Document:

EXHIBIT
10.5

 

 

 

UNIT
PURCHASE AGREEMENT

 

dated
as of March 1, 2018

 

by
and among

 

IMAC
HOLDINGS CORP., a Delaware corporation,

 

IMAC
of ST. LOUIS LLC, a Missouri limited liability company

 

and

 

Doug
Bouldin, Jon Ervin, Sandra Miller, and Matt Wallis, 

certain
Unitholders of IMAC of St. Louis LLC

 

 

 

    	 	 	 

    	 

    

 

Table
of Contents

 

	 	 	 	Page
	ARTICLE I THE UNIT PURCHASE	1
	 	 	 
	 	Section
    1.1	Purchase
    and Sale of the Interests.	1
	 	Section
    1.2	Closing.	2
	 	Section
    1.3	Deposit.	2
	 	Section
    1.4	Working
    Capital Adjustment.	2
	 	 	 	 
	ARTICLE II REPRESENTATIONS AND
    WARRANTIES OF THE COMPANY AND THE UNITHOLDERS	4
	 	 	 
	 	Section
    2.1	Organization,
    Etc.	4
	 	Section
    2.2	Capitalization.	5
	 	Section
    2.3	Subsidiaries.
    The     Company does not have any subsidiaries or own any equity interest in any other Person.	5
	 	Section
    2.4	Authority
    Relative to this Agreement.	5
	 	Section
    2.5	Consents
    and Approvals; No Violations.	6
	 	Section
    2.6	Financial
    Statements.	6
	 	Section
    2.7	No
    Undisclosed Liabilities.	6
	 	Section
    2.8	Absence
    of Certain Changes.	7
	 	Section
    2.9	Compliance
    with Law.	7
	 	Section
    2.10	Material
    Contracts.	7
	 	Section
    2.11	Permits.	8
	 	Section
    2.12	Litigation.	9
	 	Section
    2.13	Taxes.	9
	 	Section
    2.14	Title
    to Properties; Sufficiency of Assets.	11
	 	Section
    2.15	Intellectual
    Property.	11
	 	Section
    2.16	Insurance.	12
	 	Section
    2.17	Environmental
    Matters.	12
	 	Section
    2.18	Employee
    and Labor Matters.	13
	 	Section
    2.19	Employee
    Plans.	14
	 	Section
    2.20	Brokers
    and Finders.	15
	 	Section
    2.21	Absence
    of Questionable Payments	16
	 	Section
    2.22	Bank
    Accounts; Powers of Attorney.	16
	 	Section
    2.23	Customers
    and Suppliers.	16
	 	Section
    2.24	Accounts
    Receivable.	16
	 	Section
    2.25	Certain
    Transactions	16
	 	Section
    2.26	No
    Other Representations or Warranties.	17
	 	Section
    2.27	Disclosure.	17
	 	 	 	 
	ARTICLE III REPRESENTATIONS AND
    WARRANTIES OF HOLDINGS	17
	 	 	 
	 	Section
    3.1	Corporate
    Organization, Etc.	17
	 	Section
    3.2	Authority
    Relative to this Agreement.	17

 

    	 	-i- 	 

    	 

    

 

Table
of Contents

(continued)

 

	 	 	 	Page
	 	Section
    3.3	Consents
    and Approvals; No Violations.	18
	 	Section
    3.4	Litigation	18
	 	Section
    3.5	Brokers
    and Finders.	18
	 	Section
    3.6	Sufficient
    Funds.	18
	 	 	 	 
	ARTICLE IV COVENANTS	19
	 	 	 
	 	Section
    4.1	Conduct
    of the Business of the Company Pending the Closing.	19
	 	Section
    4.2	Access
    to Information.	21
	 	Section
    4.3	Disclosure
    Supplements.	21
	 	Section
    4.4	Consents
    and Approvals	21
	 	Section
    4.5	Filings.
	22
	 	Section
    4.6	Further
    Assurances.	22
	 	 	 	 
	ARTICLE V ADDITIONAL AGREEMENTS	22
	 	 	 
	 	Section
    5.1	Acquisition
    Proposals.	22
	 	Section
    5.2	Public
    Announcements.	23
	 	Section
    5.3	Indemnification.	23
	 	Section
    5.4	Notification
    of Certain Matters	26
	 	Section
    5.5	Non-Competition.	27
	 	Section
    5.6	Tax
    Covenants.	28
	 	Section
    5.7	Retention
    Agreements.	30
	 	 	 	 
	ARTICLE VI CONDITIONS TO CONSUMMATION
    OF THE UNIT PURCHASE	30
	 	 	 
	 	Section
    6.1	Conditions
    to Each Party’s Obligations to Effect the Unit Purchase.	30
	 	Section
    6.2	Conditions
    to the Obligation of Holdings.	31
	 	Section
    6.3	Conditions
    to the Obligations of the Company and the Unitholders.	32
	 	Section
    6.4	Closing
    Deliveries	32
	 	 	 	 
	ARTICLE VII TERMINATION	33
	 	 	 
	 	Section
    7.1	Termination
    by Mutual Agreement.	33
	 	Section
    7.2	Termination
    by either Holdings or the Unitholders.	33
	 	Section
    7.3	Termination
    by the Unitholders.	33
	 	Section
    7.4	Termination
    by Holdings.	33
	 	Section
    7.5	Effect
    of Termination and Abandonment.	33
	 	 	 	 
	ARTICLE VIII MISCELLANEOUS	34
	 	 	 
	 	Section
    8.1	Entire
    Agreement; Assignment.	34
	 	Section
    8.2	Notices.	34
	 	Section
    8.3	Governing
    Law; Jurisdiction; WAIVER OF JURY TRIAL.	35

 

    	 	-ii- 	 

    	 

    

 

Table
of Contents

(continued)

 

	 	 	 	Page
	 	Section
    8.4	Expenses.	35
	 	Section
    8.5	Descriptive
    Headings.	35
	 	Section
    8.6	Parties
    in Interest.	35
	 	Section
    8.7	Severability.	36
	 	Section
    8.8	Specific
    Performance.	36
	 	Section
    8.9	Counterparts.	36
	 	Section
    8.10	Interpretation.	36
	 	Section
    8.11	Amendment
    and Modification; Waiver.	37
	 	Section
    8.12	Definitions.	37

 

	INDEX
    OF EXHIBITS
	 
	Exhibit
    A – Form of Retention Agreements
	Exhibit
    B – Working Capital Worksheet

 

    	 	-iii- 	 

    	 

    

 

UNIT
PURCHASE AGREEMENT

 

THIS
UNIT PURCHASE AGREEMENT (this “Agreement”), dated as of March 1, 2018, is by and among IMAC Holdings Corp.,
a Delaware corporation (“Holdings”), IMAC of St. Louis LLC, a Missouri limited liability company (the “Company”),
Doug Bouldin, Jon Ervin, Sandra Miller, and Matt Wallis, certain Unitholders of the Company (collectively, the “Unitholders”).
Certain capitalized terms used herein are defined in Section 8.12.

 

RECITALS

 

WHEREAS,
as of the date of this Agreement, the outstanding membership interests in the Company consist of 100 units (the “Units”
and those units of membership interests, the “Interests”);

 

WHEREAS,
as of the date hereof, Holdings owns 36% of the outstanding Interests and the Unitholders own all of the remaining 64% of the
outstanding Interests;

 

WHEREAS,
the parties desire to enter into this Agreement to provide for the acquisition by Holdings of the Company through the purchase
by Holdings from the Unitholders of the remaining Interests.

 

NOW,
THEREFORE, in consideration of the foregoing premises and the representations, warranties, covenants and agreements herein contained,
and intending to be legally bound hereby, the parties hereto hereby agree as follows:

 

ARTICLE
I

THE
UNIT PURCHASE

 

Section
1.1 Purchase and Sale of the Interests. Upon the terms and subject to the conditions of this Agreement, the Unitholders
agrees to sell to Holdings, and Holdings agrees to purchase from the Unitholders, the Units at the Closing (the “Unit
Purchase”). The purchase price for the Interests shall be equal to the dollar amount represented by 1.05 times the total
Collections from payments at the IMAC Regeneration Centers of St. Louis on account of the Company’s regeneration-related
services and associated products from June 1, 2017 to May 31, 2018 and shall be paid as a percentage or amount in the form as
follows, subject to adjustment as provided in Section 1.4 and offset as provided in Section 5.3(c):

 

(a)
Approximately $1,000,000 in the form of cash payable as selected by the individual Unitholders at the Closing (the “Cash
Consideration”); and

 

(b)
Excess amount over the Cash Consideration in the form of shares of common stock, par value $0.001 per share (the “Holdings
Shares”), of Holdings (the “Stock Consideration” and, together with the Cash Consideration, the “Total
Consideration”).

 

    	1

    	 

    

 

Payment
of the Cash Consideration shall be made by wire transfer of immediately available funds to an account designated in writing by
the Unitholders at least two Business Days prior to the Closing Date. Payment of the Stock Consideration shall be based on the
gross price per share of the Holdings Shares received by Holdings (or otherwise calculable) in the last round of financing by
Holdings of any of its shares of common stock, preferred stock or any other equity or equity-linked securities in a third-party
financing transaction; provided, that, in the event an agreement or letter of intent for an initial public offering (which offering
includes Holdings’ contemplated Regulation A+ exempt public offering under Title IV of the JOBS Act), is executed by Holdings
establishing a valuation of Holdings and is actively in the process of being completed, the price shall not be less than the price
per share of Holding Shares established (or calculable) in the agreement or letter of intent for such public offering.

 

Section
1.2 Closing. The closing of the Contemplated Transactions (the “Closing”) will take place at a time
and on a date to be specified by the parties (the “Closing Date”), which shall be no later than the second
Business Day after satisfaction or waiver (to the extent legally permissible) of the conditions set forth in Article VI (other
than those conditions that by their nature are to be satisfied at the Closing, but subject to the fulfillment or waiver of those
conditions), at the offices of Olshan Frome Wolosky LLP, 1325 Avenue of the Americas, 15th Floor, New York, New York
10019, or at such other time, date or place as agreed to in writing by the parties hereto. At the Closing, the Unitholders will
deliver to Holdings good and valid title to the Interests, free and clear of all Encumbrances, together with a certificate(s)
for the Interests duly endorsed or accompanied by a power(s) duly endorsed in blank, with any required transfer stamps affixed
thereto, against payment or delivery of the Total Consideration.

 

Section
1.3 Deposit. Concurrently with the execution and delivery of this Agreement, Holdings shall deposit the sum of $50,000
in cash as a down payment (together with any interest earned thereon, the “Deposit”) by payment to Company’s
bank account (the “Bank”). The Deposit shall be held by the Bank pursuant to the terms of this Agreement. If
the Closing occurs in accordance with the terms and provisions of this Agreement, the Deposit shall be paid to the Unitholders
and credited against the Cash Consideration. If the Closing does not occur, the Deposit shall be held and delivered as provided
in this Agreement. The Unitholders and Holdings acknowledge and agree that if Holdings does not terminate this Agreement as provided
in Section 7.4, the Deposit will be deemed earned by the Unitholders and non-refundable to Holdings for any reason except as otherwise
specifically set forth in this Agreement.

 

Section
1.4 Working Capital Adjustment.

 

(a)
The Company and the Unitholders shall use commercially reasonable efforts to ensure that as of the close of business on the day
prior to the Closing Date, the Company shall have Closing Date Working Capital in the amount of $75,000 (the “Working
Capital Threshold”). By no later than two Business Days prior to the Closing Date, the Unitholders shall prepare, or
cause to be prepared, in consultation with Holdings, and deliver to Holdings a statement (the “Estimated Closing Date
Working Capital Statement”), which shall be subject to the prior review and approval of Holdings, setting forth the
estimated Company Working Capital as of the close of business on the day prior to the Closing Date (the “Estimated Closing
Date Working Capital”). The “Company Working Capital” shall be equal to the current assets minus
the current liabilities of the Company (each as determined in accordance with GAAP and the working capital worksheet attached
as Exhibit B hereto), including as a payable of the Company (i) any fees and out-of-pocket expenses incurred by the Company
or the Unitholders (including fees and expenses of counsel and of any broker or finder), to be paid by the Company but which has
not previously been paid by the Company, in connection with this Agreement or any of the other Transaction Documents or the consummation
of any of the Contemplated Transactions, (ii) any liability for Taxes directly or indirectly arising out of or related to the
consummation of any of the Contemplated Transactions and (iii) any liability for Transfer Taxes arising out of or related to any
of the Contemplated Transactions and accrued or paid by the Company. The Estimated Closing Date Working Capital Statement shall
fairly and accurately present the Estimated Closing Date Working Capital, determined in the manner set forth in the immediately
preceding sentence. If the Estimated Closing Date Working Capital is less than the Working Capital Threshold, then the Cash Consideration
payable on the Closing Date shall be reduced by the amount of such difference. If the Estimated Closing Date Working Capital is
greater than the Working Capital Threshold, then the Cash Consideration payable on the Closing Date shall be increased by the
amount of such excess.

 

    	2

    	 

    

 

(b)
Within ninety (90) days after the Closing, Holdings shall prepare, or cause to be prepared, and deliver to the Unitholders a statement
(the “Closing Date Working Capital Statement”) setting forth the actual Company Working Capital as of the close
of business on the day prior to the Closing Date (the “Closing Date Working Capital”). The Closing Date Working
Capital Statement shall fairly and accurately present the Closing Date Working Capital, determined in the manner set forth in
the definition of Company Working Capital in Section 1.4(a).

 

(c)
The Unitholders shall have a period of thirty (30) days after the date on which the Closing Date Working Capital Statement is
delivered to them (the “Review Period”) to review the Closing Date Working Capital Statement. If the Unitholders
objects to the calculation of the Closing Date Working Capital as set forth on such Closing Date Working Capital Statement, the
Unitholders shall so inform Holdings in writing (the “Objection”) on or before the last day of the Review Period,
setting forth in reasonable detail the basis of the Objection and the adjustments to the Closing Date Working Capital Statement
which the Unitholders believes should be made. In the event that an Objection is not delivered to Holdings on or before the last
day of the Review Period, the Unitholders shall be deemed to have agreed to the Closing Date Working Capital Statement. In the
event that an Objection is delivered to Holdings on or before the last day of the Review Period, Holdings and the Unitholders
shall attempt in good faith to reach an agreement with respect to any matters in dispute. If Holdings and the Unitholders are
unable to resolve all of their differences within thirty (30) days after delivery of the Objection to Holdings, they shall refer
their remaining differences to an independent public accountants as to which Holdings and the Unitholders shall mutually agree
(the “WC Arbiter”). The WC Arbiter shall, based on those items as to which Holdings and the Unitholders have
agreed and the WC Arbiter’s determination regarding those items in dispute, finally determine the Closing Date Working Capital;
provided, however, that the Closing Date Working Capital as finally determined by the WC Arbiter shall not be less
than the amount proposed by Holdings or greater than the amount proposed by the Unitholders. The WC Arbiter’s determination
shall be set forth in writing and shall be conclusive and binding upon all parties hereto and may be entered as a final judgment
in any court of competent jurisdiction. The non-prevailing party shall pay the fees of the WC Arbiter (unless the WC Arbiter otherwise
determines), and each of Holdings and the Unitholders shall pay the fees and expenses of their own legal counsel, accountants
and other Representatives. Each of the parties hereto shall make available to the WC Arbiter and each other party hereto all relevant
books and records and any work papers (including those, if any, of the accountants of the Company) in its possession or readily
obtainable by it relating to the Closing Date Working Capital, and all other items reasonably requested by the WC Arbiter and
each other party hereto.

 

    	3

    	 

    

 

(d)
The “Final Working Capital Amount” shall be (i) if no Objection is sent to Holdings prior to the end of the
Review Period, the amount of Closing Date Working Capital set forth on the Closing Date Working Capital Statement delivered by
Holdings, (ii) if an Objection is made but finally determined between Holdings and the Unitholders prior to referring any such
dispute to a WC Arbiter, the amount of Closing Date Working Capital so finally determined between them; and (iii) if an Objection
is sent to the WC Arbiter, the amount of Closing Date Working Capital finally determined by such WC Arbiter.

 

(e)
If the Final Working Capital Amount is less than the Estimated Closing Date Working Capital, then Holdings shall offset against
the Stock Consideration (by the forfeiture of Holdings Shares proportionally by the Unitholders) an amount equal to the difference
between the Estimated Closing Date Working Capital and the Final Working Capital Amount. If the amount of such difference exceeds
the amounts to be due (and not previously offset as provided herein), then any such excess shall be the obligation of the Unitholders
and shall be paid to Holdings within ten (10) days after the determination of the Final Working Capital Amount.

 

(f)
If the Final Working Capital Amount is greater than the Estimated Closing Date Working Capital, then the excess balance shall
be paid by Holdings to the Unitholders within ten (10) days after the determination of the Final Working Capital Amount.

 

(g)
Any amounts paid by a party pursuant to Section 1.4(e) or Section 1.4(f) will be treated as an adjustment to the Cash Consideration.

 

ARTICLE
II

REPRESENTATIONS
AND WARRANTIES OF THE

COMPANY AND THE UNITHOLDERS

 

Except
as set forth in the Company’s disclosure schedule provided herewith (the “Company Disclosure Schedule”),
the Company and the Unitholders hereby jointly and severally represent and warrant to Holdings, as of the date hereof and as of
the Closing Date, except to the extent certain representations and warranties are limited to a certain date set forth in the applicable
Section, as follows:

 

Section
2.1 Organization, Etc. The Company is duly formed, validly existing and in good standing under the Laws of the State of
Missouri and has all requisite limited liability company power and authority to conduct its business as it is now being conducted
and to own, lease and operate its properties and assets. The Company is qualified to do business and is in good standing in each
jurisdiction in which the ownership of its properties or the conduct of its business requires such qualification, except where
the failure to be so qualified or in good standing would not, individually or in the aggregate, have a Company Material Adverse
Effect. True and complete copies of the Certificate of Formation of the Company (the “Certificate of Formation”),
and Limited Liability Company Operating Agreement of the Company (the “Operating Agreement”), each as presently
in effect, have been heretofore made available to Holdings. The Company is not in violation of any term or provision of the Certificate
of Formation or Operating Agreement.

