Document:

EX-4.1

 Exhibit 4.1 

LINCOLN NATIONAL CORPORATION 

3.050% Senior Note due 2030 
  

	 Registered 
	 CUSIP 534187BJ7 

ISIN US534187BJ76 

	 No. R-1 
	 U.S.$500,000,000 

UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”),
TO THE COMPANY (AS DEFINED BELOW) OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY 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 TO 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. 
 THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF DTC OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME
OF ANY PERSON OTHER THAN DTC OR SUCH NOMINEE, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. 
 Lincoln National Corporation, a corporation
organized and existing under the laws of the State of Indiana (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, the principal sum of FIVE HUNDRED MILLION DOLLARS ($500,000,000) on January 15, 2030 and to pay interest thereon from August 19, 2019 or from the most recent interest payment date to which
interest has been paid or duly provided for, semi-annually in arrears on January 15 and July 15 in each year, commencing on January 15, 2020 (each, an “Interest Payment Date”), at the rate of 3.050% per annum. The
period beginning on August 19, 2019 and ending on but excluding the first Interest Payment Date and each successive period beginning on and including an Interest Payment Date and ending on but excluding the next succeeding Interest Payment Date
is herein called an “Interest Period”. If any Interest Payment Date falls on a day 

 
which is not a Business Day, such Interest Payment Date shall be postponed to the next succeeding Business Day. If January 15 or July 15 of any year is not a Business Day (with the
consequence that the related interest payment shall be made on the next succeeding Business Day, which shall be the relevant Interest Payment Date as set forth above), such payment shall be made on such Interest Payment Date in the amount that would
otherwise have been due on January 15 or July 15 and no interest on such payment shall accrue for the period from and after January 15 or July 15 to such postponed Interest Payment Date, and the next succeeding Interest Period
shall begin on January 15 or July 15 on which such payment originally would have been made. If January 15, 2030 shall not be a Business Day, payment of the principal and interest due on that date need not be made on that day but may
be made on the next day that is a Business Day with the same force and effect as if made on January 15, 2030, provided that no interest shall accrue for the period from and after January 15, 2030. The interest so payable and punctually
paid or duly provided for on any Interest Payment Date will, as provided in the Indenture, be paid to the person in whose name this Note is registered at the close of business on January 1 or July 1 (whether or not a Business Day)
immediately preceding the Interest Payment Date, as applicable (each respectively a “Record Date”), subject to certain exceptions as provided in the Indenture. Payment of the principal of, and interest on, this Note will be made at
the designated office or agency of the Company maintained for such purpose in The City of New York, New York 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 debt
or, at the option of the Company, interest so payable may be paid by check to the order of said Holder mailed to his address appearing on the Security Register. Any interest not so punctually paid or duly provided for shall be payable as provided in
the Note. Interest on this Note will be computed on the basis of a 360-day year consisting of twelve 30-day months. 

Reference is hereby made to the further provisions of this Note 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 by manual signature, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

 IN WITNESS WHEREOF, Lincoln National Corporation has caused this instrument to be duly
executed under its corporate seal. 
  

					
	LINCOLN NATIONAL CORPORATION
		
	By:	 	  

		 	Name:	 	Randal J. Freitag
		 	Title:	 	Executive Vice President and Chief Financial Officer

  

					
	By:	 	  

		 	Name:	 	Christopher A. Giovanni
		 	Title:	 	Senior Vice President and Treasurer

  

					
	Attest:	 	  

		 	Name:	 	Nancy Smith
		 	Title:	 	Senior Vice President & Corporate Secretary
	
	Date:                     

 Dated: 

Trustee’s Certificate of Authentication 

This is one of the Securities of the series designated herein and referred to in the within-mentioned Indenture. 

