Document:

Exhibit

EXECUTION VERSION

FOURTH AMENDMENT TO FIFTH AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT

This FOURTH AMENDMENT TO FIFTH AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT (this “Amendment”), dated as of August 30, 2018, is entered into by and among the following parties:
		
	(i)
	FLEETCOR FUNDING LLC, as Seller (the “Seller”);

		
	(ii)
	FLEETCOR TECHNOLOGIES OPERATING COMPANY, LLC, as Servicer (the “Servicer”);

		
	(iii)
	PNC BANK, NATIONAL ASSOCIATION (“PNC”), as a Committed Purchaser, as the sole Swingline Purchaser and as the Purchaser Agent for its Purchaser Group;

		
	(iv)
	CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK (“CACIB”), as a Committed Purchaser and as the Purchaser Agent for its and Atlantic’s Purchaser Group;

		
	(v)
	ATLANTIC ASSET SECURITIZATION LLC (“Atlantic”), as a Conduit Purchaser for CACIB’s Purchaser Group;

		
	(vi)
	WELLS FARGO BANK, NATIONAL ASSOCIATION (“Wells”), as a Committed Purchaser and as the Purchaser Agent for its Purchaser Group;

		
	(vii)
	REGIONS BANK (“Regions”), as a Committed Purchaser and as the Purchaser Agent for its Purchaser Group;

		
	(viii)
	MUFG BANK, LTD. (“MUFG”), as a Committed Purchaser and as the Purchaser Agent for its and Victory’s Purchaser Group;

		
	(ix)
	VICTORY RECEIVABLES CORPORATION (“Victory”), as a Conduit Purchaser for MUFG’s Purchaser Group;

		
	(x)
	SUMITOMO MITSUI BANKING CORPORATION (“SMBC”), as a Committed Purchaser;

		
	(xi)
	MANHATTAN ASSET FUNDING LLC (“Manhattan”), as a Conduit Purchaser for SMBC’s Purchaser Group;

		
	(xii)
	SMBC NIKKO SECURITIES AMERICA, INC. (“SMBC Nikko”), as the Purchaser Agent for SMBC’s and Manhattan’s Purchaser Group; 

