Exhibit 10.2

EXECUTED VERSION

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

dated as of

October 25, 2018

among

XPONENTIAL FITNESS LLC and ST. GREGORY HOLDCO, LLC,

as Borrower,

THE OTHER LOAN PARTIES PARTY HERETO,

THE VARIOUS FINANCIAL INSTITUTIONS PARTY HERETO,

as Lenders,

and

MONROE CAPITAL MANAGEMENT ADVISORS, LLC,

as Administrative Agent

 


Table of Contents

Page

 

SECTION 1  

DEFINITIONS

     2  

1.1.

  Definitions      2  

1.2.

  Other Interpretive Provisions      42  

1.3.

  Accounting and Other Terms      43  
SECTION 2  

COMMITMENTS OF THE LENDERS; BORROWING, CONVERSION AND LETTER OF CREDIT PROCEDURES

     45  

2.1.

  Commitments      45  

2.2.

  Loan Procedures      45  

2.3.

  Letter of Credit Procedures      47  

2.4.

  Commitments Several      49  

2.5.

  Certain Conditions      49  

2.6.

  Defaulting Lenders      49  

2.7.

  Increase in Commitments      51  
SECTION 3  

EVIDENCING OF LOANS

     55  

3.1.

  Notes      55  

3.2.

  Recordkeeping      55  
SECTION 4  

INTEREST

     55  

4.1.

  Interest Rates      55  

4.2.

  Interest Payment Dates      56  

4.3.

  Setting and Notice of LIBOR Rates/Replacement of LIBOR Rate      56  

4.4.

  Computation of Interest      56  
SECTION 5  

FEES

     57  

5.1.

  Non-Use Fee      57  

5.2.

  Letter of Credit Fees      57  

5.3.

  Prepayment Fees      58  

5.4.

  Administrative Agent’s Fees      58  
SECTION 6  

REDUCTION OR TERMINATION OF THE REVOLVING

  
 

COMMITMENT; PREPAYMENTS

     58  

6.1.

  Reduction or Termination of the Revolving Commitment      58  

6.2.

  Prepayments      59  

6.3.

  Manner of Prepayments      60  

6.4.

  Repayments      60  
SECTION 7  

MAKING AND PRORATION OF PAYMENTS; SETOFF; TAXES

     61  

7.1.

  Making of Payments      61  

7.2.

  Application of Certain Payments      61  

 

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Table of Contents

(continued)

Page

 

7.3.

  Due Date Extension      62  

7.4.

  Setoff      62  

7.5.

  Proration of Payments      62  

7.6.

  Taxes      62  
SECTION 8  

INCREASED COSTS; SPECIAL PROVISIONS FOR LIBOR LOANS

     66  

8.1.

  Increased Costs      66  

8.2.

  Basis for Determining Interest Rate Inadequate or Unfair      66  

8.3.

  Changes in Law Rendering LIBOR Loans Unlawful      67  

8.4.

  Funding Losses      67  

8.5.

  Right of Lenders to Fund through Other Offices      67  

8.6.

  Discretion of Lenders as to Manner of Funding      68  

8.7.

  Mitigation of Circumstances; Replacement of Lenders      68  

8.8.

  Conclusiveness of Statements; Survival of Provisions      68  
SECTION 9  

REPRESENTATIONS AND WARRANTIES

     69  

9.1.

  Organization      69  

9.2.

  Authorization; No Conflict      69  

9.3.

  Validity and Binding Nature      69  

9.4.

  Financial Condition      69  

9.5.

  No Material Adverse Change      70  

9.6.

  Litigation and Contingent Liabilities      70  

9.7.

  Ownership of Properties; Liens      70  

9.8.

  Equity Ownership; Subsidiaries      70  

9.9.

  Pension Plans      71  
9.10.   Investment Company Act      72  
9.11.   Compliance with Laws      72  
9.12.   Regulation U      72  
9.13.   Taxes      72  
9.14.   Solvency, etc.      72  
9.15.   Environmental Matters      73  
9.16.   Insurance      73  
9.17.   Real Property      73  

 

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Table of Contents

(continued)

Page

 

9.18.

  Information    73

9.19.

  Intellectual Property    74

9.20.

  Burdensome Obligations    74

9.21.

  Labor Matters    74

9.22.

  Anti-Terrorism Laws    74

9.23.

  No Default    75

9.24.

  Economic Sanctions and AML    75

9.25.

  Patriot Act and Anti-Bribery    75

9.26.

  Related Agreements, etc.    75

9.27.

  Franchise Matters    76

9.28.

  Holdings and Intermediate Holdings    80

9.29.

  Location of Bank Accounts    81

9.30.

  Material Contracts    81

9.31.

  Employee and Labor Matters    81

9.32.

  No Bankruptcy Filing    82

9.33.

  Name; Jurisdiction of Organization; Organizational ID Number; Chief Place of Business; Chief Executive Office; FEIN    82

9.34.

  Hedging Agreements    82
SECTION 10  

AFFIRMATIVE COVENANTS

   82

10.1.

  Reports, Certificates and Other Information    82

10.2.

  Books, Records and Inspections    85

10.3.

  Maintenance of Property; Insurance    86

10.4.

  Compliance with Laws; Payment of Taxes and Liabilities    87

10.5.

  Maintenance of Existence, etc.    87

10.6.

  Use of Proceeds    87

10.7.

  Employee Benefit Plans    88

10.8.

  Environmental Matters    88

10.9.

  Further Assurances    88
10.10.   Deposit Accounts    89
10.11.   Post Closing Covenants    89
10.12.   Holdings Covenant    90

 

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Table of Contents

(continued)

 

       Page  
10.13.   STGH Covenant      90  
10.14.   Real Property      90  
SECTION 11  

NEGATIVE COVENANTS

     91  

11.1.

  Debt      91  

11.2.

  Liens      94  

11.3.

  [Reserved]      96  

11.4.

  Restricted Payments      96  

11.5.

  Mergers, Consolidations, Sales      98  

11.6.

  Modification of Organizational Documents      99  

11.7.

  Transactions with Affiliates      99  

11.8.

  Unconditional Purchase Obligations      100  

11.9.

  Inconsistent Agreements      100  
11.10.   Business Activities; Issuance of Equity      100  
11.11.   Investments      101  
11.12.   Restriction of Amendments to Certain Documents      103  
11.13.   Fiscal Year      103  
11.14.   Financial Covenants      103  
11.15.   Compliance with Laws      104  
11.16.   New Company Owned Locations      104  
11.17.   Non-Loan Party Subsidiaries      104  
11.18.   Canadian Defined Benefit Plans      104  
SECTION 12  

EFFECTIVENESS; CONDITIONS OF LENDING, ETC.

     104  

12.1.

  Initial Credit Extension      104  

12.2.

  Conditions      108  
SECTION 13  

EVENTS OF DEFAULT AND THEIR EFFECT

     109  

13.1.

  Events of Default      109  

13.2.

  Effect of Event of Default      111  

13.3.

  Credit Bidding      111  

13.4.

  Right to Cure Financial Covenant Breach      112  
SECTION 14  

ADMINISTRATIVE AGENT

     113  

14.1.

  Appointment and Authorization      113  

14.2.

  Issuing Lenders      113  

 

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Table of Contents

(continued)

Page

 

14.3.

  Delegation of Duties      114  

14.4.

  Exculpation of Administrative Agent      114  

14.5.

  Reliance by Administrative Agent      114  

14.6.

  Notice of Default      115  

14.7.

  Credit Decision      115  

14.8.

  Indemnification      115  

14.9.

  Administrative Agent in Individual Capacity      116  
14.10.   Successor Administrative Agent      116  
14.11.   Collateral Matters      117  
14.12.   Restriction on Actions by Lenders      117  
14.13.   Administrative Agent May File Proofs of Claim      117  
14.14.   Other Agents; Arrangers and Managers      118  
14.15.   Protective Advances      118  
SECTION 15  

GENERAL

     119  

15.1.

  Waiver; Amendments      119  

15.2.

  Confirmations      120  

15.3.

  Notices      120  

15.4.

  Computations      121  

15.5.

  Costs, Expenses      122  

15.6.

  Assignments; Participations      122  

15.7.

  Register      124  

15.8.

  GOVERNING LAW      125  

15.9.

  Confidentiality      125  
15.10.   Severability      127  
15.11.   Nature of Remedies      127  
15.12.   Entire Agreement      127  
15.13.   Counterparts      127  
15.14.   Successors and Assigns      127  
15.15.   Captions      128  
15.16.   Customer Identification – USA Patriot Act Notice      128  
15.17.   INDEMNIFICATION BY LOAN PARTIES      128  

 

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Table of Contents

(continued)

 

       Page  
15.18.   Nonliability of Lenders      129  
15.19.   FORUM SELECTION AND CONSENT TO JURISDICTION      130  
15.20.   WAIVER OF JURY TRIAL      130  
15.21.   Acknowledgement and Consent to Bail In of EEA Financial Institutions      130  
15.22.   Existing Credit Agreement      131  
SECTION 16  

JOINT AND SEVERAL LIABILITY

     132  

16.1.

  Applicability of Terms      132  

16.2.

  Joint and Several Liability      132  

16.3.

  Benefits and Best Interests      132  

16.4.

  Accommodations      132  

16.5.

  Maximum Amount      133  

16.6.

  Joint Liability Payments      133  

16.7.

  Financial Condition      133  

16.8.

  Administrative Agent Authorizations      134  

16.9.

  Unconditional Obligations      134  
16.10.   Notices      135  
16.11.   No Impairment of Obligations or Limitations of Liability      135  
16.12.   Rights of Contribution and Indemnification      135  
16.13.   Subrogation      135  
SECTION 17  

APPOINTMENT OF BORROWER REPRESENTATIVE

     135  

17.1.

  Appointment; Proceeds      135  

17.2.

  Appointment; Documentation and Other Actions      136  

17.3.

  Irrevocable Appointment; Reliance      136  

17.4.

  Termination      136  
SECTION 18  

RELEASE

     136  

18.1.

  Release      136  

18.2.

  Defense      137  

18.3.

  Final, Absolute and Unconditional Release      137  

18.4.

  Covenant      137  

 

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ANNEXES   
ANNEX A   Lenders and Pro Rata Shares   
ANNEX B   Addresses for Notices   
SCHEDULES   
SCHEDULE 1.1(a)   Disqualified Lenders   
SCHEDULE 9.6   Litigation and Contingent Liabilities   
SCHEDULE 9.8   Equity Ownership/Subsidiaries   
SCHEDULE 9.13   Reportable Transaction   
SCHEDULE 9.17   Real Property   
SCHEDULE 9.19   Intellectual Property   
SCHEDULE 9.21   Labor Matters   
SCHEDULE 9.27   Franchise Matters   
SCHEDULE 9.29   Bank Accounts   
SCHEDULE 9.30   Material Contracts   
SCHEDULE 9.33   Legal Names; Etc.   
SCHEDULE 10.11   Post-Closing Obligations   
SCHEDULE 11.1   Existing Debt   
SCHEDULE 11.2   Existing Liens   
SCHEDULE 11.11   Investments   
SCHEDULE 12.1   Debt to be Repaid   
EXHIBITS   
EXHIBIT A   Form of Note (Section 3.1)   
EXHIBIT B   Form of Compliance Certificate (Section 10.1.3)   
EXHIBIT C   Form of Assignment Agreement (Section 15.6.1)   
EXHIBIT D   Form of Notice of Borrowing (Section 2.2.2)   

 

 

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SECOND AMENDED AND RESTATED CREDIT AGREEMENT

THIS SECOND AMENDED AND RESTATED CREDIT AGREEMENT dated as of October 25, 2018 (this “Agreement”) is entered into among (i) Xponential Fitness LLC, a Delaware limited liability company and St. Gregory Holdco, LLC, a Delaware limited liability company, (ii) any Person from time to time joined hereto as a borrower party in accordance with the terms hereof (together with Xponential Fitness LLC and St. Gregory Holdco, LLC, individually and collectively referred to herein as “Borrower”), (iii) the other Loan Parties party hereto, (iv) the financial institutions that are or may from time to time become parties hereto (together with their respective successors and assigns, the “Lenders”) and (v) MONROE CAPITAL MANAGEMENT ADVISORS, LLC (in its individual capacity, “Monroe Capital”), as administrative agent for the Lenders.

RECITALS

WHEREAS, Intermediate Holdings, Borrower, the other Loan Parties party thereto, the Lenders and Monroe Capital entered into a Credit Agreement dated as of September 29, 2017 (as amended, restated, modified or supplemented prior to the date hereof, including by that certain Amended and Restated Credit Agreement dated as of June 28, 2018, the “Existing Credit Agreement”);

WHEREAS, Holdings (“Purchaser”) intends to purchase all of the Capital Securities of Pure Barre (“Seller”) via Barre Holdco, pursuant to that certain PB Acquisition Agreement pursuant to which, immediately prior to consummation of the Acquisition of Barre Holdco by Holdings, Merger Sub will merge with and into Barre Holdco, with Barre Holdco being the surviving entity (such transaction, the “Closing Date Acquisition”);

WHEREAS, Borrower has requested that the Lenders make Loans to provide the funds required to refinance the Borrowers’ indebtedness under the Existing Credit Agreement, finance a portion of the Closing Date Acquisition, to pay fees, costs and expenses incurred in connection with the foregoing, and to provide for the ongoing general corporate purposes and working capital needs of Borrower and other Loan Parties as further provided herein, in an aggregate principal amount of $145,000,000 in the form of (a) Existing Term A Loans made pursuant to the Existing Credit Agreement prior to the Closing Date, (b) Additional Term A Loans to Borrower on the Closing Date in an aggregate principal amount of $65,332,106.23, (c) Revolving Loans to Borrower from time to time in an aggregate principal amount not to exceed $10,000,000, and the Lenders are willing to do so on the terms and conditions set forth herein;

WHEREAS, the parties hereto have agreed to amend and restate the Existing Credit Agreement in its entirety.

WHEREAS, Administrative Agent and the Lenders hereby acknowledge and agree: (i) to the consummation of Closing Date Acquisition and the transactions contemplated thereby; and (ii) that the Closing Date Acquisition and the transactions contemplated thereby shall not constitute an Event of Default under this Agreement or the Existing Credit Agreement; and

 

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WHEREAS, the parties hereto intend that this Agreement not effect a novation of the obligations of Borrower or Guarantors under the Existing Credit Agreement but merely a restatement, and where applicable, an amendment to the terms governing such obligations.

In consideration of the mutual agreements herein contained, the parties hereto agree as follows:

SECTION 1

DEFINITIONS.

1.1.        Definitions. When used herein the following terms shall have the following meanings:

Account Debtor” is defined in the Guaranty and Collateral Agreement.

Account or Accounts” is defined in the UCC or PPSA, as applicable.

Acquisition” means any transaction or series of related transactions for the purpose of or resulting, directly or indirectly, in (a) the acquisition of all or a substantial portion of the assets of a Person, or of all or a substantial portion of any business or division of a Person, (b) the acquisition of in excess of 50% of the Capital Securities of any Person, or otherwise causing any Person to become a Subsidiary, or (c) a merger, amalgamation or consolidation or any other combination with another Person (other than a Person that is already a Subsidiary).

Additional Term A Loan” is defined in Section 2.1.2(a).

Additional Term A Loan Commitment” means, as to any Lender, such Lender’s commitment to make Additional Term A Loans under this Agreement. The amount of each Lender’s Additional Term A Loan Commitment is set forth on Annex A. The aggregate amount of the Additional Term A Loan Commitments of all Lenders as of the Closing Date is $65,332,106.23.

Administrative Agent” means Monroe Capital in its capacity as administrative agent for the Lenders hereunder and any successor thereto in such capacity.

Affected Loan” is defined in Section 8.3.

Affiliate” of any Person means (a) any other Person which, directly or indirectly, controls or is controlled by or is under common control with such Person, (b) any director of such Person and (c) with respect to any Lender, any entity administered or managed by such Lender or an Affiliate or investment advisor thereof and which is engaged in making, purchasing, holding or otherwise investing in commercial loans. A Person shall be deemed to be “controlled by” any other Person if such Person possesses, directly or indirectly, power to vote 5% or more of the securities (on a fully diluted basis) having ordinary voting power for the election of directors or managers or power to direct or cause the direction of the management and policies of such Person whether by contract or otherwise. Unless expressly stated otherwise herein, neither Administrative Agent nor any Lender shall be deemed an Affiliate of any Loan Party.

 

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Agent Fee Letter” means, the second amended and restated fee letter dated as of the Closing Date between Borrower and the Administrative Agent.

Agreement” is defined in the preamble of this Agreement.

AKTF” means AKT Franchise, LLC, a Delaware limited liability company.

Allocable Amount” is defined in Section 16.6.

Applicable Margin” means, as of any date of determination, the applicable rate per annum set forth in the following table that corresponds to the Total Debt to EBITDA Ratio as set forth in the most recent Compliance Certificate delivered to Administrative Agent pursuant to Section 10.1.3. For the period from the Closing Date through the date that Administrative Agent receives the Compliance Certificate for the Computation Period ending December 31, 2018, the Applicable Margin will be the rate per annum in the row styled “Level II”:

 

Level    Total Debt to EBITDA Ratio    Applicable Margin
LIBOR Loans
  Applicable Margin
Base Rate Loans

I

   ³ 4.50:1.00    6.50%   3.25%

II

   <4.50:1.00 but ³ 3.00:1.00    6.00%   2.75%

III

   < 3.00:1.00    5.50%   2.25%

Except as otherwise set forth in this definition, the Applicable Margin will be based upon the most recent Compliance Certificate. Notwithstanding the foregoing, the Applicable Margin will be re-determined quarterly on the first day of the month following the date of delivery to Administrative Agent of the applicable Compliance Certificate pursuant to Section 10.1.3. If Borrower fails to furnish or cause Borrower Representative to furnish any Compliance Certificate when that Compliance Certificate is due, then the Applicable Margin will be the rate per annum in the row styled “Level I” as of the first Business Day of the month following the date on which that Compliance Certificate was required to be delivered until the date on which that Compliance Certificate is delivered, on which date (but not retroactively), without constituting a waiver of any Default or Event of Default occasioned by the failure to timely deliver that Compliance Certificate, the Applicable Margin will be set at the rate per annum based upon the calculations disclosed by that Compliance Certificate. If any information contained in any Compliance Certificate delivered pursuant to Section 10.1.3. is shown to be inaccurate, and that inaccuracy, if corrected, would have led to the application of a higher Applicable Margin for any period than the Applicable Margin actually applied for that period, then (i) Borrower shall promptly deliver or cause to be delivered to Administrative Agent a correct Compliance Certificate for that period; (ii) the Applicable Margin will be determined as if the correct Applicable Margin (as set forth in the table above) were applicable for that period (irrespective of whether a correct Compliance Certificate is delivered); and (iii) Borrower shall promptly (but in any event within two Business Days after delivery of that corrected Compliance Certificate or after demand by Administrative Agent) deliver to Administrative Agent full payment in respect of the accrued additional interest as a result of the increased Applicable Margin for that period, which payment Administrative Agent shall promptly apply to the affected Obligations.

 

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Approved Fund” means (a) any Person (other than a natural person) engaged in making, purchasing, holding, or investing in commercial loans and similar extensions of credit and that is advised, administered, or managed by a Lender, an Affiliate of a Lender (or an entity or an Affiliate of an entity that administers, advises or manages a Lender); (b) with respect to any Lender that is an investment fund, any other investment fund that invests in loans and that is advised, administered or managed by the same investment advisor as such Lender or by an Affiliate of such investment advisor; (c) any third party which provides “warehouse financing” to a Person described in the preceding clause (a) or (b) (and any Person described in said clause (a) or (b) shall also be deemed an Approved Fund with respect to such third party providing such warehouse financing); and (d) (i) any investment company, fund, trust, securitization vehicle or conduit that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its business or (ii) any Person (other than a natural person) which temporarily warehouses loans for any Lender or any entity described in the preceding clause (i) and that, with respect to each of the preceding clauses (i) and (ii), is administered or managed by (x) a Lender, (y) an Affiliate of a Lender or (z) a Person (other than a natural person) or an Affiliate of a Person (other than a natural person) that administers or manages a Lender; provided in no event shall any Disqualified Lender be an Approved Fund.

Area Representative Agreement” means an agreement between any Company or any Subsidiary and a Franchisee under which such Franchisee (referred to as an area representative) has been granted the right to solicit and screen prospective Franchisees for, and assist such Company or such Subsidiary in providing services to, unit Franchises operating under the trade name of such Company or such Subsidiary in a designated geographical area for a defined period of time, including any addendum, amendment, extension or renewal thereof, and together with any guarantee or other instrument or agreement relating thereto.

Asset Disposition” means the sale, lease, assignment or other transfer for value (each, a “Disposition”) by any Loan Party to any Person (other than Borrower or other Loan Party) of any asset or right of such Loan Party (including, the loss, destruction or damage of any thereof or any actual condemnation, confiscation, requisition, seizure or taking thereof).

Assignee” is defined in Section 15.6.1.

Assignment Agreement” is defined in Section 15.6.1.

Assignment and Assumption Agreement” means that certain Assignment and Assumption Agreement, dated as of June 28, 2018, among TPG Growth III Fitness L.P., Sponsor and Holdings.

Attorney Costs” means, with respect to any Person, all reasonable documented out-of-pocket fees and charges of any counsel to such Person and all court costs and similar legal expenses.

Available Amount” means, as of any date of determination (each, a “Reference Date”), (a) an amount equal to the sum of (i) aggregate Excess Cash Flow for all Fiscal Years for which financial statements have been required to be delivered pursuant to Section 10.1.1, commencing

 

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with the Fiscal Year ending December 31, 2018, and ending prior to such Reference Date and (ii) the aggregate amount of Net Cash Proceeds from any issuance of Qualified Equity Interests by Holdings or other contributions to the capital of Holdings (other than equity issued in connection with the Borrower’s exercise of its Cure Right under Section 13.4), in each case, received by the Borrower after the Closing Date and prior to the applicable Reference Date; provided that all such Net Cash Proceeds must be used or applied in accordance with this Agreement within one hundred eighty (180) days of the receipt thereof or the Available Amount shall thereafter not include the amount of such Net Cash Proceeds, minus (b) the amount of prepayments required to be made in respect of such Excess Cash Flow pursuant to Section 6.2.2(a)(iv), minus (c) the aggregate usage of the Available Amount by the Loan Parties under this Agreement during the period from the Closing Date through such Reference Date. Notwithstanding anything herein to the contrary, unless (x) no Default or Event of Default has occurred and is continuing or would result from the proposed usage of the Available Amount and (y) there would be no violation of any covenant set forth in Section 11.14 for the most recently ended 12-month period for which Administrative Agent has received financial statements pursuant to Section 10.1.2, as determined on a pro forma basis, after giving effect to the proposed usage of the Available Amount as if such usage occurred on the last day of such 12-month period, using, for purposes of the calculation in clause (y), EBITDA for the most recently ended 12-month period for which Administrative Agent has received financial statements pursuant to Section 10.1.2, the Available Amount as of any Reference Date shall be $0.00.

Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution.

Bail-In Legislation” means, with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule.

Bank Product Agreements” means those certain agreements entered into from time to time between any Loan Party and a Lender or its Affiliates in connection with any of the Bank Products.

Bank Product Obligations” means all obligations, liabilities, contingent reimbursement obligations, fees, and expenses owing by the Loan Parties to any Lender or its Affiliates pursuant to or evidenced by the Bank Product Agreements and irrespective of whether for the payment of money, whether direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising, and including all such amounts that a Loan Party is obligated to reimburse to Administrative Agent or any Lender as a result of Administrative Agent or such Lender purchasing participations or executing indemnities or reimbursement obligations with respect to the Bank Products provided to the Loan Parties pursuant to the Bank Product Agreements.

Bank Products” means any service provided to, facility extended to, or transaction entered into with, any Loan Party by any Lender or its Affiliates consisting of, (a) deposit accounts, (b) cash management services, including, controlled disbursement, lockbox, electronic funds transfers (including, book transfers, fedwire transfers, ACH transfers), online reporting and other services relating to accounts maintained with any Lender or its Affiliates, (c) debit cards

 

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and credit cards, or (d) so long as prior written notice thereof is provided by Lender (or its Affiliate) providing such service, facility or transaction and Administrative Agent consents in writing to its inclusion as a Bank Product, any other service provided to, facility extended to, or transaction entered into with, any Loan Party by a Lender or its Affiliates. No Hedging Agreements or Hedging Obligations will be deemed Bank Products or included as Bank Product Obligations without Administrative Agent’s prior written consent.

Bankruptcy Code” means the Federal Bankruptcy Reform Act of 1978 (11 U.S.C. §101, et seq.), as amended and in effect from time to time and the regulations issued from time to time thereunder.

Barre Holdco” means Barre Holdco, LLC, a Delaware limited liability company.

Base Rate” means, at any time, a fluctuating rate per annum equal to the greatest of (a) the Federal Funds Rate plus 0.5%, (b) the Prime Rate, (c) 4.25% and (d) the LIBOR Rate plus 1.0%.

Base Rate Loan” means any Loan which bears interest at or by reference to the Base Rate.

Borrower” is defined in the preamble of this Agreement.

Borrower Representative” means Xponential Fitness LLC, a Delaware limited liability company.

Borrowing Availability” means the lesser of (a) the Revolving Commitment and (b) to the extent Borrower requests Revolving Loans and Letters of Credit in an aggregate principal amount in excess of $1,000,000, (i) EBITDA for the most recently ended 12 month period for which Administrative Agent has received financial statements pursuant to Section 10.1.2 multiplied by the maximum Total Debt to EBITDA Ratio permitted under Section 11.14.2 for the most recently ended Computation Period minus (ii) outstanding Total Debt (other than Revolving Outstandings).

BSA” is defined in Section 9.24.

Business Day” means any day other than a Saturday, Sunday or other day on which commercial banks are authorized to close under the laws of, or are in fact closed in, Illinois and, in the case of a Business Day which relates to a LIBOR Loan, on which dealings are carried on in the London interbank eurodollar market.

Canadian AML Laws” means the Proceeds of Crime (Money Laundering) and Terrorism Financing Act (Canada), the Criminal Code (Canada), the Special Economic Measures Act (Canada), the Corruption of Foreign Public Officials Act (Canada), the Freezing Assets of Corrupt Foreign Public Officials Act (Canada), the United Nations Act and other applicable Canadian anti-money laundering and “know your client” policies, regulations, laws or rules, together with any guidelines or orders thereunder and any similar Canadian legislation, rules, regulations and interpretations thereunder or related thereto.

 

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Canadian Defined Benefit Plan” means any Canadian Pension Plan that contains a “defined benefit provision” as defined in subsection 147.1(1) of the ITA, excluding any Canadian Multi-Employer Plans, whether existing on the Closing Date or which would be considered a Canadian Defined Benefit Plan if assumed, adopted or otherwise participated in or contributed to by a Loan Party thereafter.

Canadian Multi-Employer Plan” means any Canadian Defined Benefit Plan to which a Loan Party or a Subsidiary is required to contribute pursuant to a collective agreement or participation agreement and which is not maintained or administered by a Loan Party or any of its Affiliates, whether existing on the Closing Date or which would be considered a Canadian Multi-Employer Plan if assumed, adopted or otherwise participated in or contributed to by a Loan Party or a Subsidiary thereafter.

Canadian Pension Plans” means each plan which is a “registered pension plan” as defined in the ITA or which is required to be registered under federal or provincial pension benefits standards legislation established, maintained or contributed to by any Loan Party or any Subsidiary, or under which any Loan Party or any Subsidiary has any liability or contingent liability, in relation to any employees or former employees that it may have in Canada.

Capital Expenditures” means all expenditures which, in accordance with GAAP, would be required to be capitalized and shown on the consolidated balance sheet of Borrower, including expenditures in respect of Capital Leases, but excluding any expenditures (a) made in connection with the replacement, substitution or restoration of assets to the extent financed from insurance proceeds (or other similar recoveries) paid on account of the loss of or damage to the assets being replaced or restored, (b) made with Net Cash Proceeds from awards of compensation arising from the taking by eminent domain or condemnation of the assets being replaced, (c) made with Net Cash Proceeds from any issuance of Capital Securities by any Loan Party directly or indirectly to Sponsor or other existing holders of Capital Securities to the extent used solely to fund Capital Expenditures, (d) made with Net Cash Proceeds of dispositions permitted under this Agreement, (e) made by Holdings or any Subsidiary to effect leasehold improvements to any property leased by Holdings or such Subsidiary as lessee, to the extent that such expenses have been reimbursed by the landlord, and (f) actually paid for by a third party (excluding Holdings or any Subsidiary) and for which none of Holdings or any Subsidiary has provided or is required to provide or incur, directly or indirectly, any consideration or monetary obligation to such third party or any other Person (whether before, during or after such period). For purposes of this definition, (i) the purchase price of equipment that is purchased substantially simultaneously with the trade-in or sale of existing equipment (or proceeds contributed by an unrelated third party) shall be included in Capital Expenditures only to the extent of the gross amount of such purchase price less the credit granted by the seller of such equipment for the equipment being traded in at such time or the amount of such proceeds, as the case may be, (ii) the aggregate consideration paid in connection with permitted investments shall not be included in Capital Expenditures, and (iii) the purchase price of equipment and leasehold improvements purchased in connection with the Fueled Collective Build-Out shall not be reduced by any landlord reimbursement payment.

Capital Lease” means, with respect to any Person, any lease of (or other agreement conveying the right to use) any real or personal property by such Person that, in conformity with

 

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GAAP, is accounted for as a capital lease on the balance sheet of such Person, provided however, for purposes of this Agreement, any obligations of a Person under a lease that is not (or would not be) required to be classified and accounted for as a capitalized lease on a balance sheet of such Person under GAAP as in effect as of the Closing Date shall not be treated as a capitalized lease as a result of the adoption of changes in GAAP or changes in the application of GAAP.

Capital Securities” means, with respect to any Person, all shares, interests, participations or other equivalents (however designated, whether voting or non-voting) of such Person’s capital, whether now outstanding or issued or acquired after the Closing Date, including common shares, preferred shares, membership interests in a limited liability company, limited or general partnership interests in a partnership, interests in a trust, interests in other unincorporated organizations or any other equivalent of such ownership interest.

Cash Collateralize” means to deliver cash collateral to an Issuing Lender, to be held as cash collateral for outstanding Letters of Credit, pursuant to documentation satisfactory to such Issuing Lender and in an amount equal to 103% of the Stated Amount of such outstanding Letters of Credit. Derivatives of such term have corresponding meanings.

Cash Equivalent Investment” means, at any time, (a) any evidence of Debt, maturing not more than one year after such time, issued or guaranteed by the United States Government or any agency thereof, (b) commercial paper, maturing not more than one year from the date of issue, or corporate demand notes, in each case (unless issued by a Lender or its holding company) rated at least A-l by Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc. or P-l by Moody’s Investors Service, Inc., (c) any certificate of deposit, time deposit or banker’s acceptance, maturing not more than one year after such time, or any overnight Federal funds transaction that is issued or sold by any Lender or its holding company (or by a commercial banking institution that is a member of the Federal Reserve System and has a combined capital and surplus and undivided profits of not less than $500,000,000), (d) any repurchase agreement entered into with any Lender (or commercial banking institution of the nature referred to in clause (c)) which (i) is secured by a fully perfected security interest in any obligation of the type described in any of clauses (a) through (c) above and (ii) has a market value at the time such repurchase agreement is entered into of not less than 100% of the repurchase obligation of such Lender (or other commercial banking institution) thereunder, (e) money market accounts or mutual funds which invest exclusively in assets satisfying the foregoing requirements, and (f) other short term liquid investments approved in writing by Administrative Agent.

CB Purchase Agreement” means that certain Unit Purchase Agreement, dated as of the Original Closing Date, by and among, Holdings, as buyer, Montgomery Ventures Investments, LLC, as seller, CycleBar Holdco, LLC, a Delaware limited liability company, and the CB Principals (as defined therein) named therein.

CBF” means CycleBar Franchising, LLC, an Ohio limited liability company.

CFC” means any (i) foreign Subsidiary that is a “controlled foreign corporation” within the meaning of Section 957 of the Code or (ii) domestic Subsidiary substantially all of the assets

 

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of which consist of the stock of one or more foreign Subsidiaries each of which is a “controlled foreign corporation” within the meaning of Section 957 of the Code.

Change in Law” means the adoption or phase-in of, or any change in, in each case after the date of this Agreement, any applicable law, rule, or regulation, or any change in the interpretation or administration of any applicable law, rule, or regulation by any governmental authority, central bank, or comparable agency charged with the interpretation or administration thereof, or compliance by any Lender with any request or directive (whether or not having the force of law) of any such authority, central bank, or comparable agency. For purposes of this Agreement, the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines, or directives thereunder or issued in connection therewith, and all requests, rules, guidelines, or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States regulatory authorities, in each case pursuant to Basel III, will, in each case, be deemed to have been adopted and gone into effect after the date of this Agreement.

Change of Control” means the occurrence of any of the following events: (a) Sponsor shall cease to, directly or indirectly, (i) own and control at least 51% of the economic and voting interests of Holdings or (ii) possess the right to elect (through contract, ownership of voting securities or otherwise) at all times a majority of the Governing Body of Holdings or to direct the management policies and decisions of Holdings; (b) Sponsor shall receive consideration in excess of $20,000,000 from the sale or disposition of the Capital Securities of Holdings (or of any direct or indirect parent of Holdings); or (c) Holdings shall cease to, directly or indirectly, own or control 100% (or in the case of a Subsidiary that is not a Wholly-Owned Subsidiary, the applicable percentage owned by Holdings of such Subsidiary on the Closing Date) of each class of the outstanding Capital Securities of each Loan Party and Subsidiary (other than (i) Holdings, (ii) in the case of a Subsidiary that is not a Wholly-Owned Subsidiary, the applicable percentage of such entity owned by Holdings on the Closing Date and (iii) any Loan Party or Subsidiary that ceases to exist or is otherwise sold, transferred or otherwise disposed of following a transaction permitted by Section 11.5).

Closing Date” is defined in Section 12.1.

Closing Date Acquisition” is defined in the recitals of this Agreement.

Club Pilates Purchase Agreement” means that certain Unit Purchase Agreement by and among TPG Growth III Fitness, LP, as Buyer, the Holders of all units of the Company, Club Pilates Franchise, LLC, as the Company, and Anthony Geisler, in his individual capacity and as the unitholder representative dated as of May 2, 2017.

Club Pilates Royalty Buyout” means the buy-out price payable by Club Pilates Franchise, LLC to St. Gregory Development Group, LLC in respect of the exercise of the buyout of its performance bonus obligation pursuant to that certain Independent Contractor Agreement, dated June 1, 2015, by and between St. Gregory Development Group and Club Pilates Franchise, LLC.

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

 

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Collateral” means “Collateral” (as defined in the Guaranty and Collateral Agreement) and any and all other property now or hereafter securing Obligations.

Collateral Access Agreement” means an agreement in form and substance reasonably satisfactory to Administrative Agent pursuant to which a mortgagee or lessor of real property on which collateral is stored or otherwise located, or a warehouseman, processor or other bailee of Inventory or other property owned by any Loan Party, acknowledges the Liens of Administrative Agent, waives or subordinates any Liens held by such Person on such property, and, in the case of any such agreement with a mortgagee or lessor, permits Administrative Agent reasonable access to and use of such real property following the occurrence and during the continuance of an Event of Default to remove or sell any Collateral stored or otherwise located thereon.

Collateral Documents” means, collectively, the Guaranty and Collateral Agreement, each Mortgage, each Mortgage Related Document, each Collateral Access Agreement, each Pledge Agreement, each Intellectual Property Security Agreement, each control agreement, the Insurance Assignments, the Reaffirmation Agreement and any other agreement or instrument pursuant to which Borrower or any Loan Party grants or purports to grant collateral to Administrative Agent for the benefit of the Lenders or otherwise relates to such Collateral.

Commitment” means, as to any Lender, such Lender’s commitment to make Loans under this Agreement, and to issue or participate in Letters of Credit, under this Agreement. The initial amount of each Lender’s Commitment is set forth on Annex A.

Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, and any successor statute.

Companies” means AKTF; CPF; Cycle Bar Holdco, LLC, a Delaware limited liability company; LBF; LBIP; LBP; Pure Barre; RHF; RHT; SLF; St. Gregory Holdco, LLC, a Delaware limited liability company; Holdings, Intermediate Holdings; Xponential Fitness LLC; and Yoga Six.

Companies’ Knowledge” means the knowledge of (i) any of the following personnel of the Companies or any of their Subsidiaries, as imputed to such personnel after reasonable inquiry and investigation: Jeffrey D. Herr, James M. Jagers, Anthony Geisler, Megan Moen, John Meloun and Shaun Grove, (ii) any other senior officer involved in franchise operations or sales of any such Companies or any of their Subsidiaries and (iii) any other Person who has been identified in Item 2 of any Franchisor’s FDDs within the past three (3) years, which Item 2s are incorporated herein by reference.

Compliance Certificate” means a Compliance Certificate in substantially the form of Exhibit B.

Computation Period” means each period of four consecutive Fiscal Quarters ending on the last day of a Fiscal Quarter.

Consolidated Depreciation and Amortization Expense” means, with respect to any Person for any period, the total amount of depreciation and amortization expense of such Person and its Subsidiaries, including the amortization of deferred financing fees, intangible assets (including goodwill), debt issuance costs, commissions, fees and expenses of such Person and its

 

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Subsidiaries for such period on a consolidated basis and otherwise determined in accordance with GAAP.

Consolidated Net Income” means, with respect to Holdings and its Subsidiaries for any period, the consolidated net income (or loss) of Holdings and its Subsidiaries for such period determined on a consolidated basis in accordance with GAAP (other than (x) the recognition of franchise fee income (including without limitation related income arising out of equipment sales the proceeds of which have been received) which income it is agreed will continue to be recognized at the time of signing of a new franchise agreement consistent with past practices and any change thereto shall require the consent of the Administrative Agent in its sole discretion in writing and (y) other deviations from GAAP as are consented to by the Administrative Agent in its sole discretion in writing) excluding (i) any after tax gains or non-cash losses attributable to the sale, exchange or other disposition of assets outside the ordinary course of business, (ii) any extraordinary, unusual or non-recurring gains or non-cash losses, charges or expenses, and (iii) any non-cash gains and non-cash losses from any Hedging Obligation or any ineffectiveness recognized in earnings related to qualifying hedge transactions or the fair value of changes therein recognized in earnings for derivatives that do not qualify as hedge transactions, in each case, in respect of Hedging Obligations.

Contingent Liability” means, with respect to any Person, each obligation and liability of such Person and all such obligations and liabilities of such Person incurred pursuant to any agreement, undertaking or arrangement by which such Person: (a) guarantees, endorses or otherwise becomes or is contingently liable upon (by direct or indirect agreement, contingent or otherwise, to provide funds for payment, to supply funds to, or otherwise to invest in, a debtor, or otherwise to assure a creditor against loss) the indebtedness, dividend, obligation or other liability of any other Person in any manner (other than by endorsement of instruments in the course of collection), including any indebtedness, dividend or other obligation which may be issued or incurred at some future time; (b) guarantees the payment of dividends or other distributions upon the Capital Securities of any other Person; (c) undertakes or agrees (whether contingently or otherwise): (i) to purchase, repurchase, or otherwise acquire any indebtedness, obligation or liability of any other Person or any property or assets constituting security therefor, (ii) to advance or provide funds for the payment or discharge of any indebtedness, obligation or liability of any other Person (whether in the form of loans, advances, stock purchases, capital contributions or otherwise), or to maintain solvency, assets, level of income, working capital or other financial condition of any other Person, or (iii) to make payment to any other Person other than for value received; (d) agrees to lease property or to purchase securities, property or services from such other Person with the purpose or intent of assuring the owner of such indebtedness or obligation of the ability of such other Person to make payment of the indebtedness or obligation; (e) induces the issuance of, or in connection with the issuance of, any letter of credit for the benefit of such other Person; or (f) undertakes or agrees otherwise to assure a creditor against loss. The amount of any Contingent Liability shall (subject to any limitation set forth herein) be equal to the amount of the liability so guaranteed or otherwise supported or, if less, the amount to which such Contingent Liability is specifically limited.

Controlled Group” means all members of a controlled group of corporations, all members of a controlled group of trades or businesses (whether or not incorporated) under common control and all members of an affiliated service group which, together with Borrower or

 

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any of its Subsidiaries, are treated as a single employer under Section 414(b) or (c) of the Code or, solely with respect to Section 412 of the Code, Section 414(m) or (o) of the Code.

CPF” means Club Pilates Franchise, LLC, a Delaware limited liability company.

Current Assets” means, with respect to any Person, all current assets of such Person as of any date of determination calculated in accordance with GAAP, but excluding cash, Cash Equivalent Investments and debts due from Affiliates.

Current Liabilities” means, with respect to any Person, all liabilities that should, in accordance with GAAP, be classified as current liabilities, and in any event shall include all Debt payable on demand or within one year from any date of determination without any option on the part of the obligor to extend or renew beyond such year, all accruals for federal or other taxes based on or measured by income and payable within such year, but excluding the current portion of long-term debt required to be paid within one year, the aggregate outstanding principal balance of the Revolving Loan or the Term Loan and any outstanding letters of credit.

Debt” of any Person means, without duplication, (a) all indebtedness of that Person for borrowed money; (b) all indebtedness evidenced by bonds, debentures, notes or similar instruments; (c) all obligations of that Person as lessee under Capital Leases which have been or should be recorded as liabilities on a balance sheet of that Person in accordance with GAAP as in effect as of the Closing Date and shall not be treated as a Capital Lease as a result of the adoption of changes in GAAP or changes in the application of GAAP; (d) all obligations of that Person to pay the deferred purchase price of property or services (excluding trade or similar accounts payable incurred in the ordinary course of business); (e) all indebtedness secured by a Lien on the property of that Person, whether or not that indebtedness has been assumed by that Person, but if that Person has not assumed or otherwise become liable for that indebtedness, then that indebtedness will be measured at the fair market value of the property securing that indebtedness at the time of determination; (f) all obligations, contingent or otherwise, with respect to the face amount of all letters of credit (whether or not drawn), bankers’ acceptances, and similar obligations issued for the account of that Person (including the Letters of Credit); (g) all Hedging Obligations of that Person; (h) all Contingent Liabilities of that Person; (i) all Debt of any partnership of which that Person is a general partner; (j) all non-compete payment obligations, earn-outs, and similar obligations; (k) all monetary obligations under any receivables factoring, receivable sale, or similar transactions and all monetary obligations under any synthetic lease, tax ownership/operating lease, off-balance sheet financing, or similar financing; and (l) any Disqualified Equity Interests of that Person or other equity instrument of that Person, whether or not mandatorily redeemable, that under GAAP is characterized as debt, whether pursuant to financial accounting standards board issuance No. 150 or otherwise.

Debt to be Repaid” means Debt listed on Schedule 12.1.

Default” means any event that, if it continues uncured, will, with lapse of any applicable cure period or notice or both, constitute an Event of Default.

Defaulting Lender” means any Lender that (a) has failed to fund any portion of the Loans or participations in Letters of Credit required to be funded by it hereunder within one

 

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Business Day of the date required to be funded by it hereunder, (b) has otherwise failed to pay over to Administrative Agent or any other Lender any other amount required to be paid by it hereunder within one Business Day of the date when due, unless the subject of a good faith dispute, (c) has been deemed or has a parent company that has been deemed insolvent or become the subject of a bankruptcy or Insolvency Proceeding, (d) has notified Borrower, Administrative Agent, any Issuing Lender or any Lender that it does not intend to comply with any of its funding obligations under this Agreement or has made a public statement to the effect that it does not intend to comply with its funding obligations under this Agreement or under other agreements in which it commits to extend credit or (e) has failed to confirm within three Business Days of a request by Administrative Agent that it will comply with the terms of this Agreement relating to its obligations to fund Loans and participations in then outstanding Letters of Credit.

Designated Proceeds” is defined in Section 6.2.2(a).

Development Agreement” means an agreement between any Company or any Subsidiary and a Franchisee under which the Franchisee has been granted the right to open more than one Franchise under the trade name of such Company or such Subsidiary within a designated geographical area and within a defined period of time, including any addendum, amendment, extension or renewal thereof, and together with any guarantee or other instrument or agreement relating thereto.

Disposition” is defined in the definition of Asset Disposition.

Disqualified Equity Interest” means any Capital Security that, by its terms (or by the terms of any security or other Capital Security into which it is convertible or for which it is exchangeable), or upon the happening of any event or condition, in each case before the date that is 180 days after the Termination Date, (a) matures or is mandatorily redeemable (other than solely for Qualified Equity Interests), pursuant to a sinking-fund obligation or otherwise (except as a result of a change of control or asset sale so long as any rights of the holders thereof upon the occurrence of a change of control or asset sale event are subject to the prior repayment in full of the Loans and all other Obligations that are accrued and payable and the termination of the Commitments); (b) is redeemable at the option of the holder thereof (other than solely for Qualified Equity Interests), in whole or in part; (c) provides for the scheduled payments of dividends in cash; or (d) is or becomes convertible into or exchangeable for Debt or any other Capital Securities that would constitute Disqualified Equity Interests.

Disqualified Lender” means so long as no Specified Event of Default under clauses (i) or (ii) of such definition has occurred and is continuing (a) each of those certain banks, financial institutions and other institutional lenders and entities identified on Schedule 1.1(a) as delivered and acceptable to Administrative Agent on the Closing Date (which schedule (i) may be updated from time to time with the written consent of Administrative Agent (which consent shall not be unreasonably withheld) and (ii) shall be limited to five or less entities at all times), (b) each competitor of any Loan Party that is identified in writing by Borrower to Administrative Agent and (c) in the case of each of clauses (a) and (b), any of their Affiliates (excluding any fund that is primarily engaged in the making, purchasing, holding or otherwise investing in commercial loans and other similar extensions of credit in the ordinary course) that are either (i) identified in

 

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writing by Borrower to Administrative Agent on or before the Closing Date with respect to affiliates of the financial institutions referenced in clause (a) or at any time with respect to the competitors referenced in clause (b) or (ii) readily identifiable on the basis of such Affiliate’s name.

Dividend Payment Conditions” means, with respect to any Person, that each of the following are true as of any relevant date of determination both before and after giving effect to any distribution (w) EBITDA shall be at least $32,000,000 calculated for the trailing twelve (12)-month period ending on the last day of the most recently completed fiscal quarter with respect to which the Administrative Agent has received financial statements pursuant to Section 10.1.2, (x) the Total Debt to EBITDA Ratio for the twelve month period ending as of the calendar month then most recently ended for which financial statements pursuant to Section 10.1.1 or 10.1.2 have been delivered to Administrative Agent (such pro forma ratio to be determined as if such payment was made as of the first day of such period covered thereby), is the lesser of (i) 4.25:1.00 and (ii) the applicable compliance level for the most recently ended Fiscal Quarter less 0.25, (y) Borrower shall have Liquidity of at least $2,000,000 before and after giving effect to the proposed payment and (z) the Fixed Charge Coverage Ratio for the twelve month period ending as of the calendar month then most recently ended for which financial statements pursuant to Section 10.1.1 or 10.1.2 have been delivered to Administrative Agent (such pro forma ratio to be determined as if any Existing Earn-Out Obligation was a Fixed Charge), is no less than 1.20:1.00.

Dollar” and the sign “$” mean lawful money of the United States of America.

EBITDA” means, with respect to any Person for any period, the Consolidated Net Income of such Person for such period:

 

  (a)

increased (without duplication) by the following, in each case (other than clauses (vii) and (ix)) to the extent deducted (and not added back) in determining Consolidated Net Income for such period:

 

  (i)

any provision for (or less any benefit, including income tax credits and refunds, from) income taxes (including franchise, gross receipts and single business taxes imposed in lieu of income taxes); plus

 

  (ii)

Consolidated Depreciation and Amortization Expense of such Person for such period; plus

 

  (iii)

the amount of any documented and clearly identifiable restructuring charges; provided that the amounts added to EBITDA pursuant to this clause (iii) shall not exceed 25% of EBITDA for the period ending after September 30, 2018 but on or prior to December 31, 2019 (provided that no more than 15% of such amount is derived from Pure Barre and no more than 10% of such amount is derived from Loan Parties other than Pure Barre) and 5% of EBITDA for any period ending after December 31, 2019;

 

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and provided further, that amounts added to EBITDA pursuant to this clause (iii) when aggregated with amounts added to EBITDA pursuant to clause (vi) (other than pursuant to clause (vi)(1)), clause (vii) and Section 1.3(c) shall not exceed (i) 40% of EBITDA for any period ending after December 31, 2018 but on or prior to March 31, 2019, (ii) 35% of EBITDA for any period ending after March 31, 2019 but on or prior to June 30, 2019, (iii) 30% of EBITDA for any period ending after June 30, 2019 but on or prior to September 30, 2019, (iv) 25% of EBITDA for any period ending after September 30, 2019 but on or prior to December 31, 2019 and (iv) 10% of EBITDA for any period ending thereafter; plus

 

  (iv)

any other non-cash charges or adjustments, including (A) any write offs or write downs reducing Consolidated Net Income for such period, (B) equity-based awards compensation expense and expenses related to or associated with deferred compensation programs, (C) losses on sales, disposals or abandonment of, or any impairment charges or asset write-down or write-off related to, intangible assets, long-lived assets, inventory and investments in debt and equity securities, (D) all losses from investments recorded using the equity method, (E) charges for facilities closed prior to the applicable lease expiration, and (F) non-cash expenses in connection with new studio or other facility openings and closings; plus

 

  (v)

the amount of (i) board of directors fees not to exceed $500,000 in the aggregate for such period and (ii) any management, monitoring, consulting and advisory fees (including termination and transaction fees) and related indemnities and expenses paid or accrued in such period under the Management Agreement; plus

 

  (vi)

(1) all fees, costs, charges or expenses in connection with acquisitions and Investments (including Permitted Acquisitions) including without limitation, consulting fees paid in connection with the Closing Date Acquisition, whether or not such acquisitions are consummated; provided, (A) with respect to acquisitions and Investments (other than the Closing Date Acquisition) that are consummated after the Closing Date, such fees, costs, charges or expenses (a) are incurred within 120 days following the consummation of such acquisition or Investment and (b) shall not exceed (i) $4,000,000 in the aggregate in any period ending on or prior to December 31, 2019 and (ii) $1,500,000 for any period ending after December 31, 2019, and (B) with respect to acquisitions and Investments which are not consummated, the aggregate amount of such fees, costs, charges or expenses added back shall not exceed (x) $1,275,000 in the aggregate for such period with respect to any period ending on or prior to March 31,

 

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2019 and (y) $680,000 in the aggregate for such period with respect to any period ending after March 31, 2019 and (2) the amount of extraordinary, nonrecurring or unusual losses (including all fees and expenses relating thereto), charges or expenses, integration costs, transition costs, pre-opening, opening, consolidation and closing costs for facilities or studios, costs and operating expenses incurred in connection with any strategic initiatives or attributable to the implementation of cost saving initiatives, costs or accruals or reserves incurred in connection with acquisitions (including the Related Transactions and Permitted Acquisitions, and whether or not such acquisitions are consummated) whether on, after or prior to the Closing Date, other business optimization expenses (including costs and expenses relating to business optimization programs and new systems design and implementation costs), severance costs and expenses, one-time compensation charges, retention or completion bonuses, executive recruiting costs, consulting fees, restructuring costs and reserves, and curtailments or modifications to pension and postretirement employee benefit plans; provided, that the amounts added to EBITDA pursuant to this clause (vi)(2) shall not exceed 20% of EBITDA for such period; and provided further, that amounts added to EBITDA pursuant to this clause (vi) (other than pursuant to clause (vi)(1)) when aggregated with amounts added to EBITDA pursuant to Section 1.3(c), clause (iii) and clause (vii) shall not exceed (i) 40% of EBITDA for any period ending after December 31, 2018 but on or prior to March 31, 2019, (ii) 35% of EBITDA for any period ending after March 31, 2019 but on or prior to June 30, 2019 (iii) 30% of EBITDA for any period ending after June 30, 2019 but on or prior to September 30, 2019, (iv) 25% of EBITDA for any period ending after September 30, 2019 but on or prior to December 31, 2019 and (iv) 10% of EBITDA for any period ending thereafter; plus

 

  (vii)

the amount of “run-rate” cost savings, cost synergies and operating expense reductions related to restructurings, cost savings initiatives or other initiatives that are projected by the Borrower in good faith to result from Permitted Acquisitions and Investments permitted by Section 11.11 (1) with respect to which substantial steps have been taken, in each case, during the 15 month period following such Permitted Acquisition or Investment and (2) with respect to which substantial steps are expected to be taken (in the good faith determination of the Borrower) on or before June 30, 2019 in an amount not to exceed $900,000 in any such period (provided that in each case, such cost savings, cost synergies or operating expense reductions shall be certified by management of the Borrower and calculated on a pro forma basis as though such cost savings, cost synergies or operating expense reductions had been realized on the

 

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first day of such period), net of the amount of actual benefits realized from such actions during such period (it is understood and agreed that “run-rate” means the full recurring benefit that is associated with any action taken or with respect to which substantial steps have been taken (which adjustments shall exclude the annualization of any studio royalties and may be incremental to (but not duplicative of) pro forma cost savings, cost synergies or operating expense reduction adjustments made pursuant to Section 1.3(c)); provided that such cost savings, cost synergies and operating expenses are (i) reasonably identifiable and factually supportable; and (ii) shall not exceed $2,500,000 with respect to Pure Barre and $1,000,000 with respect to all other brands (excluding amounts associated with brands related to the Original Related Transactions in an amount not to exceed $1,250,000); and provided further that the amounts added to EBITDA pursuant to this clause (vii) shall not exceed 20% of EBITDA for such period; and provided further, that amounts added to EBITDA pursuant to this clause (vii) when aggregated with amounts added to EBITDA pursuant to clause (iii) and clause (vi) (other than pursuant to clause (vi)(1)) shall not exceed (i) 40% of EBITDA for any period ending after December 31, 2018 but on or prior to March 31, 2019, (ii) 35% of EBITDA for any period ending after March 31, 2019 but on or prior to June 30, 2019 (iii) 30% of EBITDA for any period ending after June 30, 2019 but on or prior to September 30, 2019, (iv) 25% of EBITDA for any period ending after September 30, 2019 but on or prior to December 31, 2019 and (iv) 10% of EBITDA for any period ending thereafter; plus

 

  (viii)

any non-cash costs or expense incurred by Holdings or a Subsidiary pursuant to any management equity plan or stock option plan or any other management or employee benefit plan or agreement; plus

 

  (ix)

cash receipts (or any netting arrangements resulting in reduced cash expenditures) not representing EBITDA or Consolidated Net Income in any period to the extent non-cash gains relating to such income were deducted in the calculation of EBITDA pursuant to clause (b) below for any previous period and not added back; plus

 

  (x)

Interest Expense for such period; plus

 

  (xi)

to the extent covered by insurance and actually reimbursed in cash, expenses with respect to liability or casualty events; plus

 

  (xii)

any proceeds of a business interruption insurance claim actually received in cash and solely to the extent replacing lost profits; plus

 

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  (xiii)

any losses or start-up costs or expenses (excluding marketing costs and expenses funded or reasonably and in good faith expected to be funded with amounts contributed by franchisees in to marketing funds) incurred and reducing Consolidated Net Income for such period; provided that with respect to any test period, such amounts (A) be solely and directly attributable to any brand acquired by Borrower or any other Loan Party during the trailing twelve month period following the acquisition of such brand, (B) shall not exceed an amount equal to (i) $1,000,000 with respect to any brand in any period, (ii) $5,000,000, in the aggregate for all brands in any period ending on or prior to June 30, 2019, (iii) $2,500,000 in the aggregate for all brands in any period ending after June 30, 2019 but on or prior to December 31, 2019, (iv) $1,500,000 in the aggregate for any period ending after December 31, 2019 but on or prior to March 31, 2020, (v) $1,000,000 in the aggregate for any period ending after March 31, 2020 but on or prior to June 30, 2020 and (vi) $0 in the aggregate for an period ending after June 30, 2020 and (C) be supported by documentation to the satisfaction of the Administrative Agent; plus

 

  (xiv)

[intentionally omitted]; plus

 

  (xv)

solely with respect to the testing of financial covenants all reasonable and documented fees or expenses incurred or paid by Holdings, Borrower or any Subsidiary in connection with the consummation of the Original Related Transactions, including payments to officers, employees and directors as change of control payments, severance payments and charges for repurchase or rollover of, or modifications to, stock options, provided that such fees or expenses shall not (together with all adjustments pursuant to clause (xiii)) exceed $3,955,000 in the aggregate and shall be incurred within 180 days of the Closing Date; plus

 

  (xvi)

all reasonable and documented fees, costs, charges or expenses incurred or paid by Holdings, Borrower or any Subsidiary in connection with the consummation of the Closing Date Acquisition, including payments to officers, employees and directors as change of control payments, severance payments and charges for repurchase or rollover of, or modifications to, stock options; provided that such fees, costs, charges or expenses shall not exceed $5,000,000 in the aggregate and shall be incurred within 180 days of the Closing Date; plus

 

  (xvii)

to the extent funded with proceeds of Incremental Loans and deducted from Consolidated Net Income, up to $10,000,000 invested by the Borrowers on or prior to December 31, 2019 in

 

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franchisees in exchange for longer contract terms from such franchisees.

 

  (b)

decreased (without duplication) by the following, in each case to the extent included in determining Consolidated Net Income for such period:

 

  (i)

non-cash gains increasing Consolidated Net Income of such Person for such period, excluding any non-cash gains to the extent they represent the reversal of an accrual or reserve for a potential cash item that reduced EBITDA in any prior period; plus

 

  (ii)

any non-cash gains with respect to cash actually received in a prior period unless such cash did not increase EBITDA in such prior period; plus

 

  (iii)

extraordinary gains and unusual or non-recurring gains (less all fees and expenses relating thereto); plus

 

  (iv)

in each case to the extent included in determining such Consolidated Net Income for such period and without duplication, the amount of positive EBITDA of Subsidiaries that have not guaranteed the Obligations hereunder and provided Liens on their assets securing the Obligations for such period;

 

  (c)

increased or decreased (without duplication) by, as applicable, any adjustments resulting from the application of FASB Accounting Standards Codification 460, Guarantees.

For purposes of determining compliance with any financial test or ratio hereunder, EBITDA (computed in accordance with the terms of this definition) of any Target acquired in a Permitted Acquisition by Holdings or any Subsidiary during such period shall be included in determining EBITDA of Holdings and its Subsidiaries for any period as if such Target was acquired at the beginning of such period. Notwithstanding the foregoing, the amount added to EBITDA pursuant to Section 1.3(c), clauses (a)(iii), (a)(vi) (other than pursuant to clause (a)(vi)(1)), (a)(vii) and (a)(xiii) may in the aggregate not exceed (i) 55% of EBITDA of Holdings and its Subsidiaries for any period ending on or prior to December 31, 2018 (provided that EBTIDA attributable to Pure Barre shall not exceed $6,000,000 of such amount), (ii) 50% of EBITDA of Holdings and its Subsidiaries for any period ending after December 31, 2018 but on or prior to March 31, 2019 (provided that EBTIDA attributable to Pure Barre shall not exceed $6,000,000 of such amount), (iii) 45% of EBITDA of Holdings and its Subsidiaries for any period ending after March 31, 2019 but on or prior to June 30, 2019 (provided that EBTIDA attributable to Pure Barre shall not exceed $6,000,000 of such amount), (iv) 40% of EBITDA of Holdings and its Subsidiaries for any period ending after June 30, 2019 but on or prior to September 30, 2019 (provided that EBTIDA attributable to Pure Barre shall not exceed $6,000,000 of such amount), (v) 35% of EBITDA of Holdings and its Subsidiaries for any period ending after September 30, 2019 but on or prior to December 31, 2019 (provided that EBTIDA attributable to Pure Barre

 

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shall not exceed $6,000,000 of such amount), and (vii) 20% of EBITDA of Holdings and its Subsidiaries for any period ending thereafter.

ECF Percentage” means 75%; provided in the event that the Total Debt to EBITDA Ratio as of the most recently ended Fiscal Quarter is less than or equal to 2.50:1.00, then the ECF Percentage shall be reduced to 50%.

EEA Financial Institution” means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority; (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition; or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent;

EEA Member Country” means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

EEA Resolution Authority” means any public administrative authority or any person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

Eligible Assignee” means (a) a Lender, (b) the Issuing Lender, (c) an Affiliate of a Lender or the Issuing Lender; (d) an Approved Fund of a Lender; and (e) any Person (other than a natural Person) engaged in making, purchasing, holding or otherwise investing in commercial loans in its ordinary course of activities; provided that “Eligible Assignee” shall in no event include any Disqualified Lender.

Environmental Agreement” means each agreement of the Loan Parties with respect to any real estate subject to a Mortgage, pursuant to which Loan Parties agree to indemnify and hold harmless Administrative Agent and Lenders from liability under any Environmental Laws.

Environmental Claims” means all claims, however asserted, by any governmental, regulatory or judicial authority or other Person alleging potential liability or responsibility for violation of any Environmental Law, or for release of Hazardous Substances.

Environmental Laws” means all applicable and legally-binding present or future federal, state, provincial or local laws, statutes, common law duties, rules, regulations, ordinances and codes, together with all administrative or judicial orders, consent agreements, directed duties, requests, licenses, authorizations and permits of, and agreements with, any governmental authority, in each case relating to any matter arising out of or relating to public or worker health and safety (related to Hazardous Substances), or pollution or protection of the environment, including any of the foregoing relating to the presence, use, production, generation, handling, transport, treatment, storage, disposal, distribution, discharge, emission, release, threatened release, control or cleanup of any Hazardous Substance.

ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

 

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EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time.

Event of Default” means any of the events described in Section 13.1.

Excess Cash Flow” means, for any period, the remainder of (a) EBITDA for such period, plus the sum of, (i) the amount of positive EBITDA of Subsidiaries that have not guaranteed the Obligations hereunder and provided Liens on their assets securing the Obligations for such period in an amount not to exceed the amount of cash distributed by such Subsidiary to a Loan Party during such period and (ii) any net decrease in the Working Capital Adjustment during such period, minus (b) the sum, without duplication, of (i) scheduled repayments of principal of the Term Loans and other Funded Debt (other than payments of revolving Debt that do not include a dollar-for-dollar commitment reduction) permitted hereunder and made during such period, plus (ii) voluntary prepayments of the Term Loan pursuant hereto during such period and voluntary prepayments of the Revolving Loans during such period that are accompanied by a dollar-for-dollar reduction of the Revolving Commitments, plus (iii) cash payments permitted hereunder and made during such period with respect to unfinanced (whether with equity or Debt) Capital Expenditures, plus (iv) all income and franchise taxes paid in cash by the Loan Parties during such period (including, without limitation (but without duplication), Tax Distributions) net of refunds actually received in cash during such period, plus (v) cash Interest Expense (net of interest income) of the Loan Parties during such period, plus (vi) in each case solely to the extent added in determining EBITDA for such period and without duplication of any of the foregoing, any other amounts paid in cash and added back to EBITDA pursuant to the definition thereof, plus (vii) any net increase in Working Capital Adjustments during such period and plus (viii) cash payments (not financed with the proceeds of Equity (including the Available Amount) or Debt other than Revolving Loans) made in such period with respect to Permitted Acquisitions.

Excluded Accounts” means any deposit accounts (a) having in the aggregate for all such accounts average daily cash balances not to exceed $150,000, (b) any deposit account used solely for the purposes of (i) payroll and accrued payroll benefits, (ii) current and accrued taxes, including withholding taxes, (iii) 401(k) or other retirement plans and employee benefits or healthcare benefits, or (iv) other trust accounts, (c) that are zero balance accounts or (d) in connection with providing cash collateral to secure letters of credit permitted hereunder.

Excluded Swap Obligation” means, with respect to any guarantor of a Swap Obligation, including the grant of a security interest to secure the guaranty of such Swap Obligation, any Swap Obligation if, and to the extent that, such Swap Obligation is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such guarantor’s failure for any reason to constitute an “eligible contract participant” as defined in the Commodity Exchange Act and the regulations thereunder at the time the guaranty or grant of such security interest becomes effective with respect to such Swap Obligation. If a Swap Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to swaps for which such Swap Obligation or security interest is or becomes illegal.

 

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Excluded Taxes” means any of the following Taxes imposed on or, with respect to any Lender or Administrative Agent (i) Taxes based upon, or measured by overall net income, overall net receipts, or overall net profits (including franchise taxes imposed in lieu of such Taxes and including branch profits Taxes), but only to the extent such Taxes are imposed by a taxing authority (a) in a jurisdiction in which such Lender or Administrative Agent is organized, imposed as a result of such Lender or Administrative Agent being organized under the laws of such jurisdiction, (b) in a jurisdiction in which a Lender’s or Administrative Agent’s principal office is located, imposed as a result of such Lender or Administrative Agent’s principal office being located in such jurisdiction, (c) in a jurisdiction in which such Lender’s lending office in respect of which payments under this Agreement are made is located, or (d) as a result of any other present or former connection between such Lender or the Administrative Agent and the jurisdiction imposing such Tax (other than connections arising solely from such Lender or the Administrative Agent having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any Loan or Loan Document) (“Other Connection Taxes”), (ii) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in a Loan or Commitment pursuant to applicable law in effect on the date on which (a) such Lender acquires such interest in the Loan or Commitment or (b) such Lender changes its lending office, except in each case to the extent that, pursuant to Section 7.6, amounts with respect to such Taxes were payable either to such Lender’s assignor immediately before such Lender became a party hereto or to such Lender immediately before it changed its lending office, and (iii) any U.S. federal withholding Taxes imposed pursuant to FATCA.

Existing Earn-Out Obligations” means amounts owing by Holdings to the Sellers (as defined in the CB Purchase Agreement) pursuant to Section 2.5 of the CB Purchase Agreement in an aggregate amount not to exceed $15,000,000.

Existing Loan Document” means the Existing Credit Agreement and all “Loan Documents” as such term was defined in the Existing Credit Agreement.

Existing Term A Loans” means the Term Loans as such term was defined in the Existing Credit Agreement.

Extraordinary Receipts” means any cash received by or paid to or for the account of any Loan Party not in the ordinary course of business consisting of (a) pension plan reversions, (b) proceeds of insurance (including business interruption insurance and representation and warranty insurance), (c) judgments, proceeds of settlements or other consideration of any kind in connection with any cause of action (other than with respect to reimbursement of third party claims), (d) condemnation awards (and payments in lieu thereof), (e) indemnity payments (other than with respect to reimbursement of third party claims), (f) any purchase price adjustment received in connection with any purchase (other than a working capital adjustment), and (g) foreign, United States, state or local tax refunds to the extent not included in the calculation of EBITDA.

 

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FATCA” means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable), any current or future regulations or official interpretations thereof, any agreements entered into pursuant to Section 1471(b)(1) of the Code and any applicable intergovernmental agreement with respect thereto, and any fiscal or regulatory legislation, rules or practices adopted pursuant to any such intergovernmental agreement, or treaty or convention among governmental authorities and implementing the foregoing.

FCF” means Fueled Collective Franchising, LLC, an Ohio limited liability company.

FDD” means the Franchise Disclosure Document and its predecessor, Uniform Franchise Offering Circular, and similar documents used in the offer and sale of franchises anywhere in the world by any Company or any of their Subsidiaries in its efforts to comply with any Franchise Laws.

Federal Funds Rate” means, for any day, a fluctuating interest rate equal for each day during such period to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published for such day (or, if such day is not a Business Day, for the next preceding Business Day) by the Federal Reserve Bank of New York, or, if such rate is not so published for any day which is a Business Day, the average of the quotations for such day on such transactions received by Administrative Agent from three Federal funds brokers of recognized standing selected by Administrative Agent. Administrative Agent’s determination of such rate shall be binding and conclusive absent manifest error.

Fiscal Quarter” means a fiscal quarter of a Fiscal Year, which period is the 3-month period ending on the last day of each of March, June, September, and December of each year.

Fiscal Year” means the fiscal year of Borrower and its Subsidiaries, which period shall be the 12 month period ending on December 31 of each year.

Fixed Charge Coverage Ratio” means, for any Computation Period, the ratio of (a) the total for such period of EBITDA (without giving effect to the final sentence thereof) minus the sum of (i) income taxes paid or payable in cash by the Loan Parties and their Subsidiaries (including without duplication Tax Distributions) and (ii) all Capital Expenditures made by the by the Loan Parties and their Subsidiaries not financed with (x) the proceeds of Debt (other than Revolving Loans) or (y) Capital Securities (collectively, such clauses (i)-(ii), the “Fixed Charge Adjustments”) to (b) Fixed Charges for such period; provided that for the purpose of calculating the Fixed Charge Coverage Ratio for any period ending prior to the expiration of four full fiscal quarters since the Closing Date, Fixed Charges and the Fixed Charge Adjustments shall be deemed to be Fixed Charges and Fixed Charge Adjustments for the period from the Closing Date to and including the applicable date of determination multiplied by a fraction equal to (x) 365 divided by (y) the number of days actually elapsed from the Closing Date to such applicable date of determination.

Fixed Charges” means, for any period of Holdings and its Subsidiaries on a consolidated basis the sum of the sum for such period of (i) cash Interest Expense plus (ii) scheduled

 

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payments (other than payments scheduled to be made on the applicable maturity date) of principal of Funded Debt (including the Term Loans and Permitted Seller Debt but excluding the Revolving Loans and Permitted Earn-Outs) and (iii) management fees paid in cash to Sponsor. For the avoidance of doubt, Fixed Charges shall exclude any principal payments of the Revolving Loans.

Franchise Agreement” means any contract between a Franchisor and any other Person pertaining to the establishment and operation of a business in connection with a Franchise and under the trade name or otherwise using the Franchise System of such Franchisor or such Subsidiary, including license agreements, option agreements, master franchise agreements, multi-unit or area development agreements, Area Representative Agreements, Development Agreements, Master Franchise Agreements, and any similar agreements that cover the development or franchising of Franchises, and including any addendum, amendment, extension or renewal thereof, and together with any guarantee or other instrument or agreement relating thereto.

Franchise Law” means the FTC Franchise Rule and any other domestic or foreign law regulating the offer or sale of franchises, business opportunities, seller-assisted marketing plans, distributorships, independent marketing representative arrangements, or similar relationships, or governing the relationships between franchisors and franchisees, manufacturers and dealers, or grantors and distributors or independent marketing representatives, including those laws that address the default, termination, nonrenewal or transfer of franchises, dealerships, distributorships and independent marketing representative arrangements

Franchise System” means any franchise system that any Company or any Subsidiary has developed and operates (or permits other Persons to operate) under the trade name of the applicable Company or the applicable Subsidiary and otherwise using such Company’s or any Subsidiary’s intellectual property and business system.

Franchise” means any grant under a Franchise Agreement of the right to engage in or carry on a business, or to sell or offer to sell any product or service, under or in association with any trademark owned or licensed to any Company or any Subsidiary, which constitutes a “franchise,” as that term is defined (a) in the U.S., under (i) the FTC Franchise Rule, regardless of the jurisdiction in which the franchised business is located or operates in the U.S. or (ii) the Franchise Law, if any, applicable in the jurisdiction or jurisdictions in which the franchised business is located or operates, or the Franchisee is located, or (b) under any law of a foreign country or jurisdiction.

Franchisee” means a Person who is a party to a Franchise Agreement with any Company or one of its Subsidiaries.

Franchisor” means each of AKTF, CBF, CPF, FCF, LBF, LBIP, LBP, Pure Barre, RHF, RHT, SLF, S415 and Yoga Six, or any other Subsidiary that is a franchisor for the operation of fitness studios, health and wellness facilities or shared space concepts.

FRB” means the Board of Governors of the Federal Reserve System or any successor thereto.

 

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FTC Franchise Rule” means the FTC trade regulation rule entitled “Disclosure Requirements and Prohibitions Concerning Franchising,” 16 C.F.R Section 436.1 et seq.

Fueled Collective Build-Out” means the buildout construction of two floors of the Fueled Collective studio located at 3825 Edwards Road, Suite 103, Cincinnati, OH 45209 owned or managed by Coworking Cincinnati, LLC.

Funded Debt” means, as to any Person, all Debt of such Person that matures more than one year from the date of its creation (or is renewable or extendible, at the option of such Person, to a date more than one year from such date). Notwithstanding the foregoing, “Funded Debt” shall not include Letters of Credit.

GAAP” means generally accepted accounting principles set forth from time to time in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board (or agencies with similar functions of comparable stature and authority within the U.S. accounting profession) and the Securities and Exchange Commission, which are applicable to the circumstances as of the date of determination.

GAAP Compliant Financial Statements” has the meaning specified in Section 10.1.2.

Governing Body” shall mean the board of directors or other body having the power to direct or cause the direction of the management and policies of a person that is a corporation, partnership, trust, limited liability company, association, joint venture or other business entity.

Guarantor” means, collectively, each Person that guarantees payment or performance of any of the Obligations under this Agreement or otherwise.

Guaranty and Collateral Agreement” means the Guaranty and Collateral Agreement dated as of the Closing Date executed and delivered by the Loan Parties, together with any joinders thereto and any other guaranty and collateral agreement executed by a Loan Party, in each case in form and substance satisfactory to Administrative Agent.

Hazardous Substances” means hazardous waste, hazardous substance, pollutant, contaminant, toxic substance, oil, hazardous material, chemical or other substance regulated by any Environmental Law due to its toxic or hazardous characteristics.

Hedging Agreement” means any bank underwritten cash and/or derivative financial instrument including, but not limited to, any interest rate, currency or commodity swap agreement, cap agreement, collar agreement, spot foreign exchange, forward foreign exchange, foreign exchange option (or series of options) and any other agreement or arrangement designed to protect a Person against fluctuations in interest rates, currency exchange rates or commodity prices.

Hedging Obligation” means, with respect to any Person, any liability of such Person under any Hedging Agreement determined (a) for any date on or after the date that Hedging Agreement has been closed out and termination value determined in accordance therewith, using that termination value; and (b) for any date prior to the date referenced in clause (a), using the

 

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amount determined as the mark-to-market value for that Hedging Agreement, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in that Hedging Agreement (which may include a Lender or any Affiliate of a Lender).

Holdings” means H&W Franchise Holdings LLC, a Delaware limited liability company.

Holdings LLC Agreement” means that certain Fourth Amended and Restated Limited Liability Company Operating Agreement of Holdings, dated as of October 25, 2018 (and as amended or modified from time to time in accordance with the terms hereof).

Increase Effective Date” is defined in Section 2.7.1.

Increase Notice” is defined in Section 2.7.1.

Increased Fiscal Quarter” is defined in Section 13.4.

Incremental Loan Commitment” means individually or collectively as the context may so require, any Incremental Revolving Loan Commitment or Incremental Term Loan Commitment provided hereunder in accordance with the terms and conditions set forth in Section 2.7.1.

Incremental Loan Joinder Agreement” means a joinder agreement executed and delivered in accordance with the provisions of Section 2.7.

Incremental Loans” means individually or collectively as the context may so require, any Incremental Revolving Loan or Incremental Term Loan made pursuant to the terms and conditions hereof.

Incremental Revolving Loan” is defined in Section 2.7.1.

Incremental Revolving Loan Commitment” is defined in Section 2.7.1 and equal to the amount set forth in more detail pursuant to an Incremental Loan Joinder Agreement.

Incremental Term Loan” is defined in Section 2.7.1.

Incremental Term Loan Commitment” is defined in Section 2.7.1 and equal to the amount set forth in more detail pursuant to an Incremental Loan Joinder Agreement; provided that, at any time after the funding of an Incremental Term Loan, determination of “Required Lenders” shall include the outstanding amount of such Incremental Term Loan.

Indemnified Liabilities” is defined in Section 15.18.

Insolvency Proceeding” means any case or proceeding commenced by or against a Person under any state, federal or foreign law for, or any agreement of such Person to, (a) the entry of an order for relief under the Bankruptcy Code, or any other insolvency, debtor relief or debt adjustment law; (b) the appointment of a receiver, trustee, liquidator, administrator,

 

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conservator or other custodian for such Person or any part of its property; or (c) a general assignment for the benefit of creditors.

Insurance Assignments” means, collectively, (i) that certain Collateral Assignment of Buyer’s Representation and Warranty Insurance Policy as Collateral Security, dated as of the date hereof, by and among the Loan Parties party thereto, the Underwriting Representative (as defined therein) and the Administrative Agent and (ii) that certain Collateral Assignment of Rights Under Business Interruption Insurance Policy, dated as of the date hereof, by and among the Loan Parties party thereto, the Insurer (as defined therein) and the Administrative Agent.

Interest Expense” means for any period the consolidated interest expense of Borrower and its Subsidiaries for such period, including all interest on Capital Leases, all commissions, discounts and other fees and charges with respect to letters of credit, surety bonds and costs under any derivative or hedging instruments.

Interest Period” means, as to any LIBOR Loan, a period of one (1) month initially commencing on the date such Loan is borrowed and thereafter commencing on the day on which the immediately preceding period expires; provided that:

(a)        if any Interest Period would otherwise end on a day that is not a Business Day, such Interest Period shall be extended to the following Business Day unless the result of such extension would be to carry such Interest Period into another calendar month, in which event such Interest Period shall end on the preceding Business Day; and

(b)        any Interest Period that begins on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period shall end on the last Business Day of the calendar month at the end of such Interest Period.

Intermediate Holdings” means H&W Franchise Intermediate Holdings LLC, a Delaware limited liability company.

Intermediate Holdings LLC Agreement” means that certain Limited Liability Company Agreement of Intermediate Holdings dated as of September 29, 2017 (and as amended or modified from time to time in accordance with the terms hereof).

Inventory” is defined in the Guaranty and Collateral Agreement.

Investment” means, with respect to any Person, any investment in another Person, whether by acquisition of any debt or Capital Security, by making any loan or advance, by becoming obligated with respect to a Contingent Liability in respect of obligations of such other Person including any statutory division of a Person (other than travel and similar advances to employees in the ordinary course of business) or by making an Acquisition. For purposes of calculating the amount of any Investment, the amount of such Investment shall be the amount actually invested, without adjustment for subsequent increases or decreases in the value of such Investment.

Issuing Lender” means any financial institution that Administrative Agent and Borrower may approve to issue Letters of Credit for the account of Borrower, and their successors and

 

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assigns in such capacity. As of the Closing Date, there is no Issuing Lender. For the avoidance of doubt, no Letters of Credit will be available to be issued hereunder until an Issuing Lender is agreed upon as set forth above.

ITA” means the Income Tax Act (Canada) and the regulations promulgated thereunder, all as amended from time to time.

Joint Liability Payment” is defined in Section 16.6.

LBF” means LB Franchising LLC, an Ohio limited liability company.

LBIP” means LB IP, LLC, an Ohio limited liability company.

LBP” means LB Product, LLC, an Ohio limited liability company.

L/C Application” means, with respect to any request for the issuance of a Letter of Credit, a letter of credit application in the form being used by an Issuing Lender at the time of such request for the type of letter of credit requested.

L/C Fee Rate” means a per annum rate reasonably acceptable to the Borrower, Required Lenders and Issuing Lender.

Lender” is defined in the preamble of this Agreement. References to the “Lenders” shall include the Issuing Lenders; for purposes of clarification only, to the extent that any Issuing Lender may have any rights or obligations in addition to those of the other Lenders due to its status as Issuing Lender, its status as such will be specifically referenced. In addition to the foregoing, for the purpose of identifying the Persons entitled to share in the Collateral and the proceeds thereof under, and in accordance with the provisions of, this Agreement and the Collateral Documents, the term “Lender” shall include Affiliates of a Lender providing a Bank Product.

Lender Party” is defined in Section 15.17.

Letter of Credit” is defined in Section 2.1.3.

LIBOR Loan” means any Loan which bears interest at a rate determined by reference to the LIBOR Rate.

LIBOR Office” means with respect to any Lender the office or offices of such Lender which shall be making or maintaining the LIBOR Loans of such Lender hereunder. A LIBOR Office of any Lender may be, at the option of such Lender, either a domestic or foreign office.