 

	
	 THE BANK OF NEW YORK MELLON, as

Trustee

	
	  

	
	Authorized Signatory

 [Reverse of Note] 

LINCOLN NATIONAL CORPORATION 

3.050% Senior Note due 2030 

This Note is one of a duly authorized issue of Securities of the Company of a series hereinafter specified, all issued and to be issued under
the Senior Indenture, dated as of March 10, 2009 (hereinafter the “Indenture”), between the Company and The Bank of New York Mellon, as Trustee (hereinafter 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
Holder of the Securities and the terms upon which the Securities are, and are to be, authenticated and delivered. The Securities may be issued in one or more series, the terms of which different series may vary as provided in the Indenture. This
Note is one of a series of the Securities of the Company designated as its 3.050% Senior Notes due 2030 (herein called the “Notes”), limited initially in aggregate principal amount to $500,000,000, except as otherwise provided in
the Indenture. The Notes of this series are issuable in registered form only in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof. 

All terms used in this Note that are defined in the Indenture shall have the meanings assigned to them in the Indenture. 

The Notes are redeemable, in whole or in part, at the option of the Company, at any time or from time to time, upon mailed notice to the
registered address of each Holder of the Notes at least 30 days but not more than 60 days prior to the redemption. 
 At any time and from
time to time prior to October 15, 2029, (the “Par Call Date”), the redemption price will be the greater of (i) 100% of the principal amount of the Notes to be redeemed and (ii) as determined by the quotation agent, the sum
of the present values of the remaining scheduled payments of principal and interest on the Notes to be redeemed that would be due if such Notes matured on the Par Call Date (not including any portion of such payments of interest accrued to the date
of redemption) discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Adjusted treasury rate, plus
25 basis points. At any time and from time to time on or after the Par Call Date, the redemption price will be equal to 100% of the principal amount of the Notes to be redeemed. In each case, the redemption price shall also include accrued and
unpaid interest on the principal amount being redeemed to the date of redemption. 
 “Adjusted treasury rate” means, with
respect to any redemption date: 
  

	 	•	 	 the yield, under the heading which represents the average for the immediately preceding week, appearing in the
most recently published statistical release designated “H.15” published by the Board of Governors of the Federal Reserve System (or any successor publication which is published weekly by the Board of Governors of the Federal Reserve System
and which establishes yields on actively traded United States Treasury securities adjusted to constant maturity) under the caption “Treasury Constant Maturities,” for the maturity corresponding to the Comparable treasury issue. If no
maturity is within three months before or after the Remaining 

	 	 
life, yields for the two published maturities most closely corresponding to the Comparable treasury issue shall be determined and the Adjusted treasury rate shall be interpolated or extrapolated
from such yields on a straight-line basis, rounding to the nearest month; or 

  

	 	•	 	 if such release (or any successor release) is not published during the week preceding the calculation date or
does not contain such yields, the rate per year equal to the semi-annual equivalent yield to maturity of the Comparable treasury issue, calculated using a price for the Comparable treasury issue (expressed as a percentage of its principal amount)
equal to the Comparable treasury price for such redemption date. 

 The Adjusted treasury rate shall be calculated on the
third business day preceding the Redemption Date. 
 “Comparable treasury issue” means the U.S. Treasury security selected
by a reference treasury dealer as having an actual or interpolated maturity comparable to the remaining term of the Notes to be redeemed (assuming, for this purpose, that the Notes matured on the Par Call Date), that would be utilized, at the time
of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the Notes (assuming, for this purpose, that the Notes matured on the Par Call Date)
(“Remaining life”). 
 “Comparable treasury price” means, with respect to a redemption date, (1) the
average of five reference treasury dealer quotations for such redemption date, after excluding the highest and lowest reference treasury dealer quotations, or (2) if the quotation agent obtains fewer than five such reference treasury dealer
quotations, the average of all such quotations. 
 “Quotation agent” means one of the Reference treasury dealers appointed
by the Company, which in any case shall not be the Trustee, to determine the make-whole amount. 
 “Reference treasury
dealer” means (1) J.P. Morgan Securities LLC, Wells Fargo Securities, LLC and BNP Paribas Securities Corp., and each of their respective successors AND (2) any additional primary U.S. government securities dealers, including
dealers outside New York City (each, a “primary treasury dealer”) selected by the Company and their successors, provided, however, that if any of them ceases to be a primary treasury dealer the Company will substitute another primary
treasury dealer. 
 “Reference treasury dealer quotations” means, with respect to each reference treasury dealer and any
redemption date, the average, as determined by the quotation agent, of the bid and ask prices for the comparable treasury issue (expressed in each case as a percentage of its principal amount) quoted in writing to the quotation agent at 5:00 p.m.,
New York City time, on the third business day preceding such redemption date. 
 The Company will prepare and mail a notice of redemption to
each Holder of Notes to be redeemed by first-class mail at least 30 and not more than 60 days prior to the date fixed for redemption. On and after a redemption date, interest will cease to accrue on the Notes called for redemption (unless the
Company defaults in the payment of the redemption price and accrued interest). On or before a redemption date, the Company will 