 

    	4

    	 

    

 

Section
2.2 Capitalization. The Company has _____ Units outstanding, 64% of which are owned of record and beneficially by the Unitholders,
free and clear of all Encumbrances. No other securities of the Company are issued or outstanding. All outstanding Interests are
duly authorized, validly issued, fully paid and non-assessable, and issued free from preemptive rights and in compliance with
all applicable securities Laws. Except as set forth in Section 2.2 of the Company Disclosure Schedule, there are no outstanding
(a) securities convertible into or exchangeable for Units of the Company, (b) options, warrants or other rights to purchase or
subscribe for Units of the Company, or (c) contracts, commitments, agreements, understandings or arrangements of any kind relating
to the issuance of any Units of the Company, any such convertible or exchangeable securities or any such options, warrants or
rights, pursuant to which, in any of the foregoing cases, the Company is subject or bound. The Unitholders have not granted any
power of attorney or proxy with respect to any Units owned by them. As a result of the Contemplated Transactions, Holdings will
acquire good, valid and marketable title to the Interests free and clear of all Encumbrances, other than those that may be created
or incurred by Holdings.

 

Section
2.3 Subsidiaries. The Company does not have any subsidiaries or own any equity interest in any other Person.

 

Section
2.4 Authority Relative to this Agreement. The Company has all requisite limited liability company power and authority,
and the Unitholders have all requisite right, power and authority, to execute and deliver the Transaction Documents to which it
or they are a party, to perform its or their obligations thereunder and to consummate the Contemplated Transactions. The execution
and delivery of the Transaction Documents to which the Company is a party, the performance of its obligations thereunder and the
consummation of the Contemplated Transactions have been duly and validly authorized by all required limited liability company
action on the part of the Company, and no other limited liability company or other proceedings on the part of the Company are
necessary to authorize the Transaction Documents to which it is a party or to consummate the Contemplated Transactions. This Agreement
has been, and each of the other Transaction Documents to which it or they are a party will be, duly and validly executed and delivered
by the Company and the Unitholders and, assuming this Agreement has been, and each of the other Transaction Documents to which
it or they are a party will be, duly authorized, executed and delivered by the other parties thereto, this Agreement constitutes,
and each of the other Transaction Documents to which it or they are a party will constitute, a legal, valid and binding obligation
of each of the Company and the Unitholders, enforceable against each of the Company and the Unitholders in accordance with their
respective terms, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar Laws now
or hereafter in effect relating to or affecting creditors’ rights generally, including the effect of statutory and other
Laws regarding fraudulent conveyances and preferential transfers and subject to the limitations imposed by general equitable principles
(regardless whether such enforceability is considered in a proceeding at law or in equity) (collectively, the “Bankruptcy
and Equity Principles”).

 

    	5

    	 

    

 

Section
2.5 Consents and Approvals; No Violations. Except as set forth on Section 2.5 of the Company Disclosure Schedule,
none of the execution or delivery of any of the Transaction Documents by the Company or the Unitholders, the performance by the
Company or the Unitholders of any of their obligations thereunder, or the consummation of any of the Contemplated Transactions
by the Company or the Unitholders will (a) violate any provision of the Certificate of Formation or Operating Agreement, (b) require
them to obtain or make any consent, waiver, approval, exemption, declaration, license, authorization or permit of, or registration
or filing with or notification to, any U.S. federal, state, local or foreign government, executive official thereof, governmental,
administrative or regulatory authority, agency, body or commission, including any court of competent jurisdiction, domestic or
foreign (each, a “Governmental Entity”), (c) require a consent under, result in a material violation or material
breach of, constitute (with or without notice or lapse of time or both) a material default (or give rise to any right of termination,
cancellation, amendment or acceleration or any obligation) under, or result in the creation of any Encumbrance on any of the properties
or assets of the Company pursuant to, any of the terms, conditions or provisions of any Material Contract or Lease or any contract
to which the Unitholders is a party or by which the Unitholders or any of their properties or assets are bound, or (d) violate
any Law of any Governmental Entity applicable to the Company or the Unitholders or by which the Company or the Unitholders or
any of their respective properties or assets are bound.

 

Section
2.6 Financial Statements. The Company has previously delivered or made available to Holdings true and complete copies of
the following financial statements, each of which is included in Section 2.6 of the Company Disclosure Schedule: the balance
sheet and related statements of income and retained earnings of the Company as of and for each of the years ended December 31,
2016 and December 31, 2017, each of which has been compiled by the Company’s independent registered public accounting firm
(collectively, the “Company Financials”). Each of the Company Financials (i) has been prepared from, and is
in accordance with, the books and records of the Company, (ii) does not deviate in any material respect from GAAP (except, in
the case of unaudited financial statements, for the absence of footnotes and, in the case of interim financial statements, normal
and recurring year-end adjustments (the nature or amount of which adjustments would not reasonably be expected, individually or
in the aggregate, to be material)), and (iii) fairly presents in all material respects the financial position and results of operations
of the Company as of the respective dates thereof and for the respective periods indicated therein (except that the unaudited
financial statements do not contain footnotes and interim financial statements are subject to normal and recurring year-end adjustments
(the nature or amount of which adjustments would not reasonably be expected, individually or in the aggregate, to be material)).

 

Section
2.7 No Undisclosed Liabilities.

 

(a)
The Company does not have any liabilities or obligations of any nature (absolute, accrued, contingent or otherwise), except as
and to the extent specifically set forth, disclosed in, provided for, reflected in or otherwise described in the Company Financials
or in Section 2.7(a) of the Company Disclosure Schedule, and except for those incurred in the ordinary course of business
since January 1, 2017.

 

    	6

    	 

    

 

(b)
Section 2.7(b) of the Company Disclosure Schedule sets forth all indebtedness of the Company for borrowed money.

 

Section
2.8 Absence of Certain Changes. Since December 31, 2016, except as set forth on Section 2.8 of the Company Disclosure
Schedule, the Company has not (a) conducted business other than in the ordinary and usual course consistent with past practice,
(b) suffered any Company Material Adverse Effect, (c) declared, set aside for payment or paid any dividend or other distribution
(whether in cash, securities, property or any combination thereof) in respect of any Units, or redeemed or otherwise acquired
any Units, (d) incurred any indebtedness for borrowed money or assumed, guaranteed or endorsed the obligations of any other Person,
(e) acquired or Transferred or entered into a Contract to acquire or Transfer any assets outside the ordinary course of business,
other than this Agreement, (f) created any Encumbrance on any of its properties or assets, (g) increased in any manner the rate
or terms of compensation of any of its directors, officers or employees except for any increases for employees (other than the
Unitholders) made in the ordinary course of business, (h) paid or agreed to pay any pension, retirement allowance or other material
employee benefit not required by any existing Benefit Plan or Employee Arrangement, (i) entered into or amended any employment,
bonus, severance or retirement Contract other than with employees (other than the Unitholders) in the ordinary course of business,
(j) made or revoked any election relating to Taxes, (k) changed any methods of reporting income or deductions for U.S. federal
income tax purposes, (l) made any capital expenditures, individually or in the aggregate, in excess of $10,000, (m) suffered any
damage, destruction or loss (whether or not covered by insurance) to any of its material assets, (n) had any officer or key employee
resign or terminate employment, or (o) settled or compromised any pending or threatened suit, action, proceeding or, other than
in the ordinary course of business, claim.

 

Section
2.9 Compliance with Law. The Company is, and has been for the past three (3) years, in compliance in all material respects
with all Laws applicable to it or any of its businesses, properties or assets, including, but not limited to, the federal Health
Insurance Portability and Accountability Act of 1996 (HIPAA) and all Missouri state medical practice acts and regulations of the
state board of medical examiners and state board of nursing. The Company has not received notice from any Governmental Entity
of any violation of any provision of any applicable Law that remains unresolved.

 

Section
2.10 Material Contracts.

 

(a)
Section 2.10(a) of the Company Disclosure Schedule sets forth a list of all Contracts that are material to the Company
to which it is a party or by which it or any of its properties or assets is bound, including (i) any employment Contract or other
Contract for services that is not terminable at will without liability for any penalty or severance payment, (ii) any Contract
involving annual payments or receipts by the Company of $50,000 or more with respect to any such Contract, (iii) any Contract
with each of the 15 largest customers and 10 largest suppliers of the Company, which largest customers and suppliers shall be
determined using revenues/payments by the Company during the year ended December 31, 2017 (respectively, the “Major Customers”
and the “Major Suppliers” and, collectively, the “Major Customers and Suppliers”), (iv)
any Contract containing an exclusivity provision that restricts any of the Company’s businesses or any Contract limiting
its freedom to compete in any line of business, in any geographic area or with any Person, (v) any Contract providing for the
borrowing or lending of money or any guarantee or, other than in the ordinary course of business, any indemnification of any third
party, and (vi) any partnership or joint venture agreement (collectively, the “Material Contracts”). The Company
has made available to Holdings true, correct and complete copies of all Material Contracts. The Company will not have any responsibilities,
obligations or liabilities, contractual or otherwise, arising under any change of control provision of any Contract as a result
of any of the Contemplated Transactions.

 

    	7

    	 

    

 

(b)
Each of the Material Contracts constitutes the valid, legally binding and enforceable obligation of the Company and, to the Knowledge
of the Company, each of the other parties thereto, except as may be limited by applicable Bankruptcy and Equity Principles. Each
Material Contract is in full force and effect.

 

(c)
Except as set forth in Section 2.10(c) of the Company Disclosure Schedule, the Company is not in breach or default in any
material respect, and no event has occurred that with notice or lapse of time or both would constitute such a breach or default
by the Company or permit termination, modification or acceleration, of or under any of the Material Contracts and, to the Knowledge
of the Company, no other party to any of the Material Contracts is in breach or default in any material respect, and no event
has occurred that with notice or lapse of time or both would constitute such a breach or default in any material respect by such
party, of or under any of the Material Contracts. The Company has not received a written notice or claim by any party to a Material
Contract in respect of any breach or default thereunder that remains unresolved.

 

(d)
Except as set forth in Section 2.10(d) of the Company Disclosure Schedule, the Company has not received written notice
of termination, cancellation, material reduction of services or non-renewal that is currently in effect with respect to any Material
Contract and, to the Knowledge of the Company, no other party to a Material Contract plans to terminate, cancel or not renew,
or materially reduce the services provided under, any such Material Contract.

 

Section
2.11 Permits. The Company has all material permits, licenses, certificates of authority and other authorizations from all
Governmental Entities necessary for the conduct of its business as presently conducted (the “Permits”) and
is in compliance in all material respects with the terms of its Permits. All such Permits are in full force and effect, and the
Company has not received written notice of any event, inquiry or proceeding that is reasonably likely to lead to the revocation,
amendment, failure to renew, limitation, suspension or restriction of any Permit.

 

    	8

    	 

    

 

Section
2.12 Litigation. Except as set forth in Section 2.12 of the Company Disclosure Schedule, there is no action, suit,
proceeding or investigation pending or, to the Knowledge of the Company, threatened against the Company or any of its properties
by or before any Governmental Entity. The Company is not subject to any outstanding injunction, writ, judgment, order or decree
of any Governmental Entity. There is no action, suit, proceeding or investigation pending or, to Knowledge of the Company, threatened
against any current or former officer, director, employee or consultant of any of the Company in his or her capacity as such.
There is no action, suit or proceeding pending or, to the Knowledge of the Company, threatened against the Company or the Unitholders
by or before any Governmental Entity that questions the validity of any of the Transaction Documents or any action to be taken
in connection with the consummation of any of the Contemplated Transactions or would otherwise prevent or materially delay the
consummation of any of the Contemplated Transactions.

 

Section
2.13 Taxes. Except as set forth in Section 2.13 of the Company Disclosure Schedule:

 

(a)
The Company has

 

(i)
duly and timely filed, or caused to be filed, in accordance with applicable Law, all material Company Tax Returns, each of which
is true, correct and complete in all material respects,

 

(ii)
duly and timely paid in full, or caused to be paid in full, all Company Taxes reflected on such Company Tax Returns, and

 

(iii)
properly accrued, in a manner that does not deviate in any material respect from GAAP, on its books and records a provision for
the payment of all Company Taxes that are due, are claimed to be due, or may or will become due with respect to any Tax period
(or portion thereof) ending on or before the Closing Date.

 

(b)
No extension of time to file a Company Tax Return, which Company Tax Return has not since been filed in accordance with applicable
Law, has been filed. There is no power of attorney in effect with respect or relating to any Company Tax or Company Tax Return.

 

(c)
No Company Tax Return has been filed, and no Company Tax has been determined, on a consolidated, combined, unitary or other similar
basis (including, but not limited to, a consolidated U.S. federal income tax return). There is no circumstance (including, but
not limited to, as a transferee or successor, under Code Section 6901 or Treasury Regulation Section 1.1502-6 (or similar provision
of applicable Law), as result of a Tax sharing agreement or other Contract or by operation of Law) under which the Company is
or may be liable for any Tax determined, in whole or in part, by taking into account any income, sale or asset of, or any activity
conducted by, any other Person.

 

(d)
The Company has complied in all material respects with all applicable Laws relating to the deposit, collection, withholding, payment
or remittance of any Tax (including, but not limited to, Code Section 3402 or similar provision of applicable Law).

 

    	9

    	 

    

 

(e)
There is no Encumbrance for any Tax upon any asset or property of the Company, except for any statutory lien for any Tax not yet
due.

 

(f)
No audit, action, assessment, examination, hearing, inquiry or investigation is pending or, to the Knowledge of the Company, threatened
with regard to the Company, any Company Tax or any Company Tax Return.

 

(g)
The statute of limitations for any audit, action, assessment, examination, hearing, inquiry or investigation relating to any Company
Tax or any Company Tax Return has not been modified, extended or waived.

 

(h)
Any material assessment, deficiency, adjustment or other similar item relating to any Company Tax or Company Tax Return has been
reported to all Governmental Entities in accordance with applicable Law.

 

(i)
No jurisdiction where no Company Tax Return has been filed or no Company Tax has been paid has made or threatened in writing to
make a claim for the payment of any Company Tax or the filing of any Company Tax Return.

 

(j)
The Company is not a party to any agreement with any Governmental Entity (including, but not limited to, any closing agreement
within the meaning of Code Section 7121 or any analogous provision of applicable Law).

 

(k)
The Company is not a party to any Contract that results or could reasonably be expected to result in any amount that is not deductible
under Code Section 280G or Code Section 404, or any similar provision of applicable Law.

 

(l)
The Company does not have any “tax-exempt bond-financed property” or “tax-exempt use property,” within
the meaning of Code Section 168(h) or any similar provision of applicable Law.

 

(m)
No asset of the Company is required to be treated as being owned by any other Person pursuant to any provision of applicable Law
(including, but not limited to, the “safe harbor” leasing provisions of Code Section 168(f)(8), as in effect prior
to the repeal of those “safe harbor” leasing provisions).

 

(n)
The Company is not and will not be required to include any item of income in, or exclude any item of deduction from, U.S. federal
taxable income for any Tax period (or portion thereof) ending after the Closing Date, as a result of a change in method of accounting,
any installment sale or open transaction, any prepaid amount, refund or credit.

 

(o)
The Company is not and has not been a beneficiary or otherwise participated in any reportable transaction within the meaning of
Treasury Regulation Section 1.6011-4(b)(1).

 

(p)
The Company has not distributed securities of another Person and has not had its securities distributed by another Person, in
a transaction that was purported or intended to be governed in whole or in part by Code Section 355 or Code Section 361.

 

    	10

    	 

    

 

(q)
No election under Code Section 338 or any similar provision of applicable Law has been made or required to be made by or with
respect to the Company.

 

Section
2.14 Title to Properties; Sufficiency of Assets.

 

(a)
Except as set forth on Section 2.14(a) of the Company Disclosure Schedule, the Company has good, valid and marketable title
to, or a valid leasehold or contractual interest in, all of the assets and properties (real and personal) which it owns or leases,
and such assets and properties are owned or leased by it free and clear of all Encumbrances. Section 2.14(a) of the Company
Disclosure Schedule contains a complete and correct list of all real property leased by the Company. The Company does not own
and has never owned any real property. True, correct and complete copies of all lease agreements, including all amendments and
modifications thereto, for all leased real property (the “Leases”) have been made available to Holdings. All
rents due under the Leases have been paid. The Company enjoys undisturbed possession of its leased real properties and is in compliance
in all material respects with the terms of the Leases, and all Leases are in full force and effect. Each Lease constitutes the
valid, legally binding and enforceable obligation of the Company and, to the Knowledge of the Company, each of the other parties
thereto, except as may be limited by applicable Bankruptcy and Equity Principles. No party to any Lease has given written notice
to the Company or made a claim in writing against the Company in respect of any breach or default thereunder.

 

(b)
All tangible personal property owned or leased by the Company is in good operating condition and repair, ordinary wear and tear
excepted and subject to routine maintenance, and is suitable and adequate for the uses for which it is being used. Except as set
forth on Section 2.14(b) of the Company Disclosure Schedule, the Company’s assets and properties (real, personal
and intangible) include all material tangible and intangible assets, properties and rights necessary to conduct its businesses
following the Closing Date in substantially the same manner as is currently conducted.

 

Section
2.15 Intellectual Property.