		
	(xiii)
	MIZUHO BANK, LTD. (“Mizuho”), as a Committed Purchaser; and

		
	(xiv)
	PNC BANK, NATIONAL ASSOCIATION, as Administrator

 
(in such capacity, the “Administrator”).
BACKGROUND
A.    The parties hereto are parties to that certain Fifth Amended and Restated Receivables Purchase Agreement dated as of November 14, 2014 (as amended, restated, supplemented or otherwise modified through the date hereof, the “Receivables Purchase Agreement”). Capitalized terms used and not otherwise defined herein have the respective meaning assigned to such terms in the Receivables Purchase Agreement.
B.    Concurrently herewith, the parties hereto are entering into that certain Structuring Fee Letter in connection herewith (the “Structuring Fee Letter”).
C.    The parties hereto desire to amend the Receivables Purchase Agreement on the terms and subject to the conditions set forth herein.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:
SECTION 1.      Rebalancing.
(a)    Rebalancing of Capital.  On the date hereof, the Seller will repay a portion of the outstanding Capital in the amounts for MUFG and SMBC as specified in the flow of funds memorandum attached hereto as Exhibit A (each, a “Reducing Purchaser”); provided that all accrued and unpaid Discount with respect to such Capital so repaid shall be payable by the Seller to each Reducing Purchaser, as applicable, on the next occurring Weekly Settlement Date.  The Seller hereby requests that each of PNC, Wells, CACIB, Regions and Mizuho (each, an “Increasing Purchaser”) fund a Purchase on the date hereof in the applicable amount set forth in Exhibit A hereto.  Such Purchase shall be funded by the Increasing Purchasers on the date hereof in accordance with the terms of the Receivables Purchase Agreement and upon satisfaction of all conditions precedent thereto specified in the Receivables Purchase Agreement; provided, however, that no Purchase Notice shall be required therefor.  For administrative convenience, the Seller hereby instructs the Increasing Purchasers to fund the foregoing Purchase by paying the proceeds thereof directly to the Reducing Purchasers to the accounts and in the amounts specified in Exhibit A hereto to be applied as the foregoing repayment of each Reducing Purchaser’s Capital (as applicable) on the Seller’s behalf.  The Seller shall be deemed to have received the proceeds of such Purchase from each Increasing Purchaser for all purposes immediately upon receipt thereof by each Reducing Purchaser, respectively.  
(b)    Consents.  The parties hereto hereby consent to the non-ratable repayment of each Reducing Purchaser’s Capital on terms set forth in clause (a) above and the foregoing non-ratable Purchase to be funded by the Increasing Purchasers on the terms set forth in clause (a) above, in each case, as set forth above on a one-time basis.
SECTION 2.    Amendments to the Receivables Purchase Agreement.  The Receivables Purchase Agreement is hereby amended as follows:
(a)    Each reference in the Receivables Purchase Agreement (including schedules and exhibits thereto) to “The Bank of Tokyo Mitsubishi UFJ, Ltd.” is hereby replaced with a reference to “MUFG Bank, Ltd.”
(b)    The following new Section 1.13 is added to the Receivables Purchase Agreement:
Section 1.13    Successor Euro-Rate or LMIR Index.  
(a)    If the Administrator determines (which determination shall be final and conclusive, absent manifest error) that either (i) (A) the circumstances set forth in Section 1.10 have arisen and are unlikely to be temporary, or (B) the circumstances set forth in Section 1.10 have not arisen but the applicable supervisor or administrator (if any) of  the Euro-Rate or LMIR or a Governmental Authority having jurisdiction over the Administrator has made a public statement identifying the specific date after which the Euro-Rate or LMIR shall no longer be used for determining interest rates for loans (either such date, a “LIBOR Termination Date”), or (ii) a rate other than the Euro-Rate or LMIR has become a widely recognized benchmark rate for newly originated loans in Dollars in the U.S. market, then the Administrator may (in consultation with the Seller and Purchaser Agents) choose a replacement index for the Euro-Rate or LMIR, as applicable, and make adjustments to applicable margins and related amendments to this Agreement as referred to below such that, to the extent practicable, the Discount based on the replacement index will be substantially equivalent to the Discount based on the Euro-Rate or LMIR, as applicable, in effect prior to its replacement.
(b)    The Administrator and the Seller shall enter into an amendment to this Agreement to reflect the replacement index, the adjusted margins and such other related amendments as may be appropriate, in the discretion of the Administrator, for the implementation and administration of the replacement index-based rate.  Notwithstanding anything to the contrary in this Agreement or the other Transaction Documents (including, without limitation, Section 6.1), such amendment shall become effective without any further action or consent of any other party to this Agreement at 5:00 p.m. New York City time on the tenth (10th) Business Day after the date a draft of the amendment is provided to the Group Agents, unless the Administrator receives, on or before such tenth (10th) Business Day, a written notice from the Majority Purchaser Agents stating that such Majority Purchaser Agents object to such amendment.
(c)    Selection of the replacement index, adjustments to the applicable margins, and amendments to this Agreement (i) will be determined with due consideration to the then-current market practices for determining and implementing a rate of interest for newly originated loans in the United States and loans converted from a rate based on the Euro-Rate or LMIR, as applicable, to a replacement index-based rate, and (ii) may also reflect adjustments to account for (A) the effects of the transition from the Euro-Rate or LMIR, as applicable, to the replacement index and (B) yield- or risk-based differences between the Euro-Rate or LMIR, as applicable, and the replacement index
(d)     Until an amendment reflecting a new replacement index in accordance with this Section 1.13 is effective, any Portion of Capital for which Discount is determined by reference to the Euro-Rate or LMIR will continue to accrue Discount with reference to the Euro-Rate or LMIR, as applicable, provided, however, that if the Administrator determines (which determination shall be final and conclusive, absent manifest error) that a LIBOR Termination Date has occurred, then following the LIBOR Termination Date, all Portions of Capital for which Discount would otherwise be determined with reference to the Euro-Rate or LMIR, as applicable, shall automatically begin accruing Discount with reference to the Base Rate until such time as an amendment reflecting a replacement index and related matters as described above is implemented.
(e)     Notwithstanding anything to the contrary contained herein, if at any time the replacement index is less than zero, at such times, such index shall be deemed to be zero for purposes of this Agreement.
(c)    The following new defined term and definition thereof is hereby added to Exhibit I to the Receivables Purchase Agreement in appropriate alphabetical order: 
“Material Acquisition” has the meaning assigned to such term in the Credit Agreement as in effect as of August 30, 2018 without giving effect to any amendment, supplement, modification or waiver of such term (or any other term constituting a direct or indirect component thereof) after August 30, 2018 or any substitution or replacement of such term (or any other term constituting a direct or indirect component thereof) under any substitute or replacement credit or financing facility after August 30, 2018, unless the Administrator and the Majority Purchaser Agents shall have consented in writing thereto.
(d)    The definition of “Purchase Limit” set forth in Exhibit I to the Receivables Purchase Agreement is hereby amended by replacing the amount “$950,000,000” from where it appears therein with “$1,200,000,000”.
(e)    The definition of “Consolidated Leverage Ratio” set forth in Exhibit I to the Receivables Purchase Agreement is hereby amended and restated in its entirety as follows:  
“Consolidated Leverage Ratio” has the meaning assigned to such term in the Credit Agreement as in effect as of August 30, 2018 without giving effect to any amendment, supplement, modification or waiver of such term (or any other term constituting a direct or indirect component thereof) after August 30, 2018 or any substitution or replacement of such term (or any other term constituting a direct or indirect component thereof) under any substitute or replacement credit or financing facility after August 30, 2018, unless the Administrator and the Majority Purchaser Agents shall have consented in writing thereto.