LIBOR Rate” means the rate per annum equal to LIBOR for a period equal to one month as reported in The Wall Street Journal (or other authoritative source selected by Administrative Agent in its sole discretion) on each date of determination divided by (ii) a number determined by subtracting from 1.00 the then-stated maximum reserve percentage for determining reserves to be maintained by member banks of the Federal Reserve System for Eurocurrency funding or liabilities as defined in Regulation D (or any successor category of

 

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liabilities under Regulation D), or as LIBOR is otherwise determined by Administrative Agent in its sole and absolute discretion (including by way of substituting an alternative interest rate benchmark in the event that the LIBOR Rate is no longer available). Notwithstanding anything contained in this Agreement to the contrary, LIBOR Rate shall not be less than 1.00% per annum.

Lien” means, with respect to any Person, any interest granted by such Person in any real or personal property, asset or other right owned or being purchased or acquired by such Person (including an interest in respect of a Capital Lease) which secures payment or performance of any obligation and shall include any mortgage, lien, encumbrance, title retention lien, hypothec, charge or other security interest of any kind, whether arising by contract, as a matter of law, by judicial process or otherwise.

Liquidity” means the sum of (i) the amount of unrestricted cash and Cash Equivalent Investments of the Loan Parties on deposit in accounts for which a tri-party agreement in favor of the Administrative Agent has been executed and is in effect at such time plus (ii) Revolving Loan Availability.

Loan Account” means an account maintained under this Agreement by Administrative Agent on its books of account, and with respect to Borrower, in which Borrower will be charged with all Loans made to, and all other Obligations incurred by, any of the Loan Parties.

Loan Documents” means this Agreement, the Notes, the Letters of Credit, the Master Letter of Credit Agreement, the L/C Applications, the Agent Fee Letter, each Perfection Certificate, the Collateral Documents, any Incremental Loan Joinder Agreement, the Sponsor Side Letter, and all documents, instruments and agreements in favor of the Administrative Agent and Lenders delivered in connection with the foregoing.

Loan Party” means Holdings, Intermediate Holdings, Borrower and each Subsidiary that is not a CFC that has executed a the Guarantee and Collateral Agreement or otherwise guaranteed the Obligations.

Loan or Loans” means, as the context may require, Revolving Loans and/or Term Loans (including any Incremental Term Loans, if any).

Management Agreement” means that certain Management Services Agreement, dated as of September 29, 2017, by and among Holdings and TPG Growth III Management, LLC, which was assigned to Sponsor pursuant to the Management Agreement Assignment Agreement.

Management Agreement Assignment Agreement” means that certain Assignment, Assumption, Waiver and Release Agreement, dated as of June 28, 2018, among TPG Growth III Management, LLC, Holdings and Purchaser

Mandatory Prepayment Event” is defined in Section 6.2.2(a).

Margin Stock” means any “margin stock” as defined in Regulation U.

 

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Marketing Fund” means a fund administered by one or more of the Franchisors that receives mandatory contributions from Franchisees and uses the amounts collected to promote its respective brand on a national level through advertising.

Marketing Fund Contribution Rate” means the percentage of gross sales that Franchisees contribute to a Marketing Fund.

Master Franchise Agreement” means an agreement between any Company or any Subsidiary and a Franchisee under which the Franchisee has been granted the right to open, and sublicense third-party subfranchisees to open, more than one Franchise under the trade name of such Company or such Subsidiary within a designated geographical area and within a defined period of time, including any addendum, amendment, extension or renewal thereof, and together with any guarantee or other instrument or agreement relating thereto.

Master Letter of Credit Agreement” means, at any time, with respect to the issuance of Letters of Credit, a master letter of credit agreement or reimbursement agreement in the form, if any, being used by an Issuing Lender at such time.

Material Adverse Effect” means (a) a material adverse change in, or a material adverse effect upon, the financial condition, operations, assets or business of the Loan Parties taken as a whole, (b) a material impairment of the ability of the Loan Parties taken as a whole to perform any of the payment Obligations under any Loan Document after giving effect to contribution or intercompany loans made in accordance with this Agreement or (c) a material adverse effect upon the legality, validity, binding effect or enforceability against any Loan Party of any Loan Document.

Material Contract” means, with respect to any Person, (a) the Related Agreements; (b) each contract or agreement to which that Person or any of its Subsidiaries is a party involving aggregate consideration payable to or by that Person or that Subsidiary of $500,000 or more in any Fiscal Year; and (c) all other contracts or agreements as to which the breach, nonperformance, cancellation, or failure to renew (without contemporaneous replacement of substantially equivalent value) by any party could reasonably be expected to have a Material Adverse Effect.

Merger Sub” means Pure Barre Acquisition Company, LLC, a Delaware limited liability company.

Monroe Capital” is defined in the preamble of this Agreement.

Mortgage” means a mortgage, deed of trust or similar instrument granting Administrative Agent a Lien on real property owned by any Loan Party.

Mortgage-Related Documents” means with respect to any real property subject to a Mortgage, the following, in form and substance satisfactory to Administrative Agent: (a) a mortgagee title policy (or binder therefor) covering Administrative Agent’s interest under the Mortgage, in a form and amount and by an insurer acceptable to Administrative Agent, which must be fully paid on that effective date; (b) all assignments of leases, estoppel letters, attornment agreements, consents, waivers, and releases as Administrative Agent reasonably

 

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requires with respect to other Persons having an interest in the real estate; (c) a current, as-built survey of the real estate, containing a metes-and-bounds property description and certified by a licensed surveyor acceptable to Administrative Agent; (d) a life-of-loan flood hazard determination and, if the real estate is located in a flood plain, an acknowledged notice to borrower and flood insurance in an amount, with endorsements and by an insurer acceptable to Administrative Agent; (e) a current appraisal of the real estate, prepared by an appraiser acceptable to Administrative Agent, and in form and substance satisfactory to Required Lenders; (f) an environmental assessment, prepared by environmental engineers acceptable to Administrative Agent, and accompanied by all reports, certificates, studies, or data as Administrative Agent reasonably requires, which must all be in form and substance satisfactory to Required Lenders; and (g) an Environmental Agreement and all other documents, instruments, or agreements as Administrative Agent reasonably requires with respect to any environmental risks regarding the real estate.

Multiemployer Pension Plan” means a multiemployer plan, as defined in Section 4001(a)(3) of ERISA, to which Borrower contributes or has an obligation to contribute, or has within the past six (6) years contributed or had an obligation to contribute, or with respect to which Borrower has any liability as a result of being considered a single employer with any other member of the Controlled Group.

Net Cash Proceeds” means:

(a)        with respect to any Asset Disposition, the aggregate cash proceeds (including cash proceeds received pursuant to policies of insurance (including 50% of the proceeds of business interruption insurance in excess of $1,500,000) or by way of deferred payment of principal pursuant to a note, installment receivable or otherwise, but only as and when received) received by any Loan Party pursuant to such Asset Disposition net of (i) the direct costs relating to such sale, transfer or other disposition (including sales commissions and legal, accounting and investment banking fees), (ii) taxes paid or reasonably estimated by Borrower to be payable as a result thereof (after taking into account any available tax credits or deductions and any tax sharing arrangements), including any Tax Distributions as a result thereof, (iii) principal amount, premium (whether due at maturity, or upon acceleration of maturity for any reason including automatic acceleration triggered by a bankruptcy filing) or penalty, if any, interest and other amounts on any Debt secured by a Lien on the asset subject to such Asset Disposition (other than the Loans), (iv) amounts provided as a reserve, in accordance with GAAP, against any liabilities under any indemnification obligations or purchase price adjustment associated with such Asset Disposition (provided that, to the extent and at the time any such amounts are released from such reserve, such amounts shall constitute Net Cash Proceeds); provided, that (A) no net cash proceeds calculated in accordance with the foregoing realized in a transaction or series of related transactions shall constitute Net Cash Proceeds under this clause (a) unless such net cash proceeds shall exceed $500,000 in any Fiscal Year (and thereafter only net cash proceeds in excess of such amount shall constitute Net Cash Proceeds under this clause (a)) and (B) if the Borrower intends in good faith to use any portion of such proceeds to acquire, maintain, develop, construct, improve, upgrade or repair assets useful in the Loan Parties’ business (so long as Administrative Agent has a first priority and perfected Lien on any newly-acquired asset, subject to Permitted Liens), in each case within 180 days of such receipt, such portion of such proceeds shall not constitute Net Cash Proceeds except to the extent

 

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not, within 180 days of such receipt, so used or contractually committed to be so used (it being understood that if any portion of such proceeds are not so used within such 180 day period but within such 180 day period are contractually committed to be used, then upon the termination of such contract or if such Net Cash Proceeds are not so used within the later of such 180 day period and 180 days from the entry into such contractual commitment, such remaining portion shall constitute Net Cash Proceeds as of the date of such termination or expiry without giving effect to this proviso;

(b)        with respect to any issuance of Capital Securities, the aggregate cash proceeds received by any Loan Party pursuant to such issuance, net of the direct fees, expenses, and costs relating to such issuance (including sales and underwriters’ commissions); and

(c)        with respect to any issuance of Debt, the aggregate cash proceeds received by any Loan Party pursuant to such issuance, net of the direct fees, expenses, and costs of such issuance (including up-front, underwriters’ and placement fees).

Non-Consenting Lender” is defined in Section 15.1.

Non-Excluded Taxes” means any Taxes other than Excluded Taxes.

Non-U.S. Lender” is defined in Section 7.6(d).

Non-Use Fee Rate” means 0.50% per annum.

Note” means a promissory note substantially in the form of Exhibit A.

Notice of Borrowing” is defined in Section 2.2.2.

Obligations” means all obligations (monetary (including post-petition interest, allowed or not) or otherwise) of any Loan Party under this Agreement and any other Loan Document including Attorney Costs and any reimbursement obligations of each Loan Party in respect of Letters of Credit, all Hedging Obligations permitted hereunder which are owed to any Lender (or its Affiliates) or Administrative Agent, and all other Bank Products Obligations, all in each case howsoever created, arising or evidenced, whether direct or indirect, absolute or contingent, now or hereafter existing, or due or to become due. Notwithstanding the foregoing, “Obligations” shall not include any Excluded Swap Obligations.

OFAC” is defined in Section 9.22(b).

Operating Lease” means any lease of (or other agreement conveying the right to use) any real or personal property by any Loan Party, as lessee, other than any Capital Lease.

Original Closing Date” means September 29, 2017.

Original Purchase Agreements” means that certain (i) Unit Purchase and Contribution Agreement, dated as of the Original Closing Date, by and among Holdings, as buyer, Montgomery Ventures Investments II, LLC, as seller, St. Gregory Holdco, LLC, a Delaware limited liability company, and the STG Principals (as defined therein) named therein, (ii) the CB

 

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Purchase Agreement and (iii) Asset Purchase Agreement by and among AKT Franchise, LLC, Xponential Fitness, AKT inMotion Inc., and Anna Kaiser dated March 22, 2018, (iv) Asset Purchase Agreement by and among Row House Franchise, LLC, Row House Holdings, Inc., the persons identified therein as Equityholders, and Debra Strougo, as Selling Parties’ Representative dated December 8, 2017, and (v) Asset Purchase Agreement by and among Stretch Lab Franchise, LLC, Stretch Lab, LLC, the persons identified therein as Equityholders, and Saul C. Janson, as Selling Parties’ Representative (as defined therein), dated November 15, 2017.

Original Related Agreements” means the Original Purchase Agreements, the Original Securities Purchase Agreement, the Club Pilates Purchase Agreement, the Management Agreement, the Assignment and Assumption Agreement, the Management Agreement Assignment Agreement and all agreements, instruments and documents executed or delivered in connection therewith and the Original Transactions.

Original Related Transactions” means the acquisitions consummated pursuant to the Original Related Agreements.

Original Securities Purchase Agreement” means that certain Securities Purchase Agreement dated as of June 28, 2018, by and among TPG Growth III Fitness, L.P., TPG Growth III BDH, L.P., H&W Investco BL Feeder LP and H&W Investco LP.

Original Term A Loan Commitment” means, as to any Lender, such Lender’s commitment to make the Existing Term Loan under the Existing Credit Agreement. The amount of each Lender’s Original Term A Loan Commitment is set forth on Annex A.

Original Transactions” means (a) the borrowing of the Loans on June 28, 2018, (b) the consummation of the acquisitions under the Original Purchase Agreements and the other transactions contemplated thereby and (c) the payment of any transaction costs in connection with the foregoing.

Other Connection Taxes” is defined in the definition of Excluded Taxes.

Other Taxes” means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other Connection Taxes imposed with respect to any assignment by a Lender (other than an assignment made at the request of any Loan Party).

Paid in Full” means, with respect to any Obligations, (a) the payment in full in cash of all Obligations (other than (x) Obligations arising pursuant to Letters of Credit, Hedging Obligations and Bank Product Obligations, and (y) contingent indemnification obligations not due and payable), (b) Hedging Obligations have been paid to the extent then due and payable and any continuing Hedging Obligation collateralized in a manner reasonably acceptable to the Lender to whom such Hedging Obligations are owed or terminated, (c) Bank Products Obligations have been paid in cash to the extent then due and payable, and arrangements reasonably satisfactory to the applicable Bank Product provider shall have been made or such

 

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arrangements shall have been terminated), (d) the termination of all Commitments and (e) in connection with the termination of the Revolving Commitment, either (i) the cancellation and return to Administrative Agent of all Letters of Credit or (ii) the Cash Collateralization (or other credit support reasonably acceptable to Issuing Lender and Administrative Agent) of all Letters of Credit.

Participant” is defined in Section 15.6.2.

Participant Register” is defined in Section 15.6.2.

Patriot Act” is defined in Section 15.16.

PB Acquisition Agreement” means that certain Agreement and Plan of Merger, dated as of the date hereof, by and among Holdings, Merger Sub, Barre Holdco, the unitholders identified therein and CP Barre Holdings, Inc., a Delaware corporation.

PBGC” means the Pension Benefit Guaranty Corporation and any entity succeeding to any or all of its functions under ERISA.

Pension Plan” means a “pension plan”, as such term is defined in Section 3(2) of ERISA, which is subject to Title IV of ERISA or the minimum funding standards of ERISA (other than a Multiemployer Pension Plan), and as to which Borrower has any current or contingent liability, including any liability by reason of being considered a single employer with any other member of the Controlled Group, by reason of having been a substantial employer within the meaning of Section 4063 of ERISA at any time during the preceding five years, or by reason of being deemed to be a contributing sponsor under Section 4069 of ERISA.

Perfection Certificate” means a perfection certificate executed and delivered to Administrative Agent by a Loan Party.

Permitted Acquisition” means any Acquisition of a health and wellness franchise by the Borrower or any other Loan Party if (a) unless Administrative Agent agrees otherwise, Administrative Agent shall have received written notice of a proposed Permitted Acquisition not less than ten (10) Business Days prior to the consummation thereof, together with each of the following: (A) a copy of the acquisition agreement (together with schedules and exhibits) and any other material related documents, (B) all financial statements of Target and auditors’ opinions thereon, if any, made available to any Loan Party, (C) with respect to any Acquisition with an aggregate purchase price equal to or in excess of $350,000, pro forma financial statements of Holdings and its Subsidiaries after giving effect to the consummation of the proposed Permitted Acquisition, (D) a Compliance Certificate demonstrating on a pro forma basis, after giving effect to the consummation of the proposed Permitted Acquisition, (I) compliance with the covenant set forth in Section 11.14.1 hereof, (II) a Total Debt to EBITDA Ratio of not greater than the Total Debt to EBITDA Ratio required pursuant to Section 11.14.2 for the most recently ended measurement period, and (III) a Total Debt to EBITDA Ratio of not greater than 5.25:1.00, (E) upon request of Administrative Agent, such environmental audits with respect to the proposed Permitted Acquisition to the extent such materials have been made available to Loan Parties and (F) a quality of earnings report to the extent the aggregate purchase price for such proposed Acquisition exceeds $1,000,000; (b) upon

 

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reasonable request of Administrative Agent, Loan Parties will make available to Administrative Agent all customary due diligence materials with respect to the proposed Permitted Acquisition to the extent such materials have been made available to Loan Parties, together with such other material diligence information as Administrative Agent may reasonably request; (c) such Permitted Acquisition shall be structured as (i) an asset acquisition by Borrower or another Loan Party, (ii) a merger or amalgamation of the Target with and into Borrower or another Loan Party, with Borrower or such Loan Party as the surviving entity in such merger or amalgamation, (iii) a purchase of no less than 50.1% of the Capital Securities (both economic and voting interests) of the Target by Borrower or another Loan Party provided 100% of the Capital Securities of Target shall be pledged as collateral security in favor of Administrative Agent or (iv) a purchase of no less than 80% but no more than 99.9% of the Capital Securities (both economic and voting interests) of the Target by Borrower or another Loan Party for which such Borrower or such Loan Party goes not pledge such Capital Securities as collateral security in favor of the Administrative Agent, provided that the aggregate amount payable in connection with such Permitted Acquisitions ((including all transaction costs, all Debt, liabilities and Contingent Obligations incurred or assumed and the maximum amount of any earn-out or comparable payment obligation in connection therewith (it being agreed that any such earn-out or comparable payment obligation shall be subject to a maximum amount), whether or not reflected on a consolidated balance sheet of Borrower and Target) shall not exceed $2,000,000 during the term of this Agreement (such Permitted Acquisition, a “Permitted JV Acquisition”); (d) such Permitted Acquisition shall involve assets principally located in the United States (and, in connection with the acquisition of the Capital Securities of a Target, such Target shall be organized under the laws of a state within the United States); provided that an aggregate of up to $750,000 of consideration may be paid in connection with (x) Permitted Acquisitions involving assets outside of the United States and (y) the acquisition of the Capital Securities of a Target organized under the laws of a jurisdiction other than the United States; (e) such proposed Permitted Acquisition shall be consensual, shall have been approved by the Target’s board of directors (or comparable governing board) and shall be consummated in accordance in material compliance with all applicable Laws; (f) at or prior to the closing of any such proposed Permitted Acquisition (or such later date as to which Administrative Agent may agree in its reasonable discretion), all actions required to be taken with respect to such acquired Subsidiary or acquired assets under Section 10.9 shall have been taken in accordance therewith (to the extent required); (g) all amounts payable in connection with all Permitted Acquisitions ((including all transaction costs, all Debt, Contingent Liabilities incurred or assumed and the maximum amount of any earn-out or comparable payment obligation in connection therewith (it being agreed that any such earn-out or comparable payment obligation shall be subject to a maximum amount), whether or not reflected on a consolidated balance sheet of Borrower and Target) shall not exceed $6,500,000 with respect to all Permitted Acquisitions consummated by Loan Parties during any Fiscal Year, and shall not exceed $15,000,000 with respect to all Permitted Acquisitions consummated by Loan Parties during the term hereof (excluding amounts funded from the Available Amount); (h) the Target shall have for the trailing twelve (12) month period preceding the date of the applicable proposed Permitted Acquisition, EBITDA (as defined on the Compliance Certificate) of not less than zero, in each case as determined based upon the Target’s financial statements for its most recently completed fiscal year and its most recent interim financial period completed within sixty (60) days prior to the date of consummation of such proposed Permitted Acquisition; (i) after giving effect to the consummation of such proposed

 

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Permitted Acquisition, the Revolving Loan Availability minus the Revolving Outstandings is equal to or greater than $1,000,000; and (j) at the time of such Permitted Acquisition and after giving effect thereto, no Default or Event of Default has occurred and is continuing.

Permitted Dividends” means any distribution permitted under Section 11.4(f).

Permitted Earn-Out” means with respect to any Person, obligations of such Person arising from the Related Transactions, the Original Related Transactions or a Permitted Acquisition which are payable based on the achievement of specified financial results over time and are subject to subordination terms (or a subordination agreement in favor of Administrative Agent and Lenders) acceptable to Administrative Agent in its reasonable credit judgment. The amount of any Permitted Earn-Outs for purposes of the financial covenants set forth in this Agreement shall be the amount earned and due to be paid at such time, as determined in accordance with GAAP, and for the avoidance of doubt, shall not include any amounts, contingent or otherwise, that are not due and payable as of the date of determination.

Permitted JV Acquisition” has the meaning ascribed to such term in the definition of Permitted Acquisition.

Permitted Lien” means a Lien expressly permitted hereunder pursuant to Section 11.2.

Permitted Securities Issuance” means any issuance of Capital Securities (a) to the Sponsor or any other existing holder of Capital Securities, (b) in connection with the Borrower’s exercise of the Cure Right pursuant to Section 13.4, (c) pursuant to any employee or director option program, benefit plan or compensation program, plan or agreement, (d) issued pursuant to preemptive rights appertaining to any of the foregoing issuances, (e) any issuance by a Subsidiary to Borrower or another Subsidiary in accordance with Section 11.4 or (f) the Net Cash Proceeds of which are used to fund Permitted Acquisitions, Existing Earn-Out Obligations, working capital needs of Borrower and its Subsidiaries, Investments permitted hereunder and Capital Expenditures.

Permitted Seller Debt” means unsecured debt incurred in accordance with Section 11.1(t) and in connection with a Permitted Acquisition, payable to the seller in connection therewith and containing subordination terms (or subject to a subordination agreement in favor of Administrative Agent and Lenders) and other terms and conditions acceptable to Administrative Agent in its reasonable credit judgment.

Person” means any natural person, corporation, partnership, trust, limited liability company, unlimited liability company, association, governmental authority or unit, or any other entity, whether acting in an individual, fiduciary or other capacity.

Post-Closing Cash Payments” means the Post-Closing Cash Payment as defined in that certain Asset Purchase Agreement, dated as of March 22, 2018, by and among AKT Franchise, LLC, as Purchaser, AKT inMotion Inc., as Seller and Anna Kaiser, as equityholder.

PPSA” means the Personal Property Security Act, R.S.O. 1990, c.P.10, as now and hereafter in effect, or any successor statute, or any similar or equivalent legislation of any

 

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Canadian province or territory the laws of which are required by such legislation to be applied in connection with the validity, perfection, enforcement or effect of security interests.

Prime Rate” means, for any day, the rate of interest in effect for that day equal to the prime rate in the United States as reported from time to time in The Wall Street Journal (or other authoritative source selected by Administrative Agent in its sole discretion), or as Prime Rate is otherwise determined by Administrative Agent in its sole and absolute discretion. Administrative Agent’s determination of the Prime Rate will be conclusive, absent manifest error. Any change in the Prime Rate will take effect at the opening of business on the day of that change. In the event The Wall Street Journal (or any other authoritative source) publishes a range of “prime rates,” the Prime Rate will be the highest of the “prime rates.”

Pro Rata Share” means:

(a)        with respect to a Lender’s obligation to make Revolving Loans, participate in Letters of Credit, reimburse the Issuing Lenders, and receive payments of principal, interest, fees, costs, and expenses with respect thereto, (x) prior to the Revolving Commitment being terminated or reduced to zero, the percentage obtained by dividing (i) such Lender’s Revolving Commitment, by (ii) the aggregate Revolving Commitment of all Lenders and (y) from and after the time the Revolving Commitment has been terminated or reduced to zero, the percentage obtained by dividing (i) the aggregate unpaid principal amount of such Lender’s Revolving Outstandings by (ii) the aggregate unpaid principal amount of all Revolving Outstandings;

(b)        with respect to a Lender’s obligation to make a Term Loan and receive payments of interest, fees, and principal with respect thereto, (x) prior to the making of the Term Loans, the percentage obtained by dividing (i) such Lender’s Term Loan Commitment, by (ii) the aggregate amount of all Lenders’ Term Loan Commitments, and (y) from and after the making of the Term Loans, the percentage obtained by dividing (i) the principal amount of such Lender’s Term Loan by (ii) the principal amount of all Term Loans of all Lenders;

(c)        with respect to a Lender’s obligation to make an Additional Term A Loan, the percentage obtained by dividing (i) such Lender’s Additional Term A Loan Commitment, by (ii) the aggregate amount of all Lenders’ Additional Term A Loan Commitments; and

(d)        with respect to all other matters as to a particular Lender, the percentage obtained by dividing (i) such Lender’s Revolving Commitment plus such Lender’s Term Loan Commitment, by (ii) the aggregate amount of Revolving Commitment of all Lenders plus the Term Loan Commitment of all Lenders; provided that in the event all the Commitments have been terminated or reduced to zero, Pro Rata Share shall be the percentage obtained by dividing (a) the principal amount of such Lender’s Revolving Outstandings plus the unpaid principal amount of such Lender’s Term Loan by (b) the principal amount of all outstanding Revolving Outstandings plus the unpaid principal amount of all Term Loans of all Lenders.

Purchaser” is defined in the recitals of this Agreement.

Pure Barre” means, collectively, Barre Holdco, LLC, PB Franchising, LLC, Pure Barre, LLC (f/k/a PB Holdco, LLC), Barre Midco, LLC, PB 1001, LLC, PB 1002, LLC, PB 1005, LLC, PB 1006, LLC, PB 1007, LLC, PB 1012, LLC, PB 1016, LLC, PB 1018, LLC, PB 1020, LLC,

 

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PB 1021, LLC, PB 1029, LLC, PB 1035, LLC, PB 1042, LLC, PB OPCO, LLC, PBH 1001, LLC, and PB Product, LLC, each a Delaware limited liability company.

Qualified Cash” means cash of any Loan Party on deposit in a Deposit Account subject to a Deposit Account control agreement in favor of Administrative Agent and, in form and substance reasonably acceptable to Administrative Agent, but not to exceed $5,000,000.

Qualified Equity Interests” means any Capital Securities that are not Disqualified Equity Interests.

Reaffirmation Agreement” means that certain Reaffirmation Agreement dated as of the date hereof among Administrative Agent and the Loan Parties.

Real Estate Documents” means, with respect to any owned real property not subject to a Permitted Lien of Borrower or any Loan Party, all of the following (except to the extent waived by Administrative Agent in its sole discretion): (a) a duly executed Mortgage providing for a first priority perfected Lien, in favor of Administrative Agent, in all right, title and interest of Borrower or such Subsidiary in such real property, subject to Permitted Liens; (b) an ALTA Loan Title Insurance Policy issued by an insurer reasonably acceptable to Administrative Agent, insuring Administrative Agent’s first priority Lien (subject to Permitted Liens) on such real property and containing such endorsements as Administrative Agent may reasonably require (it being understood that the amount of coverage, exceptions to coverage and status of title set forth in such policy shall be reasonably acceptable to Administrative Agent); (c) copies of all documents of record concerning such real property as shown on the commitment for the title insurance policy referred to above; (d) original or certified copies of all insurance policies required to be maintained with respect to such real property by this Agreement, the applicable Mortgage or any other Loan Document; (e) a survey certified to Administrative Agent meeting such standards as Administrative Agent may reasonably establish and otherwise reasonably satisfactory to Administrative Agent; (f) a flood insurance policy concerning such real property, if required by the Flood Disaster Protection Act of 1973; and (g) an appraisal, prepared by an independent appraiser reasonably acceptable to Administrative Agent, of such parcel of real property or interest in real property, which appraisal shall satisfy the requirements of the Financial Institutions Reform, Recovery and Enforcement Act, if applicable, and shall evidence compliance with the supervisory loan-to-value limits set forth in the Federal Deposit Insurance Corporation Improvement Act of 1991, if applicable.

Reference Date” is defined in the definition of Available Amount.

Register” is defined in Section 15.7.

Regulation D” means Regulation D of the FRB.

Regulation U” means Regulation U of the FRB.

Related Agreements” means the Original Purchase Agreements, the PB Acquisition Agreement, the Club Pilates Purchase Agreement, Management Agreement, the Assignment and Assumption Agreement, the Management Agreement Assignment Agreement and all

 

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agreements, instruments and documents executed or delivered in connection therewith and the Transactions.

Related Transactions” means the acquisitions to be consummated on the Closing Date pursuant to the Purchase Agreements.

Reportable Event” means a reportable event as defined in Section 4043(c) of ERISA and the regulations issued thereunder as to which the PBGC has not waived the notification requirement of Section 4043(a) by applicable regulation.

Required Lenders” means, at any time, Lenders whose Pro Rata Shares exceed 51% as determined pursuant to clause (d) of the definition of “Pro Rata Share”; provided that the Pro Rata Shares held or deemed held by, any Defaulting Lender shall be excluded for purposes of making a determination of Required Lenders.

Restricted Payment” is defined in Section 11.4.

Revolving Commitment” means, as to any Lender, such Lender’s commitment to make Revolving Loans (including Incremental Revolving Loans, if any), and to issue or participate in Letters of Credit, under this Agreement. The initial amount of each Lender’s Revolving Commitment is set forth on Annex A. The initial aggregate amount of the Revolving Commitments of all Lenders is $10,000,000.

Revolving Loan” is defined in Section 2.1.1.

Revolving Loan Availability” means the lesser of (i) the Revolving Commitments of all Lenders and (ii) Borrowing Availability.

Revolving Outstandings” means, at any time, the sum of (a) the aggregate principal amount of all outstanding Revolving Loans, plus (b) the Stated Amount of all Letters of Credit.

RHF” means Row House Franchise, LLC, a Delaware limited liability company.

RHT” means Row House Tustin, LLC, a Delaware limited liability company.

S415” means Shred415 Franchising LLC, a Delaware limited liability company.

Seller” is defined in the recitals of this Agreement.

Senior Officer” means, with respect to any Loan Party, any of the president, the chief executive officer, the chief or other senior financial officer or the treasurer of such Loan Party.

SLF” means Stretch Lab Franchise, LLC, a Delaware limited liability company.

Specified Event of Default” means an Event of Default arising under any of the following Sections hereof: (i) Section 13.1.1, (ii) Section 13.1.4 or (iii) Section 13.1.5 resulting solely from Borrower’s failure to comply with Section 10.1.1, 10.1.2 or 11.14.

 

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Sponsor” means collectively, H&W Investco LP, any of its affiliated investment funds under their common control (excluding any of their portfolio companies) and any blocker corporations and splitter partnerships through which any of the foregoing hold their interest in Holdings.

Sponsor Side Letter” means (i) that certain letter agreement between TPG Growth III Fitness, L.P., Holdings and Administrative Agent dated as of the Original Closing Date and (ii) that certain letter agreement between Sponsor and Administrative Agent dated as of June 28, 2018.

Stated Amount” means, with respect to any Letter of Credit at any date of determination, (a) the maximum aggregate amount available for drawing thereunder under any and all circumstances plus (b) the aggregate amount of all unreimbursed payments and disbursements under such Letter of Credit.

STGH” means St. Gregory Holdco, LLC, a Delaware limited liability company.

Subsidiary” means, with respect to any Person, a corporation, partnership, limited liability company or other entity of which such Person owns, directly or indirectly, such number of outstanding Capital Securities as have more than 50% of the ordinary voting power for the election of directors or other managers of such corporation, partnership, limited liability company or other entity. Unless the context otherwise requires, each reference to Subsidiaries herein shall be a reference to Subsidiaries of Borrower.

Swap Obligation” means any Hedging Obligation that constitutes a “swap” within the meaning of section 1a(47) of the Commodity Exchange Act, as amended from time to time.

Target” means the Person, or business or substantially all of the assets of a Person, acquired in an Acquisition.

Tax Distributions” means the tax distributions based on the operations of the Borrower and its Subsidiaries that are required to be made under the Holdings LLC Agreement (as in effect on the Original Closing Date) calculated using a tax rate equal to the lesser of the highest marginal rate of any member of Holdings and 50% (and, for the avoidance of doubt, taking into account the effect of any deduction under Section 199A of the Code).

Taxes” means any and all present and future taxes, duties, levies, imposts, deductions, assessments, fees, charges or withholdings imposed by any governmental authority, and any and all liabilities (including interest and penalties and other additions to taxes) with respect to the foregoing.

Term A Loan” is defined in Section 2.1.2.

Term Loan Commitment” means, collectively, the Original Term A Loan Commitment and the Additional Term A Loan Commitment.

Term Loan Maturity Date” means the earlier of (a) October 25, 2023 or (b) the Termination Date.

 

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Term Loans” means the Term A Loans and any Incremental Term Loans.

Termination Date” means the earlier to occur of (a) October 25, 2023, or (b) such other date on which the Commitments terminate pursuant to Section 6 or Section 13.

Termination Event” means, with respect to a Pension Plan, (a) a Reportable Event, (b) the withdrawal of Borrower or any other member of the Controlled Group from such Pension Plan during a plan year in which Borrower or any other member of the Controlled Group was a “substantial employer” as defined in Section 4001(a)(2) of ERISA, (c) the termination of such Pension Plan, the filing of a notice of intent to terminate the Pension Plan or the treatment of an amendment of such Pension Plan as a termination under Section 4041 of ERISA, (d) the institution by the PBGC of proceedings to terminate such Pension Plan or (e) any event or condition that would constitute grounds under Section 4042 of ERISA for the termination of, or appointment of a trustee to administer, such Pension Plan.

Total Debt” means all Debt of Loan Parties, determined on a consolidated basis, excluding (a) contingent obligations in respect of Contingent Liabilities (except to the extent constituting (i) Contingent Liabilities in respect of Debt of a Person other than any Loan Party or (ii) Contingent Liabilities in respect of undrawn letters of credit), (b) Hedging Obligations, (c) Debt of Borrower to other Loan Parties and Debt of other Loan Parties to other Loan Parties or Borrower, (d) the Existing Earn-Out Obligations and Permitted Earn-Outs and (e) Contingent Liabilities set forth on Schedule 11.1 as of the Closing Date.

Total Debt to EBITDA Ratio” means, as of the last day of any Fiscal Quarter, the ratio of (a) Total Debt as of such day minus Qualified Cash as of such day to (b) EBITDA for the Computation Period ending on such day.

Total Plan Liability” means, at any time, the present value of all vested and unvested accrued benefits under all Pension Plans, determined as of the then most recent valuation date for each Pension Plan, using the plan’s ongoing actuarial assumptions.

Transactions” means (a) the borrowing of the Loans hereunder on the Closing Date, (b) the consummation of the acquisitions under the Purchase Agreements and the other transactions contemplated thereby and (c) the payment of any transaction costs in connection with any of the foregoing.

UCC” is defined in the Guaranty and Collateral Agreement.

Unfunded Liability” means the amount (if any) by which the present value of all vested and unvested accrued benefits under all Pension Plans exceeds the fair market value of all assets allocable to those benefits, all determined as of the then most recent valuation date for each Pension Plan, using the plan’s ongoing actuarial assumptions.

Wholly-Owned Subsidiary” means, as to any Person, a Subsidiary all of the Capital Securities of which (except directors’ qualifying Capital Securities) are at the time directly or indirectly owned by such Person and/or another Wholly-Owned Subsidiary of such Person. Unless the context otherwise requires, each reference to Wholly-Owned Subsidiaries shall be a reference to Wholly-Owned Subsidiaries of Borrower.

 

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Withholding Certificate” is defined in Section 7.6(d).

Working Capital” means as to Borrower and its Subsidiaries on a consolidated basis Current Assets less Current Liabilities.

Working Capital Adjustment” means the excess or loss of Working Capital determined as at the end of the Fiscal Year over the Working Capital for the prior Fiscal Year.

Write-Down and Conversion Powers” means, with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which writedown and conversion powers are described in the EU Bail-In Legislation Schedule.

Yoga Six” means Yoga Six Franchise, LLC, a Delaware limited liability company.

1.2.        Other Interpretive Provisions.

(a)        The meanings of defined terms are equally applicable to the singular and plural forms of the defined terms.

(b)        Section, Annex, Schedule and Exhibit references are to this Agreement unless otherwise specified.

(c)        The term “including” is not limiting and means “including without limitation.”

(d)        In the computation of periods of time from a specified date to a later specified date, the word “from” means “from and including”; the words “to” and “until” each mean “to but excluding”, and the word “through” means “to and including.

(e)        In the determination or computation of dates for delivery or performance, if the date determined or calculated for delivery or performance as set forth in this Agreement is not a Business Day, then the date for performance or delivery shall be the next succeeding Business Day.

(f)        Unless otherwise expressly provided herein, (i) references to agreements (including this Agreement and the other Loan Documents) and other contractual instruments shall be deemed to include all subsequent amendments, restatements, supplements and other modifications thereto, but only to the extent such amendments, restatements, supplements and other modifications are not prohibited by the terms of any Loan Document, and (ii) references to any statute or regulation shall be construed as including all statutory and regulatory provisions amending, replacing, supplementing or interpreting such statute or regulation.

(g)        This Agreement and the other Loan Documents may use several different limitations, tests or measurements to regulate the same or similar matters. All such limitations, tests and measurements are cumulative and each shall be performed in accordance with its terms; provided that in the event of a conflict, the provisions of this Agreement control unless expressly stated otherwise in such other Loan Document.

 

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(h)        This Agreement and the other Loan Documents are the result of negotiations among and have been reviewed by counsel to Administrative Agent, Borrower, the Lenders and the other parties thereto and are the products of all parties. Accordingly, they shall not be construed against Administrative Agent or the Lenders merely because of Administrative Agent’s or Lenders’ involvement in their preparation.

(i)        Any reference in any of the Loan Documents to a Permitted Lien is not intended to subordinate or postpone, and shall not be interpreted as subordinating or postponing, or as any agreement to subordinate or postpone, any Lien created by any of the Loan Documents to any Permitted Lien.

(j)        A Default or Event of Default will be deemed to exist at all times during the period commencing on the date that Default or Event of Default occurs to the date on which that Default or Event of Default is waived in writing pursuant to this Agreement or, in the case of a Default, is cured within any period of cure expressly provided for in this Agreement, and an Event of Default will “continue” or be “continuing” until that Event of Default has been waived in writing by the Required Lenders.

(k)        For all purposes under the Loan Documents, in connection with any division or plan of division under Delaware law (or any comparable event under a different jurisdiction’s laws): (a) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability of a different Person, then it shall be deemed to have been transferred from the original Person to the subsequent Person, and (b) if any new Person comes into existence, such new Person shall be deemed to have been organized on the first date of its existence by the holders of its Capital Securities at such time.

 

  1.3.        Accounting

and Other Terms.

(a)        Unless otherwise expressly provided in this Agreement, each accounting term used in this Agreement has the meaning given it under GAAP applied on a basis consistent with those used in preparing the Financial Statements and using the same inventory valuation method as used in the financial statements, except for any change required or permitted by GAAP if Borrowers’ certified public accountants concur in that change, the change is disclosed and consented to by Administrative Agent, and Section 11.14 is amended in a manner satisfactory to Administrative Agent to take into account the effects of the change. Notwithstanding the foregoing, it is understood and agreed that for all purposes hereunder the recognition of franchise fee income (including without limitation related income arising out of equipment sales the proceeds of which have been received by the Loan Parties) by the Loan Parties is not consistent with GAAP and it is agreed that franchise fee income will continue to be recognized at the time of signing of a new franchise agreement consistent with past practices until such time as consented to in writing by the Administrative Agent in its sole discretion. Following December 31, 2018 franchise fee income will be recognized as required by GAAP (including with respect to the guidance under ASC 606) for purposes of the GAAP Compliant Financial Statements although for all other purposes hereunder (including, without limitation, calculation of financial covenants) franchise fee income shall continue to be treated as specified in the foregoing sentence.

 

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(b)        All terms used in this Agreement which are defined in Article 8 or Article 9 of the UCC or the PPSA, as applicable, and which are not otherwise defined in this Agreement have the same meanings in this Agreement as set forth therein, except that terms used in this Agreement which are defined in the UCC as in effect in the New York on the date of this Agreement will continue to have the same meaning notwithstanding any replacement or amendment of that statute except as Administrative Agent may otherwise determine.

(c)        Whenever pro forma effect is to be given to a Permitted Acquisition, the pro forma calculations shall be made in good faith by a Senior Officer of the Borrower and may include, for the avoidance of doubt, (i) the amount of “run-rate” cost savings, operating expense reductions and cost synergies projected by the Borrower in good faith to result from or relating to any Permitted Acquisition which is being given pro forma effect that have been realized or are expected to be realized and for which the actions necessary to realize such cost savings, operating expense reductions and cost synergies are taken, committed to be taken or with respect to which substantial steps have been taken or are expected to be taken (in the good faith determination of the Borrower) (calculated on a pro forma basis as though such cost savings, operating expense reductions and cost synergies had been realized on the first day of such period and as if such cost savings, operating expense reductions and cost synergies were realized during the entirety of such period and “run-rate” means the full recurring benefit for a period that is associated with any action taken, committed to be taken or with respect to which substantial steps have been taken or are expected to be taken (including any savings expected to result from the elimination of a public target’s compliance costs with public company requirements) net of the amount of actual benefits realized during such period from such actions, and any such adjustments shall be included in the initial pro forma calculations of such financial ratios or tests and during any subsequent test period in which the effects thereof are expected to be realized) relating to such Transaction; provided that (A) such amounts are reasonably identifiable and factually supportable in the good faith judgment of the Borrower, (B) such actions are taken, committed to be taken or with respect to which substantial steps have been taken or are expected to be taken no later than twelve (12) months after the date of such Transaction, (C) recommended (in reasonable detail) by any due diligence quality of earnings report conducted by an unaffiliated nationally recognized independent financial advisor retained by Borrower and (D) no amounts shall be added to the extent duplicative of any amounts that are otherwise added back in computing EBITDA (or any other components thereof), whether through a pro forma adjustment or otherwise, with respect to such period, and (ii) pro forma adjustments which are directly attributable to such event or events that are factually supportable, and are reasonably expected to have a continuing impact on Holdings, Intermediate Holdings, Borrower and its Subsidiaries, and which are (x) recommended (in reasonable detail) by any due diligence quality of earnings report conducted by an unaffiliated nationally recognized independent financial advisor retained by Borrower, (y) determined on a basis consistent with Article 11 of Regulation S-X promulgated under the Exchange Act and as interpreted by the staff of the Securities and Exchange Commission (or any successor agency), or (z) otherwise determined in such other manner reasonably acceptable to the Administrative Agent); provided, all such amounts pursuant to this Section 1.3(c) shall be subject to the limitations set forth in clauses (a)(vii) and (viii) of the definition of EBITDA.

 

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SECTION 2

COMMITMENTS OF THE LENDERS; BORROWING, CONVERSION AND LETTER

OF CREDIT PROCEDURES.

2.1.      Commitments. On and subject to the terms and conditions of this Agreement, each of the Lenders, severally and for itself alone, agrees to make loans to, and to issue or participate in letters of credit for the account of, Borrower as follows:

2.1.1.   Revolving Commitment. Each Lender with a Revolving Commitment agrees to make loans on a revolving basis (including any Incremental Revolving Loans, “Revolving Loans”) from time to time and Borrower may repay such Revolving Loans without prepayment or penalty from time to time until the Termination Date in such Lender’s Pro Rata Share of such aggregate amounts as Borrower may request from all Lenders; provided that the Revolving Outstandings will not at any time exceed Revolving Loan Availability. The Commitments of the Lenders to make Revolving Loans will expire on the Termination Date.

2.1.2.   Existing Term Loans; Additional Term A Loan Commitment.

(a)        Prior to the date hereof, the Lenders made the Existing Term A Loans in the aggregate principal amount of $75,000,000, of which an aggregate principal amount of $69,667,893.77 was outstanding immediately prior to the Closing Date. Each Lender, as applicable, agrees to maintain outstanding to Borrower hereunder the Existing Term A Loans made by such Lender. Each Lender with an Additional Term A Loan Commitment as of the Closing Date agrees to make an additional term loan to Borrower (each such loan, individually and collectively, “Additional Term A Loan” and together with the Existing Term A Loans, individually and collectively “Term A Loan”) on the Closing Date in the aggregate amount of such Lender’s Pro Rata Share of the aggregate amount of the Additional Term A Loan Commitments of all Lenders. The Commitments of the Lenders to make Additional Term A Loans shall expire concurrently with the making of such Additional Term A Loan on the Closing Date. Additional Term A Loans, whether or not repaid prior to the Term Loan Maturity Date, may not be re-borrowed. After giving effect to the Additional Term A Loan funded on the Closing Date, the parties hereto agree that the total outstanding principal amount of Term A Loan on the Closing Date is $135,000,000.

2.1.3.   L/C Commitment. Subject to Section 2.3.1, each Issuing Lender agrees to issue letters of credit, in each case containing such terms and conditions as are permitted by this Agreement and are reasonably satisfactory to such Issuing Lender (each, a “Letter of Credit”), at the request of and for the account of Borrower from time to time before the scheduled Termination Date and, as more fully set forth in Section 2.3.2, each Lender with a Revolving Commitment agrees to purchase a participation in each such Letter of Credit; provided that (a) the aggregate Stated Amount of all Letters of Credit shall not at any time exceed $500,000 and (b) the Revolving Outstandings shall not at any time exceed Revolving Loan Availability.

2.2.      Loan Procedures

2.2.1.   Type of Loans. Each Revolving Loan shall be, and each Term Loan shall be, a LIBOR Loan, subject to Section 8 and Section 2.2.2(c). LIBOR Loans having the same

 

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Interest Period which expire on the same day are sometimes called a “Group” or collectively “Groups”. All borrowings and repayments of Loans shall be effected so that each Lender will have a ratable share (according to its Pro Rata Share) of all Groups of Loans.

2.2.2.   Borrowing Procedures.

(a)        Borrower Representative shall give written notice (each such written notice, a “Notice of Borrowing”) substantially in the form of Exhibit D or telephonic notice (followed immediately by a Notice of Borrowing) to Administrative Agent and each Lender with a Revolving Commitment of each proposed borrowing not later than 12:00 P.M., Chicago time, at least three (3) Business Days (or such shorter period as is agreed by the Required Lenders) prior to the proposed date of such borrowing, or in the case of Term Loans, on the Closing Date. Each such notice shall be effective upon receipt by Administrative Agent, shall be irrevocable, and shall specify the date and amount of borrowing. On the requested borrowing date, each Lender with a Revolving Commitment shall provide Borrower with immediately available funds covering such Lender’s Pro Rata Share of such borrowing so long as the applicable Lender has not received written notice that the conditions precedent set forth in Section 12 with respect to such borrowing have not been satisfied. After Administrative Agent’s receipt of the proceeds of the applicable Loans from Lenders with applicable Commitments, Administrative Agent shall make the proceeds of those Loans available to Borrower on the applicable borrowing date by transferring to Borrower immediately available funds equal to the proceeds received by Administrative Agent. Each Base Rate borrowing must be on a Business Day. Each borrowing shall be in an aggregate amount of at least $100,000. Each Lender with a Revolving Commitment hereby agrees, upon request of Administrative Agent, to deliver to Administrative Agent a list of all Revolving Loans made by such Lender, together with such information related thereto as Administrative Agent may reasonably request. Borrower Representative may not deliver a Notice of Borrowing more than six (6) times in any month.

(b)        Borrower Representative shall give a Notice of Borrowing or telephonic notice (followed immediately by a Notice of Borrowing) to Administrative Agent of each proposed Additional Term A Loan borrowing not later than 12:00 P.M., Chicago time, at least three (3) Business Days (or such later time as Administrative Agent may agree to) prior to the proposed date of such borrowing. Each such notice shall be effective upon receipt by Administrative Agent, shall be irrevocable, and shall specify the date and amount of borrowing. On the requested borrowing date, each Lender with an Additional Term A Loan Commitment shall provide Borrower with immediately available funds covering such Lender’s Pro Rata Share of such borrowing so long as the applicable Lender has not received written notice from Administrative Agent that the conditions precedent set forth in Section 12 with respect to such borrowing have not been satisfied. Each borrowing shall be on a Business Day. Each borrowing shall be in an aggregate amount of at least $1,000,000 and an integral multiple of $100,000. Each Lender with an Additional Term A Loan Commitment hereby agrees, upon request of Administrative Agent, to deliver to Administrative Agent a list of all Additional Term A Loans made by such Lender, together with such information related thereto as Administrative Agent may reasonably request.

(c)        Unless payment is otherwise timely made by Borrower, the becoming due of any Obligations (whether principal, interest, fees or other charges) will be deemed to be a

 

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request for a Base Rate borrowing of a Revolving Loan on the due date, in the amount of those Obligations. The proceeds of those Revolving Loans will be disbursed as direct payment of the relevant Obligations. In addition, Administrative Agent may, at its option, charge when due any Obligations against any operating, investment or other account of any Borrower maintained with Administrative Agent or any of its Affiliates.

2.3.        Letter of Credit Procedures.

2.3.1.    L/C Applications. Borrower shall execute and deliver to each Issuing Lender each Master Letter of Credit Agreement from time to time in effect with respect to such Issuing Lender. Borrower Representative shall give notice to Administrative Agent and the applicable Issuing Lender of the proposed issuance of each Letter of Credit on a Business Day which is at least three Business Days (or such lesser number of days as Required Lenders and such Issuing Lender shall agree in any particular instance in their sole discretion) prior to the proposed date of issuance of such Letter of Credit. Each such notice shall be accompanied by an L/C Application, duly executed by Borrower and in all respects satisfactory to Administrative Agent and the applicable Issuing Lender, together with such other documentation as Administrative Agent or such Issuing Lender may request in support thereof, it being understood that each L/C Application shall specify, among other things, the date on which the proposed Letter of Credit is to be issued, the expiration date of such Letter of Credit (which shall not be later than the scheduled Termination Date (unless such Letter of Credit is Cash Collateralized)) and whether such Letter of Credit is to be transferable in whole or in part. Any Letter of Credit outstanding after the scheduled Termination Date which is Cash Collateralized for the benefit of an Issuing Lender shall be the sole responsibility of such Issuing Lender. So long as the applicable Issuing Lender has not received written notice that the conditions precedent set forth in Section 12 with respect to the issuance of such Letter of Credit have not been satisfied, such Issuing Lender shall issue such Letter of Credit on the requested issuance date. Each Issuing Lender shall promptly advise Administrative Agent of the issuance of each Letter of Credit and of any amendment thereto, extension thereof or event or circumstance changing the amount available for drawing thereunder. In the event of any inconsistency between the terms of any Master Letter of Credit Agreement, any L/C Application and the terms of this Agreement, the terms of this Agreement shall control.

2.3.2.    Participations in Letters of Credit. Concurrently with the issuance of each Letter of Credit, the applicable Issuing Lender shall be deemed to have sold and transferred to each Lender with a Revolving Commitment, and each such Lender shall be deemed irrevocably and unconditionally to have purchased and received from such Issuing Lender, without recourse or warranty, an undivided interest and participation, to the extent of such Lender’s Pro Rata Share, in such Letter of Credit and Borrower’s reimbursement obligations with respect thereto. If Borrower does not pay any reimbursement obligation when due, Borrower shall be deemed to have immediately requested that the Lenders with Revolving Commitments make a Revolving Loan in a principal amount equal to such reimbursement obligations. Administrative Agent shall promptly notify such Lenders of such deemed request and, without the necessity of compliance with the requirements of Section 2.2.2, Section 12.2 or otherwise such Lender shall make available to the applicable Issuing Lender its Pro Rata Share of such Loan for the account of Borrower in satisfaction of such reimbursement obligations. For the purposes of this Agreement, the unparticipated portion of each Letter of Credit shall be deemed to be the applicable Issuing

 

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Lender’s “participation” therein. Each Issuing Lender hereby agrees, upon request of Administrative Agent or any Lender, to deliver to Administrative Agent or such Lender a list of all Letters of Credit issued by such Issuing Lender, together with such information related thereto as Administrative Agent or such Lender may reasonably request.

2.3.3.   Reimbursement Obligations.

(a)        Borrower hereby unconditionally and irrevocably agrees to reimburse each Issuing Lender for each payment or disbursement made by such Issuing Lender under any Letter of Credit honoring any demand for payment made by the beneficiary thereunder, in each case on the date that such payment or disbursement is made. Any amount not reimbursed on the date of such payment or disbursement shall bear interest from the date of such payment or disbursement to the date that the applicable Issuing Lender is reimbursed by Borrower therefor, payable on demand, at a rate per annum equal to the Base Rate from time to time in effect plus the Applicable Margin for Revolving Loans that are Base Rate Loans plus, beginning on the third Business Day after receipt of notice from such Issuing Lender of such payment or disbursement, 2%. Each Issuing Lender shall notify Borrower and Administrative Agent whenever any demand for payment is made under any Letter of Credit by the beneficiary thereunder; provided that the failure of an Issuing Lender to so notify Borrower or Administrative Agent shall not affect the rights of such Issuing Lender or the Lenders in any manner whatsoever.

(b)        Borrower’s reimbursement obligations hereunder shall be irrevocable and unconditional under all circumstances, including (a) any lack of validity or enforceability of any Letter of Credit, this Agreement or any other Loan Document, (b) the existence of any claim, set-off, defense or other right which any Loan Party may have at any time against a beneficiary named in a Letter of Credit, any transferee of any Letter of Credit (or any Person for whom any such transferee may be acting), Administrative Agent, the Issuing Lenders, any Lender or any other Person, whether in connection with any Letter of Credit, this Agreement, any other Loan Document, the transactions contemplated herein or any unrelated transactions (including any underlying transaction between any Loan Party and the beneficiary named in any Letter of Credit), (c) the validity, sufficiency or genuineness of any document which an Issuing Lender has determined complies on its face with the terms of the applicable Letter of Credit, even if such document should later prove to have been forged, fraudulent, invalid or insufficient in any respect or any statement therein shall have been untrue or inaccurate in any respect, or (d) the surrender or impairment of any security for the performance or observance of any of the terms hereof. Without limiting the foregoing, no action or omission whatsoever by Administrative Agent or any Lender (excluding any Lender in its capacity as an Issuing Lender) under or in connection with any Letter of Credit or any related matters shall result in any liability of Administrative Agent or any Lender to Borrower, or relieve Borrower of any of its obligations hereunder to any such Person.

2.3.4.  Funding by Lenders to Issuing Lender. If any Issuing Lender makes any payment or disbursement under any Letter of Credit and (a) Borrower has not reimbursed such Issuing Lender in full for such payment or disbursement by 10:00 A.M., Chicago time, on the date of such payment or disbursement, (b) a Revolving Loan may not be made in accordance with Section 2.3.2 or (c) any reimbursement received by such Issuing Lender from Borrower is or must be returned or rescinded upon or during any bankruptcy or reorganization of Borrower or

 

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otherwise, each other Lender with a Revolving Commitment shall be obligated to pay to the applicable Issuing Lender, in full or partial payment of the purchase price of its participation in such Letter of Credit, its Pro Rata Share of such payment or disbursement (but no such payment shall diminish the obligations of Borrower under Section 2.3.3), and, upon notice from such Issuing Lender, Administrative Agent shall promptly notify each other Lender thereof. Each other Lender with a Revolving Commitment irrevocably and unconditionally agrees to so pay the applicable Issuing Lender in immediately available funds the amount of such other Lender’s Pro Rata Share of such payment or disbursement. If and to the extent any such Lender shall not have made such amount available to the applicable Issuing Lender by 2:00 P.M., Chicago time, on the Business Day on which such Lender receives notice from Administrative Agent of such payment or disbursement (it being understood that any such notice received after noon, Chicago time, on any Business Day shall be deemed to have been received on the next following Business Day), such Lender agrees to pay interest on such amount to the applicable Issuing Lender forthwith on demand, for each day from the date such amount was to have been delivered to the applicable Issuing Lender to the date such amount is paid, at a rate per annum equal to (a) for the first three days after demand, the Federal Funds Rate from time to time in effect and (b) thereafter, the Base Rate from time to time in effect. Any Lender’s failure to make available to the applicable Issuing Lender its Pro Rata Share of any such payment or disbursement shall not relieve any other Lender of its obligation hereunder to make available to the applicable Issuing Lender such other Lender’s Pro Rata Share of such payment, but no Lender shall be responsible for the failure of any other Lender to make available to the applicable Issuing Lender such other Lender’s Pro Rata Share of any such payment or disbursement.

2.4.        Commitments Several. The failure of any Lender to make a requested Loan on any date shall not relieve any other Lender of its obligation (if any) to make a Loan on such date, but no Lender shall be responsible for the failure of any other Lender to make any Loan to be made by such other Lender.

2.5.        Certain Conditions. Except as otherwise provided in Section 2.3.4 of this Agreement, no Lender shall have an obligation to make any Loan, and no Issuing Lender shall have any obligation to issue any Letter of Credit, if an Event of Default or Default exists.

2.6.        Defaulting Lenders. Notwithstanding any provision of this Agreement to the contrary, if any Lender becomes a Defaulting Lender, then the following provisions shall apply for so long as such Lender is a Defaulting Lender:

2.6.1.    Fees shall cease to accrue on the unfunded portion of the Revolving Commitment of such Defaulting Lender pursuant to Section 5.1.

2.6.2.    If any Letters of Credit are outstanding at the time a Lender becomes a Defaulting Lender then:

(a)        all or any part of the Defaulting Lender’s obligation to participate in Letters of Credit shall be reallocated among the non-Defaulting Lenders with Revolving Commitments in accordance with their respective Pro Rata Shares as determined pursuant to clause (a) of the definition of “Pro Rata Share” but only to the extent (x) the sum of all non-Defaulting Lenders’ Revolving Outstandings plus such Defaulting Lender’s obligation to

 

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participate in Letters of Credit does not exceed the total of all non-Defaulting Lenders’ Commitments and (y) the conditions set forth in Section 12.2 are satisfied at such time; and

(b)        if the reallocation described in clause (a) above cannot, or can only partially, be effected, Borrower shall within one Business Day following notice by Administrative Agent Cash Collateralize such Defaulting Lender’s obligation to participate in Letters of Credit (after giving effect to any partial reallocation pursuant to clause (a) above) in accordance with the procedures set forth in Section 2.3.1 for so long as such obligation to participate in Letters of Credit is outstanding;

(c)        if Borrower Cash Collateralizes any portion of such Defaulting Lender’s obligation to participate in Letters of Credit pursuant to Section 2.6.2, Borrower shall not be required to pay any fees to such Defaulting Lender pursuant to Section 5.2 with respect to such Defaulting Lender’s obligation to participate in Letters of Credit during the period such Defaulting Lender’s obligation to participate in Letters of Credit is Cash Collateralized;

(d)        if the obligation to participate in Letters of Credit of the non-Defaulting Lenders is reallocated pursuant to Section 2.6.2, then the fees payable to the Lenders pursuant to Section 5.1 and Section 5.2 shall be adjusted in accordance with such non-Defaulting Lenders’ Pro Rata Shares (as determined pursuant to clause (a) of the definition of “Pro Rata Share”);

(e)        if any Defaulting Lender’s obligation to participate in Letters of Credit is neither Cash Collateralized nor reallocated pursuant to Section 2.6.2, then, without prejudice to any rights or remedies of any Issuing Lender or any Lender hereunder, all letter of credit fees payable under Section 5.2 with respect to such Defaulting Lender’s obligation to participate in Letters of Credit shall be payable to the applicable Issuing Lender until such obligation to participate in Letters of Credit is Cash Collateralized and/or reallocated; and

(f)        Subject to Section 15.21, no reallocation under this Section 2.6.2 will constitute a waiver or release of any claim of any party hereunder against a Defaulting Lender arising from that Lender having become a Defaulting Lender, including any claim of a non-Defaulting Lender as a result of that non-Defaulting Lender’s increased exposure following that reallocation.

2.6.3.    So long as any Lender is a Defaulting Lender, no Issuing Lender shall be required to issue, amend or increase any Letter of Credit, unless it is satisfied that the related exposure will be 100% covered by the Commitments of the non-Defaulting Lenders with Revolving Commitments and/or cash collateral will be provided by Borrower in accordance with Section 2.6.2, and participating interests in any such newly issued or increased Letter of Credit shall be allocated among non-Defaulting Lenders in a manner consistent with Section 2.6.2(a) (and Defaulting Lenders shall not participate therein).

2.6.4.    In the event that Administrative Agent, Borrower and the applicable Issuing Lender(s) each agree in writing that a Defaulting Lender has adequately remedied all matters that caused such Lender to be a Defaulting Lender, then the obligations to participate in Letters of Credit of the Lenders shall be readjusted to reflect the inclusion of such Lender’s Commitment and on such date such Lender shall purchase at par such of the Loans of the other

 

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Lenders as Administrative Agent determines is necessary in order for such Lender to hold such Loans in accordance with its Pro Rata Share (as determined pursuant to clause (a) of the definition of “Pro Rata Share”).

2.6.5.    Any amount payable to a Defaulting Lender hereunder (whether on account of principal, interest, fees or otherwise and including any amount that would otherwise be payable to such Defaulting Lender pursuant to Section 7.5 but excluding Section 8.7(b)) shall, in lieu of being distributed to such Defaulting Lender, be retained by Administrative Agent and, subject to any applicable requirements of law, be applied at such time or times as may be determined by Administrative Agent (i) first, to the payment of any amounts owing by such Defaulting Lender to Administrative Agent hereunder, (ii) second, pro rata, to the payment of any amounts owing by such Defaulting Lender to the Issuing Lender(s) hereunder, (iii) third, to the funding of any Revolving Loan or the funding or Cash Collateralization of any participating interest in any Letter of Credit in respect of which such Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by Administrative Agent, (iv) fourth, if so determined by Administrative Agent and Borrower, held as cash collateral for future funding obligations of the Defaulting Lender under this Agreement, (v) fifth, pro rata, to the payment of any amounts owing to Borrower or the Lenders as a result of any judgment of a court of competent jurisdiction obtained by Borrower or any Lender against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement, and (vi) sixth, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; provided, that if such payment is (x) a prepayment of the principal amount of any Loans or reimbursement obligations in respect of draws under Letters of Credit with respect to which the Issuing Lender has funded its participation obligations and (y) made at a time when the conditions set forth in Section 12.2 are satisfied, such payment shall be applied solely to prepay the Loans of, and reimbursement obligations owed to, all Revolving Lenders that are not Defaulting Lenders pro rata prior to being applied to the prepayment of any Loans, or reimbursement obligations owed to, any Defaulting Lender.

2.6.6.    No Defaulting Lender shall have any right to approve or disapprove any amendment, waiver, consent or any other action the Lenders or the Required Lenders have taken or may take hereunder (including any consent to any amendment or waiver pursuant to Section 15.1), provided that any waiver, amendment or modification requiring the consent of all Lenders or each directly affected Lender which affects such Defaulting Lender differently than other affected Lenders shall require the consent of such Defaulting Lender.

2.7.    Increase in Commitments.

2.7.1.    Borrower may by written notice to Administrative Agent (each, an “Increase Notice”), seek an increase to the existing (i) Term Loan Commitment (each an “Incremental Term Loan Commitment”, and each Term Loan provided thereunder in accordance with the terms and conditions of this Section 2.7.1, an “Incremental Term Loan”) or (ii) Revolving Commitment (each an “Incremental Revolving Loan Commitment”, and each additional Revolving Loan provided thereunder in accordance with the terms of conditions of this Section 2.7.1, an “Incremental Revolving Loan”) by an amount not in excess of $35,000,000 in the aggregate (of which not more than $5,000,000 may consist of increases to the Revolving Loan Commitment), so long as, on a pro forma basis on the date of incurrence, immediately after

 

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giving effect to the incurrence of any such Incremental Loan Commitment (assuming the full amount of any such concurrently established Incremental Revolving Commitment is drawn) and after giving effect to any transactions consummated in connection therewith, (x) the Total Debt to EBITDA Ratio for the most recently completed fiscal quarter with respect to which the Administrative Agent has received financial statements pursuant to Section 10.1.2, shall be equal to or less than the lesser of (1)(A) 4.25 to 1.00 with respect to any Incremental Loan the proceeds of which will be used to fund a Permitted Dividend or (B) 5.25 with respect to any Incremental Loan the proceeds of which will be used for a purpose permitted by Section 2.7.2(iv) other than Permitted Dividends and (2) the applicable compliance level for the most recently ended Fiscal Quarter less 0.25 and (y) with respect to any Incremental Loan the proceeds of which will be used to fund a Permitted Dividend, EBITDA shall be at least $32,000,000 calculated for the trailing twelve (12)-month period ending on the last day of the most recently completed fiscal quarter with respect to which the Administrative Agent has received financial statements pursuant to Section 10.1.2. Administrative Agent shall promptly deliver a copy of such Increase Notice to each Lender. Each such Increase Notice shall specify (i) the amount of the requested Incremental Revolving Loan Commitment or Incremental Term Loan Commitment, as applicable, and (ii) the date on which the Incremental Loan Commitment is intended to be effective (each, an “Increase Effective Date”), which shall be a date not less than 10 Business Days after the date on which such Increase Notice is delivered to Administrative Agent (or such shorter time period as agreed to in writing by Administrative Agent).

2.7.2.    Such Incremental Loan Commitment shall become effective as of such Increase Effective Date; so long as the following terms are satisfied:

(i)        both immediately before and after giving effect to such Incremental Loan Commitment, no Event of Default shall have occurred and be continuing;

(ii)        no Event of Default shall exist as of the date of funding of such Incremental Loan;

(iii)        as certified by an authorized officer of the Borrower, all representations and warranties of Borrower and the other Loan Parties set forth in this Agreement and the other Loan Documents are true and correct in all material respects with the same effect as if then made, without duplication of any “materiality” or “Material Adverse Effect” qualifiers (except to the extent such representations and warranties expressly relate to a specific earlier date, in which case such representations and warranties shall be true and correct in all material respects (without duplication of any “materiality” or “Material Adverse Effect” qualifiers) as of such earlier date) as of the Increase Effective Date;

(iv)        the proceeds of such Incremental Term Loans shall be used solely to fund Capital Expenditures, Investments, Permitted Acquisitions and Permitted Dividends, in each case to the extent permitted hereunder and the proceeds of such Incremental Revolving Loans shall be used for working capital and general corporate needs;

 

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(v)        the initial “yield” (including any original issue discount or similar yield-related discounts, deductions or payments, but excluding any customary arrangement, structuring, underwriting, amendment or similar fees in connection therewith that are not paid to all of the Lenders of such Incremental Loan Commitment) of the Incremental Loan Commitments shall be no greater than one-half percent (0.50%) per annum higher than the combined “yield” for the Term Loans (including any prior Incremental Term Loans), respectively, provided however, the Borrowers may request an increase of the “yield” on the Term Loans in order to comply with this clause (v), which Administrative Agent shall approve;

(vi)        the maturity date of the Incremental Term Loans shall be as set forth in the Incremental Term Loan Joinder Agreement; provided that, such date shall not be earlier than the Term Loan Maturity Date;

(vii)        the weighted average life to maturity of any Incremental Term Loan shall be equal to the weighted average life to maturity of the Term Loans (except to the extent of nominal amortization for periods where amortization has been eliminated as a result of prepayment of Term Loans prior to such date of determination);

(viii)        the Incremental Term Loans shall rank pari passu in right of payment and rank pari passu in right of security with the Obligations;

(ix)        the terms and provisions of additional Revolving Loans made under any Incremental Revolving Commitment shall be identical to those of the existing Revolving Loans;

(x)        shall not be secured by property other than the Collateral or be incurred or guaranteed by any Person other than a Loan Party; and

(xi)        Administrative Agent shall have provided its prior written consent with respect to any Incremental Loan Commitment, to be granted or denied in the Administrative Agent’s sole discretion.

2.7.3.    The Borrower agrees that no Lender shall have any obligation to provide an Incremental Loan Commitment. No Incremental Loan Commitment shall become effective until all existing and/or new Lenders committing to such Incremental Loan Commitment have delivered to Administrative Agent a writing in form reasonably satisfactory to Administrative Agent pursuant to which such existing Lenders and/or new Lenders state the amount of their Incremental Term Loan Commitment, or Incremental Revolving Loan Commitment, as applicable, and agree to assume and accept the obligations and rights of a Lender hereunder; provided that no new Lenders may become Lenders hereunder or commit to provide any of the Incremental Loan Commitment except with the prior written consent of the Administrative Agent, to be granted or denied in the Administrative Agent’s sole discretion. Upon the Increase Effective Date, pursuant to this Section 2.7, Annex A shall be deemed amended and replaced with a new Annex A reflecting the new Commitments hereunder and, to the extent the pricing on the Term Loans is increased pursuant to this Section 2.7, the definition of Applicable Margin and any other relevant definitions shall be deemed amended to reflect such pricing increase.

 

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2.7.4.    At least five (5) Business Days prior to the applicable Increase Effective Date, the Borrower Representative shall provide Administrative Agent with a written offer to the Lenders (which offer Administrative Agent shall promptly deliver to the Lenders) to commit to the applicable Incremental Term Loan Commitment, (i) first on a pro rata basis to Lenders, which each Lender may in its sole and absolute discretion accept or decline (it being understood that any Lender not affirmatively committing in writing to its pro rata portion, within five (5) Business Days after the delivery thereof, shall be deemed to have declined) and (ii) second, if any Lender has declined its pro rata share or any part thereof, such remaining amounts on a non-pro rata basis to the Lenders accepting their pro rata share of such requested Incremental Term Loan Commitment. Within five (5) Business Days of Administrative Agent’s receipt of such offer from Borrower, Administrative Agent shall deliver to Borrower written notice from any Lenders committing to the requested Incremental Loan Commitment pursuant to which such Lenders shall state the amount of their Incremental Term Loan Commitment or Incremental Revolving Loan Commitment, as applicable. If following the application of the two immediately preceding sentences, some or all of the Lenders do not agree to fund the entire requested Incremental Loan Commitment, Borrower may propose new lender(s), which new lender(s) must be a Person which would be an eligible assignee pursuant to Section 15.6 hereof, to which Borrower proposes to offer the remaining requested Incremental Term Loan Commitment and request Administrative Agent’s consent (within three (3) Business Days following receipt of such request, Administrative Agent shall provide written notice to Borrower indicating that such proposed new lender(s) is or is not acceptable to Administrative Agent (which consent shall be provided or withheld at the sole discretion of the Administrative Agent).

2.7.5.    Other than with respect to pricing, margins, interest rate floors, fees and original issue discount, amortization and maturity date (which may be later but not before), the terms and provisions of any Incremental Term Loans shall be identical to the Term Loans existing immediately prior to giving effect to any such Incremental Term Loan; provided that representations, warranties, covenants and events of default with respect to such Incremental Term Loan may be inconsistent with the Term Loans (including all prior Incremental Term Loans) so long as, if any such representation, warranty, covenant or event of default is in addition to, or more restrictive than, those applicable to the Term Loans (including all prior Incremental Term Loans), either (x) such Term Loans shall receive the benefit of any such additional or more restrictive representation, warranty, covenant or event of default or (y) such representations, warranties, covenants or events of default shall be effective after the maturity date applicable to the Term Loans (including all prior Incremental Term Loans).

2.7.6.    Unless otherwise specifically provided herein, all references in the Loan Documents (a) to Term Loans shall be deemed, unless the context otherwise requires, to include references to Incremental Term Loans and (b) to Revolving Loans shall be deemed, unless the context otherwise requires, to include references to any additional Revolving Loans provided under any Incremental Revolving Commitment.

2.7.7.    Any amendments to this Agreement or any other Loan Document to reflect the incurrence of and terms and conditions of any Incremental Loans in accordance with the terms and conditions hereof, shall require the approval of Administrative Agent and participating Lenders but shall not require the approval any Lenders not providing any such Incremental Revolving Loans or Incremental Term Loans, as applicable.

 

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2.7.8.    The Incremental Loan Commitments and Incremental Loans shall be entitled to all the benefits afforded by, this Agreement and the other Loan Documents, and shall, without limiting the foregoing, benefit equally and ratably from the Collateral Documents.

SECTION 3

EVIDENCING OF LOANS.

3.1.      Notes. At a Lender’s request, the Loans of such Lender shall be evidenced by a Note, with appropriate insertions, payable to such Lender and its registered assigns in a face principal amount equal to the sum of such Lender’s Revolving Commitment plus the principal amount of such Lender’s Term Loans.

3.2.      Recordkeeping. Administrative Agent, on behalf of each Lender, shall record in its records, the date and amount of each Loan made by each Lender, each repayment or conversion thereof and, in the case of each LIBOR Loan, the dates on which each Interest Period for such Loan shall begin and end. The aggregate unpaid principal amount so recorded shall be rebuttably presumptive evidence of the principal amount of the Loans owing and unpaid. The failure to so record any such amount or any error in so recording any such amount shall not, however, limit or otherwise affect the Obligations of Borrower hereunder or under any Note to repay the principal amount of the Loans hereunder, together with all interest accruing thereon.

SECTION 4

INTEREST.

4.1.      Interest Rates. Borrower agrees to pay interest on the unpaid principal amount of each Loan for the period commencing on the date of such Loan until such Loan is paid in full as follows:

(a)        at all times while such Loan is a Base Rate Loan, at a rate per annum equal to the sum of the Base Rate from time to time in effect plus the Applicable Margin for Base Rate Loans; and

(b)        at all times while such Loan is a LIBOR Loan, at a rate per annum equal to the sum of the LIBOR Rate applicable to each Interest Period for such Loan plus the Applicable Margin for LIBOR Loans;

provided that, upon the occurrence and during the continuance of an Event of Default, upon the election of the Required Lenders, the interest rate applicable to each Loan shall be increased by 2% (and, in the case of Obligations not bearing interest, such Obligations shall bear interest at 2% per annum), provided further that such increase may thereafter be rescinded by the Administrative Agent and Required Lenders, notwithstanding Section 15.1. Notwithstanding the foregoing, upon the occurrence of an Event of Default under Sections 13.1.1 or 13.1.4, such increase and such bearing of interest shall occur automatically. In no event shall interest payable by Borrower to any Lender hereunder exceed the maximum rate permitted under applicable law, and if any such provision of this Agreement is in contravention of any such law, such provision shall be deemed modified to limit such interest to the maximum rate permitted under such law.

 

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4.2.      Interest Payment Dates. Accrued interest on each Base Rate Loan shall be payable in arrears on the last Business Day of each calendar month, upon a prepayment of such Loan and at maturity. Accrued interest on each LIBOR Loan shall be payable in arrears on the last Business Day of each calendar month and on the last day of the Interest Period with respect thereto, upon a prepayment of such Loan, and at maturity. After maturity, and at any time an Event of Default exists, overdue interest on all Loans shall be payable on demand. Borrower hereby authorizes Administrative Agent to, and Administrative Agent may, from time to time, charge the Loan Account pursuant to Section 7.1.2 with the amount of any interest payment due under this Agreement.

4.3.      Setting and Notice of LIBOR Rates/Replacement of LIBOR Rate.

4.3.1.        The applicable LIBOR Rate for each Interest Period shall be determined by Administrative Agent. Each determination of the applicable LIBOR Rate by Administrative Agent shall be conclusive and binding upon the parties hereto, in the absence of demonstrable error.

4.3.2.        Replacement of LIBOR Rate. If at any time the Administrative Agent determines (which determination shall be conclusive absent manifest error) a specific date after which the LIBOR Rate shall no longer be used for determining interest rates for loans, then the Administrative Agent and the Borrower shall endeavor to establish an alternate rate of interest to the LIBOR Rate that gives due consideration to the then prevailing market convention for determining a rate of interest for loans similar to the Loans in the United States at such time, and shall enter into an amendment to this Agreement to reflect such alternate rate of interest and such other related changes to this Agreement as may be applicable (but for the avoidance of doubt, such related changes shall not include a reduction of the Applicable Margin). Notwithstanding anything to the contrary in Section 15.1, such amendment shall become effective without any further action or consent of any other party to this Agreement so long as the Administrative Agent shall not have received, within five Business Days of the date notice of such alternate rate of interest is provided to the Lenders, a written notice from the Required Lenders stating that such Required Lenders object to such amendment.

4.4.      Computation of Interest. Interest shall be computed for the actual number of days elapsed on the basis of a year of (a) 360 days for interest calculated at the LIBOR Rate and (b) 365/366 days for interest calculated at the Base Rate. The applicable interest rate for each Base Rate Loan shall change simultaneously with each change in the Base Rate and the applicable interest rate for each LIBOR Loan will change simultaneously with each change in the LIBOR Rate.

For purposes of the Interest Act (Canada), whenever any interest or fee under this Agreement is calculated using a rate based on a number of days less than a full year, such rate determined pursuant to such calculation, when expressed as an annual rate, is equivalent to (a) the applicable rate based on a year of 360 days, as the case may be, (b) multiplied by the actual number of days in the calendar year in which the period for which such interest or fee is payable (or compounded) ends, and (c) divided by the number of days based on which such rate is calculated.

 

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If any provision of this Agreement or of any of the other Loan Documents would obligate any Loan Party to make any payment of interest or other amount payable to any Lender in an amount or calculated at a rate which would be prohibited by applicable law or would result in a receipt by such Lender of interest at a criminal rate (as such terms are construed under the Criminal Code (Canada)) then, notwithstanding such provisions, such amount or rate shall be deemed to have been adjusted with retroactive effect to the maximum amount or rate of interest, as the case may be, as would not be so prohibited by applicable law or so result in a receipt by such Lender of interest at a criminal rate, such adjustment to be effected, to the extent necessary, as follows: firstly, by reducing the amount or rate of interest required to be paid to such Lender and thereafter, by reducing any fees, commissions, premiums and other amounts required to be paid.

SECTION 5

FEES.

5.1.      Non-Use Fee. Borrower agrees to pay to Administrative Agent for the account of each Lender with a Revolving Commitment (except as provided in Section 2.6) a non-use fee, for the period from the Closing Date to the Termination Date, at the Non-Use Fee Rate in effect from time to time of such Lender’s Pro Rata Share (as adjusted from time to time) of the average daily unused amount of the Revolving Commitments. For purposes of calculating usage under this Section, the Revolving Commitments shall be deemed used to the extent of Revolving Outstandings. Such non-use fee shall be payable in arrears on the last Business Day of each calendar quarter and on the Termination Date for any period then ending for which such non-use fee shall not have previously been paid. The non-use fee shall be computed for the actual number of days elapsed on the basis of a year of 360 days.

5.2.      Letter of Credit Fees.

(a)        Except as provided in Section 2.6, Borrower agrees to pay to Administrative Agent for the account of each Lender with a Revolving Commitment (except as provided in Section 2.6) a letter of credit fee for each Letter of Credit equal to the L/C Fee Rate of such Lender’s Pro Rata Share (as adjusted from time to time) of the undrawn amount of such Letter of Credit (computed for the actual number of days elapsed on the basis of a year of 360 days); provided that, upon the occurrence and during the continuance of an Event of Default, upon the election of the Required Lenders, the rate applicable to each Letter of Credit shall be increased by 2% per annum. Such letter of credit fee shall be payable in arrears on the last day of each calendar quarter and on the Termination Date (or such later date on which such Letter of Credit expires or is terminated) for the period from the date of the issuance of each Letter of Credit (or the last day on which the letter of credit fee was paid with respect thereto) to the date such payment is due or, if earlier, the date on which such Letter of Credit expired or was terminated.

(b)        In addition, with respect to each Letter of Credit, except as provided in Section 2.6, Borrower agrees to pay to any Issuing Lender, for its own account, (i) such fees and expenses as such Issuing Lender customarily requires in connection with the issuance, negotiation, processing and/or administration of

 

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letters of credit in similar situations and (ii) a letter of credit fronting fee in the amount and at the times agreed to by Borrower and such Issuing Lender.

5.3.      Prepayment Fees. If Borrower shall pay or prepay all or any portion of the Term Loans pursuant to Section 6.2.1 prior to the second anniversary of the Closing Date, whether by voluntary prepayment by Borrower, by reason of a mandatory prepayment pursuant to Section 6.2.2 (excluding Section 6.2.2(a)(iv), (v) and (vi)), by reason of the occurrence of an Event of Default or the acceleration of the Term Loans and whether before or after acceleration of the Obligations, Borrower shall pay to Administrative Agent, for the benefit of Lenders as liquidated damages and compensation for the costs of being prepared to make funds available hereunder a fee (the “Prepayment Fee”) in an amount equal to the Applicable Percentage (as defined below) multiplied by the principal amount of the Term Loans prepaid or paid after acceleration. As used herein, the term “Applicable Percentage” shall mean (x) two percent (2%), in the case of a prepayment on or prior to the first anniversary of the Closing Date; and (y) one percent (1%), in the case of a prepayment after the first anniversary of the Closing Date but on or prior to the second anniversary of the Closing Date. The Loan Parties agree that the Applicable Percentages are a reasonable calculation of Lenders’ lost profits in view of the difficulties and impracticality of determining actual damages resulting from an early termination of the Term Loans. Notwithstanding the foregoing, in the event Borrower consummates an acquisition or investment involving a Target for cash consideration in excess of the greater of (i) 75% of the enterprise value of the Loan Parties as of the Closing Date and (ii) 75% of the enterprise value of the Loan Parties as of the date of such acquisition or investment prior to the first anniversary of the Closing Date, Borrower shall have the right to prepay the Term Loans (x) subject to an early termination fee of one percent (1%) multiplied by the principal amount of the Term Loans prepaid or paid after acceleration if Borrower has offered Agent and Lenders an opportunity to provide a new term loan facility for such acquisition or investment on terms not less favorable than the terms of this Agreement and Agent and Lenders shall have elected not to participate in such alternate financing and (y) without paying an early termination fee if the Agent and Lenders provide the alternate financing.