 

(a)
All Intellectual Property owned or used by the Company in the conduct of its business as currently conducted is referred to as
the “Company Intellectual Property.” Section 2.15(a) of the Company Disclosure Schedule identifies all
of the following Company Intellectual Property: (i) Patents and applications therefor, the number, issue date, title and priority
information for each country in which any such Patent has been issued, or the application number, date of filing, title and priority
information for each country in which any such Patent application is pending; (ii) registered and unregistered Trademarks (excluding
Internet domain names) and applications for registration of Trademarks, the registration or application number related thereto
(and, if applicable, the class of goods or the description of the goods or services covered thereby), the countries of filing
and the expiration date of each registration in each country in which a registration was issued; (iii) registered and unregistered
Copyrights and applications for registration of Copyrights, the registration number and registration date, or the application
number and application date, related thereto, and the countries of filing; and (iv) registered Internet domain names. All of the
Company Intellectual Property, the registrations and applications for registration of which are set forth on Section 2.15(a)
of the Company Disclosure Schedule, is valid and in full force and effect. To the Knowledge of the Company, all of the other
rights within the Company Intellectual Property are valid and subsisting. All filings for the Company Intellectual Property are
in good standing.

 

    	11

    	 

    

 

(b)
The Company owns and has good and valid title to the Company Intellectual Property, free and clear of all Encumbrances. The Company
Intellectual Property constitutes all of the Intellectual Property necessary for the Company to conduct its business as such business
is currently being conducted.

 

(c)
Except as set forth on Section 2.15(c) of the Company Disclosure Schedule, the Company does not license any Intellectual
Property (other than (i) widely available, commercial off-the-shelf third-party Software licensed to the Company on a non-exclusive
basis or (ii) any open source Software, in the case of clauses (i) and (ii), as to which the Company is in compliance with the
terms of the applicable license agreements and has made all payments required to be made thereunder) to or from any third party.

 

(d)
To the Knowledge of the Company, there is no unauthorized use, disclosure, infringement or misappropriation of any Company Intellectual
Property by any third party, including any current or former employee of the Company.

 

(e)
The Company has not received any notice or other communication (in writing or otherwise) of any actual, alleged, possible or potential
infringement, misappropriation or unlawful use of, and, to the Knowledge of the Company, the Company is not infringing, misappropriating
or making unlawful use of, any Intellectual Property owned by any third party. There are no actions, suits or proceedings that
are pending or, to the Knowledge of the Company, threatened against the Company with respect to any infringement, misappropriation
or unlawful use of any Intellectual Property owned or used by any third party.

 

Section
2.16 Insurance. The Company maintains policies of fire and casualty, liability and other forms of insurance, in such amounts,
with such deductibles, covering against such risks and losses and with such reputable insurers, as are customary for businesses
of a type and size, and with assets and properties, comparable to those of the businesses of the Company. Set forth on Section
2.16 of the Company Disclosure Schedule is a listing of each insurance policy maintained by the Company, setting forth the
issuers, amounts, deductibles and coverages for each, and a description of all material claims under any insurance policy maintained
by the Company at any time during the past three years. All such policies are in full force and effect and all premiums due and
payable thereon have been paid in full, and no notice of cancellation or termination has been received with respect to any such
policy which has not been replaced on substantially similar terms prior to the date of such cancellation. There are no pending
claims under any of such policies.

 

Section
2.17 Environmental Matters.

 

(a)
The operations of the Company are in compliance with, in all material respects, and have complied with, in all material respects,
all applicable Environmental Laws.

 

    	12

    	 

    

 

(b)
The Company does not have any material liability under any Environmental Law nor is it responsible for any material liability
of any other Person under any Environmental Law, whether by Contract, by operation of Law or otherwise

 

(c)
The Company has not received any written information request, notice or other communication from a Governmental Entity, and there
are no actions, suits, proceedings or investigations pending or, to the Knowledge of the Company, threatened against the Company,
relating to any violation, or alleged violation of, or liability under, any Environmental Law or relating to any Hazardous Materials.

 

(d)
For purposes of this Section 2.17, the following terms shall have the following meanings:

 

(i)
“Environmental Laws” means all U.S. federal, state and local Laws of any Governmental Entity relating to (A)
the generation, treatment, storage, disposal, use, handling, manufacturing, transportation or shipment of Hazardous Materials,
or (B) the environment or to emissions, discharges, releases or threatened releases of Hazardous Materials into the environment.

 

(ii)
“Hazardous Materials” means (A) petroleum and petroleum products, radioactive materials and friable asbestos;
and (B) chemicals and other materials and substances which are now defined as or included in the definition of “hazardous
substances,” “hazardous wastes,” “hazardous materials,” “extremely hazardous wastes,”
“restricted hazardous wastes,” “toxic substances,” or “toxic pollutants” under any Environmental
Law.

 

Section
2.18 Employee and Labor Matters. The Company is not a party to any collective bargaining or other labor union Contract
applicable to Persons employed by it, no collective bargaining agreement is being negotiated by the Company, and, to the Knowledge
of the Company, there are no activities or proceedings of any labor union to organize any of the employees of the Company. Except
as set forth in Section 2.18 of the Company Disclosure Schedule, (a) the Company is in compliance in all material respects
with all applicable Laws relating to employment and employment practices, wages, hours, occupational safety, health standards,
severance payments, equal opportunity, payment of social security, national insurance and other Taxes, and terms and conditions
of employment, (b) there are no charges with respect to or relating to the Company pending, or to the Knowledge of the Company,
threatened by or before any Governmental Entity responsible for the prevention of unlawful or discriminatory employment practices
or unfair labor practices, and (c) there is no strike, work stoppage, work slowdown, lockout, picketing, concerted refusal to
work overtime, or other similar labor activity pending or, to the Knowledge of the Company, threatened against or involving the
Company currently or within the last three years. All sums due for employee, consultant and independent contractor compensation
and benefits, including pension and severance benefits, and all vacation time owing to any employees of the Company have been
duly and adequately accrued on the accounting records of the Company. All individuals characterized and treated by the Company
as consultants or independent contractors are properly treated as independent contractors under all applicable Laws. All employees
of the Company classified as exempt under the Fair Labor Standards Act or applicable state and local wage and hour Laws are properly
classified.

 

    	13

    	 

    

 

Section
2.19 Employee Plans.

 

(a)
Section 2.19 of the Company Disclosure Schedule sets forth a true, correct and complete list of:

 

(i)
all “employee benefit plans,” as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as
amended (“ERISA”) with respect to which the Company has any obligation or liability, contingent or otherwise
(the “Benefit Plans”);

 

(ii)
all current directors, officers and employees of the Company; and

 

(iii)
all employment, consulting, termination, profit sharing, severance, change of control, individual compensation and indemnification
agreements, and all bonus and other incentive compensation, deferred compensation, salary continuation, disability, severance,
equity award, unit option, unit purchase, educational assistance, legal assistance, club membership, employee discount, employee
loan, credit union and vacation agreements, policies and arrangements under which the Company has any obligation or liability
(contingent or otherwise) in respect of any current or former officer, director, employee, consultant or contractor of the Company
(the “Employee Arrangements”).

 

(b)
In respect of each Benefit Plan and Employee Arrangement, a complete and correct copy of each of the following documents (if applicable)
has been made available to Holdings: (i) the most recent plan and related trust documents, and all amendments thereto; (ii) the
most recent summary plan description, and all related summaries of modifications thereto; (iii) the most recent Form 5500 (including
schedules and attachments); (iv) the most recent Internal Revenue Service (“IRS”) determination, opinion or
notification letter; and (v) each written Employee Arrangement, and all amendments thereto.

 

(c)
None of the Benefit Plans or Employee Arrangements is subject to Title IV of ERISA, constitutes a defined benefit retirement plan
or is a multiemployer plan described in Section 3(37) of ERISA, and the Company does not have any obligation or liability (contingent
or otherwise) in respect of any such plans.

 

(d)
The Benefit Plans and their related trusts intended to qualify under Sections 401 and 501(a) of the Code, respectively, have either
received a favorable determination, opinion or notification letter from the IRS with respect to each such Benefit Plan as to its
qualified status under the Code, or has remaining a period of time under applicable U.S. Treasury Regulations or IRS pronouncements
in which to apply for such a letter and make any amendments necessary to obtain a favorable determination as to the qualified
status of each such Benefit Plan.

 

(e)
All contributions and other payments required to have been made by the Company to or under any Benefit Plan or Employee Arrangement
by applicable Law or the terms of such Benefit Plan or Employee Arrangement (or any agreement relating thereto) have been timely
and properly made.

 

    	14

    	 

    

 

(f)
The Benefit Plans and Employee Arrangements have been maintained and administered in all material respects in accordance with
their terms and applicable Laws.

 

(g)
There are no pending or, to the Knowledge of the Company, threatened actions, claims, suits or proceedings against or relating
to any Benefit Plan or Employee Arrangement (other than routine benefit claims by persons entitled to benefits thereunder) and,
to the Knowledge of the Company, there are no facts or circumstances which could reasonably be expected to form the basis for
any of the foregoing.

 

(h)
The Company does not have any obligation or liability (contingent or otherwise) to provide post-retirement life insurance or health
benefits coverage for current or former officers, directors, employees, consultants or contractors except (i) as may be required
under Part 6 of Title I of ERISA, (ii) a medical expense reimbursement account plan pursuant to Section 125 of the Code, or (iii)
through the last day of the calendar month in which the participant terminates employment.

 

(i)
Neither the execution and delivery of any of the Transaction Documents nor the consummation of any of the Contemplated Transactions
will (i) result in any payment becoming due to any director, officer, employee, consultant or contractor (current, former or retired)
of the Company, (ii) increase any benefits under any Benefit Plan or Employee Arrangement or (iii) result in the acceleration
of the time of payment of, vesting of, or other rights in respect of any such benefits (except as which may be required by the
partial or full termination of any Benefit Plan intended to be qualified under Section 401 of the Code). No Benefit Plan or Employee
Arrangement in effect immediately prior to the Closing Date would result, individually or in the aggregate (including as a result
of this Agreement, any of the Transaction Documents or any of the Contemplated Transactions), in the payment of any “excess
parachute payment” within the meaning of Section 280G of the Code.

 

(j)
Each Benefit Plan or Employee Arrangement that is a non-qualified deferred compensation plan or arrangement subject to Section
409A of the Code has been operated and administered in good faith compliance with Section 409A of the Code from the period beginning
January 1, 2007, or the date such Benefit Plan or Employee Arrangement was established, whichever date is later, through the date
hereof.

 

(k)
The Company has made available to Holdings a true, complete and correct list of the following (if applicable) for each current
employee, consultant and contractor of the Company: base salary; any bonus obligations; immigration status; hire date; time-off
balance; and pay rate.

 

Section
2.20 Brokers and Finders. None of the Company, the Unitholders or any of their respective Representatives has employed
any investment banker, broker or finder or incurred any liability for any investment banking fees, brokerage fees, commissions
or finders’ fees in connection with any of the Contemplated Transactions for which Holdings would be liable.

 

    	15

    	 

    

 

Section
2.21 Absence of Questionable Payments. None of the Company or the Unitholders or, to the Knowledge of the Company, any
director, officer, employee, consultant or other Person acting on behalf of the Company has (a) used any Company funds for unlawful
contributions, payments, gifts or expenditures, or (b) made any unlawful expenditures of Company funds relating to political activity
to government officials or others. None of the Company or the Unitholders or, to the Knowledge of the Company, any director, officer,
employee, consultant or other Person acting on behalf of the Company has offered, paid or agreed to pay to any Person (including
any governmental official), or solicited, received or agreed to receive from any such Person, directly or indirectly, any unlawful
contributions, payments, gifts, expenditures, money or anything of value for the purpose or with the intent of (a) obtaining or
maintaining business for the Company, (b) facilitating the purchase or sale of any product or service, or (c) avoiding the imposition
of any fine or penalty.

 

Section
2.22 Bank Accounts; Powers of Attorney. Section 2.22 of the Company Disclosure Schedule sets forth a true, complete
and correct list showing: (a) all banks in which the Company maintains a bank account or safe deposit box (collectively, “Bank
Accounts”), together with, as to each such Bank Account, the type of account, account number and the names of all signatories
thereof and, with respect to each such safe deposit box, if any, the number thereof and the names of all Persons having access
thereto; and (b) the names of all Persons holding powers of attorney from the Company, true, complete and correct copies of which
have been made available to Holdings.

 

Section
2.23 Customers and Suppliers. There are no disputes between the Company, on the one hand, and any of the Major Customers
and Suppliers, on the other hand, that relate to the operation of the business of the Company. Since December 31, 2016, none of
the Major Customers and Suppliers has terminated, cancelled, not renewed or materially reduced, or notified the Company in writing
of its intention to terminate, cancel, not renew or materially reduce, its relationship with the Company.

 

Section
2.24 Accounts Receivable. Except as set forth in Section 2.24 of the Company Disclosure Schedule, all accounts receivable
of the Company have arisen from bona fide transactions in the ordinary course of business, are valid and enforceable, are collectible
within 90 days in amounts not less than the amounts thereof carried on the books of the Company (except to the extent of the allowance
for doubtful accounts shown on the Company Financials), and are not subject to set-off or counterclaim. Any allowances that the
Company has established for doubtful accounts have been established on a basis consistent with past practice and do not deviate
in any material respect from GAAP.

 

Section
2.25 Certain Transactions. Except as set forth on Section 2.25 of the Company Disclosure Schedule, none of the Unitholders,
officers, directors or employees of the Company, or any of their respective Affiliates or any member of any such Person’s
immediate family (for this purpose, “immediate family” means such Person’s spouse, parents, children and siblings),
is presently a party to any Contract or transaction with the Company, including any Contract (i) providing for the furnishing
of services by, (ii) providing for the rental of real or personal property from, or (iii) otherwise requiring payments to (other
than for services in the foregoing capacities) any such Person or any corporation, partnership, trust or other entity in which
any such Person has a substantial interest as a Unitholders, officer, director, trustee or partner.

 

    	16

    	 

    

 

Section
2.26 No Other Representations or Warranties. Except for the representations and warranties contained in this Article II,
none of the Company, the Unitholders or any other Person makes any representations or warranties, and the Company and the Unitholders
hereby disclaim any other representations or warranties, whether made by either of them or any officer, director, employee, agent
or other Representative of the Company, the Unitholders or any other Person, with respect to this Agreement or any of the Contemplated
Transactions. For the avoidance of doubt, the foregoing is not intended to limit the ability of a Holdings Indemnified Party to
make a claim arising out, based upon or related to fraud and shall not be given any effect in the case of fraud.

 

Section
2.27 Disclosure. All factual information (taken as a whole) furnished by or on behalf of the Company or the Unitholders
in writing (including electronically) to Holdings or any of its Representatives for purposes of or in connection with any of the
Transactions Documents or any of the Contemplated Transactions is true and accurate in all material respects and not incomplete
by omitting to state any material fact necessary to make such information not misleading in light of the circumstances under which
such information was provided.

 

ARTICLE
III

REPRESENTATIONS
AND WARRANTIES OF HOLDINGS

 

Except
as set forth in Holdings’ disclosure schedule provided herewith (the “Holdings Disclosure Schedule”),
Holdings hereby represents and warrants to the Company and the Unitholders, as of the date hereof and as of the Closing Date,
except to the extent certain representations and warranties are limited to a certain date set forth in the applicable Section,
as follows:

 

Section
3.1 Corporate Organization, Etc. Holdings is duly incorporated, validly existing and in good standing under the Laws of
the State of Delaware and has all requisite corporate power and authority to conduct its business as it is now being conducted
and to own, lease and operate its properties and assets.

 

Section
3.2 Authority Relative to this Agreement. Holdings has all requisite corporate power and authority to execute and deliver
the Transaction Documents to which it is a party, to perform its obligations thereunder and to consummate the Contemplated Transactions.
The execution and delivery of the Transaction Documents to which it is a party, the performance of its obligations thereunder
and the consummation of the Contemplated Transactions have been duly and validly authorized by all required corporate action on
the part of Holdings, and no other corporate or other proceedings on the part of Holdings are necessary to authorize the Transaction
Documents to which it is a party or to consummate the Contemplated Transactions. This Agreement has been, and each of the other
Transaction Documents to which it is a party will be, duly and validly executed and delivered by Holdings and, assuming this Agreement
has been, and each of the other Transaction Documents to which it is a party will be, duly authorized, executed and delivered
by the other parties thereto, this Agreement constitutes, and each of the other Transaction Documents to which it is a party will
constitute, a legal, valid and binding obligation of Holdings, enforceable against it in accordance with their respective terms,
except as limited by applicable Bankruptcy and Equity Principles.

 

    	17

    	 

    

 

Section
3.3 Capitalization of Holdings. The authorized capital stock of Holdings consists of _______ shares of the Holdings Shares
and _____ shares of preferred stock, par value $0.001 per share. There are ______ shares of the Holding Shares, and no shares
of preferred stock, issued and outstanding as of the date of this Agreement. Holdings has no outstanding stock options, warrants,
rights or commitments to issue Holdings Shares or other equity securities and no outstanding securities convertible into or exchangeable
for Holdings Shares or other equity securities. All outstanding shares of the Holdings Shares are validly issued and outstanding,
fully paid and nonassessable.

 

Section
3.4 Consents and Approvals; No Violations. None of the execution or delivery of any of the Transaction Documents by Holdings,
the performance by Holdings of any of its obligations thereunder, or the consummation of any of the Contemplated Transactions
by Holdings will (a) violate any provision of the organizational or governing documents of Holdings, (b) require it to obtain
or make any consent, waiver, approval, exemption, declaration, license, authorization or permit of, or registration or filing
with or notification to, any Governmental Entity, except for such consents, waivers, approvals, exemptions, declarations, licenses,
authorizations, permits, registrations, filings and notifications which are listed in Section 3.3 of the Holdings Disclosure
Schedule (the “Holdings Consents”), (c) require a consent under, result in a material violation or material
breach of, constitute (with or without notice or lapse of time or both) a material default (or give rise to any right of termination,
cancellation, amendment or acceleration or any obligation) under, or result in the creation of any Encumbrance on any of the properties
or assets of Holdings pursuant to, any of the terms, conditions or provisions of any material Contract to which Holdings is a
party or by which Holdings or any of its properties or assets is bound, or (d) violate any Law of any Governmental Entity applicable
to Holdings or by which Holdings or any of its properties or assets is bound.