 
deposit with a paying agent (or the Trustee) money sufficient to pay the redemption price of and accrued interest on the Notes to be redeemed on that date. If less than all of the Notes are to be
redeemed, the Notes to be redeemed shall be selected by the Trustee pro rata or by lot or by a method the Trustee deems to be fair and appropriate. 

The Notes are not entitled to any sinking fund. If an Event of Default shall occur with respect to the Notes, the principal of the Notes may
be declared due and payable in the manner and with the effect provided in the Indenture. 
 The Indenture contains provisions for defeasance
at any time of the Notes, upon which the Company, at its option, shall be deemed to have been discharged from its obligations with respect to the Notes or shall cease to be under any obligation to comply with certain restrictive covenants of the
Indenture. 
 Subject to certain exceptions, the Indenture or the Notes may be amended or supplemented with the consent of the Holders of at
least a majority in principal amount of the Outstanding Securities affected by such amendment or supplement voting as one class. Without the consent of any Holder, the Company and the Trustee may amend or supplement the Indenture or the Notes to,
among other things, cure any ambiguity, defect or inconsistency. Subject to certain exceptions, any past default or Event of Default may be waived by the Holders of at least a majority in principal amount of the Outstanding Securities of any series
affected on behalf of the Holders of the Securities of that series or the Holders of at least a majority in principal amount of all the Outstanding Securities voting as one class. After the amendment or supplement is effective, any such consent or
waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Note issued upon the transfer hereof or in exchange hereunder or in lieu hereof whether or not notation of such
consent or waiver is made upon this Note or upon any Note issued upon the transfer hereof or in exchange herefor or in lieu hereof. 
 No
reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of, and interest on, this Note at the times, place,
and rate, and in the coin or currency, herein prescribed. 
 As provided in the Indenture and subject to certain limitations therein set
forth, this Note is transferable on the Security Register of the Company, upon surrender of this Note for transfer at the office or agency of the Company in The City of New York, New York, duly endorsed by, or accompanied by a written instrument of
transfer in form satisfactory to the Company and the Security Registrar, duly executed by the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Notes, of authorized denominations and for the same aggregate
principal amount, will be issued to the designated transferee or transferees. 
 As provided in the Indenture and subject to certain
limitations therein set forth, this Note is exchangeable for a like aggregate principal amount of Notes of different authorized denominations as requested by the Holder surrendering the same. 

 No service charge will be made for any such transfer or exchange, but the Company may
require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 
 The Company, the
Trustee and any agent of the Company or the Trustee may treat the person in whose name this Note is registered as the owner hereof for the purpose of receiving payment as herein provided and for all other purposes whether or not this Note be
overdue, and neither the Company, the Trustee nor any agent shall be affected by notice to the contrary. 
 No recourse shall be had for the
payment of the principal of, or the interest on, this Note or for any claim based hereon or otherwise in any manner in respect hereof, or in respect of the Indenture, against any incorporator, shareholder, officer or director, as such, past, present
or future, of the Company or of any predecessor or, except as provided in the Indenture, successor corporation, whether by virtue of any constitutional provision or statute or rule of law, or by the enforcement of any assessment or penalty or in any
other manner, all such liability being expressly waived and released by the acceptance hereof and as part of the consideration for the issue hereof.EdgarFiling

Exhibit 10.1

 

ASSET AND FRANCHISE AGREEMENT PURCHASE AGREEMENT

 

THIS ASSET AND FRANCHISE AGREEMENT PURCHASE
AGREEMENT (“Agreement”) is made and entered into on August 15, 2019 (“Effective Date”), by
and between The Joint Corp., a Delaware corporation (“TJC”), Well Adjusted Ventures, LLC, a California limited
liability company (“Seller”), and Jim Burbach, an individual (the “Shareholder”). TJC, Seller,
and Shareholder shall at times be collectively referred to as the “Parties.”