5.4.      Administrative Agent’s Fees. Borrower agrees to pay to Administrative Agent such agent’s fees as are described herein and the fees set forth in the Agent Fee Letter.

SECTION 6

REDUCTION OR TERMINATION OF THE REVOLVING COMMITMENT;

PREPAYMENTS.

6.1.      Reduction or Termination of the Revolving Commitment.

6.1.1.        Voluntary Reduction or Termination of the Revolving Commitment. Borrower may from time to time on at least five Business Days’ prior written notice (which notice may be revocable and conditional), received by Administrative Agent (which shall promptly advise each Lender thereof) permanently reduce the Revolving Commitments to an amount not less than the Revolving Outstandings (after giving effect to any concurrent repayments of Loans and terminations or cash collateralizations or other backstop of any Letter of Credit). Any such reduction shall be in an amount not less than $250,000 or a higher integral multiple of $50,000. Concurrently with any reduction of the Revolving Commitments to zero,

 

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Borrower shall pay all interest on the Revolving Loans, all non-use fees and all letter of credit fees and shall Cash Collateralize in full or otherwise backstop in a manner satisfactory to Administrative Agent all obligations arising with respect to the outstanding Letters of Credit, if any.

6.1.2.        Mandatory Reductions of Revolving Commitment. On the date of any Mandatory Prepayment Event, the Revolving Commitments shall be permanently reduced by an amount (if any) equal to the Designated Proceeds of such Mandatory Prepayment Event over the amount (if any) applied to prepay Term Loans pursuant to Section 6.2.2.

6.1.3.        All Reductions of the Revolving Commitment. All reductions of the Revolving Commitments shall reduce the Revolving Commitments ratably among the Lenders according to their respective Pro Rata Shares.

6.2.      Prepayments.

6.2.1.        Voluntary Prepayments. Subject to Section 5.3, Borrower may from time to time prepay any or all of the Loans in whole or in part, either Term Loans and/or Revolving Loans, as selected by Borrower, without penalty or premium except as otherwise provided in Section 8.4 or any other Loan Document; provided that Borrower Representative shall give Administrative Agent (which shall promptly advise each Lender) notice thereof, which may be revocable and conditional, not later than 10:00 A.M., Chicago time, on the day of such prepayment (which shall be a Business Day), specifying the Loans to be prepaid and the date and amount of prepayment. Any such partial prepayment of the Term Loans shall be in an amount equal to $250,000 or a higher integral multiple of $50,000.

6.2.2.        Mandatory Prepayments.

(a)        Borrower shall make a prepayment of the Term Loans until paid in full upon the occurrence of any of the following (each a “Mandatory Prepayment Event”) at the following times and in the following amounts (such applicable amounts being referred to as “Designated Proceeds”):

(i)        Promptly after, and in no event more than five (5) Business Days after, the receipt by any Loan Party of any Net Cash Proceeds from any Asset Disposition made pursuant to Section 11.5(b)(ii) or (xiii), in an amount equal to 100% of such Net Cash Proceeds.

(ii)        Promptly after, and in no event more than five (5) Business Days after, the receipt by any Loan Party of any Net Cash Proceeds from any issuance of Capital Securities of any Loan Party other than a Permitted Securities Issuance, in an amount equal to 100% of such Net Cash Proceeds.

(iii)        Promptly after, and in no event more than five (5) Business Days after, the receipt by any Loan Party of any Net Cash Proceeds from any issuance of any Debt of any Loan Party (excluding Debt permitted by Section 11.1), in an amount equal to 100% of such Net Cash Proceeds.

 

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(iv)        Within the earlier of (x) one hundred twenty-five (125) days after the end of each Fiscal Year (commencing with the Fiscal Year ending on December 31, 2018) and (y) five (5) Business Days after Borrower’s delivery of the Fiscal Year-end audited financial statements delivered pursuant to Section 10.1.1 (commencing with the Fiscal Year ending on December 31, 2018), in an amount equal to the ECF Percentage of Excess Cash Flow for such Fiscal Year minus (x) the amount of any voluntary prepayments of the revolving loans to the extent accompanied by a permanent reduction of the Commitments pursuant to Section 6.1.1 and (y) the amount of any voluntary prepayments of the Term Loans pursuant to Section 6.2.1 (excluding payments funded from the Available Amount), in each case, made during such Fiscal Year;

(v)        Concurrently with the receipt by any Loan Party of any Cure Amounts pursuant to Section 13.4, in an amount equal to 100% of such Cure Amounts; and

(vi)        Promptly after, and in no event more than five (5) Business Days after the receipt by any Loan Party of any Extraordinary Receipts, in an amount equal to 100% of those Extraordinary Receipts.

(b)        If on any date the Revolving Outstandings exceed Revolving Loan Availability, Borrower shall promptly (and in any event within two (2) Business Days) first prepay Revolving Loans and second Cash Collateralize the outstanding Letters of Credit, in an aggregate amount sufficient to eliminate such excess; provided that any Letter of Credit that is Cash Collateralized in order to comply with this provision shall not be included in the calculation of Revolving Outstandings for purposes of determining whether Revolving Outstandings exceed Revolving Loan Availability.

(c)        If on any day on which the Revolving Commitments are reduced pursuant to Section 6.1.2 the Revolving Outstandings exceeds Revolving Loan Availability, Borrower shall immediately first prepay Revolving Loans and second Cash Collateralize the outstanding Letters of Credit, in an aggregate amount sufficient to eliminate such excess; provided that any Letter of Credit that is Cash Collateralized in order to comply with this provision shall not be included in the calculation of Revolving Outstandings for purposes of determining whether Revolving Outstandings exceed Revolving Loan Availability.

6.3.      Manner of Prepayments.

6.3.1.        All Prepayments. Any prepayment of a LIBOR Loan on a day other than the last day of an Interest Period therefor shall include interest on the principal amount being repaid and shall be subject to Section 8.4. All prepayments of Term Loans shall be applied pro rata among the Term Loans according to the principal amounts thereof and, as to each Term Loan, voluntary prepayments shall be applied as directed by the Borrower and mandatory prepayments shall be applied pro rata to the first four installments thereof and thereafter to the remaining installments thereof (including, without limitation, the final installment thereof) on a pro rata basis.

6.4.      Repayments.

 

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6.4.1.        Revolving Loans. The Revolving Loans of each Lender shall be paid in full and the Revolving Commitments shall terminate on the Termination Date.

6.4.2.        Payment of Principal. On the last day of each fiscal quarter, commencing with the fiscal quarter ending December 31, 2018, the Term A Loan shall be repaid to Administrative Agent, for the benefit of the Lenders in accordance with each Lender’s Pro Rata Share of the aggregate principal amount of funded Term A Loans, in an amount equal to: (a) with respect to each of the first seven full fiscal quarters after the Closing Date, one-quarter of one percent (1/4%) of the aggregate amount of Term A Loans made hereunder and (b) with respect to each fiscal quarter ending thereafter, one and one-quarter of one percent (11/4%) of the aggregate amount of Term A Loans made hereunder (as such amounts shall be reduced in connection with prepayments in accordance with Section 6.3.1). Unless sooner paid in full, the outstanding principal balance of the Term A Loans shall be paid in full on the Term Loan Maturity Date. The principal amounts of any Incremental Term Loan shall be repaid in installments as set forth in the applicable Incremental Term Loan Joinder Agreement.

SECTION 7

MAKING AND PRORATION OF PAYMENTS; SETOFF; TAXES.

7.1.      Making of Payments.

7.1.1.        All payments of principal or interest on the Note(s), and of all fees, shall be made by Borrower to Administrative Agent in immediately available funds at the office specified by Administrative Agent not later than 12:00 P.M., Chicago time, on the date due; and funds received after that hour shall be deemed to have been received by Administrative Agent on the following Business Day. Subject to Section 2.6, Administrative Agent shall promptly remit to each Lender its share of all such payments received in collected funds by Administrative Agent for the account of such Lender. All payments under Section 8.1 shall be made by Borrower directly to the Lender entitled thereto without setoff, counterclaim or other defense.

7.1.2.        The Lenders and the Borrower hereby authorize Administrative Agent to, and Administrative Agent may, from time to time, charge the Loan Account of Borrower with any amount due and payable by Borrower under any Loan Document. Each of the Lenders and the Borrower agrees that Administrative Agent may make any such charges regardless of whether any Default or Event of Default has occurred and is continuing or whether any of the conditions precedent in Section 12.2 have been satisfied. Any amount charged to the Loan Account of the Borrower will be deemed a Revolving Loan under this Agreement made by the applicable Lenders to the Borrower, funded by Administrative Agent on behalf of the applicable Lenders, and subject to Section 2.1. The Lenders and the Borrower confirm that any charges that Administrative Agent may so make to the Loan Account of the Borrower as provided in this Agreement will be made as an accommodation to the Borrower and solely at Administrative Agent’s discretion. Administrative Agent shall from time to time upon the request of any Lender charge the Loan Account of the Borrower with any amount due and payable under any Loan Document to that Person.

7.2.      Application of Certain Payments. So long as no Event of Default has occurred and is continuing, (a) payments matching specific scheduled payments then due shall be applied

 

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to those scheduled payments and (b) voluntary and mandatory prepayments shall be applied as set forth in Sections 6.2 and 6.3. After the occurrence and during the continuance of an Event of Default, all amounts collected or received by Administrative Agent or any Lender as proceeds from the sale of, or other realization upon, all or any part of the Collateral shall be applied as Administrative Agent shall determine in its discretion or, in the absence of a specific determination by Administrative Agent, as set forth in the Guaranty and Collateral Agreement.

7.3.      Due Date Extension. If any payment of principal or interest with respect to any of the Loans, or of any fees, falls due on a day which is not a Business Day, then such due date shall be extended to the immediately following Business Day (unless, in the case of a LIBOR Loan, such immediately following Business Day is the first Business Day of a calendar month, in which case such due date shall be the immediately preceding Business Day) and, in the case of principal, additional interest shall accrue and be payable for the period of any such extension.

7.4.      Setoff. All payments made by Borrower hereunder or under any Loan Documents shall be made without setoff, counterclaim, or other defense. Borrower, for itself and each other Loan Party, agrees that Administrative Agent and each Lender have all rights of set-off and bankers’ lien provided by applicable law, except with respect to Excluded Accounts and the Administrative Agent and each Lender hereby waive any such rights in respect of Excluded Accounts, and in addition thereto, Borrower, for itself and each other Loan Party, agrees that at any time any Event of Default exists, Administrative Agent and each Lender may apply to the payment of any Obligations of Borrower and each other Loan Party hereunder, to the extent then due, any and all balances, credits, deposits, accounts or moneys of Borrower and each other Loan Party then or thereafter with Administrative Agent or such Lender to the extent not constituting Excluded Accounts.

7.5.      Proration of Payments. Except as provided in Section 2.6, if any Lender shall obtain any payment or other recovery (whether voluntary, involuntary, by application of offset or otherwise), on account of (a) principal of or interest on any Loan (but excluding (i) any payment pursuant to Section 8 or 15.6 and (ii) payments of interest on any Affected Loan) or (b) its participation in any Letter of Credit in excess of its applicable Pro Rata Share of payments and other recoveries obtained by all Lenders on account of principal of and interest on the Loans (or such participation) then held by them, then such Lender shall purchase from the other Lenders such participations in the Loans (or sub-participations in Letters of Credit) held by them as shall be necessary to cause such purchasing Lender to share the excess payment or other recovery ratably with each of them; provided that if all or any portion of the excess payment or other recovery is thereafter recovered from such purchasing Lender, the purchase shall be rescinded and the purchase price restored to the extent of such recovery.

7.6.      Taxes.

(a)        All payments hereunder or under the Loan Documents (including any payment of principal, interest, or fees) to, or for the benefit, of any person shall be made by the Loan Parties free and clear of and without deduction or withholding for, or on account of, any Taxes now or hereinafter imposed by any taxing authority, except as required by applicable laws.

 

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(b)        If a Loan Party makes any payment hereunder or under any Loan Document in respect of which it is required by applicable law to deduct or withhold any Non-Excluded Taxes, such Loan Party shall increase the payment hereunder or under any such Loan Document such that after the reduction for the amount of Non-Excluded Taxes deducted or withheld (including any Non-Excluded Taxes withheld or imposed with respect to the additional payments required under this Section 7.6(b)), the amount paid to the Lenders or Administrative Agent equals the amount that was payable hereunder or under any such Loan Document had such deduction or withholding not been made. To the extent any Loan Party deducts or withholds any Taxes on payments hereunder or under any Loan Document, such Loan Party shall pay the full amount deducted or withheld to the relevant taxing authority within the time allowed for payment under applicable law and shall deliver to Administrative Agent within 30 days after it has made payment to such authority a receipt issued by such taxing authority (or other evidence satisfactory to Administrative Agent) evidencing the payment of all amounts so required to be deducted or withheld from such payment.

(c)        If any Lender or Administrative Agent is required by law to make any payments of any Non-Excluded Taxes on or in relation to any amounts received or receivable hereunder or under any other Loan Document, or any Non-Excluded Tax is assessed against a Lender or Administrative Agent with respect to its activities hereunder or any other Loan Document or against amounts received or receivable hereunder or under any other Loan Document, the Loan Parties will indemnify such person, within 10 days after demand therefor, against (i) such Non-Excluded Tax, (ii) any Non-Excluded Taxes imposed as a result of the receipt of the payment under this Section 7.6(c), and (iii) any reasonable expenses arising therefrom or with respect thereto, whether or not such Non-Excluded Taxes were correctly or legally imposed or asserted by the relevant taxing authority. A certificate prepared in good faith as to the amount of such payment by such Lender or Administrative Agent shall, absent manifest error, be final, conclusive, and binding on all parties.

(d)        (i)        To the extent permitted by applicable law, each Lender that is not a United States person within the meaning of Code Section 7701(a)(30) (a “Non-U.S. Lender”) shall deliver to Borrower and Administrative Agent on or prior to the Closing Date (or in the case of a Lender that is an Assignee, on the date of such assignment to such Lender) two accurate and complete original signed copies of IRS Form W-8BEN, W-8BEN-E, W-8ECI, W-8IMY (accompanied by appropriate attachments) or any successor or other applicable form prescribed by the IRS certifying, to the extent applicable, to such Lender’s entitlement to a complete exemption from, or a reduced rate in, United States withholding tax on interest payments or other withholdable payments to be made hereunder or any Loan Document. If a Lender that is a Non-U.S. Lender is claiming a complete exemption from withholding on interest pursuant to Sections 871(h) or 881(c) of the Code, the Lender shall deliver (along with two accurate and complete original signed copies of IRS Form W-8BEN or W-8BEN-E, or, to the extent such Lender is not the beneficial owner, IRS W-8IMY, accompanied by appropriate attachments) a certificate in form and substance reasonably acceptable to Administrative Agent certifying that such Non-U.S. Lender is not a “bank” within the meaning of Section 881(c)(3)(A) of the Code, a “10 percent shareholder” of the Borrower within the meaning of Section 881(c)(3)(B) of the Code, or a “controlled foreign corporation” related to the Borrower as described in Section 881(c)(3)(C) of the Code (any such certificate, a “Withholding Certificate”). In addition, each Lender that is a Non-U.S. Lender agrees that from time to time after the

 

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Closing Date, (or in the case of a Lender that is an Assignee, after the date of the assignment to such Lender), when a lapse in time (or change in circumstances occurs) renders the prior certificates hereunder obsolete or inaccurate in any material respect, such Lender shall, to the extent permitted under applicable law, deliver to Borrower and Administrative Agent two new and accurate and complete original signed copies of an IRS Form W-8BEN, W-8BEN-E, W-8ECI, or W-8IMY (or any successor or other applicable forms prescribed by the IRS), and if applicable, a new Withholding Certificate, to confirm or establish the entitlement of such Lender or Administrative Agent, to the extent applicable, to an exemption from, or reduction in, United States withholding tax on interest payments or other withholdable payments to be made hereunder on any Loan.

(ii)        Each Lender that is not a Non-U.S. Lender shall provide two properly completed and duly executed copies of IRS Form W-9 (or any successor or other applicable form) to Borrower and Administrative Agent certifying that such Lender is exempt from United States backup withholding tax. To the extent that a form provided pursuant to this Section 7.6(d)(ii) is rendered obsolete or inaccurate in any material respect as result of expiration or a change in circumstances with respect to the status of a Lender, such Lender shall, to the extent permitted by applicable law, deliver to Borrower and Administrative Agent revised forms necessary to confirm or establish the entitlement to such Lender’s or Administrative Agent’s exemption from United States backup withholding tax. The Administrative Agent shall comply with this Section 7.6(d)(ii) (and be subject to Section 7.6(d)(iii)) as if it were a Lender.

(iii)        Notwithstanding any provision in this Agreement to the contrary, Borrower shall not be required to pay additional amounts to a Lender, or indemnify any Lender, under this Section 7.6 to the extent that such obligations would not have arisen but for the failure of such Lender to comply with Section 7.6(d).

(iv)        If a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Borrower and the Administrative Agent at the time or times prescribed by law and at such time or times reasonably requested by the Borrower or the Administrative Agent such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower or the Administrative Agent as may be necessary for the Borrower and the Administrative Agent to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender’s obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely for purposes of this clause (iv), “FATCA” shall include any amendments made to FATCA after the date of this Agreement.

(e)        Each Lender agrees to indemnify Administrative Agent and hold Administrative Agent harmless for the full amount of any and all present or future Taxes and related liabilities (including penalties, interest, additions to tax and expenses, and any Taxes imposed by any jurisdiction on amounts payable to Administrative Agent under this

 

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Section 7.6) which are imposed on or with respect to principal, interest or fees payable to such Lender hereunder and which are not paid by Borrower pursuant to this Section 7.6, whether or not such Taxes or related liabilities were correctly or legally asserted. This indemnification shall be made within 10 days from the date Administrative Agent makes written demand therefor. A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the Administrative Agent to the Lender from any other source against any amount due to the Administrative Agent under this paragraph (e).

(f)        If any Lender determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified by a Loan Party or with respect to which a Loan Party has paid additional amounts pursuant to this Section 7.6, it shall pay to the Borrower an amount equal to such refund (but only to the extent of indemnity payments made, or additional amounts paid, by the Borrower under this Section 7.6 with respect to the Taxes giving rise to such refund), net of all reasonable out-of-pocket expenses (including Taxes) incurred by such Lender, and without interest (other than any interest paid by the relevant taxing authority with respect to such refund), provided that the Loan Party, upon the request of the Lender, agrees to repay the amount paid over to the Loan Party (plus any penalties, interest or other charges imposed by the relevant Tax authority) to the Lender in the event the Lender is required to repay such refund to such Tax authority. Notwithstanding anything to the contrary in this subsection, in no event will the applicable Lender be required to pay any amount to the Loan Party pursuant to this subsection the payment of which would place the Lender in a less favorable net after-Tax position than such Lender would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid. This subsection shall not be construed to require any Lender to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to any Loan Party or any other Person.

(g)        The Loan Parties shall timely pay to the relevant taxing authority in accordance with applicable law, or at the option of the Administrative Agent timely reimburse it for the payment of, any Other Taxes.

(h)        As soon as practicable after any payment of any Taxes by any Loan Party to a taxing authority pursuant to this Section 7.6, such Loan Party shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such taxing authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent.

(i)        For purposes of this Section 7.6, the term “Lender” includes any Issuing Lender and the term “applicable law” includes FATCA.

(j)        Each party’s obligations under this Section 7.6 shall survive the resignation or replacement of the Administrative Agent or any assignment of rights by, or the

 

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replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all obligations under any Loan Document.

SECTION 8

INCREASED COSTS; SPECIAL PROVISIONS FOR LIBOR LOANS.

8.1.      Increased Costs.

(a)        If any Change in Law (i) imposes, modifies or deems applicable any reserve (including any reserve imposed by the FRB, but excluding any reserve included in the determination of the LIBOR Rate pursuant to Section 4), special deposit or similar requirement against assets of, deposits with or for the account of, or credit extended by any Lender; or (ii) shall impose on any Lender any other condition (excluding Taxes, which for the avoidance of doubt are addressed in Section 7.6) affecting its LIBOR Loans, its Note or its obligation to make LIBOR Loans; and the result of anything described in clauses (i) and (ii) above is to increase the cost to (or to impose a cost on) such Lender (or any LIBOR Office of such Lender) of making or maintaining any LIBOR Loan, or to reduce the amount of any sum received or receivable by such Lender (or its LIBOR Office) under this Agreement or under its Note with respect thereto, then upon demand by such Lender (which demand shall be accompanied by a statement setting forth the basis for such demand and a calculation of the amount thereof in reasonable detail, a copy of which shall be furnished to Administrative Agent), Borrower shall pay directly to such Lender such additional amount as will compensate such Lender for such increased cost or such reduction, so long as such amounts have accrued on or after the day which is 180 days prior to the date on which such Lender first made demand therefor.

(b)        If any Lender shall reasonably determine that any Change in Law has or would have the effect of reducing the rate of return on any Lender’s or any Person controlling such Lender’s capital as a consequence of such Lender’s obligations hereunder or under any Letter of Credit to a level below that which such Lender or such controlling Person could have achieved but for such change, adoption, phase-in or compliance (taking into consideration such Lender’s or such controlling Person’s policies with respect to capital adequacy) by an amount deemed by such Lender or such controlling Person to be material, then from time to time, upon demand by such Lender (which demand shall be accompanied by a statement setting forth the basis for such demand and a calculation of the amount thereof in reasonable detail, a copy of which shall be furnished to Administrative Agent), Borrower shall pay to such Lender such additional amount as will compensate such Lender or such controlling Person for such reduction so long as such amounts have accrued on or after the day which is 180 days prior to the date on which such Lender first made demand therefor.

8.2.      Basis for Determining Interest Rate Inadequate or Unfair. If:

(a)        Administrative Agent reasonably determines (which determination shall be binding and conclusive on Borrower) that by reason of circumstances affecting the interbank LIBOR market adequate and reasonable means do not exist for ascertaining the applicable LIBOR Rate; or

 

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(b)    the Required Lenders advise Administrative Agent that the LIBOR Rate as determined by Administrative Agent will not adequately and fairly reflect the cost to such Lenders of maintaining or funding LIBOR Loans for such Interest Period (taking into account any amount to which such Lenders may be entitled under Section 8.1) or that the making or funding of LIBOR Loans has become impracticable as a result of an event occurring after the date of this Agreement which in the opinion of such Lenders materially affects such Loans;

then Administrative Agent shall promptly notify the other parties thereof and, so long as such circumstances shall continue, (i) no Lender shall be under any obligation to make LIBOR Loans and (ii) on the last day of the current Interest Period for each LIBOR Loan, such Loan shall, unless then repaid in full, automatically convert to a Base Rate Loan.

8.3.      Changes in Law Rendering LIBOR Loans Unlawful. If any change in, or the adoption of any new, law or regulation, or any change in the interpretation of any applicable law or regulation by any governmental or other regulatory body charged with the administration thereof, should make it (or in the good faith judgment of any Lender cause a substantial question as to whether it is) unlawful for any Lender to make, maintain or fund LIBOR Loans, then such Lender shall promptly notify each of the other parties hereto and, so long as such circumstances shall continue, (a) such Lender shall have no obligation to make a LIBOR Loan (but shall make Base Rate Loans concurrently with the making of LIBOR Loans by the Lenders which are not so affected, in each case in an amount equal to the amount of LIBOR Loans which would be made by such Lender at such time in the absence of such circumstances) and (b) on the last day of the current Interest Period for each LIBOR Loan of such Lender (or, in any event, on such earlier date as may be required by the relevant law, regulation or interpretation), such LIBOR Loan shall, unless then repaid in full, automatically convert to a Base Rate Loan. Each Base Rate Loan made by a Lender which, but for the circumstances described in the foregoing sentence, would be a LIBOR Loan (an “Affected Loan”) shall remain outstanding for the period corresponding to the Group of LIBOR Loans of which such Affected Loan would be a part absent such circumstances.

8.4.      Funding Losses. Borrower hereby agrees that within 30 days after demand by any Lender (which demand shall be accompanied by a statement setting forth the basis for the amount being claimed, a copy of which shall be furnished to Administrative Agent), Borrower will indemnify such Lender against any net loss or expense (other than loss of profit) which such Lender may sustain or incur (including any net loss or expense incurred by reason of the liquidation or reemployment of deposits or other funds acquired by such Lender to fund or maintain any LIBOR Loan), as reasonably determined by such Lender, as a result of (a) any payment, prepayment or conversion of any LIBOR Loan of such Lender on a date other than the last day of an Interest Period for such Loan (including any conversion pursuant to Section 8.3) or (b) any failure of Borrower to borrow, prepay, convert or continue any Loan on a date specified therefor in a notice of borrowing, prepayment, conversion or continuation pursuant to this Agreement. For this purpose, all notices to Administrative Agent pursuant to this Agreement shall be deemed to be irrevocable.

8.5.      Right of Lenders to Fund through Other Offices. Each Lender may, if it so elects, fulfill its commitment as to any LIBOR Loan by causing a foreign branch or Affiliate of such Lender to make such Loan; provided that in such event for the purposes of this Agreement such

 

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Loan shall be deemed to have been made by such Lender and the obligation of Borrower to repay such Loan shall nevertheless be to such Lender and shall be deemed held by it, to the extent of such Loan, for the account of such branch or Affiliate.

8.6.      Discretion of Lenders as to Manner of Funding. Notwithstanding any provision of this Agreement to the contrary, each Lender shall be entitled to fund and maintain its funding of all or any part of its Loans in any manner it sees fit, it being understood, however, that for the purposes of this Agreement all determinations hereunder shall be made as if such Lender had actually funded and maintained each LIBOR Loan during each Interest Period for such Loan through the purchase of deposits having a maturity corresponding to such Interest Period and bearing an interest rate equal to the LIBOR Rate for such Interest Period.

8.7.      Mitigation of Circumstances; Replacement of Lenders.

(a)        Each Lender shall promptly notify Borrower and Administrative Agent of any event of which it has knowledge which will result in, and will use reasonable commercial efforts available to it (and not, in such Lender’s sole judgment, otherwise disadvantageous to such Lender) to mitigate or avoid, (i) any obligation by Borrower to pay any amount pursuant to Sections 7.6 or 8.1 or (ii) the occurrence of any circumstances described in Sections 8.2 or 8.3 (and, if any Lender has given notice of any such event described in clause (i) or (ii) above and thereafter such event ceases to exist, such Lender shall promptly so notify Borrower and Administrative Agent). Without limiting the foregoing, each Lender will designate a different funding office if such designation will avoid (or reduce the cost to Borrower of) any event described in clause (i) or (ii) above and such designation will not, in such Lender’s sole judgment, be otherwise disadvantageous to such Lender.

(b)        If Borrower becomes obligated to pay additional amounts to any Lender pursuant to Sections 7.6 or 8.1, or any Lender gives notice of the occurrence of any circumstances described in Sections 8.2 or 8.3, or any Lender becomes a Defaulting Lender, Borrower may designate another bank which is acceptable to Administrative Agent and the Issuing Lender in their reasonable discretion (such other bank being called a “Replacement Lender”) to purchase the Loans of such Lender and such Lender’s rights hereunder, without recourse to or warranty by, or expense to, such Lender, for a purchase price equal to the outstanding principal amount of the Loans payable to such Lender plus any accrued but unpaid interest on such Loans and all accrued but unpaid fees owed to such Lender and any other amounts payable to such Lender under this Agreement and any other Loan Document, and to assume all the obligations of such Lender hereunder, and, upon such purchase and assumption (pursuant to an Assignment Agreement), such Lender shall no longer be a party hereto or have any rights hereunder (other than rights with respect to indemnities and similar rights applicable to such Lender prior to the date of such purchase and assumption) and shall be relieved from all obligations to Borrower hereunder, and the Replacement Lender shall succeed to the rights and obligations of such Lender hereunder.

8.8.      Conclusiveness of Statements; Survival of Provisions. Determinations and statements of any Lender pursuant to Sections 8.1, 8.2, 8.3 or 8.4 shall be conclusive absent demonstrable error. Lenders may use reasonable averaging and attribution methods in determining compensation under Sections 8.1 and 8.4, and the provisions of such Sections shall

 

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survive repayment of the Obligations, cancellation of any Note(s), expiration or termination or Cash Collateralization of the Letters of Credit and termination of this Agreement.

SECTION 9

REPRESENTATIONS AND WARRANTIES.

To induce Administrative Agent and the Lenders to enter into this Agreement and to induce the Lenders to make Loans and participate in Letters of Credit hereunder and the Issuing Lenders to issue Letters of Credit hereunder, Borrower represents and warrants to Administrative Agent and the Lenders that on the Closing Date and on each date required by Section 12.2.1(a) of the Credit Agreement and on any other date required in any Loan Document:

9.1.      Organization. Each Loan Party and its Subsidiaries is validly existing and in good standing under the laws of its jurisdiction of organization; and each Loan Party and its Subsidiaries is duly qualified to do business in each jurisdiction where, because of the nature of its activities or properties, such qualification is required, except for such jurisdictions where the failure to so qualify would not have a Material Adverse Effect.

9.2.      Authorization; No Conflict. Each Loan Party is duly authorized to execute and deliver each Loan Document to which it is a party, Borrower is duly authorized to borrow monies hereunder and each Loan Party is duly authorized to perform its Obligations under each Loan Document to which it is a party. The execution, delivery and performance by each Loan Party of each Loan Document to which it is a party, and the borrowings by Borrower hereunder, do not and will not (a) require any consent or approval of any governmental agency or authority (other than any consent or approval which has been obtained and is in full force and effect), (b) conflict with (i) any provision of law, (ii) the charter, by-laws or other organizational documents of any Loan Party or (iii) any agreement, indenture, instrument or other document, or any judgment, order or decree, which is binding upon any Loan Party or any of their respective properties, except, in the case of clauses (i) and (iii), to the extent such violations would not reasonably be expected to result in a Material Adverse Effect or (c) require, or result in, the creation or imposition of any Lien on any asset of any Loan Party (other than Liens in favor of Administrative Agent created pursuant to the Collateral Documents or permitted by Section 11.2).

9.3.      Validity and Binding Nature. Each of this Agreement and each other Loan Document to which any Loan Party is a party is the legal, valid and binding obligation of such Person, enforceable against such Person in accordance with its terms, subject to bankruptcy, insolvency and similar laws affecting the enforceability of creditors’ rights generally and to general principles of equity.

9.4.      Financial Condition. The audited consolidated financial statements of each of (i) Club Pilates Franchise, LLC and its Subsidiaries, Cycle Bar Holdco LLC and its Subsidiaries, St. Gregory Holdco, LLC and its Subsidiaries, AKTF and its Subsidiaries, SLF and its Subsidiaries and RHF and its Subsidiaries for the Fiscal Year ended December 31, 2017, (ii) the unaudited consolidated financial statements of such Persons for the four month period ended April 30, 2018, and (iii) the audited consolidated financial statements for Pure Barre and its Subsidiaries

 

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for the Fiscal Year ended December 31, 2017 and the unaudited consolidated financial statements for such Persons for the eight month-period ended September 30, 2018, copies of each of which have been delivered to each Lender, were prepared in accordance with GAAP (subject, in the case of such unaudited statements, to GAAP to cash adjustment, to the absence of footnotes and to normal year-end adjustments and with franchise fee revenue recognition as permitted by Section 1.3(a) hereof) and present fairly in all material respects the financial condition of Borrower and its Subsidiaries as at such dates and the results of their operations for the periods then ended.

9.5.      No Material Adverse Change. Since December 31, 2017, there has been no material adverse change in the financial condition, operations, assets or business of the Loan Parties taken as a whole.

9.6.      Litigation and Contingent Liabilities. No litigation (including derivative actions), arbitration proceeding or governmental investigation or proceeding is pending or, to any Loan Party’s knowledge, threatened against any of the Loan Parties and its Subsidiaries which could reasonably be expected to have a Material Adverse Effect, except as set forth in Schedule 9.6. As of the Closing Date, other than any liability incident to such litigation or proceedings, none of the Loan Parties and their Subsidiaries has any material contingent liabilities which would reasonably be expected to have a Material Adverse Effect not listed on Schedule 9.6 or permitted by Section 11.1.

9.7.      Ownership of Properties; Liens. As of the Closing Date, except as would not reasonably be expected to result in a Material Adverse Effect, each of the Loan Parties and its Subsidiaries owns good and, in the case of real property, marketable title to, and in the case of leased real property, a valid leasehold interest in, all of its properties and assets, real and personal, tangible and intangible, of any nature whatsoever (including any registered or issued patents, trademarks, trade names, service marks and copyrights), free and clear of all Liens, charges, and claims (including infringement claims with respect to any registered or issued patents, trademarks, service marks, and copyrights owned by that Loan Party and/or that Subsidiary), except as permitted by Section 11.2. No effective financing statement or other public notice effective to create or perfect a security interest with respect to all or any part of the Collateral is on file or of record in any public office, except filings (i) evidencing Permitted Liens and filings for which termination statements have been delivered to Administrative Agent, and (ii) with respect to terminated security interests in intellectual property at the United States Patent and Trademark Office or United States Copyright Office, or any similar office or agency of the United States, any State thereof, or any other country or any political subdivision thereof including, without limitation, the Canadian Intellectual Property Office.

9.8.      Equity Ownership; Subsidiaries. All issued and outstanding Capital Securities of each Loan Party and its Subsidiaries (other than Holdings) are duly authorized and validly issued, fully paid and to the extent such Loan Party is a corporation, non-assessable and free and clear of all Liens other than those in favor of Administrative Agent, and such securities were issued in compliance in all material respects with all applicable state, provincial and federal laws, as the case may be, concerning the issuance of securities. Schedule 9.8 sets forth the authorized Capital Securities of each of the Loan Parties and its Subsidiaries as of the Closing Date. All of the issued and outstanding Capital Securities of each of the Loan Parties and its Subsidiaries are

 

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owned as set forth on Schedule 9.8 as of the Closing Date, and all of the issued and outstanding Capital Securities of each Wholly-Owned Subsidiary are, directly or indirectly, owned by Borrower. As of the Closing Date, except as set forth on Schedule 9.8, there are no pre-emptive or other outstanding rights, options, warrants, conversion rights or other similar agreements or understandings for the purchase or acquisition of any Capital Securities of any of the Loan Parties and its Subsidiaries.

9.9.      Pension Plans.

(a)        Except as would not reasonably be expected to have a Material Adverse Effect: (i) the Unfunded Liability of all Pension Plans does not in the aggregate exceed twenty percent of the Total Plan Liability for all such Pension Plans; (ii) except as would not reasonably be expected to have a Material Adverse Effect, each Pension Plan complies in all material respects with all applicable requirements of law and regulations; (iii) no contribution failure under Section 430 of the Code, Section 303 of ERISA or the terms of any Pension Plan has occurred with respect to any Pension Plan, that will give rise to a Lien under Section 303(k) of ERISA; (iv) there are no pending or, to the knowledge of any Loan Party, threatened, claims, actions, investigations or lawsuits against any Pension Plan, any fiduciary of any Pension Plan, or Borrower or other member of the Controlled Group with respect to a Pension Plan or a Multiemployer Pension Plan which could reasonably be expected to result in material liability to Borrower or any other Loan Party; (v) neither Borrower nor any other member of the Controlled Group has engaged in any prohibited transaction (as defined in Section 4975 of the Code or Section 406 of ERISA) in connection with any Pension Plan or Multiemployer Pension Plan; (vi) within the past five years, neither Borrower nor any other member of the Controlled Group has engaged in a transaction that resulted in a Pension Plan with an Unfunded Liability being transferred out of the Controlled Group; and (vii) no Termination Event has occurred or is reasonably expected to occur with respect to any Pension Plan.

(b)        Except as would not reasonably be expected to have a Material Adverse Effect: (a) all contributions (if any) have been made to any Multiemployer Pension Plan that are required to be made by Borrower or any other member of the Controlled Group under the terms of the plan or of any collective bargaining agreement or by applicable law; (b) neither Borrower nor any other member of the Controlled Group has withdrawn or partially withdrawn from any Multiemployer Pension Plan, incurred any withdrawal liability with respect to any such plan that remains outstanding or received notice of any claim or demand for withdrawal liability or partial withdrawal liability from any such plan that remains outstanding, and no condition has occurred which, if continued, could reasonably be expected to result in a withdrawal or partial withdrawal from any such plan; and (c) neither Borrower nor any other member of the Controlled Group has received any notice that any Multiemployer Pension Plan is in reorganization, that increased contributions are reasonably expected to be required to avoid a reduction in plan benefits or the imposition of any excise tax, that any such plan is or has been funded at a rate less than that required under Section 412 of the Code, that any such plan is or is reasonably expected to be terminated, or that any such plan is insolvent.

(c)        No Loan Party maintains or contributes to any Canadian Defined Benefit Plan.

 

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9.10.      Investment Company Act. No Loan Party is required to be registered as an “investment company” or a company “controlled” by an “investment company” or a “subsidiary” of an “investment company,” within the meaning of the Investment Company Act of 1940.

9.11.      Compliance with Laws. Each Loan Party and each Subsidiary thereof is in compliance with the requirements of all laws and all orders, writs, injunctions and decrees applicable to it or to its properties, except in such instances in which (a) such requirement of law or order, writ, injunction or decree is being contested in good faith by appropriate proceedings diligently conducted or (b) the failure to comply therewith, either individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect.

9.12.      Regulation U. Borrower is not engaged principally, or as one of its important activities, in the business of extending credit for the purpose of purchasing or carrying Margin Stock.

9.13.      Taxes. Each Loan Party and its Subsidiaries has filed all federal, state and local income tax returns and reports and all other material tax returns and reports required by law to have been filed by it (after giving effect to filing extensions) and has paid all federal, state and local income and other material taxes and governmental charges due and payable with respect to such return, except any such taxes or charges which are being diligently contested in good faith by appropriate proceedings and for which adequate reserves in accordance with past custom and practice shall have been set aside on its books. The Loan Parties and their Subsidiaries have made adequate reserves on their books and records in accordance with their past custom and practice for all unpaid Federal and other material taxes of the Loan Parties and their Subsidiaries for operations and transactions that have accrued but which are not yet due and payable. Except as set forth on Schedule 9.13, no Loan Party has participated in any transaction that relates to a year of the taxpayer (which is still open under the applicable statute of limitations) which is a “reportable transaction” within the meaning of Treasury Regulation Section 1.6011-4(b)(2) (irrespective of the date when the transaction was entered into).

9.14.      Solvency, etc. As of the Closing Date and immediately after giving effect to the issuance of each Letter of Credit and making of each Loan hereunder and the after giving effect to the application of the proceeds of each Loan, with respect to the Loan Parties (taken as a whole), (a) the fair value of their assets on a going concern basis is greater than the amount of its liabilities (including disputed, contingent and unliquidated liabilities) as such value is established and liabilities evaluated in accordance with GAAP, (b) the present fair saleable value of their assets on a going concern basis is not less than the amount that will be required to pay the probable liability on its debts as they become absolute and matured, (c) they are able to realize upon its assets and pay its debts and other liabilities (including disputed, contingent and unliquidated liabilities) as they mature in the normal course of business, and (d) they do not have unreasonably small capital to conduct the business in which they are now engaged as such business is now conducted and proposed to be conducted following the Closing Date. In computing the amount of contingent or unliquidated liabilities at any time, such liabilities shall be computed at the amount that, in light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.

 

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9.15.      Environmental Matters. The on-going operations of each of the Loan Parties and its Subsidiaries comply in all respects with all Environmental Laws, except for such non-compliance which would not (if enforced in accordance with applicable law) reasonably be expected to result, either individually or in the aggregate, in a Material Adverse Effect. Each of the Loan Parties and its Subsidiaries has obtained, and maintained in good standing, all licenses, permits, authorizations, registrations and other approvals required under any Environmental Law and required for their respective ordinary course operations, and for their reasonably anticipated future operations, and each of the Loan Parties and its Subsidiaries is in compliance with all terms and conditions thereof, except where the failure to obtain, maintain or comply would not reasonably be expected to result, either individually or in the aggregate, in a Material Adverse Effect. None of the Loan Parties or their Subsidiaries and none of their properties or operations is subject to, or reasonably anticipates the issuance of, any written order from or agreement with any federal, state, provincial or local governmental authority, nor subject to any judicial or docketed administrative or other proceeding, respecting any Environmental Law, Environmental Claim or Hazardous Substance, except as would not reasonably be expected to result, either individually or in the aggregate, in a Material Adverse Effect. There are no conditions of contamination by Hazardous Substances or other environmental conditions or circumstances existing with respect to any property, arising from operations prior to the Closing Date, or relating to any waste disposal, of any Loan Party or any Subsidiary thereof that would reasonably be expected to result, either individually or in the aggregate, in a Material Adverse Effect. No Loan Party nor any Subsidiary has any underground storage tanks that are not properly registered or permitted under applicable Environmental Laws or that at any time have released, leaked, disposed of or otherwise discharged Hazardous Substances that would reasonably be expected to result, either individually or in the aggregate, in a Material Adverse Effect.

9.16.      Insurance. Each Loan Party and its Subsidiaries and their respective properties are insured with what are reasonably believed by the Borrower to be financially sound and reputable insurance companies which are not Affiliates of the Loan Parties, in such amounts, with such deductibles and covering such risks as are customarily carried by companies of similar size, engaged in similar businesses and owning similar properties in localities where such Loan Parties and Subsidiaries operate.Real Property. Set forth on Schedule 9.17 is a complete and accurate list, as of the Closing Date, of the address of all material real property owned or leased by any of the Loan Parties and their Subsidiaries, together with, in the case of leased property, the name and mailing address of the lessor of such property. Each of the Loan Parties and their respective Subsidiaries enjoys peaceful and undisturbed possession under all real property leases, space sharing agreements or similar arrangements to which such Loan Party or Subsidiary is a party or under which such Loan Party or Subsidiary is operating its businesses, except to the extent the failure to do so would not reasonably be expected to result in a Material Adverse Effect. Each of the Loan Party’s and their respective Subsidiaries’ real property leases, space sharing agreements or similar arrangements are valid and subsisting and no Loan Party or Subsidiary has knowledge of a default by such Loan Party or Subsidiary under any such lease, agreement or arrangement, except to the extent the failure to do so or such default would not reasonably be expected to result in a Material Adverse Effect.Information. All factual information concerning the Loan Parties and their Subsidiaries (other than projections, budgets, estimates, other forward looking information and any general industry or market data) heretofore or contemporaneously herewith furnished in writing by any Loan Party to Administrative Agent or any Lender for purposes of or in connection with this Agreement and the transactions

 

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contemplated hereby is, and all written information hereafter furnished by or on behalf of any Loan Party to Administrative Agent or any Lender pursuant hereto or in connection herewith will be, when taken as a whole, true and accurate in every material respect on the date as of which such information is dated or certified, and none of such information, taken as a whole, is or will be incomplete by omitting to state any material fact necessary to make such information not materially misleading when taken as a whole and in light of the circumstances under which made and as of the time at which made (it being recognized by Administrative Agent and the Lenders that any projections and forecasts provided by Borrower are based on good faith estimates and assumptions believed by Borrower to be reasonable as of the date of the applicable projections or assumptions and that actual results during the period or periods covered by any such projections and forecasts may differ materially from projected or forecasted results).

9.19.      Intellectual Property. Except as set forth on Schedule 9.19, as of the Closing Date, each of the Loan Parties and its Subsidiaries owns and possesses or has a license or other right to use or exploit all rights in patents trademarks, trade names, service marks, copyrights, and all other intellectual property rights as are necessary for the conduct of the business of such Loan Party or Subsidiary as currently conducted by such Loan Party or Subsidiary, without any infringement upon rights of others which could reasonably be expected to have a Material Adverse Effect.

9.20.      Burdensome Obligations. None of the Loan Parties or their Subsidiaries is a party to any agreement or contract or subject to any restriction contained in its organizational documents which could reasonably be expected to have a Material Adverse Effect.

9.21.      Labor Matters. Except as set forth on Schedule 9.21, no Loan Party is subject to any labor or collective bargaining agreement. There are no existing or threatened strikes, lockouts or other labor disputes involving any Loan Party that singly or in the aggregate could reasonably be expected to have a Material Adverse Effect. Hours worked by and payment made to employees of the Loan Parties are not in violation of the Fair Labor Standards Act or any other applicable law, rule or regulation dealing with such matters, except as could not reasonably be expected to have a Material Adverse Effect.

9.22.      Anti-Terrorism Laws.

(a)        No Loan Party (and, to the knowledge of each Loan Party, no joint venture or subsidiary thereof) is in violation in any material respects of any applicable United States or Canada requirements of law relating to counter-terrorism, economic sanctions or anti-money laundering (the “Anti-Terrorism Laws”), including the United States Executive Order No. 13224 on Terrorist Financing (the “Anti-Terrorism Order”), the Patriot Act and Canadian AML Laws.

(b)        No Loan Party (and, to the knowledge of each Loan Party, no joint venture or subsidiary thereof) (i) is listed in the annex to, or is otherwise subject to the provisions of, the Anti-Terrorism Order, (ii) is owned or controlled by, or acting for or on behalf of, any person listed in the annex to, or is otherwise targeted under the provisions of, the Anti-Terrorism Order, (iii) commits, threatens or conspires to commit or supports “terrorism” as defined in the Anti-Terrorism Order or (iv) is named as a “specially designated national and blocked person” in the

 

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most current list (the “SDN List”) published by the U.S. Treasury Department’s Office of Foreign Asset Control (“OFAC”).

(c)        No Loan Party (and, to the knowledge of each Loan Party, no joint venture or Affiliate thereof) (i) conducts any business or engages in making or receiving any contribution of funds, goods or services to or for the benefit of any person described in clauses (b)(i), (b)(ii) and (b)(iv) above, (ii) deals in, or otherwise engages in any transactions relating to, any property or interests in property blocked pursuant to the Anti-Terrorism Order or any Canadian AML Laws or (iii) engages in or conspires to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in any Anti-Terrorism Law.

9.23.      No Default. No Default or Event of Default exists or would result from the incurrence by any Loan Party of any Debt hereunder or under any other Loan Document.

9.24.      Economic Sanctions and AML. Borrower and each Subsidiary of Borrower is and will remain in compliance in all material respects with all applicable U.S. and Canada economic sanctions and related international trade laws, Executive Orders and implementing regulations including as promulgated by OFAC, and all applicable anti-money laundering and counter-terrorism financing provisions of the Bank Secrecy Act (“BSA”) and all regulations issued pursuant to it. Neither Borrower nor any Subsidiary of Borrower (i) is a Person designated on the SDN List with which a U.S. Person cannot deal with or otherwise engage in business transactions, (ii) is a Person who is otherwise the target of U.S. economic sanctions laws such that a U.S. Person cannot deal or otherwise engage in business transactions with such Person or (iii) is controlled by (including without limitation by virtue of such person being a director or owning voting shares or interests), or acts, directly or indirectly, for or on behalf of, any person or entity on the SDN List or a foreign government that is the target of U.S. economic sanctions prohibitions such that the entry into, or performance under, this Agreement or any other Loan Document would be prohibited under U.S. law. If Borrower is required to file annual or quarterly reports under Section 13(a) of the Securities and Exchange Act of 1934 the foregoing sentence shall apply to Affiliates of Borrower as well.

9.25.      Patriot Act and Anti-Bribery. Borrower and each Subsidiary of Borrower are in compliance to the extent applicable with (a) the Trading with the Enemy Act, and each of the OFAC regulations (31 CFR, Subtitle B Chapter V, as amended) and any other enabling legislation or executive order relating thereto, (b) the Patriot Act and (c) other federal or state laws relating to “know your customer” and anti-money laundering rules and regulations including Canadian AML Laws. No part of the proceeds of any Loan will be used directly or indirectly for any payments to any government official or employee, political party, official of a political party, candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977 or any Canadian AML Laws.

9.26.      Related Agreements, etc.

(a)        Borrower has heretofore furnished Administrative Agent a true and correct copy of the Related Agreements.

 

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(b)        Each Loan Party has duly taken all necessary corporate, partnership or other organizational action to authorize the execution, delivery and performance of the Related Agreements and the consummation of transactions contemplated thereby.

(c)        The Related Transactions will comply with all applicable legal requirements, and all necessary governmental, regulatory, creditor, shareholder, partner, and other material consents, approvals, and exemptions required to be obtained by the Loan Parties and, to each Loan Party’s knowledge, each other party to the Related Agreements in connection with the Related Transactions will be, prior to consummation of the Related Transactions, duly obtained and will be in full force and effect. As of the date of the Related Agreements, all applicable waiting periods with respect to the Related Transactions will have expired without any action being taken by any competent governmental authority which restrains, prevents or imposes material adverse conditions upon the consummation of the Related Transactions.

(d)        The execution and delivery of the Related Agreements did not, and the consummation of the Related Transactions will not, violate any statute or regulation of the United States (including any securities law) or of any state or other applicable jurisdiction, or any order, judgment, or decree of any court or governmental body binding on any Loan Party or, to any Loan Party’s knowledge, any other party to the Related Agreements, or result in a breach of, or constitute a default under, any material agreement, indenture, instrument, or other document, or any judgment, order, or decree, to which any Loan Party is a party or by which any Loan Party is bound or, to any Loan Party’s knowledge, to which any other party to the Related Agreements is a party or by which any such party is bound.

(e)        As of the Closing Date, no statement or representation made in the Related Agreements by any Loan Party or, to any Loan Party’s knowledge, any other Person, contains any untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary in order to make the statements made therein, in light of the circumstances under which they are made, not misleading in any material respect.

9.27.      Franchise Matters. Since September 1, 2016, LBF is the only Person that has operated an “@ the LB” Franchise System or offered or sold “@ the LB” Franchises, and S415 is the only Person that has operated a “Shred415” Franchise System or offered “Shred415” Franchises. The “@ the LB” Franchise System is the only Franchise System that LBF has operated, and “Shred415” is the only Franchise System that S415 has operated. Except as set forth on Schedule 9.27(a), neither the Company nor any Subsidiary of the Company has offered or sold or otherwise granted rights to any Person conferring upon that Person area development, area representative, master franchise, sub-franchise or other multi-unit or multilevel rights with respect to the “Shred415” and “@ the LB” brands.

(b)        Since April 1, 2014, CBF and its Subsidiaries are the only Persons that have operated the “CycleBar” Franchise System or offered or sold “CycleBar” Franchises. The “CycleBar” Franchise System is the only franchise network or system that CBF and its Subsidiaries have operated. Except as set forth on Schedule 9.27(b), neither CBF nor any Subsidiary of any of the Companies has offered or sold or otherwise granted rights to any Person conferring upon that Person area development, area representative, master franchise, sub-franchise or other multi-unit or multilevel rights with respect to the “CycleBar” brand.

 

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(c)        Since March 2, 2015, CPF is the only Person that has operated a “Club Pilates” franchise system or offered or sold “Club Pilates” franchises. The “Club Pilates” Franchise System is the only franchise system that CPF has operated. Except as set forth on Schedule 9.27(c), neither CPF nor any other Subsidiary of any of the Companies has offered or sold or otherwise granted rights to any Person conferring upon that Person area development, area representative, master franchise, sub-franchise or other multi-unit or multilevel rights with respect to the “Club Pilates” brand. Only CPF has entered into the Franchise Agreements. Except as set forth on Schedule 9.27(c), all Franchise Agreements entered into by CP Global, LLC were validly assigned to CPF on March 12, 2015 and all such Franchise Agreements remain binding on the parties and their assignee(s).

(d)        (i) The Franchisors are the only Subsidiaries of any of the Companies that have offered Franchises or entered into Franchise Agreements. Except as set forth on Schedule 9.27(d), all Franchise Agreements entered into by the Franchisors remain binding on the parties and their assignee(s). (ii) AKTF is the only Person that has operated an “AKT in Motion” franchise system or offered or sold “AKT in Motion” franchises. The “AKT in Motion” Franchise System is the only franchise system that AKTF has operated. RHF is the only Person that has operated a “Row House” franchise system or offered or sold “Row House” franchises. The “Row House” Franchise System is the only franchise system that RHF has operated. SLF is the only Person that has operated a “Stretch Lab” franchise system or offered or sold “Stretch Lab” franchises. The “Stretch Lab” Franchise System is the only franchise system that SLF has operated. The “Pure Barre” Franchise System is the only franchise system that Pure Barre has operated.

(e)        Schedule 9.27(e) contains, as of the date set forth in such Schedule, a complete and accurate list of all currently effective Franchise Agreements (excluding Area Representative Agreements, Development Agreements and Master Franchise Agreements, which are disclosed in Schedule 9.27(p)) between any of the Franchisors and any Franchisee, including the following information for each such Franchise Agreement, which information reflects the provisions of each such Franchise Agreement currently in effect after taking into account all waivers, alterations, amendments or other modifications thereof (including those responsive to clause (ix) below): (i) the Franchise System licensed, (ii) the business address of each franchised location operated by such Franchisee, (iii) the name, address and telephone number of the Franchisee, (iv) the royalty rate required to be paid by the Franchisee, (v) the required Marketing Fund Contribution Rate, (vi) the required minimum monthly royalty, (vii) the stated effective date or the effective date reflected by the Franchisor’s date of signature, (viii) the renewal date if such date is not 10 years after the effective date, and (ix) whether or not there have been any material waivers, alterations, amendments or other material modifications of any Franchise Agreement (including changes related to any fees, costs, expenses, defaults, covenants, term, termination, renewal or transfer rights, or other material obligations of a Franchisee) since the execution of such Franchise Agreement that a Franchisor has agreed to, entered into or acquiesced to.

(f)        Except as set forth on Schedule 9.27(f), to the Companies’ Knowledge, no Franchisee is in, or has received written notice of, any material violation or material default of (including any condition that with the passage of time or the giving of notice, or both, would cause such a material violation or material default under) any Franchise Agreement. None of the

 

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Franchisors are in, nor have any of them received written notice of any, violation of or default under (including any condition that with the passage of time or the giving of notice, or both, would cause such a violation or default under) any Franchise Agreement or that would permit termination or rescission of any such Franchise Agreement. None of the Franchisors have received any written demand by any Franchisee for rescission of any Franchise Agreement. To the Companies’ Knowledge, (i) there is no basis for any claim by any Franchisee for rescission of any Franchise Agreement, and (ii) no Franchisee is entitled to any set-off or reduction in any payment required under any Franchise Agreement. Each Franchise Agreement is a valid and binding agreement between the applicable Franchisor and such Franchisee, and is in full force and effect, subject to bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other Laws of general applicability relating to or affecting creditors’ rights and to general equity principles.

(g)        Schedule 9.27(g) sets forth a list of all forms of FDDs that the Franchisors have used to offer or sell Franchises. The Companies have made available to the Administrative Agent accurate and complete copies of each such form of FDD.

(h)        Except as set forth on Schedule 9.27(h) and except for such noncompliance as would not either individually or in the aggregate reasonably be expected to be material, the Franchisors are and since their formation have been, in compliance with all applicable Franchise Laws in connection with the offer and sale of Franchises, the ongoing relationships with current and former Franchisees, the termination, non-renewal and transfers of Franchises, and the operation and administration of their Franchise Systems.

(i)    To the Companies’ Knowledge, no current or former Franchisee, or any governmental authority, has delivered written notice to any of the Franchisors alleging that any of the Franchisors failed to comply with any applicable Laws during the offer and sale of a Franchise or the operation of either of their Franchise Systems.

(j)        Schedule 9.27(j) contains a summary of all (i) Franchise-related or Franchisee-related proceedings, orders, material complaints or material disputes raised since formation, (ii) proceedings or orders required to be disclosed in FDDs under applicable Franchise Laws, or (iii) other proceedings or complaints that are pending or, to the Companies’ Knowledge, have been threatened against any of the Companies or any other Subsidiary of any of the Companies (including any of the Franchisors) since formation, (A) from any existing or former Franchisee, or (B) any association purporting to represent a group of Franchisees, except where such proceeding, either individually or in the aggregate, would not be expected to be material. There are no stop orders or other proceedings in effect or, to the Companies’ Knowledge, threatened that would inhibit any of the Franchisors’ ability to offer or sell Franchises or enter into Franchise Agreements immediately following the Closing Date, except for (x) any pending renewal filings and (y) any amendment filings and changes to their respective FDDs that might be required to describe the Related Transaction.

(k)        To the Companies’ Knowledge, since formation, all collections and contributions to the Marketing Funds have been undertaken in accordance with the terms and conditions of each Franchise Agreement, and the use and administration of the Marketing Fund contributions have at all times materially complied with all Franchise Agreements, FDDs and

 

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Franchise Laws. The use of the Marketing Funds has not and does not violate any Franchise Law. There are no loans owed to, or owing from, the advertising program. To the Companies’ Knowledge, there are no, and none of the Companies (including the Franchisors) have received written notice of, allegations that any of the expenditures from the advertising program have been improperly collected, accounted for, maintained, used or applied.

(l)        Except as set forth on Schedule 9.27(l), none of the Companies or its Subsidiaries (including the Franchisors) have engaged or hired an agent, broker, third party, Franchisee or licensee to provide material services, assistance or support to any Franchisee or to identify, offer or sell to potential Franchisees.

(m)        To the Companies’ Knowledge, no franchise association or other organization is acting as a representative of any group of two or more Franchisees. Any franchise council or advisory group presently in place (whether independently formed or sponsored by a Franchisor) is purely advisory in nature. Except as set forth on Schedule 9.27(m), none of the Franchisors have granted any enforceable right of first refusal, option or other right or arrangement to sign any Franchise Agreement or acquire any Franchise Agreement.

(n)        Except as set forth on Schedule 9.27(n), none of the Companies or any other Subsidiary of any of the Companies (including any of the Franchisors) has received, or been a party to any agreement, contract, obligation or commitment, whether oral or written, under which any of such entities has the right to receive, material rebates, other material payments or material consideration from suppliers or other third parties, including the ability to purchase products, goods and services at lower prices than those charged to Franchisees, on account of direct or indirect Franchisees’ purchases from those suppliers or third parties. None of the Companies or any other Subsidiary of any of the Companies (including any of the Franchisors) has made any offer, promise, agreement, contract, obligation or commitment, whether oral or written, with respect to any future or contingent rebates or other payments from suppliers or other third parties to or for the benefit of a Franchisee or another Person. There are no agreements, contracts, obligations, commitment or special arrangements, whether oral or written, with any Franchisee that are prohibited by the applicable Franchise Agreement or that have not been properly disclosed in accordance with applicable Franchise Laws.

(o)        Neither the execution of this Agreement nor the consummation of the Related Transaction requires the consent of any party to a Franchise Agreement or will result in a violation of or a default under, or give rise to a right of termination, modification, cancellation, rescission or acceleration of any material obligation or loss of material benefits under, any Franchise Agreement.

(p)        Schedule 9.27(p) contains, as of the date set forth in such schedule, a complete and accurate list of all currently effective Area Representative Agreements, Development Agreements and Master Franchise Agreements between any of the Franchisors and any Franchisee, including the following information for each such Area Representative Agreements, Development Agreements and Master Franchise Agreements which information reflects the provisions of each such Area Representative Agreements, Development Agreements and Master Franchise Agreements currently in effect after taking into account all waivers, alterations, amendments or other modifications thereof: (i) the name, address and telephone

 

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number of the Franchisee, (ii) the geographical area covered by such Area Representative Agreements, Development Agreements and Master Franchise Agreements, (iii) the number of Franchises currently open and operated by such Franchisee pursuant to the Area Representative Agreements, Development Agreements and Master Franchise Agreements including the business address of each; (iv) the development schedule showing the number of Franchises and the number and scheduled date of openings for each additional Franchise to be opened by such Franchisee; (v) the status as to whether the Franchisee is in compliance with the development schedule and the support services that are required under the Area Representative Agreements, Development Agreements and Master Franchise Agreements; (vi) the amount of the initial area representative fee, development fee or master franchise fee paid and number of Franchises remaining to be opened with the associated initial franchise fee required to be paid for those scheduled to be opened; (vii) the stated effective date of the Area Representative Agreements, Development Agreements and Master Franchise Agreements, term of the development schedule and stated expiration date of the Area Representative Agreements, Development Agreements and Master Franchise Agreements; (viii) whether or not there have been any material waivers, alterations, amendments or other material modifications of any Area Representative Agreements, Development Agreements and Master Franchise Agreements (including changes related to any fees, costs, expenses, defaults, covenants, term, development schedule, territory or development area, termination, renewal or transfer rights, or other material obligations of an area representative or Franchisee) since the execution of such Area Representative Agreements, Development Agreements and Master Franchise Agreements that the Franchisor has agreed to, entered into or acquiesced to; and (iv) the number of third-party Franchises supported by each Franchisee in its territory pursuant to the Area Representative Agreement.

(q)        Each franchisee of the Franchisors is in compliance with the requirements of their Franchise Agreements to maintain coverage under such insurance policies, except to the extent such non-compliance could not reasonable be expected to result in material liability to the applicable Franchisor.

(r)        Each Franchisor has appropriate data privacy and cyber liability policies and procedures in place that are customary for companies engaged in similar businesses as the Loan Parties.

(s)        Each Franchisor has obtained an acknowledgment of receipt of the FDD from each of its renewing franchisees and new franchisees.

(t)        Each Franchisor will review its FDD, Franchise Agreement, Operations Manuals, and standards and procedures no less frequently than on an annual basis and make any reasonably necessary revisions to minimize risks that its franchise relationship with its franchisees or franchisee personnel will be characterized as a joint employer relationship or expose the franchisor to claims of vicarious liability, and otherwise conform their FDD, Franchise Agreement, Operations Manuals, and standards and procedures with then-current customary practices for franchisors providing similar goods and services.

9.28.      Holdings and Intermediate Holdings. Except as otherwise permitted under Section 10.12, (a) Holdings has not engaged in any activities other than acquiring all of the Capital Securities of Intermediate Holdings, acting as a holding company and transactions

 

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incidental thereto, entering into and performing its obligations under the Loan Documents and the other Related Agreements and agreements permitted hereunder and does not hold any assets other than all of the issued and outstanding Capital Securities of Intermediate Holdings, and contractual rights and obligations pursuant to the Loan Documents, the Related Agreements, the Holdings LLC Agreement and any other agreement governing equity related matters and other documents incidental thereto and (b) Intermediate Holdings has not engaged in any activities other than acquiring all of the Capital Securities of Borrower, acting as a holding company and transactions incidental thereto, entering into and performing its obligations under the Loan Documents and the other Related Agreements and agreements permitted hereunder and does not hold any assets other than all of the issued and outstanding Capital Securities of Borrower, and contractual rights and obligations pursuant to the Loan Documents, the Related Agreements, the Purchase Agreement, the Intermediate Holdings LLC Agreement and any other agreement governing equity related matters and other documents incidental thereto. Location of Bank Accounts. Schedule 9.29 sets forth a complete and accurate list as of the Closing Date of all deposit, checking, and other bank accounts, all securities and other accounts maintained with any broker dealer or other securities intermediary, and all other similar accounts maintained by each Loan Party, together with a description thereof (including the bank, broker dealer, or securities intermediary at which each such account is maintained and the account number and the purpose thereof).

9.30.      Material Contracts. Set forth on Schedule 9.30 is a complete and accurate list as of the Closing Date of all Material Contracts of each of the Loan Parties and their Subsidiaries, showing the parties and subject matter thereof and amendments and modifications thereto. Each such Material Contract (a) is in full force and effect and is binding upon and enforceable against each of the Loan Parties and their Subsidiaries that is a party thereto and, to each Loan Party’s knowledge, all other parties thereto in accordance with its terms; (b) has not been otherwise amended or modified; and (c) is not in default due to the action of any of the Loan Parties and their Subsidiaries or, to the knowledge of any Loan Party, any other party thereto.

9.31.      Employee and Labor Matters. There is (a) no unfair labor practice complaint pending or, to the knowledge of any Loan Party, threatened against any Loan Party or any Subsidiary thereof before any governmental authority and no grievance or arbitration proceeding pending or threatened against any of the Loan Parties and their Subsidiaries that arises out of or under any collective bargaining agreement; (b) no strike, labor dispute, slowdown, stoppage or similar action or grievance pending or threatened against any of the Loan Parties and their Subsidiaries; or (c) to the knowledge of each Loan Party, no union representation question existing with respect to the employees of any of the Loan Parties and their Subsidiaries and no union organizing activity taking place with respect to any of the employees of any of the Loan Parties and their Subsidiaries. None of the Loan Parties and their ERISA Affiliates has incurred any liability or obligation under the Worker Adjustment and Retraining Notification Act (“WARN”) or similar state law that remains unpaid or unsatisfied. The hours worked and payments made to employees of each of the Loan Parties and their Subsidiaries have not been in violation of the Fair Labor Standards Act or any other applicable legal requirements, except to the extent any such violations could not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect. All material payments due from any of the Loan Parties and their Subsidiaries on account of wages and employee health and welfare insurance and other benefits have been paid or accrued as a liability on the books of that Loan Party or that

 

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Subsidiary, except where the failure to do so could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

9.32.      No Bankruptcy Filing. None of the Loan Parties and their Subsidiaries is contemplating either an Insolvency Proceeding or the liquidation of all or a major portion of that Loan Party’s or that Subsidiary’s assets or property, and no Loan Party has any knowledge of any Person contemplating an Insolvency Proceeding against any of the Loan Parties and their Subsidiaries.

9.33.      Name; Jurisdiction of Organization; Organizational ID Number; Chief Place of Business; Chief Executive Office; FEIN. Schedule 9.33 sets forth a complete and accurate list as of the Closing Date of (a) the exact legal name of each of the Loan Parties and their Subsidiaries; (b) the jurisdiction of organization of each of the Loan Parties and their Subsidiaries; (c) the organizational identification number of each Loan Party (or indicates that that Loan Party has no organizational identification number); (d) each place of business of each of the Loan Parties and their Subsidiaries; (e) the chief executive office of each of the Loan Parties and their Subsidiaries; and (f) the federal employer identification number of each Loan Party.

9.34.      Hedging Agreements. None of the Loan Parties and their Subsidiaries is a party to, nor will it be a party to, any Hedging Agreement other than a bona fide (not speculative) unsecured Hedging Agreement, in form and substance reasonably acceptable to Administrative Agent.

SECTION 10

AFFIRMATIVE COVENANTS.

Until the expiration or termination of the Commitments and thereafter until all Obligations hereunder and under the other Loan Documents are Paid in Full, Borrower agrees that, unless at any time the Required Lenders shall otherwise expressly consent in writing, it will:

10.1.      Reports, Certificates and Other Information. Furnish to Administrative Agent:

10.1.1.      Annual Report. Within 120 days after the close of each Fiscal Year: (a) a copy of the annual audit report of Holdings and its Subsidiaries for such Fiscal Year, including therein consolidated balance sheets and statements of earnings and cash flows of Holdings and its Subsidiaries as at the end of such Fiscal Year, certified without adverse reference to going concern qualification by independent auditors of recognized standing selected by Borrower and reasonably acceptable to Administrative Agent (except to the extent such qualification is due to the scheduled maturity date of any Debt), together with a comparison with the budget for such Fiscal Year and a comparison with the previous Fiscal Year, (b) an internally prepared annual report of Holdings and its Subsidiaries for such Fiscal Year which internally prepared report shall reconcile the statements of earnings and cash flows of Holdings and its Subsidiaries as at the end of such Fiscal Year to the audit report solely to address the recognition of franchise fee income by Holdings and its Subsidiaries which recognition shall be as permitted pursuant to Section 1.3(a) hereof and (c) commencing with the Fiscal Year 2019, a balance sheet of Holdings and its Subsidiaries as of the end of that Fiscal Year and statement of earnings and cash

 

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flows for Holdings and its Subsidiaries for that Fiscal Year, certified by a Senior Officer of Holdings.

10.1.2.      Interim Reports. (a) Within 30 days after the end of each month, consolidated balance sheets of Holdings and its Subsidiaries as of the end of such month, together with consolidated statements of earnings and a consolidated statement of cash flows for such month and for the period beginning with the first day of such Fiscal Year and ending on the last day of such month, together with a comparison with the corresponding period of the previous Fiscal Year and a comparison with the budget for such period of the current Fiscal Year for the twelve month period ending on the last day of such month, certified by a Senior Officer of Borrower (which financial statements shall be in substantially the same form, and include substantially the same reporting items as the financial statements delivered to Administrative Agent prior to the Closing Date); and (b) within 30 days after the end of each Fiscal Quarter, consolidated balance sheets of Holdings and its Subsidiaries as of the end of such Fiscal Quarter, together with consolidated statements of earnings and a consolidated statement of cash flows for such Fiscal Quarter and for the period beginning with the first day of such Fiscal Year and ending on the last day of such Fiscal Quarter, together with a comparison with the corresponding period of the previous Fiscal Year and a comparison with the budget for such period of the current Fiscal Year for the twelve month period ending on the last day of such Fiscal Quarter, certified by a Senior Officer of Borrower (which financial statements shall be in substantially the same form, and include substantially the same reporting items as the financial statements delivered to Administrative Agent prior to the Closing Date); provided that for any comparison required pursuant to either clause (a) or (b) above for any period ending on or prior to September 30, 2018, such comparison does not need to include a cash flow statement. For any monthly period following December 31, 2018, Borrower shall deliver two sets of monthly or quarterly financial statements hereunder one which complies with GAAP (without giving effect to the carveout for franchise fee income in Section 1.3(a) hereof) (the “GAAP Compliant Financial Statements”) and the other set reflecting the recognition of franchise fee income as required by Section 1.3(a) hereof; provided if the Administrative Agent has in its sole discretion agreed to permit Holdings and its Subsidiaries to utilize GAAP compliant reporting for purposes of the financial covenants and other provisions hereof only GAAP Compliance Financial Statements will be required to be delivered hereunder.

10.1.3.      Compliance Certificates. Contemporaneously with the furnishing of a copy of each annual audit report pursuant to Section 10.1.1 and each set of annual and quarterly statements pursuant to Section 10.1.2 for each month ending on the last day of a Fiscal Quarter, (i) a duly completed compliance certificate in the form of Exhibit B, with appropriate insertions, dated the date of such annual report or such statements and signed by a Senior Officer of Borrower, containing a computation of each of the financial ratios set forth in Section 11.14 and to the effect that such officer has not become aware of any Default or Event of Default that has occurred and is continuing or, if there is any such event, describing it and the steps, if any, being taken to cure it and (ii) a written statement of Holdings’ management setting forth a discussion of Holdings’ and its Subsidiaries’ financial condition, changes in financial condition and results of operations.

 

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10.1.4.      Notice of Default, Litigation and ERISA Matters. Promptly upon a Senior Officer becoming aware of any of the following, written notice describing the same and the steps being taken by Borrower or the Subsidiary affected thereby with respect thereto:

(a)        the occurrence of a Default or an Event of Default;

(b)        any litigation, arbitration or governmental investigation or proceeding not previously disclosed by any Loan Party to the Lenders which has been instituted or, to the knowledge of a Senior Officer of the Borrower, is threatened against any Loan Party or Subsidiary of any Loan Party or to which any of the properties of any thereof is subject which, in each case, would reasonably be expected to have a Material Adverse Effect;

(c)        to the extent a Senior Officer has knowledge that a Material Adverse Effect or Lien in excess of $1,000,000 on the assets of any Loan Party, would reasonably be expected to result therefrom, (i) the institution of any steps by any member of the Controlled Group or any other Person to terminate any Pension Plan, (ii) the failure of any member of the Controlled Group to make a required contribution to any Pension Plan (if such failure is sufficient to give rise to a Lien under Section 303(k) of ERISA) or to any Multiemployer Pension Plan, (iii) the taking of any action with respect to a Pension Plan which could reasonably be expected to result in the requirement that Borrower furnish a bond or other security to the PBGC or such Pension Plan, (iv) the occurrence of any event with respect to any Pension Plan or Multiemployer Pension Plan which could reasonably be expected to result in the incurrence by any member of the Controlled Group of any liability, fine or penalty (including any claim or demand for withdrawal liability from any Multiemployer Pension Plan), or (v) any notice that any Multiemployer Pension Plan is in reorganization, that increased contributions are reasonably expected to be required to avoid a reduction in plan benefits or the imposition of an excise tax, that any such plan is or is reasonably expected to been funded at a rate less than that required under Section 412 of the Code, that any such plan is or will be terminated, or that any such plan is or is reasonably expected to become insolvent; or

(d)        any cancellation (other than pursuant to a replacement or renewal thereof) or material adverse change in any insurance maintained by any Loan Party.

10.1.5.      Management Reports. Promptly upon receipt thereof, copies of all detailed financial and management reports submitted to Holdings, Borrower or any Loan Party by independent auditors in connection with each annual or interim audit made by such auditors of the books of Holdings, Borrower or such Loan Party.

10.1.6.      Projections. Not later than 60 days after the commencement of each Fiscal Year, financial projections for Holdings and its Subsidiaries for such Fiscal Year (including a business plan, monthly operating and cash flow budgets and a capital expenditures budget) prepared in a manner consistent with the projections delivered by Borrower to the Lenders prior to the Closing Date or otherwise in a manner reasonably satisfactory to Administrative Agent, accompanied by a certificate of a Senior Officer of Borrower to the effect that (a) the projections were prepared by Holdings in good faith; (b) Holdings has a reasonable basis for the assumptions contained in the projections, as of the date of delivery; and (c) the projections have been prepared in accordance with those assumptions (it being recognized by

 

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Administrative Agent and the Lenders that any projections and forecasts provided by Holdings are based on good-faith estimates and assumptions believed by Holdings to be reasonable as of the date of the applicable projections or assumptions and that actual results during the period or periods covered by any such projections and forecasts may differ materially from projected or forecasted results).

10.1.7.      Updated Schedule. Contemporaneously with the furnishing of each annual audit report pursuant to Section 10.1.1, an updated version of Schedule 9.17 showing information as of the date of such audit report (it being agreed and understood that this requirement shall be in addition to the other notice and delivery requirements set forth herein).

10.1.8.      Related Transactions Notices. Promptly following receipt, copies of any material notices (including notices of default or acceleration) received in connection with the Related Transactions.

10.1.9.      Material Contract Notices. Promptly following receipt, copies of any material notices (including notices of default) received in connection with any Material Contract that is a Franchise Agreement.

10.1.10.      Other Information. Promptly from time to time, such other information reasonably related to the business or financial data, reports, appraisals and projections of the Loan Parties, their properties, collateral or business, as Administrative Agent may reasonably request; provided the Loan Parties shall not be obligated to provide such information to the extent such disclosure would, in the good faith determination of the Loan Parties, violate attorney-client privilege or applicable confidentiality requirements, constitute disclosure of attorney work product or otherwise be prohibited by law or fiduciary duty from disclosing.

10.2.      Books, Records and Inspections. Keep, and cause each other Loan Party and their Subsidiaries to keep, its books and records in accordance with sound business practices sufficient to allow the preparation of financial statements in accordance with GAAP; permit, and cause each other Loan Party to permit, Administrative Agent or any representative thereof to inspect the corporate properties and operations (or any properties and operations if an Event of Default exists) of the Loan Parties; and permit, and cause each other Loan Party to permit, at any reasonable time and with reasonable notice (or at any time without notice if an Event of Default exists), Administrative Agent or any representative thereof to visit any or all of its offices, to discuss its financial matters with its officers and its independent auditors (and Borrower hereby authorizes such independent auditors to discuss such financial matters with Administrative Agent or any representative thereof so long as it has been afforded an opportunity to be present), and to examine (and, at the expense of the Loan Parties, photocopy extracts from) any of its books or other records; and permit, and cause each other Loan Party to permit, Administrative Agent and its representatives to inspect the Inventory and other tangible assets of the Loan Parties, to perform appraisals of the equipment of the Loan Parties, and to inspect, audit, check and make copies of and extracts from the books, records, computer data, computer programs, journals, orders, receipts, correspondence and other data relating to Inventory, Accounts and any other collateral, provided the Loan Parties shall not be obligated to provide such information to the extent such disclosure would, in the good faith determination of the Loan Parties, violate attorney-client privilege or applicable confidentiality requirements, constitute disclosure of

 

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attorney work product or otherwise be prohibited by law or fiduciary duty from disclosing. All such inspections or audits by Administrative Agent shall be at Borrower’s expense; provided that so long as no Default or Event of Default exists, Borrower shall not be required to reimburse any Lender or the Administrative Agent for inspections, audits or appraisals (x) for amounts in excess of $50,000 and (y) more frequently than twice each Fiscal Year.

10.3.      Maintenance of Property; Insurance.

(a)        Keep, and cause each of the Loan Parties and their Subsidiaries to keep, all property (other than intellectual property) useful and necessary in the business of the Loan Parties in good working order and condition, ordinary wear and tear, casualty loss and condemnation excepted, except (i) as permitted by Section 11.5, (ii) to the extent that any such properties are obsolete, are being replaced or, in the good faith judgment of such Loan Party or Subsidiary, are no longer useful or desirable in the conduct of the business of the Loan Parties and their Subsidiaries or (iii) where the failure to do so would not reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect.

(b)        Maintain, and cause each of the Loan Parties and their Subsidiaries to maintain, with responsible insurance companies, such insurance coverage as may be required by any law or governmental regulation or court decree or order applicable to it and such other insurance, to such extent and against such hazards and liabilities, as is customarily maintained by companies similarly situated (including, without limitation, business interruption insurance), but which shall insure against all risks and liabilities as are customarily carried by companies engaged in similar businesses; and, upon reasonable request of Administrative Agent, furnish to Administrative Agent original or electronic copies of policies evidencing such insurance, and a certificate setting forth in reasonable detail the nature and extent of all insurance maintained by the Loan Parties. Borrower shall cause each issuer of an insurance policy in respect of any Loan Party to provide Administrative Agent with an endorsement (i) showing Administrative Agent as lender’s loss payee with respect to each policy of property or casualty insurance with respect to the Collateral and naming Administrative Agent as an additional insured with respect to each policy of liability insurance, (ii) providing that 30 days’ notice will be given to Administrative Agent prior to any cancellation of, material reduction or change in coverage provided by or other material modification to such policy and (iii) reasonably acceptable in all other respects to Administrative Agent. Each Loan Party shall execute and deliver to Administrative Agent a collateral assignment, in form and substance satisfactory to Administrative Agent, of each business interruption insurance policy and representation and warranty insurance policy maintained by that Loan Party.

(c)        UNLESS BORROWER PROVIDES ADMINISTRATIVE AGENT WITH EVIDENCE OF THE INSURANCE COVERAGE REQUIRED BY THIS AGREEMENT, ADMINISTRATIVE AGENT MAY PURCHASE INSURANCE AT BORROWER’S EXPENSE, AFTER NOTICE TO BORROWER OF SUCH INTENT, TO PROTECT ADMINISTRATIVE AGENT’S AND THE LENDERS’ INTERESTS IN THE COLLATERAL. THIS INSURANCE MAY, BUT NEED NOT, PROTECT ANY LOAN PARTY’S INTERESTS. THE COVERAGE THAT ADMINISTRATIVE AGENT PURCHASES MAY NOT PAY ANY CLAIM THAT IS MADE AGAINST ANY LOAN PARTY IN CONNECTION WITH THE COLLATERAL. BORROWER MAY LATER

 

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CANCEL ANY INSURANCE PURCHASED BY ADMINISTRATIVE AGENT, AND ADMINISTRATIVE AGENT SHALL COOPERATE WITH BORROWER IN THIS REGARD, BUT ONLY AFTER PROVIDING ADMINISTRATIVE AGENT WITH EVIDENCE THAT BORROWER HAS OBTAINED INSURANCE AS REQUIRED BY THIS AGREEMENT. IF ADMINISTRATIVE AGENT PURCHASES INSURANCE FOR THE COLLATERAL, BORROWER WILL BE RESPONSIBLE FOR THE COSTS OF THAT INSURANCE, INCLUDING INTEREST AND ANY OTHER CHARGES THAT MAY BE IMPOSED WITH THE PLACEMENT OF THE INSURANCE, UNTIL THE EFFECTIVE DATE OF THE CANCELLATION OR EXPIRATION OF THE INSURANCE. THE COSTS OF THE INSURANCE MAY BE ADDED TO THE PRINCIPAL AMOUNT OF THE LOANS OWING HEREUNDER. THE COSTS OF THE INSURANCE MAY BE MORE THAN THE COST OF THE INSURANCE THE LOAN PARTIES MAY BE ABLE TO OBTAIN ON THEIR OWN.