 

Section
3.5 Litigation. There is no action, suit or proceeding pending or, to the Knowledge of Holdings, threatened against Holdings
by or before any Governmental Entity that questions the validity of any of the Transaction Documents or any action to be taken
in connection with the consummation of any of the Contemplated Transactions or would otherwise prevent or materially delay the
consummation of any of the Contemplated Transactions.

 

Section
3.6 Brokers and Finders. Holdings has not employed any investment banker, broker or finder or incurred any liability for
any investment banking fees, brokerage fees, commissions or finders’ fees in connection with any of the Contemplated Transactions
for which the Company or the Unitholders would be liable.

 

Section
3.7 Sufficient Funds. Holdings will have sufficient cash on hand to pay the Cash Consideration and consummate the Contemplated
Transactions at the Closing.

 

    	18

    	 

    

 

Section
3.8 Validity of Shares. The _______ shares of Holdings Shares to be issued at the Closing pursuant to Section 1.1(b) hereof,
when issued and delivered in accordance with the terms hereof, shall be duly and validly issued, fully paid and nonassessable.
Based in part on the representations and warranties of the Unitholders in this Agreement and assuming the accuracy thereof, the
issuance of the Holdings Shares at the Closing pursuant to Section 1.1(b) will be exempt from the registration and prospectus
delivery requirements of the Securities Act and from the qualification or registration requirements of any applicable state blue
sky or securities laws.

 

Section
3.9 No General Solicitation. In issuing the Holdings Shares hereunder, neither Holdings nor anyone acting on its behalf
has offered to sell the Holdings Shares by any form of general solicitation or advertising.

 

Section
3.10 No Other Representations or Warranties. Except for the representations and warranties contained in this Article III,
neither Holdings nor any other Person makes any representations or warranties, and Holdings hereby disclaims any other representations
or warranties, whether made by it or any officer, director, employee, agent or other Representative of Holdings or any other Person,
with respect to this Agreement or any of the Contemplated Transactions. For the avoidance of doubt, the foregoing is not intended
to limit the ability of a Unitholders Indemnified Party to make a claim arising out, based upon or related to fraud and shall
not be given any effect in the case of fraud.

 

ARTICLE
IV

COVENANTS

 

Section
4.1 Conduct of the Business of the Company Pending the Closing. Except as otherwise expressly provided by this Agreement
or with the prior written consent of Holdings, during the period between the date of this Agreement and the Closing, the Company
will, and the Unitholders will cause the Company to, conduct its business and operations in the ordinary and usual course of business,
in substantially the same manner as heretofore conducted, and use commercially reasonable efforts consistent therewith to preserve
intact its properties, assets and business organization, to keep available the services of its officers, employees, consultants
and contractors and to maintain its business relationships with customers, suppliers, distributors and others having commercially
beneficial business relationships with it. Without limiting the generality of the foregoing, the Company will not, and the Unitholders
will cause the Company not to, prior to the Closing, without the prior written consent of Holdings:

 

(a)
issue, sell or pledge, or authorize or propose the issuance, sale or pledge of, any (i) additional Units or other equity interests,
or securities convertible into or exchangeable for any such Units or interests, or any rights, warrants or options to acquire
any such Units or interests or other convertible or exchangeable securities, or (ii) other securities in respect of, in lieu of,
or in substitution for, any Units or other equity interests outstanding on the date hereof;

 

(b)
split, combine or reclassify any Units or other equity interests;

 

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(c)
declare or pay any dividend or distribution to any Person;

 

(d)
redeem, purchase or otherwise acquire any outstanding Units or other equity interests;

 

(e)
propose or adopt any amendment to any of its organizational or governing documents;

 

(f)
(i) incur or assume any long-term or short-term debt or issue any debt securities; (ii) assume, guarantee, endorse or otherwise
become liable or responsible (whether directly, contingently or otherwise) for the obligations of any other Person; (iii) make
any loans, advances or capital contributions to, or investments in, any other Person; (iv) pledge or otherwise encumber any Units
or other equity interests; (v) Transfer or permit to be Transferred any Units or other equity interests of the Company; or (vi)
mortgage or pledge any of its assets, tangible or intangible, or create or suffer to exist any Encumbrance thereupon;

 

(g)
(i) increase in any manner the rate or terms of compensation or benefits of any of its directors, officers, employees, consultants
or contractors, except for increases to employees (other than officers), consultants or contractors made in the ordinary course
of business consistent with past practice, (ii) pay or agree to pay any pension, retirement allowance or other benefit not required
or permitted by any existing Benefit Plan or Employee Arrangement to any director, officer, employee, consultant or contractor,
whether past or present, or (iii) adopt, enter into, terminate or amend any Benefit Plan or Employee Arrangement;

 

(h)
acquire, sell, lease or dispose of any assets outside the ordinary and usual course of business consistent with past practice;

 

(i)
acquire (by merger, consolidation or acquisition of securities or assets) any corporation, partnership or other business organization
or entity or division thereof or any equity interest therein;

 

(j)
settle or compromise any pending or threatened suit, action, proceeding or, other than in the ordinary course of business consistent
with past practice, claim;

 

(k)
fail to comply in any material respect with any Law or Permit applicable to it or any of its assets or allow any Permit to lapse;

 

(l)
sell, dispose of, permit to lapse or license any rights to any material Intellectual Property;

 

(m)
change any of its banking or safe deposit arrangements;

 

(n)
fail to maintain its books, accounts and records in the ordinary course on a basis consistent with prior years or make any change
in the accounting principles, methods or practices used by it;

 

    	20

    	 

    

 

(o)
amend, modify, waive any material provision of or terminate any Material Contract or enter into any Contract which, if entered
into prior to the date hereof, would have been a Material Contract;

 

(p)
make any capital expenditures in excess of $5,000 in the aggregate;

 

(q)
satisfy, discharge, waive or settle any liabilities, other than in the ordinary course of business consistent with past practice;

 

(r)
(i) fail to timely file any Tax Return that is due, (ii) file any amended Tax Return or claim for refund, (iii) consent to any
extension or waiver of the statute of limitations period applicable to any Tax claim or assessment, (iv) make any Tax election,
or (v) settle or compromise any Tax liability; or

 

(s)
take, propose to take, or agree in writing or otherwise to take any of the actions described in this Section 4.1 or any action
that would make any of the representations or warranties contained in this Agreement untrue, incomplete or incorrect in any material
respect.

 

Section
4.2 Access to Information. From the date of this Agreement to the Closing, the Company will (a) give Holdings and its authorized
Representatives reasonable access to all personnel, books, records, Contracts, customers, offices and other facilities and properties
of the Company, (b) permit Holdings and its authorized Representatives to make such inspections thereof as Holdings may reasonably
request and (c) cause the officers and employees of the Company to furnish Holdings with such financial and operating data and
other information with respect to the business and operations of the Company as Holdings may from time to time reasonably request;
provided, however, that all access under this Section 4.2 shall be conducted at a reasonable time, during normal
business hours, on reasonable advance notice and in such a manner as not to interfere unreasonably with the operation of the business
of the Company. Holdings shall be permitted to contact customers of the Company regarding such customers’ business relationships
with the Company, and the Company will cooperate with Holdings in facilitating such contacts with its customers. No investigation
under this Section 4.2 shall affect or be deemed to modify any of the representations or warranties made by the Company or the
Unitholders in this Agreement.

 

Section
4.3 Disclosure Supplements. From time to time prior to the Closing, the Company will supplement or amend the Company Disclosure
Schedule with respect to any matter hereafter arising or of which the Company or the Unitholders becomes aware after the date
hereof which, if existing, occurring or known at or prior to the date of this Agreement, would have been required to be set forth
or described in the Company Disclosure Schedule or which is necessary to complete or correct any information in the Company Disclosure
Schedule or in any representation or warranty which has been rendered inaccurate thereby. No such supplement or amendment shall
be given effect for purposes of determining the satisfaction of the conditions set forth in Article VI hereof.

 

Section
4.4 Consents and Approvals. Each of the parties hereto shall use its commercially reasonable efforts to obtain as promptly
as practicable all consents, waivers, approvals, exemptions, licenses and authorizations required to be obtained from any Person
or Governmental Entity in connection with the consummation of any of the Contemplated Transactions; provided, however,
that no party is required to make any payment to any Person or Governmental Entity to obtain any consents, waivers, approvals,
exemptions, licenses or authorizations.

 

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Section
4.5 Filings. Promptly after the execution of this Agreement, each of the parties hereto shall prepare and make or cause
to be made any required filings, registrations, submissions and notifications under the Laws of any jurisdiction to the extent
necessary to consummate any of the Contemplated Transactions.

 

Section
4.6 Further Assurances.

 

(a)
Upon the terms and subject to the conditions herein provided, each of the parties hereto agrees to use its commercially reasonable
efforts to take or cause to be taken all actions, and to do or cause to be done, and to assist and cooperate with the other parties
hereto in doing, all things necessary, proper or advisable to consummate and make effective, in the most expeditious manner practicable,
the Contemplated Transactions.

 

(b)
The Company and the Unitholders will use their commercially reasonable efforts to have employees of the Company identified by
Holdings, if any, execute and deliver at will employment letters with the Company on terms and conditions acceptable to Holdings.

 

ARTICLE
V

ADDITIONAL
AGREEMENTS

 

Section
5.1 Acquisition Proposals. Neither the Company nor the Unitholders will, nor will either of them authorize or permit any
officer, director, employee, consultant or contractor or any investment banker, attorney, accountant or other agent or Representative
of the Company or the Unitholders acting on either of their behalf to, directly or indirectly, (a) solicit, initiate or intentionally
encourage the submission of any Acquisition Proposal or (b) participate in any discussions or negotiations regarding, or furnish
to any Person any information in respect of, or take any other action to facilitate, any Acquisition Proposal or any inquiries
or the making of any proposal that constitutes, or may reasonably be expected to lead to, any Acquisition Proposal. Immediately
after the execution and delivery of this Agreement, each of the Company and the Unitholders will, and will cause their respective
officers, directors, employees, investment bankers, attorneys, accountants and other agents and Representatives to, cease and
terminate any existing activities, discussions or negotiations with any parties conducted heretofore in respect of any possible
Acquisition Proposal and will promptly inform Holdings of the receipt of any subsequent Acquisition Proposal. Each of the Company
and the Unitholders will take all necessary steps to promptly inform the individuals or entities referred to in the first sentence
of this Section 5.1 of the obligations undertaken in this Section 5.1. “Acquisition Proposal” means an inquiry,
offer or proposal regarding any of the following (other than the Contemplated Transactions) involving the Company: (i) any merger,
consolidation, share exchange, recapitalization, business combination or other similar transaction; (ii) any sale of Units or
other equity interests or securities, (iii) any sale, lease, exchange, mortgage, pledge, Transfer or other disposition of all
or any material portion of its assets in a single transaction or series of transactions; or (iv) any public announcement of a
proposal, plan or intention to do any of the foregoing or any agreement to engage in any of the foregoing.

 

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Section
5.2 Public Announcements. Each of Holdings, on the one hand, and the Company and the Unitholders, on the other hand, will
consult with one another before issuing any press release or otherwise making any public statements in respect of any of the Contemplated
Transactions, including the Unit Purchase, and will not issue any such press release or make any such public statement without
the prior written consent of the other party; provided, however, that any party may at any time make disclosures
regarding the Contemplated Transactions if it is advised by legal counsel that such disclosure is required under applicable Law
or by a Governmental Entity, in which case the disclosing party will consult with the other parties hereto prior to such disclosure.

 

Section
5.3 Indemnification.

 

(a)
Indemnification by the Unitholders. Subject to the other terms of this Section 5.3, the Unitholders will defend, indemnify
and hold harmless Holdings, its Affiliates and each of Holdings’ and its Affiliates’ respective Representatives (collectively,
the “Holdings Indemnified Parties”), from and against and in respect of any and all losses, liabilities, obligations,
claims, actions, damages, judgments, penalties, fines, settlements and expenses, including reasonable attorneys’ fees (collectively,
“Losses”), incurred by any of the Holdings Indemnified Parties arising out of, based upon or related to (i)
any inaccuracy or breach of any of the representations or warranties made by the Company and/or the Unitholders in this Agreement,
(ii) any breach of or failure to comply with any covenant or agreement made by the Company and/or the Unitholders in this Agreement,
or (iii) any Company Taxes for any Tax period (or portion thereof) ending on or prior to the Closing Date, excluding 50% of any
Transfer Taxes incurred in connection with this Agreement or any of the Contemplated Transactions. “Transfer Taxes”
shall mean any transfer, documentary, sales, use, stamp, registration and other substantially similar Taxes and fees.

 

(b)
Indemnification by Holdings. Subject to the other terms of this Section 5.3, Holdings will defend, indemnify and hold harmless
the Unitholders, their respective Affiliates and each of the Unitholders’ and their respective Affiliates’ respective
Representatives (collectively, the “Unitholders Indemnified Parties”) from and against and in respect of any
and all Losses incurred by any of the Unitholders Indemnified Parties arising out of, based upon or related to (i) any inaccuracy
or breach of any of the representations or warranties made by Holdings in this Agreement, or (ii) any breach of or failure to
comply with any covenant or agreement made by Holdings in this Agreement.

 

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(c)
Indemnification Procedure.

 

(i)
The Person seeking indemnification under this Section 5.3 (the “Indemnified Party”) shall give to the party(ies)
from whom indemnification is sought (the “Indemnifying Party”) prompt written notice of any third-party claim
which may give rise to any indemnity obligation under this Section 5.3, and the Indemnifying Party will have the right to assume
the defense of any such claim through counsel of its own choosing, by so notifying the Indemnified Party within 10 days of receipt
of the Indemnified Party’s written notice; provided, however, that such counsel shall be reasonably satisfactory
to the Indemnified Party. Failure of the Indemnified Party to give prompt notice shall not affect the Indemnifying Party’s
indemnification obligations hereunder except to the extent the Indemnifying Party is materially prejudiced by such failure. If
the Indemnified Party desires to participate in any such defense assumed by the Indemnifying Party, it may do so at its sole cost
and expense; provided, however, that the Indemnified Party will be entitled to participate in any such defense with
separate counsel at the expense of the Indemnifying Party if, in the reasonable judgment of counsel to the Indemnified Party,
a conflict or potential conflict exists, or there are separate or additional defenses available to the Indemnified Party, that
would make such separate representation advisable. If the Indemnifying Party declines to assume any such defense or fails to diligently
pursue any such defense, then the Indemnifying Party will be liable for all reasonable costs and expenses incurred by the Indemnified
Party in connection with investigating, defending, settling and/or otherwise dealing with such claim, including reasonable fees
and disbursements of counsel. The parties hereto agree to cooperate with each other in connection with the defense of any such
claim. The Indemnifying Party will not, without the prior written consent of the Indemnified Party, settle, compromise, or consent
to the entry of any judgment with respect to any such claim, unless such settlement, compromise or judgment (A) does not result
in the imposition of a consent order, injunction or decree that would restrict the future activity or conduct of the Indemnified
Party or any Affiliate thereof, (B) does not involve any remedies other than monetary damages, and (C) includes an unconditional
release of the Indemnified Party and its Affiliates for all liability arising out of such claim and any related claim. The Indemnified
Party will not, without the prior written consent of the Indemnifying Party, which will not be unreasonably withheld, delayed
or conditioned, settle, compromise, or consent to the entry of any judgment with respect to any such claim.

 

(ii)
If an indemnification claim by any Indemnified Party is not disputed by the Indemnifying Party within 20 days after the Indemnifying
Party’s having received written notice thereof, or has been resolved by a Law of a Governmental Entity, by a settlement
of the indemnification claim in accordance with Section 5.3(c)(i), or by agreement of the Indemnified Party and the Indemnifying
Party (any of the foregoing, a “Resolution”), then (A) in the case of indemnification under Section 5.3(b),
Holdings will pay to the Unitholders Indemnified Party promptly following such Resolution an amount equal to the Losses of such
Unitholders Indemnified Party as set forth in such Resolution, or (B) in the case of indemnification under Section 5.3(a), Holdings
will offset against the Stock Consideration (by the forfeiture of Holdings Shares proportionally by the Unitholders) an amount
equal to the Losses of the Holdings Indemnified Party as set forth in such Resolution; provided, that if the amount of
such Losses exceeds the amounts to be due (and not previously offset as provided herein), then any such excess shall be the obligation
of the Unitholders and shall be paid to such Holdings Indemnified Party promptly following such Resolution.

 

(d)
Limitations.

 

(i)
The foregoing indemnification obligations under Section 5.3(a)(i) and 5.3(b)(i) will survive the consummation of the Unit Purchase
until the second anniversary of the Closing Date; provided, however, that the right to indemnification arising out
of, based upon or related to any inaccuracy or breach of any of the representations or warranties contained in Sections 2.1, 2.13,
2.19, 2.2, 2.3, 2.4, 2.5, 2.20, 3.1, 3.2, 3.3, 3.5 and the first sentence of Section 2.14(a) will survive until 60 days after
the expiration of the applicable statute of limitations, including any extensions thereof, and provided, further,
that claims first asserted in writing within the applicable survival period will not thereafter be barred.

 

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(ii)
Except for any indemnification claims arising out of, based upon or related to fraud or intentional misrepresentation, or any
indemnification claims arising out of, based upon or related to any of the Fundamental Representations (none of which are subject
to the limitations in this Section 5.3(d)(ii)), the Unitholders will have no liability to the Holdings Indemnified Parties for
indemnification claims brought under Section 5.3(a)(i) until the total amount of Losses in respect of indemnification claims under
such section exceeds $25,000 in the aggregate, and then the Holdings Indemnified Parties will be entitled to recover all such
amounts, including the original $25,000.