 

Background:

 

A.                
The Shareholder is the franchisee under a franchise agreement with TJC for The Joint franchise number 31125 known
as Eastlake, and located at 884 Eastlake Parkway, Suite #1616, Chula Vista, CA 91914 (the “Subject Franchise”);

 

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

 

C.                 
The Shareholder owns all of the outstanding interests in the Seller.

 

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

 

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

 

		1.	Purchase and Sale

 

(a)               
Except as provided herein, at the “Closing" (as hereinafter defined in Section 5) of the transactions
contemplated hereby, Seller and Shareholder shall sell, assign, transfer and deliver, or cause its affiliates to assign, transfer
and deliver, to TJC, and TJC shall purchase and accept from Seller, Shareholder and/or their affiliates, the “Assets”
(as defined below); free and clear of any and all liens, claims (including, without limitation, title claims and claims of taxing
authorities), encumbrances, pledges, security interests or charges of any kind whatsoever, and shall assume the obligations only
as specifically stated herein, for the purchase price set forth in Section 4 hereof.

 

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

 

(i)                
the franchise agreement between Seller and TJC dated September 28, 2012 for the Subject Franchise, as more particularly
described in Schedule 1(b)(i) attached hereto as and made a part hereof, without any transfer fees (as amended, the
“Franchise Agreement”);

 

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

 

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(iii)       all
of Seller’s interest in any membership agreements, prepaid services packages and other agreements or arrangements Seller
has made with patients of the Subject Franchise, together with any deposits or prepayments (for packages or otherwise) made by
any patients covered by such agreements or arrangements to the extent related to services to be performed after Closing, which
amount shall be computed by adding two components: 1) the value of such interest as of June 21 2019, which shall not exceed
$15,000.00, and 2) one hundred percent (100%) of such interest accruing from June 22, 2019 through the Closing
(hereinafter, the “Prepayment Balance”);

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(d)               
Lease Assignment. TJC agrees that contemporaneously with the executed assignment of the Lease from Seller to TJC,
TJC shall: 1) remit to Seller the amount of $4,053.00, which is currently held by Landlord as a security deposit; and 2)
remit to the Landlord the amount of $1,000.00 in payment of the Lease transfer fee.

 

    	- 2 -

     

    

 

		2.	Excluded Assets

 

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

 

		3.	No Assumption of Liabilities

 

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

 

		4.	Payment of Purchase Price

 

(a)               
The purchase price to be paid by TJC for the Assets (the “Purchase Price”) is Three Hundred Twenty-Five
Thousand Dollars and No/100 ($325,000.00), subject to adjustment as set forth in Section 4(d);

 

(b)               
TJC will pay to Seller the amount of $300,000.00 in cash by business check within one (1) day of Closing, less the
following items: (i) any amounts to be paid to third parties in connection with the satisfaction of liens or security interests
affecting the Assets; (ii) any amounts required to be paid to the landlord in connection with the assignment of the Lease; (iii)
that portion of the Prepayment Balance that was sold and collected after June 1, 2019 and is still outstanding; and (iv)
any outstanding or accrued royalties, advertising contributions and other fees under the Franchise Agreement through the “Closing
Date” (as hereinafter defined in Section 5) (collectively, the “FA Fees”);

 

(c)               
Subject to Section 4(d) below, the $25,000.00 balance of the Purchase Price (the “Purchase Price
Balance”) shall be paid by TJC to Seller ninety (90) calendar days after the Closing Date (the “Purchase Price
Balance Due Date”); and

 

    	- 3 -

     

    

 