10.4.      Compliance with Laws; Payment of Taxes and Liabilities. (a) Comply, and cause each of the Loan Parties and their Subsidiaries to comply, with all applicable laws, rules, regulations, decrees, orders, judgments, licenses and permits, except where failure to comply would not reasonably be expected to have a Material Adverse Effect; (b) without limiting clause (a) above, ensure, and cause each of the Loan Parties and their Subsidiaries to ensure, that no Person who owns a controlling interest in or otherwise controls any of the Loan Parties and their Subsidiaries is or shall be (i) listed on the SDN List, Department of the Treasury, and/or any other similar lists maintained by OFAC pursuant to any authorizing statute, Executive Order or regulation or (ii) a person designated under Section 1(b), (c) or (d) of Executive Order No. 13224 (September 23, 2001), any related enabling legislation or any other similar Executive Orders, (c) without limiting clause (a) above, comply, and cause each of the Loan Parties and their Subsidiaries to comply, with all applicable BSA and anti-money laundering laws and regulations and (d) pay, and cause each of the Loan Parties and their Subsidiaries to pay, prior to delinquency, all Taxes and other governmental charges against it or any of its property, as well as claims of any kind which, if unpaid, could become a Lien on any of its property (other than Permitted Liens); provided that the foregoing shall not require any Loan Party or Subsidiary to pay any such Tax or charge so long as it shall contest the validity thereof in good faith by appropriate proceedings and shall set aside on its books adequate reserves with respect thereto in accordance with GAAP or would not reasonably be expected to result in a Material Adverse Effect, and, in the case of a claim which could become a Lien (other than a Permitted Lien) on any collateral, such contest proceedings shall stay the foreclosure of such Lien or the sale of any portion of the collateral to satisfy such claim.

10.5.      Maintenance of Existence, etc. Maintain and preserve, and (subject to Section 11.5) cause each of the Loan Parties and their Subsidiaries to maintain and preserve, (a) its existence and good standing in the jurisdiction of its organization and (b) its qualification to do business and good standing in each jurisdiction where the nature of its business makes such qualification necessary (other than such jurisdictions in which the failure to be qualified or in good standing would not reasonably be expected to have a Material Adverse Effect).

10.6.      Use of Proceeds. (i) Use the proceeds of the Loans, and the Letters of Credit under the Existing Credit Agreement, solely to finance the Related Transactions (as defined in the Existing Credit Agreement) and any related earn-outs, to finance the Club Pilates Royalty Buyout and transaction fees relating to the Club Pilates acquisition, to repay the Debt to be

 

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Repaid (as defined in the Existing Credit Agreement), to pay fees and expenses related to the transactions contemplated hereby, for working capital purposes, for Permitted Acquisitions, and other Investments and Restricted Payments permitted hereunder, for Capital Expenditures and for other general business purposes; (ii) use the proceeds of the Additional Term A Loans, the Revolving Loans and the Letters of Credit to finance the Related Transaction, the Closing Date Acquisition and Permitted Acquisitions and associated fees and expenses, for working capital purposes, for the payment of costs and expenses associated with the credit facility hereunder, for Capital Expenditures, and for other general business purposes; and (iii) not use or permit any proceeds of any Loan to be used, either directly or indirectly, for the purpose, whether immediate, incidental or ultimate, of “purchasing or carrying” any Margin Stock.

10.7.      Employee Benefit Plans.

Except as would not reasonably be expected to result in a Material Adverse Effect:

(a)        Maintain, and cause each other member of the Controlled Group to maintain, each Pension Plan and each Canadian Pension Plan in substantial compliance with all applicable requirements of law and regulations.

(b)        Make, and cause each other member of the Controlled Group to make, on a timely basis, all required contributions to any Multiemployer Pension Plan.

(c)        Not, and not permit any other member of the Controlled Group to (i) terminate or withdraw from any Pension Plan or Multiemployer Pension Plan or (ii) take any other action with respect to any Pension Plan that would reasonably be expected to entitle the PBGC or other applicable authority to terminate, impose liability in respect of, or cause a trustee to be appointed to administer, any Pension Plan.

10.8.      Environmental Matters. If any release or threatened release or other disposal of Hazardous Substances shall occur or shall have occurred on any real property or any other assets of any of the Loan Parties and their Subsidiaries that could reasonably be expected to result in a Material Adverse Effect, Borrower shall, or shall cause the applicable Loan Party or applicable Subsidiary of a Loan Party to, cause the prompt containment and removal of such Hazardous Substances and the remediation of such real property or other assets to the extent required by all Environmental Laws. Without limiting the generality of the foregoing, Borrower shall, and shall cause each of the Loan Parties and their Subsidiaries to, comply with any Federal or state judicial or administrative order requiring the performance at any real property of any Loan Party of activities in response to the release or threatened release of a Hazardous Substance that could reasonably be expected to result in a Material Adverse Effect. To the extent that the transportation of Hazardous Substances is permitted by this Agreement, Borrower shall, and shall cause its Subsidiaries to, dispose of such Hazardous Substances, or of any other wastes, only at licensed disposal facilities operating in compliance with Environmental Laws, except as could not reasonably be expected to result in a Material Adverse Effect.

10.9.      Further Assurances. Take, and cause each other Loan Party to take, such actions as are reasonably necessary or as Administrative Agent or the Required Lenders may reasonably request from time to time to ensure that the Obligations of each Loan Party under the Loan

 

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Documents are secured by a first priority perfected (subject to Permitted Liens and, with respect to intellectual property, if and to the extent contemplated under the Guaranty and Collateral Agreement) Lien in favor of Administrative Agent (subject to Permitted Liens) on substantially all of the assets of Borrower and each Loan Party constituting Collateral (as well as all Capital Securities of each first-tier Subsidiary of a Loan Party that is not a CFC (excluding (i) any non-Wholly Owned Subsidiary owned by the Loan Parties on the Closing Date following the use of commercially reasonable efforts by such Loan Party to cause such non-Wholly Owned Subsidiary to consent to the lien in favor of Administrative Agent on such Capital Securities and (ii) any Subsidiary acquired pursuant to a Permitted JV Acquisition) and 65% of all voting Capital Securities and 100% of all non-voting Capital Securities of each first-tier Subsidiary) of a Loan Party that is a CFC (excluding (i) any non-Wholly Owned Subsidiary owned by the Loan Parties on the Closing Date following the use of commercially reasonable efforts by such Loan Party to cause such non-Wholly Owned Subsidiary to consent to the lien in favor of Administrative Agent on such Capital Securities and (ii) any Subsidiary acquired pursuant to a Permitted JV Acquisition) and guaranteed by each Loan Party (including, immediately upon the acquisition or creation thereof (or such longer period as the Administrative Agent may provide in its sole discretion), any Subsidiary that is not a CFC acquired or created after the Closing Date), in each case as Administrative Agent may reasonably determine, including (a) the execution and delivery of guaranties, security agreements, pledge agreements, mortgages, deeds of trust, financing statements, opinions of counsel and other documents, in each case in form and substance reasonably satisfactory to Administrative Agent, and the filing or recording of any of the foregoing, (b) the prompt delivery of certificated securities and other Collateral with respect to which perfection is obtained by possession, and (c) with respect to any owned real property with a fair market value in excess of $1,000,000, acquired by any Loan Party after the Closing Date, the delivery within sixty (60) days after the date such real property was acquired (or such longer period as the Administrative Agent may provide in its sole discretion) of each of the Real Estate Documents with respect to such real property; provided, however, that notwithstanding any provision set forth hereunder or under any Loan Document to the contrary, in no event shall (x) the assets of any CFC constitute security or secure, or such assets or the proceeds of such assets be available for, payment of the obligations of the Borrower, or (y) more than 65% of the total combined voting power of all classes of stock of any first-tier CFC of any Loan Party be required to be pledged to secure the obligations of the Borrower.

10.10.      Deposit Accounts. Unless Administrative Agent otherwise consents in writing, and subject to Section 10.11, in order to facilitate Administrative Agent’s and the Lenders’ maintenance and monitoring of their security interests in the collateral, maintain, and cause each other Loan Party to maintain, all of their deposit accounts that are not Excluded Accounts with an institution that has entered into a control agreement with the Administrative Agent and the applicable Loan Party granting control of such account to the Administrative Agent.

10.11.      Post Closing Covenants. Borrower shall satisfy the requirements and/or provide to the Administrative Agent each of the documents, instruments, agreements and information set forth on Schedule 10.11, in form and substance reasonably acceptable to the Administrative Agent, on or before the date specified for such requirement in such Schedule or such later date to be determined by the Administrative Agent in its sole discretion, each of which shall be completed or provided in form and substance reasonably satisfactory to the Administrative Agent. Until the expiration and passage of the date so stipulated, no breach of any warranty,

 

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condition or covenant shall be deemed to have occurred as a result of the failure to deliver or perform such requirements.

10.12.      Holdings Covenant. Holdings and Intermediate Holdings shall not (i) enter into any agreement outside the ordinary course of business (including any agreement for incurrence or assumption of Debt (except to the extent permitted by this Agreement), any purchase, sale, lease or exchange of any property or the rendering of any service), between itself and any other Person, other than the Loan Documents to which it is a party, the Original Related Agreements and the Related Agreements, any agreement related to any Debt, Contingent Liability, Investment or Liens permitted hereunder, any agreements with other Loan Parties and Sponsor to the extent permitted hereunder, any agreements with respect to cash and cash equivalents or bank accounts or other ordinary course agreements, any agreements with any equityholders, agreements entered into in connection with the issuance, sale, repurchase or redemption of any equity securities, the Holding LLC Agreement or Intermediate Holding LLC Agreement, as applicable, agreements incidental to permitted activities, such as agreements with employees, officers, directors, accountants, attorneys, advisors, landlords and similar activities and any other agreements required by law or otherwise (collectively, the “Holdings Documents”), (ii) engage in any business or conduct any business activity or transfer any of its assets (except as otherwise permitted hereunder), other than activities relating to the agreements set forth in clause (i), the making of Investments in Intermediate Holdings or Borrower, as applicable, existing on the Original Closing Date or permitted or required by this Agreement, the performance of its obligations under the Holdings Documents in accordance with the terms thereof, the making of Restricted Payments permitted hereunder and the performance of ministerial activities and the payment of taxes and administrative fees and the maintenance of its state law existence or (iii) consolidate, merge or amalgamate with or into any other Person. Holdings and Intermediate Holdings shall each preserve, renew and keep in full force and effect its existence.

10.13.      STGH Covenant. STGH shall not (i) enter into any agreement (including any agreement for incurrence or assumption of Debt (excluding Debt consisting of the Obligations under this Agreement), any purchase, sale, lease or exchange of any property or the rendering of any service), between itself and any other Person, other than the Loan Documents to which it is a party and the Original Related Agreements, any agreements with respect to cash and cash equivalents or bank accounts, any agreements with equityholders, or other ordinary course agreements necessary in connection with its business as a holding company, (ii) engage in any business or conduct any business activity or transfer any of its assets, other than activities relating to the agreements set forth in clause (i), the making of Investments in its Subsidiaries that are Loan Parties, existing on the Original Closing Date or permitted or required by this Agreement, the performance of its obligations under the agreements set forth in clause (i) in accordance with the terms thereof, the making of Restricted Payments permitted hereunder and the performance of ministerial activities and the payment of taxes and administrative fees and the maintenance of its state law existence or (iii) consolidate, merge or amalgamate with or into any other Person. STGH shall preserve, renew and keep in full force and effect its existence.

10.14.      Real Property.

10.14.1.      Each Loan Party and its Subsidiaries shall comply in all material respects at all times with the provisions of all real property leases, space sharing agreements or

 

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similar arrangements to which such Loan Party or Subsidiary is a party, except where such non-compliance would not reasonably be expected to result in a Material Adverse Effect. Except to the extent that would not reasonably be expected to result in a Material Adverse Effect, each Loan Party and its Subsidiaries shall pay when due (giving effect to all applicable grace periods) all rents and other amounts payable under any real property lease, space sharing agreements or similar arrangements to which such Loan Party is a party.

10.14.2.      Each Loan Party and its Subsidiaries shall use commercially reasonable efforts to cause each lease, space sharing agreement or similar arrangement entered into after the Original Closing Date (including each lease, space sharing agreement or similar arrangement that is amended, restated, supplemented, renewed, extended or otherwise modified after the Original Closing Date) to not contain (a) any provisions that could result in such lease, space sharing agreement or similar arrangement (including each lease, space sharing agreement or similar arrangement that is amended, restated, supplemented, renewed, extended or otherwise modified after the Original Closing Date) to be breached, violated, defaulted, voided or terminated (or could result in a Loan Party’s rights to be reduced or a lessor’s rights to be expanded) due to a change of control or ownership or similar event of such Loan Party, or (b) any provisions that otherwise restrict or prohibit a change of control or ownership or similar event of a Loan Party. The requirements of this Section 10.14.2 may be waived by the Administrative Agent in its sole discretion.

10.15.      Fueled Collective Covenant. Promptly (and in any event within two (2) Business Days) of the Companies’ Knowledge that FCF or any of its Subsidiaries have achieved the lesser of (i) $750,000 of EBITDA for the fiscal quarter most recently ended and (ii) EBITDA for the fiscal quarter most recently ended in an amount equal to or greater than an amount equal to five percent (5%) of the EBITDA of Holdings and its Subsidiaries for the fiscal quarter most recently ended, then either case of the foregoing clauses (i) or (ii), Holdings shall notify the Administrative Agent in writing of such information and Holdings shall take, and cause each other Loan Party to take, such actions as are reasonably necessary or as Administrative Agent or the Required Lenders may reasonably request from time to time to ensure that the Obligations of each Loan Party under the Loan Documents are secured by a first priority perfected (subject to Permitted Liens and, with respect to intellectual property, if and to the extent contemplated under the Guaranty and Collateral Agreement) Lien in favor of Administrative Agent (subject to Permitted Liens) on substantially all of the assets of FCF and its Subsidiaries, including, without limitation, causing FCF and its Subsidiaries to become Loan Parties hereunder.

SECTION 11

NEGATIVE COVENANTS

Until the expiration or termination of the Commitments and thereafter until all Obligations hereunder and under the other Loan Documents are Paid in Full, Borrower agrees that, unless at any time the Required Lenders shall otherwise expressly consent in writing, it will:

11.1.      Debt. Not, and not permit any other Loan Party or any Subsidiary of any Loan Party to, create, incur, assume or suffer to exist any Debt, except:

(a)        Obligations under this Agreement and the other Loan Documents;

 

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(b)        Debt of any of the Loan Parties (other than Holdings and Intermediate Holdings) and their Subsidiaries secured by Liens permitted by Section 11.2(d), and extensions, renewals and refinancings thereof; provided that the aggregate amount of all such Debt at any time outstanding shall not exceed $750,000;

(c)        (i) Debt of Borrower to any other Borrower, (ii) Debt of any Loan Party to Borrower or (iii) Debt of Borrower to any Loan Party, (iv) Debt of Holdings or Intermediate Holdings to Borrower to the extent such Debt could otherwise be made as a restricted payment permitted by Section 11.4 and (v) Debt of any Subsidiary that is not a Guarantor to any Loan Party and Debt of any Loan Party to any Subsidiary that is not a Guarantor in an aggregate amount outstanding not to exceed $1,000,000 less that amount of Investments made pursuant to Section 11.11(c); provided that if such Debt shall be evidenced by a note, it shall be a demand note in form and substance reasonably satisfactory to Administrative Agent and pledged and delivered to Administrative Agent pursuant to the Collateral Documents as additional collateral security for the Obligations, and the obligations under such demand note shall be subordinated to the obligations of the Loan Parties under the Loan Documents (including the Obligations of Borrower under this Agreement) in a manner reasonably satisfactory to Administrative Agent;

(d)        Debt in respect of surety or appeal bonds, workers’ compensation claims, self-insurance obligations and bankers acceptances issued for the account of any Loan Party in the ordinary course of business, including guarantees or obligations of any Loan Party with respect to letters of credit supporting such surety or appeal bonds, workers’ compensation claims, self-insurance obligations and bankers acceptances (in each case other than for an obligation for money borrowed);

(e)        Debt arising from the honoring by a bank or other financial institution of a check, draft or similar instrument inadvertently (except in the case of daylight overdrafts) drawn against insufficient funds in the ordinary course of business;

(f)        Debt arising in connection with endorsement of instruments for deposit in the ordinary course of business;

(g)        Contingent Liabilities to financial institutions, in each case to the extent in the ordinary course of business and on terms and conditions which are within the general parameters customary in the banking industry, entered into to obtain cash management services or deposit account overdraft protection services (in amount similar to those offered for comparable services in the financial industry) or other services in connection with the management or opening of deposit accounts or incurred as a result of endorsement of negotiable instruments for deposit or collection purposes and other customary, Contingent Liabilities of the Loan Parties incurred in the ordinary course of business;

(h)        Debt consisting of accrued and unpaid management fees, operator costs or expenses under the Management Agreement;

(i)        Debt consisting of any final judgment rendered against any Loan Party that has not been paid, discharged or vacated or had execution thereof stayed pending appeal prior to such final judgment constituting an Event of Default in accordance with Section 13.1.8;

 

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(j)        Hedging Obligations incurred for bona fide hedging purposes and not for speculation in form and substance reasonably satisfactory to Administrative Agent;

(k)        Debt described on Schedule 11.1(a) and any extension, renewal or refinancing thereof so long as the principal amount thereof is not increased;

(l)        the Debt to be Repaid (so long as such Debt is repaid on the Closing Date with the proceeds of the initial Loans hereunder);

(m)        Contingent Liabilities arising with respect to (i) customary indemnification obligations in favor of purchasers in connection with dispositions permitted under Section 11.5, and (ii) the guaranty by a Loan Party of a lease, sublease, license or sublicense entered into in the ordinary course of business by another Loan Party;

(n)        Debt incurred solely to finance Borrower’s insurance premiums under insurance policies maintained by Borrower in the ordinary course of business for insurance required under this Agreement in an aggregate amount at any time outstanding not to exceed the premiums owed under such policy;

(o)        Debt arising out of judgments, attachments or awards not resulting in an Event of Default;

(p)        Accretion of interest paid in kind on Debt permitted hereunder;

(q)        any guarantee by Holdings or Intermediate Holdings of Debt or other obligations of the Borrower otherwise permitted under this Agreement;

(r)        unsecured Debt of Holdings or its Subsidiaries subordinated to the Obligations on terms and conditions reasonably satisfactory to the Administrative Agent in its reasonable discretion owing to any former director, officer or employee of Holdings, the Borrower or its Subsidiaries, in connection with the termination of their employment or appointment, or their respective assigns, estates, heirs or their current or former spouses for the repurchase, redemption or other acquisition or retirement for value of any Capital Securities of Holdings held by them;

(s)        the Existing Earn-Out Obligations;

(t)        Permitted Earn-Outs and Permitted Seller Debt in an aggregate outstanding amount not at any time exceeding $6,500,000 (excluding Permitted Earn-Outs in connection with the Original Related Agreements in an amount not to exceed $15,000,000); provided, that (x) the aggregate outstanding amount of any Permitted Earn-Outs shall not exceed $3,500,000 at any time and (y) for purposes of this Section 11.1(s) the amount of Permitted Earn-Outs shall be deemed to be equal to the maximum amount payable under such obligation;

(u)        other unsecured Debt in an aggregate amount not to exceed $1,500,000 at any time outstanding;

 

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(v)        all premium (if any, whether due at maturity, or upon acceleration of maturity for any reason including automatic acceleration triggered by a bankruptcy filing), interest, fees, expenses, charges and additional or contingent interest on obligations described in paragraphs (a) through (u) above;

(w)        Debt consisting of obligations of Holdings or any Subsidiary under deferred compensation or other similar arrangements with employees incurred by such Person in connection with the Transactions, any Permitted Acquisition or any other Investment or other acquisition permitted hereunder;

(x)        Debt representing deferred compensation to employees of Borrower, Holdings or any Subsidiary incurred in the ordinary course of business; and

(y)        Guarantee by Holdings or its Subsidiaries of certain lease obligations existing as of the Closing Date and set forth on Schedule 11.1(b) in an aggregate amount not to exceed $2,500,000.

Notwithstanding anything contained in this Section 11.1 to the contrary, STGH may not incur any Debt or liabilities of any sort other than the Obligations.

11.2.      Liens. Not, and not permit any other Loan Party and their Subsidiaries to, create or permit to exist any Lien on any of its real or personal properties, assets or rights of whatsoever nature (whether now owned or hereafter acquired), except:

(a)        Liens for taxes or other governmental charges not at the time delinquent or thereafter payable without penalty or being diligently contested in good faith by appropriate proceedings and, in each case, for which it maintains adequate reserves in accordance with GAAP and the execution or other enforcement of which is effectively stayed;

(b)        Liens arising in the ordinary course of business (such as (i) Liens of carriers, warehousemen, mechanics and materialmen and other similar Liens imposed by law and (ii) Liens in the form of deposits or pledges incurred in connection with worker’s compensation, unemployment compensation and other types of social security (excluding Liens arising under ERISA) or in connection with surety bonds, bids, performance bonds and similar obligations) for sums not overdue more than 90 days or being diligently contested in good faith by appropriate proceedings and not involving any advances or borrowed money or the deferred purchase price of property or services and, in each case, for which it maintains adequate reserves in accordance with GAAP and the execution or other enforcement of which is effectively stayed or the failure to pay would not reasonably be expected to result in a Material Adverse Effect;

(c)        Liens described on Schedule 11.2 as of the Closing;

(d)        subject to the limitation set forth in Section 11.1(b), (i) Liens arising in connection with Capital Leases (and attaching only to the property being leased), (ii) Liens existing on property at the time of the acquisition thereof by any Loan Party or its Subsidiaries (and not created in contemplation of such acquisition) and (iii) Liens that constitute purchase money security interests on any property securing debt incurred for the purpose of financing all

 

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or any part of the cost of acquiring such property, provided that any such Lien attaches to such property within 20 days of the acquisition thereof and attaches solely to the property so acquired;

(e)        easements, rights of way, restrictions (including zoning restrictions), covenants, licenses, encroachments, protrusions and other similar real estate charges or encumbrances, minor defects or irregularities in title and other similar real estate Liens not interfering in any material respect with the ordinary conduct of the business of any Loan Party;

(f)        Liens arising out of judgments, attachments or awards not resulting in an Event of Default;

(g)        leases, subleases, licenses or sublicenses of the assets or properties of any of the Loan Parties or their Subsidiaries, in each case entered into in the ordinary course of business and not interfering in any material respect with the business of any of the Loan Parties and their Subsidiaries;

(h)        bankers’ Liens, rights of setoff and other similar Liens existing solely with respect to cash and cash equivalents on deposit in one or more accounts maintained by any Loan Party, in each case granted in the ordinary course of business in favor of the bank or banks with which such accounts are maintained, securing amounts owing to such bank with respect to cash management and operating account arrangements, including those involving pooled accounts and netting arrangements; provided that, unless such Liens are nonconsensual and arise by operation of law, in no case shall any such Liens secure (either directly or indirectly) the repayment of any Debt for borrowed money;

(i)        licenses or sublicenses of intellectual property granted by any Loan Party or Subsidiary in the ordinary course of business;

(j)        the filing of UCC or PPSA financing statements solely as a precautionary measure in connection with Operating Leases or consignment of goods;

(k)        Liens incurred with respect to obligations (other than obligations for borrowed money) that do not in the aggregate exceed $1,250,000 at any time outstanding;

(l)        Liens of a collection bank arising in the ordinary course of business under Section 4-210 of the UCC in effect in the relevant jurisdiction covering only the items being collected upon;

(m)        Liens of sellers of goods to Borrower or any of its Subsidiaries arising under Article 2 of the UCC in effect in the relevant jurisdiction or the equivalent provision in the PPSA, as applicable, in the ordinary course of business, covering only the goods sold and covering only the unpaid purchase price for such goods and related expenses;

(n)        Landlord liens arising by operation of law and/or contract and any interest or title of a lessor, sublessor, licensor or licensee under any lease or license entered into by Borrower or any Subsidiary in the ordinary course of business;

 

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(o)        Liens on an insurance policy of any Loan Party or any Subsidiary and the identifiable cash proceeds thereof in favor of the issuer of such policy and securing Debt permitted to finance the premiums of such policies;

(p)        reasonable and necessary cash deposits made in the ordinary course of business to secure the performance of contracts, leases or bid obligations, or other such contracts entered into in the ordinary course of business for which pledges or deposits are customary;

(q)        Liens arising under the Loan Documents;

(r)        Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties in connection with the importation of goods in the ordinary course of business;

(s)        Liens given to a public or private utility or any other governmental authority in the ordinary course;

(t)        Liens arising out of conditional sale, title retention, consignment or similar arrangements with vendors for the sale or purchase of goods entered into by Borrower, Holdings or any Subsidiary in the ordinary course of business; and

(u)        Liens solely on any cash earnest money deposits made by Borrower, Holdings or any Subsidiary in connection with any letter of intent or purchase agreement entered into in connection with a Permitted Acquisition or other Investment permitted hereunder.

11.3.      [Reserved].

11.4.      Restricted Payments. Not, and not permit any other Loan Party to, (a) make any distribution to any holders of its Capital Securities including any distribution of assets pursuant to a plan of statutory division, (b) purchase or redeem any of its Capital Securities, (c) pay any management fees, transaction based fees or similar fees (other than payments of ordinary course compensation to employees) to any of its equity holders or any Affiliate thereof, (d) make any payment on account of Debt that has been contractually subordinated in right of payment to the Obligations if that payment is not permitted at that time under the applicable subordination terms and conditions; or (e) set aside funds for any of the foregoing (the foregoing in clauses (a) through (d), collectively, “Restricted Payments” and each a “Restricted Payment”). Notwithstanding the foregoing:

(a)        any Subsidiary may pay dividends or make other distributions to Borrower or to a domestic Wholly-Owned Subsidiary and Borrower and its Subsidiaries may pay any intercompany debt permitted pursuant to Section 11.1(c);

(b)        so long as (x) no Specified Event of Default exists or would result therefrom, (y) the Borrower is in compliance with the covenants set forth in Section 11.14 (as calculated on a pro forma basis after giving effect to such payment or portion thereof actually paid) for the twelve month period ending as of the calendar month then most recently ended for which financial statements pursuant to Section 10.1.2 have been delivered to Administrative Agent (such pro forma ratio to be determined as if such payment was made as of the first day of

 

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such period covered thereby), and (z) Borrower shall have Liquidity of at least $1,000,000 before and after giving effect to the proposed payment, Borrower may pay or cause any other Loan Party to pay on a quarterly or monthly basis the annual management fees to Sponsor pursuant to the Management Agreement (or portion of such annual management fees as would allow the Borrower to comply with clauses (x), (y) and (z) above) in an aggregate amount not exceeding $750,000 in any Fiscal Year;

(c)        so long as (x) no Event of Default or Default shall have occurred and be continuing or would result therefrom and (y) Borrower shall have Liquidity of at least $750,000 before and after giving effect to the proposed payment, the Borrower may, or may make distributions to Intermediate Holdings and Intermediate Holdings may, or may make distributions to Holdings so that Holdings may, in an amount not to exceed an aggregate of $750,000 per year, repurchase with cash its Capital Securities owned by employees of Holdings, the Borrower or the Subsidiaries or make cash payments to employees of Holdings, the Borrower or the Subsidiaries upon termination of employment in connection with the exercise of stock options, stock appreciation rights or similar equity incentives or equity based incentives pursuant to management incentive plans or in connection with the death or disability of such employees;

(d)        Borrower may make Restricted Payments to Intermediate Holdings and Intermediate Holdings may make Restricted Payments to Holdings (and Holdings may make Restricted Payments to any direct or indirect equity holder thereof) (x) in an amount not to exceed an aggregate of $500,000 per year to the extent necessary to pay for the general corporate and overhead expenses incurred by Intermediate Holdings or Holdings (or to any direct or indirect parent thereof) in the ordinary course of business, and (y) in the amount of the Tax Distributions (at such times as provided in the Holdings LLC Agreement as in effect on the Closing Date); provided that with respect to any Tax Distribution in an amount in excess of the actual cash taxes in good faith estimated to be due by the members of Holdings and arising solely out of the taxable income of Borrower and its Subsidiaries for the current taxable year of Borrower and its Subsidiaries (net of losses distributed to such persons in respect of their ownership in Holdings and net of tax refunds in respect of any prior actual taxes paid in respect of prior Tax Distributions), such Restricted Payment may only be paid so long as (x) no Default or Event of Default exists or would result therefrom, (y) the Total Debt to EBITDA Ratio for the twelve month period ending as of the calendar month then most recently ended for which financial statements pursuant to Section 10.1.2 have been delivered to Administrative Agent (such pro forma ratio to be determined as if such payment was made as of the first day of such period covered thereby), is no greater than the applicable compliance level for the most recently ended Fiscal Quarter less 0.50, and (z) Borrower shall have Liquidity of at least $2,000,000 before and after giving effect to the proposed payment;

(e)        the Loan Parties may make payments in connection with the Existing Earn-Out Obligations so long as (x) the Total Debt to EBITDA Ratio for the twelve month period ending as of the calendar month then most recently ended for which financial statements pursuant to Section 10.1.2 have been delivered to Administrative Agent (such pro forma ratio to be determined as if such payment was made as of the first day of such period covered thereby), is no greater than 4.50:1.00, (y) Borrower shall have Liquidity of at least $2,000,000 before and after giving effect to the proposed payment and (z) the Fixed Charge Coverage Ratio for the twelve month period ending as of the calendar month then most recently ended for which

 

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financial statements pursuant to Section 10.1.2 have been delivered to Administrative Agent (such pro forma ratio to be determined as if such Existing Earn-Out Obligation was a Fixed Charge), is no less than 1.20:1.00; provided that if the conditions set forth in clauses (x) and (y) are not satisfied the Loan Parties may make payments in connection with the Existing Earn-Out Obligations to the extent funded with proceeds of Capital Securities so long as no Default or Event of Default exists or would result therefrom;

(f)        solely on or after June 30, 2019, Borrower may make distributions to Intermediate Holdings and Intermediate Holdings may make distributions to Holdings (and Holdings may make distributions to any direct or indirect equity holder thereof) using the proceeds of any Incremental Term Loan so long as the Dividend Payment Conditions are satisfied; and

(g)        in each case to the extent due and payable on a non-accelerated basis and permitted under the applicable subordination provisions thereof, Borrower and any applicable Subsidiary may make payments (i) in respect of Permitted Earn-Outs, so long as (x) the Total Debt to EBITDA Ratio for the twelve month period ending as of the calendar month then most recently ended for which financial statements pursuant to Section 10.1.1 or 10.1.2 of the Credit Agreement have been delivered to Administrative Agent (such pro forma ratio to be determined as if such payment was made as of the first day of such period covered thereby), is no greater than 4.25:1.00, (y) Borrower shall have Liquidity of at least $2,000,000 before and after giving effect to the proposed payment and (z) the Fixed Charge Coverage Ratio for the twelve month period ending as of the calendar month then most recently ended for which financial statements pursuant to Section 10.1.1 or 10.1.2 of the Credit Agreement have been delivered to Administrative Agent (such pro forma ratio to be determined as if such Existing Earn-Out Obligation was a Fixed Charge), is no less than 1.20:1.00, and (ii) in respect of Post-Closing Cash Payments, so long as (x) no Default or Event of Default exists or would result therefrom, (y) the Total Debt to EBITDA Ratio for the twelve month period ending as of the calendar month then most recently ended for which financial statements pursuant to Section 10.1.1 or 10.1.2 have been delivered to Administrative Agent (such pro forma ratio to be determined as if such payment was made as of the first day of such period covered thereby), is no greater than the applicable compliance level for the most recently ended Fiscal Quarter less 0.50, and (z) Borrower shall have Liquidity of at least $2,000,000 before and after giving effect to the proposed payment.

For the avoidance of doubt, any payment blocked by the restrictions in this Section 11.4 shall accrue and may be paid at any time the conditions for such payment in this Section 11.4 have been satisfied.

11.5.      Mergers, Consolidations, Sales. Not, and not permit any of the Loan Parties and their Subsidiaries to, (a) be a party to any merger, amalgamation, statutory division, or consolidation, except (x) Permitted Acquisitions, (y) any such merger, amalgamation, statutory division, consolidation, sale, transfer, conveyance, lease or assignment of or by any Wholly-Owned Subsidiary into Borrower or into any other domestic Wholly-Owned Subsidiary or any Borrower into another Borrower and (z) any such merger of a non-Wholly Owned Subsidiary into Borrower or another Loan Party so long as both before and after giving effect to such merger the Loan Parties are in compliance with the negative covenants set forth in Section 11

 

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(including the covenants in Section 11.14); or (b) sell, transfer, dispose of, convey or lease any of its assets or Capital Securities (including the sale of Capital Securities of any Subsidiary, but excluding Capital Securities of Intermediate Holdings or Holdings) except for (i) sales of inventory in the ordinary course of business, (ii) the disposition of any asset which is to be replaced and is in fact replaced, or a binding contract is in place to replace, within 180 days with another asset useful in the Loan Parties’ business (so long as Administrative Agent has a first priority and perfected Lien on any newly-acquired asset, subject to Permitted Liens), (iii) a disposition of Collateral that is obsolete, unmerchantable or otherwise unsalable or unusable in the ordinary course of business (including the lapse, abandonment, or disposition of any intellectual property rights that are no longer material to the conduct of the business of the Loan Parties, or expiration of any patent or copyright in accordance with its statutory term), (iv) the discount, write-down, sale or other disposition in the ordinary course of business of trade or accounts receivable, (v) dividends, distributions and payments by Loan Parties, in each case solely to the extent permitted by Section 11.4 of this Agreement, (vi) sales, leases, licenses or other transfers of assets between or amongst the Loan Parties, (vii) dispositions of cash and Cash Equivalent Investments, (viii) termination, surrender or sublease of real estate in the ordinary course of business, (ix) the granting of leases, licenses, subleases or sublicenses of real property or intellectual property (as lessor or licensor) in the ordinary course of business the Net Cash Proceeds of which do not in the aggregate exceed $750,000, (x) dispositions constituting Permitted Acquisitions and Permitted Liens, (xi) transfers of property subject to any event that gives rise to the receipt by Borrower or any Subsidiary of any insurance proceeds or condemnation awards in respect of any equipment, fixed assets or real property (including any improvements thereon) to replace or repair such equipment, fixed assets or real property, (xii) the unwinding of any Hedging Obligations, (xiii) other dispositions in any Fiscal Year the Net Cash Proceeds of which do not in the aggregate exceed $1,500,000 or (c) sell or assign with or without recourse any receivables, except for the discount, write-down, sale or other disposition in the ordinary course of business of trade or accounts receivable.

To the extent any Collateral is disposed of as expressly permitted by this Section 11.5 to any Person other than a Loan Party, such Collateral shall be sold free and clear of the Liens created by the Loan Documents, and, if requested by the Administrative Agent, upon the certification by the Borrower that such disposition is permitted by this Agreement, the Administrative Agent shall be authorized to take any actions deemed appropriate in order to effect the foregoing.

11.6.      Modification of Organizational Documents. Not permit the charter, articles, bylaws or other organizational documents of any Loan Party to be amended or modified in any way which could reasonably be expected to materially adversely affect the interests of the Lenders; not change, or allow any Loan Party to change, its state of formation or its organizational form without 30 days prior written notice to Administrative Agent.

11.7.      Transactions with Affiliates. Not, and not permit any of the Loan Parties and their Subsidiaries to, enter into, or cause, suffer or permit to exist any transaction, arrangement or contract with any of its other Affiliates (other than another Loan Party) which is on terms which are less favorable than are obtainable from any Person which is not one of its Affiliates (and to the extent such transaction is between any Loan Party and any Affiliate that is not a Loan Party (including any Subsidiary that is not a Loan Party or any portfolio company or subsidiary

 

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of the Sponsor) and such transaction involves an annual out-of-pocket costs by such Loan Party in excess of $500,000 the Administrative Agent shall have provided a written consent acknowledging that such transaction meets the arm’s-length requirement of this Section) other than (a) Restricted Payments otherwise permitted under Section 11.4, (b) pursuant to the Management Agreement or the Holdings LLC Agreement, (c) employment and severance arrangements between the Loan Parties and their Subsidiaries and their respective officers and employees and transactions pursuant to stock option plans and employee benefit plans and similar arrangements in the ordinary course of business, (d) the payment of customary fees, compensation, independent contractor fees and reasonable out of pocket costs to, and indemnities provided on behalf of, directors, managers, officers and employees of the Loan Parties and their Subsidiaries in the ordinary course of business, (e) the existence of, or the performance by Borrower or any Subsidiary of its obligations under the terms of, any stockholders agreement (including any registration rights agreement or purchase agreement related thereto) to which it is a party as of the Closing Date, (f) the Transactions, and the payment of all fees and expenses related to the Transactions, and (g) payment of or reimbursement of indemnitees and reimbursement for reasonable, documented out-of-pocket costs and expenses to the Sponsor or its Affiliates in connection with services rendered to a Loan Party or pursuant to the Management Agreement; provided payment of such reimbursable amounts shall not exceed $150,000 in the aggregate at any time an Event of Default has occurred and is continuing.

11.8.      Unconditional Purchase Obligations. Not, and not permit any of the Loan Parties and their Subsidiaries to, enter into or be a party to any contract for the purchase of materials, supplies or other property or services if such contract requires that payment be made by it regardless of whether delivery is ever made of such materials, supplies or other property or services.

11.9.      Inconsistent Agreements. Not, and not permit any of the Loan Parties and their Subsidiaries to, enter into any agreement containing any provision which would (a) be violated or breached by any borrowing by Borrower hereunder or by the performance by any Loan Party of any of its Obligations hereunder or under any other Loan Document, (b) prohibit any Loan Party from granting to Administrative Agent and the Lenders, a Lien on any of its assets or (c) create or permit to exist or become effective any encumbrance or restriction on the ability of any Subsidiary to (i) pay dividends or make other distributions to Borrower or any other Subsidiary, or pay any Debt owed to Borrower or any other Subsidiary, (ii) make loans or advances to any Loan Party or (iii) transfer any of its assets or properties to any Loan Party, other than (a) customary restrictions and conditions contained in agreements relating to the sale of all or a substantial part of the assets of any Subsidiary pending such sale, provided that such restrictions and conditions apply only to the Subsidiary to be sold and such sale is permitted hereunder; (b) restrictions or conditions imposed by any agreement relating to purchase money Debt, Capital Leases and other secured Debt permitted by this Agreement if such restrictions or conditions apply only to the property or assets securing such Debt; (c) customary provisions in leases and other contracts restricting the assignment thereof; and (d) the Loan Documents.

11.10.      Business Activities; Issuance of Equity. Not, and not permit any of the Loan Parties and their Subsidiaries to, engage in any line of business other than the businesses engaged in on the Original Closing Date and businesses reasonably related or complimentary thereto. Not permit any of its Subsidiaries to, issue any Capital Securities other than (a) any Permitted

 

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Securities Issuance, and (b) any issuance of shares of Borrower’s common Capital Securities (i) to Holdings or (ii) pursuant to any employee or director option program, benefit plan or compensation program.

11.11.      Investments. Not, and not permit any of the Loan Parties or their Subsidiaries to, make or permit to exist any Investment in any other Person, except the following:

(a)        Investments by Holdings, Borrower, and/or any Loan Party in their respective Subsidiaries that are Loan Parties;

(b)        any Permitted Securities Issuance;

(c)        Investments by any Loan Party in any Subsidiary that is not a Guarantor in an aggregate amount outstanding not to exceed $1,000,000 less that amount of Debt incurred pursuant to Section 11.1(c)(v);

(d)        Investments constituting Debt permitted by Section 11.1, including without limitation intercompany loans and guarantees between Loan Parties and Hedging Agreements;

(e)        Guarantees by Holdings or any Subsidiary of operating leases or of other obligations of another Loan Party that do not constitute Debt, in each case entered into in the ordinary course of business;

(f)        Contingent Liabilities constituting Debt permitted by Section 11.1 or Liens permitted by Section 11.2 and other Contingent Liabilities in the ordinary course of business;

(g)        Cash Equivalent Investments;

(h)        Subject to Section 10.10, bank deposits in the ordinary course of business;

(i)        Investments in securities of Account Debtors received pursuant to any plan of reorganization or similar arrangement upon the bankruptcy or insolvency of such Account Debtors;

(j)        Investments comprised of loans to employees, officers and directors to purchase Capital Securities of the Loan Parties;

(k)        Investments comprised of loans and advances in the ordinary course of business to employees, officers and directors so long as the aggregate principal amount thereof at any time outstanding (determined without regard to any write-downs or write-offs of such loans and advances) shall not exceed $750,000;

(l)        extensions of trade credit in the ordinary course of business;

 

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(m)        Investments received in connection with the bankruptcy or reorganization of, or settlement of delinquent accounts and disputes with, customers and suppliers, in each case in the ordinary course of business;

(n)        intercompany loans and advances to Holdings to the extent Borrower may pay dividends to Intermediate Holdings to be distributed by Intermediate Holdings to Holdings pursuant to Section 11.4 (and in lieu of paying such dividends); provided that such intercompany loans and advances (i) shall be made for the purposes, and shall be subject to all applicable limitations set forth in, Section 11.4 and (ii) shall be unsecured.

(o)        additional Investments by Borrower and the Subsidiaries so long as the aggregate amount invested, loaned or advanced pursuant to this paragraph (determined without regard to any write downs or write offs of such investments, loans and advances) does not exceed $1,000,000 plus the Available Amount; provided that the aggregate amount of Investments in joint ventures and Subsidiaries that are not Loan Parties shall not exceed $5,400,000;

(p)        Holdings, the Borrower and each Subsidiary may acquire and hold receivables, accounts, notes receivable, chattel paper, payment intangibles and prepaid accounts owing to them, if created or acquired in the ordinary course of business and payable or dischargeable in accordance with customary trade terms;

(q)        Holdings, the Borrower or any Subsidiary may make deposits and Investments (x) in connection with Permitted Liens and/or (y) in the ordinary course of business to secure the performance of operating leases and payment of utility or similar contracts;

(r)        Holdings may make contributions to the capital of Intermediate Holdings and Intermediate Holdings may make contributions to the capital of the Borrower;

(s)        Investments consisting of securities or instruments received pursuant to a disposition of assets not prohibited by this Agreement;

(t)        Hedging Obligations incurred for bona fide hedging purposes and not for speculation in form and substance reasonably satisfactory to Administrative Agent;

(u)        Permitted Acquisitions;

(v)        Investments held by a Person acquired pursuant to a Permitted Acquisition; provided, that such Investment was not acquired by such Person in contemplation of such acquisition, merger, amalgamation, statutory division, consolidation or transfer;

(w)        Investments in prepaid expenses, negotiable instruments held for collection and lease, utility and workers compensation, performance and similar deposits entered into as a result of the operations of the business in the ordinary course of business;

(x)        Investments listed on Schedule 11.11 as of the Closing Date; and

 

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(y)        Investments consisting of acquired franchisee locations; provided (i) such locations are resold within 12 months of purchase, (ii) the aggregate amount of such Investments shall not exceed $3,000,000, (iii) on a pro forma basis, after giving effect to the consummation of the proposed acquisition, the Loan Parties shall be in compliance with the covenants set forth in Section 11.14 hereof and (iv) no Event of Default shall exist either before or after giving effect to such Investment.

Notwithstanding anything to the contrary contained in this Section 11.11, the Loan Parties may not make any Investments in any Subsidiaries that are not Loan Parties in an amount in excess of $170,000 in the aggregate for all such Investments in any Fiscal Year (including the usage of the Available Amount for any such Investment) unless such excess amounts are funded with Net Cash Proceeds of a substantially simultaneous Permitted Securities Issuance.

11.12.      Restriction of Amendments to Certain Documents. Except with the consent of the Required Lenders, not amend or otherwise modify, or waive any rights under any Related Agreement other than amendments, modifications and waivers not materially adverse to the interests of the Lenders (it being understood that any amendment, modification, or waiver increasing or expanding the payment obligations of any Loan Party will be deemed to be adverse to the interests of Lenders).

11.13.      Fiscal Year. Not, and not permit any of the Loan Parties and their Subsidiaries to change its Fiscal Year.

11.14.      Financial Covenants.

11.14.1.      Fixed Charge Coverage Ratio. Not permit the Fixed Charge Coverage Ratio as of the last day of any Computation Period to be less than 1.20:1.00.

11.14.2.      Total Debt to EBITDA Ratio. Not permit the Total Debt to EBITDA Ratio as of the last day of any Computation Period to exceed the applicable ratio set forth below for such Computation Period:

 

Computation Period Ending

 

  

Total Debt to EBITDA Ratio

 

September 30, 2018    6.00:1.00
December 31, 2018    6.00:1.00
March 31, 2019    6.00:1.00
June 30, 2019    6.00:1.00
September 30, 2019    5.50:1.00
December 31, 2019    5.50:1.00
March 31, 2020    5.00:1.00
June 30, 2020    4.50:1.00
September 30, 2020    4.50:1.00
December 31, 2020    4.50:1.00
March 31, 2021    4.00:1.00
June 30, 2021    4.00:1.00
September 30, 2021    4.00:1.00

 

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December 31, 2021    4.00:1.00
March 31, 2022    3.50:1.00
June 30, 2022    3.50:1.00
September 30, 2022    3.50:1.00
December 31, 2022    3.50:1.00
March 31, 2023    3.50:1.00
June 30, 2023    3.50:1.00

September 30, 2023 and each

Computation Period ending thereafter

   3.50:1.00

11.15.      Compliance with Laws. Borrower shall not, and shall not permit any of the Loan Parties and their Subsidiaries, to fail to comply with the laws, regulations and executive orders referred to in Sections 9.22, 9.24 and 9.25.

11.16.      New Company Owned Locations. Borrower shall not, and shall not permit any of the Loan Parties and their Subsidiaries to open more than one owned franchise location per Franchise System.

11.17.      Non-Loan Party Subsidiaries. The Borrower and each other Loan Party shall cause (or to the extent not permitted under the applicable operating agreement of such Subsidiary use good faith efforts to cause) each of its Subsidiaries that are not Loan Parties to distribute cash on the last Business Day of each month to such Loan Party an amount equal to all cash and Cash Equivalent Investments in excess of $350,000 of such non-Loan Party Subsidiary; provided that if on such testing day the non-Loan Party Subsidiaries have more than $650,000 of cash and Cash Equivalent Investments in the aggregate the Loan Parties shall cause the non-Loan Party Subsidiaries to distribute cash to the Loan Parties such that the collective aggregate balance of cash and Cash Equivalent Investments of the non-Loan Party Subsidiaries is less than $650,000.

11.18.      Canadian Defined Benefit Plans. Not permit any Loan Party to establish, maintain or contribute to any Canadian Defined Benefit Plan.

SECTION 12

EFFECTIVENESS; CONDITIONS OF LENDING, ETC.

The obligation of each Lender to make its Loans and of the Issuing Lenders to issue Letters of Credit is subject to the following conditions precedent:

12.1.      Initial Credit Extension. The obligation of the Lenders to make the Loans on the Closing Date and the obligation of the Issuing Lenders to issue their initial Letters of Credit (whichever first occurs) is, in addition to the conditions precedent specified in Section 12.2, subject to the conditions precedent that (a) all Debt to be Repaid has been (or substantially concurrently with the initial borrowing will be) paid in full, and that all agreements and instruments governing the Debt to be Repaid and that all Liens securing such Debt to be Repaid have been (or substantially concurrently with the initial borrowing will be) terminated and (b) Administrative Agent shall have received, subject to Section 10.11, all of the following, each duly executed and dated the Closing Date (or such earlier date as shall be satisfactory to Administrative Agent), in form and substance reasonably satisfactory to Administrative Agent

 

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(and the date on which all such conditions precedent have been satisfied or waived in writing by Administrative Agent and the Lenders is called the “Closing Date”):

12.1.1. Agreement, Notes and other Loan Documents. This Agreement and, to the extent requested by any Lender, a Note made payable to such Lender, and all other Loan Documents.

12.1.2. Authorization Documents. For each Loan Party, such Person’s (a) charter (or similar formation document), certified by the appropriate governmental authority; (b) good standing certificates in its state of incorporation (or formation) and in each other state in which a Loan Party is qualified to do business and in which failure to be so qualified would result in a Material Adverse Effect; (c) bylaws (or similar governing document); (d) resolutions of its board of directors (or similar governing body) approving and authorizing such Person’s execution, delivery and performance of the Loan Documents to which it is party and the transactions contemplated thereby; and (e) signature and incumbency certificates of its officers executing any of the Loan Documents, all certified by its secretary or an assistant secretary (or similar officer) as being in full force and effect without modification.

12.1.3. Letter of Direction. A letter of direction containing funds flow information with respect to the proceeds of the Loans on the Closing Date.

12.1.4. Reaffirmation Agreement. The Reaffirmation Agreement executed by each Loan Party.

12.1.5. Collateral Access Agreements.

(a)        In the case of any leased real property that is the chief executive office of the Borrower or where Collateral in an amount in excess of $200,000 is located, Borrower shall use commercially reasonable efforts to obtain a Collateral Access Agreement from the landlord of such property waiving any landlord’s Lien in respect of personal property kept at the premises subject to such lease.

(b)        Borrower shall use commercially reasonable efforts to obtain a Collateral Access Agreement with respect to each bailee with which Borrower or any Subsidiary keeps Inventory or other assets that are required under the Guaranty and Collateral Agreement to be delivered on the Closing Date.

12.1.6. Opinions of Counsel. Opinions of counsel from Buchalter and local counsel (excluding Canada) executed as of the Closing Date, in form and substance reasonably satisfactory to Administrative Agent.

12.1.7. Insurance. Evidence of the existence of insurance required to be maintained pursuant to Section 10.3(b), together with evidence that Administrative Agent has been named as a lender’s loss payee and an additional insured, as appropriate, under all such insurance policies.

12.1.8. Related Transactions.

 

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(a)        Administrative Agent has received copies of the Related Agreements certified by the secretary or assistant secretary (or similar officer) of Borrower Representative as being true, accurate, and complete.

(b)        Administrative Agent has received evidence, reasonably satisfactory to Administrative Agent, that Company has completed, or concurrently with the initial credit extension hereunder will complete, the Related Transactions in accordance with the terms of the Related Agreements (without any amendment thereto or waiver thereunder unless consented to by the Lenders).

(c)        Administrative Agent has received the Insurance Assignments executed by each Loan Party thereto.

12.1.9. Payment of Fees. Evidence of payment by Borrower of all accrued and unpaid fees, costs and expenses to the extent then due and payable on the Closing Date (including, without limitation, fees under the Agent Fee Letter), together with all reasonable Attorney Costs of Administrative Agent to the extent invoiced prior to the Closing Date, plus such additional amounts of Attorney Costs as shall constitute Administrative Agent’s reasonable estimate of Attorney Costs incurred or to be incurred by Administrative Agent through the closing proceedings (provided that such estimate shall not thereafter preclude final settling of accounts between Borrower and Administrative Agent).

12.1.10. Solvency Certificate. A Solvency Certificate executed by a Senior Officer of Borrower.

12.1.11. Pro Forma. A consolidated pro forma balance sheet of Borrower as at September 30, 2018, adjusted to give effect to the Related Transactions and the financings contemplated hereby as if such transactions had occurred on such date, consistent in all material respects with the sources and uses of cash as previously described to the Lenders and the forecasts previously provided to the Lenders.

12.1.12. Financial Condition. Administrative Agent has completed a satisfactory examination of the financial condition of the Loan Parties, including, without limitation, the following: (a) review of the books (including historical, current, and interim financial statements), records, and assets of the Loan Parties; (b) review of all financial projections for the next five Fiscal Years; (c) satisfactory verification of business and competitive analysis, including, without limitation, site visits, one or more meetings with the Loan Parties’ management, examining market studies and existing industry intelligence provided by the Loan Parties, and conducting independent customer calls; and (d) receipt of a satisfactory review, conducted by a firm acceptable to Administrative Agent, of (i) the books, records, and Collateral of the Loan Parties (including historical cash flow), (ii) a quality-of-earnings report, (iii) trailing 12-month EBITDA, and (iv) EBITDA adjustments as conducted by PwC.

12.1.13. Search Results; Lien Terminations. Copies of Uniform Commercial Code and PPSA search reports dated a date reasonably near to the Closing Date, listing all effective financing statements which name any Loan Party (under their present names and any previous names) as debtors, together with (a) copies of such financing statements, (b) payoff

 

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letters evidencing repayment in full of all Debt to be Repaid, the termination of all agreements relating thereto and the release of all Liens granted in connection therewith, with Uniform Commercial Code, PPSA or other appropriate termination statements and documents effective to evidence the foregoing (other than Liens permitted by Section 11.2) and (c) such other Uniform Commercial Code or PPSA termination statements as Administrative Agent may reasonably request.

12.1.14. Filings, Registrations and Recordings. Administrative Agent shall have received each document (including Uniform Commercial Code and PPSA financing statements) required by the Collateral Documents or under law or reasonably requested by Administrative Agent to be filed, registered or recorded in order to create in favor of Administrative Agent, for the benefit of the Lenders, a perfected Lien on the collateral described therein (but only to the extent that perfection may be achieved by such filing), prior to any other Liens (subject only to Liens permitted pursuant to Section 11.2), in proper form for filing, registration or recording.

12.1.15. Closing Certificate, Consents and Permits. A certificate executed by an officer of Borrower Representative on behalf of Borrower certifying (a) the matters set forth in Section 12.2.1 as of the Closing Date and (b) the repayment of the Debt to be Repaid.

12.1.16. No Material Adverse Change. There shall not have occurred since December 31, 2017, any developments or events which individually or in the aggregate with other such circumstances have had or could reasonably be expected to have a Material Adverse Effect.

12.1.17. Investment Documents. The Administrative Agent shall have received confirmation of ownership and capital structure of the Loan Parties and be satisfied with the constituent documents of the Loan Parties and related investment agreements.

12.1.18. Financial Tests. Administrative Agent shall have received evidence satisfactory to it that (a) Borrower shall have a trailing twelve (12) month EBITDA of at least $25,000,000 (with at least $9,000,000 attributable to Pure Barre) as of September 30, 2018 on a pro forma basis after giving effect to (i) the funding of the Loans on the Closing Date as provided hereunder and the use of proceeds thereof, including the payment of all fees, costs and expenses as set forth above, and (ii) year-end and other adjustments reasonably satisfactory to the Administrative Agent, in each case, as set forth in the financial accounting diligence report prepared by PwC and delivered to the Administrative Agent prior to the Closing Date, (b) Borrower shall have a Total Debt to EBITDA Ratio as of September 30, 2018 on a pro forma basis after giving effect to the funding of the initial Loans as provided hereunder of not more than 5.25:1.00, (c) an accounting firm acceptable to Administrative Agent has verified the foregoing clause (a) as provided in the quality of earnings report dated as of June 2018, (d) minimum implied purchase price of Pure Barre of at least 8.5x, and (e) the Loan Parties shall have sufficient liquidity to operate their business plan (assuming that all accounts payable, taxes and other obligations are paid current in accordance with the Loan Parties’ historical business practices) after giving effect to the funding of the initial Loans as provided hereunder and the use of the proceeds thereof, including the payment of all fees, costs and expenses as set forth above.

 

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12.1.19. Diligence. Administrative Agent has received and is satisfied with all due diligence materials requested by Administrative Agent.

12.1.20. Background Checks. Administrative Agent has reviewed and is satisfied with background checks on certain key management and shareholders of the Loan Parties.

12.1.21. Approvals. Administrative Agent has received approval of its executive credit committee.

12.1.22. Non-Compete. Key management and certain shareholders of the Loan Parties identified by Administrative Agent have entered into employment or other agreements containing customary provisions, including, without limitation, non-compete, non-solicitation, and confidentiality, all on terms satisfactory to Administrative Agent.

12.1.23. Maximum Revolving Outstandings. After giving effect to the initial Loans on the Closing Date, there shall not be any Revolving Outstandings.

12.1.24. Other. Administrative Agent has received all other documents reasonably requested by Administrative Agent or any Lender

For purposes of determining compliance with the conditions specified in this Section 12.1, each Lender that has signed this Agreement and funded Loans hereunder shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to a Lender.

12.2. Conditions. The obligation (a) of each Lender to make each Loan and (b) of the Issuing Lenders to issue each Letter of Credit is subject to the following further conditions precedent that:

12.2.1. Compliance with Warranties, No Default, etc. Both before and after giving effect to any borrowing and the issuance of any Letter of Credit, the following statements shall be true and correct:

(a)        the representations and warranties of each Loan Party set forth in this Agreement and the other Loan Documents shall be true and correct in all material respects with the same effect as if then made without duplication of any “material” or “Material Adverse Effect” qualifier (except to the extent stated to relate to a specific earlier date, in which case such representations and warranties shall be true and correct in all material respects (without duplication of any “material” or “Material Adverse Effect” qualifier) as of such earlier date);

(b)        no Default or Event of Default shall have then occurred and be continuing; and

(c)        the Loan Parties shall be in compliance on a pro forma basis with the financial covenants set forth in Section 11.14 computed using the covenant levels and financial information for the most recently ended quarter for which information is available; in addition to the foregoing.

 

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12.2.2. Confirmatory Certificate. If requested by Administrative Agent or any Lender, Administrative Agent shall have received a certificate dated the date of such requested Loan or Letter of Credit and signed by a duly authorized representative of Borrower Representative as to the matters set out in Section 12.2.1 (it being understood that each request by Borrower for the making of a Loan or the issuance of a Letter of Credit shall be deemed to constitute a representation and warranty by Borrower that the conditions precedent set forth in Section 12.2.1 will be satisfied at the time of the making of such Loan or the issuance of such Letter of Credit).

SECTION 13

EVENTS OF DEFAULT AND THEIR EFFECT.

13.1.     Events of Default. Each of the following shall constitute an Event of Default under this Agreement:

13.1.1. Non-Payment of the Loans, etc. Default in the payment when due of the principal of any Loan; or default, and continuance thereof for five Business Days, in the payment when due of any interest, fee, reimbursement obligation with respect to any Letter of Credit or any other amount payable by Borrower hereunder or under any other Loan Document.

13.1.2. Non-Payment of Other Debt. Any default shall occur under the terms applicable to any Debt of any Loan Party in an aggregate amount (for all such Debt so affected and including undrawn committed or available amounts and amounts owing to all creditors under any combined or syndicated credit arrangement) exceeding $1,000,000 and such default shall (a) consist of the failure to pay such Debt when due, whether by acceleration or otherwise, after giving effect to all applicable grace and notice periods, or (b) accelerate the maturity of such Debt or permit the holder or holders thereof, or any trustee or agent for such holder or holders, to cause such Debt to become due and payable (or require any Loan Party to purchase or redeem such Debt or post cash collateral in respect thereof) prior to its expressed maturity after giving effect to all applicable grace and notice periods; provided that this clause (b) shall not apply to secured Debt that becomes due as a result of a voluntary sale or transfer of the property or assets securing such Debt.

13.1.3. Departure of Keyman. Either Anthony Geisler or Mark Grabowski (each, a “Keyman”) fails to be employed by Borrower or an Affiliate of Borrower in his current capacity and Borrower fails to replace such Keyman with a replacement acceptable to Administrative Agent in its commercially reasonable judgment as exercised by a commercial lender within the 200 day period following the departure of such Keyman.

13.1.4. Bankruptcy, Insolvency, etc. Any Loan Party becomes insolvent or generally fails to pay, or admits in writing its inability to pay, debts as they become due; or any Loan Party applies for, consents to, or acquiesces in the appointment of a trustee, monitor, receiver or other custodian for such Loan Party or any property thereof, or makes a general assignment for the benefit of creditors; or, in the absence of such application, consent or acquiescence, a trustee, receiver or other custodian is appointed for any Loan Party or for a substantial part of the property of any thereof and is not discharged within 60 days; or any bankruptcy, reorganization, debt arrangement, or other case or proceeding under any bankruptcy

 

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or insolvency law, or any dissolution or liquidation proceeding, is commenced in respect of any Loan Party, and if such case or proceeding is not commenced by such Loan Party, it is consented to or acquiesced in by such Loan Party, or remains for 60 days undismissed; or any Loan Party takes any action to authorize, or in furtherance of, any of the foregoing.

13.1.5. Non-Compliance with Loan Documents. (a) Failure by any Loan Party to comply with or to perform (a) any covenant set forth in Sections 10.1.1, 10.1.2, 10.1.3, and continuance of such failure described in this clause (a) for 10 Business Days (or if any Loan Party has previously failed to comply with or perform any such covenant during the preceding 12 month period or twice during the term of this Agreement, for 5 Business Days), (b) any covenant set forth in Sections 10.1.4(a), 10.2, 10.3(b), 10.5(a), 10.6, 10.11, 10.12 or Section 11 (subject to the provisions of Section 13.4); or (c) any other provision of this Agreement or any other Loan Document (and not constituting an Event of Default under any other provision of this Section 13) and continuance of such failure described in this clause (c) for 30 days.

13.1.6. Representations; Warranties. Any representation or warranty made by any Loan Party herein or any other Loan Document is breached or is false or misleading in any material respect, or any schedule, certificate, financial statement, report, notice or other writing furnished by any Loan Party to Administrative Agent or any Lender in connection herewith is false or misleading in any material respect on the date as of which the facts therein set forth are stated or certified.

13.1.7. Pension Plans. (a) Any Person institutes steps to terminate a Pension Plan if as a result of such termination a Material Adverse Effect would result; (b) a contribution failure occurs with respect to any Pension Plan that gives rise to a Lien on the assets of Borrower under Section 302(f) of ERISA; (c) the Unfunded Liability exceeds twenty percent of the Total Plan Liability and a Material Adverse Effect results, or (d) there shall occur any withdrawal or partial withdrawal from a Multiemployer Pension Plan and the withdrawal liability (without unaccrued interest) results in a Material Adverse Effect.

13.1.8. Judgments. Final judgments which exceed an aggregate of $1,000,000 (which are not covered by insurance as to which the insurance company has been notified of such judgment and has acknowledged coverage thereof), shall be rendered against any Loan Party and shall not have been paid, discharged or vacated or had execution thereof stayed pending appeal within 30 days after entry or filing of such judgments (or such other longer time period as permitted by the judgment).

13.1.9. Invalidity of Loan Documents, etc. Any Loan Document shall cease to be in full force and effect other than in accordance with its terms; or any Loan Party (or any Person by, through or on behalf of any Loan Party) shall contest in any manner the validity, binding nature or enforceability of any Loan Document.

13.1.10. Invalidity of Subordination Provisions, etc. Any subordination provision in any document or instrument governing any subordination provision in any subordination agreement that relates to any subordinated debt, or any subordination provision in any guaranty by any Loan Party of any subordinated debt, shall cease to be in full force and effect (other than in accordance with its terms), or any Loan Party by, through or on behalf of

 

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any Loan Party shall contest in any manner the validity, binding nature or enforceability of any such provision (other than in accordance with its terms).

13.1.11. Change of Control. A Change of Control shall occur.

13.2. Effect of Event of Default. If any Event of Default described in Section 13.1.4 shall occur in respect of Borrower, the Commitments shall immediately terminate and the Loans and all other Obligations hereunder shall become immediately due and payable and Borrower shall become immediately obligated to Cash Collateralize all Letters of Credit, all without presentment, demand, protest or notice of any kind; and, if any other Event of Default shall occur and be continuing, Administrative Agent may (and, upon the written request of the Required Lenders shall) declare, in a written notice to Borrower Representative, the Commitments to be terminated in whole or in part and/or declare all or any part of the Loans and all other Obligations hereunder to be due and payable and/or demand that Borrower immediately Cash Collateralize all or any Letters of Credit, whereupon the Commitments shall immediately terminate (or be reduced, as applicable) and/or the Loans and other Obligations hereunder shall become immediately due and payable (in whole or in part, as applicable) and/or Borrower shall immediately become obligated to Cash Collateralize the Letters of Credit (all or any, as applicable), all without presentment, demand, protest or notice of any kind (other than as expressly provided for above in this sentence). Administrative Agent shall promptly advise Borrower of any such declaration, but failure to do so shall not impair the effect of such declaration. Any cash collateral delivered hereunder shall be held by Administrative Agent (without liability for interest thereon) and applied to the Obligations arising in connection with any drawing under a Letter of Credit. After the expiration or termination of all Letters of Credit, such cash collateral shall be applied by Administrative Agent to any remaining Obligations hereunder and any excess shall be delivered to Borrower or as a court of competent jurisdiction may elect.

13.3. Credit Bidding. The Loan Parties and the Lenders hereby irrevocably authorize (and by entering into a Bank Product Agreement, each Bank Product provider shall be deemed to authorize) Administrative Agent, based upon the instruction of the Required Lenders, to Credit Bid and purchase (either directly or through one or more acquisition vehicles) all or any portion of the Collateral (and the Loan Parties shall approve Administrative Agent as a qualified bidder and such Credit Bid as qualified bid) at any sale thereof conducted by Administrative Agent, based upon the instruction of the Required Lenders, under any provisions of the Uniform Commercial Code, as part of any sale or investor solicitation process conducted by any Loan Party, any interim receiver, receiver, receiver and manager, administrative receiver, trustee, agent or other Person pursuant or under any insolvency laws; provided, however, that (i) the Required Lenders may not direct Administrative Agent in any manner that does not treat each of the Lenders equally, without preference or discrimination, in respect of consideration received as a result of the Credit Bid, (ii) the acquisition documents shall be commercially reasonable and contain customary protections for minority holders, such as, among other things, anti-dilution and tag-along rights, (iii) the exchanged debt or equity securities must be freely transferable, without restriction (subject to applicable securities laws) and (iv) reasonable efforts shall be made to structure the acquisition in a manner that causes the governance documents pertaining thereto to not impose any obligations or liabilities upon the Lenders individually (such as indemnification obligations).

 

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For purposes of the preceding sentence, the term “Credit Bid” shall mean, an offer submitted by Administrative Agent (on behalf of the Lender group), based upon the instruction of the Required Lenders, to acquire the property of any Loan Party or any portion thereof in exchange for and in full and final satisfaction of all or a portion (as determined by Administrative Agent, based upon the instruction of the Required Lenders) of the claims and Obligations under this Agreement and other Loan Documents.

13.4.    Right to Cure Financial Covenant Breach. Notwithstanding anything to the contrary contained in this Section 13, for purposes of determining whether the Loan Parties have failed to comply with any covenant contained in Section 11.14, Borrower shall have the right (the “Cure Right”) to increase EBITDA for any Fiscal Quarter by the amount of Net Cash Proceeds (the “Cure Amount”) actually received by Holdings from the Sponsor and any other owners of the Capital Securities of Holdings (by way of common equity contributions or in return for the issuance of Capital Securities) during or after the end of such Fiscal Quarter and on or prior to the date that is ten Business Days after the date on which financial statements with respect to such Fiscal Quarter are required to be delivered pursuant to Section 10.1.2 (the “Cure Date”), in each case so long as, and to the extent that, such amounts are then contributed by Holdings in cash to the common equity of Intermediate Holdings and then contributed by Intermediate Holdings to Borrower, and that, on or prior to the Cure Date, Borrower shall inform the Administrative Agent of the Cure Amount, whereupon the covenants contained in Section 11.14 shall be recalculated giving effect to the following pro forma adjustments:

(i)        EBITDA shall be increased, solely for the purpose of determining the existence of a Default or Event of Default under the covenants contained in Section 11.14 for the Computation Period for which the Cure Right was exercised with the Cure Amount applied to the Fiscal Quarter for which the Cure Right was exercised (such Fiscal Quarter, an “Increased Fiscal Quarter”) and for any subsequent Computation Period which includes such Increased Fiscal Quarter by the Cure Amount; it being understood that for purposes of calculating the Total Debt to EBITDA Ratio as of the end of the Fiscal Quarter for which the Cure Right was exercised, Total Debt shall not be reduced by the amount of any prepayment or repayment of Debt made with the Cure Amount; and

(ii)        if, after giving effect to the foregoing recalculations, Borrower shall then be in compliance with the requirements of all covenants contained in Section 11.14, Borrower shall be deemed to have satisfied the requirements of the financial performance covenants contained in Section 11.14 as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date and the applicable breach or default that had occurred shall be deemed cured for purposes of this Agreement.

Notwithstanding anything herein to the contrary, (a) the Cure Right may not be exercised in consecutive Fiscal Quarters, (b) during the term of this Agreement there shall be no more than five Fiscal Quarters in which a Cure Right is exercised, (c) the Cure Amount allowed shall be, at the option of the Borrower, the greater of (x) $250,000 or (y) the amount required to cause Borrower to be in compliance with the covenants contained in Section 11.14, (d) the amount of any individual Cure Amount shall not exceed 15% of the trailing twelve month EBITDA for the

 

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most recently ended month for which financial statements have been delivered and the aggregate amount of all Cure Amounts during the term of this Agreement shall not exceed $6,500,000, and (e) Borrower shall apply all Cure Amounts to the prepayment of outstanding Term Loans in accordance with Section 6.2.2(a)(vi); provided that until the day that is ten Business Days after the day on which financial statements are required to be delivered for the period ending on the last day of the applicable Fiscal Quarter, notwithstanding any other provision of this Agreement or any other Loan Document, no Event of Default resulting solely from a breach of the covenants set forth in Section 11.14 shall be deemed to have occurred (other than for purposes of Section 12.2) and neither the Administrative Agent nor any Lender shall have any right to declare all or any portion of any one or more of the Commitments of any Lender to make Loans or of the L/C Issuer to Issue Letters of Credit to be suspended or terminated, declare all or any portion of the unpaid principal amount of any outstanding Loans, interest accrued and unpaid thereon, and all amounts owing or payable hereunder or under any other Loan Document to be due and payable and/or exercise any other rights and remedies available under the Loan Documents or applicable law (including, without limitation, any right to foreclose on or take possession of Collateral or to increase the interest rate applicable to each Loan or other Obligation hereunder or the rate applicable to each Letter of Credit) in each case prior to the Cure Date solely on the basis of an allegation of an Event of Default having occurred and being continuing under Section 13.1.5 due to failure by the Loan Parties to comply with any financial covenant set forth in Section 11.14 (for avoidance of doubt, none of Administrative Agent, any Issuing Lender nor any Lender shall be required to advance any Loans and/or issue any Letters of Credit during such period).

SECTION 14

ADMINISTRATIVE AGENT.

14.1.    Appointment and Authorization. Each Lender hereby irrevocably (subject to Section 14.10) appoints, designates and authorizes Administrative Agent to take such action on its behalf under the provisions of this Agreement and each other Loan Document and to exercise such powers and perform such duties as are expressly delegated to it by the terms of this Agreement or any other Loan Document, together with such powers as are reasonably incidental thereto. Notwithstanding any provision to the contrary contained elsewhere in this Agreement or in any other Loan Document, Administrative Agent shall not have any duty or responsibility except those expressly set forth herein, nor shall Administrative Agent have or be deemed to have any fiduciary relationship with any Lender or participant, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other Loan Document or otherwise exist against Administrative Agent. Without limiting the generality of the foregoing sentence, the use of the term “agent” herein and in other Loan Documents with reference to Administrative Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable law. Instead, such term is used merely as a matter of market custom, and is intended to create or reflect only an administrative relationship between independent contracting parties.

14.2.    Issuing Lenders. The Issuing Lenders shall act on behalf of the Lenders (according to their Pro Rata Shares) with respect to any Letters of Credit issued by them and the documents associated therewith. The Issuing Lenders shall have all of the benefits and immunities (a) provided to Administrative Agent in this Section 14 with respect to any acts taken or omissions suffered by the Issuing Lenders in connection with Letters of Credit issued by them

 

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or proposed to be issued by them and the applications and agreements for letters of credit pertaining to such Letters of Credit as fully as if the term “Administrative Agent”, as used in this Section 14, included the Issuing Lenders with respect to such acts or omissions and (b) as additionally provided in this Agreement with respect to the Issuing Lenders.

14.3.    Delegation of Duties. Administrative Agent may execute any of its duties under this Agreement or any other Loan Document by or through agents, employees or attorneys-in-fact and shall be entitled to advice of counsel and other consultants or experts concerning all matters pertaining to such duties. Administrative Agent shall not be responsible for the negligence or misconduct of any agent or attorney-in-fact that it selects in the absence of gross negligence or willful misconduct.

14.4.    Exculpation of Administrative Agent. None of Administrative Agent nor any of its directors, officers, employees or agents shall (a) be liable for any action taken or omitted to be taken by any of them under or in connection with this Agreement or any other Loan Document or the transactions contemplated hereby (except to the extent resulting from its own gross negligence or willful misconduct in connection with its duties expressly set forth herein as determined by a final, nonappealable judgment by a court of competent jurisdiction), or (b) be responsible in any manner to any Lender or participant for any recital, statement, representation or warranty made by any Loan Party or Affiliate of Borrower, or any officer thereof, contained in this Agreement or in any other Loan Document, or in any certificate, report, statement or other document referred to or provided for in, or received by Administrative Agent under or in connection with, this Agreement or any other Loan Document, or the validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Loan Document (or the creation, perfection or priority of any Lien or security interest therein), or for any failure of Borrower or any other party to any Loan Document to perform its Obligations hereunder or thereunder. Administrative Agent shall not be under any obligation to any Lender to ascertain or to inquire as to the observance or performance of any of the agreements contained in, or conditions of, this Agreement or any other Loan Document, or to inspect the properties, books or records of Borrower or any of Borrower’s Subsidiaries or Affiliates.

14.5.    Reliance by Administrative Agent. Administrative Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing, communication, signature, resolution, representation, notice, consent, certificate, electronic mail message, affidavit, letter, telegram, facsimile, telex or telephone message, statement or other document or conversation believed by it to be genuine and correct and to have been signed, sent or made by the proper Person or Persons, and upon advice and statements of legal counsel (including counsel to Borrower), independent accountants and other experts selected by Administrative Agent. Administrative Agent shall be fully justified in failing or refusing to take any action under this Agreement or any other Loan Document unless it shall first receive such advice or concurrence of the Required Lenders as it deems appropriate and, if it so requests, confirmation from the Lenders of their obligation to indemnify Administrative Agent against any and all liability and expense which may be incurred by it by reason of taking or continuing to take any such action. Administrative Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement or any other Loan Document in accordance with a request or consent of the Required Lenders and such request and any action taken or failure to act pursuant thereto shall be binding upon each Lender. For purposes of determining compliance with the conditions specified in

 

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Section 12, each Lender that has signed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless Administrative Agent shall have received written notice from such Lender prior to the proposed Closing Date specifying its objection thereto.

14.6.    Notice of Default. Administrative Agent shall not be deemed to have knowledge or notice of the occurrence of any Event of Default or Default except with respect to defaults in the payment of principal, interest and fees required to be paid to Administrative Agent for the account of the Lenders, unless Administrative Agent shall have received written notice from a Lender or Borrower referring to this Agreement, describing such Event of Default or Default and stating that such notice is a “notice of default”. Administrative Agent will notify the Lenders of its receipt of any such notice. Administrative Agent shall take such action with respect to such Event of Default or Default as may be requested by the Required Lenders in accordance with Section 13; provided that unless and until Administrative Agent has received any such request, Administrative Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Event of Default or Default as it shall deem advisable or in the best interest of the Lenders.

14.7.    Credit Decision. Each Lender acknowledges that Administrative Agent has not made any representation or warranty to it, and that no act by Administrative Agent hereafter taken, including any consent and acceptance of any assignment or review of the affairs of the Loan Parties, shall be deemed to constitute any representation or warranty by Administrative Agent to any Lender as to any matter, including whether Administrative Agent has disclosed material information in its possession. Each Lender represents to Administrative Agent that it has, independently and without reliance upon Administrative Agent and based on such documents and information as it has deemed appropriate, made its own appraisal of an investigation into the business, prospects, operations, property, financial and other condition and creditworthiness of the Loan Parties, and made its own decision to enter into this Agreement and to extend credit to Borrower hereunder. Each Lender also represents that it will, independently and without reliance upon Administrative Agent and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit analysis, appraisals and decisions in taking or not taking action under this Agreement and the other Loan Documents, and to make such investigations as it deems necessary to inform itself as to the business, prospects, operations, property, financial and other condition and creditworthiness of Borrower. Except for notices, reports and other documents expressly herein required to be furnished to the Lenders by Administrative Agent, Administrative Agent shall not have any duty or responsibility to provide any Lender with any credit or other information concerning the business, prospects, operations, property, financial or other condition or creditworthiness of Borrower which may come into the possession of Administrative Agent.

14.8.    Indemnification. Whether or not the transactions contemplated hereby are consummated, each Lender shall indemnify upon demand Administrative Agent and its directors, officers, employees and agents (to the extent not reimbursed by or on behalf of Borrower and without limiting the obligation of Borrower to do so), according to its applicable Pro Rata Share, from and against any and all Indemnified Liabilities (as hereinafter defined); provided that no Lender shall be liable for any payment to any such Person of any portion of the Indemnified

 

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Liabilities to the extent determined by a final, nonappealable judgment by a court of competent jurisdiction to have resulted from the applicable Person’s own gross negligence or willful misconduct. No action taken in accordance with the directions of the Required Lenders shall be deemed to constitute gross negligence or willful misconduct for purposes of this Section. Without limitation of the foregoing, each Lender shall reimburse Administrative Agent upon demand for its ratable share of any costs or out-of-pocket expenses (including Attorney Costs and Taxes) incurred by Administrative Agent in connection with the preparation, execution, delivery, administration, modification, amendment or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this Agreement, any other Loan Document, or any document contemplated by or referred to herein, to the extent that Administrative Agent is not reimbursed for such expenses by or on behalf of Borrower. The undertaking in this Section shall survive repayment of the Loans, cancellation of the Notes, expiration or termination of the Letters of Credit, any foreclosure under, or modification, release or discharge of, any or all of the Collateral Documents, termination of this Agreement and the resignation or replacement of Administrative Agent.

14.9.    Administrative Agent in Individual Capacity. Monroe Capital and its Affiliates may make loans to, issue letters of credit for the account of, accept deposits from, acquire Capital Securities in and generally engage in any kind of banking, trust, financial advisory, underwriting or other business with the Loan Parties and Affiliates as though Monroe Capital were not Administrative Agent hereunder and without notice to or consent of any Lender. Each Lender acknowledges that, pursuant to such activities, Monroe Capital or its Affiliates may receive information regarding Borrower or its Affiliates (including information that may be subject to confidentiality obligations in favor of Borrower or such Affiliate) and acknowledges that Administrative Agent shall be under no obligation to provide such information to them. With respect to their Loans (if any), Monroe Capital and its Affiliates shall have the same rights and powers under this Agreement as any other Lender and may exercise the same as though Monroe Capital were not Administrative Agent, and the terms “Lender” and “Lenders” include Monroe Capital and its Affiliates, to the extent applicable, in their individual capacities.

14.10.    Successor Administrative Agent. Administrative Agent may resign as Administrative Agent upon 30 days’ notice to the Lenders. If Administrative Agent resigns under this Agreement, the Required Lenders shall, with (so long as no Event of Default exists) the consent of Borrower (which shall not be unreasonably withheld or delayed), appoint from among the Lenders a successor agent for the Lenders. If no successor agent is appointed prior to the effective date of the resignation of Administrative Agent, Administrative Agent may appoint, after consulting with the Lenders and Borrower, a successor agent from among the Lenders. Upon the acceptance of its appointment as successor agent hereunder, such successor agent shall succeed to all the rights, powers and duties of the retiring Administrative Agent and the term “Administrative Agent” shall mean such successor agent, and the retiring Administrative Agent’s appointment, powers and duties as Administrative Agent shall be terminated. After any retiring Administrative Agent’s resignation hereunder as Administrative Agent, the provisions of this Section 14 and Sections 15.5 and 15.17 shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Administrative Agent under this Agreement. If no successor agent has accepted appointment as Administrative Agent by the date which is 30 days following a retiring Administrative Agent’s notice of resignation, the retiring

 

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Administrative Agent’s resignation shall nevertheless thereupon become effective and the Lenders shall perform all of the duties of Administrative Agent hereunder until such time, if any, as the Required Lenders appoint a successor agent as provided for above.