(f)    Clause (r) of Section 1 of Exhibit IV to the Receivables Purchase Agreement is hereby amended by adding the following sentence at the end thereof:
The Seller will provide to the Administrator and each Purchaser such information and documentation as may reasonably be requested by the Administrator and each Purchaser from time to time for purposes of compliance by the Administrator and each Purchaser with applicable laws (including without limitation the USA Patriot Act and other “know your customer” and anti-money laundering rules and regulations), and any policy or procedure implemented by the Administrator and each Purchaser to comply therewith.
(g)    Clause (l) of Section 2 of Exhibit IV to the Receivables Purchase Agreement is hereby amended by adding the following sentence at the end thereof:
The Servicer will provide to the Administrator and each Purchaser such information and documentation as may reasonably be requested by the Administrator and each Purchaser from time to time for purposes of compliance by the Administrator and each Purchaser with applicable laws (including without limitation the USA Patriot Act and other “know your customer” and anti-money laundering rules and regulations), and any policy or procedure implemented by the Administrator and each Purchaser to comply therewith.
(h)    Clause (n) of Exhibit V to the Receivables Purchase Agreement is hereby amended and restated in its entirety with the following:  
(n)     the Consolidated Leverage Ratio as of the end of any fiscal quarter of FleetCor shall be greater than 4.00 to 1.00; provided that in connection with any Material Acquisition, at FleetCor’s election by written notice to the Administrator prior to the consummation of such Material Acquisition, the foregoing ratio shall be increased to 4.25 to 1.00 for the fiscal quarter of FleetCor in which such Material Acquisition is consummated and for each of the next three (3) consecutive fiscal quarters of FleetCor ending thereafter (such period of increase, a “Leverage Increase Period”); provided, further, that (i) for at least one (1) fiscal quarter of FleetCor ending immediately following each Leverage Increase Period, the Consolidated Leverage Ratio as of the end of such fiscal quarter of FleetCor shall not be greater than 4.00 to 1.00 prior to giving effect to another Leverage Increase Period, and (ii) immediately after the end of a Leverage Increase Period, the maximum Consolidated Leverage Ratio permitted under this clause (n) as of the end of any fiscal quarter of FleetCor shall automatically revert to 4.00 to 1.00.
(i)    Schedule V to the Receivables Purchase Agreement is hereby replaced in its entirety with Schedule V attached hereto.
SECTION 3.    Representations and Warranties of the Seller and Servicer.  Each of the Seller and the Servicer hereby represents and warrants, as to itself, to each of the Administrator, each Purchaser and each Purchaser Agent as follows:
(a)    the representations and warranties made by it in the Transaction Documents are true and correct as of the date hereof (unless stated to relate solely to an earlier date, in which case such representations or warranties were true and correct as of such earlier date);
(b)    no event has occurred and is continuing, or would result from the transactions contemplated hereby, that constitutes a Termination Event or an Unmatured Termination Event, and the Facility Termination Date has not occurred;
(c)    the execution and delivery by such Person of this Amendment, and the performance of each of its obligations under this Amendment and the Receivables Purchase Agreement, as amended hereby, are within each of its corporate powers and have been duly authorized by all necessary corporate action on its part; and
(d)    this Amendment and the Receivables Purchase Agreement, as amended hereby, are such Person’s valid and legally binding obligations, enforceable in accordance with its terms.
SECTION 4.    Effect of Amendment.  All provisions of the Receivables Purchase Agreement, as expressly amended and modified by this Amendment, shall remain in full force and effect. After this Amendment becomes effective, all references in the Receivables Purchase Agreement (or in any other Transaction Document) to “this Receivables Purchase Agreement”, “this Agreement”, “hereof”, “herein” or words of similar effect referring to the Receivables Purchase Agreement shall be deemed to be references to the Receivables Purchase Agreement as amended by this Amendment. This Amendment shall not be deemed, either expressly or impliedly, to waive, amend or supplement any provision of the Receivables Purchase Agreement other than as set forth herein.
SECTION 5.    Effectiveness.  This Amendment shall be effective as of the date hereof and upon satisfaction of the following conditions precedent:  (a) the Administrator’s receipt of (i) counterparts of this Amendment and the Structuring Fee Letter duly executed by each of the parties hereto, (ii) an opinion of counsel for the Seller and Servicer, addressed to each Purchaser, as to due authorization, enforceability, no-conflicts with applicable law and other material agreements and other customary matters, in form and substance satisfactory to the Administrator, and (iii) such other agreements, documents, opinions, and instruments as the Administrator shall request; and (b) the receipt by each Purchaser Agent of the fees owing under the Structuring Fee Letter.
SECTION 6.    Miscellaneous.  This Amendment shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns.  This Amendment may be executed in any number of counterparts and by different parties on separate counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute but one and the same instrument.  Delivery of an executed counterpart of a signature page to this Amendment by facsimile or electronic transmission shall be effective as delivery of a manually executed counterpart hereof.
SECTION 7.    Governing Law.  THIS AMENDMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING FOR SUCH PURPOSE SECTIONS 5-1401 AND 5‐1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK).
SECTION 8.    Severability.  If any one or more of the agreements, provisions or terms of this Amendment shall for any reason whatsoever be held invalid or unenforceable, then such agreements, provisions or terms shall be deemed severable from the remaining agreements, provisions and terms of this Amendment and shall in no way affect the validity or enforceability of the provisions of this Amendment or the Receivables Purchase Agreement.
SECTION 9.    Section Headings.  The various headings of this Amendment are included for convenience only and shall not affect the meaning or interpretation of this Amendment, the Receivables Purchase Agreement or any provision hereof or thereof.

