any stockholder. As long as the Purchase
Warrant shall be outstanding, the Company shall use its commercially reasonable efforts to cause all Shares issuable upon exercise
of the Purchase Warrant to be listed (subject to official notice of issuance) on all national securities exchanges (or, if applicable,
on the OTC Bulletin Board or any successor trading market) on which the Shares issued to the public in the Offering may then be
listed and/or quoted.

 

8.           Certain
Notice Requirements.

 

8.1           Holder’s
Right to Receive Notice. Nothing herein shall be construed as conferring upon the Holder the right to vote or consent or to
receive notice as a stockholder for the election of directors or any other matter, or as having any rights whatsoever as a stockholder
of the Company. If, however, at any time prior to the expiration of the Purchase Warrant, any of the events described in Section
8.2 shall occur, then, in one or more of said events, the Company shall give written notice of such event at least fifteen days
prior to the date fixed as a record date or the date of closing the transfer books for the determination of the stockholders entitled
to such dividend, distribution, conversion or exchange of securities or subscription rights, or entitled to vote on such proposed
dissolution, liquidation, winding up or sale. Such notice shall specify such record date or the date of the closing of the transfer
books, as the case may be. Notwithstanding the foregoing, the Company shall deliver to each Holder a copy of each notice given
to the other stockholders of the Company at the same time and in the same manner that such notice is given to the stockholders.

 

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8.2          Events Requiring
Notice. The Company shall be required to give the notice described in this Section 8 upon one or more of the following events:
(i) if the Company shall take a record of the holders of its Shares for the purpose of entitling them to receive a dividend or
distribution payable otherwise than in cash, or a cash dividend or distribution payable otherwise than out of retained earnings,
as indicated by the accounting treatment of such dividend or distribution on the books of the Company, (ii) the Company shall offer
to all the holders of its Shares any additional shares of capital stock of the Company or securities convertible into or exchangeable
for shares of capital stock of the Company, or any option, right or warrant to subscribe therefor, or (iii) a dissolution, liquidation
or winding up of the Company (other than in connection with a consolidation or share reconstruction or amalgamation) or a sale
of all or substantially all of its property, assets and business shall be proposed.

 

8.3          Notice of
Change in Exercise Price. The Company shall, promptly after an event requiring a change in the Exercise Price pursuant to Section
6 hereof, send notice to the Holder of such event and change (“Price Notice”). The Price Notice shall describe
the event causing the change and the method of calculating same and shall be certified as being true and accurate by an executive
officer of the Company.

 

8.4         Transmittal
of Notices. All notices, requests, consents and other communications under this Purchase Warrant shall be in writing and shall
be deemed to have been duly made when hand delivered, or mailed by express mail or private courier service: (i) if to the registered
Holder of the Purchase Warrant, to the address of such Holder as shown on the books of the Company and the address below, or (ii)
if to the Company, to the following address or to such other address as the Company may designate by notice to the Holder:

 

If to the Holder:

 

Roth Capital Partners, LLC

888 San Clemente Drive

Newport Beach, California 92660

Attn: Aaron Gurewitz, Managing Director, Head of Equity
Capital Markets

Fax: (949) 720-7227

 

Feltl and Company, Inc.

2100 LaSalle Plaza

800 LaSalle Avenue

Minneapolis, Minnesota 55402

Attn: Christopher R. Pravecek, Director of Investment
Banking

Fax: (612) 492-8899

 

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

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

666 Third Avenue

New York, New York 10017

Attn: Ivan K. Blumenthal, Esq.

Fax:  (212) 983-3115 

 

If to the Company:

 

The Joint Corp.

9383 East Bahia Drive, Suite 100 

Scottsdale, Arizona 85260

Attn: John B. Richards

 

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

 

Johnson and Colmar

2201 Waukegan Road, Suite 260

Bannockburn, Illinois 60015

Attn: Craig Colmar, Esq.

Fax: (312) 922-9283

 

9.           Miscellaneous.

 

9.1           Amendments.
The Company, Roth and Feltl may from time to time supplement or amend this Purchase Warrant without the approval of the Holder
in order to cure any ambiguity, to correct or supplement any provision contained herein that may be defective or inconsistent with
any other provisions herein, or to make any other provisions in regard to matters or questions arising hereunder that the Company,
Roth and Feltl may deem necessary or desirable and that the Company, Roth and Feltl deem shall not adversely affect the interest
of the Holder. All other modifications or amendments shall require the written consent of and be signed by the party against whom
enforcement of the modification or amendment is sought.

 

9.2          Headings.
The headings contained herein are for the sole purpose of convenience of reference, and shall not in any way limit or affect the
meaning or interpretation of any of the terms or provisions of this Purchase Warrant.