14.11.    Collateral Matters. Each Lender authorizes and directs Administrative Agent to enter into the other Loan Documents for the benefit of Lenders. Each Lender hereby agrees that, except as otherwise set forth herein, any action taken by Administrative Agent or Required Lenders in accordance with the provisions of this Agreement or the other Loan Documents, and the exercise by the Administrative Agent or Required Lenders of the powers set forth herein or therein, together with such other powers as are reasonably incidental thereto, shall be authorized and binding upon all Lenders. Administrative Agent is hereby authorized on behalf of all Lenders, without the necessity of any notice to or further consent from any Lender to take any action with respect to any Collateral or Loan Documents which may be necessary to perfect and maintain perfected (with respect to intellectual property, if and to the extent contemplated under the Guaranty and Collateral Agreement) the Liens upon the Collateral granted pursuant to this Agreement and the other Loan Documents. The Lenders irrevocably authorize Administrative Agent, at its option and in its discretion, (a) to release any Lien granted to or held by Administrative Agent under any Collateral Document (i) upon termination of the Commitments and payment in full of all Loans and all other outstanding obligations of Borrower hereunder and the expiration or termination or Cash Collateralization of all Letters of Credit; (ii) constituting property sold or to be sold or disposed of as part of or in connection with any disposition permitted hereunder (including the release of any Guarantor); or (iii) subject to Section 15.1, if approved, authorized or ratified in writing by the Required Lenders; or (b) to subordinate its interest in any Collateral to any holder of a Lien on such Collateral which is permitted by Section 11.2(d)(i) or (d)(iii) (it being understood that Administrative Agent may conclusively rely on a certificate from Borrower in determining whether the Debt secured by any such Lien is permitted by Section 11.1(b)). Upon request by Administrative Agent at any time, the Lenders will confirm in writing Administrative Agent’s authority to release, or subordinate its interest in, particular types or items of Collateral pursuant to this Section 14.11.

14.12.    Restriction on Actions by Lenders. Each Lender agrees that it shall not, without the express written consent of Administrative Agent, and shall, upon the written request of Administrative Agent (to the extent it is lawfully entitled to do so), set off against the Obligations, any amounts owing by such Lender to a Loan Party or any deposit accounts of any Loan Party now or hereafter maintained with such Lender that are not Excluded Accounts. Each of the Lenders further agrees that it shall not, unless specifically requested to do so in writing by Administrative Agent, take or cause to be taken, any action, including the commencement of any legal or equitable proceedings to foreclose any loan or otherwise enforce any security interest in any of the Collateral or to enforce all or any part of this Agreement or the other Loan Documents. All enforcement actions under this Agreement and the other Loan Documents against the Loan Parties or any third party with respect to the Obligations or the Collateral may only be taken by Administrative Agent (at the direction of the Required Lenders or as otherwise permitted in this Agreement) or by its agents at the direction of Administrative Agent.

14.13.    Administrative Agent May File Proofs of Claim. In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to any Loan Party, Administrative Agent

 

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(irrespective of whether the principal of any Loan shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether Administrative Agent shall have made any demand on Borrower) shall be entitled and empowered, by intervention in such proceeding or otherwise:

(a)    to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans, and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders and Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders and Administrative Agent and their respective agents and counsel and all other amounts due the Lenders and Administrative Agent under Sections 5, 15.5 and 15.17) allowed in such judicial proceedings; and

(b)    to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender to make such payments to Administrative Agent and, in the event that Administrative Agent shall consent to the making of such payments directly to the Lenders, to pay to Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of Administrative Agent and its agents and counsel, and any other amounts due Administrative Agent under Sections 5, 15.5 and 15.17.

Nothing contained herein shall be deemed to authorize Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or to authorize Administrative Agent to vote in respect of the claim of any Lender in any such proceeding.

14.14.    Other Agents; Arrangers and Managers. None of the Lenders or other Persons identified on the facing page or signature pages of this Agreement as a “syndication agent,” “documentation agent,” “co-agent,” “book manager,” “lead manager,” “arranger,” “lead arranger” or “co-arranger”, if any, shall have any right, power, obligation, liability, responsibility or duty under this Agreement other than, in the case of such Lenders, those applicable to all Lenders as such. Without limiting the foregoing, none of the Lenders or other Persons so identified shall have or be deemed to have any fiduciary relationship with any Lender. Each Lender acknowledges that it has not relied, and will not rely, on any of the Lenders or other Persons so identified in deciding to enter into this Agreement or in taking or not taking action hereunder.

14.15.    Protective Advances. Administrative Agent may, from time to time at any time that an Event of Default has occurred and is continuing, make all disbursements and advances (“Protective Advances”) that Administrative Agent, in its sole discretion, deems necessary or desirable to preserve, protect, prepare for sale or lease or dispose of the Collateral or any portion thereof, to enhance the likelihood or maximize the amount of repayment by the Loan Parties of the Loans and other Obligations or to pay any other amount chargeable to the Loan Parties

 

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pursuant to the terms of this Agreement and the other Loan Documents, including, without limitation, costs, fees and expenses as described in Section 15.5. Protective Advances are repayable on demand and will be secured by the Collateral and bear interest at a rate per annum equal to the rate then applicable to Base Rate Loans. The maximum aggregate amount of Protective Advances that Administrative Agent may make is $5,000,000. Protective Advances constitute Obligations under this Agreement and may be charged to the Loan Account in accordance with Section 7.1.2. No Protective Advance made by Administrative Agent and charged to the Loan Account will be deemed to constitute a Loan and no Lender will have any obligation to fund any amount to Administrative Agent as a result thereof. The Administrative Agent shall notify each Lender and the Borrower Representative in writing of each Protective Advance made by Administrative Agent, which notice must include a description of the purpose of that Protective Advance.

SECTION 15

GENERAL.

15.1.    Waiver; Amendments.

15.1.1. No delay on the part of Administrative Agent or any Lender in the exercise of any right, power or remedy shall operate as a waiver thereof, nor shall any single or partial exercise by any of them of any right, power or remedy preclude other or further exercise thereof, or the exercise of any other right, power or remedy. No amendment, modification or waiver of, or consent with respect to, any provision of this Agreement or the other Loan Documents shall in any event be effective unless the same shall be in writing and acknowledged by Lenders having an aggregate Pro Rata Shares of not less than the aggregate Pro Rata Shares expressly designated herein with respect thereto or, in the absence of such designation as to any provision of this Agreement, by the Required Lenders, and then any such amendment, modification, waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided, however, that the Agent Fee Letter may be amended, waived, consented to or modified by the parties thereto. No amendment, modification, waiver or consent shall (a) extend or increase the Commitment of any Lender without the written consent of such Lender, (b) extend the date scheduled for payment of any principal (excluding mandatory prepayments) of or interest on the Loans or any fees payable hereunder without the written consent of each Lender directly affected thereby, (c) reduce the principal amount of any Loan, the rate of interest thereon or any fees payable hereunder, without the consent of each Lender directly affected thereby (except (i) for periodic adjustments of interest rates and fees resulting from a change in the LIBOR Rate and the Base Rate as provided for in this Agreement, and (ii) that Required Lenders may rescind any increase in the interest rate under and in accordance with Section 4.1).; or (d) release any Guarantor from its obligations under the Guaranty and Collateral Agreement, other than as part of or in connection with any disposition permitted hereunder, or all or any substantial part of the Collateral granted under the Collateral Documents (except as permitted by Section 14.11), change the definition of Required Lenders, any provision of this Section 15.1, any provision of Section 13.3, change the definition of Pro Rata Share, or reduce the aggregate Pro Rata Share required to effect an amendment, modification, waiver or consent, without, in each case set forth in this clause (d), the written consent of all Lenders. No provision of Sections 6.2.2 or 6.3 with respect to the timing or application of mandatory prepayments of the Loans shall be amended, modified or waived without the consent of Lenders having a

 

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majority of the aggregate Pro Rata Shares of the Term Loans affected thereby. No provision of Section 14 or other provision of this Agreement affecting Administrative Agent in its capacity as such shall be amended, modified or waived without the consent of Administrative Agent. No provision of this Agreement relating to the rights or duties of the Issuing Lenders in their capacities as such shall be amended, modified or waived without the consent of the Issuing Lenders.

Notwithstanding the foregoing, this agreement may be amended (or amended and restated) with the written consent of the Required Lenders, Administrative Agent and Borrower (a) to add one or more additional credit facilities to this Agreement and to permit the extensions of credit from time to time outstanding thereunder and the accrued interest and fees in respect thereof to share ratably in the benefits of this Agreement and the other Loan Documents with the Term Loans, the Revolving Loans, the Revolving Commitments and the accrued interest and fees in respect thereof and (b) to include appropriately the Lenders holding such credit facilities in any determination of the Required Lenders.

15.1.2. Either (a) if, in connection with any proposed amendment, modification, waiver or termination requiring the consent of all Lenders or all affected Lenders, the consent of the Required Lenders is obtained, but the consent of other Lenders whose consent is required is not obtained (any such Lender whose consent is required and not obtained being referred to as a “Non-Consenting Lender”) or (b) upon the receipt by the Borrower of notice and demand from any Lender for any payment provided in Section 8.1 (such Lender, together with any Non-Consenting Lender, each an “Affected Lender”), then, so long as Administrative Agent is not an Affected Lender, Administrative Agent and/or a Person or Persons reasonably acceptable to Administrative Agent (who shall in no event be a Disqualified Lender) shall have the right to purchase from such Affected Lenders (on the express condition that upon such purchase such purchasing Person will consent to the proposed amendment), and such Affected Lenders agree that they shall, upon Administrative Agent’s request, sell and assign to Administrative Agent and/or such Person or Persons, all of the Loans and Revolving Commitments of such Affected Lenders for an amount equal to the principal balance of all such Loans and Revolving Commitments held by such Affected Lenders and all accrued interest, fees, expenses and other amounts then due with respect thereto through the date of sale, such purchase and sale to be consummated pursuant to an executed Assignment Agreement.

15.2.    Confirmations. Borrower and each holder of a Note agree from time to time, upon written request received by it from the other, to confirm to the other in writing (with a copy of each such confirmation to Administrative Agent) the aggregate unpaid principal amount of the Loans then outstanding under such Note.

15.3.    Notices.

15.3.1. Generally. Except as otherwise provided in Section 2.2.2, all notices hereunder shall be in writing (including facsimile or other electronic transmission) and shall be sent to the applicable party at its address shown on Annex B or at such other address as such party may, by written notice received by the other parties, have designated as its address for such purpose. Notices sent by facsimile or electronic transmission shall be deemed to have been given when sent; notices sent by mail shall be deemed to have been given three Business Days

 

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after the date when sent by registered or certified mail, postage prepaid; and notices sent by hand delivery or overnight courier service shall be deemed to have been given when received. For purposes of Section 2.2.2, Administrative Agent shall be entitled to rely on telephonic instructions from any person that Administrative Agent in good faith believes is an authorized officer or employee of Borrower, and Borrower shall hold Administrative Agent and each other Lender harmless from any loss, cost or expense resulting from any such reliance.

15.3.2. Electronic Communications.

(a)        Notices and other communications to any Lender under this Agreement may be delivered or furnished by electronic communication (including e-mail and Internet or intranet websites) pursuant to procedures approved by Administrative Agent, but the foregoing does not apply to notices to any Lender pursuant to Section 2.1.3 if that Lender has notified Administrative Agent and Borrower Representative that it is incapable of receiving notices under Section 2.1.3 by electronic communication. Administrative Agent or any of Holdings, Intermediate Holdings and Borrower may, in its respective sole discretion, agree to accept notices and other communications to it under this Agreement by electronic communications pursuant to procedures approved by it, and approval of any such procedures may be limited to particular notices or communications.

(b)        Unless otherwise agreed by the sender and the intended recipient, (i) notices and other communications sent to an e-mail address will be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as available, return e-mail, or other written acknowledgement); (ii) notices or communications posted to an Internet or intranet website will be deemed received upon the deemed receipt by the intended recipient, at its e-mail address as described in the foregoing clause (i), of notification that the notice or communication is available and identifying the website address therefor; and (iii) for both clauses (i) and (ii) of this Section 15.3.2(b), any notice, e mail or other communication that is not sent during the normal business hours of the intended recipient will be deemed to have been sent at the opening of business on the next Business Day for the intended recipient.

15.4.    Computations. Where the character or amount of any asset or liability or item of income or expense is required to be determined, or any consolidation or other accounting computation is required to be made, for the purpose of this Agreement, such determination or calculation shall, to the extent applicable and except as otherwise specified in this Agreement, be made in accordance with GAAP, consistently applied; provided that if Borrower notifies Administrative Agent that Borrower wishes to amend any covenant in Sections 10 or 11.14 (or any related definition) to eliminate or to take into account the effect of any change in GAAP on the operation of such covenant (or if Administrative Agent notifies Borrower that the Required Lenders wish to amend Sections 10 or 11.14 (or any related definition) for such purpose), then Borrower’s compliance with such covenant shall be determined on the basis of GAAP in effect immediately before the relevant change in GAAP became effective, until either such notice is withdrawn or such covenant (or related definition) is amended in a manner satisfactory to Borrower and the Required Lenders.

 

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15.5.    Costs, Expenses. Each Loan Party, jointly and severally agrees to pay on demand, subject to any limitations set forth in Section 10.2 with respect to audits and inspections, (a) all reasonable and documented out-of-pocket costs and expenses of Administrative Agent and following the occurrence and during the continuance of an Event of Default any Lender (including Attorney Costs) in connection with the preparation, execution, syndication, delivery and administration (including perfection and protection of any Collateral and the costs of Intralinks (or other similar service), if applicable) of this Agreement, the other Loan Documents and all other documents provided for herein or delivered or to be delivered hereunder or in connection herewith (including any amendment, supplement or waiver to any Loan Document), whether or not the transactions contemplated hereby or thereby shall be consummated, and (b) all reasonable and documented out-of-pocket costs and expenses (including Attorney Costs) incurred by Administrative Agent and each Lender after an Event of Default in connection with the collection of the Obligations or the enforcement of this Agreement the other Loan Documents or any such other documents or during any workout, restructuring or negotiations in respect thereof; provided, however, that such Attorney Costs described in each of clauses (a) and (b) above shall be limited to Attorney Costs of one counsel to the Administrative Agent and Lenders taken as a whole, one counsel for franchise counsel to Administrative Agent (and, if reasonably necessary, one local counsel to the Administrative Agent and all the Lenders taken as a whole in any relevant jurisdiction), unless the representation of the Administrative Agent and one or more Lenders by counsel for all Lenders would be inappropriate due to the existence of an actual conflict of interest that is not waived, in which case Borrower shall also be required to reimburse the Attorney Costs of one counsel to such affected Lenders similarly-situated (taken as a whole). In addition, each Loan Party agrees to pay, and to save Administrative Agent and the Lenders harmless from all liability for, any fees of Borrower’s auditors in connection with any reasonable exercise by Administrative Agent and the Lenders of their rights pursuant to Section 10.2. All Obligations provided for in this Section 15.5 shall survive repayment of the Loans, cancellation of the Notes, expiration or termination of the Letters of Credit and termination of this Agreement.

15.6.    Assignments; Participations.

15.6.1. Assignments.

(a)        Any Lender may at any time assign to one or more Eligible Assignees other than the Sponsor, Borrower or any Affiliate thereof (any such Person, an “Assignee”) all or any portion of such Lender’s Loans and Commitments, with the prior written consent of Administrative Agent, the Issuing Lenders (for an assignment of the Revolving Loans and the Revolving Commitments) and Borrower (which consent of Borrower shall not be unreasonably withheld or delayed), provided, however, (i) such consent of Borrower shall not be required (x) for an assignment by a Lender to a Lender or an Affiliate of a Lender or an Approved Fund, or (y) upon the occurrence and during the continuance of a Specified Event of Default, (ii) such consent of Administrative Agent and the Issuing Lenders shall not be required for an assignment by a Lender to a Lender or an Affiliate of a Lender or an Approved Fund and (iii) no such assignment shall be to a Disqualified Lender. Except as Administrative Agent may otherwise agree, any such assignment shall be in a minimum aggregate amount equal to $1,000,000 or, if less, the remaining Commitment and Loans held by the assigning Lender. Borrower and Administrative Agent shall be entitled to continue to deal solely and directly with such Lender in

 

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connection with the interests so assigned to an Assignee until Administrative Agent shall have received and accepted an effective assignment agreement in substantially the form of Exhibit C hereto (an “Assignment Agreement”) executed, delivered and fully completed by the applicable parties thereto and a processing fee of $3,500 and the tax forms required by Section 7.6(d); provided, that, no processing fee shall be payable in connection with an assignment by a Lender to a Lender or an Affiliate of a Lender or an Approved Fund. If an assignment is made to any Person and at the time of such assignment Borrower would be obligated to pay a greater amount under Sections 7.6 or 8 to the Assignee than Borrower is then obligated to pay to the assigning Lender under such Sections then Borrower will not be required to pay such greater amounts to such Assignee. Any attempted assignment not made in accordance with this Section 15.6.1 shall be treated as the sale of a participation under Section 15.6.2. If Borrower has not expressly objected to any assignment requiring its consent hereunder within three Business Days after notice thereof, Administrative agent shall provide Borrower with a second copy of such notice and Borrower shall be deemed to have granted unless Borrower has expressly objected to such assignment within seven days after receipt of such second notice thereof.

(b)        From and after the date on which the conditions described above have been met, (i) such Assignee shall be deemed automatically to have become a party hereto and, to the extent that rights and obligations hereunder have been assigned to such Assignee pursuant to such Assignment Agreement, shall have the rights and obligations of a Lender hereunder and (ii) the assigning Lender, to the extent that rights and obligations hereunder have been assigned by it pursuant to such Assignment Agreement, shall be released from its rights (other than its indemnification rights) and obligations hereunder. Upon the request of the Assignee (and, as applicable, the assigning Lender) pursuant to an effective Assignment Agreement, Borrower shall execute and deliver to Administrative Agent for delivery to the Assignee (and, as applicable, the assigning Lender) a Note in the principal amount of the Assignee’s Pro Rata Share of the Revolving Commitments plus the principal amount of the Assignee’s Term Loans (and, as applicable, a Note in the principal amount of the Pro Rata Share of the Revolving Commitments retained by the assigning Lender plus the principal amount of the Term Loans retained by the assigning Lender). Each such Note shall be dated the effective date of such assignment. Upon receipt by Administrative Agent of such Note(s), the assigning Lender shall return to Borrower any prior Note held by it.

(c)        Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank, and this Section shall not apply to any such pledge or assignment of a security interest; provided that no such pledge or assignment of a security interest shall release a Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

15.6.2. Participations. Any Lender may at any time sell to one or more Persons participating interests in its Loans, Commitments or other interests hereunder (any such Person, a “Participant”), provided that such Person shall not be a Disqualified Lender. In the event of a sale by a Lender of a participating interest to a Participant, (a) such Lender’s obligations hereunder shall remain unchanged for all purposes, (b) Borrower and Administrative Agent shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations hereunder and (c) all amounts payable by Borrower shall be determined as if

 

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such Lender had not sold such participation and shall be paid directly to such Lender. No Participant shall have any direct or indirect voting rights hereunder except with respect to any event described in Section 15.1 expressly requiring the unanimous vote of all Lenders or, as applicable, all affected Lenders. Each Lender agrees to incorporate the requirements of the preceding sentence into each participation agreement which such Lender enters into with any Participant. Borrower agrees that if amounts outstanding under this Agreement are due and payable (as a result of acceleration or otherwise), each Participant shall be deemed to have the right of set-off in respect of its participating interest in amounts owing under this Agreement and with respect to any Letter of Credit to the same extent as if the amount of its participating interest were owing directly to it as a Lender under this Agreement; provided that such right of set-off shall be subject to the obligation of each Participant to share with the Lenders, and the Lenders agree to share with each Participant, as provided in Section 7.5. Borrower also agrees that each Participant shall be entitled to the benefits of Section 7.6 or 8 as if it were a Lender (provided (i) that on the date of the participation no Participant shall be entitled to any greater compensation pursuant to Section 7.6 or 8 than would have been paid to the participating Lender on such date if no participation had been sold except to the extent such entitlement to receive a greater payment results from a change in law that occurs after the Participant acquired the applicable participation and (ii) that each Participant complies with Section 7.6(d) as if it were an Assignee, it being understood that the documentation required under Section 7.6(d) shall be delivered to the participating Lender). Each Lender that sells a participation shall, acting solely for this purpose as an agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts of and stated interest on each Participant’s interest in the Loans, Commitments or other interests hereunder (the “Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant’s interest in any commitments, loans or its other obligations under this Agreement or any Loan Documents) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.

15.7.    Register. Administrative Agent, acting solely for this purpose as an agent of Borrower, shall maintain a copy of each Assignment Agreement delivered and accepted by it and register (the “Register”) for the recordation of names and addresses of the Lenders and the Commitments of, and principal amounts of and stated interest on the Loans owing to, each Lender pursuant to the terms hereof from time to time and whether such Lender is the original Lender or the Assignee. No assignment shall be effective unless and until the Assignment Agreement is accepted and registered in the Register. All records of transfer of a Lender’s interest in the Register shall be conclusive, absent manifest error, as to the ownership of the interests in the Loans, and Borrower, Administrative Agent, and Lenders shall treat each person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement. Administrative Agent shall not incur any liability of any kind with respect to any Lender with respect to the maintenance of the Register.

 

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15.8.    GOVERNING LAW. THIS AGREEMENT AND EACH NOTE SHALL BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE.

15.9.    Confidentiality. As required by federal law and Administrative Agent’s policies and practices, Administrative Agent may need to obtain, verify, and record certain customer identification information and documentation in connection with opening or maintaining accounts, or establishing or continuing to provide services. Administrative Agent and each Lender agree to use commercially reasonable efforts (equivalent to the efforts Administrative Agent or such Lender applies to maintain the confidentiality of its own confidential information) to maintain as confidential all information provided to them by any Loan Party, except that Administrative Agent and each Lender may disclose such information (a) to Persons employed or engaged by Administrative Agent or such Lender or such Lender’s Affiliates or Approved Funds in evaluating, approving, structuring or administering the Loans and the Commitments; (b) to any assignee or participant or potential assignee or participant, other than a Disqualified Lender, that has agreed to comply with the covenant contained in this Section 15.9 (and any such assignee or participant or potential assignee or participant may disclose such information to Persons employed or engaged by them as described in clause (a) above); (c) (i) as required or requested by any federal or state regulatory authority or examiner, or any insurance industry association, or (ii) as reasonably believed by Administrative Agent or such Lender to be compelled by any court decree, subpoena or legal or administrative order or process; provided Administrative Agent or such Lender shall notify the Borrower prior to making such disclosure, unless such notification is prohibited; (d) as, on the advice of Administrative Agent’s or such Lender’s counsel, is required by law provided the Administrative Agent or such Lender shall notify the Borrower prior to making such disclosure, unless such notification is prohibited; (e) in connection with the exercise of any right or remedy under the Loan Documents or in connection with any litigation to which Administrative Agent or such Lender is a party; (f) to any nationally recognized rating agency that requires access to information about a Lender’s investment portfolio in connection with ratings issued with respect to such Lender; (g) to any Affiliate of Administrative Agent, the Issuing Lenders or any Lender who may provide Bank Products to the Loan Parties; (h) to Lender’s independent auditors and other professional advisors as to which such information has been identified as confidential; (i) that ceases to be confidential through no fault of Administrative Agent or any Lender; (j) to any person appointed by the Administrative Agent or any Lender to provide administration or settlement services in respect of one or more of the Loan documents including without limitation, in relation to the trading of participations in respect of the Loan Documents, such confidential information as may be required to be disclosed to enable such service provider to provide any of the services referred to in this paragraph (j) if the service provider to whom the confidential information is to be given has entered into a confidentiality agreement substantially in the form of the LMA Master Confidentiality Undertaking for Use With Administration/Settlement Service Providers or such other form of confidentiality undertaking agreed between the Borrower and the Administrative Agent or Lender, as applicable; or (k) the Administrative Agent or such Lender may disclose to any national or international numbering service provider appointed by the Administrative Agent or such Lender to provide identification numbering services in respect of this Agreement and/or one or more Loan Parties the following information:

 

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(i)       names of Loan Parties;

(ii)      country of domicile of Loan Parties;

(iii)     place of incorporation of Loan Parties;

(iv)     date of this Agreement;

(v)       the name of the Administrative Agent;

(vi)       date of each amendment and restatement of this Agreement;

(vii)     amount of total Commitments;

(viii)     currencies of the Loans;

(ix)       type of Loans;

(x)       ranking of Loans;

(xi)      Termination Date for the Loans;

(xii)      changes to any of the information previously supplied pursuant to paragraphs (i) to (xi) above; and

(xiii)     such other information agreed in writing between the Administrative Agent or such Lender and the Loan Party,

to enable such numbering service provider to provide its usual syndicated loan numbering identification services. The Loan Parties acknowledge and agree that each identification number assigned to this Agreement and/or one or more Loan Parties by a numbering service provider and the information associated with each such number may be disclosed to users of its services in accordance with the standard terms and conditions of that numbering service provider. Each Loan Party represents that none of the information set out in paragraphs (i) to (xii) above is, nor will at any time be, unpublished price-sensitive information.

Notwithstanding the foregoing, (i) in the case of clauses (c)(ii), (d), (j) and (k) above, the Administrative Agent shall use commercially reasonable efforts to (A) give the applicable Loan Party written notice prior to disclosing the information, in the case of clauses (c) and (d), to the extent permitted by such requirement and in the case of clauses (j) and (k), providing a copy of the written agreement pursuant to which disclosure of information to other parties will be conducted; (B) in the case of clauses (c)(ii) and (d), cooperate with the Loan Party to obtain a protective order or similar confidential treatment, and (C) in the case of clauses (c)(ii) and (d), only disclose that portion of the confidential information as counsel for the Administrative Agent or Lender, as applicable, advises such Administrative Agent or Lender that it must disclose pursuant to such requirement and (ii) in no event shall the Administrative Agent or any Lender disclose any such confidential information to any Disqualified Lender. The Administrative Agent or any Lender may publish a tombstone or similar advertising material relating to the

 

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financing transactions contemplated by this Agreement, and Administrative Agent reserves the right to provide to industry trade organizations information necessary and customary for inclusion in league table measurements. If any provision of any confidentiality agreement, nondisclosure agreement or other similar agreement between Borrower and Lender conflicts with or contradicts this Section 15.9 with respect to the treatment of confidential information, this section shall supersede all such prior or contemporaneous agreements and understandings between the parties.

15.10. Severability. Whenever possible each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement. All obligations of the Loan Parties and rights of Administrative Agent and the Lenders expressed herein or in any other Loan Document shall be in addition to and not in limitation of those provided by applicable law.

15.11. Nature of Remedies. All Obligations of the Loan Parties and rights of Administrative Agent and the Lenders expressed herein or in any other Loan Document shall be in addition to and not in limitation of those provided by applicable law. No failure to exercise and no delay in exercising, on the part of Administrative Agent or any Lender, any right, remedy, power or privilege hereunder, shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.

15.12. Entire Agreement. This Agreement, together with the other Loan Documents, embodies the entire agreement and understanding among the parties hereto and supersedes all prior or contemporaneous agreements and understandings of such Persons, verbal or written, relating to the subject matter hereof and thereof (except as relates to the fees described in Section 5.3) and any prior arrangements made with respect to the payment by the Loan Parties of (or any indemnification for) any fees, costs or expenses payable to or incurred (or to be incurred) by or on behalf of Administrative Agent or the Lenders.

15.13. Counterparts. This Agreement may be executed in any number of counterparts and by the different parties hereto on separate counterparts and each such counterpart shall be deemed to be an original, but all such counterparts shall together constitute but one and the same Agreement. Receipt of an executed signature page to this Agreement by facsimile or other electronic transmission shall constitute effective delivery thereof. Electronic records of executed Loan Documents maintained by the Lenders shall deemed to be originals.

15.14. Successors and Assigns. This Agreement shall be binding upon Borrower, the Lenders and Administrative Agent and their respective successors and permitted assigns, and shall inure to the benefit of Borrower, the Lenders and Administrative Agent and the successors and assigns of the Lenders and Administrative Agent. No other Person shall be a direct or indirect legal beneficiary of, or have any direct or indirect cause of action or claim in connection with, this Agreement or any of the other Loan Documents. No Loan Party may assign or transfer any of its rights or Obligations under this Agreement without the prior written consent of Administrative Agent and each Lender.

 

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15.15. Captions. Section captions used in this Agreement are for convenience only and shall not affect the construction of this Agreement.

15.16. Customer Identification – USA Patriot Act Notice. Each Lender and Monroe Capital (for itself and not on behalf of any other party) hereby notifies the Loan Parties that, pursuant to the requirements of the USA Patriot Act, Title III of Pub. L. 107-56, signed into law October 26, 2001 (the “Patriot Act”), it is required to obtain, verify and record information that identifies the Loan Parties, which information includes the name and address of the Loan Parties and other information that will allow such Lender or Monroe Capital, as applicable, to identify the Loan Parties in accordance with such legislation.

15.17. INDEMNIFICATION BY LOAN PARTIES. IN CONSIDERATION OF THE EXECUTION AND DELIVERY OF THIS AGREEMENT BY ADMINISTRATIVE AGENT AND THE LENDERS AND THE AGREEMENT TO EXTEND THE COMMITMENTS PROVIDED HEREUNDER, BORROWER HEREBY AGREES TO INDEMNIFY, EXONERATE AND HOLD ADMINISTRATIVE AGENT, EACH LENDER AND EACH OF THE OFFICERS, DIRECTORS, EMPLOYEES, AFFILIATES, APPROVED FUNDS AND AGENTS OF ADMINISTRATIVE AGENT AND EACH LENDER (EACH A “LENDER PARTY”) FREE AND HARMLESS FROM AND AGAINST ANY AND ALL ACTIONS, CAUSES OF ACTION, SUITS, LOSSES, LIABILITIES, DAMAGES AND EXPENSES, INCLUDING ATTORNEY COSTS (COLLECTIVELY, THE “INDEMNIFIED LIABILITIES”), INCURRED BY THE LENDER PARTIES OR ANY OF THEM AS A RESULT OF, OR ARISING OUT OF, OR RELATING TO (a) ANY TENDER OFFER, MERGER, PURCHASE OF CAPITAL SECURITIES, PURCHASE OF ASSETS OR OTHER SIMILAR TRANSACTION FINANCED OR PROPOSED TO BE FINANCED IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, WITH THE PROCEEDS OF ANY OF THE LOANS, (b) THE USE, HANDLING, RELEASE, EMISSION, DISCHARGE, TRANSPORTATION, STORAGE, TREATMENT OR DISPOSAL OF ANY HAZARDOUS SUBSTANCE AT ANY PROPERTY OWNED OR LEASED BY ANY LOAN PARTY, (c) ANY VIOLATION OF ANY ENVIRONMENTAL LAWS WITH RESPECT TO CONDITIONS AT ANY PROPERTY OWNED OR LEASED BY ANY LOAN PARTY OR THE OPERATIONS CONDUCTED THEREON, (d) THE INVESTIGATION, CLEANUP OR REMEDIATION OF OFFSITE LOCATIONS AT WHICH ANY LOAN PARTY OR THEIR RESPECTIVE PREDECESSORS ARE ALLEGED TO HAVE DIRECTLY OR INDIRECTLY DISPOSED OF HAZARDOUS SUBSTANCES OR (e) THE EXECUTION, DELIVERY, PERFORMANCE OR ENFORCEMENT OF THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT BY ANY OF THE LENDER PARTIES; PROVIDED, HOWEVER, THAT NO LOAN PARTY SHALL HAVE ANY LIABILITY UNDER THIS SECTION 15.17 TO ANY INDEMNITEE WITH RESPECT TO ANY INDEMNIFIED LIABILITIES OR ANY EXPENSES TO THE EXTENT THAT SUCH LIABILITY (A) HAS RESULTED FROM THE APPLICABLE LENDER PARTY’S (EXCLUDING THE ADMINISTRATIVE AGENT IN ITS CAPACITY AS SUCH) BAD FAITH, FRAUD, GROSS NEGLIGENCE, WILLFUL MISCONDUCT OR MATERIAL BREACH OF THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS, IN EACH CASE, AS DETERMINED BY A FINAL, NONAPPEALABLE JUDGMENT BY A COURT OF COMPETENT JURISDICTION OR (B) RELATES TO ANY DISPUTES SOLELY AMONG INDEMNITEES OR ANY OF THEIR AFFILIATES. IF AND TO THE EXTENT THAT THE FOREGOING UNDERTAKING MAY BE

 

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UNENFORCEABLE FOR ANY REASON, EACH LOAN PARTY HEREBY AGREES TO MAKE THE MAXIMUM CONTRIBUTION TO THE PAYMENT AND SATISFACTION OF EACH OF THE INDEMNIFIED LIABILITIES WHICH IS PERMISSIBLE UNDER APPLICABLE LAW. ALL OBLIGATIONS PROVIDED FOR IN THIS SECTION 15.17 SHALL SURVIVE REPAYMENT OF THE LOANS, CANCELLATION OF THE NOTES, EXPIRATION OR TERMINATION OF THE LETTERS OF CREDIT, ANY FORECLOSURE UNDER, OR ANY MODIFICATION, RELEASE OR DISCHARGE OF, ANY OR ALL OF THE COLLATERAL DOCUMENTS AND TERMINATION OF THIS AGREEMENT. THIS SECTION 15.17 SHALL NOT APPLY WITH RESPECT TO TAXES OTHER THAN ANY TAXES THAT REPRESENT LOSSES, CLAIMS, DAMAGES, ETC. ARISING FROM ANY NON-TAX CLAIM.

15.18. Nonliability of Lenders. The relationship between Borrower on the one hand and the Lenders and Administrative Agent on the other hand shall be solely that of borrower and lender. Neither Administrative Agent nor any Lender has any fiduciary relationship with or duty to any Loan Party arising out of or in connection with this Agreement or any of the other Loan Documents, and the relationship between the Loan Parties, on the one hand, and Administrative Agent and the Lenders, on the other hand, in connection herewith or therewith is solely that of debtor and creditor. Neither Administrative Agent nor any Lender undertakes any responsibility to any Loan Party to review or inform any Loan Party of any matter in connection with any phase of any Loan Party’s business or operations. Borrower agrees, on behalf of itself and each other Loan Party, that neither Administrative Agent nor any Lender shall have liability to any Loan Party (whether sounding in tort, contract or otherwise) for losses suffered by any Loan Party in connection with, arising out of, or in any way related to the transactions contemplated and the relationship established by the Loan Documents, or any act, omission or event occurring in connection therewith, unless it is determined in a final non-appealable judgment by a court of competent jurisdiction that such losses resulted from the gross negligence or willful misconduct of the party from which recovery is sought. NO LENDER PARTY SHALL BE LIABLE FOR ANY DAMAGES ARISING FROM THE USE BY OTHERS OF ANY INFORMATION OR OTHER MATERIALS OBTAINED THROUGH INTRALINKS OR OTHER SIMILAR INFORMATION TRANSMISSION SYSTEMS IN CONNECTION WITH THIS AGREEMENT (EXCEPT FOR ANY SUCH DAMAGES ARISING ON ACCOUNT OF THE BAD FAITH, FRAUD, GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, OR MATERIAL BREACH OF THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS BY THE APPLICABLE LENDER PARTY OR SUCH LENDER PARTY’S OFFICERS, DIRECTORS, EMPLOYEES, AFFILIATES AND AGENTS, IN EACH CASE, AS DETERMINED BY A FINAL, NONAPPEALABLE JUDGMENT BY A COURT OF COMPETENT JURISDICTION, NO PARTY SHALL HAVE ANY LIABILITY WITH RESPECT TO, AND EACH PARTY ON BEHALF OF ITSELF AND EACH OF ITS AFFILIATES, HEREBY WAIVES, RELEASES AND AGREES NOT TO SUE FOR ANY SPECIAL, PUNITIVE, EXEMPLARY, INDIRECT OR CONSEQUENTIAL DAMAGES RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR ARISING OUT OF ITS ACTIVITIES IN CONNECTION HEREWITH OR THEREWITH (WHETHER BEFORE OR AFTER THE CLOSING DATE). Each Party acknowledges that it has been advised by counsel in the negotiation, execution and delivery of this Agreement and the other Loan Documents to which it is a party. No joint venture is created hereby or by the other Loan

 

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Documents or otherwise exists by virtue of the transactions contemplated hereby among the Lenders or among the Loan Parties and the Lenders

15.19. FORUM SELECTION AND CONSENT TO JURISDICTION. ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, SHALL BE BROUGHT AND MAINTAINED EXCLUSIVELY IN THE COURTS OF THE STATE OF NEW YORK OR IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK; PROVIDED THAT NOTHING IN THIS AGREEMENT SHALL BE DEEMED OR OPERATE TO PRECLUDE ADMINISTRATIVE AGENT FROM BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY OTHER APPROPRIATE JURISDICTION. EACH LOAN PARTY, ADMINISTRATIVE AGENT AND EACH LENDER HEREBY EXPRESSLY AND IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK FOR THE PURPOSE OF ANY SUCH LITIGATION AS SET FORTH ABOVE. ADMINISTRATIVE AGENT, EACH LENDER AND EACH LOAN PARTY FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE PREPAID, OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF NEW YORK. EACH LOAN PARTY, ADMINISTRATIVE AGENT AND EACH LENDER HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

15.20. WAIVER OF JURY TRIAL. EACH LOAN PARTY, ADMINISTRATIVE AGENT AND EACH LENDER HEREBY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS AGREEMENT, ANY NOTE, ANY OTHER LOAN DOCUMENT AND ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH OR THEREWITH OR ARISING FROM ANY LENDING RELATIONSHIP EXISTING IN CONNECTION WITH ANY OF THE FOREGOING, AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.

15.21. Acknowledgement and Consent to Bail In of EEA Financial Institutions. Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement, or understanding among any such parties, each party hereto acknowledges that any liability of any EEA Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be subject to the write-down and conversion powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by (a) the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an EEA Financial Institution; and (b) the effects of any Bail-in Action on any such liability, including, if applicable: (i) a reduction in full or in part or cancellation of any such liability; (ii) a conversion of all, or a portion of, such liability into shares or other instruments of ownership in

 

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that EEA Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or (iii) the variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of any EEA Resolution Authority.

15.22. Existing Credit Agreement.

15.22.1. The parties hereto agree that, on the Closing Date, the following transactions shall be deemed to occur automatically, without further action by any party hereto:

(a)        The Existing Credit Agreement shall, as of the Closing Date, be deemed to be amended and restated in its entirety in the form of, and pursuant to, this Agreement, and the Existing Credit Agreement shall thereafter be of no further force or effect except to evidence (i) the representations and warranties of the parties hereto prior to the Closing Date and (ii) any agreement to be performed or required to be performed pursuant to the Existing Credit Agreement prior to the Closing Date. Notwithstanding the foregoing, (a) the amendment and restatement effected by this Agreement shall not cure any breach thereof existing prior to the Closing Date, (b) this Agreement and the documents executed and delivered in connection herewith and the transactions contemplated hereby do not constitute a novation, payment and reborrowing or termination of any of the obligations of the Loan Parties under the Existing Credit Agreement as in effect prior to the Closing Date or a novation or payment and reborrowing of any amount owing under the Existing Credit Agreement as in effect prior to the Closing Date, (c) all such obligations of the Loan Parties are in all respects continuing with only the terms being modified as provided in this Agreement and the other Loan Documents, and (d) all Liens in the Collateral created under the Collateral Documents shall, except as expressly provided by this Agreement, continue in full force and effect and shall secure all of the Obligations.

(b)        The Borrower and each Guarantor hereby acknowledges and agrees that each of the Existing Loan Documents that are not superseded by corresponding Loan Documents or such executed and delivered in connection with this Agreement to which the Borrower or such Guarantor is a party remains in full force and effect and hereby ratifies and reaffirms all of its respective repayment and performance obligations, contingent or otherwise, under each of such Existing Loan Documents (including each grant of security interests pursuant to the Collateral Documents) and, to the extent such Guarantor guaranteed any of the “Obligations”, as defined in the Existing Credit Agreement pursuant to any such Existing Loan Documents as security for such Obligations, such Guarantor hereby ratifies and reaffirms such guaranty and agrees that such guaranty secures all of the Obligations under this Agreement and remains in full force and effect after giving effect to this Agreement. The execution, delivery and effectiveness of this Agreement shall not operate as a waiver of any right, power or remedy of the Administrative Agent or the Lenders under the Existing Credit Agreement or any Existing Loan Document, nor constitute a waiver of any provision of the Existing Credit Agreement or any other Existing Loan Document, except as specifically set forth herein or in a corresponding Loan Document.

(c)        All “Loans” outstanding under the Existing Credit Agreement shall be deemed to be Loans under this Agreement. All issued and outstanding “Letters of Credit” issued

 

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pursuant to the Existing Credit Agreement shall be deemed to be Letters of Credit issued under this Agreement and all obligations with respect to Letters of Credit existing under the Existing Credit Agreement shall be deemed to be outstanding under this Agreement and shall in all respects be continuing after the Closing Date and shall be deemed to be obligations with respect to Letters of Credit governed by this Agreement. All other “Obligations” existing under the Existing Credit Agreement shall be deemed to be outstanding under this Agreement and, in each case (i) are in all respects enforceable without the terms thereof being modified as provided by this Agreement and (ii) shall in all respects be continuing after the Closing Date and shall be deemed to be Obligations governed by this Agreement.

(d)        Each reference in any other Loan Document to the Existing Credit Agreement shall be deemed to be a reference to this Agreement.

SECTION 16

JOINT AND SEVERAL LIABILITY

16.1.    Applicability of Terms. Borrower is defined collectively to include all Persons constituting Borrower; provided, however, that any references herein to “any Borrower”, “each Borrower”, “a Borrower” or similar references, shall be construed as a reference to each individual Person comprising Borrower. In addition, each Person comprising Borrower hereby acknowledges and agrees that all of the representations, warranties, covenants, obligations, conditions, agreements and other terms contained in this Agreement shall be applicable to and shall be binding upon each Person comprising Borrower unless expressly otherwise stated herein.

16.2.    Joint and Several Liability. Each Borrower shall be jointly and severally liable for all of the Obligations of each other Borrower, regardless of which Borrower actually receives the proceeds or other benefits of the Loans or other extensions of credit hereunder or the manner in which Borrowers, Administrative Agent or any Lender accounts therefor in their respective books and records.

16.3.    Benefits and Best Interests. Each Borrower acknowledges that it will enjoy significant benefits from the business conducted by each other Borrower because of, inter alia, their combined ability to bargain with other Persons including without limitation their ability to receive the Loans and other credit extensions under this Agreement and the other Loan Documents which would not have been available to any Borrower acting alone. Each Borrower has determined that it is in its best interest to procure the credit facilities contemplated hereunder, with the credit support of each other Borrower as contemplated by this Agreement and the other Loan Documents.

16.4.    Accommodations. Each of Administrative Agent and the Lenders have advised each Borrower that it is unwilling to enter into this Agreement and the other Loan Documents and make available the credit facilities extended hereby or thereby to any Borrower unless each Borrower agrees, among other things, to be jointly and severally liable for the due and proper payment of the Obligations of each other Borrower. Each Borrower has determined that it is in its best interest and in pursuit of its purposes that it so induce the Lenders to extend credit pursuant to this Agreement and the other documents executed in connection herewith

 

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(A) because of the desirability to each Borrower of the credit facilities hereunder and the interest rates and the modes of borrowing available hereunder and thereunder, (B) because each Borrower may engage in transactions jointly with other Borrowers and (C) because each Borrower may require, from time to time, access to funds under this Agreement for the purposes herein set forth. Each Borrower, individually, expressly understands, agrees and acknowledges, that the credit facilities contemplated hereunder would not be made available on the terms herein in the absence of the collective credit of all the Borrowers, and the joint and several liability of all the Borrowers. Accordingly, each Borrower acknowledges that the benefit of the accommodations made under this Agreement to the Borrower, as a whole, constitutes reasonably equivalent value, regardless of the amount of the indebtedness actually borrowed by, advanced to, or the amount of credit provided to, or the amount of collateral provided by, any one Borrower.

16.5.    Maximum Amount. To the extent that applicable law otherwise would render the full amount of the joint and several obligations of any Borrower hereunder and under the other Loan Documents invalid or unenforceable, such Person’s obligations hereunder and under the other Loan Documents shall be limited to the maximum amount which does not result in such invalidity or unenforceability; provided, however, that each Borrower’s obligations hereunder and under the other Loan Documents shall be presumptively valid and enforceable to their fullest extent in accordance with the terms hereof or thereof, as if this Section 16 were not a part of this Agreement.

16.6.    Joint Liability Payments. To the extent that any Borrower shall make a payment under this Section 16 of all or any of the Obligations (a “Joint Liability Payment”) which, taking into account all other Joint Liability Payments then previously or concurrently made by any other Borrower, exceeds the amount that such Borrower would otherwise have paid if each Borrower had paid the aggregate Obligations satisfied by such Joint Liability Payments in the same proportion that such Person’s “Allocable Amount” (as defined below) (as determined immediately prior to such Joint Liability Payments) bore to the aggregate Allocable Amounts of each Borrower as determined immediately prior to the making of such Joint Liability Payments, then, following payment in full in cash of the Obligations (other than contingent indemnification Obligations not then asserted), the expiration, termination or Cash Collateralization of all Letters of Credit and the termination of the Commitments, such Borrower shall be entitled to receive contribution and indemnification payments from, and be reimbursed by, each other Borrower for the amount of such excess, pro rata based upon their respective Allocable Amounts in effect immediately prior to such Joint Liability Payments. As of any date of determination, the “Allocable Amount” of any Borrower shall be equal to the maximum amount of the claim which could then be recovered from such Borrower under this Section 16 without rendering such claim voidable or avoidable under §548 of Chapter 11 of the Bankruptcy Code or under any applicable state Uniform Fraudulent Transfer Act, Uniform Fraudulent Conveyance Act or similar statute or common law.

16.7.    Financial Condition. Each Borrower assumes responsibility for keeping itself informed of the financial condition of each other Borrower, and any and all endorsers and/or guarantors of any instrument or document evidencing all or any part of such other Borrower’s Obligations, and of all other circumstances bearing upon the risk of nonpayment by such other Borrower of their Obligations, and each Borrower agrees that neither Administrative Agent nor

 

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any Lender shall have any duty to advise such Borrower of information known to Administrative Agent or any Lender regarding such condition or any such circumstances or to undertake any investigation not a part of its regular business routine. If Administrative Agent or any Lender, in its sole discretion, undertakes at any time or from time to time to provide any such information to a Borrower, neither Administrative Agent nor any Lender shall be under any obligation to update any such information or to provide any such information to such Borrower or any other Person on any subsequent occasion.

16.8.    Administrative Agent Authorizations. Administrative Agent is hereby authorized to, at any time and from time to time, (a) in accordance with the terms of this Agreement, renew, extend, accelerate or otherwise change the time for payment of, or other terms relating to, Obligations incurred by any Borrower or any other Loan Party, otherwise modify, amend or change the terms of any promissory note or other agreement, document or instrument now or hereafter executed by any Borrower or any other Loan Party and delivered to Administrative Agent or any Lender; (b) accept partial payments on an Obligation incurred by any Borrower; (c) take and hold security or collateral for the payment of an Obligation incurred by any Borrower hereunder or for the payment of any guaranties of an Obligation incurred by any Borrower or other liabilities of any Borrower and exchange, enforce, waive and release any such security or collateral; (d) apply such security or collateral and direct the order or manner of sale thereof as Administrative Agent, in its sole discretion, may determine; and (e) settle, release, compromise, collect or otherwise liquidate an Obligation incurred by any Borrower and any security or collateral therefor in any manner, without affecting or impairing the obligations of any other Borrower. In accordance with the terms of this Agreement, Administrative Agent shall have the exclusive right to determine the time and manner of application of any payments or credits, whether received from a Borrower or any other source, and such determination shall be binding on each Borrower. In accordance with the terms of this Agreement, all such payments and credits may be applied, reversed and reapplied, in whole or in part, to any of an Obligation incurred by any Borrower as Administrative Agent shall determine in its sole discretion without affecting the validity or enforceability of the Obligations of any other Borrower. Nothing in this Section 16 shall modify any right of any Borrower or any Lender to consent to any amendment or modification of this Agreement or the other Loan Documents in accordance with the terms hereof or thereof.

16.9.    Unconditional Obligations. Each Borrower hereby agrees that, except as hereinafter provided, its obligations hereunder shall be unconditional, irrespective of (a) the absence of any attempt to collect an Obligation incurred by Borrower from any Borrower or any Guarantor or other action to enforce the same; (b) failure by Administrative Agent to take any steps to perfect and maintain its security interest in, or to preserve its rights to, any security or collateral for an Obligation incurred by any Borrower; (c) of any proceeding under the Bankruptcy Code, or any similar proceeding, by or against any Borrower or any other Loan Party, or Administrative Agent’s or any Lender’s election in any such proceeding of the application of §1111(b)(2) of the Bankruptcy Code; (d) any borrowing or grant of a security interest by any Borrower as debtor-in-possession under §364 of the Bankruptcy Code; (e) the disallowance, under §502 of the Bankruptcy Code, of all or any portion of Administrative Agent’s or any Lender’s claim(s) for repayment of any of an Obligation incurred by any Borrower; or (f) any other circumstance which might otherwise constitute a legal or equitable

 

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discharge or defense of a guarantor unless such legal or equitable discharge or defense is that of a Borrower in its capacity as a Borrower.

16.10. Notices. Any notice given by Borrower Representative hereunder shall constitute and be deemed to be notice given by all Borrowers, jointly and severally. Notice given by Administrative Agent or any Lender to Borrower Representative hereunder or pursuant to any other Loan Documents in accordance with the terms hereof or thereof shall constitute notice to each Borrower. The knowledge of any Borrower shall be imputed to all Borrower and any consent by Borrower Representative or any Borrower shall constitute the consent of and shall bind all Borrower.

16.11. No Impairment of Obligations or Limitations of Liability. This Section 16 is intended only to define the relative rights of Borrower and nothing set forth in this Section 16 is intended to or shall impair the obligations of Borrower, jointly and severally, to pay any amounts as and when the same shall become due and payable in accordance with the terms of this Agreement or any other Loan Documents. Nothing contained in this Section 16 shall limit the liability of any Borrower to pay the credit facilities made directly or indirectly to such Borrower and accrued interest, fees and expenses with respect thereto for which such Borrower shall be primarily liable.

16.12. Rights of Contribution and Indemnification. The parties hereto acknowledge that the rights of contribution and indemnification hereunder shall constitute assets of each Borrower to which such contribution and indemnification is owing. The rights of any indemnifying Borrower against the other Borrowers under this Section 16 shall be exercisable upon the full and payment of the Obligations, the termination of the Letters of Credit and the termination of the Commitments.

16.13. Subrogation. No payment made by or for the account of a Borrower, including, without limitation, (a) a payment made by such Borrower on behalf of an Obligation of another Borrower or (b) a payment made by any other Person under any guaranty, shall entitle such Borrower, by subrogation or otherwise, to any payment from such other Borrower or from or out of property of such other Borrower and such Borrower shall not exercise any right or remedy against such other Borrower or any property of such other Borrower by reason of any performance of such Borrower of its joint and several obligations hereunder, until, in each case, the termination of the Commitments, payment in full of all Obligations (other than contingent indemnification Obligations not then asserted) and the expiration or termination or Cash Collateralization of all Letters of Credit.

SECTION 17

APPOINTMENT OF BORROWER REPRESENTATIVE.

17.1. Appointment; Proceeds. Each Borrower hereby irrevocably appoints and constitutes the Borrower Representative as its agent to request and receive the proceeds of advances in respect of the Loans (and to otherwise act on behalf of such Borrower pursuant to this Agreement and the other Loan Documents) from Lenders in the name or on behalf of each such Borrower. Administrative Agent may disburse such proceeds to the bank account of

 

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Borrower Representative (or any other Borrower) without notice to any other Borrower or any other Loan Party.

17.2.    Appointment; Documentation and Other Actions. Each Borrower hereby irrevocably appoints and constitutes the Borrower Representative as its agent to (i) receive statements of account and all other notices from Administrative Agent with respect to the Obligations or otherwise under or in connection with this Agreement and the other Loan Documents, (ii) execute and deliver Compliance Certificates and all other notices, certificates and documents to be executed and/or delivered by any Borrower under this Agreement or the other Loan Documents; and (iii) otherwise act on behalf of such Borrower pursuant to this Agreement and the other Loan Documents.

17.3.    Irrevocable Appointment; Reliance. The authorizations contained in this Section 17 are coupled with an interest and shall be irrevocable, and Administrative Agent may rely on any notice, request, information supplied by the Borrower Representative, every document executed by the Borrower Representative, every agreement made by the Borrower Representative or other action taken by the Borrower Representative in respect of any Borrower or other Loan Party as if the same were supplied, made or taken by such Borrower or Loan Party. Without limiting the generality of the foregoing, the failure of one or more Borrowers or other Loan Party to join in the execution of any writing in connection herewith shall not relieve any Borrower or other Loan Party from obligations in respect of such writing.

17.4.    Termination. No purported termination of the appointment of Borrower Representative as agent shall be effective without the prior written consent of Administrative Agent.

SECTION 18

RELEASE.

18.1. Release. In consideration of the agreements of Administrative Agent and the Lenders contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each Loan Party, on behalf of itself and its successors, assigns, and other legal representatives (collectively, the “Releasors” and each, a “Releasee”), hereby absolutely, unconditionally and irrevocably releases, remises and forever discharges Administrative Agent and each Lender, and their successors and assigns, and their respective present and former shareholders, affiliates, subsidiaries, divisions, predecessors, directors, officers, attorneys, employees, agents and other representatives (collectively, Administrative Agent, each Lender, and all such other Persons, the “Releasees”, and each, a “Releasee”), of and from all demands, actions, causes of action, suits, damages and any and all other claims, counterclaims, and rights of set off whatsoever (individually, a “Claim” and collectively, “Claims”) of every name and nature, known or that reasonably should be known, suspected or that reasonably should be suspected, both at law and in equity (and all defenses that may arise out of the foregoing), which such Loan Party or any of its successors, assigns, or other legal representatives may now or hereafter own, hold, have or claim to have against the Releasees or any of them for, upon, or by reason of any circumstance, action, cause or thing whatsoever which has arisen at any time prior to the date of this Agreement for or on account of,

 

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or relating to the Existing Credit Agreement or any of the other Loan Documents or transactions thereunder.

18.2.    Defense. Each Loan Party understands, acknowledges and agrees that the release set forth above may be pleaded as a full and complete defense in respect of the matter covered thereby and may be used as a basis for an injunction against any action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the provisions of such release.

18.3.    Final, Absolute and Unconditional Release. Each Loan Party agrees that no fact, event, circumstance, evidence or transaction which could now be asserted or which may hereafter be discovered shall affect in any manner the final, absolute and unconditional nature of the release set forth above.

18.4.    Covenant. Each Loan Party, on behalf of itself and each Releasor, hereby absolutely, unconditionally, and irrevocably, covenants and agrees with and in favor of each Releasee that it will not sue (at law, in equity, in any regulatory proceeding, or otherwise) any Releasee on the basis of any Claim released, remised, and discharged by such Loan Party pursuant to this Section 18.

[SIGNATURE PAGES FOLLOW]

 

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The parties hereto have caused this Agreement to be duly executed and delivered by their duly authorized officers as of the date first set forth above.

 

BORROWERS:
XPONENTIAL FITNESS LLC, a Delaware limited liability company
By:  

/s/ Anthony Geisler

Name: Anthony Geisler
Title: Chief Executive Officer
ST. GREGORY HOLDCO, LLC, a Delaware limited liability company
By:  

/s/ James Jagers

Name: James Jagers
Title: President
OTHER LOAN PARTIES:

H&W FRANCHISE HOLDINGS LLC, a

Delaware limited liability company

By:  

/s/ Anthony Geisler

Name: Anthony Geisler
Title: Co-Secretary

 

H&W FRANCHISE INTERMEDIATE HOLDINGS LLC, a Delaware limited liability company
By:  

/s/ Anthony Geisler

Name: Anthony Geisler
Title: Co-Secretary

 

Signature Page to Credit Agreement


CLUB PILATES FRANCHISE, LLC, a Delaware limited liability company
By:  

/s/ Anthony Geisler

Name:   Anthony Geisler
Title:   Chief Executive Officer
PILATES LICENSING, LLC, a Delaware limited liability company
By:   Club Pilates Franchise, LLC, a Delaware limited liability company, its sole member
By:  

/s/ Anthony Geisler

Name:   Anthony Geisler
Title:   Chief Executive Officer
CYCLEBAR HOLDCO, LLC, a Delaware limited liability company
By:  

/s/ James Jagers

Name:   James Jagers
Title:   President
CYCLEBAR FRANCHISING, LLC, an Ohio limited liability company
By:   CycleBar Holdco, LLC, a Delaware limited company, its sole member
By:  

/s/ James Jagers

Name:   James Jagers
Title:   President

 

Signature Page to Credit Agreement


CYCLEBAR WORLDWIDE INC., an Ohio corporation
By:  

/s/ James Jagers

Name:   James Jagers
Title:   Vice President
CYCLEBAR INTERNATIONAL INC., an Ohio corporation
By:  

/s/ James Jagers

Name:   James Jagers
Title:   President and Chief Executive Officer
CB IP, LLC, an Ohio limited liability company
By:   CycleBar Holdco, LLC, a Delaware limited company, its sole member
By:  

/s/ James Jagers

Name:   James Jagers
Title:   President
FC JV, LLC, an Ohio limited liability company
By:  

/s/ James Jagers

Name:   James Jagers
Title:   Chief Operating Officer
ST. GREGORY DEVELOPMENT GROUP, LLC, an Ohio limited liability company
By:  

/s/ James Jagers

Name:   James Jagers
Title:   Chief Operating Officer

 

Signature Page to Credit Agreement


FF&E PROCUREMENT COMPANY OF AMERICA, LLC, an Ohio limited liability company
By:  

/s/ James Jagers

Name:   James Jagers
Title:   Chief Operating Officer

 

Signature Page to Credit Agreement


J3T LOGISTICS, LLC, an Ohio limited liability company
By:  

/s/ James Jagers

Name: James Jagers
Title:   Chief Operating Officer
REMOP SERVICES, LLC, an Ohio limited liability company
By:  

/s/ James Jagers

Name: James Jagers
Title:   Chief Operating Officer
LB HYDE PARK, LLC, an Ohio limited liability company
By:  

/s/ James Jagers

Name: James Jagers
Title:   Chief Operating Officer
COWORKING CINCINNATI, LLC, an Ohio limited liability company
By:  

/s/ James Jagers

Name: James Jagers
Title:   Chief Operating Officer
MODULAR OFFICE COMPANY OF AMERICA, LLC, an Ohio limited liability company
By:  

/s/ James Jagers

Name: James Jagers
Title:   Chief Operating Officer

 

Signature Page to Credit Agreement


ROW HOUSE FRANCHISE, LLC, a Delaware limited liability company
By:  

/s/ Anthony Geisler

Name:   Anthony Geisler
Title:   Co-Secretary
ROW HOUSE TUSTIN, LLC, a Delaware limited liability company
By:  

/s/ Anthony Geisler

Name:   Anthony Geisler
Title:   Chief Executive Officer
STRETCH LAB FRANCHISE, LLC, a Delaware limited liability company
By:  

/s/ Anthony Geisler

Name:   Anthony Geisler
Title:   Chief Executive Officer
AKT FRANCHISE, LLC, a Delaware limited liability company
By:  

/s/ Anthony Geisler

Name:   Anthony Geisler
Title:   Chief Executive Officer
AKT STUDIO, LLC, a Delaware limited liability company
By:  

/s/ Anthony Geisler

Name:   Anthony Geisler
Title:   Chief Executive Officer

 

Signature Page to Credit Agreement


CYCLEBAR CANADA FRANCHISING, ULC, a British Columbia unlimited liability corporation
By:  

/s/ James Jagers

Name:   James Jagers
Title:   Vice President
LB FRANCHISING, LLC, an Ohio limited liability company
By:  

/s/ James Jagers

Name:   James Jagers
Title:   Chief Operating Officer
LB PRODUCT, LLC, an Ohio limited liability company
By:  

/s/ James Jagers

Name:   James Jagers
Title:   Chief Operating Officer
LB IP, LLC, an Ohio limited liability company
By:  

/s/ James Jagers

Name:   James Jagers
Title:   Chief Operating Officer
YOGA SIX FRANCHISE, LLC, a Delaware limited liability company
By:  

/s/ Anthony Geisler

Name:   Anthony Geisler
Title:   Chief Executive Officer

 

Signature Page to Credit Agreement


YOGA SIX STUDIO, LLC, a Delaware limited liability company
By:  

/s/ Anthony Geisler

Name:   Anthony Geisler
Title:   Chief Executive Officer
EXPERIENCE BRAND DEVELOPMENT, LLC, a Delaware limited liability company
By:  

/s/ James Jagers

Name:   James Jagers
Title:   Chief Operating Officer
EBD RH, LLC, a Delaware limited liability company
By:  

/s/ James Jagers

Name:   James Jagers
Title:   Chief Operating Officer
EBD SL, LLC, a Delaware limited liability company
By:  

/s/ James Jagers

Name:   James Jagers
Title:   Chief Operating Officer
EBD CP, LLC, a Delaware limited liability company
By:  

/s/ James Jagers

Name:   James Jagers
Title:   Chief Operating Officer

 

Signature Page to Credit Agreement


EBD CB, LLC, a Delaware limited liability company
By:  

/s/ James Jagers

Name:   James Jagers
Title:   Chief Operating Officer
EBD FC, LLC, a Delaware limited liability company
By:  

/s/ James Jagers

Name:   James Jagers
Title:   Chief Operating Officer
EBD AKT, LLC, a Delaware limited liability company
By:  

/s/ James Jagers

Name:   James Jagers
Title:   Chief Operating Officer
EBD YS, LLC, a Delaware limited liability company
By:  

/s/ James Jagers

Name:   James Jagers
Title:   Chief Operating Officer
STG BRAND AMBASSADOR FRANCHISING, LLC, an Ohio limited liability company
By:  

/s/ James Jagers

Name:   James Jagers
Title:   Chief Operating Officer

 

Signature Page to Credit Agreement


BARRE MIDCO, LLC, a Delaware limited liability company
By:  

/s/ Anthony Geisler

Name:   Anthony Geisler
Title:   Chief Executive Officer
PB 1001, LLC, a Delaware limited liability company
By:  

/s/ Anthony Geisler

Name:   Anthony Geisler
Title:   Chief Executive Officer

PB 1002, LLC, a Delaware limited liability

company

By:  

/s/ Anthony Geisler

Name:   Anthony Geisler
Title:   Chief Executive Officer
PB 1005, LLC, a Delaware limited liability company
By:  

/s/ Anthony Geisler

Name:   Anthony Geisler
Title:   Chief Executive Officer
PB 1006, LLC, a Delaware limited liability company
By:  

/s/ Anthony Geisler

Name:   Anthony Geisler
Title:   Chief Executive Officer

 

Signature Page to Credit Agreement


PB 1007, LLC, a Delaware limited liability company
By:  

/s/ Anthony Geisler

Name:   Anthony Geisler
Title:   Chief Executive Officer
PB 1012, LLC, a Delaware limited liability company
By:  

/s/ Anthony Geisler

Name:   Anthony Geisler
Title:   Chief Executive Officer
PB 1016, LLC, a Delaware limited liability company
By:  

/s/ Anthony Geisler

Name:   Anthony Geisler
Title:   Chief Executive Officer
PB 1018, LLC, a Delaware limited liability company
By:  

/s/ Anthony Geisler

Name:   Anthony Geisler
Title:   Chief Executive Officer
PB 1020, LLC, a Delaware limited liability company
By:  

/s/ Anthony Geisler

Name:   Anthony Geisler
Title:   Chief Executive Officer

 

Signature Page to Credit Agreement


PB 1021, LLC, a Delaware limited liability company
By:  

/s/ Anthony Geisler

Name:   Anthony Geisler
Title:   Chief Executive Officer
PB 1029, LLC, a Delaware limited liability company
By:  

/s/ Anthony Geisler

Name:   Anthony Geisler
Title:   Chief Executive Officer
PB 1035, LLC, a Delaware limited liability company
By:  

/s/ Anthony Geisler

Name:   Anthony Geisler
Title:   Chief Executive Officer
PB 1042, LLC, a Delaware limited liability company
By:  

/s/ Anthony Geisler

Name:   Anthony Geisler
Title:   Chief Executive Officer
PB FRANCHISING, LLC, a Delaware limited liability company
By:  

/s/ Anthony Geisler

Name:   Anthony Geisler
Title:   Chief Executive Officer

 

Signature Page to Credit Agreement


PB OPCO LLC, a Delaware limited liability company
By:  

/s/ Anthony Geisler

Name:   Anthony Geisler
Title:   Chief Executive Officer
PBH 1001, LLC, a Delaware limited liability company
By:  

/s/ Anthony Geisler

Name:   Anthony Geisler
Title:   Chief Executive Officer
PB PRODUCT, LLC, a Delaware limited liability company
By:  

/s/ Anthony Geisler

Name:   Anthony Geisler
Title:   Chief Executive Officer
PURE BARRE, LLC, a Delaware limited liability company
By:  

/s/ Anthony Geisler

Name:   Anthony Geisler
Title:   Chief Executive Officer
BARRE HOLDCO, LLC, a Delaware limited liability company
By:  

/s/ Anthony Geisler

Name:   Anthony Geisler
Title:   Chief Executive Officer

 

Signature Page to Credit Agreement


ADMINISTRATIVE AGENT:
MONROE CAPITAL MANAGEMENT ADVISORS, LLC
By:  

/s/ Kyle Asher

Name:   Kyle Asher
Title:   Authorized Signatory

 

Signature Page to Credit Agreement


LENDERS:
MONROE CAPITAL PRIVATE CREDIT FUND II LP
  By: MONROE CAPITAL PRIVATE CREDIT FUND II LLC, its general partner
By:  

/s/ Kyle Asher

Name: Kyle Asher
Title:   Authorized Signatory
MONROE CAPITAL PRIVATE CREDIT FUND II FINANCING SPV LLC
  By: MONROE CAPITAL PRIVATE CREDIT FUND II LP, as Designated Manager
  By: Monroe CAPITAL PRIVATE CREDIT FUND II LLC, its general partner
By:  

/s/ Kyle Asher

Name: Kyle Asher
Title:   Authorized Signatory
MONROE CAPITAL PRIVATE CREDIT FUND II (UNLEVERAGED) LP
  By: MONROE CAPITAL PRIVATE CREDIT FUND II LLC, its general partner
By:  

/s/ Kyle Asher

Name: Kyle Asher
Title:   Authorized Signatory

 

Signature Page to Credit Agreement


MONROE CAPITAL PRIVATE CREDIT FUND II (UNLEVERAGED OFFSHORE) LP
  By: MONROE CAPITAL PRIVATE CREDIT FUND II LLC, its general partner
By:  

/s/ Kyle Asher

Name: Kyle Asher
Title:   Authorized Signatory
MONROE PRIVATE CREDIT FUND A FINANCING SPV LLC
  By: MONROE PRIVATE CREDIT FUND A LP, as its Designated Manager
  By: MONROE PRIVATE CREDIT FUND A LLC, its general partner
By:  

/s/ Kyle Asher

Name: Kyle Asher
Title:   Authorized Signatory
MONROE CAPITAL PRIVATE CREDIT FUND I LP
  By: MONROE CAPITAL PRIVATE CREDIT FUND I LLC, its general partner
By:  

/s/ Kyle Asher

Name: Kyle Asher
Title:   Authorized Signatory

 

Signature Page to Credit Agreement


MONROE CAPITAL PRIVATE CREDIT FUND I FINANCING SPV LLC
 

By: MONROE CAPITAL PRIVATE CREDIT FUND I LP,

as its Designated Manager

  By: MONROE CAPITAL PRIVATE CREDIT FUND I LLC, its general partner
By:  

/s/ Kyle Asher

Name: Kyle Asher
Title:   Authorized Signatory
MONROE CAPITAL MML CLO 2017-1, LTD.
  By: MONROE CAPITAL MANAGEMENT LLC, as Collateral Manager Attorney-in Fact
By:  

/s/ Kyle Asher

Name: Kyle Asher
Title:   Authorized Signatory
MONROE CAPITAL MML CLO VI, LTD.
  By: MONROE CAPITAL MANAGEMENT LLC, as Asset Manager and Attorney-in-fact
By:  

/s/ Kyle Asher

Name: Kyle Asher
Title:   Authorized Signatory

 

Signature Page to Credit Agreement


ANNEX A

LENDERS AND PRO RATA SHARES

 

Lender

 

  

Existing Term
A Loan

 

  

Pro

Rata

Share

 

  

Additional
Term A Loan
Commitment

 

  

Pro

Rata

Share

 

  

Revolving

Loan

 

  

Pro

Rata

Share

 

Monroe Capital

Private Credit Fund II LP

   $1,166,001.93    1.67%    $19,043,491.05    29.15%    $3,429,347.27    34.29%
Monroe Capital
Private Credit Fund II Financing SPV LLC
   $15,823,480.15    22.71%    $0    0%    $0    0%
Monroe Capital
Private Credit Fund II (Unleveraged) LP
   $2,308,803.01    3.31%    $2,587,933.93    3.96%    $492,761.29    4.93%

Monroe Capital

Private Credit Fund II (Unleveraged Offshore) LP

   $2,606,487.52    3.74%    $0    0%    $0    0%

Monroe Capital

Private Credit Fund II-O (Unleveraged Offshore) LP

   $0    0%    $0    0%    $221,339.16    2.21%
Monroe Private
Credit Fund A LP
   $0    0%    $21,631,424.98    33.11%    $4,143,447.72    41.43%

Monroe Private
Credit Fund A

Financing SPV LLC

   $21,904,772.61    31.44%    $0    0%    $0    0%

Monroe Capital

Private Credit Fund I LP

   $1,896,583.41    2.72%    $2,069,256.27    3.17%    1,713,104.56    17.13%
Monroe Capital
Private Credit Fund I Financing SPV LLC
   $14,034,160.32    20.14%    $0    0%    $0    0%
MC Financing SPV I, LLC    $0    0%    $20,000,000    30.61%    $0    0%

Monroe Capital

MML CLO 2017-1, Ltd.

   $4,963,802.41    7.12%    $0    0%    $0    0%
Monroe Capital
MML CLO VI Ltd.
   $4,963,802.41    7.12%    $0    0%    $0    0%


Totals    $69,667,893.77    100%    $65,332,106.23    100%    $10,000,000    100%


ANNEX B

ADDRESSES FOR NOTICES

BORROWER AND BORROWER REPRESENTATIVE:

H&W Franchise Holdings LLC

3185 Pullman St.,

Costa Mesa, CA 92626

Attention: Megan Moen, EVP of Finance

Telephone: (949) 374-0203

With mandatory copies to:

Mark Grabowski

17 Palmer Lane

Riverside, CT 06878

Email: grabowskimark@gmail.com

and

Buchalter

1000 Wilshire Blvd., Suite 1500

Los Angeles, CA 90017

Attention: Jeremy Weitz

Telephone: (213) 891-5285

Facsimile: (213) 896-0400

ADMINISTRATIVE AGENT:

MONROE CAPITAL MANAGEMENT ADVISORS, LLC, as Administrative Agent and a Lender

c/o Monroe Capital LLC

311 South Wacker Drive, Suite 6400

Chicago, Illinois 60606

Attention: Alex Franky

Telephone: (312) 523-2368

Facsimile: (312) 258-8350

With a mandatory copy to reporting@monroecap.com with respect to deliverables pursuant to Sections 10.1.1, 10.1.2 and 10.1.3.

With a mandatory copy to:

Mayer Brown

71 SouthWacker Drive

Chicago, Illinois 60601


Attention: Jaime Gatenio

Telephone: 312-701-8523

Facsimile: 312-706-8722


Schedule 1.1(a)

Disqualified Lenders

1. Cerberus Capital Management and their affiliates


Schedule 9.6

Litigation and Contingent Liabilities

None.


Schedule 9.8

Equity Ownership/Subsidiaries

 

Company    Holder of Equity Interests   

Number and Nature of

Equity Interests

H&W Franchise Intermediate Holdings LLC    H&W Franchise Holdings, LLC    100% of the Membership Interests
Xponential Fitness LLC    H&W Franchise Intermediate Holdings LLC    100% of the Membership Interests
St. Gregory Holdco, LLC    H&W Franchise Intermediate Holdings LLC    100% of the Membership Interests
Club Pilates Franchise, LLC    Xponential Fitness LLC    100% of the Membership Interests
CycleBar Holdco, LLC    Xponential Fitness LLC    100% of the Membership Interests
Pilates Licensing, LLC    Club Pilates Franchise, LLC    100% of the Membership Interests
CycleBar Franchising, LLC    CycleBar Holdco, LLC    100% of the Membership Interests
CB IP, LLC    CycleBar Holdco, LLC    100% of the Membership Interests
CycleBar Worldwide Inc.    CycleBar Holdco, LLC   

665 Shares of Common Stock (which constitutes all of the Common Stock held outside of the treasury of the

Company)

CycleBar International Inc.    CycleBar Holdco, LLC   

850 Shares of Common Stock (which constitutes all of the Common Stock held outside of the treasury of the

Company)

CycleBar Canada Franchising, ULC    CycleBar Worldwide Inc.    100% of the Common Stock (153,853 Shares of Common Stock)
Shred415 Cincinnati, LLC    St. Gregory Holdco, LLC    66.66% of the Membership Interests (49.9% voting)
FC JV, LLC    St. Gregory Holdco, LLC    100% of the Membership Interests
St. Gregory Development Group, LLC    St. Gregory Holdco, LLC    100% of the Membership Interests
Shred415 Franchising, LLC    Shred415 Cincinnati, LLC    50% of the Membership Interests
Shred415 Franchising IP, LLC    Shred415 Franchising, LLC    100% of the Membership Interests
Fueled Collective Franchising, LLC    FC JV, LLC    60% of the Membership Interests


Fueled Collective IP, LLC

  

FC JV, LLC

  

60% of the Membership Interests

FF&E Procurement Company of America, LLC   

St. Gregory Holdco, LLC

  

100% of the Membership Interests

J3T Logistics, LLC

  

St. Gregory Holdco, LLC

  

100% of the Membership Interests

REMOP Services, LLC

  

St. Gregory Holdco, LLC

  

100% of the Membership Interests

LB Hyde Park, LLC

  

St. Gregory Holdco, LLC

  

100% of the Membership Interests

Coworking Cincinnati, LLC

  

St. Gregory Holdco, LLC

  

100% of the Membership Interests

Modular Office Company of America, LLC   

St. Gregory Holdco, LLC

  

100% of the Membership Interests

LB Franchising, LLC

  

St. Gregory Holdco, LLC

  

100% of the Membership Interests

LB IP, LLC

  

St. Gregory Holdco, LLC

  

100% of the Membership Interests

LB Product, LLC

  

St. Gregory Holdco, LLC

  

100% of the Membership Interests

AKT Franchise, LLC

  

Xponential Fitness LLC

  

100% of the Membership Interests

Row House Franchise, LLC

  

Xponential Fitness LLC

  

100% of the Membership Interests

Stretch Lab Franchise, LLC

  

Xponential Fitness LLC

  

100% of the Membership Interests

Row House Tustin, LLC

  

Row House Franchise, LLC

  

100% of the Membership Interests

Yoga Six Franchise, LLC

  

Xponential Fitness, LLC

  

100% of the Membership Interests

Experience Brand Development, LLC   

St. Gregory Holdco, LLC

  

100% of the Membership Interests

EBD RH, LLC

   Experience Brand Development, LLC   

100% of the Membership Interests

EBD SL, LLC

   Experience Brand Development, LLC   

100% of the Membership Interests

EBD CP, LLC

   Experience Brand Development, LLC   

100% of the Membership Interests

EBD CB, LLC

   Experience Brand Development, LLC   

100% of the Membership Interests


EBD FC, LLC

   Experience Brand Development, LLC   

100% of the Membership Interests

EBD AKT, LLC

   Experience Brand Development, LLC   

100% of the Membership Interests

EBD YS, LLC

   Experience Brand Development, LLC   

100% of the Membership Interests

PB 1001, LLC

  

PB OPCO, LLC

  

100% of the Membership Interests

PB 1002, LLC

  

PB OPCO, LLC

  

100% of the Membership Interests

PB 1005, LLC

  

PB OPCO, LLC

  

100% of the Membership Interests

PB 1006, LLC

  

PB OPCO, LLC

  

100% of the Membership Interests

PB 1007, LLC

  

PB OPCO, LLC

  

100% of the Membership Interests

PB 1012, LLC

  

PB OPCO, LLC

  

100% of the Membership Interests

PB 1016, LLC

  

PB OPCO, LLC

  

100% of the Membership Interests

PB 1018, LLC

  

PB OPCO, LLC

  

100% of the Membership Interests

PB 1020, LLC

  

PB OPCO, LLC

  

100% of the Membership Interests

PB 1021, LLC

  

PB OPCO, LLC

  

100% of the Membership Interests

PB 1029, LLC

  

PB OPCO, LLC

  

100% of the Membership Interests

PB 1035, LLC

  

PB OPCO, LLC

  

100% of the Membership Interests

PB 1042, LLC

  

PB OPCO, LLC

  

100% of the Membership Interests

PB Franchising, LLC

  

Pure Barre, LLC

  

100% of the Membership Interests

PB OPCO, LLC

  

Pure Barre, LLC

  

100% of the Membership Interests

PB Product, LLC

  

Pure Barre, LLC

  

100% of the Membership Interests


PBH 1001, LLC

  

Pure Barre, LLC

  

100% of the Membership Interests

Pure Barre, LLC (f/k/a PB Holdco, LLC)

  

Barre Midco, LLC

  

100% of the Membership Interests

Barre Midco, LLC

  

Barre Holdco, LLC

  

100% of the Membership Interests

STG Brand Ambassador Franchising, LLC   

St. Gregory Holdco, LLC

  

100% of the Membership Interests

Yoga Six Studio, LLC

  

Yoga Six Franchise, LLC

  

100% of the Membership Interests

AKT Studio, LLC

  

AKT Franchise, LLC

  

100% of the Membership Interests

Barre Holdco, LLC

  

Xponential Fitness, LLC

  

100% of the Membership Interests


Schedule 9.13

Reportable Transaction

None.