[SIGNATURES BEGIN ON NEXT PAGE]

IN WITNESS WHEREOF, the parties hereto have executed this Amendment by their duly authorized officers as of the date first above written.
FLEETCOR FUNDING LLC, as Seller

By:  /s/ Steve Pisciotta
Name:    Steve Pisciotta
Title:    Treasurer

FLEETCOR TECHNOLOGIES OPERATING COMPANY, LLC, as Servicer 
By: /s/ Steve Pisciotta 
Name:    Steve Pisciotta
Title:    Treasurer

PNC BANK, NATIONAL ASSOCIATION, 
as a Committed Purchaser and as Purchaser Agent for its Purchaser Group

By:   /s/Michael Brown
Name:   Michael Brown
Title:    Senior Vice President
CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK, as a Committed Purchaser and as Purchaser Agent for its and Atlantic Asset Securitization LLC’s Purchaser Group

By: /s/ Kostantina Kourmpetis
Name: Kostantina Kourmpetis
Title:  Managing Director
 

By:  /s/ Michael Regan
Name:  Michael Regan
Title:  Managing Director

ATLANTIC ASSET SECURITIZATION LLC, as a Conduit Purchaser for Credit Agricole Corporate and Investment Bank’s Purchaser Group
    
By: /s/ Kostantina Kourmpetis
Name: Kostantina Kourmpetis
Title:  Managing Director

By:  /s/ Michael Regan
Name:  Michael Regan
Title:  Managing Director

WELLS FARGO BANK, 
NATIONAL ASSOCIATION, 
as a Committed Purchaser and as Purchaser Agent for its Purchaser Group

By:  /s/ Eero Maki
Name: Eero Maki
Title:  Managing Director

REGIONS BANK, as a Committed Purchaser and as Purchaser Agent for its Purchaser Group

By:  /s/ Kathy Myers
Name:  Kathy Myers
Title:  Vice President

SUMITOMO MITSUI BANKING CORPORATION, as a Committed Purchaser 
 
 
By:  /s/ James D. Weinstein
Name:  James D. Weinstein 
Title:  Managing Director

MANHATTAN ASSET FUNDING COMPANY LLC, as a Conduit Purchaser for Sumitomo Mitsui Banking Corporation’s Purchaser Group 

By: MAF Receivables Corp., Its Member 
 
By: /s/ Irina Khaimova
Name: Irina Khaimova 
Title: Vice President

SMBC NIKKO SECURITIES AMERICA, INC., 
as Purchaser Agent for Sumitomo Mitsui Banking Corporation’s and Manhattan Asset Funding LLC’s Purchaser Group 
 