 

9.3.        Entire
Agreement. This Purchase Warrant (together with the other agreements and documents being delivered pursuant to or in connection
with this Purchase Warrant) constitutes the entire agreement of the parties hereto with respect to the subject matter hereof, and
supersedes all prior agreements and understandings of the parties, oral and written, with respect to the subject matter hereof.

 

9.4          Binding
Effect. This Purchase Warrant shall inure solely to the benefit of and shall be binding upon, the Holder and the Company and
their permitted assignees, respective successors, legal representatives and assigns, and no other person shall have or be construed
to have any legal or equitable right, remedy or claim under or in respect of or by virtue of this Purchase Warrant or any provisions
herein contained.

 

9.5          Governing
Law; Submission to Jurisdiction; Trial by Jury. This Purchase Warrant shall be governed by and construed and enforced in accordance
with the laws of the State of Delaware, without giving effect to conflict of laws principles thereof. The Company hereby agrees
that any action, proceeding or claim against it arising out of, or relating in any way to this Purchase Warrant shall be brought
and enforced in the District Court of Minnesota or in the United States District Court for the District of Minnesota, and irrevocably
submits to such jurisdiction, which jurisdiction shall be exclusive. The Company hereby waives any objection to such exclusive
jurisdiction and that such courts represent an inconvenient forum. Any process or summons to be served upon the Company may be
served by transmitting a copy thereof by registered or certified mail, return receipt requested, postage prepaid, addressed to
it at the address set forth in Section 8 hereof. Such mailing shall be deemed personal service and shall be legal and binding upon
the Company in any action, proceeding or claim. The Company and the Holder agree that the prevailing party (or parties) in any
such action shall be entitled to recover from the other party (or parties) all of its reasonable attorneys’ fees and expenses
relating to such action or proceeding and/or incurred in connection with the preparation therefor. The Company (on its behalf and,
to the extent permitted by applicable law, on behalf of its stockholders and affiliates) and the Holder 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.

 

    	 	10	 

     

    

  

9.6          Waiver,
etc. The failure of the Company or the Holder to at any time enforce any of the provisions of this Purchase Warrant shall not
be deemed or construed to be a waiver of any such provision, nor to in any way affect the validity of this Purchase Warrant or
any provision hereof or the right of the Company or any Holder to thereafter enforce each and every provision of this Purchase
Warrant. No waiver of any breach, non-compliance or non-fulfillment of any of the provisions of this Purchase Warrant shall be
effective unless set forth in a written instrument executed by the party or parties against whom or which enforcement of such waiver
is sought; and no waiver of any such breach, non-compliance or non-fulfillment shall be construed or deemed to be a waiver of any
other or subsequent breach, non-compliance or non-fulfillment.

 

9.7          Execution
in Counterparts. This Purchase Warrant may be executed in one or more counterparts, and by the different parties hereto in
separate counterparts, each of which shall be deemed to be an original, but all of which taken together shall constitute one and
the same agreement, and shall become effective when one or more counterparts has been signed by each of the parties hereto and
delivered to each of the other parties hereto. Such counterparts may be delivered by facsimile transmission or other electronic
transmission.

 

9.8          Exchange
Agreement. As a condition of the Holder’s receipt and acceptance of this Purchase Warrant, Holder agrees that, at any
time prior to the complete exercise of this Purchase Warrant by Holder, if the Company, Roth and Feltl enter into an agreement
(“Exchange Agreement”) pursuant to which they agree that the Purchase Warrant will be exchanged for securities
or cash or a combination of both, then Holder shall agree to such exchange and become a party to the Exchange Agreement.

 

[Signature Page
Follows]

 

    	 	11	 

     

    

  

IN WITNESS WHEREOF, the Company has caused
this Purchase Warrant to be signed by its duly authorized officer as of the 14th day of November, 2014.

 

	THE JOINT CORP.
	By: 	/s/ John B. Richards	 
	 	Name: John B. Richards	 
	 	Title: Chief Executive Officer	 

 

    	 	12	 

     

    

  

[Form to be used to exercise Purchase
Warrant]

 

Date: __________, 20___

 

The undersigned hereby
elects irrevocably to exercise the Purchase Warrant for ______ shares of common stock, par value $0.001 per share (the “Shares”),
of The Joint Corp., a Delaware corporation (the “Company”), and hereby makes payment of $____ (at the rate of
$8.125 per Share) in payment of the Exercise Price pursuant thereto. Please issue the Shares as to which this Purchase Warrant
is exercised in accordance with the instructions given below and, if applicable, a new Purchase Warrant representing the number
of Shares for which this Purchase Warrant has not been exercised.