 

(iii)
Except for any indemnification claims arising out of, based upon or related to fraud or intentional misrepresentation, or any
indemnification claims arising out of, based upon or related to any of the Fundamental Representations (none of which will be
counted towards the Claims Cap), the maximum liability of the Unitholders for any and all Losses in respect of indemnification
claims brought under Section 5.3(a)(i) shall be limited to an amount equal to $____________ (the “Claims Cap”).

 

(iv)
Except for any indemnification claims arising out of, based upon or related to fraud or intentional misrepresentation, or any
indemnification claims arising out of, based upon or related to any of the Fundamental Representations (none of which are subject
to the limitations in this Section 5.3(d)(iv)), Holdings will have no liability to the Unitholders Indemnified Parties for indemnification
claims brought under Section 5.3(b)(i) until the total amount of Losses in respect of indemnification claims under such section
exceeds $25,000 in the aggregate, and then the Unitholders Indemnified Parties will be entitled to recover all such amounts, including
the original $25,000.

 

(v)
Except for any indemnification claims arising out of, based upon or related to fraud or intentional misrepresentation, or any
indemnification claims arising out of, based upon or related to any of the Fundamental Representations (none of which will be
counted towards the Claims Cap), the maximum liability of Holdings for any and all Losses in respect of indemnification claims
brought under Section 5.3(b)(i) shall be limited to an amount equal to the Claims Cap.

 

(vi)
The right of an Indemnified Party to indemnification hereunder will not be affected by any investigation conducted, or any knowledge
acquired (or capable or being acquired), at any time, whether before or after the execution and delivery of this Agreement or
the Closing Date, with respect to the accuracy of, or compliance with, any of the representations, warranties, covenants or agreements
set forth in this Agreement.

 

(vii)
For purposes of this Section 5.3, the terms “material” and “Company Material Adverse Effect”, as such
terms are used in any representation or warranty contained in Article II or III, shall be disregarded and, for purposes of this
Section 5.3, such representations and warranties shall be deemed to be not qualified by such terms.

 

    	25

    	 

    

 

(viii)
In calculating the amount of Losses recoverable pursuant to this Section 5.3, the amount of such Losses shall be reduced by (A)
any insurance proceeds actually received by the Indemnified Party from any unaffiliated insurance carrier offsetting the amount
of such Loss, net of any expenses incurred by the Indemnified Party in obtaining such insurance proceeds (including the payment
of a deductible with respect to the same and any premium increase directly attributable thereto), and (B) any recoveries actually
received by the Indemnified Party from other Persons pursuant to indemnification (or otherwise) with respect thereto, net of any
expenses incurred by the Indemnified Party in obtaining such payment. If any Losses for which indemnification payments have actually
been received by the Indemnifying Party hereunder are subsequently reduced by any insurance payment or other recovery actually
received from another Person, the Indemnified Party shall promptly remit the amount of such recovery to the applicable Indemnifying
Party (up to the amount of the payment by the applicable Indemnifying Party, after deducting therefrom the full amount of the
expenses incurred by such Indemnified Party (i) in procuring such recovery or (ii) in connection with such indemnification to
the extent required to be, but which have not been, paid or reimbursed).

 

(ix)
Following the Closing Date, the sole and exclusive remedy of the Holdings Indemnified Parties and the Unitholders Indemnified
Parties for any of the matters set forth in this Section 5.3 shall be indemnification in accordance with this Section 5.3, except
with respect to any claim arising out of, based upon or related to fraud or intentional misrepresentation, a breach of any of
the covenants set forth in Section 5.5 or as otherwise provided in Section 8.8. Each Indemnified Party entitled to indemnification
hereunder shall use commercially reasonable efforts to mitigate Losses for which it seeks indemnification hereunder, and the costs
and expenses incurred in connection with such mitigation efforts shall be deemed Losses for purposes of this Section 5.3.

 

(e)
The parties to this Agreement agree to treat any indemnity payment made pursuant to this Section 5.3 as an adjustment to the Total
Consideration for U.S. federal, state and local income tax purposes.

 

Section
5.4 Notification of Certain Matters. From the date of this Agreement to the Closing, each of the Company and the Unitholders
will give prompt notice to Holdings, and Holdings will give prompt notice to the Company and the Unitholders, of (a) the occurrence
or nonoccurrence of any event the occurrence or nonoccurrence of which would be likely to cause any representation or warranty
made by it or them contained in this Agreement to be untrue or inaccurate in any material respect at or prior to the Closing,
(b) any failure of the Company, the Unitholders or Holdings, as the case may be, to comply with or satisfy any covenant, condition
or agreement to be complied with or satisfied by it or them hereunder, (c) any notice or other communication received from any
third party alleging that the consent of such third party is or may be required in connection with any of the Contemplated Transactions,
or (d) in the case of the Company, any facts or circumstances that could reasonably be expected to result in a Company Material
Adverse Effect; provided, however, that the delivery of any notice pursuant to this Section 5.4 will not cure such breach
or non-compliance or limit or otherwise affect the rights, obligations or remedies available hereunder to the party receiving
such notice.

 

    	26

    	 

    

 

Section
5.5 Non-Competition. As a material inducement to Holdings’ consummation of the Contemplated Transactions, including
Holdings’ acquisition of the goodwill associated with the business of the Company, the Unitholders agree as follows:

 

(a)
The Unitholders will not, for a period of three (3) years following the Closing Date (computed by excluding from such computation
any time during which any of the Unitholders is found by a court of competent jurisdiction to have been in violation of any provision
of this Section 5.5(a)) (the “Restricted Period”), directly or indirectly, for itself or on behalf of or in
conjunction with any other Person, engage in, invest in or otherwise participate in (whether as an owner, employee, officer, director,
manager, consultant, independent contractor, agent, partner, advisor, or in any other capacity) any business that competes with
the business of the Company (such business, the “Restricted Business”) in any Restricted Area, or at any time
following the Closing Date make any use of any Company Intellectual Property other than in connection with the business of the
Company. Notwithstanding the above, the foregoing covenant shall not be deemed to prohibit the acquisition as a passive investment
of not more than one percent (1%) of the capital stock of a competing business whose stock is traded on a national securities
exchange or over-the-counter market.

 

(b)
The Unitholders will not, for a period of three (3) years following the Closing Date (computed by excluding from such computation
any time during which any of the Unitholders is found by a court of competent jurisdiction to have been in violation of any provision
of this Section 5.5(b)), directly or indirectly, for itself or on behalf of or in conjunction with any other Person, (i) solicit
or hire (or assist or encourage any other Person to solicit or hire), or otherwise interfere in any manner with the employment
or consulting relationship of, any Person who is an employee or consultant of any of Holdings, the Company or any of Holdings’
other subsidiaries (each, a “Restricted Entity”), other than by general public advertisement or other such
general solicitation not specifically targeted at any such Person, (ii) induce or request any customer of any Restricted Entity
to reduce, cancel or terminate its business with a Restricted Entity or otherwise interfere in any manner in any Restricted Entity’s
business relationship with any of its customers, or (iii) solicit or accept business from any customer of any Restricted Entity
in connection with a Restricted Business. For purposes of this Section 5.5(b), a Person shall be deemed to be an employee, consultant
or customer of any Restricted Entity if any such relationship existed or exists at any time (A) during the thirty (30) days prior
to the execution of this Agreement or (B) after the Closing Date and during the operation of this provision, and any such Person
shall cease to have the applicable status one year after the termination of any such relationship.

 

(c)
The Unitholders agree that the foregoing covenants are reasonable with respect to their duration, geographic area and scope, to
protect, among other things, Holdings’ acquisition of the goodwill associated with the business of the Company. If a judicial
or arbitral determination is made that any provision of this Section 5.5 constitutes an unreasonable or otherwise unenforceable
restriction against the Unitholders, then the provisions of this Section 5.5 shall be rendered void with respect to the Unitholders
only to the extent such judicial or arbitral determination finds such provisions to be unenforceable. In that regard, any judicial
or arbitral authority construing this Section 5.5 shall be empowered to sever any prohibited business activity, time period or
geographical area from the coverage of any such agreements and to apply the remaining provisions of this Section 5.5 to the remaining
business activities, time periods and/or geographical areas not so severed. Moreover, in the event that any provision, or the
application thereof, of this Section 5.5 is determined not to be specifically enforceable, Holdings shall nevertheless be entitled
to recover monetary damages as a result of the breach of such agreement.

 

    	27

    	 

    

 

(d)
The Unitholders acknowledge that they have carefully read and considered the provisions of this Section 5.5. The Unitholders acknowledge
that they have received and will receive sufficient consideration and other benefits to justify the restrictions in this Section
5.5. The Unitholders also acknowledge and understand that these restrictions are reasonably necessary to protect interests of
Holdings, including protection of the goodwill acquired, and the Unitholders acknowledge that such restrictions will not prevent
them from conducting businesses that are not included in the Restricted Business set forth in this Section 5.5 during the periods
covered by the restrictive covenants set forth in this Section 5.5. The Unitholders also acknowledge that the Contemplated Transactions
constitute full and adequate consideration for the execution and enforceability of the restrictions set forth in this Section
5.5.

 

Section
5.6 Tax Covenants.

 

(a)
To the extent permitted under applicable Law, the Company and the Unitholders shall close or terminate (or cause to be closed
or terminated), as of the close of business on the Closing Date, each Tax period relating to any Company Tax or Company Tax Return.

 

(b)
To the extent not filed prior hereto, the Unitholders will prepare or cause to be prepared, in accordance with applicable Law
and consistent with past practice of the Company, each Company Tax Return for each Pre-Closing Period. At least twenty (20) days
prior to the date on which a Company Tax Return for a Pre-Closing Period is due (after taking into account any valid extension),
the Unitholders will deliver such Company Tax Return to Holdings. No later than five (5) days prior to the date on which a Company
Tax Return for a Pre-Closing Period is due (after taking into account any valid extension), Holdings may make reasonable changes
and revisions to such Company Tax Return. The Unitholders will cooperate fully in making any reasonable changes and revisions
to any Company Tax Return for a Pre-Closing Period. At least three (3) days prior to the date on which a Company Tax Return (as
reasonably revised by Holdings) for a Pre-Closing Period is due (after taking into account any valid extension), the Unitholders
will pay to Holdings an amount equal to any Company Tax due with respect to such Company Tax Return, and Holdings will file such
Company Tax Return.

 

(c)
Holdings will prepare and file each Company Tax Return for any Post-Closing Period or any Straddle Period in accordance with applicable
Law. At least twenty (20) days prior to the date on which a Company Tax Return for a Straddle Period is due (after taking into
account any valid extension), Holdings will deliver such Company Tax Return to the Unitholders. No later than five (5) days prior
to the date on which a Company Tax Return for any Straddle Period is due (after taking into account any valid extension), the
Unitholders may make reasonable changes and revisions to such Company Tax Return. Holdings will cooperate fully in making any
reasonable changes and revisions to any Company Tax Return for any Straddle Period. At least three (3) days prior to the date
on which such Company Tax Return (as reasonably revised by the Unitholders) for a Straddle Period is due (after taking into account
any valid extension), the Unitholders will pay to Holdings an amount equal to the Company Tax on such Company Tax Return to the
extent such Company Tax relates, as determined under Section 5.6(d), to the portion of such Straddle Period ending on and including
the Closing Date.

 

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(d)
In the case of a Company Tax payable for a Straddle Period, the portion of such Company Tax that relates to the portion of the
Straddle Period ending on the Closing Date will (i) in the case of a Tax other than a Tax based upon or related to income, employment,
sales or other transactions, franchise or receipts, be deemed to be the amount of such Tax for the entire Straddle Period multiplied
by a fraction the numerator of which is the number of days in the portion of the Straddle Period ending on the Closing Date and
the denominator of which is the number of all of the days in the Straddle Period; and (ii) in the case of a Tax based upon or
related to income, employment, sales or other transactions, franchise or receipts, be deemed equal to the amount that would be
payable if the Straddle Period ended on the Closing Date and such Tax was based on an interim closing of the books as of the close
of business on the Closing Date.

 

(e)
Each party will promptly forward to the others a copy of all written communications from any Governmental Entity relating to any
Company Tax or Company Tax Return for a Pre-Closing Period or Straddle Period. Upon reasonable request, each party will make available
to the others all information, records and other documents relating to any Company Tax or any Company Tax Return for a Pre-Closing
Period or Straddle Period. The parties will preserve all information, records and other documents relating to a Company Tax or
a Company Tax Return for a Pre-Closing Period or Straddle Period until the date that is six (6) months after the expiration of
the statute of limitations applicable to the Company Tax or the Company Tax Return. Prior to transferring, destroying or discarding
any information, records or documents relating to any Company Tax or any Company Tax Return for a Pre-Closing Period or Straddle
Period, the Unitholders will give to Holdings reasonable written notice and, to the extent Holdings so requests, the Unitholders
will permit Holdings to take possession of all such information, records and documents. In addition, the parties will cooperate
with each other in connection with all matters relating to the preparation of any Company Tax Return or the payment of any Company
Tax for a Pre-Closing Period or Straddle Period and in connection with any audit, action, suit, claim or proceeding relating to
any such Company Tax or Company Tax Return, and Holdings will have the right to control any such audit, action, suit, claim or
proceeding. Nothing in this Section 5.6(e) will affect or limit any indemnity or similar provision or any representations, warranties
or obligations of any of the parties. Each party will bear its own costs and expenses in complying with the provisions of this
Section 5.6(e).

 

(f)
Holdings and the Unitholders shall each be liable for and each shall pay when due fifty percent (50%) of all Transfer Taxes incurred
in connection with this Agreement or any of the Contemplated Transactions. The party required by any applicable Law to file a
Tax Return or other documentation with respect to such Transfer Taxes shall do so within the time period prescribed by Law, and
the other party shall promptly reimburse such party for any Transfer Taxes for which the other party is responsible upon receipt
of notice that such Transfer Taxes are payable. To the extent permitted by any applicable Law, the parties hereto shall cooperate
in taking reasonable steps to minimize any Transfer Taxes.

 

    	29

    	 

    

 

(g)
The Unitholders will not make or request a refund of any Company Tax or with respect to any Company Tax Return or amend any Company
Tax Return, unless Holdings, in its reasonable discretion, consents in writing thereto. Holdings will not be obligated to seek
or request any refund of any Company Tax or amend any Company Tax Return, unless Holdings is reimbursed for out-of-pocket costs
incurred in preparing such Tax Return and Holdings determines in its reasonable discretion that neither Holdings nor any of its
subsidiaries will be adversely impacted by filing such Tax Return.

 

(h)
Any Tax sharing or similar agreement with respect to or involving the Company will be terminated as of the Closing Date, without
liability to the Company, and will have no further effect for any year (whether the current year, a future year or a past year).
Any amounts payable under any Tax sharing or similar agreement will be cancelled as of the Closing Date, without any liability
to the Company.

 

Section
5.7 Retention Agreements. Retention Agreements shall be executed at, and shall be a condition precedent for, Closing for
each of Doug Bouldin and Sandra Miller (the “Employee Unitholders”) Under their Retention Agreements, the form
of which is attached as Exhibit A hereto, the Employee Unitholders shall be entitled to receive a base salary. The Retention
Agreements shall have a three (3) year term and provide for other terms customary for retention arrangements of other Holdings
management; the final terms of which will be mutually agreed upon by both Holdings and each of the Employee Unitholders. No rights
to employment will exist unless and until the Retention Agreements are executed and delivered.

 

 

 

ARTICLE
VI

CONDITIONS
TO CONSUMMATION OF THE UNIT PURCHASE

 

Section
6.1 Conditions to Each Party’s Obligations to Effect the Unit Purchase. The respective obligations of each party
to consummate the Contemplated Transactions are subject to the fulfillment at or prior to the Closing of each of the following
conditions, any or all of which may be waived in writing in whole or in part by the party being benefited thereby, to the extent
permitted by applicable Law:

 

(a)
Holdings, the Company and the Unitholders shall have timely obtained from each Governmental Entity all authorizations, approvals,
licenses, permits, waivers and consents necessary for consummation of any of the Contemplated Transactions, as determined by Holdings.

 

(b)
There shall not be in effect any Law of any Governmental Entity of competent jurisdiction restraining, enjoining, making illegal
or otherwise preventing or prohibiting consummation of any of the Contemplated Transactions, or imposing any limitation on the
operation or conduct of the business of the Company or Holdings after the Closing, and no Governmental Entity shall have instituted
or threatened to institute any proceeding seeking any such Law.

 

    	30

    	 

    

 

(c)
No action, suit or proceeding shall have been instituted or threatened against any of the parties hereto seeking to restrain,
materially delay or prohibit, or to obtain substantial damages or other injunctive or other equitable relief with respect to,
the consummation of any of the Contemplated Transactions.

 

Section
6.2 Conditions to the Obligation of Holdings. The obligation of Holdings to consummate the Contemplated Transactions is
subject to the fulfillment at or prior to the Closing of each of the following additional conditions, any or all of which may
be waived in writing in whole or part by Holdings to the extent permitted by applicable Law:

 

(a)
The representations and warranties of the Company and of the Unitholders contained herein qualified as to materiality or Company
Material Adverse Effect shall be true and correct in all respects and those not so qualified shall be true and correct in all
material respects as of the date hereof and at and as of the Closing Date as though such representations and warranties were made
at and as of such date (except for representations and warranties made as of a specified date, which shall speak only as of the
specified date).

 

(b)
Each of the Company and the Unitholders shall have performed or complied with in all material respects all agreements, covenants
and conditions contained herein required to be performed or complied with by it or them prior to or at the time of the Closing.