 
By: /s/ Masayoshi Hirabayashi
Name: Masayoshi Hirabayashi 
Title:  Managing Director & Joint General Manager

MUFG BANK, LTD., as a Committed Purchaser  
 
 
By:  /s/ Eric Williams
Name: Eric Williams 
Title:  Managing Director

VICTORY RECEIVABLES CORPORATION, 
as a Conduit Purchaser for MUFG Bank, LTD.’s Purchaser Group 
 
 
By:  /s/  Kevin J. Corrigan
Name: Kevin J. Corrigan 
Title:  Vice President

MUFG BANK, LTD., as Purchaser Agent for its and Victory Receivables Corporation’s Purchaser Group 
 
 
By:  /s/ Eric Williams
Name:  Eric Williams  
Title:  Managing Director
MIZUHO BANK, LTD., as a Committed Purchaser and as Purchaser Agent for its Purchaser Group

By:  /s/  Richard A. Burke  
Name:  Richard A. Burke
Title:  Managing Director

PNC BANK, NATIONAL ASSOCIATION, 
as Administrator

By:  /s/  Michael Brown
Name:  Michael Brown
Title:  Senior Vice President

SCHEDULE V 
PURCHASER GROUPS AND COMMITMENTS

	
			
	Purchaser Group of PNC Bank, National Association

	Party
	Capacity
	Commitment

	PNC Bank, National Association
	Committed Purchaser
	$380,000,000

	PNC Bank, National Association
	Purchaser Agent
	N/A

	
			
	Purchaser Group of Wells Fargo Bank, National Association

	Party
	Capacity
	Commitment

	Wells Fargo Bank, National Association
	Committed Purchaser
	$190,000,000

	Wells Fargo Bank, National Association
	Purchaser Agent
	N/A

	
			
	Purchaser Group of Credit Agricole Corporate and Investment Bank

	Party
	Capacity
	Commitment

	Atlantic Asset Securitization LLC
	Conduit Purchaser
	N/A

	Credit Agricole Corporate and Investment Bank
	Committed Purchaser
	$180,000,000

	Credit Agricole Corporate and Investment Bank
	Purchaser Agent
	N/A

	
			
	Purchaser Group of Regions Bank

	Party
	Capacity
	Commitment

	Regions Bank
	Committed Purchaser
	$112,500,000

	Regions Bank
	Purchaser Agent
	N/A

	
			
	Purchaser Group of MUFG Bank, LTD.

	Party
	Capacity
	Commitment

	Victory Receivables Corporation
	Conduit Purchaser
	N/A

	MUFG Bank, LTD.
	Committed Purchaser
	$125,000,000

	MUFG Bank, LTD.
	Purchaser Agent
	N/A

	
			
	Purchaser Group of Sumitomo Mitsui Banking Corporation

	Party
	Capacity
	Commitment

	Manhattan Asset Funding Co., LLC
	Conduit Purchaser
	N/A

	Sumitomo Mitsui Banking Corporation
	Committed Purchaser
	$100,000,000

	SMBC Nikko Securities America, Inc.
	Purchaser Agent
	N/A

	
			
	Purchaser Group of Mizuho Bank, Ltd.

	Party
	Capacity
	Commitment

	Mizuho Bank, Ltd.
	Committed Purchaser
	$112,500,000

	Mizuho Bank, Ltd.
	Purchaser Agent
	N/A

EXHIBIT A 
FLOW OF FUNDS MEMORANDUM
[See Attached]EXHIBIT 10.1

 

 

 

November 6, 2018

 

Mr. Jacob L. Singleton

 

Dear Jake:

 

This letter agreement (this “Letter Agreement”) sets forth the terms and
conditions of your compensation package and your at-will employment arrangement as Chief Financial Officer (“CFO”)
of The Joint Corp. (the “Company” or “The Joint”). After you have reviewed the terms of this Letter Agreement,
please sign below to signify your acceptance.

 

Position

 

In your capacity as CFO, you will have the duties, responsibilities and authority assigned
to you by the President and Chief Executive Officer of the Company (the “CEO”). The CEO shall have the right, at his
sole discretion, to modify your duties, responsibilities and/or authority from time to time.

 

Term

 

The Letter Agreement (i) shall be effective as of November 6, 2018 (“Effective
Date”), (ii) shall remain effective for one year (the “Initial Term”) and (iii) shall automatically renew for
successive one-year terms (each, a “Renewal Term” and together with the Initial Term, the “Term”), unless
at least sixty (60) days before the end of the then-current Term either party notifies the other party in writing of its or his
desire not to renew. Notwithstanding the foregoing, either party may terminate this Agreement at any time upon written notice to
the other party, in accordance with the section entitled “At Will Employment/Termination,” below.