 

or

 

The undersigned hereby
elects irrevocably to convert its right to purchase ___ Shares under the Purchase Warrant for ______ Shares, as determined in accordance
with the following formula:

 

	 	X	=	Y(A-B)	 
	A	 

  

	Where,	 	 	 
	 	X	=	The number of Shares to be issued to Holder;
	 	Y	=	The number of Shares for which the Purchase Warrant is being exercised;
	 	A	=	The fair market value of one Share which is equal to $_____; and
	 	B	=	The Exercise Price which is equal to $8.125 per Share

 

The undersigned
agrees and acknowledges that the calculation set forth above is subject to confirmation by the Company and any disagreement with
respect to the calculation shall be resolved by the Company in its sole discretion.

 

Please issue
the Shares as to which this Purchase Warrant is exercised in accordance with the instructions given below and, if applicable, a
new Purchase Warrant representing the number of Shares for which this Purchase Warrant has not been exercised.

 

	Signature	 	 

 

 

	Signature Guaranteed		

 

     

     

    

 

INSTRUCTIONS FOR REGISTRATION OF SECURITIES

 

	Name:	 	 
	 	(Print in Block Letters)	 
	 	 	 
	Address:	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

NOTICE: The signature
to this form must correspond with the name as written upon the face of the Purchase Warrant without alteration or enlargement or
any change whatsoever, and must be guaranteed by a bank, other than a savings bank, or by a trust company or by a firm having membership
on a registered national securities exchange.

 

     

     

    

  

[Form to be used to assign Purchase Warrant]

 

ASSIGNMENT

 

(To be executed by the registered Holder
to effect a transfer of the within Purchase Warrant):

 

FOR VALUE RECEIVED, __________________
does hereby sell, assign and transfer unto the right to purchase __________________ shares of common stock, par value $0.001 per
share, of The Joint Corp., a Delaware corporation (the “Company”), evidenced by the Purchase Warrant and does
hereby authorize the Company to transfer such right on the books of the Company.

 

Dated: __________, 20__

 

	Signature	 	 

 

 

	Signature Guaranteed	 	 

 

NOTICE: The signature to this form must correspond with the
name as written upon the face of the within Purchase Warrant without alteration or enlargement or any change whatsoever, and must
be guaranteed by a bank, other than a savings bank, or by a trust company or by a firm having membership on a registered national
securities exchange.Exhibit 10.3

 

The Joint Corp. Amended and Restated
2014 Incentive Stock Plan

(as amended and restated on August 4, 2015)

 

Article 1

Purpose

 

The purpose of this plan is to recognize
and reward participants for their efforts on the Company’s behalf, to motivate participants by appropriate incentives to
contribute to the Company’s attainment of its performance objectives, and to align participants’ interests with those
of the Company’s other stockholders through compensation based on the performance of the Company’s common stock.

 

Article 2

Definitions

 

Annual Option is defined in Article
7.

 

Award means an Option, SAR Award,
Restricted Stock Award or RSU Award under the Plan.

 

Award Agreement means a written or
electronic agreement between the Company and a Participant incorporating the terms of an Award to the Participant.

 

Board means the Company’s Board
of Directors.

 

Change of Control is defined in Article
8. The terms “continuing Director,” “appointed Director” and “elected Director” are also
defined in Article 8.

 

Code means the Internal Revenue Code
of 1986, as amended.

 

common stock means the Company’s
common stock, par value $.001 per share.

 

Committee is defined in Paragraph
3.1. Unless the Board designates a different committee, the Compensation Committee of the Board shall serve as the Committee (as
long as all of the members of the Compensation Committee qualify under Paragraph 3.1).

 

Company means The Joint Corp., a Delaware
corporation.

 

Consultant means any individual who
provides bona fide consulting or advisory services to the Company or a Subsidiary.

 

Director means a director of the Company.

 

Eligible Person means, in respect
of all types of Awards except ISOs, any Employee, Director or Consultant and, in respect of ISOs, any Employee.

 

Employee means a full-time or part-time
employee of the Company or a Subsidiary.

 

Exchange Act means the Securities
Exchange Act of 1934, as amended.

 

Expiration Date means the last day
on which an Option or SAR may be exercised.

 

     

     

    

 

Fair Market Value means, for a given
day, the value of a share of common stock determined as follows:

 

i.      If
the common stock is listed on The NASDAQ Stock Market, its Fair Market Value will be the last reported sales price of a share of
common stock as quoted on such exchange on the day in question (or on the most recent trading day if the day in question is not
a trading day);

 

ii.     For
purposes of any Awards granted on the Registration Date, the Fair Market Value will be the initial price to the public as set forth
in the final prospectus included within the registration statement in Form S-1 filed with the Securities and Exchange Commission
for the initial public offering of the Company’s common stock; or

 

iii.    In
the absence of an established market for the common stock, the Fair Market Value will be determined in good faith by the Administrator.

 

Grant Date means, in respect of an
Award, the date that the Committee grants the Award or any later date that the Committee specifies as the effective date of the
Award.

 

ISO means an incentive stock option
described in §422 of the Code.