 

(c)
Since December 31, 2016, there shall not have been any event, change, effect, occurrence or circumstance that, individually or
in the aggregate, has had or would reasonably be expected to have a Company Material Adverse Effect

 

(d)
No action, suit or proceeding shall be pending or threatened against the Company.

 

(e)
The Company and the Unitholders shall have delivered to Holdings certificates, dated the date of the Closing, signed by an executive
officer of the Company and by the Unitholders, certifying as to the fulfillment of the conditions specified in Section 6.2(a),
Section 6.2(b), Section 6.2(c) and Section 6.2(d).

 

(f)
The Company Consents and the Holdings Consents shall have been obtained.

 

(g)
Holdings shall have completed its due diligence investigation of the Company to the satisfaction of Holdings in its sole discretion.

 

(h)
The Company shall have delivered to Holdings an income statement for the period of June 1, 2017 through May 31, 2018, which income
statement shall be complete and correct and shall not deviate in any material respect from GAAP.

 

(i)
The Retention Agreements shall have been executed and delivered by the Company and the Employee Unitholders.

 

    	31

    	 

    

 

(j)
All proceedings of the Company and the Unitholders that are required in connection with the Contemplated Transactions shall be
reasonably satisfactory in form and substance to Holdings and its counsel, and Holdings and its counsel shall have received such
evidence of any such proceedings, good standing certificates (if applicable), organizational and governing documents, certified
if requested, as may be reasonably requested and is customary in transactions such as this one.

 

(k)
The Unitholders shall have executed and delivered to Holdings a lock-up agreement, in customary form, with respect to restricting
the sale or otherwise transfer of the Holding Shares for 180 days from the date of a prospectus for an initial public offering
by Holdings, as and to the extent requested by the underwriter of such public offering.

 

(l)
All agreements set forth on Section 6.2(l) of the Company Disclosure Schedule shall have been terminated, without any further
liability or obligation of any of the Company thereunder, and shall cease to be of force or effect.

 

Section
6.3 Conditions to the Obligations of the Company and the Unitholders. The respective obligations of the Company and the
Unitholders to consummate the Contemplated Transactions are subject to the fulfillment at or prior to the Closing of each of the
following additional conditions, any or all of which may be waived in writing in whole or in part by the Company or the Unitholders
to the extent permitted by applicable Law:

 

(a)
The representations and warranties of Holdings contained herein qualified as to materiality shall be true and correct in all respects
and those not so qualified shall be true and correct in all material respects as of the date hereof and at and as of the Closing
Date as though such representations and warranties were made at and as of such date (except for representations and warranties
made as of a specified date, which shall speak only as of the specified date).

 

(b)
Holdings shall have performed or complied with in all material respects all agreements, covenants and conditions contained herein
required to be performed or complied with by it prior to or at the time of the Closing.

 

(c)
Holdings shall have delivered to the Unitholders a certificate, dated the Closing Date, signed by an executive officer of Holdings,
certifying as to the fulfillment of the conditions specified in Section 6.3(a) and Section 6.3(b).

 

Section
6.4 Closing Deliveries. At Closing, the following documents will be delivered, or caused to be delivered, to the parties
as set forth in each subsection:

 

(a)
The Employee Unitholders shall deliver to Holdings the Retention Agreements.

 

(b)
Holdings shall deliver to the Unitholders stock certificates evidencing the Stock Consideration.

 

    	32

    	 

    

 

ARTICLE
VII

TERMINATION

 

Section
7.1 Termination by Mutual Agreement. This Agreement may be terminated and the Unit Purchase may be abandoned at any time
prior to the Closing, by mutual written consent of Holdings and the Unitholders.

 

Section
7.2 Termination by either Holdings or the Unitholders. This Agreement may be terminated and the Unit Purchase may be abandoned
at any time prior to the Closing by Holdings or the Unitholders if:

 

(a)
the Unit Purchase shall not have been consummated by December 1, 2018;

 

(b)
any Law permanently restraining, enjoining or otherwise prohibiting or preventing consummation of the Unit Purchase shall become
final and non-appealable; or

 

provided,
however, that the right to terminate this Agreement pursuant to this Section 7.2 shall not be available to any party (and
in the case of the Unitholders, including the Company) that has breached in any material respect its obligations under this Agreement
in any manner that shall have proximately contributed to the occurrence of the failure of the Unit Purchase to be consummated.

 

Section
7.3 Termination by the Unitholders. This Agreement may be terminated and the Unit Purchase may be abandoned at any time
prior to the Closing by the Unitholders, if any representation of Holdings contained in this Agreement shall have been inaccurate,
or Holdings shall have breached any representation, warranty, covenant or other agreement contained in this Agreement, in any
such event that would give rise to the failure of a condition set forth in Section 6.3(a) or (b) hereof, which inaccuracy or breach
cannot be or has not been cured within twenty (20) days after the giving of written notice by the Unitholders to Holdings thereof.

 

Section
7.4 Termination by Holdings. This Agreement may be terminated and the Unit Purchase may be abandoned at any time prior
to the Closing by Holdings, if any representation of the Company and/or the Unitholders contained in this Agreement shall have
been inaccurate, or the Company and/or the Unitholders shall have breached any representation, warranty, covenant or other agreement
contained in this Agreement, in any such event that would give rise to the failure of a condition set forth in Section 6.2(a)
or (b) hereof, which inaccuracy or breach cannot be or has not been cured within twenty (20) days after the giving of written
notice by Holdings to the Unitholders thereof.

 

Section
7.5 Effect of Termination and Abandonment. In the event of the termination of this Agreement and the abandonment of the
Unit Purchase pursuant to this Article VII, this Agreement (other than this Section 7.5, Section 5.2 and Article VIII) shall become
void and of no effect with no liability on the part of any party hereto (or of any of its directors, officers, employees, consultants,
contractors, agents, attorneys or other Representatives); provided, however, that no such termination shall relieve any
party hereto of any liability or damages resulting from any willful breach of this Agreement by such party.

 

    	33

    	 

    

 

ARTICLE
VIII

MISCELLANEOUS

 

Section
8.1 Entire Agreement; Assignment.

 

(a)
This Agreement (including the exhibits hereto, the Holdings Disclosure Schedule and the Company Disclosure Schedule) constitutes
the entire agreement among the parties hereto in respect of the subject matter hereof and supersede all other prior agreements
and understandings, both written and oral, among the parties in respect of the subject matter hereof.

 

(b)
Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by the Company or the Unitholders,
on the one hand, or Holdings, on the other hand, without the prior written consent of the other party(ies). Any assignment in
violation of the preceding sentence shall be void.

 

Section
8.2 Notices. All notices, requests, demands, instructions and other documents and communications to be given under this
Agreement shall be in writing and shall be deemed given (a) three (3) Business Days following sending by registered or certified
mail, postage prepaid, (b) when sent if sent by facsimile or email, provided that in the case of facsimile receipt is confirmed
and in the case of e-mail the e-mail is not returned with an undeliverable, delayed or similar message, (c) when delivered, if
delivered personally to the intended recipient, and (d) one Business Day following sending by overnight delivery via a nationally
recognized overnight courier service, and in each case, addressed to a party at the following address for such party:

 

	if
    to Holdings, to:	 	 
	 	 	IMAC
    Holdings Corp.
	 	 	2725
    James Sanders Blvd.
	 	 	Paducah,
    Kentucky 42001
	 	 	Attention:
    Mr. Jeff Ervin, Chief Executive Officer
	 	 	Facsimile:
    
	 	 	E-mail:
    jervin@imacrc.com
	 	 	 
	with
    a copy (which shall 	 	 
	not
    constitute notice) to:	 	Olshan
    Frome Wolosky LLP
	 	 	1325
    Avenue of the Americas, 15th Floor
	 	 	New
    York, New York 10019
	 	 	Attention:
    Spencer G. Feldman, Esq.
	 	 	Facsimile:
    (212) 451-2222
	 	 	Email:
    sfeldman@olshanlaw.com
	 	 	 
	if
    to the Company	 	 
	or
    the Unitholders, to:	 	IMAC
    of St. Louis LLC
	 	 	13353
    Olive Blvd.
	 	 	Chesterfield,
    Missouri 63017
	 	 	Attention:
    Legal Dept. Fax:
	 	 	Email:
    jeff@ozziesmithcenter.com

 

or
to such other address, email address or facsimile number as the party to whom notice is given shall have previously furnished
to the other parties in writing in the manner set forth above.

 

    	34

    	 

    

 

Section
8.3 Governing Law; Jurisdiction; WAIVER OF JURY TRIAL. This Agreement shall be governed by and construed in accordance
with the Laws of the State of Delaware, without giving effect to the choice of law principles thereof to the extent that the application
of the Laws of another jurisdiction would be required thereby. All actions, suits or proceedings arising out of or relating to
this Agreement or any of the other Transaction Documents shall be heard and determined exclusively in any Delaware state or federal
court. The parties hereto hereby (a) submit to the exclusive jurisdiction of any state or federal court sitting in Delaware for
the purpose of any action, suit or proceeding arising out of or relating to this Agreement or any of the other Transaction Documents,
and (b) irrevocably waive, and agree not to assert by way of motion, defense, or otherwise, in any such action, suit or proceeding,
any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune
from attachment or execution, that the action, suit or proceeding is brought in an inconvenient forum, that the venue of the action,
suit or proceeding is improper, or that this Agreement, any of the other Transaction Documents or any of the Contemplated Transactions
may not be enforced in or by any of the above-named courts. Each of the parties hereto agrees that a judgment in any such dispute
may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by Law. Each of the parties hereto
hereby consents to process being served by any party to this Agreement in any suit, action or proceeding by delivery of a copy
thereof in accordance with the provisions of Section 8.2. EACH PARTY HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO
THE FULLEST EXTENT IT MAY LEGALLY AND EFFECTIVELY DO SO, TRIAL BY JURY IN ANY SUIT, ACTION OR PROCEEDING ARISING HEREUNDER.

 

Section
8.4 Expenses. Except as otherwise provided by this Agreement, all fees and out-of-pocket expenses incurred in connection
with this Agreement or any of the other Transaction Documents or the consummation of any of the Contemplated Transactions shall
be paid by the party incurring the same.

 

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

 

Section
8.6 Parties in Interest. This Agreement shall be binding upon and inure solely to the benefit of each party hereto and
its successors and permitted assigns, and, except as provided in Section 5.3, nothing in this Agreement, express or implied, is
intended to or shall confer upon any other Person any rights, benefits or remedies of any nature whatsoever under or by reason
of this Agreement.

 

    	35

    	 

    

 

Section
8.7 Severability. The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of
any provision shall not affect the validity or enforceability of the other provisions hereof. If any provision of this Agreement,
or the application thereof to any Person or any circumstance, is invalid or unenforceable, (a) a suitable and equitable provision
shall be substituted therefor in order to carry out, so far as may be valid and enforceable, the intent and purpose of such invalid
or unenforceable provision and (b) the remainder of this Agreement and the application of such provision to other Persons or circumstances
shall not be affected by such invalidity or unenforceability, nor shall such invalidity or unenforceability affect the validity
or enforceability of such provision, or the application thereof, in any other jurisdiction.

 

Section
8.8 Specific Performance. Notwithstanding Section 5.3(d)(ix), the parties hereto agree that irreparable damage would occur
in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise
breached. It is accordingly agreed that the parties shall be entitled to seek an injunction or injunctions to prevent any breach
or threatened of this Agreement and to enforce specifically the terms and provisions of this Agreement, without the requirement
to post a bond or other security, this being in addition to any other remedy to which they are entitled at law or in equity.

 

Section
8.9 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original and
all of which together shall be considered one and the same agreement and shall become effective when one or more counterparts
have been signed by each of the parties hereto and delivered to the other parties hereto. Facsimile or .pdf signatures shall have
the same force and effect as original signatures.

 

Section
8.10 Interpretation.

 

(a)
The words “hereof,” “herein,” “herewith” and words of similar import shall, unless otherwise
stated, be construed to refer to this Agreement as a whole and not to any particular provision of this Agreement, and article,
section, paragraph, exhibit and schedule references are to the articles, sections, paragraphs, exhibits and schedules of this
Agreement unless otherwise specified. Whenever the words “include,” “includes” or “including”
are used in this Agreement, they shall be deemed to be followed by the words “without limitation.” All terms defined
in this Agreement shall have the defined meanings contained herein when used in any certificate or other document made or delivered
pursuant hereto unless otherwise defined therein. The definitions contained in this Agreement are applicable to the singular as
well as the plural forms of such terms and to the masculine as well as to the feminine and neuter genders of such terms. Any agreement,
instrument or statute defined or referred to herein or in any agreement or instrument that is referred to herein means such agreement,
instrument or statute as from time to time amended, qualified or supplemented, including (in the case of agreements and instruments)
by waiver or consent and (in the case of statutes) by succession of comparable successor statutes and all attachments thereto
and instruments incorporated therein. References to a Person are also to its successors and permitted assigns.

 

    	36

    	 

    

 

(b)
The phrases “the date of this Agreement,” “the date hereof,” and terms of similar import, unless the context
otherwise requires, shall be deemed to refer to the date set forth in the opening paragraph of this Agreement.

 

(c)
The parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question
of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties and no presumption
or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Agreement.

 

Section
8.11 Amendment and Modification; Waiver. This Agreement can be amended, supplemented or changed, and any provision hereof
can be waived, only by written instrument making specific reference to this Agreement signed by Holdings, the Company and the
Unitholders. No action taken pursuant to this Agreement, including any investigation by or on behalf of any party, shall be deemed
to constitute a waiver by the party taking such action of compliance with any representation, warranty, covenant or agreement
contained herein. The waiver by any party hereto of a breach of any provision of this Agreement shall not operate or be construed
as a further or continuing waiver of such breach or as a waiver of any other or subsequent breach. No failure on the part of any
party to exercise, and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver thereof, nor shall
any single or partial exercise of such right, power or remedy by such party preclude any other or further exercise thereof or
the exercise of any other right, power or remedy.

 

Section
8.12 Definitions. As used herein,

 

“Affiliate”
has the meaning given to it in Rule 12b-2 of Regulation 12B under the Exchange Act.

 

“Business
Day” means any day other than a Saturday, a Sunday or a day on which banks in the State of New York generally are closed
for regular banking business.

 

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

 

“Collections”
mean the gross selling price received by the Company from the sale of its regeneration-related services and associated products,
less (a) normal or customary trade, cash, prompt payment and/or quantity discounts, (b) refunds, returns, claims or allowances,
rebates and chargebacks, and (c) fees and commissions paid to third-party dealers, distributors and other selling agents (other
than employees of the Company). A regeneration-related service or associated product is considered sold hereunder when paid for,
if paid for before delivery, or when shipped or mailed or otherwise delivered. All sales shall be bona fide, arm’s-length
transactions.

 

“Company
Consents” means each of the consents, waivers, approvals, exemptions, declarations, licenses, authorizations, permits, registrations,
filings and notifications of or with each Governmental Entity or under or pursuant to each Contract listed in Section 2.5
of the Company Disclosure Schedule required to be made or obtained in connection with the execution or delivery of any of the
Transaction Documents by the Company or the Unitholders, the performance by the Company or the Unitholders of any of its or their
obligations thereunder, or the consummation of any of the Contemplated Transactions.

 

    	37

    	 

    

 

“Company
Material Adverse Effect” means any event, development, change, circumstance, effect, occurrence or condition that, either
individually or in the aggregate, (i) has caused or would reasonably be expected to cause a material adverse effect on the business,
operations, financial condition or results of operations of the Company, or (ii) prevents or materially impairs or delays the
ability, or would reasonably be expected to prevent or materially impair or delay the ability, of the Company or the Unitholders
to perform any of their respective obligations under any of the Transaction Documents or to consummate any of the Contemplated
Transactions.

 

“Company
Tax” means any Tax, if and to the extent that the Company is or may be potentially liable under applicable Law, under Contract
or on any other grounds (including, but not limited to, as a transferee or successor, under Code Section 6901 or Treasury Regulation
Section 1.1502-6 (or similar provision of applicable Law), as a result of any Tax sharing or other agreement, or by operation
of Law) for any such Tax.

 

“Company
Tax Return” means any Tax Return filed or required to be filed with any Governmental Entity, if, in any manner or to any
extent, relating to or inclusive of the Company or any Company Tax.

 

“Contemplated
Transactions” means the transactions contemplated by this Agreement and the other Transaction Documents, including the Unit
Purchase.

 

“Contract”
means any written or oral contract, agreement, license, lease, instrument or note that creates a legally binding obligation.

 

“Encumbrance”
means any lien, encumbrance, security interest, claim, charge, surety, mortgage, option, pledge, easement, limitation or restriction
(including on any right to vote or Transfer any asset or security) of any nature whatsoever.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“Fundamental
Representations” means the representations and warranties contained in Sections 2.1, 2.2, 2.3, 2.4, 2.5, 2.13, 2.19, 2.20,
3.1, 3.2, 3.3, 3.5 and the first sentence of Section 2.14(a).

 

“GAAP”
means United States generally accepted accounting principles applied on a consistent basis throughout the periods involved.

 

    	38

    	 

    

 

“Intellectual
Property” means all intellectual property rights arising from or in respect of the following: (i) all patents and applications
therefor, including continuations, divisionals, provisionals, continuations-in-part, or reissues of patent applications and patents
issuing thereon (collectively, “Patents”), (ii) all trademarks, service marks, trade names, service names,
brand names, trade dress rights, logos, slogans, Internet domain names and individual, entity and business names, together with
the goodwill associated with any of the foregoing, and all applications, registrations and renewals thereof (collectively, “Trademarks”),
(iii) copyrights and registrations and applications therefor, works of authorship and mask work rights (collectively, “Copyrights”),
(iv) all computer programs and software (including any and all software implementations of algorithms, models and methodologies,
whether in source code, object code or other form, but excluding off-the-shelf commercial or shrink-wrap software), databases
and compilations (including any and all data and collections of data), and all descriptions, flow-charts and other work product
used to design, plan, organize or develop any of the foregoing, screens, user interfaces, report formats, firmware, development
tools, templates, menus, buttons and icons, all technology supporting any of the foregoing, and all documentation, including user
manuals and other training documentation, related to any of the foregoing (collectively, “Software”), and (v)
all trade secrets, designs, formulae, algorithms, procedures, methods, techniques, ideas, know-how, research and development,
technical data, programs, specifications, processes, inventions (whether patentable or unpatentable and whether or not reduced
to practice), creations, improvements and other similar materials, and all recordings, graphs, drawings, reports, analyses and
other works of authorship, and other tangible embodiments of the foregoing, in any form, and all related technology.