 

Performance

 

While employed by the Company, you shall render your services diligently, faithfully
and to the best of your ability, and shall devote substantially all of your working time, energy, skill and best efforts to the
performance of your duties hereunder, in a manner that will further the business and interests of the Company.   

 

While employed by the Company, you shall not be engaged in any business activity which,
in the reasonable judgment of the CEO or the Board, conflicts with Employee’s duties hereunder.

 

Compensation

 

Effective November 6, 2018, your annual base salary has been set at the rate of Two Hundred
Thousand Dollars ($200,000.00) (“Base Salary”). The Base Salary is payable in accordance with the Company’s regular
payroll schedule and subject to appropriate withholdings and deductions.

 

 

    

    

    

 

During your employment, you will be eligible to participate in the Company’s Short-Term
Incentive Plan (“STIP”) with a target amount equal to forty percent (40%) of your Base Salary. You must be actively
employed by the Company on the date of payout in order to receive an award under the STIP. Bonus payments will be determined after
the completion of The Joint’s annual audit on or about March 1 of each year. The Joint will pay any bonus payable to you
no later than March 15 of the year after the end of the year for which the bonus is earned, provided that in the event The Joint
pays annual bonuses to employees generally at a different time, your payment will also be paid at that time.

 

Benefits

 

You will continue to be eligible to participate in the employee fringe benefits programs
and plans as may be in effect from time to time that are generally available to similarly-situated Company employees, subject to
the terms and eligibility requirements of such programs and plans. Additionally, notwithstanding the provisions of the Employee
Handbook, you shall be entitled to four (4) weeks of paid vacation annually. Upon the termination of your employment, you shall
be entitled to receive the cash value of any unused vacation.

 

Amended and Restated 2014 Incentive Stock Plan and Future Long-Term Incentive Plans

 

You will continue to participate in The Joint Corp. Amended and Restated 2014 Incentive
Stock Plan (the “Stock Plan”). You also will be eligible to participate in any other long-term incentive plans that
The Joint may adopt, subject to the terms and eligibility requirements of any such plans and the discretion of The Joint’s
board of directors (or of the committee of the board administering the plan for executive officers and senior management) in making
awards under such plans.

 

You will receive a grant of stock options under the Stock Plan as soon as practicable
following the Effective Date, in the amount of 35,000 shares, such stock options to be qualified as “incentive stock options”
pursuant to Section 422 of the Internal Revenue Code. 8,750 of such options shall vest on each of the first four anniversaries
of the grant date. These options are in lieu of any grant you might have received in March of 2019 under the Stock Plan or the
Company’s long-term incentive plan, if any.

 

“At-Will” Employment/Termination

 

Nothing in any of the Company's personnel policies will be deemed to constitute a right
to employment or to otherwise obligate the Company to employ you. At all times, your employment with the Company is “at-will,”
which means that you may resign at any time for any reason and the Company may terminate your employment at any time for any reason
or for no reason at all, with or without advance notice (provided that any notice of termination by either party shall be in writing).
If your employment is terminated for any reason, this Letter Agreement will terminate automatically, you shall have no further
rights or obligations hereunder except for the provisions that expressly survive the termination of this Letter Agreement and the
terms and conditions contained in the Confidentiality, Nonsolicitation and Noncompetition Agreement (the “Confidentiality
Agreement”) that accompanies this Letter Agreement, and the Company shall have no further obligations to you, other than
for payment of your Base Salary through the date of termination to the extent not theretofore paid. Notwithstanding the foregoing,
if the Company terminates your employment other than for Cause or Disability (each as defined below) or death, and you enter into
a separation agreement including a general release of claims and obligations against the Company and its affiliates in a form and
substance acceptable to the Company within fifty-two (52) days after your date of termination and provided you have not rescinded
such separation agreement within seven (7) days thereafter, then you will be entitled to a severance payment equal to fifty percent
(50%) of your then-current Base Salary. The severance payment will be payable in installments over a six month period beginning
with the next regular payroll payment date in accordance with the Company’s normal payroll practice. To the extent that,
the severance payment is not subject to Code Section 409A, the Company may, in its sole discretion, elect to make your severance
payment in a lump sum in cash within sixty (60) days after your date of termination. If paid in installments, each installment
shall be treated as a separate payment for Code Section 409A purposes. To the extent necessary to comply with Code Section 409A,
if the severance payment could be made or commence in more than one taxable year depending upon when you execute the release, the
payment will be made or commence in the later taxable year. Upon termination, you shall not be entitled to any pro-rata portion
of STIP.