 

NSO means a nonstatutory stock option
(i.e., any stock option other than an ISO).

 

Option means an award pursuant to
Article 5 or Article 7 of an option to purchase shares of common stock. In the case of an award pursuant to Article 5, the Committee
shall designate at the time of grant whether an Option is an ISO or a NSO.

 

Outside Director means a Director
who is not an Employee.

 

Participant means an Eligible Person
who holds an Award under the Plan.

 

Performance Goals means one or more
of the following objective performance goals for the Company, a division or a Subsidiary, measured over a 12-month or longer period
and specified either in absolute terms or in percentage terms relative to a target, base period, index or peer group:

 

		•	earnings per share

		•	earnings before interest, taxes, depreciation and amortization

		•	revenues

		•	income from operations

		•	return on invested capital

		•	return on assets

		•	internal rate of return

		•	return on stockholders’ equity

		•	total return to stockholders

 

Plan means this plan, as it may be
amended. The name of this Plan is the “The Joint Corp. Amended and Restated 2014 Incentive Stock Plan.”

 

Registration Date means the effective
date of the first registration statement that is filed by the Company and declared effective pursuant to Section 12(g) of the Exchange
Act, with respect to the Company’s shares.

 

    	 	2	 

     

    

 

Restricted Shares means shares of
common stock subject to a risk of forfeiture or other restrictions that will lapse if and when specified service requirements,
Performance Goals or other conditions are satisfied.

 

Restricted Stock Award means an award
of Restricted Shares pursuant to Article 6.

 

Restricted Stock Unit means a contractual
right to receive one share of common stock in the future if and when specified service requirements, Performance Goals or other
conditions are satisfied.

 

RSU Award means an award of Restricted
Stock Units pursuant to Article 6.

 

SAR, or stock appreciation right,
means a contractual right to receive a payment representing the excess of the Fair Market Value of a share of common stock on the
date that the right is exercised over the exercise price per share of the right.

 

SAR Award means an award of a Stand-Alone
SAR or Tandem SAR pursuant to Article 5.

 

Stand-Alone SAR means an SAR that
is not related to an Option.

 

share means a share of the Company’s
common stock.

 

Subsidiary means a “subsidiary
corporation” as defined in §424(f) of the Code.

 

Tandem SAR means an SAR that is related
to an Option.

 

Termination means, in respect of an
Employee, his or her termination of service to the Company or a Subsidiary. An employee’s (i) transferring employment from
the Company to a Subsidiary or from a Subsidiary to the Company or to another Subsidiary or (ii) leaving service as an Employee
but continuing service as a Consultant or Director shall not be considered a termination of service. Termination means, in respect
of a Director, his or her termination of service on the Board of the Company. A Director’s leaving the Board but continuing
in service to the Company as an Employee or Consultant shall not be considered a termination of service. Termination means, in
respect of a Consultant, his or her termination of service as a Consultant.

 

Termination Date means the date on
which an Employee, Director or Consultant, as the case may be, incurs a Termination.

 

Article 3

Administration

 

3.1     Committee

 

The Board shall designate a committee of
the Board (the “Committee”) to administer the Plan except in respect of Directors, for whom the full Board shall administer
the Plan. The Committee shall consist of two or more Directors both or all of whom shall be (i) “non-employee directors”
as defined in Rule 16b-3 under the Exchange Act, (ii) “independent directors” under the applicable listing standards
of The NASDAQ Global Market and (iii) “outside directors” under §162(m) of the Code.

 

    	 	3	 

     

    

 

3.2     Authority

 

Subject to the terms of the Plan, the Committee
shall have the authority to select the Eligible Persons to whom Awards are to be granted and to determine the time, type, number
of shares, vesting, restrictions, limitations and other terms and conditions of each Award.

 

Awards under the Plan need not be uniform
in respect of different Eligible Persons, whether or not similarly situated. The Committee may consider such factors as it deems
relevant in selecting Eligible Persons for Awards and in determining their Awards.

 

The Committee may condition the vesting of
any Award on the attainment of one or more Performance Goals. Performance Goals may differ from Participant to Participant and
from Award to Award. The Committee shall specify the applicable Performance Goal or Goals in the underlying Award Agreement (but
in no event later than the latest permissible date to enable the Award to qualify as performance-based compensation under §162(m)
of the Code). The Committee’s evaluation of a Performance Goal’s attainment may be adjusted to exclude any extraordinary
events and transactions as described in Accounting Principles Board Opinion No. 30, but in all other respects, the measurement
of Performance Goals shall be determined in accordance with the Company’s financial statements and U.S. generally accepted
accounting principles.

 

The Committee may interpret the Plan, adopt,
revise and rescind policies and procedures to administer the Plan, and make all factual and other determinations required for Plan’s
administration.

 

The Committee’s determinations, interpretations
and other actions shall be final and binding. No member of the Committee shall be liable for any action of the Committee in good
faith.