Schedule 9.17

Real Property

 

Company    Address    Owned/Leased    Lessor
St. Gregory Development Group, LLC    Rookwood Exchange, Norwood, Ohio,
3825 Edwards Road,
#103, Cincinnati,
Ohio 45209
   Leased    Rookwood Exchange Operating LLC
LB Hyde Park, LLC   

Rookwood Exchange,

Norwood, Ohio,
3825 Edwards Road, Suite 102A, Cincinnati,

Ohio 45209

   Leased   

Rookwood Exchange

Operating, LLC

Coworking Cincinnati, LLC   

Rookwood Exchange,

Norwood, Ohio,
3825 Edwards Road,
#103, Cincinnati,
Ohio 45209

   Leased   

Rookwood Exchange

Operating LLC

Coworking Cincinnati, LLC   

Rookwood Exchange, Norwood, Ohio, 3825 Edwards Road, 2nd Floor, Cincinnati,

Ohio 45209

   Leased    Rookwood Exchange Operating LLC
Club Pilates Franchise, LLC   

3001 Red Hill

Avenue, Building 1,
Suite 103, Costa Mesa CA, 92626

   Leased    Orange County Department of Education Facilities Corporation
Xponential Fitness LLC    17877 Von Karman Avenue, Irvine, CA 92614    Leased    Quintana Office Property, LLC
Row House Tustin, LLC    15020 Kensington Park Drive Suite J100, Tustin, CA 92870    Leased    2C Tustin Legacy, LLC
Stretch Lab Franchise, LLC    30271 Golden Lantern, Suite C, Laguna Niguel, CA 92677    Leased    Shea Properties (Laguna Heights Marketplace, LLC)
Club Pilates Franchise LLC    2270 Northwest
Parkway #120, Marietta, GA
   Leased    Avistone Northwest, LLC


Club Pilates Franchise LLC   

3186 Pullman St.,

Costa Mesa, CA 92626 (5275 sf warehouse)

   Leased    Watermark OC Church
Club Pilates Franchise LLC   

3186 Pullman St.,

Costa Mesa, CA 92626 (3653 sf warehouse expansion)

   Leased    Watermark OC Church
Club Pilates Franchise LLC    17877 Von Karman Avenue, Irvine, CA 92614    Leased    Quintana Office Property, LLC
PB 1001, LLC   

522 E Woolbright

Road #220,

Boynton Beach,

FL 33435

   Leased    E&A Sunshine, LLC
PBH 1001, LLC   

1512 Larimer Street, Suite 20R,

Denver, CO 80202

   Leased   

Writer Square Investors,

LLC

PB 1002, LLC    2408 North Federal Highway,
Ft Lauderdale, FL 33305
   Leased    Union Planters (E&A), LLC
PB 1005, LLC   

14932 S. Lagrange Road,

Orland Park, IL 60462

   Leased    Park Pointe Plaza Associates Joint Venture
PB 1006, LLC    107 Turnpike Street, North Andover, MA 01845    Leased   

Eaglewood Properties,

LLC

PB 1007, LLC    8025 Jericho Turnpike, Woodbury, NY 11797    Leased    8025 Realty Corp
PB 1012, LLC    345 Main Street, Huntington, NY 11743    Leased    345 Main Street Associates LLC


PB 1016, LLC    884 Eastlake Parkway, Suite No. 1624, Chula Vista,
CA 91914
   Leased    VWE Owner, LLC
PB 1018, LLC    319 Franklin Avenue, Suite 109, Wyckoff, NJ 07481    Leased    Munico Associates
PB 1020, LLC   

530 Market Street,

Lynnfield, MA 01940

   Leased    Market Street South LLC
PB 1021, LLC    3575 Long Beach Road, Oceanside, NY 11572    Leased    G&L Building Corp.
PB 1029, LLC   

9834 Glades Road,

Suite C-12, Boca Raton, FL 33434

   Leased   

RREEF AMERICA

REIT II CORP. J

PB 1035, LLC    2 Cedar Street, Bronxville, NY 10708    Leased    Mosbacher Properties Group LLC
PB 1042, LLC    232 Route 25A, East Setauket, NY 11733    Leased    Dinoffer & Tobias, LLC
PB Holdco, LLC    154 Magnolia St., Spartanburg, SC 29306    Leased    Spring and Magnolia, LLC
PB Holdco, LLC    100 Dunbar Street, Suite 301, Spartanburg, SC 29306    Leased    Opportunity Block, LLC


Schedule 9.19

Intellectual Property

None.


Schedule 9.21

Labor Matters

None.


Schedule 9.27

Franchise Matters

(a)

 

  1.

Area Representative Rights have been granted to the following Area Representatives for LBF:

Robert Palazzi and Diane Palazzi

Business Entity: Bob Palazzi, LLC

Agreement: LBF AR Agreement_LBF_Bob Palazzi, LLC_Eff. 6/26/17

As modified by a Memorandum of Understanding dated 6/26/17

Territory: New Jersey counties – Bergen, Essex, Passaic, Morris, Union, Middlesex, Somerset

Address: 59 May Dr., Chatham, NJ 07928

Phone: (973) 408-9019

Carl Kirkham Peacock and Pamela J. Tanase

Business Entity: N/A

Agreement: LBF AR Agreement_LBF_C.Peacock&P.Tanase_Eff. 4/20/17

As modified by a Memorandum of Understanding dated 4/20/17

Territory: Los Angeles, CA

Address: 220 Salido del Sol, Santa Barbara, CA 93109

Phone: Unknown

 

  2.

Area Development Rights have been granted to the following Area Developers for S415:

Jane K. Fletcher

Business Entity: N/A

Agreement: S415 Development Agreement_S415_J.Fletcher_Eff. 09/08/17

Territory: Denver, CO

Address: 1169 South York Street, Denver, CO 80210

Phone: (303) 284-6739

David Jones and Kathleen Jones

Business Entity: N/A

Agreement: S415 Development Agreement_S415_D.Jones & K.Jones_Eff. 9/25/17

Territory: Louisville, KY

Address: 516 Saddle Ridge Dr. Knoxville, TN 37934

Phone: (865) 567-1163

Megan E. Lawler and Timothy G. Lawler

Business Entity: N/A

Agreement: S415 Development Agreement_S415_M.Lawler & T.Lawler_Eff. 09/11/17

Territory: Denver, CO

Address: 3341 Vrain Street, Denver, CO 80212


Phone: (708) 334-7108

Craig A. Brummell and Marta R. Brummell

Business Entity: N/A

Agreement: S415 Development Agreement_S415_C.Brummell & M.Brummell_Eff. 09/12/2017

Territory: Denver, CO

Address: 2709 Twixwood Lane, South Bend, IN 46617

Phone: (574) 286-9026

Corey Goldberg, Sara Goldberg, and Domenic V. Poeta

Business Entity: N/A

Agreement: S415 Development Agreement_S415_C.Goldberg, S.Goldberg, & D.Poeta_Eff. 09-12-2017

Territory: Milwaukee, WI

Address: 1350 Bayberry Lane, Deerfield, IL 60015

Phone: (847) 912-1289

Katie Blickhan, Scott Blickhan, Chad Hemminger & Sara Wortman

Business Entity: N/A

Agreement: S415 Development Agreement_S415_K.Blickhan & S.Blickhan & C.Hemminger & S.Wortman_Eff. 09/29/2017

Territory: Columbus, OH

Address: 7749 Mellacent Dr. Columbus, OH 43235

Phone: (614) 769-1728

Jeff Hall

Business Entity: N/A

Agreement: S415 Development Agreement_S415_J.Hall_Eff. 10/28/2017

Territory: Memphis, TN

Address: 717 Riverside Drive, Unit 1509, Memphis, TN 38103

Phone: (901) 335-1292

Giovanni De Choudens & Lilliam Cordero

Business Entity: N/A

Agreement: S415 Development Agreement_S415_G.DeChoudens & L.Cordero_Eff. 12/27/2017

Territory: San Francisco, CA

Address: 762 Liquidamber Pl. Danville, CA 94506

Phone: (479) 366-2261

Salil Bhatnagar

Business Entity: N/A

Agreement: S415 Development Agreemen_S415_S.Bhatnagar_Eff. 02/22/2018

Territory: Northern Virginia

Address: 22354 N. Greenmeadow Drive, Kildeer, IL 60047

Phone: (312) 420-0105


Pure Barre

 

Schedule 9.27(a)

Dated: June 10, 2015

                         
     Location   Street   City   State   Franchisee Entity Name   Franchisee entity address   Franchisee Phone(s)   Royalty Rate on
Services Sales
  Royalty Rate on
Product Sales
  Ad Fee Rate   Minimum
Monthly
Royalty
  Minimum Cumulative Royalties   Franchise
Agreement
(“FA”) Sign
Date
  Renewal Date (if not
5 Years after FA
Sign Date)
  Signed Amendment
1   Lexington, KY   867 East High Street, Suite 150   Lexington   Kentucky   Pure A&E LLC   867 E. HIGH ST., STE. 150, LEXINGTON, KY 40502   Amanda Arnold (859) 335-2391   6.0%   6.0%   0.0%   $750   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   12/24/2011        
2   Ann Arbor, MI   3139 Oak Valley Drive   Ann Arbor   Michigan   Tumnus LLC   12769 Dennison Road, Milan, MI 48160   Victoria L Gordon (734) 731-7178   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   6/5/2014        
3   Los Angeles, CA - Brentwood   11819 Wilshire Boulevard, Suite 213   Los Angeles   California   Marni Chaikin and Kayla Allen   NA   Marni Chaikin (310) 463-7873   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   12/23/2013        
4   Newport Beach, CA   234 E. 17th Street, Suite 116   Costa Mesa   California   Monica Pommier   NA   Monica Pommier (858) 663-0554   8.0%   8.0%   0.0%   $1,000   NA   1/24/2009   Autorenewed    
5   Nashville, TN - Green Hills   2207 Crestmoor Road, Suite 203   Nashville   Tennessee   Deck-Cort, LLC   330 Franklin Rd. Suite 137A, Brentwood, TN 37027   Kady Decker (615) 504-6520   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   12/22/2014        
6   Saginaw, MI   30 N Center Road   Saginaw   Michigan   PB Saginaw, LLC   30 N. Center Road, Saginaw, MI 48638   Ann Marie Goidosik (989) 793-2673   0.0%   0.0%   0.0%   $750   NA   6/9/2014   9/30/2018    
7  

Denver, CO -

Cherry Creek

  201 University Boulevard, Suite 107   Denver   Colorado   LJGirardot, Inc.   2621 South Grant Street, Denver, CO 80210   Lindsey Girardot Teets (720) 276-1493   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   8/21/2014      

8   Birmingham, AL - Homewood   2826 18th Street South   Birmingham   Alabama   dlain, LLC   1827 Ridge Ave, Apt. #6, Montgomery, AL 36106   Danielle Davis (859) 621-1253   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   9/12/2014      

9   Los Gatos, CA   50 University Avenue, Suite B-101   Los Gatos   California   Emily’s Health & Fitness Ltd. Liability Co.   17830 Bruce Ave. Los Gatos, CA 95030   Emily Pearl (408) 458-6811   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   9/25/2014        
10   Irvine, CA   6791 Quail Hill Parkway   Irvine   California   Mr Pommier, Inc.   234 E. 17th Street, Suite 116, Costa Mesa, CA 92627   Monica Pommier Grubin (858) 663-0554   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   9/15/2014      

11   Brentwood, TN   330 Franklin Road, Suite 137A   Brentwood   Tennessee   Yoakum Holdings, LLC   330 Franklin Rd. Suite 137A, Brentwood, TN 37027   Crystal Hinz (858) 245-9604   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   2/3/2015        
12   Charlotte, NC - Myers Park   603 Providence Road   Charlotte   North Carolina   Pure Barre Ballantyne, LLC   7516 Hwy 70 So., Suite 150, Nashville, TN 37221   G.H. Christianson, II & Ellen Christianson (615) 300-8787   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   3/17/2015      

13   Boca Raton, FL   350 Esplanade Royal Palm Place, Suite 56   Boca Raton   Florida   East Boca PB, LLC   350 Esplanade #56, Boca Raton FL, 33432   Amy Blair Booth (954) 895-9829   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   1/29/2015      

14   Mission Viejo, CA   28321 Marguerite Parkway, Suite 201   Mission Viejo   California   Monica Pommier   NA   Monica Pommier (858) 663-0554   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   4/10/2010        
15   Seattle, WA - University   5001 25th Avenue NE, Suite 102   Seattle   Washington   Sami Dinsmore Sweeney   NA   Sami Dinsmore Sweeney (206) 595-2092   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   4/24/2010      

16   Dallas, TX - University Park   5919 Greenville Avenue   Dallas   Texas   Pure Barre Partners, LLC   3437 Ashbury St., Dallas TX, 75205   Garrett Mills (918) 671-5787   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   3/30/2010   6/30/2015  

17   Philadelphia, PA - Center City   503 W. Lancaster Avenue   Wayne   Pennsylvania   elleon, LLC   1701 Walnut Street, Philadelphia, PA 19103   Noelle Zane (267) 234-7825   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   1/16/2015      

18   Santa Rosa Beach, FL - 30a   174 Watercolor Way, Suite 101   Santa Rosa Beach   Florida   AS Fit, LLC   174 Watercolor Way, Suite 101, Santa Rosa Beach, FL 32459   Ashley Singleton (850) 231-0147   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   4/29/2015        
19   Scottsdale, AZ   10050 North Scottsdale Road, Suite 107   Scottsdale   Arizona   Weyand Enterprises, LLC   10050 N. Scottsdale Road, Suite 107, Scottsdale, AZ 85253   Marirose Anne Weyand (989) 529-8170   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   2/25/2015      

20   Chattanooga, TN - East Brainerd   1414 Jenkins Road, Suite 122   Chattanooga   Tennessee   Amanda Harkins Holmes   1414 Jenkins Rd., Chattanooga TN, 37421   Amanda Harkins Holmes (423) 468-4960   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   6/27/2010        
21   Austin, TX - Westlake   3267 Bee Caves Road   Austin   Texas   Anani Star, LLC   6661 Valley Park Dr., Nashville TN, 37221   Rashanna Moss-Laury (512) 574-8644   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   3/12/2010      

22   Atlanta, GA - Buckhead   3145 Peachtree Road NE   Atlanta   Georgia   Mo Deck LLC   301 Maybelle Lane, Nashville, TN 97205   Kady Decker (615) 504-6520   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   3/10/2015      

23   Denver, CO - Greenwood Village   5375 Landmark Place, Suite 109   Greenwood Village   Colorado   B Studios, LLC   5375 Landmark Place #109 Greenwood Village, CO 80111   Briget Russomanno (303) 953-9367   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   3/16/2015      

24   Germantown, TN   7820 Poplar Avenue, Suite 12   Germantown   Tennessee   Laurenzi & Morgan, LLC   800 Dent Rd, Eads, TN 38028   Kimberly Morgan (901) 484-0705   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   6/5/2010        
25   Las Vegas, NV   3330 S. Hualapai Way #140   Las Vegas   Nevada   L.E.X. Barre, LLC   2635 Cottonwillow St, Las Vegas, NV 89135   Lauren O’Nan (702) 525-3454   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   4/29/2015      

26   Chapel Hill, NC   608 Meadowmont Village Circle   Chapel Hill   North Carolina   PB Apex, LLC   15 Pilling Place, Durham, NC 27707   Lynn Toms (919) 419-1361   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   6/24/2010      

27   Denver, CO - Highlands   3420 West 32nd Ave   Denver   Colorado   LJGirardot Highlands, LLC   3420 West 32nd Avenue, Denver, CO 80211   Lindsey Girardot Teets (720) 276-1493   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   3/3/2015      

28   Raleigh, NC   4209-134 Lassiter Mill Road   Raleigh   North Carolina   PB Apex LLC   507 Guilford Circle, Raleigh, NC 27608   Ami Desai Seier & Denise Alala (919) 896-7464   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   4/20/2015      

29   Atlanta, GA - Dunwoody   5539 Chamblee Dunwoody Road   Dunwoody   Georgia   Mo Deck LLC   150 Saddleview Run, Atlanta GA, 30350   Deb Perlstein (404) 931-9643   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   1/31/2014      

30   Bellevue, WA   909 112th Avenue NE, Suite 107   Bellevue   Washington   IMAS Holdings   349 NE 54th st, Seattle, WA 98105   Sami Dinsmore Sweeney (206) 595-2092   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   9/16/2010      

31   Huntington Beach, CA   7101 Yorktown Avenue, Suite 101   Huntington Beach   California   Mr Pommier, Inc.   234 E. 17th Street, Suite 116, Costa Mesa, CA 92627   Monica Pommier Grubin (858) 663-0554   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   9/15/2014      

32   Boulder, CO   1750 29th Street, Suite 2026   Boulder   Colorado   Suzanne Suzanne LLC   1750 29th Street # 2026, Boulder, CO 80301   Michelle Metz & Shalisa Pouw (303) 443-3054   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   5/29/2015        
33   Vail, CO   216 Main Street, Suite C-103   Edwards   Colorado   JAAG LLC   216 Main Street, Unit C-103, Edwards, CO 81632   Rebecca Pellican (720) 810-5488   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   6/5/2014        
34   Louisville, KY - Westport Village   1321 Herr Lane, Suite 180   Louisville   Kentucky   2 Chicks & A Nickel, LLC   517 Culpepper Rd, Lexington, KY 40502   Karen Handel (859) 559-1106   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   9/28/2010      

35   Charlotte, NC - Ballantyne   8430 Rea Road, Suite 120   Charlotte   North Carolina   PB Ballentyne LLC   5250 Virginia Way, Suite 100, Brentwood, TN 37027   Bratschi Johnson (615) 429-0886   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   8/18/2010        
36   New Orleans, LA   3923 Magazine Street   New Orleans   Louisiana   Studio J, L.L.C.   3923 Magazine st, New Orelans, LA 70115   Jennifer L Thomas (985) 707-5686   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   10/14/2010      

37   Auburn, AL   2415 Moores Mill Road, Suite 240   Auburn   Alabama   Barre Investments, LLC   2415 Moores Mill Road, Suite 240, Auburn, AL 36830   Ashley Caldwell (334) 887-0007   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   4/14/2015        
38   Columbus, OH - Grandview Heights   960 West 5th Avenue   Columbus   Ohio   Pure Barre Columbus, LLC   960 W. Fifth Ave, Columbus OH, 43212   Emily C. Johnson (989) 450-1189   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   10/25/2010        
39   Denver, CO - Lone Tree   9360 Station Street, Suite 150   Lone Tree   Colorado   Lindsey Girardot   3420 W. 32ND Ave, Denver, CO 80211   Lindsey Girardot (720) 276-1493   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   3/10/2010      

40   Ridgeland, MS   201 Northlake Avenue, Suite 107   Ridgeland   Mississippi   SMK Dining LLC   1922 West End Avenue, Nashville, TN, 37203   Heidi Hogrefe (615) 500-9574   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   10/18/2010        
41   Huntsville, AL   4769 Whitesburg Drive S, Suite 201   Huntsville   Alabama   Pure Hunt, LLC   4769 Whitesburg Drive, Suite 201, Huntsville, AL 35802   Meredith Davis (330) 607-7270   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   12/13/2010        
42   Birmingham, AL - 280   5426 Highway 280 East, Suite 6   Hoover   Alabama   dlain280, LLC   2415 Agnew St, Montgomery, AL 36106   Deanna Pizitz 205-994-1343   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   12/2/2010        
43   San Diego, CA - Hillcrest   3650 5th Avenue, Suite 102   San Diego   California   Pure Barre Hillcrest, LLC   3650 Fifth Avenue, Suite 102, San Diego, CA 92103   Christina Douglas (760) 887-9945   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   3/27/2014        
44   Newton, MA   1300 Centre Street   Newton   Massachusetts   Rachel Roberts LLC   1300 Centre Street, Newtown MA, 02459   Rachel Roberts (508) 733-4777   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   12/9/2010        
45   Broomfield, CO   11961 Bradburn Boulevard, Suite 500   Westminster   Colorado   Carrie Ray   3230 Balsam St., Wheat Ridge, CO 80033   Carrie Ray (720) 480-7396   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   5/13/2010        
46   Phoenix, AZ   4219 E. Indian School Road, Suite 101   Phoenix   Arizona   Weyand Enterprises, LLC   9590 E Ironwood Square Drive, STE 105, Scottsdale, AZ 85258   Marirose A Weyand (989) 529-8170   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   1/26/2011      

47   Redondo Beach, CA   403 North Pacific Coast Highway, Suite 200   Renondo Beach   California   Beach Wilson Partners, LLC   409 N. Pacific Coast Highway, #576, Redondo Beach, CA 90277   Keri Wilson (310) 415-3662   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   8/6/2013   2/7/2016    
48   Jackson, MS   4500 I-55 North, Suite 235-A   Jackson   Mississippi   SMK Dining LLC   1922 West End Avenue, Nashville, TN, 37203   Heidi Hogrefe (615) 500-9574   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   1/31/2011        
49   Austin, TX - Arboretum   10710 Research Boulevard, Suite 316   Austin   Texas   Anani Star, LLC   2215 Abbot Martin Rd, Apt 111, Nashville, TN 37215   Rashanna Moss-Laury (512) 574-8644   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   2/13/2011        
50   Westfield, NJ   708 North Avenue   Westfield   New Jersey   Pure Venture, LLC   524 Cary Place, Westfield, NJ 07090   Elizabeth M Flynn (732) 995-4083   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   11/15/2010        
51   Sarasota, FL   3800 S. Tamiami Trail, Suite 16   Sarasota   Florida   PB SRQ, LLC   3800 S. Tamiami Trail, Unit #16, Sarasota, FL 34239   Jodi H Bearman (205) 936-9377   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   5/1/2014      

52   Mandeville, LA   1814 North Causeway Boulevard, Suite 8   Mandeville   Louisiana   Studio 116, LLC   1814 North Causeway Boulevard, Suite 8, Mandeville, LA 79448   Hope Clay (601) 201-8153   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   4/18/2014        
53   Anaheim Hills, CA   5655 E La Palma Avenue, Suite 145   Anaheim Hills   California   Michele Fitness, Inc   7700 E Misty Glen CT, Anaheim, CA 92808   Michele McCutcheon (949) 735-9980   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   3/29/2011        
54   Hollywood, CA   7519 Sunset Boulevard   Los Angeles   California   PB Hollywood, LLC   7519 W. Sunset Blvd, Los Angeles, CA 90046   Vanessa Henderson (760) 822-2001   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   3/5/2014      

55   Okemos, MI   3544 Meridian Crossings Drive, Suite 160   Okemos   Michigan   Glowen, LLC   915 N. Michigan Ave, Howell, MI 48843   Dana Owen (269) 275-9875   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   7/8/2014        
56   Ft. Wright, KY   3420 Valley Plaza Parkway   Ft. Wright   Kentucky   Greater Cincinnati Pure Barre, LLC   321 Albany Road, Lexington, KY 40502   Kelly Dicken (859) 983-4969   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   5/17/2011        
57   Cincinnati, OH   3083 Madison Road   Cincinnati   Ohio   The Ranini Group   NA   Lea Warner (859) 221 8487   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   6/15/2011        
58   Mobile, AL   9 Du Rhu Drive, Suite 368   Mobile   Alabama   Pure Bay, LLC   2415 Agnew St, Montgomery, AL 36106   Ashlye Hix (251) 786-3639   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   4/25/2011        
59   Beverly Hills, CA   231 S. La Cienega Boulevard   Beverly Hills   California   KW Health   1155 S. Brand Ave, #2204, Los Angeles, CA   Kelsey J. Rood (310) 469-3787   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   3/22/2011        
60   Charleston, SC - Mt. Pleasant   919 Houston Northcutt Blvd   Mt. Pleasant   South Carolina   Pure Barre Charleston LLC   2 Office Park Court, Columbia, SC 29223   Jenn Vannatta (843) 725-8546   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   4/26/2011        
61   Philadelphia, PA - Main Line   1701 Walnut Street, 4th Floor   Philadelphia   Pennsylvania   elleon, LLC   1703 Addison Street, Philadelphia, PA 19146   Noelle Zane (267) 234-7825   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   4/19/2011      

62   Memphis, TN   4700 Spottswood Avenue   Memphis   Tennessee   Pure Barre Germanto   NA   Kim Morgan (901) 484-0705   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   4/12/2011        
63   Mason, OH   5939 Deerfield Boulevard, Suite 103   Mason   Ohio   Greater Cincinnati Fitness, LLC   5939 Deerfield Blvd, Mason, OH 45040   Kelly Dicken Newman (513) 204-1978   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   2/11/2015        
64   New York, NY (Upper West Side (Columb   1841 Broadway, Suite 330   New York   New York   Pure Barre Manhattan, LLC   1010 Northern Boulevard, Suite 322, Great Neck, NY 11021   Kaitlin Vandura (704) 651-9381   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   3/22/2011      

65   Aspen, CO   620 East Hyman Street   Aspen   Colorado   Jordan Bullock   NA   Jordan Bullock (720) 331-8878   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   6/28/2011        
66   Grand Rapids, MI   2107 E Beltline Avenue NE   Grand Rapids   Michigan   Studio Elza-Kemp LLC   2107 E. Bettline Ave NE, Suite C, Grand Rapids, MI 49525   Kiersten Kemp (989) 488-8883   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   8/29/2011        
67   Southlake, TX*   480 W. Southlake Boulevard, Suite 131   Southlake   Texas   PL Blondie LLC   5900 Lovell Ave, Suite A, Fort Worth, TX 76107   Lindsey White (214) 718-9424   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   7/11/2011        
68   Palo Alto, CA   299 California Ave, Palo Alto, CA 94306   Palo Alto   California   Emily’s Health & Fitness LLC   46 W Santa Clara St., San Jose, CA 95113   Emily Najour [Pearl] (408) 458-6811   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   12/28/2011        
69   Indianapolis, IN - Carmel*   726 Adams Street, Suite 130   Carmel   Indiana   Rebecca J. Retrum   NA   Rebecca J. Retrum (317) 331-5128   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   10/8/2011        
70   Minneapolis, MN - St. Louis Park*   5620A W. 36th Street   Minneapolis   Minnesota   RK Healthy and Wellness LLC   4929 5th Ave S, Minneapolis, MN 55419   Kelsey Rood (310) 469-3787   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   7/18/2011        
71   Pasadena, CA*   107 South Fair Oaks Avenue, Suite 109   Pasadena   California   Harden & Goedhart, LLC   1200 Highland Dr, Newport Beach, CA 92660   Alexis Hovden (714) 642-1009   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   9/12/2011        
72   Bozeman, MT   34 East Mendenhall Street, Suite R-6   Bozeman   Montana   Unsinkable LLC   300 N. Wilson Ave, Suite 3004, Bozeman, MT 59715   R Brooke Amini (406) 581-9591   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   7/23/2014        
73   Bradenton, FL - Lakewood Ranch   5275 University Parkway, Suite 131   Bradenton   Florida   Pure Barre Lakewood Ranch LLC   5275 University Parkway, Suite 131, Bradenton, FL 34201   Meg Wittmer (941) 320-4005   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   12/31/2014        
74   Houston, TX - Voss Road   1379 South Voss Road, Suite B   Houston   Texas   Anani Houston, LLC   2215 Abbot Martin Rd, Apt 111, Nashville, TN 37215   Kathryn Holleman (832) 788-8246   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   2/1/2012        
75   Columbus, OH - Dublin   3650 W. Dublin-Granville Road   Columbus   Ohio   Pure Barre Columbus   960 W. Fifth Ave, Columbus OH, 43212   Emily C. Johnson (989) 450-1189   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   11/11/2011        
76   Charlottesville, VA   2200 Old Ivy Road   Charlottesville   Virginia   Pure Barre Charlottesville, LLC   603 Providence RD, Charlotte, NC 28207   G.H. Christianson, II (980) 329-4640   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   1/24/2012        
77   Draper, UT*   280 East 12300 South, Suite 104   Draper   Utah   Stephanie Blodgett   NA   Stephanie Blodgett (801) 243-9677   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   12/19/2011        
78   Jacksonville Beach, FL   1056 3rd Street North   Jacksonville Beach   Florida   The Wallace Group, LLC   214 North Tryon Street, Charlotte, NC, 28202   Lacey Wallace (904) 412-8806   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   3/13/2012        
79   Baton Rouge, LA*   3033 Perkins Road, Suite B   Baton Rouge   Louisiana   Pure Passion BR-1 LLC   3033 Perkins Road, Suite B, Baton Rouge, LA 70808   Amy M Parkman (205) 790-1060   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   11/16/2011        
80   Greenville, SC - Augusta Road   1922 Augusta Street, Suite 113   Greenville   South Carolina   Barre 3, LLC   111 Williams Street, Greenville, SC 29601   Lauren Wilson (704) 975-9540   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   3/16/2012        
81   Louisville, KY - Summit*   4284 Summit Plaza Drive   Louisville   Kentucky   Barre Kentucky LLC   3800-A Springhurst Blvd., Louisville, KY 40241   Annie S Locke (270) 313-5636   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   3/9/2012        
82   Tuscaloosa, AL   1520 McFarland Boulevard North   Tuscaloosa   Alabama   PBT-TOWN, LLC   3344 Sandhurst Road, Birmingham, AL 35223   Jodi Bearman (205) 936-9377   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   5/7/2012        
83   Atlanta, GA - Johns Creek   9810 Medlock Bridge Road, Suite 500   Duluth   Georgia   Mo Deck LLC   896 Beaverbrook Dr. Atlanta, GA 30318   Philip Russ (Burton Franchising, LLC) (404) 822-0675   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   7/25/2014      

84   Miami, FL - Coral Gables   205 Altara Avenue   Miami   Florida   PB Miami LLC   7 Trinity Drive, Lumboroton, NC 28358   Ami Seier (303) 918-3889   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   8/10/2011      

85   Chattanooga, TN - North Shore   214 Manufacturers Boulevard   Chattanooga   Tennessee   Amanda Holmes   NA   Amanda J Holmes (423) 468-4960   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   6/13/2012        
86   New York, NY - Union Square   78 Fifth Avenue, 4th Floor   New York   New York   Pure Barre Fifth Avenue, LLC   1841 Broadway, Room 330, New York, NY 10023   Kaitlin Vandura (704) 651-9381   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   7/12/2012      

87   Cary, NC   1412 Village Market Place   Cary   North Carolina   PB Apex, LLC   507 Guilford Circle, Raleigh, NC 27608   Ami Seier (303) 918-3889   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   5/10/2012   4/17/2015    
88   Pittsburgh, PA - Shadyside   5986 Penn Circle South, Suite 202   Pittsburgh   Pennsylvania   LGD Studios   5986 Penn Circle South, Suite 202 Pittsburgh, PA 15206   Laura Dick (412) 427-1234   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   4/20/2012      

89   Seattle, WA - Queen Anne   500 Mercer Street   Seattle   Washington   IMAS Holdings, LLC   349 NE 54th st, Seattle, WA 98105   Sami Sweeney (206) 595-2092   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   3/19/2012      

90   Winston-Salem, NC - Reynolda Village   114K Reynolda Village   Winston-Salem   North Carolina   Pure Barre Piedmont Triad, LLC   925 Euclid Ave. Suite 2020 Cleveland, OH 44115   Carolyn Hern (202) 538-4980   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   5/12/2012        
91   South Tampa, FL   3830 West Neptune Street, Suite C5   Tampa   Florida   Pure Barre Tampa, LLC   3830 West neptune St, Ste. C5, Tampa, FL 33629   Eleanor McComb (941) 323-6111   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   4/9/2012        
92   Madison, AL*   14 Main Street, Suite A   Madison   Alabama   PureMad, LLC   1009 Springtime Blvd., Huntsville, AL 35802   Meredith Davis (330) 607-7270   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   3/16/2012        
93   Marin, CA   800 Redwood Highway Frontage Road, Suite 616   Mill Valley   California   MG-Elliot, LLC   NA   Margaret Elliott (970) 471-4544   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   4/23/2012        
94   Columbia, MO   124 E Nifong Boulevard   Columbia   Missouri   Pure Barre Columbia   3050 Ridley Wood Street, Columbia, MO 65203   Gayla Miller (573) 268-4070   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   6/25/2012        
95   Columbia, SC - Five Points   2123A Greene Street   Columbia   South Carolina   Afar, LLC   607 Baker Mill Lake Lane, Gaston, SC 29053   Addie Fairey (803) 292-1730   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   4/20/2012        
96   Wilmington, NC*   1123-B Military Cutoff Road   Wilmington   North Carolina   ADK Barre LLC   NA   Alexandra O’Rourke (919)-332-9428   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   6/29/2012      


Schedule 9.27(a)

Dated: June 10, 2015

                         
     Location   Street   City   State   Franchisee Entity Name   Franchisee entity address   Franchisee Phone(s)   Royalty Rate on
Services Sales
  Royalty Rate on
Product Sales
  Ad Fee Rate   Minimum
Monthly
Royalty
  Minimum Cumulative Royalties   Franchise
Agreement
(“FA”) Sign
Date
  Renewal Date (if not
5 Years after FA
Sign Date)
  Signed Amendment
97   Burlington, MA   82 Burlington Mall Road   Burlington   Massachusetts   Jessica Grasso LLC   82 Burlington mall Rd, Burlington MA, 01803   Jessica J. Grasso (617) 233-3386   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   6/22/2012        
98   Savannah, GA*   5521 Abercorn Street, Suite 500   Savannah   Georgia   Pure Barre Savannah, LLC   215 Fair View Drive, Richmond Hill, GA 31324   Ashley Brook Nash (706) 340-3451   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   5/8/2012        
99   Austin, TX - Lakeway   2300 Lohman’s Spur, Suite 186   Austin   Texas   Sierra Barre, LLC   103 Black Wolf Run, Austin TX 78738   Denyse Kroll (512) 771-5711   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   3/6/2012        
100   Overland Park, KS   4945 West 119th Street, Suite 24   Overland Park   Kansas   PureKC   6630 W 109 St., Apt. B, Leawood, KS 66211   Katie Conger (913) 777-9564   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   4/30/2012        
101   Metairie, LA*   701 Metairie Road, Suite 101-2A   Metarie   Louisiana   Studio J, LLC   3923 Magazine st, New Orelans, LA 70115   Jennifer Thomas (985) 707-5686   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   8/1/2012        
102   Hudson, OH*   50 W. Streetsboro Street, Suite 3 & 4   Hudson   Ohio   Pure Hud, LLC   NA   Meredith Davis (330) 607-7270   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   7/13/2012        
103   Sherman Oaks, CA   13559 Ventura Boulevard   Sherman Oaks   California   Pure Barre Sherman Oaks, LLC   390 S Sepulveda BLVD, Apt 301, Los Angeles, CA 90049   Jamie Wells (310) 625-7585   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   4/30/2012        
104   Dayton/Centerville, OH   62 W. Franklin Street   Dayton   Ohio   Pure Barre Dayton, LLC   NA   Janna Williams (513) 464-0300   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   8/24/2012        
105   San Francisco, CA - Marina   3727 Buchanan Street   San Francisco   California   Pure Partners, LLC   2400 Pacific Ave, #510, San Francisco, CA 94349   Kara Kokorelis (415) 309-3026   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   11/16/2011        
106   Greenwich, CT*   280 Railroad Avenue, 1st Floor   Greenwich   Connecticut   Asheley Kate Pure Barre Studios LLC   280 Railroad Ave, Greenwich, CT 06830   Ashley Allen (508) 361-8638   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   8/1/2012        
107   Boston, MA*   350 Newbury Street   Boston   Massachusetts   Boom LLC   32 Shady Hill Rd., Weston, MA 02493   Lauren Marett Sherman (617) 633-1096   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   2/28/2012      
108   Eastern Shore, AL   1802 US Highway 98   Daphne   Alabama   Bay Barre   713 Belrose Avenue, Daphne, AL 36526   Ashlye Hix (251) 786-3639   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   9/5/2012        
109   Glendale, AZ   19420 N. 59th Avenue, Suite C122   Glendale   Arizona   KoCap Investment, LLC   301 Deer Valley, Phoenix, AZ 85027   Gena Kohner (602) 689-6544   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   9/30/2012        
110   Wellesley, MA   200 Linden Square   Wellesley   Massachusetts   PB Wellesley LLC   1300 Centre Street, Newtown MA, 02459   Rachel Roberts (508) 733-4777   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   7/26/2012        
111   Pittsburgh, PA - Mt. Lebanon   1612 Cochran Road   Pittsburgh   Pennsylvania   Three Puppies, LLC   1414 Council Place, Jefferson Hills, PA 15025   Melissa Evancic (412) 260-3237   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   7/16/2012      
112   Charleston, SC - Downtown   164 Market Street, Suite C   Charleston   South Carolina   Pure Barre Downtown LLC   2 Office Park Court, Columbia, SC 29223   Jenn Vannatta (843) 725-8546   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   10/6/2012      
113   Westlake/Avon, OH   33576 Detroit Road   Avon   Ohio   Penelope Lane, Inc   NA   Lori Standen (440) 773-6251   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   9/10/2012        
114   Tampa - Carrollwood, FL   12921 N. Dale Mabry Highway   Tampa   Florida   Pure Barre TPA, LLC   12921 N. Dale Mabry Hwy, Tampa, FL 33618   Shannon O’Brien (941) 737-5153   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   7/3/2012        
115   Montgomery, AL   507 Cloverdale Road, Suite 102   Montgomery   Alabama   Kathryn Lee Lowder   NA   Kathryn Lee Lowder (334) 322-6248   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   7/20/2012        
116   Brighton, MI   9418 Village Place Boulevard   Brighton   Michigan   Bedford-Weyand, LLC   Bedford-Weyand, LLC, 3544 Meridian Crossing Dr. #160, Okem   Allison Weyand (989) 992-0840   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   11/7/2012        
117   Woodland Hills, CA   21728 Ventura Boulevard   Woodland Hills   California   Woodland Pure, LLC   810 Fernwood Pacific Dr., Topanga, CA 90290   Marni Rosenthal Chaikin (310) 463-7873   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   11/20/2012      
118   Plano, TX   3450 E Hebron Parkway, Suite 116   Carrollton   Texas   Running on Joy, LLC   3900 Grapevine Mills pkwy Unit 1725, Grapevine, TX 76051   Jill LaMonica (614) 562-1831   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   6/12/2012      
119   Little Rock, AR   11525 Cantrell Road, Suite 306   Little Rock   Arkansas   Michele Fitness, Inc   7700 E. Misty Glen Court, Anaheim Hills, CA 92808   Lindsey Newton (501) 804-8326   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   1/15/2013        
120   Chandler, AZ   2055 W Frye Road, Suite 5   Chandler   Arizona   Weyand Enterprises, LLC   9590 E Ironwood Square Drive, STE 105, Scottsdale, AZ 85258   Marirose Weyand (989) 529-8170   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   10/4/2012      
121   Arlington, TX   2500 NE Green Oaks Boulevard, Suite 128   Arlington   Texas   Studio Firm, LLC   9900 Spectrum Dr., Austin, TX 78717   Deshanda Firmin (985) 703-1858   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   8/17/2012      
122   Spartanburg, SC   1200 E. Main Street, Suite 7   Spartanburg   South Carolina   Emerge Pilates, LLC   519 South Helena ST, Roebuck, SC 29376   Carol E Corson (864) 909-0216   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   11/15/2012      
123   Washington, DC - Dupont Circle   2130 P Street NW   Washington   DC   District PB, LLC   2033 Huidekoper Place NW, Washington, DC 20007   Michelle Davidson (239) 269-6095   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   8/18/2012      
124   Red Bank, NJ   127 Broad Street   Red Bank   New Jersey   M Two Fitness, LLC   175 Helen Street, Fanwood, NJ 07023   Melanie Coleman (201) 736-6036   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   1/22/2013        
125   South Jersey, NJ - Haddonfield   112 Kings Highway East   Haddonfield   New Jersey   elleon, LLC   105 S. 18th Street, Unit 3A, Philadelphia, PA 19103   Noelle A Zane (267) 234-7825   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   6/27/2012      
126   Lake Norman, NC - Birkdale   16815 Carnlyn Road, Suite A   Huntersville   North Carolina   LKN Barre, LLC   17247 Pennington Drive, Huntersville, NC 28070   Katie Moscovitch (203) 994-2914   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   11/20/2012      
127   South Tulsa, OK   8921 S. Yale Avenue, Suite C   Tulsa   Oklahoma   MJMK, LLC   3503 W. 106th Street South, Jenks, OK 74037   Katrina Morgan (256) 337-2917   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   1/15/2013      
128   Fort Worth, TX   6333 Camp Bowie Boulevard, Suite 220   Fort Worth   Texas   Steber PB, LLC   815 Mercury Avenue, Duncanville, TX 75137   Kelsey Tortorigi (205) 902-2974   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   1/15/2013        
129   Virginia Beach, VA   741 First Colonial Road, Suite 104   Virginia Beach   Virginia   Barre One, LLC   7608 Atlantic Avenue, Virginia Beach, VA 23451   Deanna Graham (757) 287-7869   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   2/27/2013        
130   Spring Lake, NJ   1200 Third Avenue   Spring Lake   New Jersey   Pure Venture, LLC   708 North Ave, Barlwood, NJ 07027   Beth Flynn (312) 404-2384   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   11/14/2012        
131   Greenville, SC - Pelham Road   3722 Pelham Road   Greenville   South Carolina   Jackson Hughes, Lauren Wilson, and Stephanie Reynold   601 Cleveland St, 7A, Greenville, SC 29601   Lauren Wilson (704) 975-9540   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   3/20/2013        
132   Madison, WI - Hilldale   702 N. Midvale Boulevard   Madison   Wisconsin   Pure Madison, LLC   PO Box 3524, Spartanburg, SC 29304   Susanna Presnell Johnson (864) 590-6947   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   4/24/2013        
133   Chicago, IL - Lakeview   3245 N Ashland Avenue, Suite 1   Chicago   Illinois   HNV Lakeview, LLC   408 Jackson Blvd., Nashville, TN 37205   Hanah Vinson (615) 319-9023   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   1/15/2013      
134   Fort Collins, CO   2948 Council Tree Avenue, Suite 119   Ft. Collins   Colorado   SS Holdings, Inc.   2370 Andrew Drive, Superior, CO 80027   Stephanie Spalding (303) 884-4220   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   1/25/2013        
135   Lubbock, TX   4505 98th Street, Suite 240   Lubbock   Texas   Lemon Barre, LLC   3317 22nd Street, Lubbock, TX 79410   Laura Marie Staron (502) 418-8366   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   4/18/2013        
136   Chicago, IL - Bucktown Wicker Park   1837 W North Avenue   Chicago   Illinois   Pure Bucktown, LLC   100 Dunbar Street, Suite 400, Spartanburg, SC 29306   Susanna Presnell Johnson (864) 590-6947   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   7/2/2013        
137   Evanston, IL   910 Church Street   Evanston   Illinois   Pure Evanston, LLC   PO Box 3524, Spartanburg, SC 29304   Susanna Presnell Johnson (864) 590-6947   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   4/24/2013        
138   Greensboro, NC   1310 Westover Terrace, Suite 105   Greensboro   North Carolina   GCPB, LLC   1909 Lafayette Avenue, Greensboro, NC 27408   Christina Cromwell (336) 402-1881   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   5/30/2013        
139   Chicago, IL - River North   1 E. Huron Street, 2nd Floor   Chicago   Illinois   Orson, LLC   3186 Parthenon Avenue, Unit H, Nashville, TN, 37203   Emily Henson (615) 604-5034   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   1/18/2013        
140   Atlanta, GA - Druid Hills   2951 N. Druid Hills Road   Atlanta   Georgia   ATL PB Toco Hills, LLC   896 Beaverbook Drive, Atlanta GA, 30318   Philip Russ (404) 822-0675   7.0%   7.0%   1.0%   $1,000   No less than $15,750 in year 1, $17,500 for the TTM after 18 months, $22,750 in year 2   12/14/2013        
141   Athens, GA   191 Alps Road, Suite 17   Athens   Georgia   Costance C. Popwell   2285 Plaster Avenue, Atlanta GA, 30305   Constance C Popwell (901) 356-7316   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   6/14/2013      
142   Westford, MA   9 Cornerstone Square   Westford   Massachusetts   PB Westford, LLC   25 Lois Lane, Lexington, MA 02420   Jessica Grasso (617) 233-3386   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   6/20/2013        
143   Cranston, RI   2000 Chapel View Boulevard, Suite 125   Cranston   Rhode Island   PBRI, LLC   One Financial Plaza, Suite 1800, Providence RI, 02903   Alexandra York (774) 238-6420   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   6/7/2013        
144   Asheville, NC   1865 Hendersonville Road, Suite 114   Asheville   North Carolina   Asheville PB 01, LLC   310 McDaniel Ave, Greenville SC 29601   Flavia Harton (864) 477-8312   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   4/7/2013      
145   Macon, GA   4420 Forsyth Rd, Suite 140   Macon   Georgia   Healthy Living Partners, LLC   61 Jennifer Drive, Forsyth, GA 31029   Whitney R Berry (770) 312-3672   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   5/27/2013      
146   Billings, MT   1595 Grand Avenue, Suite 200   Billings   Montana   HighSeats, LLC   4332 Ridgewood Ln S, Billings MT, 59106   Kaitlyn Kurn (858) 228-0003   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   3/22/2013        
147   Fairfax, VA   4201 Ridge Top Road   Fairfax   Virginia   PB Fairfax, LLC   269 Lkerd Drive SE, Concord, NC 28025   Ashleigh Brooke Sides (704) 796-2982   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   3/18/2013      
148   Wexford, PA   12091 Perry Highway   Wexford   Pennsylvania   LGD Stuidios, LLC   136 Kissel Springs Road, Ligonier, PA 15658   Laura G Dick (412) 427-1234   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   7/8/2013      
149   Naples, FL   1410 Pine Ridge Road, Suite 10   Naples   Florida   OLLE, Inc   7755 Ionio Court, Naples, FL 34114   Lenka Valigurska (239) 250-6467   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   4/17/2013        
150   Beachwood, OH - Pepper Pike   31100 Pinetree Road, Suite 115   Pepper Pike   Ohio   Purebeach LLC   1003 Rison Ave NE, Huntsville AL 35801   Meredith Davis (330) 607-7270   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   3/12/2013      
151   Roanoke, VA   5036 Keagy Road, Suite 202   Roanoke   Virginia   Dancing Turtle, LLC   4870 Sadler Road, Glen Allen, VA 23060   Traci Dority-Shanklin (310) 418-2433   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   5/27/2013        
152   Westport, CT   275 Post Road East   Wesport   Connecticut   Westport Barre, LLC   2 Pinehurst Rd, Coventry, RI 02816   Laura A Laboissonniere (401) 578-2678   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   5/7/2013      
153   Spokane, WA   13910 E Indiana Avenue, Suite E   Spokane Valley   Washington   KT. WOOD, LLC   509 E 31st St, Bryan TX, 77803   Katie Wood (509) 710-2353   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   6/12/2013      
154   Atlanta, GA - Vinings   4300 Paces Ferry Road SE, Suite 476   Atlanta   Georgia   ATL PB Vinings, LLC   896 Beaverbook Drive, Atlanta GA, 30318   Philip Russ (404) 822-0675   7.0%   7.0%   1.0%   $1,000   No less than $15,750 in year 1, $17,500 for the TTM after 18 months, $22,750 in year 2   7/23/2013      
155   Columbus, OH - New Albany   180 Market Street, Suite D   New Albany   Ohio   Pure Barre Columbus, LLC   960 West 5th Ave, Columbus, OH 43212   Emily C. Johnson (989) 450-1189   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   2/21/2013        
156   Jacksonville, FL - Riverside   1661 Riverside Avenue, Suite 125   Jacksonville   Florida   The Koster Group, Inc.   113 Findhorn Court, St John’s, FL32259   Victoria Koster (205) 401-2960   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   6/3/2013      
157   Boise, ID   550 S. Broadway, Suite 110   Boise   Idaho   Bucci Barre, LLC   1393 W. Villa Norte, Boise ID 83702   Lorain Banducci (208) 250-8666   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   6/6/2013        
158   Birmingham, AL - Riverchase   1870 Chase Drive, Suite 100   Birmingham   Alabama   Landie, Inc   1336 Legacy Drive, Birmingham, AL 35242   Shelly W. Smith (205) 914-3131   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   7/23/2013      
159   Annapolis, MD   2484 Solomons Island Road   Annapolis   Maryland   Greer Hancock, LLC   115 Cedar Road, Severna Park, MD 21146   Anne Hancock Fava (410) 236-7131   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   7/25/2013      
160   Burlingame, CA   1440 Chapin Avenue, Suite 100   Burlingame   California   Alyssa Bothman   20385 Iron Springs Road, Los Gatos, CA 95033   Alyssa Bothman (917) 344-9175   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   3/15/2013        
161   St. Petersburg, FL   3637 Fourth Street North   St. Petersburg   Florida   St. Pete Barre   1124 North Lake Shore Drive, Sarasota FL, 34231   Elleanor McComb (941) 323-6111   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   4/22/2013        
162   Indianapolis, IN - Fishers   11501 Geist Pavilion Drive, Suite 112   Fishers   Indiana   Curly Top, LLC   278 Providence Blvd, Carmel, IN 46032   Rbecca Retrum (317) 331-5128   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   5/1/2013      
163   Buffalo, NY   7660 Transit Road   Buffalo   New York   S.R. McKie, LLC   561 Bird Avenue, Buffalo, New York 14222   Shayna R. McKie (315) 436-0304   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   3/21/2013      
164   Chicago, IL - Old Town   1350 N. Wells Street, Suite 1200   Chicago   Illinois   True Form, LLC   1660 N. LaSalle Drive, Apt 1708, Chicago IL, 60614   Rachel Reisman True (312) 649-9069   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   1/22/2013      
165   Sonoma, CA   201 W. Napa Street, Suite 15   Sonoma   California   MG-Elliot, LLC   800 Redwood Highway, Suite 616, Mill Valley, CA 94941   Margaret G. Elliott (970) 471-4544   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   7/30/2013      
166   Greenville, DE   3801 Kennett Pike, Building E, Suite 209   Greenville   Delaware   M2 Yoga Productions, LLC   1 Heatherwood Drive, Malvern, PA 19355   Maura Markley (610) 348-3825   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   7/8/2013        
167   Geneva, IL   500 S Third Street, Suite 123   Geneva   Illinois   Stuido 26, LLC   210 Logan Avenue, Geneva, IL 60134   Brynn Hanson (630) 254-7228   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   6/28/2013      
168   Tampa, FL - Westchase   12233 West Linebaugh Avenue   Tampa   Florida   PB Florida, LLC   336 Orchid Drive South, Ellenton, FL 34222   Aimee O’Neil (813) 760-7298   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   8/6/2013      
169   Wheaton, IL   33 Rice Lake Square   Wheaton   Illinois   Pure Wheaton, LLC   100 Dunbar Street, Suite 400, Spartanburg, SC 29306   Susanna Presnell Johnson (864) 590-6947   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   11/12/2013        
170   Santa Margarita, CA   22411 Antonio Parkway, Suite C150   Rancho Santa Margarita   California   Vicencia Fitness, LLC   7707 E Margaret Drive, Anaheim, CA 92808   Kerry Vicencia (714) 269-3249   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   7/8/2013      
171   Brooklyn, NY - Cobble Hill   266 Court Street   Brooklyn   New York   Studio TC, LLC   82 Congress Street, Apt 4, Brooklyn NY, 11201   Tiffany N. Currid (850) 502-0100   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   1/30/2013      
172   Atlanta, GA - Virginia Highlands   1402-4 North Highland Avenue NE   Atlanta   Georgia   Goot Gibson, LLC   435 10th Street #16, Atlanta, GA 30309   Ashley Goot (864) 616-3766   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   9/9/2013      
173   Novi, MI   42972 Grand River Avenue   Novi   Michigan   Bedford-Weyand, LLC   8612 Hornbeam, Saginaw, MI 48603   Allison Weyand (989) 992-0840   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   7/29/2013        
174   Jacksonville, FL - Tapestry Park   4828 Deer Lake Drive West   Jacksonville   Florida   Pure Aptitude, LLC   319 North Roscoe Blvd. Ponte Vedra Beach, Florida 32082   Rachel Robertson (904) 710-6450   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   7/18/2013      
175   Seattle, WA - Capitol Hill   1222 E Pine Street, Suite B   Seattle   Washington   IMAs Holdings, LLC   345 NE 54th St., Seattle, WA 98105   Sami Dinsmore Sweeney (206) 595-2092   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   8/23/2013      
176   Flower Mound, TX   5801 Long Prairie Road, Suite 820   Flower Mound   Texas   LTB FM, LLC   1303 Cheyenne Trail, Corinth, TX 76210   Amanda Lewis (832) 928-6174   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   6/4/2013      
177   Rockville, MD   402 King Farm Boulevard, Suite 140   Rockville   Maryland   JCD Fitness LLC   2222 Q Street NW, Apartmnet 43, Washington, DC 20008   Jill DeNinno (412) 680-6648   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   7/26/2013      
178   Kildeer, IL - Deer Park   20771 North Rand Road   Kildeer   Illinois   Pure Barre Kildeer, LLC   100 Dunbar Street, Suite 400, Spartanburg, SC 29306   Susanna Johnson 864-590-6947   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   11/15/2013        
179   Rocky River, OH   19940 Detroit Road   Rocky River   Ohio   Penny Lane, Inc.   31027 Walden Drive, Westlake, OH 44145   Lori Standen (440) 773-6251   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   7/30/2013      
180   Bethesda, MD   4930 Hampden Lane   Bethesda   Maryland   Chip Christianson   7516 Hwy. 70 So., Suite 100, Nashville TN, 37221   Chip Christianson (615) 300-8787   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   6/20/2013      
181   North Raleigh, NC   9660 Falls of Neuse Road, Suite 149   Raleigh   North Carolina   PB Apex, LLC   507 Guilford Circle, Raleigh, NC 27608   Ami Seier (303) 918-3889   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   9/6/2013        
182   Manhasset, NY   1681 Northern Boulevard   Manhasset   New York   Pure Results Long Island, LLC   147 Bayview Ave., Port Washington, NY 11050   Deena Cavalli (516) 365-9090   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   3/19/2013      
183   Syracuse, NY   6789 E. Genesee Street   Fayetteville   New York   Cathy McKie   7586 Calvary Circle, Manlius, NY 13104   Cathy McKie (315) 436-0276   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   8/14/2013      
184   Pure Barre - Richmond - Short Pump   4017 Lauderdale Drive   Richmond   Virginia   G.H. Christianson, II   5000 Harding Place, Nashville, TN 37211   Chip Christianson (615) 300-8787   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   5/6/2013        
185   Brookline, MA   1333 Beacon Street   Brookline   Massachusetts   PB Brookline, LLC   1300 Centre Street, Newtown MA, 02459   Lauren Sherman (617) 633-1096   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   9/17/2013        
186   Irmo, SC   1230 B3A Bower Parkway, Columbia, SC 29212   Columbia   South Carolina   AFAR 2 LLC   607 Baker Mill Lake Lane, Gaston, SC 29053   Addie Fairey (803) 292-1730   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   5/15/2013      
187   Durham, NC   737 Ninth Street, Suite 260   Durham   North Carolina   PB Partners, LLC   15 Piling Place, Durham NC 27707   Charlotte Jones (919) 949-1302   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   9/6/2013        
188   Peters Township, PA   4000 Washington Road, Suite 108   McMurray   Pennsylvania   Kaylee Barre, LLC   1414 Council Place, Jefferson Hills, PA 15025   Melissa Evancic (412) 260-3237   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   8/13/2013      
189   Santa Monica, CA   201 Wilshire Boulevard   Santa Monica   California   Marni Chaikin and Kayla Allen   11819 Wilshire Boulevard, Suite 213, Los Angeles, CA 90025   Kayla Allen (310) 745-8500   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   11/7/2013      
190   San Francisco, CA - West Portal   162 West Portal Avenue   San Francisco   California   Huntley Fike PB, LLC   45 Lark Place, Alamo, CA 94507   Lauren Fike (925) 389-0038   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   10/29/2013      
191   Atlanta, GA - Westside   1100 Howell Mill Road, Suite A07   Atlanta   Georgia   ATL PB 1, LLC   896 Beaverbook Drive, Atlanta GA, 30318   Philip Russ (404) 822-0675   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   7/1/2013      
192   McLean, VA   6825 Redmond Drive, Suite E   Mclean   Virginia   G.H. Christianson, II   7516 Hwy 70 So., Suite 150, Nashville, TN 37221   G.H. Christianson, II (615) 300-8787   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   12/1/2014      

193

  West Palm Beach, FL   501 Fern Street   West Palm Beach   Florida   MLH Fitness, Inc.   7732 Sandhill Court, West Palm Beach, FL 33412   Melissa Hirsch (856) 685-8075   7.0%   7.0%   1.0%   $1,000   No less than $14,000 in year 1, $17,500 for the TTM after 21 months, $21,000 for the TTM a   6/25/2013      

194

  Naperville, IL   144 W Jefferson Avenue   Naperville   Illinois   Pure Naperville, LLC   100 Dunbar Street, Suite 400, Spartanburg, SC 29306   Susanna Presnell Johnson (864) 590-6947   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   11/15/2013        

195

  Frisco, TX   5570 FM 423, Suite 500   Frisco   Texas   Jesler Group, LLC   4571 Siena Drive, Frisco TX, 75033   Jessica Miller (469) 662-4686   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   7/18/2013      

196

  Knoxville, TN   133 S. Forest Park Boulevard   Knoxville   Tennessee   PB Knoxville, LLC   4902 Timberhill Drive, Nashville, TN 37211   Lauren Luftman (859) 608-2043   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   9/19/2013      


Schedule 9.27(a)

Dated: June 10, 2015

                         
     Location   Street   City   State   Franchisee Entity Name   Franchisee entity address   Franchisee Phone(s)   Royalty Rate on
Services Sales
  Royalty Rate on
Product Sales
  Ad Fee Rate   Minimum
Monthly
Royalty
  Minimum Cumulative Royalties   Franchise
Agreement
(“FA”) Sign
Date
  Renewal Date (if not
5 Years after FA
Sign Date)
  Signed Amendment
197   Deerfield, IL   720 Waukegan Rd, Suite J   Deerfield   Illinois   Pure Deerfield, LLC   100 Dunbar Street, Suite 400, Spartanburg, SC 29306   Susanna Presnell Johnson (864) 590-6947   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   8/8/2013        
198   Alexandria, VA   429 John Carlyle Street   Alexandria   Virginia   Mary Beth Coleman, Katie Shearin and G.H. Christians   5000 Harding Place, Nashville, TN 37211   Chip Christianson (615) 300-8787   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   5/27/2013      
199   Washington, DC - Capitol Hill   407 8th Street SE   Washington   DC   PB CAP HILL, LLC   2033 Huidekoper Place NW, Washington, DC 20007   Michelle Davidson (239) 269-6095   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   11/21/2013      
200   The Woodlands, TX   8000 Research Forest Drive, Suite 110   The Woodlands   Texas   Monies, LLC   8000 Research Forrest Drive, Suite 123, The Woodlands, TX 773   Heather Berntone Sanders (832) 722-7767   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   4/16/2014        
201   Roswell, GA   1115 Woodstock Road, Suite 705   Roswell   Georgia   ATL PB Roswell, LLC   869 Beaverbrook Drive, Atlanta, GA 30318   Philip Russ (404) 822-0675   7.0%   7.0%   1.0%   $1,000   No less than $15,750 in year 1, $17,500 for the TTM after 18 months, $22,750 in year 2   10/30/2013        
202   New Tampa, FL   18091 Highwoods Preserve Parkway, Suite 3   Tampa   Florida   PB New Tampa, LLC   10325 OrangeGrove Drive, Tampa, FL 33618   Casey Neubert (727) 422-2713   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   9/13/2013      
203   Wellington, FL   11924 West Forest Hill Boulevard, Suite 22   Wellington   Florida   MLH Fitness, Inc.   480 Hibiscus Street Apt 709, West Palm Beach, FL 33401   Melissa Hirsch (856) 685-8075   7.0%   7.0%   1.0%   $1,000   No less than $14,000 in year 1, $17,500 for the TTM after 21 months, $21,000 for the TTM a   11/20/2013        
204   Brooklyn, NY - Williamsburg   204 Wythe Avenue   Williamsburg   New York   Portside Group, LLC   719 8th Avenue 1A, Brooklyn, NY 11215   Rebecca Fagan (303) 961-4502   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   8/2/2013      
205   Tulsa, OK - Midtown   3807 South Peoria Avenue, Suite M   Tulsa   Oklahoma   MJMK, LLC   3503 W. 106th Street South, Jenks, OK 74037   Katrina Morgan (256) 337-2917   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   9/30/2013      
206   Oxford, MS   265 North Lamar Boulevard, Suite E   Oxford   Mississippi   XOLTB, LLC   232 Private Road 3049, Oxford, MS 38665   Kelly Waite (949) 500-3717   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   11/20/2013        
207   Snellville, GA   1350 Scenic Hwy, Suite 808   Snellville   Georgia   PB Snellville, LLC   1350 Scenic Highway, Snellvile, GA 30078   Keisha Hayes (678) 570-7996   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   11/19/2013        
208   Owensboro, KY   2680 Frederica Street   Owensboro   Kentucky   Andrea McCrary   229 Taylor Drive B, Lexington, KY 40511   Andrea McCrary (270) 313-5636   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   2/6/2014      
209   Franklin, TN   1556 West McEwen Drive   Franklin   Tennessee   Barre Fitness, LLC   4906 Maymanor Circle, Nashville, TN 37205   Martha Nemer (615) 481-8400   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   1/9/2014      
210   Peachtree City, GA   405 City Circle, Suite 1620   Peachtree City   Georgia   PTCbarre, LLC   26 Audubon Place, Newnan, GA 30265   Bronwyn Williams (770) 632-8855   7.0%   7.0%   1.0%   $1,000   No less than $15,750 in year 1, $17,500 for the TTM after 18 months, $22,750 in year 2   6/2/2015        
211   Jupiter, FL   6240 West Indiantown Road, Suite 6   Jupiter   Florida   MLH Fitness, Inc.   380 Hibiscus St, Apt 709, West Palm Beach, FL 33401   Melissa L Hirsch (856) 685-8075   7.0%   7.0%   1.0%   $1,000   No less than $14,000 in year 1, $17,500 for the TTM after 21 months, $21,000 for the TTM a   11/19/2013        
212   East Greenwich, RI   1000 Division Street, Suite 16   East Greenwich   Rhode Island   PBRI-II, LLC   One Financial Plaza, Suite 1800, Providence RI, 02903   Jaime Sweeney (401) 248-1408   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   5/20/2014      
213   Manalapan, NJ   357 Route 9 South   Manalapan   New Jersey   Pure Partners Limited Liability Company   524 Cory Place, Westfield, NJ 07090   Beth Flynn (312) 404-2384   7.0%   7.0%   1.0%   $1,000   No less than (50%) of system average in year 1, (60%) in year 2, (70%) in year 3   3/21/2013        
214   Fairfield, CT   1275 Post Road   Fairfield   Connecticut   Fairfield Barre LLC   1275 Post Road, Suite A3, Fairfield, CT, 06824   Laura Laboissonniere (401) 578-2678   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   3/10/2014      
215   Norfolk, VA   320 West 21st Street   Norfolk   Virginia   Barre One, LLC   7608 Atlantic Avenue, Virginia Beach, VA 23451   Deanna Graham (757) 287-7869   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   11/27/2013      
216   Destin, FL   34940 Emerald Coast Parkway, Suite 186   Destin   Florida   AS Fit, LLC   174 Watercolor Way #3208, Santa Rosa Beach, FL 32459   Ashley Singleton (850) 231-0147   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   11/7/2013      
217   Richmond, VA - Near West End   6235 River Road   Richmond   Virginia   RVA Barre, LLC   256 Silver Sloop Way, Carolina Beach, NC 28428   Carlca C. Brown (703) 323-0776   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   10/15/2013      
218   Palm Beach Gardens, FL   11290 Legacy Avenue, Suite K120   Palm Beach Gardens   Florida   MLH Fitness, Inc.   450 Hibiscus St., Apt. 709, West Palm Beach, FL 33401   Melissa Hirsch (856) 685-8075   7.0%   7.0%   1.0%   $1,000   No less than $14,000 in year 1, $17,500 for the TTM after 21 months, $21,000 for the TTM a   12/4/2013        
219   Southampton, NY   5 Windmill Lane, Suite 4   Southampton   New York   PB Southhampton, LLC   78 Fifth avenue, 4th floor, New York, NY 10011   Kaitlin Vandura (704) 651-9381   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   5/10/2014      
220   Bend, OR   520 SW Powerhouse Drive, Suite 150   Bend   Oregon   Erin Anderson Griffith   70 SW Century Drive, Suity 100-460, Bend OR 97702   Erin Anderson Griffith (406) 570-1646   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   10/11/2013        
221   Cumming, GA   410 Peachtree Pkwy, Suite 216   Cumming   Georgia   ATL PB Cumming, LLC   896 Beaverbrook Drive, Atlanta Ga 30318   Philip Russ (404) 822-0675   7.0%   7.0%   1.0%   $1,000   No less than $15,750 in year 1, $17,500 for the TTM after 18 months, $22,750 in year 2   11/19/2013        
222   Orlando, FL - Dr. Phillips   7339 West Sand Lake Road, Suite 412   Orlando   Florida   Pure Dr. Phillips, LLC   1008 Glendalyn Circle, Spartanburg, SC 29302   Ann Hopkins (864) 590-1972   7.0%   7.0%   1.0%   $1,000   No less than $15,750 in year 1, $17,500 for the TTM after 18 months, $22,750 in year 2   11/26/2013        
223   Hingham, MA   18 Shipyard Drive, Suite 1C   Hingham   Massachusetts   PBH Studio, LLC   21 Parker Road, Wellsley, MA 02481   Tracie Reynolds (508) 479-1748   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   11/7/2013      
224   Atlanta, GA - Inman Park   240 North Highland Avenue, Building 3, Suite B-2   Atlanta   Georgia   ATL PB Inman, LLC   896 Beaverbrook Dr., Atlanta, GA 30318   Philip Russ (404) 822-0675   7.0%   7.0%   1.0%   $1,000   No less than $15,750 in year 1, $17,500 for the TTM after 18 months, $22,750 in year 2   3/25/2014        
225   San Antonio, TX - Stone Oak   21019 US Highway 281 North, Suite 33   San Antonio   Texas   Santon & Price, LLC   18723 Keegan’s Bluff, San Antonio, TX 78258   Kelly Price (901) 428-5593   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   10/11/2013      
226   San Rafael, CA   315 3rd Street   San Rafael   California   Shannon Piro   31 McNear Drive, San Rafael, CA 94901   Shannon Piro (925) 324-3251   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   1/15/2014      
227   Seattle, WA - Green Lake   406 NE 71st Street   Seattle   Washington   IMAs Holdings, LLC   345 NE 54th St., Seattle, WA 98105   Sami Dinsmore Sweeney (206) 595-2092   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   8/22/2013        
228   Lake Norman, NC - Mooresville   129 Market Place Drive, Suite C   Mooresville   North Carolina   LKN Barre, LLC   17247 Pennington Drive, Huntersville, NC 28070   Katheryn Moscovitch (203) 994-2914   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   12/31/2013      
229   Arlington, VA   1024 North Garfield Street   Arlington   Virginia   G.H. Christianson, II   7516 Highway 70 South, Suite 100, Nashville, TN 37221   G.H. Christianson, II (615) 300-8787   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   11/19/2013        
230   Orlando, FL - Mills Park   1430 North Mills Avenue, Suite 160   Orlando   Florida   Pure Lake Mary, LLC   1008 Glendalyn Circle, Spartanburg, SC 29302   Ann Johnson Hopkins (864) 590-1972   7.0%   7.0%   1.0%   $1,000   No less than $15,750 in year 1, $17,500 for the TTM after 18 months, $22,750 in year 2   10/21/2013      
231   Rossmoor, CA - Seal Beach   12501 Seal Beach Boulevard   Seal Beach   California   L&M Fitness, LLC   19172 Lindsay Lane, Hungtington Beach, CA 92646   Alexandria Martinez (714) 323-7569   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   11/11/2013      
232   Allen, TX   972 Village Green Drive   Allen   Texas   Amanda Kovach   3430 McFarlin Boulevard #4, Dallas TX, 73205   Amanda Kovach (832) 928-6174   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   2/14/2014        
233   Grosse Pointe, MI   75 Kercheval Avenue, Suite 301   Grosse Pointe Farms   Michigan   Lia Amine and Renae Lange   5718 Meadowview Street, Ypsilanti, MI 48197   Lia Amine (248) 633-5310   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   2/27/2014      
234   West Omaha, NE   577 North 155th Plaza   Omaha   Nebraska   Emma’s PB, LLC   12925 West Dodge Road, Suite 102, Omaha, NE 68154   Emma Sodoro (402) 690-4056   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   2/27/2014      
235   Murfreesboro, TN   1970 Medical Center Parkway, Suite C   Murfreesboro   Tennessee   PB Murfreesboro, LLC   3444 Deerview Drive, Murfreesboro, TN 37128   Sunshine Burns (615) 944-4335   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   12/18/2013      
236   Chesapeake, VA   733 Eden Way North, Suite 406   Chesapeake   Virginia   Erin Rhamstine   1444 S. Veaux Loop, Norfolk VA, 23509   Erin Rhamstine (757) 620-5735   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   1/6/2014      
237   Tucson, AZ - Casas Adobes   7121 North Oracle Road   Tucson   Arizona   Briana Acuna and Vanessa Palestino   3342 North Sierra Springs Drive, Tucson, AZ 85716   Briana Acuna (619) 806-7410   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   2/6/2014      
238   Dallas, TX - Preston Hollow   6025 Royal Lane, Suite 203   Dallas   Texas   Pure Lakewood, LLC   2402 College Hills, San Angelo, TX 76904   Britta Lofgren (612) 310-1500   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   12/4/2013      
239   Houston, TX - River Oaks   1948A West Gray Street   Houston   Texas   Taylored Dietetics LLC d/b/a Barre Lots   4310 Dunlavy Street, #443, Houston, TX 77006   Taylor Larson (281) 660-5964   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   10/9/2014      
240   Clemmons, NC   6252 Towncenter Drive, Suite 104 & 105   Clemmons   NC   PB Piedmont Triad, LLC   114K Reynolda Village, Winston-Salem NC, 27106   Carolyn Hern (202) 538-4980   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   4/17/2014      
241   Rancho Cucamonga, CA   8792 19th Street, Alta Loma Square   Rancho Cucamonga   California   PB Rancho Cucamonga, LLC   301 N. Lake Avenue, 7th Floor, Pasadena, CA 91101   Ashley Sinkeldam (858) 254-1674   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   3/6/2014      
242   Seattle, WA - Redmond   16015 Cleveland Street   Redmond   Washington   IMAs Holdings, LLC   1420 Delridge Way, Seattle, WA 98108   Sami Dinsmore Sweeney (206) 595-2092   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   3/7/2014      
243   Sudbury, MA   435 Boston Post Road   Sudbury   Massachusetts   Studio Thirty-Three, LLC   6 Wintergreen Court, Lunenberg, MA 01462   Elizabeth Tuzzolo (978) 758-8626   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   5/13/2014      
244   Napa, CA   3632 Bel Aire Plaza   Napa   California   Wine Country Sculpt, LLC   2125 Inglewood Avenue, St. helena, CA 94574   Shelley Nicole Sinegal (425) 891-3245   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   6/6/2014        
245   St. Louis, MO - Ladue   8885F Ladue Road   St. Louis   Missouri   HEJ Fund, LLC   35 Briarcliff St, St. Louis, MO 63124   Ellie Williams (314) 567-7786   7.0%   7.0%   1.0%   $1,000   No less than $15,750 in year 1, $17,500 for the TTM after 18 months, $22,750 in year 2   1/30/2014      
246   Chicago, IL - Lincoln Park   2058 North Halsted Street   Chicago   Illinois   Double A Fitness Lincoln Park, LLC   600 N McClurg St, Apt 3502A, Chicago, IL 60611   Ashley Paro (630) 965-1175   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   5/8/2014      
247   Hilton Head Island, SC   38 Shelter Cove Lane, Suite 129   Hilton Head Island   South Carolina   PB Hilton Head, LLC   1297 May River Road, #324, Bluffton, SC 29910   Kara Brandis Letien (803) 468-3950   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   7/10/2014      
248   Portland, OR - Lloyd   1504 NE Broadway Street   Portland   Oregon   Richen PB LLC   2437 N. Alberta Street, Portland, OR 97217   Stephanie Richen (206) 427-8386   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   4/22/2014      
249   Minneapolis, MN - Edina   7101 France Avenue South, Suite 201   Edina   Minnesota   PB Twin Cities LLC   4122 Linden Hills Boulevard, Minneapolis, MN 55410   Margo McCarthy Farrell (612) 655-4281   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   4/24/2014        
250   Katy, TX   23501 Cinco Ranch Boulevard, Suite D120   Katy   Texas   Queen Tiye Wellness, Inc.   3100 Hazy Park Drive, Houston, TX 77082   Tonia M Jones (310) 612-8296   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   5/23/2014        
251   Darien, CT   313 Heights Road   Darien   Connecticut   Darien Barre LLC   158 Holmes Avenue, Darien, CT 06820   Kristin McClutchy (203) 247-0165   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   7/11/2014        
252   Houston, TX - The Heights   1436 Studewood Street   Houston   Texas   PB The Heights, LLC   2121 Mid Lane, #515, Houston, TX 77027   Dorinda M Blackey (713) 396-9851   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   4/17/2014      
253   Park City, UT   1708 Uinta Way, Suite F-2   Park City   Utah   Haase-Eubank Resources, LLC   8136 N. Ranch Club Trail, Park City Utah, 84099   Susanna Eubank (859) 806-8801   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   5/28/2014      
254   West Hattiesburg, MS   163 Turtle Creek Drive   Hattiesburg   Mississippi   BRP Enterprises LLC   5 North Bridle Bend, Hattiesburg MS, 39402   Brittany Price (601) 596-3183   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   8/28/2014        
255   Columbia, MD   8801-1 Centre Park Drive   Columbia   Maryland   LTB Columbia, LLC   5620 44th Avenue, Hyattsville MD, 20781   Carmel McGuire (202) 422-4147   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   3/13/2014      
256   Omaha, NE - Loveland Centre   2501 South 90th Street, Suite 118   Omaha   Nebraska   PBK Enterprises, LLC   702 N 57th Avenue, Omaha, NE 68132   Kristen Papenfuss (402) 332-8551   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   2/28/2014      
257   Colorado Springs, CO   5262 North Nevada Avenue, Suite 120   Colorado Springs   Colorado   PB Colorado Springs LLC   301 Delaney Woods Road, Nicholasville, KY 40356   Griffin Wendt (859) 221-1552   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   3/20/2014      
258   Dallas, TX - Uptown   3700 McKinney Avenue, Suite 130   Dallas   Texas   PB UPTOWN, LLC   7035 Orchid Lane, Dallas, TX 75230   Elizabeth Slough (214) 361-2882   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   4/27/2014        
259   Pleasanton, CA   6750 Bernal Avenue, Suite 730   Pleasanton   California   PB Studios LLC   6750 Bernal Avenue, #730, Pleasanton, CA 94566   Adrienne Richmond (530) 965-0611   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   4/25/2014      
260   Burlington, VT   150 Dorset Street South   Burlington   Vermont   PB Burlington, LLC   83 Tracy Drive, Burlington VT, 05408   Anna-Bridgette Shorten (330) 618-1586   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   5/8/2014      
261   Doylestown, PA   1745 South Easton Road   Doylestown   Pennsylvania   Tradewinds Capital, LLC   4503 Everview Drive, Doylestown, Pennsylvania 18902   Michele Hartung (267) 935-925   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   5/19/2014      
262   El Paso, TX   5610 North Desert Boulevard   El Paso   Texas   PB EP, LLC   877 Forest Willow Circle, El Paso, TX 79922   Joey D’Adarno-Hass (609) 638-2345   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   7/20/2014      
263   Portland, OR - Pearl District   1124 NW 13th Street   Portland   Oregon   PDX Wolfpack, LLc   520 SW Yamhill, Suite 212, Portland, OR 97204   Richard Bourland (808) 264-6933   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   4/22/2014      
264   Fort Mill, SC   734 Stockbridge Drive   Fort Mill   South Carolina   LTBSC, LLC   100 N Tryon Street, 42nd Floor, Charlotte, NC 28202   Jane E. Robinson - Jones (864) 266-8684   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   6/24/2014      
265   Pensacola, FL   6 S Palafox Place   Pensacola   Florida   PB Pensacola, LLC   741 Forgotten Creek Lane, Pensacola, FL 32514   Catalina J Soto-Aguilar (251) 635-9149   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   4/24/2014      
266   Los Angeles, CA - Downtown   740 South Olive Street, Suite 106   Los Angeles   California   K Tini, LLC   1330 California Avenue #303, Santa Monica CA, 90403   Katelin Thompson (310) 923-0496   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   9/27/2013      
267   Vancouver, WA - Grand Central   2410 Columbia House Boulevard, Suite 102   Vancouver   Washington   VanderHouwen Fitness, LLC   24320 NE 132nd Circle, Brush Prairie, WA 98606   Cynthia Vanderhouwen (503) 789-6219   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   8/28/2014      
268   Whitefish Bay, WI   418 East Silver Spring Drive   Whitefish Bay   Wisconsin   JHS Holdings, LLC   2217 E. Ivanhoe Place, Milwaukee, WI 53202   Jess H Stark (414) 870-3771   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   10/8/2014      
269   Greenville, NC   420 East Arlington Boulevard, Unit J   Greenville   North Carolina   LTB Greenville LLC   500 Cottonport Drive, Grimesland, NC 27837   Jennifer Robinson (801) 502-9146   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   7/29/2014      
270   Addison, TX   5000 Belt Line Road, Suite 200   Dallas   Texas   Giselle Gafford   11272 Russwood Circle, Dallas TX 75229   Giselle Gafford (469) 323-7353   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   5/5/2014        
271   San Clemente, CA   1041 Avenida Pico, Suite A   San Clemente   California   PB San Clemente, LLC   21731 Rushford Drive, Lake Forrest, CA 92630   Erica McGinley (650) 533-1770   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   6/17/2014      
272   Brooklyn, NY - Park Slope   178 5th Avenue   Brooklyn   New York   Studio TS, LLC   178 5th Avenue, Brooklyn, NY 11217   Tiffany Currid (850) 502-0100   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   7/22/2014      
273   Estero, FL   21740 South Tamiami Trail, Suite 113   Estero   Florida   PB Estero, LLC   7755 Ionio Court, Naples, FL 34114   Jessie Stevens (720) 854-9053   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   6/5/2014      
274   Bradenton, FL   6745 Manatee Avenue West   Bradenton   Florida   Bradenton Barre, LLC   2828 S. Tamiami Trail, Sarasota, FL 34239   Eleanor McComb (941) 323-6111   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   8/14/2014      
275   Berkeley, CA   2055 Center Street, Suite C   Berkeley   California   PB Berkeley LLC   117 Michele Circle, Novato CA 94947   Alexandra Tartour (415) 497-7633   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   4/25/2014      
276   Short Hills, NJ   255 Millburn Avenue   Millburn   New Jersey   M Two Fitness, LLC   175 Helen Street, Fanwood, NJ 07023   Molly D’Allesio (908) 938-0449   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   8/3/2014        
277   Nashville, TN - White Bridge   21 White Bridge Road, Suite 210   Nashville   Tennessee   Modecktn, LLC   2207 Crestmoor Road, Suite 203; Nashville, TN 37215   Kathryn Decker (615) 504-6520   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   7/30/2014      
278   Jacksonville, FL - San Marco   1988 San Marco Boulevard   Jacksonville   Florida   The Koster Group, Inc.   3612 Eastbury Drive, Jacksonville, FL 32224   Victoria Koster (205) 401-2960   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   8/18/2014        
279   Fort Myers, FL   7381 College Parkway, Suite 100   Fort Myers   Florida   PB RSW, LLC   5516 Montilla Drive, Fort Myers, FL 33919   Jennifer Hissam (239) 560-8023   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   5/28/2014      
280   Youngstown, OH   1393 Boardman-Canfield Road, Suite J   Boardman   Ohio   Starry Night by Sela, LLC   7432 Christopher Drive, Poland OH, 44514   Beth Klingensmith Karzmer and Jonah Karzmer (330) 518-8187   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   7/22/2014        
281   Charleston, SC - West Ashley   1300 Savannah Highway, Suite 5   Charleston   South Carolina   PB West Ashley LLC   1054 Anna Knapp Blvd, Unit 4G, Mount Pleasant, SC 29464   Jennifer Vannatta (843) 725-8546   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   9/24/2014      
282   Nashua, NH   112 Spit Brook Road   Nashua   New Hampshire   KBOSS, LLC   10 Viau Road, Windham, NH 03087   Adrienne Boss (780) 881-6107   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   12/1/2014        
283   Maui, HI- Kahului   70E Kaahumanu Avenue   Kahului   Hawaii   PB Studios Hawaii, LLC   P.O. Box 171, Paauilo, HI 96776   Kris Batalona Thomas (808) 989-8414   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   9/24/2013      
284   Clearwater, FL   2524A North McCullen Booth Road   Clearwater   Florida   Lauren McComb; Elle McComb   1124 North Lake Shore Drive, Sarasota FL, 34231   Elle McComb (941) 323-6111   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   6/25/2014      
285   Augusta, GA   2907 Washington Road   Augusta   Georgia   Jill Kraft   811 Stevens Creek Road, Augusta GA, 30907   Jill Kraft (480) 321-6500   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   1/31/2014      
286   Tallahassee, FL - North   3425 Thomasville Road, Suite 8   Tallahassee   Florida   Connie Popwell   1075 Baxter St., Unit A303, Athens, GA 30606   Connie Popwell (901) 356-7316   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   11/19/2014        
287   Weston, FL   4575 Weston Road   Davie   Florida   PBJ Weston, LLC   2505 Eagle Run Drive, Weston FL, 33327   Nicole Anders (954) 612-9579   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   7/22/2014      
288   Atlanta, GA- Decatur   2951 North Druid Hills Road   Atlanta   Georgia   GG Decatur, LLC   1402 North Highland Avenue, Atlanta, GA 30306   Katy Bayless (803) 331-9099   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   7/22/2014      
289   New Providence, NJ   1260 Springfield Avenue, Suite 9   New Providence   New Jersey   Wellness Essentials, Limited Liability Company   114 Ashwood Avenue, Summit, NJ 07901   LaRonda Gumm (908) 273-0730   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   5/28/2014        
290   North Hollywood, CA   4929 Lankershim Boulevard, Suite D   North Hollywood   California   Brittany Egbert LLC   6261 Surfpoint Circle, Huntington Beach, CA 92648   Brittany Egbert (714) 277-6093   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   6/9/2014      
291   Eagle, ID   6700 North Linder Rd. #174   Meridian   Idaho   Bucci Barre, LLC   1393 W. Villa Norte, Boise ID 83702   Lorain Gibson Banducci (208) 250-8666   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   12/9/2014        
292   Denville, NJ   20 West Main St   Denville   New Jersey   Healthy Investments LLC   2 Oakwood Court, Morris Plains NJ, 07950   Elizabeth Billmeier (732) 995-4083   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   5/23/2014      