 

    

    

    

 

For purposes of this Letter Agreement, Cause means any one or more of the following:
(i) the commission of any crime involving dishonesty, breach of trust or physical harm to any person, (ii) willfully engaging in
conduct that is in bad faith or injurious to The Joint or its business (including, for example, fraud or embezzlement), (iii) gross
misconduct, whether personal or professional, which could cause harm to the business or reputation of The Joint, (iv) failure to
comply with the significant provisions of The Joint’s policies as specified in the Employee Handbook or Code of Ethics, or
as otherwise adopted by the board of directors and provided to you, applicable to you and then in effect, or (v) willful and material
failure to perform or observe, or gross negligence in the performance of, any of the terms or provisions of this Letter Agreement,
including the failure to follow the reasonable written directions of the CEO, and any breach of this agreement or covenants of
confidentiality, non-competition, non-solicitation or other covenants you’ve agreed to with The Joint.

 

For purposes of this Letter Agreement, “Disability” shall mean your inability
to perform the essential functions of your job, with or without reasonable accommodation for a period of at least ninety (90) substantially
continuous days or for a period of one hundred twenty (120) days in the aggregate during any 12-month period.

 

This section entitled “’At Will’ Employment/Termination” shall
survive the termination of this Letter Agreement, provided that if the parties enter into a new written employment agreement, any
provision in such new employment agreement relating to severance shall supersede and replace this section and this section shall
terminate.

 

Deferred Compensation

 

This Letter Agreement shall be interpreted and administered in a manner so that any amount
or benefit payable hereunder shall be paid or provided in a manner that is either exempt from or compliant with the requirements
of Section 409A of the Internal Revenue Code (the “Code”) and applicable Internal Revenue Service guidance and Treasury
Regulations issued thereunder (and any applicable transition relief under Section 409A of the Code).

 

Notwithstanding anything in this Letter Agreement to the contrary, to the extent that
any amount or benefit that would constitute non-exempt “deferred compensation” for purposes of Section 409A of the
Code would otherwise be payable or distributable hereunder by reason of your termination of employment, such amount or benefit
will not be payable or distributable to you by reason of such circumstance unless (i) the circumstances giving rise to such termination
of employment meet any description or definition of "separation from service" in Section 409A of the Code and applicable
regulations (without giving effect to any elective provisions that may be available under such definitions), or (ii) the payment
or distribution of such amount or benefit would be exempt from the application of Section 409A of the Code by reason of the short-term
deferral exemption or otherwise. If this provision prevents the payment or distribution of any amount or benefit, such payment
or distribution shall be made on the date, if any, on which an event occurs that constitutes a Section 409A-compliant “separation
from service,” or such later date as may be required by the following paragraph.

 

    

    

    

 

If any amount or benefit that would constitute non-exempt “deferred compensation”
for purposes of Section 409A of the Code would otherwise be payable or distributable under this Letter Agreement by reason of your
separation from service during a period in which you are a “specified employee” (as defined in Section 409A of the
Code and applicable regulations), then payment or commencement of such non-exempt amounts or benefits shall be delayed until the
earlier of (i) thirty (30) days following your death or (ii) the first day of the seventh month following your separation from
service.

 

The provisions of this Section shall survive the termination of this Letter Agreement.

 

Confidentiality, Non-Solicitation and Non-Competition Agreement

 

This Letter Agreement is subject to your entering into the confidentiality, noncompetition
and nonsolicitation agreement which has been provided to you with this Letter Agreement (the “Confidentiality Agreement”).
The Joint would not enter into this Letter Agreement without your entering into the Confidentiality Agreement.

 

Assignment

 

Neither you nor The Joint shall assign, transfer, pledge or encumber any interest in
this Letter Agreement or any part thereof without the express written consent of the other party. For the avoidance of doubt, in
the event of a change of control of The Joint, (i) your failure to consent to the assignment of this Agreement upon The Joint’s
(or its successor’s) request shall be considered a termination of this Agreement by you; and (ii) The Joint’s (or its
successor’s) failure to consent to the assignment of this Agreement upon your request shall be considered a termination of
this Agreement by The Joint (or its successor) without Cause (unless The Joint or its successor expressly states that the termination
is for Cause, including the reasons therefor).