 

3.3     Procedures

 

The members of the Committee shall elect
a chairman, and the Committee shall meet as necessary at the call of the chairman or any two members of the Committee. A majority
of the members of the Committee shall constitute a quorum, and all actions of the Committee at a meeting at which a quorum is present
shall be taken by majority vote.

 

A member of the Committee may participate
in any meeting of the Committee by a conference telephone call or other means that enable all persons participating in the meeting
to hear one another, and participation in this manner shall constitute his or her presence in person at the meeting. The Committee
also may act by the unanimous written consent of its members.

 

Article 4

Plan Operation

 

4.1     Effective
Date

 

This Plan shall become effective if and when
approved by the Company’s stockholders.

 

4.2     Term

 

This Plan shall have a term of 10 years,
expiring on the tenth anniversary of its approval by the Company’s stockholders (but remaining in effect, however, for outstanding
Awards). No Award may be granted under the Plan after its expiration.

 

4.3     Maximum
Number of Shares

 

The maximum total number of shares of common
stock for which Awards may be granted under this Plan is 1,513,000 shares. This maximum shall be subject to the capitalization
adjustments under Section 4.6.

 

    	 	4	 

     

    

 

The shares for which Options and SARs are
granted shall count against this limit on a 1-for-1 basis, and the shares for which Restricted Stock Awards and RSU Awards are
granted shall count against this limit on a 2-for-1 basis (so that each share for which a Restricted Stock Award or RSU Award is
granted reduces by two shares the available number of shares for which Awards may be granted).

 

The shares for which Awards may be granted
shall be shares currently authorized but unissued or shares that the Company currently holds or subsequently acquires as treasury
shares, including shares purchased in the open market or in private transactions.

 

4.4     Shares
Available for Awards

 

The determination of the number of shares
of common stock available for Awards under the Plan shall take into account the following:

 

(a)       If
an Option lapses or expires unexercised, the number of shares in respect of which the Option lapsed or expired shall be added back
to the available number of shares for which Awards may be granted.

 

(b)      If
a Restricted Stock Award or RSU Award lapses or is forfeited, twice the number of shares in respect of which the Award lapsed or
was forfeited shall be added back to the available number of shares for which Awards may be granted.

 

(c)       If
a SAR Award or RSU Award is settled in cash, the number of shares in respect of which the Award was settled in cash shall not be
added back to the available number of shares for which Awards may be granted.

 

(d)      If
the exercise price of an Option is paid by delivery of shares of common stock pursuant to Section 5.8, the number of shares
issued upon exercise of the Option, without netting the shares delivered in payment of the exercise price, shall be taken into
account in determining the available number of shares for which Awards may be granted.

 

4.5     Individual
Limit on Awards

 

In any calendar year, the maximum number
of shares for which Awards may be granted to any Eligible Person shall not exceed 100,000 shares in the case of Options and SARS
and 100,000 shares in the case of Restricted Stock and RSU Awards, in each case taking into account all similar types of grants
and awards under other stock option and equity compensation plans of the Company. These maximums shall be subject to the capitalization
adjustments under Section 4.6.

 

4.6     Capitalization
Adjustments

 

In the event of a change in the number of
outstanding shares of common stock by reason of a stock dividend, stock split, recapitalization, reorganization or the like, the
Committee may, and in the case of a reverse stock split, the Committee shall, equitably adjust the following in order to prevent
a dilution or enlargement of the benefits or potential benefits intended to be provided under the Plan: (i) the number of shares
for which Awards may be granted under the Plan, (ii) the maximum number of shares for which Awards may be granted to any Eligible
Person in a calendar year, (iii) the aggregate number of shares in respect of each outstanding Award and (iv) the exercise price
of each outstanding Option and SAR. The Committee may also make any other equitable adjustments that the Committee considers appropriate.
Except in the case of a reverse stock split, adjustments shall be made in the Committee’s discretion, and its decisions shall
be final and binding.

 

    	 	5	 

     

    

  

Article 5

Stock Options and SARs

 

5.1     Grant

 

The Committee may grant an Option or SAR
to any Eligible Person. Subject to the terms of this Plan, the Committee shall determine the restrictions, limitations and other
terms and conditions of each Option and SAR Award.

 

The Committee shall designate each Option
as either an ISO or NSO, and shall designate each SAR Award as either a Stand-Alone SAR or a Tandem SAR. A Tandem SAR may not be
granted later than the time that its related Option is granted.

 

5.2     Exercise
Price

 

The Committee shall determine the exercise
price of each Option and SAR. The exercise price per share may not be less than the Fair Market Value on the Grant Date of the
Option or SAR.

 

Except for capitalization adjustments under
Section 4.6 or as approved by the Company’s stockholders, the exercise price per share of any outstanding Option or
SAR may not be reduced, and the Option or SAR may not be surrendered to the Company for cash or as consideration for the grant
of a new Option or SAR with a lower exercise price per share.