 

“Knowledge”
means the actual knowledge, after reasonable inquiry, of (i) in the case of the Company, of each of the Unitholders, (ii) in the
case of the Unitholders, the Unitholders, and (ii) in the case of Holdings, Jeff Ervin and Anthony Bond.

 

“Law”
means any order, writ, injunction, decree, judgment, permit, license, ordinance, law, statute, rule, regulation, administrative
interpretation, directive or other requirement of any Governmental Entity.

 

“Person”
means an individual, corporation, limited liability company, partnership, association, trust, unincorporated organization, other
entity or group (as defined in the Exchange Act).

 

“Pre-Closing
Period” means any Tax period ending on or before the Closing Date.

 

“Post-Closing
Period” means any Tax period beginning after the Closing Date.

 

“Representative”
means, with respect to any Person, each of such Person’s Affiliates, directors, officers, employees, partners, members,
managers, consultants, advisors, accountants, attorneys, representatives and agents.

 

“Restricted
Area” means the States of Kentucky, Missouri, Tennessee and Texas.

 

“Retention
Agreements” mean the Retention Agreements between the Company and each of the Employee Unitholders in the form attached
hereto as Exhibit A.

 

“Straddle
Period” means any Tax period beginning before the Closing Date and ending after the Closing Date.

 

    	39

    	 

    

 

“Tax”
means any tax, charge, deficiency, duty, fee, levy, toll or other amount (including any net income, gross income, profits, gross
receipts, excise, property, sales, ad valorem, withholding, social security, retirement, excise, employment, unemployment, minimum,
alternative, add-on minimum, estimated, severance, stamp, occupation, environmental, premium, capital stock, disability, windfall
profits, use, service, net worth, payroll, franchise, license, gains, customs, transfer, recording, registration or other tax)
assessed or otherwise imposed by any Governmental Entity or under applicable Law, together with any interest, penalties or any
other additions or increases.

 

“Tax
Return” means mean any return, election, declaration, report, schedule, information return, document, information, opinion,
statement, or any amendment to any of the foregoing (including any consolidated, combined or unitary return and any related or
supporting information) with respect to Taxes.

 

“Transaction
Documents” means this Agreement and the Retention Agreements.

 

“Transfer”
means any sale, assignment, pledge, hypothecation or other disposition or Encumbrance.

 

“Treasury
Regulations” means the regulations promulgated under the Code.

 

[Signature
Page Follows]

 

    	40

    	 

    

 

IN
WITNESS WHEREOF, each of the parties has caused this Agreement to be duly executed on its behalf as of the date first above
written.

 

	 	IMAC
    HOLDINGS CORP. 
	 	 
	 	By:	/s/
                                         Jeff Ervin

	 	Name:	Jeff
    Ervin
	 	Title:	Chief
    Executive Officer

 

	 	IMAC
    of ST. LOUIS LLC
	 	 
	 	By:	/s/
                                         Jeff Ervin

	 	Name:	Jeff
    Ervin
	 	Title:	Chief
    Executive Officer

 

	 	THE
    UNITHOLDERS:
	 	 
	 	/s/
    Doug Bouldin
	 	Doug
    Bouldin
	 	 
	 	/s/
    Jon Ervin
	 	Jon
    Ervin
	 	 
	 	/s/
    Sandra Miller
	 	Sandra
    Miller
	 	 
	 	/s/
    Matt Wallis
	 	Matt
    Wallis

 

    	41WELLS FARGO & COMPANY 8-K

 

Exhibit
4.1

 

[Face
of Note]

 

Unless
this certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”),
to the Company or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the
name of Cede & Co. or in such other name as requested by an authorized representative of DTC (and any payment is made to Cede
& Co. or such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest
herein.

	CUSIP NO. 95001B6Y5	FACE AMOUNT:  $__________
	REGISTERED NO. ___	 

 

WELLS
FARGO & COMPANY

 

MEDIUM-TERM
NOTE, SERIES S

 

Due
Nine Months or More From Date of Issue

 

Principal
at Risk Securities Linked to the Lowest Performing of the S&P 500® Index, 

the Russell 2000®
Index and the Dow Jones Industrial Average®

due
September 18, 2023

 

WELLS
FARGO & COMPANY, a corporation duly organized and existing under the laws of the State of Delaware (hereinafter called the
“Company,” which term includes any successor corporation under the Indenture hereinafter referred to), for
value received, hereby promises to pay to CEDE & Co., or registered assigns, an amount equal to the Maturity Payment
Amount (as defined below) on the Stated Maturity Date (as defined below), unless this Security is redeemed prior to the Stated
Maturity Date as provided below under “Optional Redemption,” and to pay Contingent Coupon Payments (as defined below)
on the Face Amount of this Security to the extent provided herein on the Contingent Coupon Payment Dates specified herein at the
Applicable Contingent Coupon Rate (as defined below) until the earlier of the Stated Maturity Date and the Optional Redemption
Date (as defined below), if any. The “Initial Stated Maturity Date” shall be September 18, 2023. If the Final
Calculation Day (as defined below) is not postponed, the Initial Stated Maturity Date will be the “Stated Maturity Date.”
If the Final Calculation Day is postponed, the “Stated Maturity Date” shall be the later of (i) the Initial
Stated Maturity Date and (ii) three Business Days (as defined below) after the last Final Calculation Day as postponed.

“Face
Amount” shall mean, when used with respect to this Security, the amount set forth on the face of this Security as its
“Face Amount.”

    	 	 	 

    	 

    

Optional
Redemption

The
Company may, at its option, redeem this Security, in whole but not in part, on any Optional Redemption Date (as defined below)
by giving notice to the Holder hereof on or before the Calculation Day (as defined below) immediately preceding that Optional
Redemption Date. If this Security is redeemed, the Holder hereof will receive the Optional Redemption Price (as defined below)
plus a final Contingent Coupon Payment (as defined below), if any, on the applicable Optional Redemption Date. Unless the Company
defaults in the payment of the Optional Redemption Price plus the final Contingent Coupon Payment, if any, this Security will
cease to be outstanding on such Optional Redemption Date, no additional Contingent Coupon Payments will be payable on this Security
and the Holder hereof will have no further rights under this Security after such Optional Redemption Date. The “Optional
Redemption Price” is equal to the Face Amount of this Security. The “Optional Redemption Dates” shall
be the Contingent Coupon Payment Dates (as defined below) following each Calculation Day scheduled to occur from September 2019
to June 2023, inclusive.

Payment
of Contingent Coupon Payments, the Maturity Payment Amount and the Optional Redemption Price

On
each quarterly Contingent Coupon Payment Date, the Company shall pay a Contingent Coupon Payment if, and only if, the Closing
Level (as defined below) of the Lowest Performing Index (as defined below) on the related Calculation Day is greater than or equal
to its Coupon Threshold Level (as defined below). A “Contingent Coupon Payment,” if payable as provided herein,
shall be equal to (i) the product of the
Face Amount of this Security and
the Applicable Contingent Coupon Rate, (ii) divided by 4. The “Contingent Coupon Payment Dates” shall be the
third Business Day following each Calculation Day, as each such Calculation Day may be postponed as herein provided, provided
that the Contingent Coupon Payment Date with respect to the Final Calculation Day will be the Stated Maturity Date. If a Calculation
Day is postponed with respect to one or more Indices, the related Contingent Coupon Payment Date will be three Business Days after
the last Calculation Day as postponed. Any Contingent Coupon Payments will be rounded to the nearest cent, with one-half cent
rounded upward. If a Contingent Coupon Payment Date is postponed, the Contingent Coupon Payment, if any, due on that Contingent
Coupon Payment Date will be made on that Contingent Coupon Payment Date as so postponed with the same force and effect as if it
had been made on the originally scheduled Contingent Coupon Payment Date, with no additional amount accruing or payable as a result
of the postponement. The “Applicable Contingent Coupon Rate” that will apply with respect to any Calculation
Day is as follows:

	For the Calculation Days scheduled to occur from

December 2018 to September 2019: 	 	6.30% per annum
	 	 	 
	For
the Calculation Days scheduled to occur from

December 2019 to September 2020:	 	7.30% per annum
	 	 	 
	For the Calculation Days scheduled to occur from

December 2020 to September 2021:	 	8.30% per annum

 

 

    	 	2	 

     

    

 

	For
the Calculation Days scheduled to occur from

December 2021 to September 2022:	 	9.30% per annum
	 	 	 
	For
the Calculation Days scheduled to occur from

December 2022 to September 2023:	 	10.30% per annum

 

Any
Contingent Coupon Payment so payable, and punctually paid or duly provided for, on any Contingent Coupon Payment Date will, as
provided in the Indenture, be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered
at the close of business on the Regular Record Date for such Contingent Coupon Payment next preceding such Contingent Coupon Payment
Date. The Regular Record Date for a Contingent Coupon Payment Date shall be the date one Business Day prior to such Contingent
Coupon Payment Date.

Any
Contingent Coupon Payment not punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular
Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered
at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice
whereof shall be given to Holders of Securities of this series not less than 10 days prior to such Special Record Date, or
be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the
Securities of this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided
in the Indenture.

Payment
of any Contingent Coupon Payment on this Security will be made in immediately available funds at the office or agency of the Company
maintained for that purpose in the City of Minneapolis, Minnesota; provided, however, that, at the option of the Company, payment
of any Contingent Coupon Payment may be paid by check mailed to the Person entitled thereto at such Person’s last address
as it appears in the Security Register or by wire transfer to such account as may have been designated by such Person. Payments
of any Contingent Coupon Payment and the Maturity Payment Amount or the Optional Redemption Price, as applicable, on this Security
at Maturity will be made against presentation of this Security at the office or agency of the Company maintained for that purpose
in the City of Minneapolis, Minnesota and at any other office or agency maintained by the Company for such purpose. Notwithstanding
the foregoing, for so long as this Security is a Global Security registered in the name of the Depositary, any payments on this
Security will be made to the Depositary by wire transfer of immediately available funds.

Payment
of the Maturity Payment Amount or the Optional Redemption Price, as applicable, and any Contingent Coupon Payments on this Security
will be made in such coin or currency of the United States of America as at the time of payment is legal tender for payment of
public and private debts.

    	 	3	 

     

    

Definitions
Relating to Maturity Payment Amount, the Optional Redemption Price and Contingent Coupon Payments

If
this Security is not redeemed prior to the Stated Maturity Date as provided above under “Optional Redemption,” the
“Maturity Payment Amount” of this Security will equal:

●

if the Ending Level of the Lowest Performing Index on the Final Calculation Day (as defined below) is greater than or equal
to its Downside Threshold Level: the Face Amount; or

 

●

if the Ending Level of the Lowest Performing Index on the Final Calculation Day is less than its Downside Threshold Level:

 

 

 

All
calculations with respect to the Maturity Payment Amount will be rounded to the nearest one hundred-thousandth, with five one-millionths
rounded upward (e.g., 0.000005 would be rounded to 0.00001); and the Maturity Payment Amount will be rounded to the nearest cent,
with one-half cent rounded upward.

“Index”
shall mean each of the S&P 500 Index, the Russell 2000 Index and the Dow Jones Industrial Average.

The
“Pricing Date” shall mean September 12, 2018.

The
“Lowest Performing Index” for any Calculation Day will be the Index with the lowest Performance Factor on that
Calculation Day (as such Calculation Day may be postponed for one or more Indices).

The
“Performance Factor” with respect to an Index on any Calculation Day is its Closing Level on such Calculation
Day divided by its Starting Level (expressed as a percentage).

The
“Starting Level” with respect to the S&P 500 Index is 2888.92, its Closing Level on the Pricing Date, with
respect to the Russell 2000 Index is 1715.696, its Closing Level on the Pricing Date, and with respect to the Dow Jones Industrial
Average is 25998.92, its Closing Level on the Pricing Date.

The
“Ending Level” of an Index will be its Closing Level on the Final Calculation Day.

The
“Coupon Threshold Level” with respect to the S&P 500 Index is 1877.798, which is equal to 65% of its Starting
Level, with respect to the Russell 2000 Index is 1115.2024, which is equal to 65% of its Starting Level, and with respect to the
Dow Jones Industrial Average is 16899.298, which is equal to 65% of its Starting Level.

The
“Downside Threshold Level” with respect to the S&P 500 Index is 1733.352, which is equal to 60% of its
Starting Level, with respect to the Russell 2000 Index is 1029.4176, which

    	 	4	 

     

    

is
equal to 60% of its Starting Level, and with respect to the Dow Jones Industrial Average is 15599.352, which is equal to 60% of
its Starting Level.

The
“Closing Level” with respect to each Index on any Trading Day means the official closing level of that Index
reported by the relevant Index Sponsor on such Trading Day, as obtained by the Calculation Agent on such Trading Day from the
licensed third-party market data vendor contracted by the Calculation Agent at such time; in particular, taking into account the
decimal precision and/or rounding convention employed by such licensed third-party market data vendor on such date, subject to
the provisions set forth below under “—Market Disruption Events,” “—Adjustments to an Index”
and “—Discontinuance of an Index.”

“Index
Sponsor” shall mean the sponsor or publisher of an Index.

“Business
Day” shall mean a day, other than a Saturday or Sunday, that is neither a legal holiday nor a day on which banking institutions
are authorized or required by law or regulation to close in New York, New York.

The
“Calculation Days” shall be the 13th day of each March, June, September and December, commencing
December 2018 and ending June 2023, and the Final Calculation Day. If any such day is not a Trading Day with respect to any Index,
such Calculation Day for each Index will be postponed to the next succeeding day that is a Trading Day with respect to each Index.
A Calculation Day for an Index is also subject to postponement due to the occurrence of a Market Disruption Event (as defined
below) with respect to such Index on such Calculation Day. The “Final Calculation Day” is September 13, 2023.
If a Market Disruption Event occurs or is continuing with respect to an Index on any Calculation Day, then such Calculation Day
for such Index will be postponed to the first succeeding Trading Day for such Index on which a Market Disruption Event for such
Index has not occurred and is not continuing; however, if such first succeeding Trading Day has not occurred as of the eighth
Trading Day for such Index after the originally scheduled Calculation Day, that eighth Trading Day shall be deemed to be the Calculation
Day for such Index. If a Calculation Day has been postponed eight Trading Days for an Index after the originally scheduled Calculation
Day and a Market Disruption Event occurs or is continuing with respect to such Index on such eighth Trading Day, the Calculation
Agent will determine the Closing Level of such Index on such eighth Trading Day in accordance with the formula for and method
of calculating the Closing Level of such Index last in effect prior to commencement of the Market Disruption Event, using the
closing price (or, with respect to any relevant security, if a Market Disruption Event has occurred with respect to such security,
its good faith estimate of the value of such security at the Scheduled Closing Time of the Relevant Stock Exchange for such security
or, if earlier, the actual closing time of the regular trading session of such Relevant Stock Exchange) on that day of each security
included in such Index. As used herein, “closing price” means, with respect to any security on any date, the
Relevant Stock Exchange traded or quoted price of such security as of the Scheduled Closing Time of the Relevant Stock Exchange
for such security or, if earlier, the actual closing time of the regular trading session of such Relevant Stock Exchange. Notwithstanding
the postponement of a Calculation Day for an Index due to a Market Disruption Event with respect to such Index on such Calculation
Day, the originally scheduled Calculation Day will remain the Calculation Day for any Index not affected by a Market Disruption
Event on such day.

    	 	5	 

     

    

“Calculation
Agent Agreement” shall mean the Calculation Agent Agreement dated as of January 24, 2018 between the Company and the
Calculation Agent, as amended from time to time.

“Calculation
Agent” shall mean the Person that has entered into the Calculation Agent Agreement with the Company providing for, among
other things, whether a Contingent Coupon Payment will be made, the Optional Redemption Price, if any, and the Maturity Payment
Amount, if any, which term shall, unless the context otherwise requires, include its successors under such Calculation Agent Agreement.
The initial Calculation Agent shall be Wells Fargo Securities, LLC. Pursuant to the Calculation Agent Agreement, the Company may
appoint a different Calculation Agent from time to time after the initial issuance of this Security without the consent of the
Holder of this Security and without notifying the Holder of this Security.

Certain
Definitions 

A
“Trading Day” with respect to an Index means a day, as determined by the Calculation Agent, on which (i) the
Relevant Stock Exchanges with respect to each security underlying such Index are scheduled to be open for trading for their respective
regular trading sessions and (ii) each Related Futures or Options Exchange with respect to such Index is scheduled to be
open for trading for its regular trading session.

The
“Relevant Stock Exchange” for any security underlying an Index means the primary exchange or quotation system
on which such security is traded, as determined by the Calculation Agent.

The
“Related Futures or Options Exchange” for an Index means an exchange or quotation system where trading has
a material effect (as determined by the Calculation Agent) on the overall market for futures or options contracts relating to
such Index.