293

  New York, NY - Upper West Side   412 Columbus Ave.   New York   New York  

PB TURNING POINT LLC

  5713 Rockhill Road, Forth Worth, TX 76112  

Margo McCann (817) 721-8966

  7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   8/14/2014        

294

  Cincinnati, OH- Kenwood   8154 Montgomery Rd #102   Cincinnati   Ohio  

The Ranieri Grou, LLC

  2517 Pascoli Place, Lexington, TN 40509   Lea Ranier-Warner 859 221 8487   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   12/12/2014        

295

  Denton, TX   1400 Loop 288 S Suite 116   Denton   Texas  

LTB Guhn Enterprises LLC

  1312 Wildflower Lane, Flower Mound, TX 75028   Rita Guhn (214) 914-2934   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   11/5/2014        

296

  North Scottsdale, AZ   7000 East Mayo Blvd. #3   Phoenix   Arizona  

Weyand Enterprises, LLC

  8311 E. Via De Ventura, Scottsdale, AZ 85258   Veronica L Weyand (989) 239-9048   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   6/18/2014      


Schedule 9.27(a)

Dated: June 10, 2015

                         
     Location   Street   City   State   Franchisee Entity Name   Franchisee entity address   Franchisee Phone(s)   Royalty Rate on
Services Sales
  Royalty Rate on
Product Sales
  Ad Fee Rate   Minimum
Monthly
Royalty
  Minimum Cumulative Royalties   Franchise
Agreement
(“FA”) Sign
Date
  Renewal Date (if not
5 Years after FA
Sign Date)
  Signed Amendment

297

  New York, NY - Upper East Side   141 East 88th Street   New York   New York   PB UPPER EAST SIDE, LLC   78 Fifth avenue, 4th floor, New York, NY 10011   Kaitlin T. Vandura (704) 651-9381   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   5/13/2014      

298

  Washington, DC - Cathedral Commons   3308 Wisconsin Avenue NW   Washington   DC   PB Cathedral LLC   2033 Huidekoper Place NW, Washington, DC 20007   Michelle Davidson (239) 269-6095   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   9/6/2014      

299

  Del Mar, CA   5965 Village Haven Trail #202   San Diego   California   Mandofit LLC   76181 Shawnee Circle, Indian Wells CA, 92210   Amanda Eisenhart (760) 625-2535   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   8/14/2014        

300

  Birmingham, MI   --------- No Lease, Signed Franchise Agreement ---------   Bedford-Weywand, LLC   5140 State Street, Suite 200, Saginaw, MI 48603   Allison Weyand (989) 992-0840   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   1/15/2015        

301

  New York City, NY-Financial District   80 Pine Street   New York   New York   Surrey PB, LLC   40 Fulton Street, 6th Floor, New York, NY 10038   Edward Silvera (732) 740-3415   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   8/29/2014      

302

  Reston, VA   12975 Highland Crossing Dr.   Herndon   Virginia   PB Fairfax, LLC   4201 Ridge Top Road, Fairfax, VA 22030   Ashleigh Brooke Sides (704) 796-2982   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   8/3/2014      

303

  Murrysville, PA   203 Blue Spruce Way   Murrysville   Pennsylvania   6 Dogs, LLC   5544 Darlington Road, Pittsburgh, PA 15217   Lisa Acquaviva (412) 551 2373   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   2/6/2015        

304

  Brooklyn, NY- Green Point   225 Franklin St.   Brooklyn   New York   Portside Group, LLC   204 Wythe Avenue, Brooklyn, NY 11249   Rebecca McCarthy (303) 961-4502   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   8/14/2014      

305

  Coppell, TX   230 North Denton Tap Rd. #106a   Coppell   Texas   Minimal Movement, LLC   301 Eastland Drive, Lewisville TX 75056   Karen M Rector (214) 435-1974   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   3/11/2015        

306

  Tustin, CA   17245 17th Street   Tustin   California   Christan Schiefelbein   107 Preakness Drive, Placentia, CA 92870   Christan Schiefelbein (714) 293-5949   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   1/9/2014      

307

  Pittsburgh, PA-Fox Chapel   1121 Freeport Rd.   Pittsburgh   Pennsylvania   DSP Fitness LLC   1336 James Street, Pittsburgh, PA 15212   Danielle Scott Petrina (724) 322-4152   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   4/17/2014        

308

  Olive Branch, MS   5338 Goodman Road, Suite #TBD   Olive Branch   Mississippi   Laurenzi & Morgan Olive Branch, LLC   7820 Poplar Avenue, Suite 12, Germantown, TN 38138   Lindsey Laurenzi (901) 484-0705   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   4/22/2014      

309

  St. Louis, MO- Central West End   4931 Lindell Blvd. #100   Saint Louis   Missouri   HEJ Fund II, LLC   35 Briarcliff St, St. Louis, MO 63124   Julie Belz (901) 484-1326   7.0%   7.0%   1.0%   $1,000   No less than $15,750 in year 1, $17,500 for the TTM after 18 months, $22,750 in year 2   12/22/2014      

310

  Malibu, CA   --------- No Lease, Signed Franchise Agreement ---------   Pure Malibu, LLC   801 Yale Street, Santa Monica, CA 90403   Cynthia Webb (310) 617-3609   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   6/6/2014        

311

  Chicago, IL- West Loop   1170 West Madison St.   Chicago   Illinois   Warner Hudson Corp.   910 S. Michigan Avenue, #1702, Chicago IL, 60605   Susan Parsons Rothman (859) 948-7777   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   10/8/2014        

312

  Cambridge, MA   --------- No Lease, Signed Franchise Agreement ---------   Lauren Sherman and Rachel Roberts   1300 Centre Street, Newtown MA, 02459   Rachel Roberts (508) 733-4777   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   3/31/2014        

313

  E. Gilbert, AZ   1854 South Val Vista Dr. #108   Mesa   Arizona   Christine Pacheco   3946 N. Pinnacle Hills Circle, Mesa, AZ 85207   Christine Pacheco (480) 213-6748   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   9/30/2014        

314

  New York City, NY- West Village   101 Perry Street   New York   New York   2H Investments, LLC   45 Christopher Street Apt 3F, New York, NY 10014   Katharine Hamlin (610) 420-9767   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   11/26/2014        

315

  The Woodlands, TX II   --------- No Lease, Signed Franchise Agreement ---------   Barre Monies LLC   8000 Research Forrest Drive, Suite 123, The Woodlands, TX 773   Heather Sanders (832) 722-7767   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   11/9/2014        

316

  Florham Park, NJ   --------- No Lease, Signed Franchise Agreement ---------   PB Hoboken, LLC   115 Clinton Street, No.5, Hoboken, NJ 07030   Ashley Resto (201) 787-9109   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   8/29/2014      

317

  Nashville, TN- The Gulch   --------- No Lease, Signed Franchise Agreement ---------   Modecktn, LLC   4209A Lone Oak Rd., Nashville, TN 37215   Sarah Moats (615) 500-4670   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   12/3/2014      

318

  Ashburn, VA   Lease signed-Final Street Address TBD   Ashburn   Virginia   L & M Stuidos, LLC   12818 Framingham Court, Herndon VA 20171   Courtney E. Miller (908) 339-7097   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   12/20/2014        

319

  Lafayette, LA   4247 Ambassador Caffery Pkway#117   Lafayette   Louisiana   Raferty Domingue, LLC   103 Quinlin Drive, Lafayette, LA 70508   Laura Dominque Rafferty (337) 501-6699   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   1/21/2015        

320

  Vienna, VA   218 Maple Avenue West   Vienna   Virginia   PB Vienna LLC   10523 Braddock Road, Suite A, Fairfax, VA 22032   Nicholette Dunleavy (443) 987-8741   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   1/30/2015        

321

  Lincoln, NE   2900 Pine Lake Rd   Lincoln   Nebraska   Emma & Brittany, LLC   12925 West Dodge Road, #102, Omaha, NE 68154   Patrick Sodoro (402) 504-9346   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   2/12/2015        

322

  Philadelphia, PA- Ardmore   --------- No Lease, Signed Franchise Agreement ---------   P.S. Tenacity, LLC   644 N. Valley Forge Road, Devon PA 19333   Laura Sloane (215) 266-9348   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   2/20/2015        

323

  McKinney, TX   6840 Virginia Parkway #135   McKinney   Texas   Amanda Kovach   1.. 6 Audrey Way, Allen, TX 75013   Amanda Kovach (832) 928-6174   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   3/3/2015        

324

  Brea, CA   --------- No Lease, Signed Franchise Agreement ---------   A&M Fitness, Inc.   7700 E. Misty Glen Court, Anaheim Hills, CA 92808   Michele McCutcheon (949) 735-9980   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   3/3/2015        

325

  Rochester, MI   439 South Main Street   Rochester   Michigan   PB Rochester, LLC   46936 Edgewater Drive, Macomb, MI 48044   Melanie Brown (616) 477-3211   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   3/3/2015        

326

  Minneapolis, MN- Eden Prairie   --------- No Lease, Signed Franchise Agreement ---------   M and R Corporation   4605 Wooddale Ave, South Edina MN, 55424   Michele A. Hall (858) 344-7211   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   3/4/2015      

327

  St. Louis, MO- Chesterfield   1740 Clarkson Road #7   Chesterfield   Missouri   TBAAB, LLC   504 Belinda Alley Court, Columbia MO 65203   Lauren Matteson (636) 236-4830   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   3/18/2015        

328

  Toronto, ON- The Annex   --------- No Lease, Signed Franchise Agreement ---------   Pak Toronto, Inc   1123-B Military Cutoff Road, Wilmington NC, 28405   Ramsey Paige Carper (910) 617-4528   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   3/24/2015        

329

  Columbus, GA   --------- No Lease, Signed Franchise Agreement ---------   Penny B & ME LLC   481 S. Main Street, Shiloh, GA 31826   William Burns (706) 577-7326   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   4/8/2015        

330

  E. Wichita, KS   1423 N. Webb Road, Suite 119   Wichita   Kansas   Wichita barre LLC   419 N. St. Francis, Wichita, KS 67202   Courtney Somes (970) 471-4150   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   4/8/2015        

331

  Starkville, MS   87 Cotton Mill Drive, Suite 5   Starkville   Mississippi   SGH Enterprises LLC   87 Cotton Mill Drive, Suite 5, Starkville, MS 39759   Sarah Harrelson (662) 574-5611   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   4/8/2015        

332

  Northampton, MA   --------- No Lease, Signed Franchise Agreement ---------   Elizabeth Roberts, Kathey Roberts   7 Fox Run Easthampton, MA 01027   Elizabeth Roberts (339) 225-0432   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   4/14/2015        

333

  Hinsdale, IL   --------- No Lease, Signed Franchise Agreement ---------   Double A Fitness Hinsdale LLC   558 West Webster Avenue, Unit 202, Chicago, IL 60614   Ashley Paro (630) 965-1175   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   4/14/2015        

334

  Crofton, MD   1153 Maryland 3 #70,   Gambrills   Maryland   Graves Lyate LLC   424 Neale Avenue, Silver Spring, MD 20909   Laura Graves (301) 928-4693   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   4/15/2015        

335

  Littleton, CO   --------- No Lease, Signed Franchise Agreement ---------   Bankord Studios, LLC   8568 W. Dartmouth Place, Lakewood, CO 80227   Collette(303)834-0643 & Carson Bankord(303)903-4570   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   4/27/2015      

336

  Evansville, IN   --------- No Lease, Signed Franchise Agreement ---------   Frame Road Fitness LLC   5311 Frame Road, Newburgh, IN 47630   Jamie Riedford (812) 455-7268   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   4/28/2015      

337

  Pinecrest, FL   --------- No Lease, Signed Franchise Agreement ---------   Pure Pinecrest AR, LLC   200 South Biscayne Blvd, 6th Floor, Miami, FL 33130   Allison Abreu(978)886-0532 & Ryann Dickinson(305)389-7088   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   4/30/2015        

338

  East Montgomery, AL   --------- No Lease, Signed Franchise Agreement ---------   PB East, LLC   5009 Moxon Street, Montgomery, AL 36116   Tiffany Bell(334)462-2747 & Katie Lee Lowder(334)322-6248   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   5/6/2015        

339

  Cedar Park, TX   --------- No Lease, Signed Franchise Agreement ---------   Barre Dunn, LLC   300 Navigator Drive, Austin, TX 78717   Rebecca Dunn(512) 944-4488   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   5/11/2015        

340

  North Plano, TX   --------- No Lease, Signed Franchise Agreement ---------   JPS Stone, LLC   6149 Choctaw Place, Frisco, TX 75034   Jill & Patrick LaMonica (614) 562-1831   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   5/12/2015        

341

  Vancouver, BC-Kitsilano   --------- No Lease, Signed Franchise Agreement ---------   Pacific Spirit Movement, Inc.   1275 W 15th, Suite 105, Vancouver, BC V6H1R9   Tanya Schneider(604)314-2433 & Zack Ross(778)385-4505   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   5/13/2015        

342

  Irving, TX   --------- No Lease, Signed Franchise Agreement ---------   NBNK Investments, LLC   1032 Saint Francis Lane, Flower Mound, TX 75028   Niki(214)422-1197 & Brian Claeys(214)422-1203   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   5/14/2015        

343

  Belmont, MA   --------- No Lease, Signed Franchise Agreement ---------   PB Tuzzolo, LLC   435 Boston Post Rd, Suite 10, Sudbury, MA 01776   Elizabeth Tuzzolo (978) 758-8626   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   5/18/2015        

344

  San Tan Village, AZ   --------- No Lease, Signed Franchise Agreement ---------   PB San Tan Village, LLC   4380 S. Rosemary Pl, Chandler, AZ 85248   Nicole Hines (602) 750-5357   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   5/19/2015        

345

  West Cobb, GA   --------- No Lease, Signed Franchise Agreement ---------   Purposeful Living, LLC   125 Horseshoe Bend Court, Macon, GA 31211   Natalie Singletary(843)817-2733 & Whitney Berry(770)312-3672   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   5/26/2015        

346

  Henderson, NV   --------- No Lease, Signed Franchise Agreement ---------   Raise The Barre, LLC   3700 Christopher Day Road, Doylestown, PA 18902   Cassie O’Neal (702) 686-4097 & Michelle Clinger (908) 295-8745   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   5/28/2015        

347

  Gainesville, FL   --------- No Lease, Signed Franchise Agreement ---------   November Enterprises, LLC   701 SW 62nd Blvd, Apt CC-21D, Gainesville, FL 32607   Moana (904) 613-8333 & Marshall Tucker (904) 861-8709   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   5/29/2015        

348

  West Hartford, CT   --------- No Lease, Signed Franchise Agreement ---------   SML Studios, LLC   14 Westmont Road, Wethersfield, CT 06109   Stephanie Lin (860)794-7040   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   5/29/2015        

349

  High Point, NC   --------- No Lease, Signed Franchise Agreement ---------   PBHP, LLC   1511 Pinehurst Drive, High Point, NC 27262   Melody Emerson (336) 314-0981   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   5/29/2015        

350

  Cypress, TX   --------- No Lease, Signed Franchise Agreement ---------   Queen Nefertiti Wellness, Inc   3306 Parkwood Drive, Houston, TX 77021   Tonia Jones (310) 612-8296   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   5/29/2015        

351

  Walnut Creek, CA   --------- No Lease, Signed Franchise Agreement ---------   Mombo Fitness, LLC   555 Ygnacio Valley Rd,Unit 411, Walnut Creek, CA 94596   Melissa Heinrich (925) 389-0034   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   6/5/2015        

352

  Williamsburg, VA   --------- No Lease, Signed Franchise Agreement ---------   C.W. Barre LLC   10610 Merchant Hope Rd,North Prince George, VA 23860   Amy Perkinson (804) 691-2320 & Terri Perkinson (804)691-8285   7.0%   7.0%   1.0%   $1,000   $14,000 over rolling 12 months   6/5/2015        

*Denotes a potential discrepancy regarding the definition of the Franchisee’s exclusive territory (refer to the Franchise Agreement file for further details).

The Company has not conceded, and does not concede, that the Franchise Agreements have been amended in that respect but recognizes that the Franchisees under those agreements might assert otherwise.

The Franchise Agreements identified in #328 to #350 (inclusive) on the above list were executed during the period from March 19, 2015 until June 1, 2015. This is the period after a nonbinding letter of intent was executed regarding a potential change in ownership of the Pure Barre franchisor, but possibly prior to the franchisee receiving an amended FDD that described the change in ownership of Franchisor or its parents following the transaction that closed on May 1, 2015. These Franchise Agreements may be subject claims, whether valid or invalid, justified or not, regarding compliance with franchise disclosure rules in connection with the disclosure of the potential change in ownership


(b) CycleBar Area Representative Agreements have been signed with the following parties:

 

             
Agreement   Franchisor  

Area

Rep.

 

Eff.

Date

 

Address of

Area

Representative

  Territory  

No. of

franchises

in

Territory*

CycleBar Area Representative Agreement   CBF. LLC  

CB-

AR,

LLC

  6/15/17  

135 E. Martin

St. Suite 201

Raleigh, NC

27601

 

Dallas, TX

Fort Worth, TX Arlington, TX

  1
CycleBar Area Representative Agreement   CBF. LLC  

CB-

AR,

LLC

  6/15/17  

135 E. Martin

St. Suite 201

Raleigh, NC

27601

 

Atlanta, GA

Sandy Springs, GA Roswell, GA

  1
CycleBar Area Representative Agreement   CBF. LLC  

CB-

AR,

LLC

  6/15/17  

135 E. Martin

St. Suite 201

Raleigh, NC

27601

 

Seattle, WA

Tacoma, WA

Bellevue, WA

  1
CycleBar Area Representative Agreement   CBF. LLC  

CB-

AR,

LLC

  6/15/17  

135 E. Martin

St. Suite 201

Raleigh, NC

27601

  Charlotte, NC Concorde, NC Gastonia, NC   1
CycleBar Area Representative Agreement   CBF. LLC  

CB-

AR,

LLC

  6/15/17  

135 E. Martin

St. Suite 201

Raleigh, NC

27601

 

Raleigh, NC

Durham, NC

Chapel Hill, NC

  1
CycleBar Area Representative Agreement   CBF. LLC  

CB-

AR,

LLC

  6/15/17  

135 E. Martin

St. Suite 201

Raleigh, NC

27601

  Richmond, VA Charlottesville, VA   1
CycleBar Area Representative Agreement   CBF. LLC  

CB-

AR,

LLC

  6/15/17  

135 E. Martin

St. Suite 201

Raleigh, NC

  Knoxville, TN   1


                                               

 

27601

 

                 

CycleBar Area

Representative

Agreement

       

CBF. LLC

       

CB-

AR,
LLC

        6/15/17        

135 E. Martin

St. Suite 201

Raleigh, NC

27601

       

Greensboro, NC    

Highpoint, NC Winston-Salem, NC

   1

CycleBar Area

Representative

Agreement

        CBF. LLC        

CB-

AR,
LLC

        6/15/17        

135 E. Martin

St. Suite 201

Raleigh, NC

27601

        Boise, ID    1

CycleBar Area

Representative

Agreement

        CBF. LLC        

CB-

AR,
LLC

        6/20/17        

135 E. Martin

St. Suite 201

Raleigh, NC

27601

       

Portland, OR

Hillsboro, OR Vancouver, WA

   1

CycleBar Area

Representative

Agreement

        CBF. LLC        

Pedal

Launch,
LLC

                 

4290 S. Hudson    

Parkway,

Cherry Hills,
CO 80113

       

The State of

Colorado

   23            

*The structure of each Area Representative Agreement listed above requires CB-AR, LLC to maintain, or in the alternative have access to, a CycleBar studio for the purposes of performing those certain services to CycleBar franchisees as outlined in the Area Representative Agreement. There is no minimum number of studios to be developed or maintained in each Territory.

 

  1.

Development Agreements have been signed with the below parties:

  a.

Development Agreement – 4 Units – Dan Murphy - JCN Corporation dated March 5, 2015

  b.

Development Agreement – 3 Units – Joel and Shirelle Vilmenay - Crescent City Cycle, LLC dated March 5, 2015

  c.

Development Agreement – 3 Units – Patrick and Anna Walsh - RYR Colorado, LLC dated March 5, 2015

  d.

Development Agreement – 3 Units – Marc & Lisa Palmer - Charlotte Cycle, Inc. dated March 25, 2015

  e.

Development Agreement – 3 Units – Joe Rothchild - GHM CB, LLC dated April 6, 2015

  f.

Development Agreement – 4 Units – David Safai dated April 9, 2015

  g.

Development Agreement – 3 Units – Bryan Lively and Anne & Nick Monigold dated April 16, 2015

  h.

Development Agreement – 8 Units – A. David Davis & Jacob Davis & John Krumdieck - MdG Partners, LLC dated April 23, 2015

  i.

Development Agreement – 3 Units – Tejal Kamdar & Jason Snyder & Meera Kamdar dated April 29, 2015


  j.

Development Agreement – 3 Units – Joe Cece & MaryLaurie Cece dated May 6, 2015

  k.

Development Agreement – 3 Units – Brad Spivey & Trish Harrison - H&S Music City Holdings, Inc. dated July 15, 2015

  l.

Development Agreement – 3 Units – Jeff Wayne - CB Michigan, LLC dated July 15, 2015

  m.

Development Agreement – 4 Units – Torsten Schermer & Bob Lee & Catherine Lee - ScherLeeUBike, LLC dated August 6, 2015

  n.

Development Agreement – 3 Units – Don Dasher & Lisa Hazen - Dog’s Breath Inn, Inc. dated September 10, 2015

  o.

Development Agreement – 3 Units – Ekpedme Udoh & Brandon Grier - LGR LIFESTYLE, LLC dated September 18, 2015

  p.

Development Agreement – 3 Units – Patty Harte dated October 9, 2015

  q.

Development Agreement – 3 Units – Lee Oesterling & Kirsten Rickers - Atlanta Cycle Studios, LLC dated October 19, 2015

  r.

Development Agreement – 10 Units – Joseph Bouhadana & Moshe Klainbaum & Dan Schachtel & Michael Shalom - SFL Cycle, LLC dated September 11, 2015

  s.

Development Agreement – 3 Units – John Fleming & Barbara Fleming - Corones, Inc. dated November 27, 2015

  t.

Development Agreement – 3 Units – Lee Williams & Christine Williams dated December 8, 2015

  u.

Development Agreement – 4 Units – J. Scott McBride & Chris Sommer - HighRev Lifestyle, Inc. & McBride-5 Enterprise, LLC dated January 8, 2016 Development Agreement – 3 Units – Fred Ryser & Katie Ryser - PACKWOLF, LLC dated January 18, 2016

  v.

Development Agreement – 2 Units – Hayley Killam dated March 9, 2016

  w.

Development Agreement – 3 Units – Paul Schnapp & Anita Schnapp - Schnapp Enterprises, Inc. dated March 31, 2016

  x.

Development Agreement – 3 Units – Mike Harris dated April 8, 2016

  y.

Development Agreement – 3 Units – Kathleen Boss dated April 13, 2016

  z.

Development Agreement – 4 Units – John Janszen & Michael Olander – JCM Kentucky Cycle, LLC dated April 6, 2016

  aa.

Development Agreement – 12 Units – Bill McComb & Peter Wolf – CICLO Management, LLC dated April 29, 2015

  bb.

Development Agreement – 2 Units – Dione & Tom Bailey dated November 24, 2015

  cc.

Development Agreement – 3 Units – David Busker & David Batschelett – DB2 Fitness One, LLC dated April 18, 2016

  dd.

Development Agreement – 4 Units – Ryan & Dennis Hardiman – Granny Gear Management, LLC dated August 31, 2016

  ee.

Development Agreement – 3 Units – David Pelsue – DWP Enterprises, LLC dated October 7, 2016

  ff.

Development Agreement – 3 Units – Mark Van Kirk dated November 3, 2016

  gg.

Development Agreement – 3 Units – John & Becky Wick – Wicked Spinning, LLC dated March 1, 2017


  hh.

Development Agreement – 3 Units – Tony Virella dated March 9, 2017

  ii.

Development Agreement – 4 Units – Saul & Lisa Locker dated March 10, 2017

  jj.

Development Agreement – 3 Units – Loma & Bassam Ammar dated April 11, 2017

  kk.

Development Agreement – 2 Units – Marty & Craig Coffey dated May 17, 2017

  ll.

Development Agreement – 3 Units – Patrick Hickey dated May 31, 2017

  mm.

Development Agreement – 3 Units – April Amory & Kevin Grubb dated August 31, 2017

  nn.

Development Agreement – 3 Units – Jay Smith & Rod King dated October 31, 2017

  oo.

Development Agreement - 3 Units Joseph E. McGuire – dated 03-08-2018

  pp.

Development Agreement - 3 Units - Raymond J. Wicks and Joanne Diaz dated 05-01-2018

  qq.

Development Agreement - 3 Units - Tracy A. Young and Daryl G. Young dated 05-25-2018

CBF has entered into the following Development Agreements since December 31, 2016:

 

  1)

Development Agreement - CBF - Wicked Spinning, LLC Eff. 03-01-2017

  2)

Development Agreement - CBF - Anthony Virella - Socal Spin Group-1, LLC – Eff. 03-09-2017

  3)

Development Agreement - CBF – Saul & Lisa Locker - Eff. 03-10-2017

  4)

Development Agreement CBF Canada, ULC – Loma Ammar & Bobby Ammar - Maverick Fitness Corp. – Eff. 04-11 - 2017

  5)

Development Agreement - CBF – Patrick Hickey – Eff. 05-31-2017

  6)

Development Agreement - CBF – April Amory & Kevin Grubb – Eff. 08-31-2017

  7)

Development Agreement – CBF – Jay Smith & Rod King – Eff. 10-31-2017

  8)

Development Agreement - CBF - Joseph E. McGuire – Eff. 03-08-2018

  9)

Development Agreement - CBF - Raymond J. Wicks and Joanne Diaz - Eff.05-01-2018

  10)

Development Agreement - CBF - Tracy A. Young and Daryl G. Young - Eff. 05-25-2018

 

  2.

Master Franchise Agreements have been signed with the following parties:

  a.

Master Franchise Agreement – 5 Units – Jeet Khanchandani – JSK Fitness, L.L.C. dated August 22, 2016

  b.

Master Franchise Agreement – 30 Units – Oliver Chipp – Elan Fitness Ltd. dated March 2, 2017

 

  3.

CBF Franchise Agreements and Development Agreements have been amended, modified, accelerated, cancelled, or terminated since December 31, 2016 as follows


  1)

CycleBar Termination Letter- Patrick Hickey (05-17-2018)

  2)

CycleBar Guarantor Release- Kathryn Maguire (eff. 04-13-2018)

  3)

CycleBar and Anthony Bonidy- Resale Assistance Agreement (ex. 04-11-2018)

  4)

CycleBar and Scott Openshaw- Opening Deadline Amendment (ex. 04-04-2018)

  5)

CycleBar and Sharon Elizabeth- Resale Assistance Agreement (ex. 04-03-2018)

  6)

CycleBar and Amy Snow- Resale Assistance Agreement (ex. 03-30-2018)

  7)

CycleBar and 313 Fitness- Resale Assistance Agreement (ex. 03-29-2018)

  8)

CycleBar and CB-AR APA eff. 03-21-2018

  9)

Interim Studio Operations Agreement _CBF_M.D. Dolenc Enterprise_Eff. 7/27/17

  10)

Territory Swap Amendment - CBF_M.D. Dolenc Enterprise_Eff. 12/2/15

  11)

Development Agreement Amendment - CBF_RYR Colorado_Eff. 3/8/17

  12)

Resale Agreement - CBF_GHM_Eff. 3/16/17

  13)

Interim Studio Operations Agreement Renewal - CBF_Finition Inc._Eff. 4/25/17

  14)

Studio A/V Modification Agreement - CBF_Cycle Syndicate_Eff. 1/25/17

  15)

Transfer and Assignment Control (change of ownership transfer)- CBF_CICLO 3_Josabella_Eff. 7/10/17 (transferring CycleBar Winter Park to Matthew and Lauren Steinberg)

  16)

Transfer and Assignment Non-control transfer (entity transfer) - CBF_M.Schneider_CB Westend_Eff. 1/10/17

  17)

Interim Studio Operations Agreement - CBF_Simjah Inc._Eff. 1/3/17

  18)

Transfer and Assignment Control (change of ownership transfer)- CBF_Simjah Inc._CB-DO, LLC_Eff. 7/16/17 (transfer to Olander)

  19)

Termination Agreement - CBF_CB Raleigh_Eff. 4/3/17

  20)

Transfer and Assignment Control (change of ownership transfer)- CBF_CB Raleigh_CBBrier, LLC_Eff. 4/3/17 (transfer to Olander)

  21)

Construction Modification Agreement - CBF_7Knots_Eff. 5/3/17

  22)

Territory Swap Amendment (2) - CBF_CB Michigan_Eff. 6/27/17

  23)

Studio A/V Modification Agreement - CBF_Philly Cycle Inc._Eff. 5/19/17

  24)

Studio A/V Modification Agreement - CBF_Sloboda Inc._Eff. 1/31/17

  25)

Studio A/V Modification Agreement - CBF_K&K Cycling_Eff. 4/10/17

  26)

Studio A/V Modification Agreement - CBF_LiquiD RVA_Eff. 3/14/17

  27)

Opening Deadline Extension and Release (2) - CBF_D.Dasher & L.Hazen_Eff. 3/12/17

  28)

Termination Agreement - CBF_LGR LIFESTYLE_Eff. 1/31/17

  29)

Transfer and Assignment Control (change of ownership transfer)- CBF_K.Hoss & F.Clark_L.Lewis_Eff. 8/7/17 (transfer to Lisa Lewis)


  30)

Opening Deadline Extension and Release (4) - CBF_JMT Fitness Hillcrest_Eff. 1/20/17

  31)

Studio A/V Modification Agreement - CBF_Fit Endeavors I_Eff. 6/12/17

  32)

Studio A/V Modification Agreement - CBF_JM Cycle_Eff. 2/22/17

  33)

Termination Agreement - CBF_C.Goutal & C.Galle_Eff. 5/8/17

  34)

Site Acquisition Extension and Release - CBF_TDW Properties_Eff. 7/14/17

  35)

Resale Agreement - CBF_Next Level Cycling_Eff. 6/5/17

  36)

Resale Agreement - CBF_A.Rath & R.Rath_Eff. 1/27/17

  37)

Transfer and Assignment Non-control (entity transfer)- CBF_R.Korabik & E.Korabik_HTC Wellness_Eff. 3/20/17

  38)

Studio A/V Modification Agreement - CBF-Dev-Pro_Eff. 2/28/17

  39)

Transfer and Assignment Control (change of ownership transfer)- CBF_HighRev Lifestyle_HighRev Lifestyle2_Eff. 2/16/17 (transfer to new entity)

  40)

Termination Agreement - CBF_DalKor_Eff. 1/20/17

  41)

Opening Deadline Extension and Release - CBF_Fit Investments_Eff. 1/5/17

  42)

Opening Deadline Extension and Release - CBF_Schnapp Enterprises_Eff. 1/5/17

  43)

Studio A/V Modification Agreement - CBF_Schnapp Enterprises_Eff. 7/27/17

  44)

Opening Deadline Extension and Release - CBF_RockStrong Texas_Eff. 2/23/17

  45)

Studio A/V Modification Agreement - CBF_RockStrong Texas_Eff. 5/10/17

  46)

Opening Deadline Extension and Release - CBF_M.Harris_Eff. 2/28/17

  47)

Opening Deadline Extension and Release - CBF_A.Telford_Eff. 2/22/17

  48)

Studio A/V Modification Agreement - CBF_A.Telford_Eff. 3/3/17

  49)

Studio A/V Modification Agreement - CBF_JCM Kentucky Cycle_Eff. 3/3/17

  50)

Opening Deadline Extension and Release - CBF_K.Boss_Eff. 3/1/17

  51)

Opening Deadline Extension and Release - CBF_DB2 Fitness One_Eff. 2/22/17

  52)

Termination Agreement - CBF_D.Conway_Eff. 1/20/17

  53)

Opening Deadline Extension and Release - CBF_N.Fennell & C.Shill_Eff. 2/28/17

  54)

Opening Deadline Extension and Release - CBF_S.Zubrzycki & Jane Zubrzycki_Eff. 2/23/17

  55)

Transfer and Assignment Non-control transfer (entity transfer) - CBF_S.Zubrzycki & Jane Zubrzycki_Cycle Revolution Inc._Eff. 3/7/17

  56)

Opening Deadline Extension and Release - CBF_G.Venbrux & N.Venbrux_Eff. 2/23/17

  57)

Transfer and Assignment Non-control transfer (entity transfer) - CBF_C.Yates_Elevate Partners_Eff. 2/14/17

  58)

Opening Deadline Extension and Release - CBF_Elevate Partners_Eff. 2/23/17

  59)

Opening Deadline Extension and Release - CBF_Cycle City_Eff. 2/22/17

  60)

Opening Deadline Extension and Release - CBF_Off Islander_Eff. 2/23/17


  61)

Termination Agreement Extension - CBF_L.Smith-Emeri & B.Emeri_Eff. 6/5/17

  62)

Opening Deadline Extension and Release - CBF_T.D.Douglas_Eff. 2/22/17

  63)

Transfer and Assignment Non-control transfer (entity transfer)- CBF_T.D.Douglas_Cycle WS_Eff. 5/24/17

  64)

Opening Deadline Extension and Release - CBF_Echappe_Eff. 3/14/17

  65)

Opening Deadline Extension and Release - CBF_Spinenergy_Eff. 3/10/17

  66)

Termination Agreement - CBF_C.Gentry & C.Gentry & K.Wison-Torres_Eff. 8/14/17

  67)

Opening Deadline Extension and Release - CBF_L.Barela & G.Barela & J.Thornton_Eff. 3/23/17

  68)

Opening Deadline Extension and Release - CBF_J.Lundberg & E.Lundberg_Eff. 3/9/17

  69)

Site Acquisition Extension and Release - CBF_S.McCaulley & J.Lanigan_Eff. 1/10/17

  70)

Opening Deadline Extension and Release - CBF_C.Powell_Eff. 6/22/17

  71)

Opening Deadline Extension and Release - CBF_The Sharda Group_Eff. 5/24/17

  72)

Opening Deadline Extension and Release - CBF_MAGM Fitness_Eff. 8/14/17

  73)

Studio A/V Modification Agreement - CBF_MAGM Fitness_Eff. 5/15/17

  74)

Termination Agreement - CBF_B.Crell & E.Crell_Eff. 1/25/17

  75)

Site Acquisition Extension and Release - CBF_J.DiChiaro & K.DiChiaro_Eff. 1/10/17

  76)

Opening Deadline Extension and Release - CBF_J.DiChiaro & K.DiChiaro_Eff. 8/8/17

  77)

Transfer and Assignment Non-control transfer (entity transfer)- CBF_D.Bland_Positive Spin, LLC_Eff. 1/17/17

  78)

Site Acquisition Extension and Release - CBF_D.Bland_Eff. 1/5/17

  79)

Opening Deadline Extension and Release - CBF_Positive Spin_8/7/17

  80)

Transfer and Assignment Non-control transfer (entity transfer)- CBF_S.Sklar-Mulcahy_On Your Left Side_Eff. 6/26/17

  81)

Site Acquisition Extension and Release - CBF_KaiNir_Eff. 1/10/17

  82)

Opening Deadline Extension and Release - CBF_KaiNir_Eff. 8/8/17

  83)

Transfer and Assignment Non-control transfer (entity transfer)- CBF_R.Giese & L.Sumner_Ideal Cadence_Eff. 3/9/17

  84)

Site Acquisition Extension and Release - CBF_R.Giese & L.Sumner_Eff. 2/22/17

  85)

Site Acquisition Extension and Release - CBF_DWP Enterprises_Eff. 2/27/17

  86)

Site Acquisition Extension and Release - CBF_Hatfield Spinco_Eff. 3/1/17

  87)

Opening Deadline Extension and Release - CBF_Hatfield Spinco_Eff. 8/16/17

  88)

Site Acquisition Extension and Release - CBF_K&K FIT 4 LIFE_Eff. 2/28/17

  89)

Site Acquisition Extension and Release - CBF_M.Van Kirk_Eff. 3/8/17

  90)

Site Acquisition Extension and Release - CBF_Challenger 728_Eff. 2/23/17

  91)

Site Acquisition Extension and Release - CBF_MNM VENTURES_Eff. 3/6/17

  92)

Site Acquisition Extension and Release - CBF_A.Smith & N.Smith_Eff. 2/28/17


  93)

Site Acquisition Extension and Release - CBF_Desert Ventures CB1_Eff. 3/12/17

  94)

Site Acquisition Extension and Release - CBF_I&C Cycle_Eff. 3/15/17

  95)

Site Acquisition Extension and Release - CBF_L.Aquino_Eff. 5/23/17

  96)

Transfer and Assignment Non-control transfer (entity transfer)- CBF_K.Anderson & E.Anderson_Lucky4_Eff. 8/1/17

  97)

Site Acquisition Extension and Release - CBF_K.Anderson & E.Anderson_Eff. 5/24/17

  98)

Site Acquisition Extension and Release - CBF_S.Stelmach_Eff. 6/5/17

  99)

Site Acquisition Extension and Release - CBF_A.Virella_Eff. 8/7/17

  100)

Transfer and Assignment Non-control transfer (entity transfer)- CBF_A.Virella_Socal Spin Group-1_Eff. 8/7/17

  101)

Site Acquisition Extension and Release - CBF_S.Locker & L.Locker_Eff. 8/2/17

  102)

Site Acquisition Extension and Release - CBF_ Mind Body Innovations_Eff. 8/7/17

  103)

Site Acquisition Extension and Release - CBF_Marshall CB_Eff. 8/2/17

  104)

Transfer and Assignment Non-control transfer (entity transfer)- CBF_T.Lotzer & J.Lotzer_Spinsation_Eff. 6/6/17

  105)

Site Acquisition Extension and Release - CBF_Horology New_Eff. 8/10/17

  106)

Site Acquisition Extension and Release - CBCanadaF_Maverick Fitness Corp._Eff. 8/12/17

  107)

Site Acquisition Extension and Release - CBF_I.Pross & L.Pross_Eff. 8/14/17

  108)

Site Acquisition Extension and Release - CBF_E.Schiller_Eff. 8/8/17

  109)

Site Acquisition Extension and Release - CBF_H.Pool & K.Boynton_Eff 8/15/17

  110)

Site Acquisition Extension and Release - CBF_ALWAYS4WARD_Eff. 8/16/17

  111)

Transfer and Assignment Non-control transfer (entity transfer)- CBF_ M.Coffey_Coffey Bar_Eff. 7/16/17

  112)

Site Acquisition Extension and Release - CBF_Coffey Bar_Eff. 8/16/17

  113)

Transfer and Assignment Non-control transfer (entity transfer)- CBF_J.Bass_J Bass Inc._Eff. 7/10/17

  114)

Site Acquisition Extension and Release - CBF_J Bass Inc._Eff. 8/21/17

  115)

Site Acquisition Extension and Release - CBF_C.Straughan & K.Droby_Eff. 8/16/17

  116)

Transfer and Assignment Control (change of ownership  transfer)-CBF_K.Hoss & F.Clark_It’s Cyclical_Eff. 8/7/17 (transfer of FA from Kim Hoss and Frances Clark to Lisa Lewis)

  117)

Studio A/V Modification Agreement - CBF_Heather Sommers, LLC_Eff. 4/10/17

  118)

Studio A/V Modification Agreement - CBF_Alpha Team Holdings LLC_Eff. 4/24/17

  119)

Studio A/V Modification Agreement - CBF_CB3 LLC_Eff. 5/30/17

  120)

Studio A/V Modification Agreement - CBF_Ohana Fitness, Inc._Eff. 9/7/17

  121)

Studio A/V Modification Agreement - CBF_Kraken Cycleworks, LLC_Eff. 9/11/17

  122)

Studio A/V Modification Agreement - CBF_Positive Spin, LLC_Eff. 9/13/17


  123)

Transfer and Assignment Control (change of ownership transfer)- CBF_Patricia Harte to Peak Cycle Holdings_Eff. 10/13/17 (transfer to new entity)

  124)

Termination Agreement- Wicked Spinning Eff. 10/18/2017

  125)

Opening Deadline Extension and Release - CBF_Desert Ventures CBI_Eff. 10/16/17

  126)

Opening Deadline Extension and Release - CBF_Challenger 728, LLC Eff. 10/16/17

  127)

Opening Deadline Extension and Release - CBF_Laura Aquino Eff. 10/16/17

  128)

Site Acquisition Extension and Release - CBF_Velo Fitness LLC Eff. 10/30/17

  129)

Transfer and Assignment Non-control transfer (entity transfer)- CBF_ K. Boss & S. Pineault to Novaturient_Eff. 10/30/17

  130)

Studio A/V Modification Agreement - CBF_Dev-Pro, LLC_Eff. 10/30/17

  131)

Termination Agreement - CBF_Eminence 3 Holdings_Eff. 10/30/17

  132)

Opening Deadline Extension and Release - CBF_I & C Cycle, LLC Eff. 10/31/17

  133)

Opening Deadline Extension and Release - CBF_VK2, LLC Eff. 11/3/17

  134)

Site Acquisition Extension and Release - CBF_ Minty, Minesh, Davesh Patel Eff. 11/3/17

  135)

Site Acquisition Extension and Release - CBF_ Breathe Fitness, LLC Eff. 11/3/17

  136)

Opening Deadline Extension and Release - CBF_K. & E. Anderson Eff. 11/3/17

  137)

Resale Assistance Agreement – Holm Family Holdings_Eff. 11/13/17

  138)

Resale Assistance Agreement – Next Level Cycling_Eff. 11/13/17

  139)

Interim Studio Operations Agreement - CBF_MD Dolenc._Eff. 11/15/17

  140)

Studio A/V Modification Agreement - CBF_ MdG Seville, LLC_Eff. 11/15/17

  141)

Termination Agreement - CBF_S. & J. Jonietz Eff. 11/17/17

  142)

Transfer and Assignment Control (change of ownership transfer)- CBF_Eminence3 Holdings, LLC to CBBrier, LLC_Eff. 11/20/17 (transfer to new entity)

  143)

Transfer and Assignment Non-control transfer (entity transfer)- CBF_ Avante-garde Fitness to AG3_Eff. 11/22/17

  144)

Studio A/V Modification Agreement - CBF_ Zellman_Eff. 12/1/17

  145)

Transfer and Assignment Control (change of ownership transfer)- CBF_DCL Fitness, Inc. to JCM Kentucky Cycle, LLC_Eff. 12/15/17 (transfer to new entity)

  146)

Termination Agreement - CBF_Smith-Emeri Eff. 12/15/17

  147)

Studio A/V Modification Agreement - CBF_ JCM Kentucky, LLC_Eff. 12/15/17

  148)

Transfer and Assignment Control (change of ownership transfer)- CBF_Deep Enterprises Eff. 12/18/17 (added new owner-Bernstein)

  149)

Studio A/V Modification Agreement – CBF Spinergy_Eff. 1/3/18


  150)

Studio A/V Modification Agreement – CBF Benson_Eff. 1/4/18

  151)

Transfer and Assignment Non-control transfer (entity transfer)- CBF_ Williams to LJW74, Inc._Eff. 1/19/18

  152)

Transfer and Assignment Control (change of ownership transfer)- CBF_ RYR Colorado to Locker Fit Lifestyle DTC Eff. 2/2/18 (transfer to new entity)

  153)

Transfer and Assignment Control (change of ownership transfer)- CBF_ RYR Colorado to Locker Fit Lifestyle LoHi Eff. 2/2/18 (transfer to new entity)

  154)

Termination Agreement - CBF_N. & A. Smith Eff. 2/22/18


(c)

Area Development Agreement (ADA

Summary) - excluding terminations

 

As
of:
  

06/1

8/18

                  Franchisee
Information
              Studio Information     
     Area Name    State    Owner
ID
   CP
License
   Last
Name
   First
Name
   Franchisee
Phone
  

Franchisee

Email

   ADA Date    Total
#
Studios
in
ADA
   Develo
pment
Fee
   #
Studios
Open
(PreSale)
   Street    City    State    Zip    Studio
Phone
   Develo
pment
Schedule
   # Add’l
Studios
to be
Opened
1    Stamford    CT    7001    1297    Ackerman     Scott    917.
692.
8894
   scott.ackerman
@clubpilates.com
   10/25/16    6    $210,000    2    1063 Boston Post Road    Darien    CT    6880         03/25/17    4
             7001    1299                                            427 Post Road East    Westport    CT    6880    203-

990-

1011

   01/25/18     
             7001    1298                                                                     08/25/17     
             7001    1300                                                                     06/25/18     
             7001    1301                                                                     11/25/18     
             7001    1302                                                                     04/25/19     
2    Manhattan     NY    7002    1392    Acquista    Dominick     Dom:
917.
774.
2853
  

dominick.acquista 

@clubpilates.com

   01/31/17     3    $125,000     1    47 Murray 
Street
   New

York

   NY    10007    646-

289-

5099

   12/04/16    2


7002 1393 01/31/18
7002 1394 07/31/18
3 Renton WA 7003 1036 Adams Nikki (253)
709-
1446

nikki.adams
@clubpilates.com;

paul.adams
@clubpilates.com

12/04/14 4 n/a -

pre-
acquisition

3

124

4th Ave South

Kent WA 98032 253.
709.
1446
12/04/16 1
7003 1180

13382

Newcastle Commons Dr

Newcastle WA 98059 253-
499-
2233
12/30/16
7003 1035

143

106th Ave NE

Bellevue WA 98004 253-
709-
1446
08/17/15
7003 1037 12/04/17
4 South Carolina SC 7004 1430 Agnoff Steve & Mindy 910-
313-
0230

steve.agnoff
@clubpilates.com;

mindy.agnoff
@clubpilates.com

03/08/17 3 $125,000 2 1121-F Military Cutoff Rd., Wilmington NC 28405 910.
408.
2630
09/08/17 1
7004 1431

1407

Barclay Pointe Blvd, Suite 403

Wilmington NC 28412 (910)
260-
5511
03/08/18
7004 1432 09/08/18
5 Chicago IL 7008 1303 Asbury Janet 773.
983.
8165
janet.asbury
@clubpilates.com
10/26/16 3 $125,000 2

1849

Green Bay Road, Suite 109

Highland Park IL 60035 224.
707.
0171
04/26/17 1


7008 1304

1442

Waukegan Rd.

10/26/17
7008 1305 04/26/18
6 Madison WI 7014 1329 Baldwin Nathan & Erica N:
608.
609.
5152

nathan.baldwin
@clubpilates.com;

erika.baldwin
@clubpilates.com

11/18/16 3 $125,000 2 390 S Grand Ave Madison WI 53711 608-
855-
9132
05/18/18 1
7014 1330

2623

Monroe St Suite

130

Sun Prairie WI 53590 608-
371-
1901
11/18/17
7014 1328 05/18/18
7 Chicago IL 7014 1383 Baldwin Nathan & Erica N:
608.
609.
5152

nathan.baldwin
@clubpilates.com;

erika.baldwin
@clubpilates.com

01/24/17 4 $165,000 2 901 W Madison St. 07/23/17 2
7014 1384 01/23/18
7014 1385 07/23/18
7014 1386 01/23/19
8 New Braunfels TX 7020 1365 Becker Lance & Sara L:
512.
787.
3703

lance.becker
@clubpilates.com;

sarah.becker
@clubpilates.com

12/16/16 4 $165,000 3

1935

W State Hwy

46,

Suite

104

New Braunfels TX 78132 830.
632.
9666
06/16/17 1


7020 1367

20210

Stone Oak Parkway, Suite

105

San Antonio TX 78258 866-
808-
1212
06/16/18
7020 1366

3300

East Broad St

#130

Mansfield TX 76063 817-
592-
2555
12/16/17
7020 1649 05/15/18
9 Simi Valley CA 7023 1209 Bloore Ken & Allison K:
818.
917.
8114

ken.bloore
@clubpilates.com;

allison.drury
@clubpilates.com

08/17/16 3 $125,000 2

2955

Cochran St

#B201

Simi

Valley

CA 93065 805.
261.
1444
02/19/17 1
7023 1210

4020

E. Main St. #B-

1-2

Ventura CA 93003 805.
856.
4424
08/19/17
7023 1211 02/19/18
10 Savage MN 7029 1276 Bounds Steve & Angela S:
303.
883.
4605

steve.bounds
@clubpilates.com;

angela.bounds
@clubpilates.com

09/29/16 6 $210,000 3

14010

Highway 13

South

Minneapolis MN 55378 952.
777.
5905
02/28/17 3
7029 1277

16106

Pilot Knob Road, Suite 130

Minneapolis MN 55345 (952)
467-
8727
07/29/17


7029 1278

17760

MN-7, Minnetonka

Minnetonka MN 55345 952-
777-
4440
12/29/17
7029 1279 05/29/18
7029 1280 10/29/18
7029 1281 03/29/19
11 Plano TX 7032 1140 Buck Chris and Nathalie N:
214.
770.
5525

nathalie.buck
@clubpilates.com;

chris.buck
@clubpilates.com

04/11/16 3 $125,000 1

6959

Lebanon Road, Ste

121

Frisco TX 75034 469.
701.
1252
10/12/16 2
7032 1141 04/12/17
7032 1142 10/12/17
12 Richmond VA 7033 1452 Burleigh Brian 804-
402-
0353
bryan.burleigh
@clubpilates.com
04/10/17 3 $125,000 1

5454

Wyndham Forest Drive

Glen

Allen

VA 23059 804-
250-
5170
10/10/17 2
7033 1453 04/10/18
7033 1454 10/10/18
13 Highlands Ranch West CO 7034 1574 Busse Mary Mary
(760)
801-
9416
mary.busse
@clubpilates.com
09/17/13 3 n/a -
pre-
acquisition
3

200

Quebec, Bldg. 500,
Unit 109

Denver CO 80230 02/15/18 -


7034 1066

2229

Wildcat Reserve Parkway

Highlands
Ranch
CO 80129 720.
557.
9606
01/10/16
7034 1017

3033

E 1st Ave Suite

102

Denver CO 80206 720-
233-
1352
02/15/18
14 Colorado State CO 7034 1575 Busse Mary

Mary

(760)
801-
9416

mary.busse
@clubpilates.com
03/31/14 2 $99,000 - 08/15/18 2
7034 1576 02/15/19
15 Norfolk VA 7045 1455 Celia Joe 917-
991-
0400
joe.celia
@clubpilates.com
04/10/17 3 $125,000 1

4640

Casey Blvd Suite

110

Williamsburg VA 23188 757-
772-

6316

10/10/17 2
7045 1456 04/10/18
7045 1457 10/10/18
16 Tulsa OK 7048 1372 Clark Curt 918.
740.
0777

curt.clark
@clubpilates.com;

victoria.clark
@clubpilates.com

12/19/16 3 $125,000 2

11476

S

Union Ave Ste

102

Jenks OK 74037 918.
291.
1420
12/19/17 1
7048 1371

9130

S Sheridan Rd

Tulsa OK 74133 918-
770-
7391
06/19/17
7048 1373 06/19/18


17

Short

Hills

NJ 7052 1125 Collins Caroline &
Dennis

C: 917.
796.

9618

caroline.collins
@clubpilates.com;

dennis.collins
@clubpilates.com

03/23/16 3 $125,000 3

53

Main

St

Madison NJ 07940 973-
765-
6260
03/23/17 -
7052 1124

770

Morris Turnpike

Short

Hills

NJ 07078 973.
710.
4755
09/23/16
7052 1126

25

Mountainview Blvd.

09/23/17
18

Missoula

& Asheville

MT/ NC 7056 1449 Cropp Kevin &
Hadley

K: 919-

593-

0337

kevin.cropp
@clubpilates.com;

hadley.cropp
@clubpilates.com

04/07/17 3 $125,000 1

One

Town Square Blvd Ste

155

Asheville NC 28803 828-
318-
8800
10/07/17 2
7056 1450 04/07/18
7056 1451 10/07/18
19 Lafayette CA 7236 1102 Siva/Swift Jan/Darrell

520.

289.

0439

jan.siva
@clubpilates.com;

darrel.swift
@clubpilates.com

02/23/16 3 $125,000 1

3506

Mt. Diablo Blvd.,

Suite E

Lafayette, CA 94549 925.
900.
5788
08/23/16 2
7236 1103 02/17/17
7236 1104 08/16/17
20 Naples FL 7063 1400 Deutsch Adam 614.
309.
9890
adam.deutsch @clubpilates.com 02/15/17 6 $210,000 - 07/15/17 6


7063 1401 12/15/17
7063 1402 05/15/18
7063 1403 10/15/18
7063 1404 03/15/19
7063 1405 08/15/19
21 Westfield NJ 7007 1136 Dimitrios/
Helen /
Arnold/Amy
Angelis / DeGarcia D:
914.
772.
9973

A:
917.
921.
2595

dimitrios.angelis
@clubpilates.com;

helen.angelis
@clubpilates.com;

arnold.degarcia
@clubpilates.com;

amy.degarcia
@clubpilates.com

03/31/16 3 $125,000 2

225

Broad

Ave

Westfield NJ 07090 908.
233.
0950
10/04/16 1
7007 1137

277

Eisenhower Pkwy

Livingston NJ 7039 973.
62a521
04/04/17
7007 1138 10/04/17
22 Belmar CO 7073 1069 Easterly Kevin 760.
845.
5686
kevin.easterly
@clubpilates.com
12/08/14 3 n/a -
pre-
acquisition
3

11757

West Ken Caryl Avenue, Suite G

Littleton CO 80127 720.
579.
7285
01/00/00 -


7073 1068

437 S

Wadsworth Blvd,

Suite F

Lakewood CO 80226 720-
789-
1011
01/00/00
7073 1070

7600

Landmark Way, Suite B-106

Greenwood Village CO 80111 720-
546-
2100
10/01/17
23 Lehi UT 7074 1346 Edmonds/Miller

Mike & Becky/Scott

& Karie

801.
707.
5630

mike.edmonds
@clubpilates.com;

scott.miller
@clubpilates.com

11/22/16 6 $210,000 3

1140

E. Brickyard Rd.

#30

Salt Lake City UT 84106 801-
939-
2300
09/29/17 3
7074 1345

1881

W.

Traverse Parkway,

Ste B

Lehi UT 84043 385-
831-
7077
04/29/17
7074 1347

530 W

500 S Suite D

Bountiful UT 84010 801-
317-
1766
03/01/18
7074 1348 07/29/18
7074 1349 12/29/18
7074 1350 05/29/19
24

Pembroke

Pines

FL 7075 1288 Elgarresta / Harper Ed / Christina E:
305.
606.
6198

ed.elgarresta
@clubpilates.com;

christina.elgarresta
@clubpilates.com

10/07/16 4 $165,000 2

10045

Cleary

Blvd

Plantation FL 33324 (954)
280-
2582
10/11/17 2


7075 1287

14954

Pines

Blvd

Pembroke

Pines

FL 33027 954-
500-
2582
04/11/17
7075 1289 04/11/18
7075 1290 10/11/18

25

Klein TX 7078 1087 Fichaud / Bryan Chris / Susan C:
713-
254-
0213

S:
713.
882.
8873

chris.fichaud
@clubpilates.com;

susan.bryan
@clubpilates.com

11/30/15 3 $125,000 2

7316

Louetta Road

#B302

Spring TX 77379 (281)
607-
2485
05/30/16 1
7078 1088

9955

Barker Cypress Ste

215

Cypress TX 77433 832-
653-
9419
11/30/16
7078 1089 05/30/17

26

Indian Lake TN 7079 1246 Fielder Tom 615.
579.
3070
tom.fielder
@clubpilates.com
09/22/16 6 $210,000 2

217

Indian Lake Blvd. Ste.

1002

Hendersonville TN 37075 615.
270.
2470
02/23/17 4
7079 1247

4326

Harding Pike, Suite

105

Nashville TN 37205 615.
988.
4488
07/23/17
7079 1248 12/23/17


7079 1249 05/23/18
7079 1250 10/23/18
7079 1251 03/23/19
27 Austin TX 7081 1333 Fraser Theresa & Glenn T:
858.
750.
8595
theresa.fraser
@clubpilates.com
11/21/16 3 $125,000 2

166

Hargraves Drive, Suite

500

Austin TX 78737 512-
212-
7525
11/22/17 1
7081 1332

2712

Bee Cave Rd

Austin TX 78746 512.
515.
1440
05/22/17
7081 1334 05/22/18
28 Cleveland OH 7085 1425 Gage Anita 330-
714-
6792
anita.gage
@clubpilates.com
03/02/17 6 $210,000 4

311

Park Ave., Ste. 123

Orange OH 44122 440-
703-
6077
01/07/18 2
7085 1426

34348

Aurora Rd Unit

19

Solon OH 44139 440-
201-
7064
06/07/18
7085 1424

8474

East Washington St. Unit

11

Chagrin Falls OH 44023 440-
804-
5110
08/07/17
7085 1427

118 W

Streetsboro

St.,

Room 25

11/07/18


7085 1428 04/07/19
7085 1429 09/07/19
29 Tucson AZ 7087 1284 Garrison Kathy 520.
444.
0163
kathy.garrison
@clubpilates.com
10/06/16 3 $125,000 3

6872

EAST SUNRI SE DRIVE,

#150

Tucson AZ 85750 520.
428.
0130
04/06/17 -
7087 1285

7972

N Oracle Rd

Oro

Valley

AZ 85704 (520)
244-
3300
10/06/17
7087 1296

9245

Virginia Pkwy, Suite

#200

04/06/18
30 Scottsdale AZ 7088 1153 Gatzemeier Don &
Emma
602.
663.
2049
don.gatzemeier
@clubpilates.com
05/16/16 3 $125,000 2

16447

N.

Scottsdale Rd.

Suite 119

Scottsdale AZ 85254 480.
447.
4044
11/17/16 1
7088 1155

20910

N. Tatum Blvd., Suite 110

Phoenix AZ 85050 480.
795.
3357
11/17/17
7088 1154 05/17/17


31

New

York

NY 7093 1357 Goldenberg Louisa 646.
729.
3230

louisa.goldenberg
@clubpilates. com;

michael.goldenberg
@clubpilates.com

12/12/16 3 $125,000 1

485

Kings Highway

Brooklyn NY 11223 (718)
701-
0109
06/12/17 2
7093 1358 06/12/18
7093 1359 12/12/17
32 Winter Park FL 7094 1145 Goldman Christine 321.
231.
5262
christine.goldman
@clubpilates.com
04/15/16 3 $125,000 1

1222

N. Orange Ave.

Ste B

Winter Park FL 32789 407.
960.
7042
10/15/16 2
7094 1147 10/15/17
7094 1689 10/15/17
33

Sugar

Land

TX 7098 1282 Gowens Bret 832.
659.
4501
bret.gowens
@clubpilates.com
09/29/16 2 $99,000 2

3157

Highway 6

Sugar

Land

TX 77478 281.
369.
4977
03/29/17 -
7098 1283

8740

Hwy 6

#100

09/29/17
34 Jacksonville FL 7099 1212 Graham Rick & Dawn R:
210.
559.
1732

rick.graham
@clubpilates.com;

dawn.graham
@clubpilates.com

08/23/16 3 $125,000 2

14035

Beach Blvd. Suite G

Jacksonville FL 904-
289-
8300
02/23/17 1
7099 1213

11112

San Jose Blvd.

# 6

08/23/17
7099 1214 02/23/18


35 DC VA 7100 1291 Grams Michael 703-
949-
0378
michael.grams
@clubpilates.com
10/10/16 3 $125,000 2

1101

S. Joyce St.,

Suite B14

Arlington VA 22202 571-
429-
4690
04/12/17 1
7100 1292

1521

Boyd Pointe Way

Suite B

10/12/17
7100 1293 04/12/18
36 St. Petersburg FL 7103 1165 Griffin Jim 224.
436.
0647

jim.griffin
@clubpilates.com;

catherine.griffin
@clubpilates. com

05/31/16 6 $210,000 4

11677

San Vicente Blvd Ste,

304

Los Angeles CA 90049 424-
368-
2650
11/31/16 2
7103 1167

15230

Sunset Blvd

Pacific Palisades CA 90272 424-
252-
9868
11/31/17
7103 1164

120

Central Avenue

St. Petersburg FL 33701 (727)
550-
0100
11/31/18
7103 1163

938

South Howard Ave

Tampa FL 33606 813-
607-
2990
05/31/18
7103 1166 05/31/17
7103 1168 05/31/19
37 Maryland MD 7104 1318 Grover Jan & Chuck 240.
578.
0093
jan.grover
@clubpilates.com; chuck.grover
@clubpilates.com
11/15/16 3 $125,000 1 4959 Westview Dr. Suite D Frede rick MD 21703 301-
304-
4880
05/16/17 2


7104 1319 11/16/17
7104 1320 05/16/18
38 Tempe AZ 7108 1133 Guzick Bill / Jennifer J:
480.
695.
7116

Bill:
480.
826.
4181

jennifer.guzick
@clubpilates.com;

bill.guzick
@clubpilates.com

03/31/16 3 $125,000 2

1825

East Guadalupe Ste F-102

Tempe AZ 85283 480.
566.
0335
09/30/16 1
7108 1134

4085

South Gilbert Road, Shops B -
Suite 5

Chandler AZ 85249 480.
771.
4459
03/31/17
7108 1135 09/30/17
39 Orange County CA 7109 1052 Hammett Emily Emily

(626)
233-
9220

emily.hammett
@clubpilates.com
03/04/15 4 $165,000 4

15080

Kensington Park Dr, Suite G300

Tustin CA 92782 949.
529.
0704
10/23/16 -
7109 1050

17767

Santiago Blvd., Suite 610

Villa

Park

CA 92861 714.
202.
6404
01/00/00


7109 1051

21612

Plano Trabuco Road, Suite A

Trabuco Canyon CA 92679 949.
534.
2023
10/23/16
7109 1053

802

Avenida Talega

Ste 104

San Clemente CA 92673 949-
391-
3704
05/15/17
40 Charlotte NC 7113 1169 Harris Doug 704.
491.
6717

doug.harris
@clubpilates.com;

kris.harris
@clubpilates.com

06/03/16 3 $125,000 2

10822

Providence Rd

Ste 800

Charlotte NC 28277 980.
272.
481
12/01/16 1
7113 1170 06/01/17
7113 1171 12/01/17
41 Longmont CO 7115 1072 Hendricks Joe Joe
303-
513-
4498

Kelly
720-
355-
1954

kelly.hendricks
@clubpilates.com
08/17/15 3 $125,000 3

2850

Baseline Road

Boulder CO 80303 720-
675-
9435
02/07/17 -
7115 1073

535 W

south Boulder Rd.

Lafayette CO 80026 720-
442-
0842
08/11/16
7115 1071

700

Ken

Pratt Boulevard

Longmont CO 80501 720.
442.
8385
02/13/16


42 Austin TX 7117 1336 Hernandez/Lindner Hector /  Molly 512.
593.
3652

hector.hernandez
@clubpilates. com;

molly.lindner
@clubpilates.com

11/22/16 3 $125,000 2

2800

South IH-35,
Suite 160

Round Rock TX 78681 512-
399-
5216
11/23/17 1
7117 1335

5001

183A

Toll Road Suite G400

Cedar

Park

TX 78613 512.
399.
5212
05/23/17
7117 1337 05/23/18
43 Sacramento CA 7120 1189 Holmes Brian B:
661.
332.
2233

brian.holmes
@clubpilates.com;

adrian.holmes
@clubpilates.com

07/01/16 4 $165,000 3

2529

Fair Oaks Blvd

Sacramento CA 95825 916.
400.
9225
07/01/17 1
7120 1190

2766 E.

Bidwell St.
Suite 100

Folsom CA 95630 916-
597-
0799
12/28/17
7120 1188

8235

Laguna Blvd.

#120

Elk

Grove

CA 95758 916.
936.
2582
01/02/17
7120 1191 06/26/18
44 Hoboken NJ 7122 1175 Horvath Emese 770.
910.
2934
emese.horvath
@clubpilates.com
06/20/16 3 $125,000 2

1400

Hudson Street

Suite 3C

Hoboken NJ 07030 201-
839-
6648
12/21/16 1


7122 1176

45-4

Riverwalk Pl.,

West New York NJ 07093 201.
875.
1550
06/21/17
7122 1177 12/21/17
45 Scottsdale AZ 7128 1205 Jacobs Keith K:
910-
274-
8201

keith.jacobs
@clubpilates.com;

yvette.jacobs
@clubpilates.com

07/29/16 3 $125,000 3

3750 E.

Indian School Road

Phoenix AZ 85018 480.
372.
4692
01/29/18 -
7128 1204

8787 N. Scottsdale Rd.

Ste23 2

Scottsdale AZ 85253 480-
462-
1299
07/29/17
7128 1203 9301 E. Shea Unit 104 Scottsdale AZ 85260 480.
771.
3774
01/29/17
46 Baltimore MD 7133 1368 Kay / Bateman Karla /  Liana 717.
825.
6150

karla.kay
@clubpilates.com;

liana.bateman
@clubpilates.com

12/16/16 3 $125,000 2

100

Shawan Rd. Suite C

Hunt

Valley

MD 21030 443-
541-
5505
06/16/17 1
7133 1369

10209

GRAND CENTRAL AVE., SUITE 110

Ownings Mills MD 21117 443.
541.
5424
12/16/17


7133 1370 06/16/18
47 Ft. Lauderdale FL 7136 1271 Kennedy Kelly 305.
389.
5399
kelly.kennedy
@clubpilates.com
09/22/16 3 $125,000 3

7050 W. Palmetto Park Rd

#49/50

Boca

Raton

FL 33433 561.
717.
2120
03/27/17 -
7136 1270

Linton

Blvd.

& Lavers Ave.

Delray Beach FL 33444 0 09/27/17
7136 1272 #N/A 03/27/18
48 Sarasota FL 7138 1462 Kilcullen /  Keith Peter / Gary P:
727.
647.
0429
0 04/14/17 3 $125,000 2

5408

Lockwood Ridge Rd

Bradenton FL 63385 636-
856-
5270
10/14/17 1
7138 1463 8210 S. Tamiami Trail Sarasota FL 34238 941-
567-
6128
04/14/18
7138 1464 10/14/18
49 Saratoga CA 7141 1112 Ko/Wu Ken/Jessie k:
408.
641.
1511

ken.ko
@clubpilates.com;

jessie.wu
@clubpilates.com

03/15/16 3 $125,000 2

14410

Big Basin Way, STE E

Saratoga CA 95070 669.
256.
5200
09/16/16 1
7141 1113

4338

Moorpark Ave

San

Jose

CA 95129 669-
200-
5098
03/16/17


7141 1114 09/16/17
50 Chicago IL 7144 1433 Kohn Eric & Kristin 773-
580-
9602

eric.kohn
@clubpilates.com;

kristin.kohn
@clubpilates.com

03/08/17 6 $210,000 2

810 E.

Ogden Ave., Unit

25

Westmont IL 60559 630-
538-
7235
08/08/17 4
7144 1434

708

Lake

St.

01/08/18
7144 1435 06/08/18
7144 1436 11/08/18
7144 1437 04/08/19
7144 1438 09/08/19
51 San Carlos CA 7151 1184 Lance

Renata and

Sean

Renata

(650)
759-
3283

renata.lance
@clubpilates.com;

sean.lance
@clubpilates.com

05/12/14 3 n/a -
pre-
acquisition
3

1921

Douglas Boulevard, Suite

104

Roseville CA 95661 916.
318.
9908
12/31/16 -
7151 1019

490

South California

Ave

Palo

Alto

CA 94306 843-
800-
8991
02/01/16
7151 1018

50 El

Camino Real,

#50

San Carlos CA 94070 650-
722-
4710
01/00/00
7151 1363 06/15/17


52 Atlanta GA 7155 1354 Ledford Mandy 828.
925.
3263
mandy.ledford
@clubpilates.com
11/30/16 3 $125,000 2 Church St & N Decauter Rd Deautur GA (770)
299-
9513
05/30/17 1
7155 1355

2943 N.

Druid Hills Rd. NE

#460

11/30/17
7155 1356 05/30/18
53 Alexandria VA 7156 1439 Lee Mindy 540-
419-
5079
mindy.lee
@clubpilates.com
04/18/17 3 $125,000 - 09/13/17 3
7156 1465 03/18/18
7156 1466 09/18/18
54 New Hyde Park NY 7160 1306 Lo David D:
646.
379.
0824

M:
516.
527.
4712

david.lo
@clubpilates.com;

michelle.lo
@clubpilates.com

10/26/16 3 $125,000 1

1632

Marcus Ave.

New Hyde Park NY 11040 516-
654-
6938
04/26/17 2
7160 1307 10/26/17
7160 1308 04/26/18
55 Brickell FL 7106 1105

Maria

Gutierrez

Tania Peck T:
786.
218.
3572

M:
954.
673.
1536

Tania.peck
@clubpilates.com;

Mariaisabel.gutierrez
@clubpilates.com

02/26/16 2 $99,000 2

117 SW

10th Ste

#103

Miami FL 33130 786.
509.
9831
08/24/16 -
7106 1107

30 NW

34th

St #2

Miami FL 33127 (blank) 08/24/17


7106 1106

5855

SW 72

St

South

Miami

FL 33143 (786)
577-
9651
08/24/17
56 Highland Village TX 7168 1255 Martin Todd & Debi D:
972.
977.
7277

debi.martin
@clubpilates.com;

todd.martin
@clubpilates.com

09/26/16 7 $300,000 4

2317

North Tarrant

Parkway, Suite

423

Fort Worth TX 76177 682.
312.
6030
05/23/18 3
7168 1252

2540

Justin Rd. Suite

177

Highland Village TX 75077 972.
597.
4275
02/23/17
7168 1253

4000 N. MacArthur Blvd. Ste

#A122

Irving TX 75038 469.
214.
4822
07/23/17
7168 1254

4701

Colleyville Blvd. Ste

430

Dallas TX 76034 817.
409.
6970
12/23/17
7168 1256 10/23/18
7168 1257 03/23/19
7168 1258 08/23/19
57 DFW TX 7177 1259 Millwee Sarah 310-
795-
7465
sarah.millwee
@clubpilates.com
04/05/18 3 $30,000 10/05/18


7177 1260 04/05/19
7177 1261 10/05/19
58 Portland OR 7171 1421 McCartney Alyssa 503-
740-
5025
alyssa.mccartney
@clubpilates.com
03/02/17 3 $125,000 1

12900

SE

162nd Ave.,
Ste. 101

Happy Valley OR 97086 (971)
236-
7634
09/03/17 2
7171 1422 03/03/18
7171 1423 09/03/18
59 Emeryville CA 7175 1118 Miller Jerry & Melissa M:
510.
919.
4484

melissa.miller
@clubpilates.com;

jerry.miller
@clubpilates.com

03/18/16 3 $125,000 1

2651

Blanding Avenue, Suite D

Alameda CA 94501 (510)
578-
8593
09/18/16 2
7175 1119 03/18/17
7175 1120 09/18/17
60 Framingham MA 7176 1221 Miller Mike & Tammy T:
860.
817.
8995

tammy.miller
@clubpilates.com;

mike.rizzo
@clubpilates.com

08/25/16 6 $210,000 2

25

Prospect St

Framingham MA 01701 774.
999.
0209
01/25/17 4
7176 1222

389

Revolution Dr

Somerville MA 02145 857-
997-
2580
06/25/17
7176 1223 11/25/17


7176 1224 04/25/18
7176 1225 09/25/18
7176 1226 02/25/19
61 Miami FL 7178 1243 Mochon / Rosentgberg Daniela /  Horacio D
786.
301.
2759

daniela.mochon
@clubpilates. com;

horacio.rosentgberg
@clubpilates.com

09/16/16 3 $125,000 2

16850

Collins

Ave

#113D

Sunny Isles Beach FL 33160 786-
765-
4646
03/11/17 1
7178 1244

19021

Biscayne Blvd.

09/11/17
7178 1245 03/11/18
62 St. Paul MN 7185 1339 Nelson Topher 612.
723.
6075
topher.nelson
@clubpilates.com
11/23/2016* 6 $210,000 3

3845

Lexington Avenue North,
Suite 111

Arden

Hills

MN 55126 651-
383-
4640
11/23/17 3
7185 1338 *Amended
11/21/17
4717 N. Highway 61 White Bear Lake MN 51110 651.
505.
4200
05/23/17
7185 1340

10945

Club Westparkway NE
Suite 150

05/23/18


63 7185 1646 10/23/18
7185 1647 03/23/19
7185 1648 08/23/19
64 Seattle WA 7186 1441 Nicholson Candi 206-
661-
7334
candi.nicholson
@clubpilates.com
03/03/17 3 $125,000 1 124

Denny

Way

Seattle WA 98109 206-
661-
7334
09/14/17 2
7186 1442 425

Fairview
Ave N

03/14/18
7186 1443 09/14/18
65 Santa Clarita CA 7191 1458 Ovakimian Sarkis /  Esther S:
818.
675.
5061

sarkis.ovakimian
@clubpilates.com;

ester.plavdjian@
clubpilates.com

04/10/17 4 $165,000 2 27736

McBean
Pkwy

Valencia CA 91354 (661)
977-
6622
10/10/17 2
7191 1092 5077

Lankershim
Boulevard
Suite F

North Hollywood CA 91601 818-
2103
422
06/22/16
7191 1459 04/10/18
7191 1460 10/10/18
66 Symmes Township OH 7192 1115 Pallatroni Bob 513.
225.
4475
bob.pallatroni
@clubpilates.com
03/17/16 3 $125,000 1 12088

Montgomery

Road

Cincinnati OH 45249 513.
766.
9008
09/17/16 2


7192 1116 03/17/17
7192 1117 09/17/17
67 Mooresville NC 7196 1262 Pennypacker John 980.
240.
1792
john.pennypacker
@clubpilates.com
09/20/16 3 $125,000 3

146

Mooresville Commons Way
Unit 25

Mooresville NC 28117 980.
260.
0000
03/23/17 -
7196 1263

9525

Birkdale Crossing Drive
Ste 102

Huntersville NC 28078 704-
631-
5600
09/23/17
7196 1264

2373

Len

Patterson Road Suite

103

03/23/18
68 Lincoln Park IL 7200 1127 Phelps Abby 312.
399.
3256
abby.phelps
@clubpilates.com
03/30/16 3 $125,000 2 2047 N. Clybourn Ave Chicago IL 60614 312.
734.
1069
09/30/16 1
7200 1128 4023 N
Lincoln Ave
Chicago IL 60618 773-
789-
7507
03/30/17
7200 1129 09/30/17


69 Carrollwood FL 7201 1172 Philyaw Nathan 904.
635.
0298
nathan.philyaw
@clubpilates.com
06/03/16 3 $125,000 2 13158 N Dale Mabry Hwy Tampa FL 33618 813.
773.
3880
12/03/16 1
7201 1173

28249

Paseo

Drive

#190

Wesley Chapel FL 33543 813.
607.
6655
06/03/17
7201 1174 12/03/17
70 Marin CA 7203 1240 Poletti Natalie

650.
302.

1285

natalie.poletti
@clubpilates.com
08/30/16 3 $125,000 1

208

Vintage Way,

Ste G-10

Novato CA 94945 415.
761.
1315
03/02/17 2
7203 1241 08/30/17
7203 1242 03/02/18
71 Spring Valley NV 7210 1028 Rechester Victoria/
Emil
Victoria (323)
899-
7083
emil.rechester
@clubpilates.com
11/06/14 4 n/a -
pre- acquisition
3 10525 S. Eastern Ave.
Ste 140
Henderson NV 89052 702.
907.
2758
02/06/17 1
7210 1027 5060 S Fort Apache Ste 115

Las

Vegas

NV 89148 702-
608-
1396
01/00/00
7210 1029

7460 W Lake Mead Blvd.

#E1

Las

Vegas

NV 89108 702-
979-
2422
08/06/18
7210 1030 02/06/20


72 Scarsdale NY 7212 1192 Rhyu Heather

310.

972.
8786

heather.rhyu
@clubpilates.com
07/14/16 3 $125,000 2

365

Central Park

Avenue

Scarsdale NY 10583 914.
449.
4411
01/15/17 1
7212 1193

875

Saw Mill River Rd

Ardsley NY 10502 914-
292-
1292
07/15/17
7212 1194 01/15/18
73 Louisville KY 7217 1396 Ryser Fred

F:
347.
997.
2052

K:
917.
597.
4334

fred.ryser
@clubpilates.com;

katie.ryser
@clubpilates.com

01/31/17 3 $125,000 2

12955

Shelbyville Road,
suite 102

Louisville KY 40243 502-

907-

2364

01/31/18 1
7217 1395

4600

Shelbyville Road,
suite 104

Louisville KY 40243 502-

907-

1577

07/31/17
7217 1397 07/31/18
74 Portland OR 7220 1228 Sander Scott & Misty S:
971.
998.
0279

scott.sander
@clubpilates.com;

misty.sander
@clubpilates.com

08/25/16 3 $125,000 2

2725

SW Cedar Hills Blvd., Suite

100

Beaverton OR 97005 205-

440-

2953

08/25/17 1
7220 1227

7515

SW Barnes Rd. Ste 102

Portland OR 97225 971.
249.
8555
02/25/17


7220 1229 02/25/18
75 Paramus NJ 7223 1090 Sapka Allison /  Chris

C: 201.
916.
3359

A: 973.
951.
2074

allison.sapka
@clubpilates.com;

chris.sapka

@clubpilates.com

07/01/16 3 $125,000 3

525

Cedar

Hill

Ave

Wyckoff NJ 07481 201.
447.
2500
06/22/16 -
7223 1185

West

Grand Aveand Mercedes Drive

Montvale NJ 7645 201-
822-
5260
12/28/16
7223 1186

700

Paramus Park

06/26/17
76 Chicago IL 7225 1215 Schlichting Steve & Robin

S: 815.