 

5.3     Vesting
and Term

 

The Committee shall determine the time or
times at which each Option and Stand-Alone SAR becomes vested. Vesting may be based on continuous service or on the attainment
of Performance Goals or other conditions specified in the Award Agreement. A Tandem SAR shall vest if and to the extent that its
related Option vests, and shall expire or be canceled when its related Option expires or is canceled. No Option or SAR may have
an Expiration Date more than 10 years from its Grant Date. The Committee, in its discretion, at any time may accelerate the vesting
of an Option or SAR or extend its Expiration Date (subject to the foregoing maximum 10-year term).

 

5.4     Termination
of Employment or Service as a Director

 

Unless otherwise specified in the underlying
Award Agreement, in the case of an Option or SAR held by an Employee or Director who incurs a Termination:

 

(a)       if
and to the extent that the Option or SAR is unvested as of the Employee’s or Director’s Termination Date, the Option
or SAR shall lapse on the Termination Date unless the Termination is incurred by reason of his or her death, in which case the
Option or SAR shall become fully vested as of the Employee’s or Director’s Termination Date; and

 

(b)      subject
to subsection (c) in the case of an Option granted to a Director under Article 7, if and to the extent that the Option or SAR is
(or becomes) vested as of the Employee’s or Director’s Termination Date, the Option or SAR shall expire (i) on the
earlier of 90 days after the Termination Date or the Expiration Date of the Option or SAR, or (ii) if the Termination is incurred
by reason of his or her death, on the earlier of the first anniversary of the Employee’s or Director’s death or the
Expiration Date of the Option or SAR.

 

    	 	6	 

     

    

 

(c)       in
the case of an Option granted to a Director under Article 7, if and to the extent that the Option is (or becomes) vested as of
the Director’s Termination Date, the Option shall expire on its Expiration Date.

 

5.5     Transferability

 

No Option or SAR may be transferred, assigned
or pledged, whether by operation of law or otherwise, except (i) as provided in the underlying Award Agreement or as the Committee
otherwise permits, or (ii) as provided by will or the applicable laws of intestacy or (iii) if:

 

(a)       the
transferee is a revocable trust that the employee established for estate planning reasons (in respect of which the employee is
treated as the owner for federal income tax purposes); or

 

(b)      the
transferee is (i) the spouse of the employee or a child, step-child, grandchild, parent, sibling or child of a sibling of the employee
(each an “eligible transferee”), (ii) a custodian for an eligible transferee under any Uniform Transfers to Minors
Act or Uniform Gifts to Minors Act or (iii) a trust for the primary benefit of one or more eligible transferees.

 

Transfers described in the preceding clause
(b) shall be subject to any restrictions and requirements that the Committee considers appropriate (for example, the transferee’s
written agreement to be bound by the terms of the Plan and the underlying Award Agreement).

 

No Option or SAR shall be subject to execution,
attachment or similar process.

 

5.6     Additional
ISO Rules

 

To the extent that the aggregate fair market
value (determined in respect of each ISO on the basis of the Fair Market Value of a share of common stock on the ISO’s Grant
Date) of the underlying shares of all ISOs that become exercisable by an individual for the first time in any calendar year exceeds
$100,000, the Options shall be treated as NSOs. This limitation shall be applied by taking ISOs into account in the order in which
they were granted.

 

In the case of an ISO granted to an Employee
who at the time of grant owns stock possessing more than 10% of the total combined voting power of all classes of stock of the
Company (or any Subsidiary), the exercise price per share may not be less than 110% of the Fair Market Value on the Grant Date
and the ISO may not have an Expiration Date more than five years from the Grant Date.

 

The Award Agreement underlying an Option
that the Committee designates as an ISO may contain any additional terms, beyond those of this Plan, that the Committee considers
necessary or desirable to include to assure that the Option complies with the requirements of §422 of the Code.

 

5.7     Manner
of Exercise

 

A vested Option or SAR may be exercised in
full or only partially (but in the case of a partial exercise, only in respect of a whole number of shares) by (i) written notice
to the Committee or its designee stating the number of shares in respect of which the Option or SAR is being exercised and, in
the case of an Option, (ii) full payment of the exercise price of those shares.

 

    	 	7	 

     

    

 

5.8     Payment
of Exercise Price

 

Payment of the exercise price of an Option
shall be made by check or, if permitted by the Committee (either in the underlying Award Agreement or at the time of exercise),
by: (i) delivery of shares of common stock having a Fair Market Value on the date of exercise equal to the exercise price; (ii)
directing the Company to withhold, from the shares otherwise issuable upon exercise of the Option, shares having a Fair Market
Value on the date of exercise equal to the exercise price; (iii) by an open-market broker-assisted sale pursuant to which the Company
is promptly delivered the portion of the sales proceeds necessary to pay the exercise price; (iv) any combination of these methods
of payment; or (v) any other method of payment that the Committee authorizes.