(d)               
Within ninety (90) days after Closing Date, the Purchase Price Balance shall be adjusted by appropriate pro-rations for
rent, state and local real estate taxes and transfer taxes, sales tax, service and utility contracts, any merchant card collections
on account of the Subject Franchise only for periods after the Closing, balance of any security deposit held by the landlord under
the Lease that transfers to TJC, and/or FA Fees, payroll and employee related payments related to the Subject Franchise in respect
of periods prior to Closing (the “Adjustments”). The Parties shall cooperate to determine the amounts of the
Adjustments, and shall use commercially reasonable efforts to determine amounts within sixty (60) days after Closing Date and shall
reimburse the other party as necessary and as detailed below. The agreed amount of the Adjustments shall be documented by a written
calculation signed by the Parties hereto (the “Adjustment Agreement”). In the event that the Parties agree that
the Adjustments in favor of Seller are greater than the Adjustments in favor of TJC, TJC shall remit the net amount of Adjustments
to Seller along with the remittance of the Purchase Price Balance on the Purchase Price Balance Due Date. In the event that the
Parties agree that the Adjustments in favor of TJC are greater than the Adjustments in favor of Seller, the Purchase Price Balance
shall be reduced by the net amount of the Adjustments. Any Adjustments received by TJC following the ninety (90)-day period shall
be remitted to the Seller by written notice within sixty (60) days of TJC’s receipt, upon which Seller shall remit to TJC
the amount of those Adjustments within thirty (30) days of such written notice.

 

		5.	Closing

 

Subject to the satisfaction or waiver of the
conditions described in Sections 9 and 10, the Closing of the transactions described herein shall take place on or
about August 15, 2019, but in any event no later than August 19, 2019, at such time as the Parties agree,
and shall occur at the offices of TJC. The date on which the Closing takes place is referred to in this Agreement as the “Closing
Date.” At the Closing, Seller shall deliver, or cause its affiliates to deliver, such bills of sale, assignments, certificates
and other documents and instruments as may reasonably be requested by TJC to carry out the transfer and assignment to TJC of the
Assets, including execution of the “Bill of Sale and Assignment,” attached hereto at Exhibit B. Following
the Closing, the Parties shall cooperate fully with each other and shall make available to the other, as reasonably requested and
at the expense of the requesting party, and to any taxing or regulatory authority, all information, records or documents relating
to tax obligations and regulatory compliance matters of Seller for all periods on or prior to the Closing Date, and shall preserve
all such information, records and documents until the expiration of any applicable statute of limitations and extensions thereof.

 

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

 

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

 

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

 

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

 

    	- 4 -

     

    

 

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

 

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

 

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

 

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

 

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

 

    	- 5 -

     

    

 

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

 

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

 

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

 

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

 

(l)                
Due Diligence Request. Seller agrees and acknowledges that TJC delivered the Due Diligence Request attached hereto
at Exhibit E. Seller further warrants, represents and covenants that it has disclosed all material disclosures, documentation
and information responsive to the Due Diligence Request.

 

		7.	TJC’s Representations and Warranties

 

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

 

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

 

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

 

    	- 6 -

     

    

 

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

 

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

 

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

 

		8.	Pre-Closing Events

 

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

 

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

 

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

 

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

 

    	- 7 -

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

		9.	TJC Closing Conditions

 

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

 

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

 

    	- 8 -

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

		10.	Seller’s Closing Conditions

 

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

 

    	- 9 -

     

    

 

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

 

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

 

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

 

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

 

		11.	Non-Competition; Non-Solicitation; Confidentiality

 

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

 

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

 

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

 

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

 

    	- 10 -

     

    

 

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

 

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

 

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

 

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

 

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

 

    	- 11 -

     

    

 

12.       Termination

 

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

 

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

 

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

 

(iii)       Closing
does not occur on or before August 15, 2019 (other than as a result of TJC’s breach of or failure to perform its obligations
under this Agreement).