Adjustments
to an Index

If
at any time the method of calculating an Index or a Successor Equity Index, or the closing level thereof, is changed in a material
respect, or if an Index or a Successor Equity Index is in any other way modified so that such index does not, in the opinion of
the Calculation Agent, fairly represent the level of such index had those changes or modifications not been made, then the Calculation
Agent will, at the close of business in New York, New York, on each date that the closing level of such index is to be calculated,
make such calculations and adjustments as, in the good faith judgment of the Calculation Agent, may be necessary in order to arrive
at a level of an index comparable to such Index or Successor Equity Index as if those changes or modifications had not been made,
and the Calculation Agent will calculate the closing level of such Index or Successor Equity Index with reference to such index,
as so adjusted. Accordingly, if the method of calculating an Index or Successor Equity Index is modified so that the level of
such index is a fraction or a multiple of what it would have been if it had not been modified (e.g., due to a split or
reverse split in such equity index), then the Calculation Agent will adjust such Index or Successor Equity Index in order to arrive
at a level of such index as if it had not been modified (e.g., as if the split or reverse split had not occurred).

    	 	6	 

     

    

Discontinuance
of an Index

If
an Index Sponsor discontinues publication of an Index, and such Index Sponsor or another entity publishes a successor or substitute
equity index that the Calculation Agent determines, in its sole discretion, to be comparable to such Index (a “Successor
Equity Index”), then, upon the Calculation Agent’s notification of that determination to the Trustee and the Company,
the Calculation Agent will substitute the Successor Equity Index as calculated by the relevant Index Sponsor or any other entity
for purposes of calculating the Closing Level of such Index on any date of determination. Upon any selection by the Calculation
Agent of a Successor Equity Index, the Company will cause notice to be given to the Holder of this Security.

In
the event that an Index Sponsor discontinues publication of an Index prior to, and the discontinuance is continuing on, a Calculation
Day and the Calculation Agent determines that no Successor Equity Index is available at such time, the Calculation Agent will
calculate a substitute Closing Level for such Index in accordance with the formula for and method of calculating such Index last
in effect prior to the discontinuance, but using only those securities that comprised such Index immediately prior to that discontinuance.
If a Successor Equity Index is selected or the Calculation Agent calculates a level as a substitute for such Index, the Successor
Equity Index or level will be used as a substitute for such Index for all purposes, including the purpose of determining whether
a Market Disruption Event exists.

If
on a Calculation Day an Index Sponsor fails to calculate and announce the level of an Index, the Calculation Agent will calculate
a substitute Closing Level of such Index in accordance with the formula for and method of calculating such Index last in effect
prior to the failure, but using only those securities that comprised such Index immediately prior to that failure; provided
that, if a Market Disruption Event occurs or is continuing on such day with respect to such Index, then the provisions set
forth above under the definition of “Calculation Days” shall apply in lieu of the foregoing.

Market
Disruption Events 

A
“Market Disruption Event” with respect to an Index means any of the following events as determined by the Calculation
Agent in its sole discretion:

(A)                       

The occurrence or existence of a material suspension of or limitation imposed on trading by the Relevant Stock Exchanges or otherwise
relating to securities which then comprise 20% or more of the level of such Index or any Successor Equity Index at any time during
the one-hour period that ends at the Close of Trading on that day, whether by reason of movements in price exceeding limits permitted
by those Relevant Stock Exchanges or otherwise.

 

(B)                       

The occurrence or existence of a material suspension of or limitation imposed on trading by any Related Futures or Options Exchange
or otherwise in futures or options contracts relating to such Index or any Successor Equity Index on any Related Futures or Options
Exchange at any time during the one-hour period that ends at the Close of Trading on that day, whether by reason of movements
in

 

    	 	7	 

     

    

 

price
exceeding limits permitted by the Related Futures or Options Exchange or otherwise.

 

(C)                       

The occurrence or existence of any event, other than an early closure, that materially disrupts or impairs the ability of market
participants in general to effect transactions in, or obtain market values for, securities that then comprise 20% or more of the
level of such Index or any Successor Equity Index on their Relevant Stock Exchanges at any time during the one-hour period that
ends at the Close of Trading on that day.

 

(D)                       

The occurrence or existence of any event, other than an early closure, that materially disrupts or impairs the ability of market
participants in general to effect transactions in, or obtain market values for, futures or options contracts relating to such
Index or any Successor Equity Index on any Related Futures or Options Exchange at any time during the one-hour period that ends
at the Close of Trading on that day.

 

(E)                       

The closure on any Exchange Business Day of the Relevant Stock Exchanges on which securities that then comprise 20% or more of
the level of such Index or any Successor Equity Index are traded or any Related Futures or Options Exchange with respect to such
Index or any Successor Equity Index prior to its Scheduled Closing Time unless the earlier closing time is announced by the Relevant
Stock Exchange or Related Futures or Options Exchange, as applicable, at least one hour prior to the earlier of (1) the actual
closing time for the regular trading session on such Relevant Stock Exchange or Related Futures or Options Exchange, as applicable,
and (2) the submission deadline for orders to be entered into the Relevant Stock Exchange or Related Futures or Options Exchange,
as applicable, system for execution at such actual closing time on that day.

 

(F)                       

The Relevant Stock Exchange for any security underlying such Index or Successor Equity Index or any Related Futures or Options
Exchange with respect to such Index or Successor Equity Index fails to open for trading during its regular trading session.

 

For
purposes of determining whether a Market Disruption Event has occurred with respect to an Index:

 

(1)      

the relevant percentage contribution of a security to the level of such Index or any Successor Equity Index will be based on a
comparison of (x) the portion of the level of such Index attributable to that security and (y) the overall level of
such Index or Successor Equity Index, in each case immediately before the occurrence of the Market Disruption Event;

 

(2)      

the “Close of Trading” on any Trading Day for such Index or any Successor Equity Index means the Scheduled
Closing Time of the Relevant Stock Exchanges with respect to the securities underlying such Index or Successor Equity Index on
such Trading Day; provided that, if the actual closing time of the regular trading session of

 

    	 	8	 

     

    

 

any
such Relevant Stock Exchange is earlier than its Scheduled Closing Time on such Trading Day, then (x) for purposes of clauses (A)
and (C) of the definition of “Market Disruption Event” above, with respect to any security underlying such Index or
Successor Equity Index for which such Relevant Stock Exchange is its Relevant Stock Exchange, the “Close of Trading”
means such actual closing time and (y) for purposes of clauses (B) and (D) of the definition of “Market Disruption
Event” above, with respect to any futures or options contract relating to such Index or Successor Equity Index, the “Close
of Trading” means the latest actual closing time of the regular trading session of any of the Relevant Stock Exchanges,
but in no event later than the Scheduled Closing Time of the Relevant Stock Exchanges;

 

(3)      

the “Scheduled Closing Time” of any Relevant Stock Exchange or Related Futures or Options Exchange on any Trading
Day for such Index or any Successor Equity Index means the scheduled weekday closing time of such Relevant Stock Exchange or Related
Futures or Options Exchange on such Trading Day, without regard to after hours or any other trading outside the regular trading
session hours; and

 

(4)      

an “Exchange Business Day” means any Trading Day for such Index or any Successor Equity Index on which each
Relevant Stock Exchange for the securities underlying such Index or any Successor Equity Index and each Related Futures or Options
Exchange with respect to such Index or any Successor Equity Index are open for trading during their respective regular trading
sessions, notwithstanding any such Relevant Stock Exchange or Related Futures or Options Exchange closing prior to its Scheduled
Closing Time.

 

Calculation
Agent

The
Calculation Agent will determine whether a Contingent Coupon Payment will be made, the Optional Redemption Price, if any, and
the Maturity Payment Amount, if any. In addition, the Calculation Agent will (i) determine if adjustments are required to
the Closing Level of an Index under the circumstances described in this Security, (ii) if publication of an Index is discontinued,
select a Successor Equity Index or, if no Successor Equity Index is available, determine the Closing Level of such Index under
the circumstances described in this Security, and (iii) determine whether a Market Disruption Event has occurred.

The
Company covenants that, so long as this Security is Outstanding, there shall at all times be a Calculation Agent (which shall
be a broker-dealer, bank or other financial institution) with respect to this Security.

All
determinations made by the Calculation Agent with respect to this Security will be at the sole discretion of the Calculation Agent
and, in the absence of manifest error, will be conclusive for all purposes and binding on the Company and the Holder of this Security.

    	 	9	 

     

    

Redemption
and Repayment

This
Security is not subject to repayment at the option of the Holder hereof prior to September 18, 2023. This Security is subject
to redemption prior to September 18, 2023 as set forth under “Optional Redemption” above. This Security is not entitled
to any sinking fund.

Acceleration

If
an Event of Default, as defined in the Indenture, with respect to this Security shall occur and be continuing, the Maturity Payment
Amount (calculated as set forth in the next two sentences) of this Security may be declared due and payable in the manner and
with the effect provided in the Indenture. The amount payable to the Holder hereof upon any acceleration permitted under the Indenture
will be equal to the Maturity Payment Amount hereof calculated as provided herein, plus a portion of a final Contingent Coupon
Payment, if any. The Maturity Payment Amount and any final Contingent Coupon Payment will be calculated as though the date of
acceleration were the Final Calculation Day. The final Contingent Coupon Payment, if any, will be prorated from and including
the immediately preceding Contingent Coupon Payment Date to but excluding the date of acceleration.

 

 

Reference is hereby made to
the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all purposes have
the same effect as if set forth at this place.

Unless
the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature
or its duly authorized agent under the Indenture referred to on the reverse hereof by manual signature, this Security shall not
be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

 

[The
remainder of this page has been left intentionally blank]

 

 

 

    	 	10	 

     

    

IN
WITNESS WHEREOF, the Company has caused this instrument to be duly executed.

DATED:
September 17, 2018

 

	 	WELLS FARGO & COMPANY
	 	 	 
	 	By:	 
	 	 	 
	 	 	Its:
	 	 	 
	 	Attest:	 
	 	 	 
	 	 	Its:

 

TRUSTEE’S
CERTIFICATE OF

AUTHENTICATION

This
is one of the Securities of the 

series
designated therein described

in
the within-mentioned Indenture.

 

	CITIBANK, N.A.,	 
	 	as Trustee	 
	 	 	 
	By:	 	 
	 	Authorized Signature	 
	 	 	 
	OR	 
	 	 	 
	WELLS FARGO BANK, N.A.,	 
	 	as Authenticating Agent for the Trustee	 
	 	 	 
	By:	 	 
	 	Authorized Signature	 

 

 

    	 	11	 

     

    

 

[Reverse
of Note]

 

 

WELLS
FARGO & COMPANY

 

MEDIUM-TERM
NOTE, SERIES S

 

Due
Nine Months or More From Date of Issue

 

Principal
at Risk Securities Linked to the Lowest Performing of 

the
S&P 500® Index, the Russell 2000® Index and the Dow Jones Industrial Average®

due
September 18, 2023

 

This
Security is one of a duly authorized issue of securities of the Company (herein called the “Securities”), issued
and to be issued in one or more series under an indenture dated as of February 21, 2017, as amended or supplemented from time
to time (herein called the “Indenture”), between the Company and Citibank, N.A., as Trustee (herein called
the “Trustee,” which term includes any successor trustee under the Indenture), to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities
thereunder of the Company, the Trustee and the Holders of the Securities, and of the terms upon which the Securities are, and
are to be, authenticated and delivered. This Security is one of the series of the Securities designated as Medium-Term Notes,
Series S, of the Company. The amount payable on the Securities of this series may be determined by reference to the performance
of one or more equity-, commodity- or currency-based indices, exchange traded funds, securities, commodities, currencies, statistical
measures of economic or financial performance, or a basket comprised of two or more of the foregoing, or any other market measure
or may bear interest at a fixed rate or a floating rate. The Securities of this series may mature at different times, be redeemable
at different times or not at all, be repayable at the option of the Holder at different times or not at all and be denominated
in different currencies.

The
Securities are issuable only in registered form without coupons and will be either (a) book-entry securities represented
by one or more Global Securities recorded in the book-entry system maintained by the Depositary or (b) certificated securities
issued to and registered in the names of, the beneficial owners or their nominees.

The
Company agrees, to the extent permitted by law, not to voluntarily claim the benefits of any laws concerning usurious rates of
interest against a Holder of this Security.

Modification
and Waivers 

The
Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations
of the Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by
the Company and the Trustee with the consent of the Holders of a majority in principal amount of the Securities at the time Outstanding
of all series to be affected, acting together as a class. The Indenture also contains provisions permitting the Holders of a majority
in principal amount of the Securities of all series at

    	 	12	 

     

    

the
time Outstanding affected by certain provisions of the Indenture, acting together as a class, on behalf of the Holders of all
Securities of such series, to waive compliance by the Company with those provisions of the Indenture. Certain past defaults under
the Indenture and their consequences may be waived under the Indenture by the Holders of a majority in principal amount of the
Securities of each series at the time Outstanding, on behalf of the Holders of all Securities of such series. Solely
for the purpose of determining whether any consent, waiver, notice or other action or Act to be taken or given by the Holders
of Securities pursuant to the Indenture has been given or taken by the Holders of Outstanding Securities in the requisite aggregate
principal amount, the principal amount of this Security will be deemed to be equal to the amount set forth on the face hereof
as the “Face Amount” hereof. Any such consent or waiver by the Holder of this Security shall be conclusive
and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of
transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this
Security.

Defeasance

Section 403
and Article Fifteen of the Indenture and the provisions of clause (ii) of Section 401(1)(B) of the Indenture, relating
to defeasance at any time of (a) the entire indebtedness on this Security and (b) certain restrictive covenants, upon
compliance by the Company with certain conditions set forth therein, shall not apply to this Security. The remaining provisions
of Section 401 of the Indenture shall apply to this Security.

Authorized
Denominations

This
Security is issuable only in registered form without coupons in denominations of $1,000 or any amount in excess thereof which
is an integral multiple of $1,000.

Registration
of Transfer

Upon
due presentment for registration of transfer of this Security at the office or agency of the Company in the City of Minneapolis,
Minnesota, a new Security or Securities of this series, with the same terms as this Security, in authorized denominations for
an equal aggregate Face Amount will be issued to the transferee in exchange herefor, as provided in the Indenture and subject
to the limitations provided therein and to the limitations described below, without charge except for any tax or other governmental
charge imposed in connection therewith.

This
Security is exchangeable for definitive Securities in registered form only if (x) the Depositary notifies the Company that
it is unwilling or unable to continue as Depositary for this Security or if at any time the Depositary ceases to be a clearing
agency registered under the Securities Exchange Act of 1934, as amended, and a successor depositary is not appointed within 90 days
after the Company receives such notice or becomes aware of such ineligibility, (y) the Company in its sole discretion determines
that this Security shall be exchangeable for definitive Securities in registered form and notifies the Trustee thereof or (z)
an Event of Default with respect to the Securities represented hereby has occurred and is continuing. If this Security is exchangeable
pursuant to the preceding sentence, it shall be exchangeable for definitive Securities in registered form, bearing interest at
the same rate, having the same date of issuance, Stated Maturity Date and other terms and of authorized denominations aggregating
a like amount.

    	 	13	 

     

    

This
Security may not be transferred except as a whole by the Depositary to a nominee of the Depositary or by a nominee of the Depositary
to the Depositary or another nominee of the Depositary or by the Depositary or any such nominee to a successor of the Depositary
or a nominee of such successor. Except as provided above, owners of beneficial interests in this Global Security will not be entitled
to receive physical delivery of Securities in definitive form and will not be considered the Holders hereof for any purpose under
the Indenture.

Prior
to due presentment of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the
Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this
Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

Obligation
of the Company Absolute

No
reference herein to the Indenture and no provision of this Security or the Indenture shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the Contingent Coupon Payments, if any, and the Maturity Payment Amount or
the Optional Redemption Price, as applicable, on this Security at the times, place and rate, and in the coin or currency, herein
prescribed, except as otherwise provided in this Security.

No
Personal Recourse

No
recourse shall be had for the payment of any Contingent Coupon Payments or the Maturity Payment Amount or the Optional Redemption
Price, as applicable, on this Security or for any claim based hereon, or otherwise in respect hereof, or based on or in respect
of the Indenture or any indenture supplemental thereto, against any incorporator, stockholder, officer or director, as such, past,
present or future, of the Company or any successor corporation, whether by virtue of any constitution, statute or rule of law,
or by the enforcement of any assessment or penalty or otherwise, all such liability being, by the acceptance hereof and as part
of the consideration for the issuance hereof, expressly waived and released.

Defined
Terms

All
terms used in this Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture unless
otherwise defined in this Security.

Governing
Law

This
Security shall be governed by and construed in accordance with the law of the State of New York, without regard to principles
of conflicts of laws.

    	 	14	 

     

    

 

ABBREVIATIONS

 

 

The
following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written
out in full according to applicable laws or regulations:

	TEN COM	--	as tenants in common
	 	 	 
	TEN ENT	--	as tenants by the entireties
	 	 	 
	JT TEN	--	as joint tenants with right
	 	 	of survivorship and not
	 	 	as tenants in common

 

	UNIF GIFT MIN ACT --	 	 Custodian 	 
	 	(Cust)	 	(Minor)

 

	Under Uniform Gifts to Minors Act	 
	 	 
	 	 
	(State)	 

 

Additional abbreviations
may also be used though not in the above list.

 

FOR VALUE RECEIVED,
the undersigned hereby sell(s) and transfer(s) unto

 

	Please Insert Social Security or	 
	Other Identifying Number of Assignee
	 	 
	 	 

 

 

	 
	 
	 

(Please
print or type name and address including postal zip code of Assignee)

 

    	 	15	 

     

    

 

the
within Security of WELLS FARGO & COMPANY and does hereby irrevocably constitute and appoint __________________ attorney to
transfer the said Security on the books of the Company, with full power of substitution in the premises.

 

 

Dated:
_________________________

  

	 	 
	 	 
	 	 
	 	 

 

 

NOTICE:
The signature to this assignment must correspond with the name as written upon the face of the within instrument in every particular,
without alteration or enlargement or any change whatever.

 

    	 	16

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