 

5.9     Tandem
SARs

 

A Tandem SAR shall entitle the Participant
to elect to exercise either the SAR or the related Option as to all or any portion of the shares subject to the SAR and Option.
The exercise of a Tandem SAR shall cause the immediate and automatic cancellation of its related Option with respect to the same
number of shares, and the exercise, expiration or cancellation of the related Option (other than by reason of the exercise of the
Tandem SAR) shall cause the automatic and immediate cancellation of the Tandem SAR with respect to the same number of shares.

 

5.10   Settlement
of SARs

 

Settlement of a SAR may be made, in the Committee’s
discretion, in shares of common stock or in cash, or in a combination of the two, subject to applicable tax withholding requirements.
Any cash payment in settlement of a SAR shall be made on the basis of the Fair Market Value of a share of common stock on the date
that the SAR is exercised.

 

Article 6

Restricted Stock

and Restricted Stock Units

 

6.1     Grant

 

The Committee may issue Restricted Shares
or grant Restricted Stock Units to any Eligible Person. Subject to the terms of this Plan, the Committee shall determine the restrictions,
limitations and other terms and conditions of each Restricted Stock Award and RSU Award.

 

6.2     Vesting

 

The Committee shall determine the time or
times at which each Restricted Stock Award or RSU Award becomes vested. Vesting may be based on continuous service or on the attainment
of specified Performance Goals or other conditions specified in the Award Agreement.

 

Each Restricted Stock Award and RSU Award
held by an Employee or a Director shall become fully vested as of his or her Termination Date if the Termination is incurred by
reason of his or her death.

 

6.3     Transferability

 

Prior to the vesting of a Restricted Stock
Award, the Restricted Shares subject to the Award may not be transferred, assigned or pledged (except as provided in the Award
Agreement or as the Committee permits) and shall not be subject to execution, attachment or similar process. After vesting, the
shares may still remain subject to restrictions on transfer under applicable securities laws and any restrictions imposed by the
Award Agreement. If the Restricted Shares are issued in certificated form, the Committee may require each certificate representing
Restricted Shares to bear a legend making appropriate reference to the restrictions on the shares, and may also require that the
certificate, together with a stock power duly endorsed in blank by the Participant, remain in the Company’s physical custody
or in escrow with a third party until all restrictions have lapsed.

 

    	 	8	 

     

    

 

6.4     Rights
as Stockholder

 

Subject to the terms of the Plan and as provided
in the underlying Award Agreement, a Participant may have some or all of the rights of a stockholder in respect of unvested Restricted
Shares subject to a Restricted Stock Award, including the right to vote the shares and to receive dividends and other distributions
in respect of the shares. A Participant shall have all of the rights of a stockholder when Restricted Shares become vested. The
Committee may provide in the Award Agreement for the payment of dividends and distributions to the Participant when dividends are
paid to stockholders generally or at the time of vesting or distribution of the Restricted Shares.

 

A Participant shall not have any rights as
a stockholder in respect of the shares of common stock subject to a RSU Award until those shares have been issued and delivered
to the Participant pursuant to the terms of the Award.

 

6.5     Settlement
of RSU Award

 

Settlement of a RSU Award may be made, in
the Committee’s discretion, in shares of common stock or in cash, or in a combination of the two, subject to applicable tax
withholding requirements. Any cash payment in settlement of a RSU Award shall be made on the basis of the Fair Market Value of
a share of common stock on the date that the shares subject to the Award become issuable to the Participant.

 

6.6     Deferrals

 

The Committee may (but shall not be required
to) permit a Participant to elect to defer the delivery of shares upon the vesting or settlement of a Restricted Stock Award or
RSU Award. Any such election shall be for a deferral period and in a manner and on terms that the Committee approves and that comply
with the requirements of §409A of the Code.

 

Article 7

Automatic Option Grants

to Outside Directors

 

7.1     Grant

 

All grants of Options to Outside Directors
pursuant to this Article will be automatic and nondiscretionary, except as otherwise provided herein, made in accordance with the
provisions in this Article, and otherwise subject to the terms and conditions of the Plan.

 

7.2     Type
of Option

 

All Options granted pursuant to this Article
will be Nonstatutory Stock Options.

 

7.3     Annual
Option

 

Each Outside Director automatically will
be granted an Option to purchase 10,000 Shares (an “Annual Option”) upon his or her election or re-election as a Director.

 

7.4     Terms

 

The terms of each Option granted pursuant
to this Article will be as follows:

 

    	 	9	 

     

    

 

		i.	The term of the Option will be ten (10) years.