 

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

 

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

 

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

 

(iii)       Closing
has not occurred by August 15, 2019 (other than as a result of Seller’s, or Shareholder’s breach of or failure
to perform their obligations under this Agreement); or

 

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

 

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

 

    	- 12 -

     

    

 

13.       Indemnification
of TJC

 

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

 

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

 

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

 

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

 

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

 

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

 

14.       Indemnification
of Seller and the Shareholder

 

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

 

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

 

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

 

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

 

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

 

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

 

15.       Threshold
and Cap

 

(a)       In
respect of TJC’s assertion of an Indemnification Claim under Section 13(a)(i), TJC shall not be entitled to indemnification
until the aggregate amount for which indemnification is sought exceeds $5,000.00. If this threshold is reached, TJC may
assert an Indemnification Claim for the full amount of the claim (going back to the first dollar) and may assert any subsequent
Indemnification Claim under Section 13(a)(i) without regard to any threshold. The maximum aggregate amount for which TJC
may assert Indemnification Claims under Section 13 shall be the Purchase Price, unless insurance coverage applies that provides
additional coverage amounts. No threshold or cap shall apply, however, in the case of any Loss caused by, arising out of or relating
to any fraud or intentional misrepresentation.

 

    	- 13 -

     

    

 

(b)       In
respect of Seller’s and/or a Shareholder’s assertion of an Indemnification Claim under Section 14(a)(i), Seller
and/or the Shareholder shall not be entitled to indemnification until the aggregate amount for which indemnification is sought
collectively exceeds $5,000.00. If this threshold is reached, Seller and the Shareholder may assert an Indemnification Claim
for the full amount of the claim (going back to the first dollar) and may assert any subsequent Indemnification Claim under Section
13(a)(i) without regard to any threshold. The maximum aggregate amount for which Seller and/or the Shareholder may assert Indemnification
Claims under Section 14 shall be the Purchase Price, unless insurance coverage applies that provides additional coverage
amounts. No threshold shall apply, however, in the case of any Loss caused by, arising out of or relating to any fraud or intentional
misrepresentation.

 

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

 

16.       Survival

 

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

 

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

 

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

 

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

 

17.       Notice
of Indemnification Claim

 

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

 

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

 

    	- 14 -

     

    

 

18.       Resolution
of Claims

 

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

 

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

 

19.       Third
Party Suits

 

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

 

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

 

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

 

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

 

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

 

    	- 15 -

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

20.       Expenses

 

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

 

21.       Schedules

 

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

 

    	- 16 -

     

    

 

22.       Parties’
Review

 

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

 

23.       Publicity

 

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

 

24.       Notices

 

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

 

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

 

Well Adjusted Ventures, LLC

_______________________________________

________________________________________

 

(iii)       If
to the Shareholder:

 

Jim Burbach

1441 9th Ave., Unit 805

San Diego, CA 92101

 

(iii)       if
to TJC, to:

 

The Joint Corp.

16767 N. Perimeter Dr. Suite 240

Scottsdale, AZ 85260

Attention: Jorge Armenteros

 

with a required copy to:

 

Aaron Gagnon, Esq.

Warshawsky Seltzer, PLLC

9943 East Bell Road

Scottsdale, AZ 85260

 

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

 

    	- 17 -

     

    

 

25.       Further
Assurances and Cooperation

 

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

 

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

 

26.       Waiver

 

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

 

27.       Entire
Agreement

 

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

 

28.       Assignment

 

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

 

29.       No
Third-Party Beneficiaries

 

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

 

    	- 18 -

     

    

 

30.       Construction

 

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

 

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

 

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

 

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

 

31.       Severability

 

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

 

32.       Counterparts

 

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

 

33.       Governing
Law

 

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

 

34.       Binding
Effect

 

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

 

 

 

 

[Signatures follow below]

 

 

 

 

    	- 19 -

     

    

 

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

 

 

	“Seller”	 	“TJC”
	 	 	 
	WELL ADJUSTED VENTURES, LLC, a	 	The Joint Corp., a Delaware corporation
	California liability company	 	 
	 	 	 
	By:  	/s/ James Burbach	 	By:  	/s/ Peter Holt
	Print:  	James Burbach	 	 	Peter Holt, Chief
Executive Officer
	Title:   	Managing Member	 	 
	 	 	 
	“Shareholder”	 	 
	 	 	 
	JIM BURBACH 	 	 
	 	 	 
	/s/ James Burbach	 	 
	Jim Burbach, individually	 	 

 

 

 

 

 

 

 

Signature Page to Asset Purchase Agreement

 

 

 

 

 

 

- 20 -

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