 

Dispute Resolution

 

You acknowledge and agree that it is absolutely critical that this Letter Agreement be
implemented in a manner which minimizes the possibility of any material disagreement and/or dispute. Any dispute or disagreement
between you and the Company with respect to any term or provision of this Letter Agreement, the subject matter hereof, or the interpretation
or enforcement hereof, shall be resolved through confidential good faith negotiation, followed, if necessary, by confidential mediation.
All actions brought with respect to this Letter Agreement shall be brought and maintained only in Maricopa County, Arizona (unless
otherwise mutually agreed by you and the Company). The Company and you hereby both agree to waive trial by jury in any action,
proceeding or counterclaim brought by the Company or you against the other with respect to any matter arising out of or in connection
with this Letter Agreement. Should either you or the Company, or any heir, personal representative, successor or permitted assign
of either party, resort to legal proceedings to enforce this Letter Agreement, the prevailing party in such legal proceeding shall
be awarded, in addition to such other relief as may be granted, attorneys’ fees and costs incurred in connection with such
proceeding. For purposes of this Agreement, the term “prevailing” shall mean prevailing on the merits in a final adjudication
of a claim brought hereunder, regardless of whether a settlement has been offered and rejected by either party. The provisions
of this paragraph shall survive the termination of this Letter Agreement.

 

    

    

    

 

Cooperation.

 

Upon termination of your employment for any reason, other than for Cause, death or Disability,
you shall fully cooperate with and assist The Joint in the transition of all significant areas of your responsibility for the conduct
of The Joint’s business to the officers and employees of The Joint who have been assigned by The Joint to assume such duties.
In this regard, and without limiting your obligation to assist with the transition, you shall within one (1) week of the effective
date of your termination, deliver a transition memorandum to The Joint setting forth in reasonable detail, all material open matters
with respect to which you have been devoting your attention including the status of such matters, the anticipated timeline for
completion of such uncompleted matters, key persons within and outside of The Joint who are involved in such matters and their
respective roles, and any other information reasonably necessary or appropriate in order to effect the transition of responsibility
for such matters from you to the persons to whom they have been reassigned including copies of pertinent background correspondence
and documents in your possession. Following termination of employment, you shall have no further responsibility for the advancement
or resolution of any open matters, but shall make yourself reasonably available by telephone or timely email correspondence for
up to sixty (60) days following the termination of employment to respond to questions about the facts and circumstances surrounding
and applicable to the open matters. Failure to fully comply with this paragraph shall be grounds for withholding post-termination
severance payments due to you, but only if you are given written notice that The Joint believes that you are not fully cooperating,
which notice states the reasons therefore, and after you are given fifteen (15) days to cure such non-cooperation. If such non-cooperation
is ultimately cured, then any post-termination severance payments which may have been withheld shall be promptly resumed including
all back payments.

 

General Provisions

 

The provisions of this Letter Agreement are severable from one another and the invalidity
of one part of the Letter Agreement shall not invalidate any other part.

 

This Letter Agreement shall be deemed to be made in and shall in all respects be interpreted,
construed and governed by and in accordance with the laws of the State of Arizona (without giving effect to the conflict of law
principles thereof). Both the Company and you represent and agree that, prior to executing this Letter Agreement, each has had
the opportunity to consult with independent counsel concerning the terms of this Letter Agreement. No provision of this Letter
Agreement or any related documents shall be construed against, or interpreted to the disadvantage of either of the Company or you
by any court or any governmental or judicial authority by reason of either having, or being deemed to have, structured or drafted
such provision or any portion of this Letter Agreement.

 

    

    

    

 

This Letter Agreement is intended to be the final expression of the Company’s and
your agreement with respect to the subject matter hereof, and this is the complete and exclusive statement of the terms of that
agreement, notwithstanding any representations, statements or agreements to the contrary made by either. This Letter Agreement
supersedes any earlier agreements governing the same subject matter. This Letter Agreement may not be amended or modified other
than by a written agreement executed by the parties hereto or their respective successors and legal representatives. You acknowledge
and agree that standard Company policies and procedures applicable to all employees, as amended from time to time, shall govern
matters not set forth in this Letter Agreement.

 

[Signature page follows.]

 

 

 

 

 

 

 

 

 

    

    

    

 

If the foregoing is acceptable to you, please so indicate by signing a copy of this letter
where indicated below and returning it to the undersigned.

 

Very truly yours,

 

 

THE JOINT CORP.

 

	/s/ Peter Holt	 	 
	Peter Holt, President and Chief Executive Officer	 	 
	 	 	 
	Agreed and accepted this 6th day of November, 2018

	 	 
	 	 	 
	/s/ Jacob L. Singleton	 	 
	Jacob L. Singleton

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