 

		ii.	The exercise price per share will be 100% of its Fair
Market Value on the Grant Date.

 

		iii.	The Option will vest in full on the first anniversary
of its Grant Date (or on the Director’s death if the Director incurs a Termination by reason of his or her death prior to
the first anniversary of the Grant Date) and is exercisable as to any (but only in respect of a whole number) or all Shares at
any time after vesting until its Expiration Date.

 

Article 8

Change of Control

 

Upon a Change of Control, all outstanding
Awards shall become fully vested and exercisable, and all restrictions on the shares underlying Restricted Stock Awards shall lapse.

 

A “Change of Control”
means an event or the last of a series of related events by which:

 

(a)      any
Person directly or indirectly acquires or otherwise becomes entitled to vote stock having 51% or more of the voting power in elections
for Directors; or

 

(b)      during
any 24-month period, a majority of the members of the Board ceases to consist of Qualifying Directors. A Director shall be considered
a “Qualifying Director” if he or she falls into any one of the following five categories:

 

(1)         a
Director at the beginning of the period (“continuing Directors”); or

 

(2)         a
Director elected to office after the start of the period by the Board with the approval of two-thirds of the incumbent continuing
Directors (an “appointed Director”); or

 

(3)         a
Director elected to office after the start of the period by the Company’s stockholders following nomination for election
by the Board with the approval of two-thirds of the incumbent continuing and appointed Directors (an “elected Director”);
or

 

(4)         a
Director elected to office after the start of the period by the Board with the approval of two-thirds of the incumbent continuing,
appointed and elected Directors; or

 

(5)         a
Director elected to office after the start of the period by the Company’s stockholders following nomination for election
by the Board with the approval of two-thirds of the incumbent continuing, appointed and elected Directors; or

 

(c)      the
Company merges or consolidates with another corporation, and holders of outstanding shares of the Company’s common stock
immediately prior to the merger or consolidation do not own stock in the survivor of the merger or consolidation having more than
51% of the voting power in elections for Directors; or

 

(d)      the
Company sells all or a substantial portion of the consolidated assets of the Company and its Subsidiaries, and the Company does
not own stock in the purchaser having more than 51% of the voting power in elections for Directors.

 

    	 	10	 

     

    

 

As used in this definition, a “Person”
means any “person” as that term is used in sections 13(d) and 14(d) of the Exchange Act, together with all of that
person’s “affiliates” and “associates” as those terms are defined in Rule 12b-2 under the Exchange
Act.

 

Article 9

Miscellaneous Provisions

 

9.1     Award
Agreement

 

Each Award under the Plan shall be evidenced
by an Award Agreement which shall be subject to and incorporate the terms of the Plan.

 

9.2     Tax
Withholding

 

The Company may withhold an amount sufficient
to satisfy its withholding tax obligations, if any, in connection with any Award under the Plan, and the Company may defer making
any payment or delivery of shares pursuant to the Award unless and until the Participant indemnifies the Company to its satisfaction
in respect of its withholding obligation.

 

9.3     Amendment
and Termination

 

The Board may amend, suspend or terminate
the Plan at any time. The Company’s stockholders shall be required to approve any amendment that would (i) materially increase
the number of shares of common stock for which Awards may be granted, (ii) increase the number of shares of common stock for which
ISOs may be granted (other than an amendment authorized under Section 4.6), (iii) permit any action that would be treated
as a repricing of Awards under applicable stock exchange rules or (iv) otherwise require stockholder approval under any applicable
laws, regulations or stock exchange rules. If the Plan is terminated, the Plan shall remain in effect for Awards outstanding as
of its termination. No amendment, suspension or termination of the Plan shall adversely affect the rights of the holder of any
outstanding Award without his or her consent.

 

9.4     Foreign
Jurisdictions

 

The Committee may adopt, amend and terminate
a supplement to the Plan to permit Employees in another country to receive Awards under the supplement (on terms not inconsistent
with the terms of Awards under the Plan) in compliance with that country’s securities, tax and other laws.

 

9.5     No
Right To Employment

 

Nothing in this Plan or in any Award Agreement
shall give any person the right to continue in the employ of the Company or any Subsidiary or limit the right of the Company or
Subsidiary to terminate his or her employment.

 

9.6     Notices

 

Notices required or permitted under this
Plan shall be considered to have been duly given if sent by certified or registered mail addressed to the Committee at the Company’s
principal office or to any other person at his or her address as it appears on the Company’s payroll or other records.

 

9.7     Severability

 

If any provision of this Plan is held illegal
or invalid for any reason, the illegality or invalidity shall not affect the remaining provisions, and the Plan shall be construed
and administered as if the illegal or invalid provision had not been included.

 

    	 	11	 

     

    

 

9.8     Governing
Law

 

This Plan and all Award Agreements shall
be governed in accordance with the laws of the State of Delaware.

 

    	 	12

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