985.
1337

steve.schlichting
@clubpilates.com;

robin.schlichting
@clubpilates.com

08/23/16 3 $125,000 2

3065 N. Perryville

Rd.,
Ste #147

Rockford IL 61114 815.
860.
0710
02/23/17 1
7225 1216

2517

N. County Line Rd.

08/23/17
7225 1217 02/23/18
77 Texas TX 7228 1361 Schriever Delma / Rick 281.
840.
0864
delma.schriever
@clubpilates.com; rick.schriever
@clubpilates.com;
12/14/16 3 $125,000 2

2323

Clear Lake City Blvd, Suite 183

Houston TX 77062 832-
584-
4120
12/14/17 1


7228 1360

3875 E.

League City Pkwy

League City TX 77573 832-
920-
3198
06/14/17
7228 1362 06/14/18
78 North Raleigh NC 7229 1230 Schuck/Smith/
Ruggieri
David /  Jon / Joe D:
336.
404.
7871

david.schuck
@clubpilates.com;

jon.smith
@clubpilates.com;

joe.ruggieri
@clubpilates.com

08/25/16 6 $210,000 4

9400

Fallsof Neuse Rd

Raleigh NC 27615 919.
670.
3077
01/25/17 2
7229 1232

1800 E. Franklin Street

#9

Chapel Hill NC 27514 919.
781.
8089
06/25/17
7229 1234

1104

Parkside Main Street

Cary NC 27519 919.
899.
9035
11/25/17
7229 1233 Raleigh NC 27609 (707)
559-
9110
04/25/18
7229 1231

Holly

Springs

NC 09/25/18
7229 1235 02/25/19


79 Pleasanton CA 7232 1096 Shiraki Robert/
Jessica
R: 650.
766.
5900

robert.shiraki
@clubpilates.com;

jessica.shiraki
@clubpilates.com

02/15/16 6 $210,000 2

6766

Bernal Ave.
Suite 530

Pleasonton CA 94566 925.
255.
0880
03/28/17 4
7232 1097

3418

Camino Tassajara

Danville CA 94506 925
854
5500
09/28/17
7232 1098 03/28/18
7232 1099 02/15/18
7232 1100 08/15/18
7232 1101 02/15/19
80 Dallas TX 7242 1273 Springer Bobby 615.
268.
9432
bobby.springer
@clubpilates.com/ sonya.springer
@clubpilates.com
09/21/16 3 $125,000 2

1221

Flower Mound Rd Ste 320

Flower Mound TX 75028 817.
668.
0108
03/28/17 1
7242 1274 480 W. Southlake Boulevard,
suite 131
Southlake TX 76092 817-
668-
0011
09/28/17
7242 1275 03/28/18
81

San

Francisco

CA 7243 1159 Srivastava Amit &  Seema 408.
202.
9619
seema.srivastava
@clubpilates.com;
amit.srivastava
@clubpilates.com
05/20/16 3 $125,000 1 11/20/16 2


7243 1160 05/20/17
7243 1161 11/20/17
82 Brookhaven GA 7245 1094 Stennett Kellen

K: 404.
456.
4110

M: 609.
605.
4315

kellen.stennett
@clubpilates.com;

matt.omiatek
@clubpilates.com

02/10/16 3 $125,000 3

2391

Peachtree Rd, NE Suite B3AB

Atlanta GA 30305 470.
885.
0623
02/10/17 -
7245 1093

5001

Peachtree Blvd Suite 630

Chamblee GA 30341 (678)
996-
1988
08/10/16
7245 1095

5968

Roswell

Road

08/10/17
83 Sherman Oaks CA 7249 1238 Stromblad Katya 818.
257.
3047
katya.stromblad
@clubpilates.com
11/10/16 3 $125,000 2

10732

Jefferson

Blvd.

Culver City CA 90230 310.
424.
5290
02/28/17 1
7249 1309

18741

Ventura Blvd

Tarzana CA 91356 818-
949-
2727
08/28/17
7249 1310 02/28/18
84 Temecula CA 7255 1196 Teranchi Shahin

951.

237.

2379

shahin.tehranchi

@clubpilates.com;

zohal.tehranchi
@clubpilates.com

07/22/16 6 $210,000 3

33175

Temecula Pkwy
Ste C

Temecula CA 92562 951.
396.
7000
12/19/16 3


7255 1197

341 E.

Alessandro Blvd

#2G

Riverside CA 92508 951.
708.
3600
05/18/17
7255 1198

450

Stuart Ave. Suite D-120

Redlands CA 92374 909-

474-
7470

10/15/17
7255 1199 03/14/18
7255 1200 08/11/18
7255 1201 01/08/19
85 Carmel IN 7259 1130 Thorpe Ralph / Julie 317.
696.
4600
ralph.thorpe
@clubpilates.com
03/30/16 3 $125,000 1

2482 E.

146th

Street

Carmel IN 46033 317)
565-
4828
09/30/16 2
7259 1711 09/02/18
7259 1712 09/30/17
86 Boston MA 7262 1444 Trauzzi /  Hard Christopher /  Marjie 617-
880-
9987

chris.trauzzi
@clubpilates.com;

marjie.hard
@clubpilates.com

03/14/17 3 $125,000 2

43

Middlesex Turnpike, Unit 12

Burlington MA 01803 781-
300-
7525
09/16/17 1
7262 1445

600

Market St., Suite 671

Lynnfield MA 1940 781-
342-
0401
03/16/18


7262 1446 09/16/18
87 Chino Hills CA 7263 1109 Truong Amy / Anthony 949.
278.
7719

amy.truong
@clubpilates.com;

tong.truong
@clubpilates.com

02/26/16 3 $125,000 1

13920

City Center

Drive

Suite 4010

Chino

Hills

CA 91709 909.
529.
1041
08/26/16 2
7263 1110 02/26/17
7263 1111 08/26/17
88 Wauwatosa WI 7264 1149 Tsuchiyama Robert & Beth R: 404.
307.
5634

robert.tsuchiyama
@clubpilates.com;

beth.tsuchiyama
@clubpilates.com

05/11/16 3 $125,000 2 6929 W. North Ave. Wauwatosa WI 53213 414-
395-
1122
11/11/16 1
7264 1150 05/11/17
7264 1151

340 N.

Milwaukee St.,

11/11/17
89 New Jersey NJ 7266 1343 Uku Richard 917.
670.
7396
richard.uku
@clubpilates.com
11/23/16 4 $165,000 3

3056

Route 10
West

Denville NJ 7834 (blank) 11/25/17 1
7266 1342

770

Bloomfield Ave.,

West Caldwell NJ 07006 973-
787-
9074
05/25/17
7266 1344

170

Hanover Ave

05/25/18
7266 1414 11/25/18


90 Englewood NJ 7267 1267 Untener Scott 914.
261.
1219
scott.untener
@clubpilates.com
09/20/16 3 $125,000 2

269

Livingston Street Ste P

Northvale NJ 7647 201-
588-
5403
09/23/17 1
7267 1265 19 W. Palisade Ave. Englewood NJ 07631 201.
568.
1700
03/23/17
7267 1266 03/23/18
91 Campbell CA 7269 1078 Venkatatesan Hema & Anathan 208.
863.
0943

hema.venkatesan
@clubpilates.com;

venkat.ananthan
@clubpilates.com

11/20/15 3 $125,000 1

10 E Hamilton

Ste# 300

Campbell CA 95008 408.
412.
0130
05/20/16 2
7269 1079 11/20/16
7269 1080 05/20/17
92 Los Angeles CA 7271 1056 Violas Stephanie (310)-
489-
9803
stephanie.violas
@clubpilates.com
04/17/17 3 $125,000 2

1119

S. Hope Street

Los Angeles CA 90015 213-
204-
6900
01/00/00 1
7271 1468

200 S.

Los Angeles Street, Suite E

Los Angeles CA 90012 213
536
5203
10/20/17
7271 1469 04/20/18
7271 1470 10/20/18
93 OC-LA CA 7281 1009

Watson /

Lombardi

Keely / Ed Keely

(619)
261-
5898

keely.watson
@clubpilates.com;
ed.lombardi
@clubpilates.com
12/31/14 5 n/a -

pre-
acquisition

5

33611

Del
Obispo St.

Dana

Point

CA 92692 01/00/00 -


7281 1057

7318

Santa Monica

Blvd. Suite

#20

West Hollywood CA 90046 323-
774-
2701
01/00/00
7281 1031

25800

Jeronimo Road Ste

404

Mission Viejo CA 92691 949-
446-
8243
01/00/00
7281 1032

30100

Town Center Drive, Suite B-1

Laguna Niguel CA 92677 949-
257-
2292
01/00/00
7281 1058

1720

West Sunset Blvd

Echo

Park

CA 90026 323-
505-
4355
12/09/15
94 Orange County CA 7280 1322 Watson / Lombardi Keely /  Ed Keely
(619)
261-
5898

keely.watson
@clubpilates.com;

ed.lombardi
@clubpilates.com

11/16/16 3 $125,000 2 05/16/17 1
7280 1324 11/16/17
7280 1323

1040

Bayside

Drive

05/16/18


95 Houston TX 7284 1325 Wells Daniela & David 832.
923.
0228

david.wells
@clubpilates.com;

daniela.wells
@clubpilates.com

11/18/16 3 $125,000 2 16430 W. Lake Houston Pkwy., Suite 300- Houston TX 77044 832.
779.
2622
05/16/17 1
7284 1326

730

Kingwood Dr.

Kingwood TX 77399 (832)
592-
7953
11/16/17
7284 1327 05/16/18
96 Long Island NY 7287 1315 Wolk David 914.
260.
7489
david.wolk
@clubpilates.com
11/08/16 3 $125,000 1

6226

Jericho Turnpike

Commack NY 11725 631-
600-
3072
05/09/17 2
7287 1316 11/09/17
7287 1317 05/09/18
97 Alpharetta GA 7288 1218 Worley Mark 678.
488.
0785
mark.worley
@clubpilates.com
08/23/16 3 $125,000 2

3005

Old

Alabama Rd

Alpharetta GA 30022 678.
919.
8733
02/23/17 1
7288 1219

7160

Avalon Blvd

Alpharetta GA 30009 678-
996-
5336
08/23/17
7288 1220 02/23/18
98 East Montgomery AL 7030 1473 Brazell Craig/Lanie (334)
538-
8102
Craig.Brazell
@clubpilates.com
05/19/17 3 $125,000 3

2311

Bent Creek RD STE

400

Auburn AL 36830 334-
414-
4548
11/19/18 -


7030 1472

2940

#D Zelda Rd

Montgomerty AL 36106 334-
328-
2465
05/19/18
7030 1471

8143

Vaughn Rd

Montgomery AL 36116 334-
603-
8055
11/19/17
99 Tampa FL 7140 1474 Kitchen/Erickson Kim/Joe Kim.Kitchen
@clubpilates.com
05/19/17 3 $125,000 1

12454

State

Rd 54

Odessa FL 33556 (813)
563-
5353
11/19/17 2
7140 1475 05/19/18
7140 1476 11/19/18
100 Napa CA 7035 1477 Campton Lois (415)
722-
8690

Lois.Campton

@clubpilates.com

05/22/17 3 $125,000 1

289 N.

McDowell Blvd

Petaluma CA 94954 11/22/17 2
7035 1478

7735 N Blackstone

#101

Fresno CA 93720 05/22/18
7035 1479 11/22/18
101 Chicago IL 7147 1480 Kulkarni Pradnya 847.
630.
2081
Pradnya.Kulkarni
@clubpilates.com
05/22/17 3 $125,000 2

388

half day road

buffalo grove IL 60089 224
377
0305
11/22/17 1
7147 1481 1614 S. Milwaukee Ave., 05/22/18
7147 1482 11/22/18
102 Plano TX 7184 1483 Mullins John 713.
598.
2785
John.Mullins
@clubpilates.com
05/22/17 3 $125,000 1

6850 N

Shiloh

Rd Suite H1

garland TX 75044 11/22/17 2


00

Shiloh

Rd Suite H1

4
7184 1484 05/22/18
7184 1485 11/22/18
103 New Mexico NM 7216 1486 Rule Brian / Jessica (505)
270-
3494
Brian.Rule
@clubpilates.com
05/22/17 6 $210,000 1

11000

Montgomery Blvd NE,

Ste 3

Albuquerque NM 87111 505-
395-
9511
11/22/17 5
7216 1487 05/22/18
7216 1488 11/22/18
7216 1539 05/22/19
7216 1540 11/22/19
7216 1541 05/22/20
104 Florida FL 7000 1491 Abbe/Willits Steve/Shannon Steve.Abbe
@clubpilates.com
05/23/17 2 $99,000 2

13211

McGregor Blvd,
Suite 105-A

Fort Myers FL 33919 239-
603-
7300
05/23/18 -
7000 1490

13451

Brookshire Lake Blvd

Ft Myers FL 33966 239-

603-
7300

11/23/17
105

Rancho

Mirage

CA 7066 1492 Dordell/
Fenske
Chris/Jason

Chris.Dordell

@clubpilates.com

05/23/17

2

$99,000 2

42-

440

Bob

Hope

Drive, Suite

42440

-1B

Rancho

Mirage

CA 92270 760-
209-

9722

11/23/17 -


7066 1493

425 S. Sunrise,

Bldg

H2A,

Palm Springs CA 92262 05/23/18
106

Park

Ridge

IL 7089 1495 Gentner Andy (630)
329-

9580

Andy.Gentner

@clubpilates.com

05/23/17 3 $125,000 2

142

South

1st St.

St.

Charles

IL 60174 630.

283.

3700

05/23/18 1
7089 1494

70 N.

Northwest 

Highway

Park

Ridge

IL 60068 847-

744-

6464

11/23/17
7089 1496 11/23/18
107 Sacramento CA 7240 1498 Smith Katie (404)
210-
2270

Katie.Smith

@clubpilates.com

05/23/17 3 $125,000 1

2860

Del Paso Rd., Ste.

300

Sacramento CA 95834 (916)
900-

6473

11/23/17 2
7240 1499 05/23/18
7240 1500 11/23/18
108 Chicago IL 7161 1504 London Larry/Crystal  (708)
269-
6964
Larry.London
@clubpilates.com
05/25/17 3 $125,000 1

1107

N. Elmhurst Rd.

11/25/17 2
7161 1505 05/25/18
7161 1506 11/25/18


109 Charleston FL 7291 1507 York/Schlobohm Shaun/Zach Shaun.York
@clubpilates.com
05/25/17 3 $125,000 1

3438

Lithia Pinecrest Road,

Valrico FL 33956 813-
540-
2425
11/25/17 2
7291 1508 05/25/18
7291 1509 11/25/18
110

Central

NJ

NJ 7060 1510 Davis Brennan (973)
214-
7810
Brennan.Davis
@clubpilates.com
05/26/17 3 $125,000 1

12

Route 9

North

Marlboro NJ 7751 732-
984-
9696
11/26/17 2
7060 1511 05/26/18
7060 1512 11/26/18
111

Red

Bank

NJ 7149 1513 Laden Gary (347)
678-
4141
Gary.Laden
@clubpilates.com
05/26/17 3 $125,000 1

1377

Route 35

Middletown NJ 7748 732-
639-
1046
11/26/17 2
7149 1514 05/26/18
7149 1515 11/26/18
112 New Jersey NJ 7241 1516 Spidare Todd & Karen (513)
254-
8407
Todd.Spidare
@clubpilates.com
06/15/17 3 $125,000 2

100

Reaville

Ave., Unit

#5

Flemington NJ 8822 908-
483-
7888
12/15/17 1
7241 1517

334

Chimney 

Rock Rd.,

06/15/18
7241 1518 12/15/18
7241 1389 12/15/18


113 San Antonio TX 7246 1519 Stephens Michelle (512)
563-
8040
Michelle.Stephens
@clubpilates.com
06/15/17 3 $125,000 1

1150

N. Loop

1604

W., Suite

140

San Antonio TX 78248  0 12/15/17 2
7246 1520 06/15/18
7246 1521 12/15/18
114 Charleston SC 7086 1525 Garrett Jim / Patty (603)
491-
7240
Jim.Garrett
@clubpilates.com
06/19/17 6 $210,000 3

9512

Dorchester Rd, Suite

150

Sumerville SC 29485  843-
800-
8990
06/19/18 3
7086 1524

1739

Maybank Hwy, Suite L

Charleston SC 29412  843-
800-
8986
12/19/17
7086 1526

Mt

Pleasant

SC 29464  0 12/19/18
7086 1527 06/19/19
7086 1528 12/19/19
7086 1529 06/19/20
115 Winchester MA 7062 1533 Day Tim (857)
488-
0989
Tim.Day
@clubpilates.com
06/20/17 2 $99,000 - 12/20/17 2
7062 1534 06/20/18


116 Phoenix AZ 7110 1535 Hansen Peter (218)
349-

9728

Peter.Hansen

@clubpilates.com

06/27/17 3 $125,000 3

3130

N. Recker Road

Suite

103

Mesa AZ 85215 480-
562-
3501
12/27/17 -
7110 1536 06/27/18
7110 1388

2122

East Baseline Rd, Ste 3

Mesa AZ 85204 480-
795-
5916
12/26/18
117 Seattle WA 7231 1543 Shah Vishrut Vishrut.Shah
@clubpilates.com
07/21/17 3 $125,000 2

2601

76th Ave SE

Mercer Island WA 98040 (206)
227-
4343
01/21/18 1
7231 1544

213

Park

Lane

07/21/18
7231 1545 01/21/19
118 Greenville SC 7194 1546 Patterson / Cole John / Daniel

John.Patterson

@clubpilates.com

07/26/17 3 $125,000 1

2107

Augusta St

Greenville SC 29605 864-
469-
2330
01/26/18 2
7194 1547 07/26/18
7194 1548 01/26/19
119 Virginia Beach VA 7069 1530 Dunn Ray (757)
449-
0434
Ray.Dunn
@clubpilates.com
07/28/17 3 $125,000 1

237

Hanbury 

Rd. East, Suite

12

01/28/18 2
7069 1532 07/28/18
7069 1551 01/28/19


120 North Dallas TX 7083 1552 Furniss Mike (734)
634-
5979
Mike.Furniss
@clubpilates.com
07/28/17 3 $125,000 1

3301

N Goliad St. Suite 

103

Rockwall TX 75087 12/28/17 2
7083 1553 07/28/18
7083 1554 12/28/18
121 Bethesda MD 7092 1555 Goldberg Sue / Phil Sue.Goldberg
@clubpilates.com
07/28/17 3 $125,000 1

4959

Elm

Street,

Bethesada MD 20814 301-
541-

8807

01/28/18 2
7092 1556 12/28/17
7092 1557 07/28/18
122 DFW TX 7125 1558 Howard Kendall (806)
438.
0840
Kendall.Howard
@clubpilates.com
07/28/17 6 $210,000 2

821 E

Lamar

Blvd

12/28/17 4
7125 1559 05/28/18
7125 1560

3220

Teasley 

10/28/18
7125 1561 03/28/19
7125 1562 08/28/19
7125 1563 01/28/20
123 Ridgefield CT 7077 1566 Fay Ken & Jennifer (203)
253-
3980
Ken.Fay
@clubpilates.com
08/09/17 3 $125,000 1

85

Mill

Plain

Rd V1

Fairfield CT 6824 (203)
659-
0090
02/09/18 2
7077 1567 08/09/18


7077 1568 02/09/19
124

DFW

& Santa Barbara

TX/ 

CA

7261 1570 Tortolani Cynthia 214.

558.
1075

Cynthia.Tortolani

@clubpilates.com

08/09/17 3 $125,000 1

3951

State

Street

Santa Barbara CA 93105 805-
618-
1012
02/09/18 2
7261 1571 08/09/18
7261 1569 02/09/19
125 Manhattan NY 7290 1572 Yang / Barletta John / Renee John.Yang
@clubpilates.com
08/09/17 2 $99,000 - 02/09/18 2
7290 1573 08/09/18
126 Dayton OH 7234 1577 Shumway Jeff & Lisa (937)
545-
5114

Jeff.Shumway

@clubpilates.com

08/15/17 3 $125,000 1

2451

Lakeview Dr., Ste.

104

Beavercreek OH 45431 (937)

365-

2929

02/15/18 2
7234 1578 08/15/18
7234 1579 02/15/19
127

Central

NJ

NJ 7105 1580 Guirguess David (201)
341-
9001

David.Guirguess

@clubpilates.com

08/17/17 3 $125,000 - 02/17/18 3
7105 1581 08/17/18
7105 1582 02/17/19


128 Pittsburgh PA 7129 1584 Johansen Trey & Christina (412)
992-
7641
Trey.Johansen
@clubpilates.com
08/17/17 3 $125,000 2

8013

McKnight Rd,

200B

Pittsburg PA 15237 412.
278.
7435
02/17/18 1
7129 1583 08/17/18
7129 1585 02/17/19
129 Billings MT 7143 1586 Koeplin David & Kristin (406)
579-
2237
David.Koeplin
@clubpilates.com
08/24/17 5 $175,000 1

7901

NE

6th Ave., Suite

109

06/24/18 4
7143 1587 11/24/18
7143 1588 04/24/19
7143 1589 09/24/19
7143 1590 01/24/18
130 Rockville MD 7252 1592 Swingler Kevin (301)
379-
3998
Kevin.Swingler
@clubpilates.com
08/28/17 3 $125,000 1

18119

Town Center

Drive

02/28/18 2
7251 1591 08/28/18
7251 1593 02/28/19
131 Atlanta GA 7209 1601 Rebala Sekhar Sekhar.Rebala
@clubpilates.com
08/31/17 3 $125,000 - 02/28/18 3
7209 1602 08/31/18
7209 1603 02/28/19


132 Colorado CO 7044 1607 Cavanaugh Josh & Elizabeth 303-
915-
2372
Josh.Cavanaugh
@clubpilates. com
4 $210,000 1

5935

Dublin

Blvd.

Colorado Springs CO 80923 02/15/18 3
7044 1608 07/15/18
7044 1609 12/15/18
7044 1610 05/15/19
133

Oklahoma

City

OK 7055 1613 Creecy David & Janelle (405)
370-
7538

David.Creecy

@clubpilates.com

09/15/17 3 $125,000 2

7550

N. May Ave.,

#100

Oklahoma City OK 73116 405-
607-
3355
03/15/18 1
7055 1614

15124

Lleyton Court, Ste.

105

Edmond OK 73013 09/15/18
7055 1615 03/15/19
134 Carmel/ Central CA CA 7080 1690 Foster Michele & Dale (310)
373-
2292
Michele.Foster
@clubpilates.com
2 $125,000 - 02/22/19 2
7080 1691 08/24/18
135

West

Boston

MA 7031 1663 Bruce Jeff / Michaela (508)
981-
8181
michaela.bruce
@clubpilates.com
12/22/2017 6 $210,000 1 0 05/22/18 5
7031 1664 10/22/18
7031 1665 03/22/19


7031 1666 08/22/19
7031 1667 01/22/20
7031 1668 06/22/20
136

New

York

NY 7042 1680 Cavallo Jason/Darin   (917)
698-
2739
jason.cavallo
@clubpilates.com
01/25/18 3 $125,000 - 06/25/18 3
7042 1681 12/25/18
7042 1682 06/25/19
137 Atlanta GA 7065 1631 Devos Jack / Teresa (404)
824-
7229
teresa.devos
@clubpilates.com
10/23/17 3 $125,000 1 5552- B Chamblee Dunwoody RD Dunwoody GA 30338  770-
573-
0241
04/24/18 2
7065 1632 770-
573-
0241
10/24/18
7065 1633 10/24/18
138 Ft Collins CO 7070 1623 Durand Jordan (970)
381-
3736
jordan.durand
@clubpilates.com
10/2/2017 2 $99,000 2

244

North College Ave 

Suite

125

Fort Collins CO 80524  970-
300-
9707
04/03/18 -
7070 1624

2720

Council Tree Avenue,

Suite

102

Fort Collins CO 80525  970-
999-
0150
10/03/18


139 Brooklyn NY 7091 1352 Gevinski Sarah (646)
425-
8244
sarah.gevinski
@clubpilates.com
11/30/16 4 $165,000 1

30 E

Main

St

05/30/18 3
7091 1650 11/30/18
7091 1651 05/30/19
7091 1652 11/30/19
7091 1653 11/30/19
140 Columbus OH 7173 1694 McTigue Caitlin (614)
832-
5985
caitlin.mctigue
@clubpilates.com
02/06/18 3 $125,000 - 08/08/18 3
7173 1695 02/07/19
7173 1696 08/09/19
141 Cave Creek AZ 7202 1497 Pickens Kim (602)
790-
0769
kim.pickens
@clubpilates.com
05/23/17 3 $125,000 1

31313

N

Scottsdale Rd.

Scottsdale AZ 85266 480-
900-
7278
11/23/17 2
7202 1671 06/28/18
7202 1672 12/28/18
142 Long Island NJ 7213 1643 Rosenbluth Allen & Pamela (516)
432-
7704
pamela.rosenbluth
@clubpilates.com
11/13/17 3 $125,000 1

3197

Long

Beach

Rd.

05/13/18 2
7213 1644 11/13/18
7213 1645 05/13/19


143 Long Beach CA 7214 1351 Rubin Michael & Alyssa (562)
754-
4204
Michael.Rubin
@clubpilates.com
11/29/16  2 $99,000 1

5939

E. Spring Street,

04/20/18 1
7214 1630 10/20/18
144 Avon OH 7222 1656 Sapitro Jim & Dianne (440)
665-
7941
jim.sapitro
@clubpilates.com
11/15/17  6 $210,000 1 05/15/18 5
7222 1657

4223

East Royalton Rd 

10/15/18
7222 1658 03/15/19
7222 1659 08/15/20
7222 1673 01/15/21
7222 1678 06/15/21
145 Ann Arbor MI 7272 1178 Vogel Nick (989)
992-
8422
nick.vogel
@clubpilates.com
06/28/16  2 $99,000 1

3372

Washtenaw Ave

Ann

Arbor 

 MI   48104  734.
887.
1938
02/24/19 1
7272 1697 08/26/19
7272 1698 08/26/19
146 Miami- Ft. Lauderdale FL 7277 1683 Wance/Caneppa/
Cazzani/ Morais
Felipe/Felipe/
Fabian/guilherme 
(954)
544-
0609
felipe.wance
@clubpilates.com
01/30/18  3 $125,000 - 12/28/18 3
7277 1684 06/28/19
7277 1685 12/28/19


147 7289 1091 Wynkoop Dan (503)
720-
9556
dan.wynkoop
@clubpilates.com
12/22/15 3 $125,000 2

12305

SW Horizon Blvd Suite J207

Beaverton OR 97007 (503)
605-
1453
06/22/16 1
7289 1202

21370

SW Langer Pkwy.

Ste.14 4

Sherwood  OR 97140 503-
352-
4543
01/28/17
7289 1744 11/30/18
*148 DC DC 7017 1713 Beale Will 202-
868-
1545
will.beale
@clubpilates.com
03/29/18 3 $125,000 - 09/29/18 3
7017 1714 02/28/19
7017 1715 08/29/19
149 Fresno CA 7058 1594 Danzig 248-
561-
1641
dan.danzig
@clubpilates.com
04/05/18 3 $125,000 - 09/05/18 3
7058 1595 05/05/19
7058 1596 11/05/19
150

Long

Island

7061 1724 Davis/
Stalek
Martin/
Rebecca 
martin.davis
@clubpilates.com
05/11/18 3 $125,000 - 11/11/18 3
7061 1725 05/11/19
7061 1726 11/11/19


151 Jacksonville FL 7071 1705 Durbin Josh & Elizabeth (843)
408-

1675

josh.durbin
@clubpilates.com
03/02/18 3 $125,000 - 09/03/18 3
7071 1706 02/03/19
7071 1707 08/03/19
152

Long

Island

NY 7095 1597 Goldstein David 516-
527-
4040
david.goldstein
@clubpilates.com
04/05/18 3 $125,000 - 10/02/18 3
7095 1598 04/05/19
7095 1599 10/05/19
153 Houston TX 7265 1721 Uffelman Brian 281-
630-
3484
brian.uffelman
@clubpilates.com
05/03/18 3 $125,000 - 11/02/18 3
7265 1722 11/03/19
7265 1723 11/03/20
154 Lexington 7170 1716 McCarter (859)-
552-
8055
rob.mccarter
@clubpilates.com
05/31/18 2 $99,000 - 09/30/18 2
7170 1738 03/30/19
155 Indianapolis IN 7259 1711 Thorpe Ralph/Julie (317)
696-
4600
ralph.thorpe
@clubpilates.com
03/02/18 2 $99,000 - 09/02/18 2
7259 1712 09/29/18
156 Arkansas AK 7254 1727 Teater/Neblett Bryce bryce.teater
@clubpilates.com
05/21/18 6 $210,000 - 10/21/18 6
7254 1728 03/21/19
72 17 08/2
54 29 1/19


7254 1730 01/21/20
7254 1731 06/21/20
7254 1732 09/21/20
157 Denver CO 7268 1741 Van Horn Erik 605-
645-
1465
erik.vanhorn
@clubpilates.com
05/31/18 3 $125,000 - 11/30/18 3
7268 1742 05/31/19
7268 1743 11/30/19


(d)

 

1.

Pursuant to the terms of that certain Asset Purchase Agreement (the “AKT Purchase Agreement”) between AKT Franchise, LLC (the “Licensor”), AKT inMotion Inc., (the “Licensee”) and certain other parties thereto, Licensor licenses its intellectual property to the Licensee (which was purchased by the Licensor from the Licensee pursuant to the Purchase Agreement) for Licensee to use in its operation of “AKT” studios. Such arrangement will remain in place until the Licensor and the Licensee enter separate written Franchise Agreements (collectively this disclosure is referred to herein as the “License Arrangement”).

 

2.

Pursuant to the terms of that certain Asset Purchase Agreement (the “Row House Purchase Agreement”) dated December 8, 2017 between Row House Franchise, LLC (the “Row House Licensor”), Row House Holdings, Inc., (the “Row House Licensee”) and certain other parties thereto, the Row House Licensor licenses its intellectual property to the Row House Licensee (which was purchased by the Row House Licensor from Row House Licensee pursuant to the Row House Purchase Agreement) for Row House Licensee to use in its operation of “Row House” studios. Such arrangement will remain in place until the Row House Licensor and Row House Licensee enter separate written Franchise Agreements (collectively this disclosure is referred to herein as the “Row House License Arrangement”).

 

3.

Pursuant to the terms of that certain Asset Purchase Agreement (the “Stretch Lab Purchase Agreement”) dated November 15, 2017 between Stretch Lab Franchise, LLC (the “Stretch Lab Licensor”), Stretch Lab, LLC (the “Stretch Lab Licensee”) and certain other parties thereto, the Stretch Lab Licensor licenses its intellectual property to the Stretch Lab Licensee (which was purchased by the Stretch Lab Licensor from Stretch Lab Licensee pursuant to the Stretch Lab Purchase Agreement) for Stretch Lab Licensee to use in its operation of “Stretch Lab” studios. Such arrangement will remain in place until the Stretch Lab Licensor and Stretch Lab Licensee enter separate written Franchise Agreements (collectively this disclosure is referred to herein as the “Stretch Lab License Arrangement”).

 

4.

Pursuant to the terms of that certain Asset Purchase Agreement (the “Yoga Six Purchase Agreement”) dated July 26, 2018 between Yoga Six Franchise, LLC (the “Yoga Six Licensor”), and Yoga 6 Company, LLC (the “Yoga Six Licensee”) Yoga Six Licensor licenses its intellectual property to the Yoga Six Licensee (which was purchased by the Yoga Six Licensor from the Yoga Six Licensee pursuant to the Purchase Agreement) for Yoga Six Licensee to use in its operation of “Yoga Six” studios. Such arrangement will remain in place until the Yoga Six Licensor and the Yoga Six Licensee enter separate written Franchise Agreements (collectively this disclosure is referred to herein as the “Yoga Six License Arrangement”).

Pure Barre

 

5.

PB Franchising, LLC Franchise Disclosure Document, Issuance Date: October 2012

6.

PB Franchising, LLC Franchise Disclosure Document, Issuance Date: March 27, 2013

7.

PB Franchising, LLC Franchise Disclosure Document, Issuance Date: March 26, 2014

8.

PB Franchising, LLC Franchise Disclosure Document, Issuance Date: March 18, 2015


9.

PB Franchising, LLC Franchise Disclosure Document, Issuance Date: March 18, 2015, as amended May 7, 2015

10.

Disclosure Document of PB Franchising, LLC [Canada], Issuance Date: May 9, 2014

11.

Statement of Material Change to the Disclosure Document of PB Franchising, LLC [Canada] dated May 9, 2014, Issuance Date: September 4, 2014.

(e)

As of the Closing Date, no Franchise Agreements have been signed for FCF.

As of the Closing Date, LBF Franchise Agreements and S415 Franchise Agreements have been granted to the following franchisees:

LBF

Robert Palazzi and Diane Palazzi

Business Entity: Diane Palazzi One, LLC

Agreement: LBF Franchise Agreement_LBF_Diane Palazzi One, LLC_Eff. 06/26/17

Territory: Northern New Jersey

Address: 59 May Dr., Chatham, NJ 07928

Phone: (973) 408-9019

Carl Kirkham Peacock and Pamela J. Tanase

Business Entity: N/A

Agreement: LBF Franchise Agreement_LBF_C.Peacock&P.Tanase_Eff. 4/20/17

Territory: Los Angeles, CA

Address: 220 Salido del Sol, Santa Barbara, CA 93109

Phone: (805) 455-5983

Daniel S. van Zeyl

Business Entity: N/A

Agreement: LBF Franchise Agreement_LBF_D.vanZeyl_Eff. 12/28/16

Territory: Miami, FL

Address: 950 Brickell Bay Dr., Unit 510 Miami, FL 33131

Phone: (305) 753-7434

Lezlie A. Snoozy-Kaitfors and Michael B. Kaitfors

Business Entity: N/A

Agreement: LBF Franchise Agreement_LBF_L.Snoozy-Kaitfors&M.Kaitfors_Eff. 1/20/17

Territory: Phoenix, AZ

Address: 2407 N. 3rd St., Spearfish, SD 57783

Phone: (605) 641-0433

Venkat Sunil Mentreddi

Business Entity: N/A

Agreement: LBF Franchise Agreement_LBF_V.Mentreddi_Eff. 7/28/17


Territory: Dallas-Fort Worth, TX

Address: 4140 Newton Ave., Unit 5 Dallas, TX 75219

Phone: (251) 458-9698

S415

Jane K. Fletcher

Business Entity: N/A

Agreement: S415 Franchise Agreement_S415_J.Fletcher_Eff. 09/08/17

Territory: Denver, CO

Address: 1169 South York Street, Denver, CO 80210

Phone: (303) 284-6739

Megan E. Lawler and Timothy G. Lawler

Business Entity: N/A

Agreement: S415 Franchise Agreement_S415_M.Lawler & T.Lawler_Eff. 09/11/17

Territory: Denver, CO

Address: 3341 Vrain Street, Denver, CO 80212

Phone: (708) 334-7108

Margaux P. Chandler and William R. Chandler

Business Entity: N/A

Agreement: S415 Franchise Agreement_S415_M.Chandler & W.Chandler_Eff. 09/12/2017

Territory: Milwaukee, WI

Address: 1622 N. Richmond Street, Chicago, IL 60647

Phone: None provided

Craig A. Brummell and Marta R. Brummell

Business Entity: N/A

Agreement: S415 Franchise Agreement_S415_C.Brummell & M.Brummell_Eff. 09/12/2017

Territory: Denver, CO

Address: 2709 Twixwood Lane, South Bend, IN 46617

Phone: (574) 286-9026

Corey Goldberg, Sara Goldberg, and Domenic V. Poeta

Business Entity: N/A

Agreement: S415 Franchise Agreement_S415_C.Goldberg, S.Goldberg, & D.Poeta_Eff. 09-12-2017

Territory: Milwaukee, WI

Address: 1350 Bayberry Lane, Deerfield, IL 60015

Phone: (847) 912-1289

David Jones and Kathleen Jones

Business Entity: N/A

Agreement: S415 Franchise Agreement_S415_D.Jones & K.Jones_Eff. 9/25/17

Territory: Louisville, KY


Address: 516 Saddle Ridge Dr. Knoxville, TN 37934

Phone: (865) 567-1163

Bradley Howard & Joy Howard

Business Entity: N/A

  

Agreements (2):

  

S415 Franchise Agreement_S415_B.Howard & J.Howard_Eff.

09/25/2017

  
    

S415 Franchise Agreement_S415_B.Howard & J.Howard_Eff.

09/25/2017* *(Opening Deadline for this Franchise Agreement modified to 03/19/2019)

Territory: Greenville, SC
Address: 223 Lakefront Rd., Townville, SC 29689
Phone: (864) 420-3493

Katie Blickhan, Scott Blickhan, Chad Hemminger, Sara Wortman

Business Entity: N/A

Agreement: S415 Franchise Agreement_S415_K.Blickhan S.Blickhan C.Hemminger S.Wortman_Eff.09/28/2017)

Territory: Columbus, OH

Address: 7749 Mellacent Dr., Columbus, OH 43235

Phone: (614) 769-1728

Jim Murrin

Business Entity: N/A

Agreement: S415 Franchise Agreement_S415_J.Murrin_Eff.09/29/2017

Territory: Orlando, FL

Address: 541 N Brainard Ave., La Grange, IL 60526

Phone: (773) 551-6597

Hall Pass Fit, LLC – Jeff Hall

Business Entity: Hall Pass Fit, LLC

Agreement: S415 Franchise Agreement_S415_Hall Pass Fit, LLC_Eff. 10/28/2017

Territory: Memphis, TN

Address: 717 Riverside Drive, Unit 1509, Memphis, TN 38103

Phone: (901) 335-1292

Shaunda Chin-Bonds

Business Entity: N/A/

Agreement: S415 Franchise Agreement_S415_S.Chin-Bons_Eff.10/31/2017

Territory: Detroit, MI

Address: 22628 Lilly Pad Lane, Frankfort, IL 60423

Phone: (312) 285-7761

Giovanni De Choudens & Lilliam Cordero

Business Entity: N/A

Agreement: S415 Franchise Agreement_S415_G.DeChoudens & L.Cordero_Eff. 12/27/2017


Territory: San Francisco, CA

Address: 762 Liquidamber Pl. Danville, CA 94506

Phone: (479) 366-2261

Adria Swindle, Jeff Swindle, Christopher Cocke & Marty Olsen

Business Entity: N/A

Agreement: S415 Franchise Agreement_S415_A.Swinlde J.Swindle C.Cocke.

M.Olsen_Eff.02/05/2018

Territory: Salt Lake City, UT

Address: 1389 Harvard Ave., Salt Lake City, UT 84105

Phone: (801) 897-3777

Jennifer Coopman, Katie Horner, Scott Thompson

Business Entity: N/A

Agreement: S415 Franchise Agreement_S415_J. Coopman K.Horner S.Thompson_Eff. 02/05/2018

Territory: Madison, WI

Address: 531 Jo Ann Ct., Sun Prairie, WI 53590

Phone: (262) 749-0426

Salil Bhatnagar

Business Entity: N/A

Agreement: S415 Franchise Agreement_S415_S.Bhatnagar_Eff.02/22/2018

Territory: Northern VA

Address: 22354 N. Greenmeadow Drive, Kildeer, IL 60047

Phone: (312) 420-0105

CycleBar:

 

  1.

All Franchise Agreements have 7% royalty rate and minimum royalty of $250 per week (provided, that the royalty rate with respect to Spynergy, LLC will increase from 0% to 4% if sold within 90 days, or 7% if not sold in 90 days from the Closing.

  2.

CB Kenwood increase in royalty rate from 0% to 7%, with 90-day grace period from the Closing.

  3.

All franchise agreements have up to 2% marketing fund

  4.

All franchise agreements have 10-year renewal

 

Agreement 
Date
  Franchisee
Name
  Market
Purchased
  #Units   Franchisee
Entity
Name
  Address   City   State   ZIP   Telephone
                   

26-Feb-15

  Douglas A. Dolenc & Mindy R.  

Indianapolis,

IN

 

1

  M.D. Dolenc Enterprise Inc.   2661 Old Vines Dr  

Westfield

 

IN

 

46074

 

248-709-0204


    Dolenc                                
5-Mar-15   Shirelle & Joel Vilmenay   New Orleans, LA    3    Crescent City Cycle, LLC   671 Arabell a Street   New Orleans   LA   70115   (703)
477-9501
5-Mar-15   Patrick & Anna Walsh   Denver, CO   1   RYR Colorado, LLC   2271 South Joyce Street   Lakewood   CO   80228   303-717- 7708
5-Mar-15   Dan Murphy   Dallas-Fort Worth, TX   4   JCN Corporation   3305 Cotton wood Drive   Flower Mound   TX   75028   (617)
413-9080
13-Mar-15   David Schay and Haley Arthur   Memphis, TN   1   N/A   2394 Cedar Dale Drive   Germantown   TN   38139   901-491- 3838
27-Mar-15   Dave Bridges   Detroit, MI   1   N/A   37722 Southampton   Livonia   MI   48154   248-229- 1731
30-Mar-15   Susan Grant   Chicago, IL   1   Fit Lilly LLC   725 S. Kensington Ave   LaGrange   IL   60525   (317)
354-6990
25-Mar-15   Marc & Lisa Palmer   Charlotte, NC   3  

Charlotte

Cycle, Inc.

 

1401 Funny

Cide Drive

  Waxhaw   NC   28173   (314)
403-6068
31-Mar-15   Kevin & Sharon Thompson   Nashville, TN   1   Sharon Elizabeth, LLC  

265

Stanley Park Lane

  Franklin   TN   37069   (615)
268-3540
2-Apr-15   Claire & Sheila Hayes   Newport, RI   1   N/A  

11

Daniel Street

  Newport   RI   02840   (401)
662-2232
3-Apr-15   Peter DeLuca   Boston, MA   1   N/A   82 Prospect Hill Drive   Weymouth   MA   02191   617-842- 6178
6-Apr-15   Craig & Marilyn   Minneapolis, MN   1   Holm Family   2166 Highlan   Hastings   MN   55033   651-492-


    Holm           Holdings, LLC   d Dr.               8662
6-Apr-15   Joe Rothchi ld   Houston, TX    3    MacPherson Rothchild I, LLC   3010 Ginter Lane   Katy   TX   77494   713-857-
0567
9-Apr-15   Eric & Debbie Huffine   Indianapolis, IN   1   Deep Enterprises, LLC   7203 Lakeside Woods Drive   Indiana polis   IN   46278   317-697-
2692
9-Apr-15   Shelby Faubion & James Moller   Dallas-Fort Worth, TX   1   Finition, Inc   2341 Maidens Castle Drive   Lewisville   TX   75056   214-417- 6356
10-Apr-15   Yvonne Denslow & Ken & Heather Gotaas   Denver, CO   1   Affinity Cycle, Inc   4726 Bluegate Drive   Highlands Ranch   CO   80130   (303)
709-3376
16-Apr-15   Bryan Lively and Annie & Nick Monigold   Detroit, MI   3   N/A   1527 Traceky Drive   Rochester Hills MI   MI   48306   248-705- 3956
7-Apr-15   Gary Dellovade   Pittsburgh, PA   1   N/A  

916

Valleyview Rd

  Pittsburgh   PA   15243   412-260- 3237
20-Apr-15   Eric Skoloff & Keith Boettiger   Greenville, SC   1   Cycle Syndicate, LLC   14 Ridgeland Dr.   Greenville   SC   29601   864-979- 1200
27-Apr-15   Joseph Purton   Cleveland, OH   1  

Lucky

Star Holdings, Inc.

  2643 Kerwick Rd.  

University

Heights

  OH   44118   (216)
308-4411
23-Apr-15   A. David Davis (Jake Davis,   Los Angeles/Phoenix   8   MdG Partners LLC   8125 Brill Road   Cincinnati OH   OH   45243   (513)
702-1717


    Jon Krumdi eck)                                
29-Apr-15   Bill McCom b & Peter Wolf   Tampa, Orlando   12    CICLO Management, LLC   1124 North Lakeshore Dr   Sarasota   FL   34231  

(941)50

4-4462

6-May-15   Joe & Mary Laurie Cece   Raleigh, NC   3   N/A   3417 Birk Bluff Court   Cary   NC   27518   919-345-7388
7-May-15   Rod Reyes   Phoenix, AZ   2   CB Chandler, LLC   3551 Cactus Gulch Way   Las Cruces   NM   88011   (575)636-4522
12-May-15  

Julie

Pfaff & Michelle Denny (Morris)

  San Jose, CA   1   JM Power Group Inc.   1551 Brenner Way   San Jose   CA   95118   (408)266-7479
22-Dec-15   Marc Krasner   Denver, CO   1   Spin City Colorado, LLC   7998 E 25th Ave.   Denver   CO   80238   (720)635-6537
26-May-15   Heather Sommers   Carmel, CA   1   Heather Sommers, LLC   18871 Hidden Lakes Lane   Acampo   CA   95220   209-598-2800
15-May-15   Mark Schneider   Minneapolis, MN   1   N/A   3430 Oakton Drive   Minnetonka   MN   55305   612 716-2364
26-May-15   Gregorio & Maria Serrata   Las Vegas, NV   1   Serrata, LLC   12116 Vista Linda Ave   Las Vegas   NV   89138   801-913-9610
28-May-15   David Eichelberger   Columbus, OH   1   DCL Fitness, Inc.  

5952

Lower Bremo Lane

  New Albany   OH   43054   614.571.9658
2-Jun-15   Jeff DeLorme   Atlanta, GA   1   N/A   2897 Stone Brook Park NE   Atlanta   GA   30319   617-281-9877


5-Jun-15   Gary & Laura Stinnett & Rick and Linda Algea  

San

Antonio, TX

  1  

Rick’s &

Stick’s Cycle Corp.

 

77

Champions Run

 

San

Antonio

  TX   78258   210-669-2139
9-Jun-15   Cindi King, Julie Kertzman, Stacey Agoustari   San Francisco, CA   1   JSC Ventures, Inc   100 Sycamore Avenue   Mill Valley   CA   94941   415-613-3013
26-May-15   Amy Snow  

Columbus,

OH

  1   Amy Snow Enterprise, Inc.   5760 Whitecraigs Ct.   Dublin   OH   43017   614 354 3293
10-Jun-15   Ken Stuttaford   Orange County, CA   1   Seaside Clean Living, Inc.   310 Lake Street Unit 112   Huntington Beach   CA   92648   (949)981-4651
15-Jun-15   K. Greg Jackson and Gladys Jackson   Atlanta, GA   1   Simjah Inc   5495 Copper Creek Pass   Cumming   GA   30040   (571)287-0086
16-Jun-15   Suzanne and Bryn Wells, Jean and Mark Wells   Miami, FL   1   Ohana Fitness, Inc.   19366 sw 14 st   Pembroke Pines   FL   33029   (954)551-9032
17-Jun-15   Michelle & Brad Elder   Lubbock, TX   1   MicheHill, LLC  

9001

Juneau

Avenue

  Lubbock   TX   79424   (707)631-6110
18-Jun-15   Christie Meyers   Raleigh, NC   2   CB Raleigh, LLC   112 Beacon Falls Ct   Cary   NC   27519   (919)816-7474
9-May-16                                    


18-Jun-15    Dan Lorenz, John Ghabra and Sean O’Conn or   Washington DC     1    7 Knots LLC   715 6th st. NW   Washington   DC   20001  

(703)963-

6320

22-Jun-15   McLean Coble & David Noffsinger   Houston, TX   2   Ionic Capital Partners, LLC   3315 Wrangler Sky Ct   Katy   TX   77494  

(281)750-

1780

22-Jun-15   Chris & Casey Bushey   Virginia Beach, VA   1   N/A   2237 Childeric Road   Virginia Beach   VA   23456  

757-241-

1260

29-Jun-15   Jackie & Michael Benson   Chicago, IL   1   N/A   731 Fair Oaks Ave   Oak Park   IL   60302   (312)343-1570
30-Jun-15   Paul and Patrice Hulseman   Chicago, IL   1   13HKC Inc   120 Evergreen Lane   Winnetka   IL   60093  

(847)867-

9322

30-Jun-15   John & Marina Ryan   Northern VA   1   Ryan Ventures, Inc.   16503 Boatswain Circle   Woodbridge   VA   22191  

(703)477-

7653

2-Jul-15   Zach Pettus & Jean Nitchals   Minneapolis, MN   1   Alpha Team Holdings, LLC   2836 Colfax Ave, #343   Minneapolis   MN   55401  

612-735-

8775

13-Jul-17   Zach Pettus, Jean Nitchals , Paul Jevnick & Jennifer Rondest vedt   Minneapolis, MN   1   NORTH FITNESS HOLDINGS LLC   2836 Colfax Ave, #343   Minneapolis   MN   55401  

612-735-

8775


15-Jul-15   Brad Spivey and Trish Harrison  

Nashville,

TN

   3    N/A   3725 Woodmont Blvd   Nashville   TN   37215   423-748- 0131
17-Jul-15   Ken & Eileen Plotkin   Long Island, NY   1   Elite Enterprises of NY, Incorporated   76 Wildwood Drive   Dix Hills   NY   11746   631-586- 8303
15-Jul-15   Jeff Wayne   Detroit, MI   3   CB Michigan, LLC   4446 Middles boro   Clarkston   MI   48348   248-408- 5600
23-Jul-15   Robert “Bob” Wexler   Philadelphia, PA   1   N/A  

1723

Sylvan Lane

  Gladwyne   PA   19035   (610) 710-5243
27-Jul-15   Rob Janda   Phoenix, AZ   2   N/A   9450 W Cabela Dr, Apt 2328   Glendale   AZ   85305  

(630)

207-0409

27-Jul-15  

Teresa &

Michael Campbe ll, Carly & John Weyand

  Dallas-Fort Worth, TX   1   Ever Heard of It? LLC   2920 River Forest Dr   Fort Worth   TX   76116  

(281)

414-2381

22-Jul-15   Cyril Hertz   Chicago, IL   1   Sloboda, Inc.   107 Bailey Circle   Kennett Square   PA   19348   484-354- 6132
31-Jul-15   Joe Bonidy   Pittsburgh, PA   1   N/A  

131

Crofton Drive

  Pittsburgh   PA   15238   (412) 612-0883
6-Aug-15  

Tosten Schermer &

Bob and Catherine Lee

  Charleston, SC & Charlotte, NC   4  

ScherLee

UBike,

LLC

  7205 Piper Point Lane   Charlotte   NC   28277   704- 907-1000
11-Aug-15       Jeff Cohen   Philadelphia, PA   1   JBJ Exton Investments, LLC   71 Fairfield Lane   Chester Springs   PA   19425   610-256- 4270


18-Aug-15   Pedro Trujillo & Jodi Johnson   Northern NJ    1    PTSS9010, Inc.   112 Spruce lane   North Haledon   NJ   07508   201-414-1193
20-Aug-15   Christine Wallin & Andrew Aiello   San Diego, CA   1   AGCM Enterprises   1669 Tabletop Way   Encinitas CA   CA   92024   (949)293-5396
27-Aug-15   Kristin & Kelly Allen   Oklahoma City, OK   1   K & K Cycling, LLC  

2016

Worthington

Lane

  Edmond   OK   73013   405-824-7832
28-Aug-15   Katie & Rob Knowles   Hilton Head, SC   1   LBSC, LLC   15 Jarvis Creek Court   Hilton Head   SC   29926   (917)406-3634
28-Aug-15   Justin Beck, Jack Weston, Scott Weiss   Cincinnati, OH   2   J2 Fitness, LLC   Jack: 1335 Pendleton St   Cincinnati   OH   45202   513-290-0056
1-Sep-15   Donna Suro & Libbie Crane   Richmond, VA   1   LiquiD RVA, LLC   1 Ridge Road South   Richmond   VA   23229   (804)387-0035
10-Sep-15   Don Dasher & Lisa Hazen   San Jose, CA   3   N/A  

21151

Deepwell Ct

  Saratoga   CA   95070   (408)741-8233

11-Sep-15

  Rafael Ponce   Seattle, WA   1   MV Fitness, LLC   3818 Corliss Ave N   Seattle   WA   98103   206.972.9628
11-Sep-15   Joelle Bouhadana,   Miami, FL   1   CYCLE26, LLC   1281 South 13 Avenue   Hollywood   FL   33019   (954)600-9896


27-Nov-15   Joseph Bouhadana, Motty Klainbaum, Danny Schactel, Mike Shalom   Miami, FL    9    SFL Cycle, LLC  

1150 Hatteras

Lane

  Hollywood   FL   330 19   (786)395-8852
14-Sep-15   Curt Buttiker   Houston, TX   1   313 Fitness, LLC   35 S.Sage Sparrow Circle   The Woodlands   TX   773 89   (330)421-1016
15-Sep-15   Steve Braver man   Northern NJ   2   BraveRide I, LLC & BraveRide II, LLC   50 Jean Drive   Englewood Cliffs   NJ   076 32   (201)696-7441
22-Sep-15   Charlotte Jones- Burton & Delvin Burton   Northern NJ   1   Burton Inspires LLC   50 Valley Wood Drive   Somerset   NJ   088 73   [NONE]
22-Sep-15   Lauren & Scott Schroeder   Milwaukee, WI   1   Schroeder Enterprises LLC   7850 N.Club Circle   Milwaukee   WI   532 17   (414)690-1789
24-Sep-15   Chris McIntyre   Kansas City, KS   1   cMc Enterprise   3901 N. Mulberry Drive, Apt. 1112   Kansas City   MO   641 16   (816)808-1633
25-Sep-15   Marcus Capone, Mike Murphy & Steve Nichols   Dallas-Fort Worth, TX   2   Eminence3 Holdings, LLC   1405 Bentley Court   Southlake   TX   760 92   757-816-6104
29-Sep-15   Kim Hoss & Frances Clark   Jupiter, FL   2   N/A   270 Caravelle Drive   Jupiter   FL   334 59   561-629-2267


30-Sep-15    John & Renee Duncan   Long Island, NY   1   JRD Jumping Corp.  

23

Vassar Place

  Rockville Centre   NY   11570   (516)524-0052
1-Oct-15   Jonathan Bernard & Dan Kruse   Pittsburgh, PA   1   TES Solutions LLC   199 Paradise Road   Industry   PA   15052    
6-Oct-15  

Leslie

Anderson

  Hattiesburg, MS   1   Anderson Holdings, Inc.   11109 Channelside Drive   Gulfport   MS    39503   (228)341-4524
9-Oct-15   Patty Harte   Salt Lake City, UT   3   N/A   850 Donner Way Apt 503   Salt Lake City   UT   84108   801-949-0026
12-Oct-15     Robert “Bob” Franzetta   San Diego, CA   1   JMT Fitness Hillcrest, Inc.   1922 Mission Cliff Drive   San Diego   CA   92116   858-952-8816
19-Oct-15     Lee Oesterling & Kirsten Rickers   Atlanta, GA   3   Atlanta Cycle Studios, LLC   3236 Waldwick Way   Marietta   GA   30067   (770)850-1049
20-Oct-15     Irving & Melissa Chung   Dallas-Fort Worth, TX   1   Fit Endeavors I, LLC   5822 Knights bridge Drive   Dallas   TX   75252   214-908-9791
21-Oct-15     Lee Singer & Ronnie Singer   Orange County, CA   1   N/A   929 B Fatherland Street   Nashville   TN   37206   949-872-8884
27-Oct-15     JP Green & Michael Olander   Seattle/Portl and/Boise   10    JM Cycle, LLC   4140 N. Mountain View Dr.   Boise   ID   83704   208-340-2221
27-Nov-15   Barbara & Jonathan Fleming   Ft. Lauderdale, FL   3   Corones, Inc.,   91 Isle of Venice Dr.   Fort Lauder dale   FL   33301   (703)229-3783


24-Nov-15

  Dione & Tom Bailey   San Francisco, CA   2  

N/A

  2454 Oregon Ave.  

Redwood City

  CA   94061   408-821-3098
8-Dec-15   Travis & Debbie Jacobson   Indianapolis, IN   1   TDW Properties, LLC   3201 Wildlife Trail   Zionsville   IN   46077   317-973-5314
8-Dec-15   Lee &
Christine
Williams
  Long Island,
NY
  3   N/A   14 River
Lane
  Westport
CT
  CT   06880   (917)208-
1121

21-Dec-15

  Chuck Jones & Glenn Flessas  

Nashua, NH

  1  

N/A

  20 Abbey Road  

Merrimack

  NH   03054   603-682- 4482

21-Dec-15

  Heather Branstetter & Chuck Schneider  

San Francisco,

CA

  2  

NextLevel Cycling LLC

  86 Chula Vista Drive   San Rafael   CA   94901   510-735-6003

31-Dec-16

  Bob & Betty Korabik   Chicago, IL   1   N/A   341 Kent Rd  

Riverside

  IL   60546   773-907-5337
28-Dec-15   Liz Hatch &
Tom
Epstein
  Denver, CO   1   Avant-
garde
Fitness
  801 S
Cherry
St #200
  Glendale   CO   80246   (720)556-
1051
5-Jan-16   Shelley & Brandon Baca   Boulder, CO   2   B3 Evolution, LLC & B4 Evolution, LLC   2746 Spruce Meadows Drive   Broomfield   CO   80023   (720)312-3459

7-Jan-16

  Rachael & Peter Orlando  

Fresno, CA

  2  

Dev-Pro, LLC

  9580 N Sunnyside Ave  

Clovis

  CA   93619   (559)243-6693

26-Jan-16

  Rachael & Peter Orlando   Fresno, CA   2  

Dev-Pro, LLC

  9580 N Sunnyside Ave  

Clovis

  CA   93619   (559)243-6693

8-Jan-16

  J. Scot McBride & Chris  

Miami, FL

  4  

N/A

  13253 SW 25th Place  

Davie

 

FL

  33325   305-794-7045


    Sommer                                
14-Jan-16  

Lindsay

Sanders & Robin Ferguson

  Lafayette, LA    1    N/A  

149B

Grand Ave

  Lafayette   LA   70503   (337)

322-2235

18-Jan-16   Katie Kannapell & FredRyser   Louisville, KY   3   PACKWOLF, LLC   3112 Arden Rd.   Louisville   KY   40222   (917)

597-4334

29-Jan-16   Shelley & Joseph Jonietz   Austin, TX   1   Fast Gear, LLC   7508 Valburn Drive   Austin   TX   78731   512-922-9325
29-Feb-16  

Chris

Andras & Mike Silas

  Dallas-Fort Worth, TX   1   N/A  

5964

Kensington Dr

  Plano   TX   75093   817-729-4048
29-Feb-16   Danielle & Doug King   Columbus, OH   1   DD Cycle, Inc.   5225 Augusta Drive   Westerville   OH   43082   614-570-3445
9-Mar-16   Hayley Killam   Aspen, CO   2   N/A  

304

Ridge Rd

  Laredo   TX   78041   512-771-4214
28-Mar-16     Dave Jones   Fargo, ND   1   Fit Investments, LLC   4602 Woodhaven Drive S   Fargo   ND   58104   701-371-6606
31-Mar-16    

Paul &

Anita Schnapp

  St. Louis, MO   3   Schnapp Enterprises, Inc.   661 Carman Meadows Drive   Ballwin   MO   63021   314-324-3040
8-Apr-16  

Roger,

Grant, & Lucas Hendren

  Dallas-Fort Worth, TX   1   RockStrong Texas LLC   6505 Camelback Drive   McKinney TX   TX   75071   972-816-6375
8-Apr-16   Mike Harris   Houston, TX   3   N/A   5114 Rolling   Richmond   TX   77407   713-377-


                   

stone

Road

              0453
12- Apr-16   Alan Telford   Sacramento, CA    1    N/A  

1431 Q

Street, Apt 310

  Sacramento   CA   95811   916-276- 4035
6-Apr-16   John Janszen & Michael Olander   NKY, Lexington, Knoxville   4   JCM Kentucky Cycle, LLC   3850 Foxtail Lane   Cincinnati   OH   45248  

513-616- 3369

13-Apr-16   Kathleen Boss and Stephen Pineault  

Jacksonville,

FL

  3   N/A  

916

Spinnakers Reach Drive

  Ponte Vedra Beach   FL   32082   772-539- 1294
18-Apr-16   David Busker & David Batschelett   St. Louis, MO   3   DB2 Fitness One, LLC   13 Heather Hill Lane   Saint Louis   MO   63132   (314)221-6595
29-Nov-16   David Busker & David Batschelett   St. Louis, MO   1   DB2 Fitness Two, LLC   13 Heather Hill Lane   Saint Louis   MO   63132   (314)221-6595
18-Apr-16   Nate Fennell & Chris Shill   Portland, OR   1   N/A   1303 NW 5th Ave   Camas   WA   98607   360-823- 7223
9-May-16   Steve & Jane Zubrzycki   Dayton, OH   1   N/A  

7823

Old Woods Court

  Springboro   OH   45066  

937-557-

8225

10-May-16   Greg & Nuch Venbrux   Pittsburgh, PA   1   Kraken Cycleworks LLC   6653 Wilkins Avenue   Pittsburgh   PA   15217   412-606- 3116
10-May-16   Chris Yates  

Cleveland,

OH

  1   Elevate Partners, LLC   6452 Dorset Ln   Solon   OH   44139   440-318- 1458
11-May-16   Ashley Robbins   Midland, TX   1   Cycle City, LLC   809 Keystone Ct   Midland   TX   79705   806-470- 5804


12-May-16  

Lisa

O’Rour

ke

 

Providence,

RI

  1  

Off

Islander

Inc.

 

48 Cara

Court

 

North

Kingstown

  RI   02852   401-885-3398
13-May-16   Jen & Joe DeMarco, Nick & Carol Sheehan   Hoboken, NJ   1   Cycle Hoboken West LLC   302 First Street, Suite 301   Hoboken   NJ   07030   917-495-5126
13-May-16   Courtney & Eric Stacho wski   Charlotte, NC   1   TeamStac Fitness, LLC  

18944

Peninsula Point Dr.

  Cornelius   NC   28031   704-287- 3405
24-May-16   Thomas Dixon Douglas  

Winston-

Salem, NC

  1   Motion2 Consulting LLC   1221 Yale Place   Charlotte   NC   28209   704-619-1487
7-Jun-16   Jennifer “Becky” McGinnis & Jason Stubbs   Northern NJ   1   Echappe LLC   88 Morgan Street, Apt 4104   Jersey City   NJ   07302   208-760- 0134
13-Jun-16  

Bhumika &

Ankitaben Patel and Shaifali Gondaliya

  Chicago, IL   1   Spinenergy, LLC  

23713

N

Sanctuary Club Drive

  Kildeer   IL   60047   847-220-3234
30-Jun-16  

Leonard

& Gail Barela & Jeremy Thornton

  Los Angeles, CA   1   Makarios   176 E. Clarion Drive   Carson   CA   90745   310-989- 8942
1-Jul-16   Joanna and Erik Lundberg   Tusla, OK   1   N/A   1602 S. Columbia Pl.   Tulsa   OK   74104   918-955- 7339


11-Jul-16   

Stephanie

McCaulley & Jaime

Lanigan

  Philadelphia, PA    1    N/A  

182

Twining Road

  Richboro   PA   18954  

215-

498-6984

29-Jul-16   Claire Powell   San Francisco, CA   1   N/A  

11409

Bloomington Way

  Dublin   CA   94568   925-
325-9312
2-Aug-16   Jayesh Patel & Jeetendra Patel   Waco   1   The Sharda Group, LLC   17021 Star Canyon Drive   Woodway   TX   76712   817-
919-2564
17-Aug-16   Andrea & Marlon Byrd   Los Angeles, CA   1   MAGM Fitness, Inc   3801 Prado del Trigo   Calabasas   CA   91302   818-
922-4050
16-Aug-16  

Doug

Lennox, Derek Tennant, Ram Ramkumar

  Toronto, Canada   1   InCycle Investments Inc   315 Perrin Ave Newmarket   Ontario   ON   L3 Y 8B2   905-
967-2793
22-Aug-16   Jeet Khanchandani   UAE   5   JSK FITNESS L.L.C.   Saleh Mohammad Al Khamis Building No. 3 – Dubai Municipality No.312741 Ali Bin Abi Talib Street,   Bur Dubai, Dubai – United Arab Emeriates       P.O. Box: 51568   [NONE]
31-Aug-16   Ryan “Buddy” Hardiman & Dennis   Tampa, FL   4  

Granny

Gear Management LLC

  302 Knights Run Ave, Suite 100   Tampa   FL   33602   813-
892-5954


    Hardiman                                
9-Sep-16   John & Kiersten DiChiaro   Boston, MA    1    N/A   24 Fletcher Way   Norton   MA   02766   401-
829-6481
17-Sep-16   

David

Bland

 

Los

Angeles, CA

  1   Positive Spin, LLC  

130 W Dayton

St, Unit

1012

  Pasadena   CA   91105   (949)
910-8928
26-Sep-16   Stephanie Sklar- Mulcahy   Los Angeles, CA   1   N/A   7141 Knowlton Pl   Los Angeles   CA   90045   323-
573-3227
21-Sep-16   Praful Shrivastava   San Diego, CA   1   KaiNir LLC   17212 Eagle Canyon Pl   San Diego   CA   92127   760-
525-1321
6-Oct-16  

Rick

Giese and

Leann Sumner

  Riverside County, CA   1   N/A   25363 Lisa Marie Cicle   Temecula   CA   92590  

951-

216-8346

7-Oct-16  

David

Pelsue

  Madison & Milwaukee, WI   3   DWP Enterprises, LLC   1502 N. Sedgwich St, Unit 6S   Chicago   IL   60610   608-
359-1720
12-Oct-16   Greg & Sidney Hatfield   Houston, TX   1   Hatfield Spinco, LLC   5013 Gibson St   Houston   TX   77007   281-
881-3945
31-Oct-16   Keith & Kelly Weier   San Diego, CA   1   K&K Fit 4 Life, Inc.   1720 Weatherwood Court   San Marcos   CA   92078   760-
840-1726
3-Nov-16   Mark VanKirk   Northern VA   3   N/A   1411 Mayflower Drive   McLean   VA   22101   (703)
283-9700
21-Nov-16   John Wood   Cleveland, OH   1   Challenger 728 LLC  

9141

Ruby Ridge St NW

  Canal Fulton   OH   44614  

330-

936-8069


29-Nov-16    Macelon D’Sa, Neelpa D’Sa, and Melanie Dimemmo   Northern NJ   1   MNM Ventures LLC   1125 Maxwell Lane, Apt 730   Hoboken   NJ   07030   917-847-9942
30-Nov-16   Nadine & Andrew Smith   Annapolis, MD   1   N/A   1209 tailwind ct   Crownsville   MD   21032   (410)271-5927
5-Dec-16   Mark & Holly Mussmann   Phoenix, AZ   1   Desert Ventures CB1, LLC   18345 N 93rd Way   Scottsdale   AZ   85255   602-738-6959
15-Dec-16   Heath Trowell   Atlanta, GA   1       75 Malachi Path   Dallas   GA   30132   352-262-3328
21-Dec-16   Carin & Ian Zellman   Northern NJ   1   I & C Cycle, LLC   449 Nevada Street   Paramus   NJ   07652   201-264-2083
19-Jan-17   Laura Aquino   Northern NJ   1   N/A   61 Franklin Turnpike   Allendale   NJ   07401   917-842-1651
30-Jan-17   Kevin & Elizabeth Anderson   Hartford, CT   1   N/A   86 Poplar Hill Drive   Farmington   CT   06032   860-404-5249
22-Jan-17   Stacey Stelmach   Pompano Beach, FL   1   N/A   1402 Brickell Bay Drive, #1601   Miami   FL   33131   832-477-5384
1-Mar-17   John & Becky Wick   Indianapolis, IN   3   Wicked Spinning, LLC   15182 Worsley Park   Carmel   IN   46033   317-428-8467
9-Mar-17   Tony Virella   Los Angeles, CA   3   N/A   5959 Murphy Way   Malibu   CA   90265   310-622-5205
10-Mar-17   Saul & Lisa Locker   Denver, CO   4   N/A   1133 14th St, Unit 4250   Denver   CO   80202   303-981- 0916


16-Mar-17    Devika Kumar   Nashville, TN   1   Mind Body Innovations, LLC   1301 Lone Oak Cir   Nashville   TN   37215   615-292-7033
13-Mar-17   Scott Marshall   Denver, CO   1   Marshall CB LLC   9591 E Hidden Hill Lane   Lone Tree   CO   80124   303-507-6651
24-Mar-17   Todd & Julie Lotzer   Detroit, MI   1   Spinsation, LLC   1562 Galena   Rochester Hills   MI   48306   612-423-6191
24-Mar-17   Mark Pastolove   Westchest County, NY   1   Horology Now LLC   3 Harrison Ct   Cortland Manor   NY   10567   917-399-9513
11-Apr-17   Loma and Bassam “Bobby” Ammar   Edmonton, AB, Canada   3   Maverick Fitness Corp.   43 Lacombe Drive   St. Albert   AB   T8N4G8   780-498-1137
18-Apr-17   Inga & Larry Pross   Brooklyn, NY   1   N/A   199 Woodside Drive   Hewlett   NJ   11557   917-449-2048
25-Apr-17   Erin Schiller   Wellington, FL   1   N/A   13 Grandview Place   North Caldwell   NJ   07006   386-882-6018
25-Apr-17   Kreg Boynton & Hollie Pool   Wichita, KS   1   N/A   320 Mooney Dr   Benton   KS   67017    
17-May-17   Mark Washburn   Naples, FL   1   N/A   82 Cudworth Lane   Sudbury   MA   01776   617-529-2800
17-May-17   Marty & Craig Coffey   Colorado Springs, CO   2   Coffey Bar, Inc   404 Scottsdale Drive   Colorado Springs   CO   80921   719.96 4.2882
2-Mar-17   Oliver Chipp   United Kingdom   30    Elan Fitness Ltd.   207 Regent St, 3rd Floor   London   UK   W1B3HH    


31-May-17   Jeff Bass   Boston, MA   1   N/A   30 White St.   Winchester   MA   01890   978-314-9394
31-May-17   Catherine Straughan & Kimberley Drobny   Dallas-Fort Worth, TX   1   N/A   1051 Harvest Hill Dr   Prosper   TX   75078   (918)519-9663
31-May-17   Patrick Hickey   Detroit/Toledo   3   N/A   1952 Brim Drive   Toledo   OH   43613   (419)261-0832
8-Jun-17   Natalie Rix   Milwaukee, WI   1   Breathe Fitness, LLC   N69W29754 Ridgeveiw Court   Hartland   WI   53029   773-396-7300
24-Jul-17   John & Amber Reid   Atlanta, GA   1   Velo Fitness LLC   1732 Johnson Rd NE   Atlanta   GA   30306   (305)726-8767
27-Jul-17   Minty & Minesh Patel   Savannah, GA   1   N/A   1102 Bradley blvd   Savannah   GA   31419   (706)340-7223
7-Aug-17   Lisa Lewis   West Palm Beach, FL   1   It’s Cyclical LLC   120 Bent Tree Drive   Palm Beach Gardens   FL   33418   561-309-7836
15-Aug-17   Stefanie and Kirk Nelson   Bend, OR   1   SK10 LLC   1360 NW Promontory Drive   Bend   OR   97703   [NONE]
17-Aug-17   Jeffrey and Calleen Hodges   Des Moines   1   N/A   2814 NW Sharmin Drive   Ankeny   IA   50023   [NONE]
31-Aug-17   April J. Amory and Kevin C. Grubb   Virginia Beach   3   N/A   1344 Penguin Circle   Virginia Beach   VA   23451   [NONE]
31-Aug-   Jennifer Sims   Sante Fe, NM   1   N/A   11 Entrada   Sante Fe   NM   87506   [NONE]


17

                 

Descan

so

               

19-Sep-17

  Joseph S. Ruiz and Cassia L. Ruiz   Lancaster, PA   1   N/A   1328 Jasmine Lane   Lancaster   PA   17601   717-715- 5688

28-Sep-17

  Bryna B. Podwoiski   Nashville, TN   1       1020 Andover   Northville   MI   48167    

5-Oct-17

  David W. Pelsue   Madison, WI   1   DWP Enterprises EW LLC   1502 N. Sedgwick St., Unit 6S   Chicago   IL   60610   608-359- 3457

6-Oct-17

  David W. Pelsue   Madison, WI   1   DWP Enterprises HD LLC   1502 N. Sedgwick St., Unit 6S   Chicago   IL   60610   608-359- 3457

6-Oct-17

  Alexandria L. Pilon   Phoenix, AZ   1       6775 Horned Owl Trail   Scottsdale   AZ   85266    

6-Oct-17

  Barry A. Hamilton   Colorado   AR- 23   Pedal Launch, LLC   4290 S. Hudson Parkway   Cherry Hills   Col orado   80113    

13-Oct-17

  Jay S. Smith   Salt Lake City, UT   3   Peak Cycle Holdings, Inc.   6690 Morrison Drive   Denver   CO   80221    

29-Dec-17

  William Pryor   Wellesley, CT   1   Spynergy, LLC   386 Washington Street   Wellesley   MA   02481    

29-Dec-17

  Jeffrey D. Herr   Hyde Park, OH   1   CycleBar Hyde Park, LLC   3825 Edwards Road, Suite 103   Norwood   OH   45209    

29-Dec-17

 

Jimmy

Wilde & Lisa Hillman

  Royal Oak, MI   1   Go Cycle, LLC   413 N. Main St.   Royal Oak   MI   48067    

29-Dec-17

  Jeffrey D. Herr   Kenwood, OH   1   Cycle Seven Ventures Kenwood, LLC   3825 Edwards Road, Suite 103   Norwood   OH   45209    

7-Feb-18

  Adnan A. Khazaal   Detroit, MI   1       217 S. Beech Daly   Dearborn Heights   MI   48125    

27-Feb-18

  Carrie Touchette   Hartford, CT   1       653 Main Street   Hampden   MA   01036    

8-Mar-18

  Joseph E. Maguire   Raleigh NC & Greenville SC   1       15675 Bellanca Lane   Wellington   FL   33414    

15-Mar-18

  Paul A. Schnapp   St. Louis, MO   1   Schnapp Enterprises, Inc.   661 Carman Meadows Drive   Ballwin   MO   63201    

18-Mar-18

  Jeremiah Renner   Columbus, OH   1       3010 Oakridge Road   Upper Arlington   OH   43221    

15-Mar-18

  Paul A. Schnapp   St. Louis, MO   1   Schnapp Enterprises, Inc.   661 Carman Meadows Drive   Ballwin   MO   63201    

18-Mar-18

  Jeremiah Renner   Columbus, OH   1       3010 Oakridge Road   Upper Arlington   OH   43221    

19-Mar-18

 

Julie J.

Marchese, Paige M Vashon and Michele M. Shems- Then

  Portland, ME   1       8 Lantern Lane   Cumberland   ME   04110    


4-Apr-18

 

Scott J.

Openshaw

  Provo & Orem, UT (84042, 84057, 84058, 84062, 84097, 84601, 84602, 84604, and 84606)   1      

1453 Annie

Lace Way

  Draper   UT   84020    

4-Apr-18

 

Scott J.

Openshaw

  Lehi, UT (84003, 84043, and 84045)   1      

1453 Annie

Lace Way

  Draper   UT   84020    

11-Apr-18

 

Robert F.

Friend

  19087 and 19406   1       1320 Dell Road   Eagleville   PA   19403    

11-Apr-18

 

Elizabeth A.

Boselli

  80026 and 80027   1      

3510 Raintree

Lane

  Dacono   CO   80514    

30-Apr-18

 

Todd G. Adams, Michelle L. Adams, Michael Van Drunen, Lisa Van Drunen,

Robert

Adams, Adelaide Adams

 

32501, 32502,

32503, 32504, and

32514

  1   AdaVan Fitness, LLC  

673

Wildwood

Drive

  Meridian   MS   39301    

1-May-18

 

Raymond J.

Wicks and

Joanne Diaz

 

Morristown, New

Jersey

  1      

215 Miln

Street, Unit

6

  Cranford   NJ   07016    

17-May-18

 

Janae L. Dunn and Gayle

Lacour

  78613 and 78717   1  

GJ Services,

LLC

 

1708

Snyder

Trail

  Leander   TX   78641    

25-May-18

 

Tracy A. Young and Daryl G.

Young

  Wesley Chapel, FL   1      

1503 Lake

Polo Drive

  Odessa   FL   33556    

1. Opening Deadline and Site Acquisition Extensions and Releases

 

Franchisee - Entity   

 

Opening Deadline

Extension and

Release

  

 

Site Acquisition

Extension and

Release

Marcus Capone & Mike Murphy &

Steve Nichols - Eminence3 Holdings, LLC (2)

  

20-Jun-15

    
Dan Murphy - JCN Corporation   

19-May-16

    
Jeff Wayne - CB Michigan, LLC   

19-May-16

  

11-Feb-16

Cyril Hertz - Sloboda Inc.   

19-May-16

  

4-Feb-16

Dave Bridges - DCB Cycling, LLC   

19-May-16

    

Eric Skoloff & Keith Boettiger - Cycle

Syndicate, LLC

  

19-May-16

  

11-Jan-16

Gary & Laura Stinnett and Richard & Linda

Algea - Rick’s and Stick’s Cycle Corp.

  

19-May-16

    
Greg Jackson & Gladys Jackson - Simjah, Inc.   

19-May-16

    
Gregorio Serrata & Maria Serrata - Serrata, LLC   

19-May-16

  

25-Jan-16

Heather Sommers-Sambado - Heather Sommers LLC   

19-May-16

  

15-Jan-16


Joe Bonidy   

19-May-16

  

5-Feb-16

Maclean Coble & David Noffsinger - Ionic Capital Partners, LLC   

19-May-16

    
Mark Schneider - CB Westend Inc.   

19-May-16

  

27-Jan-16

Susan Grant - Fit Lilly Inc.   

19-May-16

    
Suzanne Wells & Bryn Wells & Jean Wells & Mark Wells - Ohana Fitness, Inc.   

19-May-16

  

25-Jan-16

Yvonne Denslow and Ken & Heather Gotaas - Affinity Cycle, Inc.   

19-May-16

    
Justin Beck & Scott Weiss & Robert Weston - J2 Fitness, LLC   

20-May-16

    
Paul Hulsemen & Patrice Hulseman - 13HKC Inc.   

20-May-16

  

26-Jan-16

Julie Kertzman & Cynthia King & Stacey Agnoustari - JSC Ventures, Inc.   

23-May-16

    
Ken Plotkin & Eileen Plotkin - Elite Enterprises of NY, Incorporated   

23-May-16

  

28-Jan-16

Pedro Trujillo & Jodi Johnson   

23-May-16

  

7-Jan-16

Peter DeLuca   

23-May-16

  

12-Jan-16

Rod Reyes - CB Chandler, LLC (1)   

23-May-16

    
Brad Spivey & Trish Harrison - H&S Music City Holdings, Inc.   

24-May-16

  

27-Jan-16

Claire Hayes & Sheila Hayes   

24-May-16

  

12-Jan-16

Donna Suro & Libbie Crane - LiquiD RVA, LLC   

24-May-16

    
Jackie Benson & Michael Benson   

24-May-16

  

2-Feb-16

Kevin & Sharon Thompson - Sharon Elizabeth, LLC   

24-May-16

    
Michelle Morris & Julie Pfaff - JM Power Group, Inc.   

24-May-16

    
Tim Ross - Eminence3 Holdings, LLC   

24-May-16

    
Bob Wexler   

25-May-16

  

10-Feb-16

Christine Wallin & Andrew Aiello - AGCM Enterprises   

25-May-16

  

8-Feb-16

Gary Dellovade   

25-May-16

  

8-Jan-16

John Ryan & Marina Ryan - Ryan Ventures Inc.   

25-May-16

    
Katie Knowles & Robert Knowles - LBSC, LLC   

25-May-16

    
Kristin Hill & Kelly Allen - K&K Cycling, LLC   

25-May-16

    
Michelle Elder & Brad Elder - MicheHill LLC   

25-May-16

    
Rob Janda - Cycle Norterra, LLC   

25-May-16

  

8-Feb-16

Zach Pettus & Jean Nitchals - Alpha Team Holdings, LLC   

25-May-16

    
Ken Stuttaford - Seaside Clean Living, Inc.   

26-May-16

  

8-Feb-16


Joe Cece & MaryLaurie Cece   

27-May-16

  

12-Jan-16

Don Dasher & Lisa Hazen - Dog’s Breath Inn, Inc.   

7-Jun-16

    
Joelle Bouhadana - CYCLE26, LLC   

7-Jun-16

    
Lauren Schroeder & Scott Schroeder – Schroeder Enterprises LLC   

7-Jun-16

    
Steve Braverman - Braveride I, LLC   

7-Jun-16

    
Steve Braverman - Braveride II, LLC   

7-Jun-16

    
John Duncan & Renee Duncan - JRD Jumping Corp.   

10-Jun-16

    
Rafael Ponce - MV Fitness, LLC   

13-Jun-16

    
Chris McIntyre - cMc Enterprise, LLC   

14-Jun-16

    
Jonathan Bernard & Dan Kruse - TES Solutions LLC   

14-Jun-16

    
Joel and Shirelle Vilmenay - Crescent City Cycle, LLC   

16-Jun-16

    
Kim Hoss & Frances Clark (1)   

16-Jun-16

  

29-Feb-16

Jeff Cohen - JBJ Exton Investments, LLC   

17-Jun-16

    
Charlotte Jones-Burton & Delvin Burton - Burton Inspires LLC   

20-Jun-16

  

21-Mar-16

Bryan Lively and Anne & Nick Monigold   

18-Jul-16

  

6-Jan-16

Leslie Anderson - Anderson Holdings, LLC   

19-Jul-16

    
Irving Chung & Melissa Chung - Fit Endeavors I, LLC   

20-Jul-16

    
Bob Franzetta - JMT Fitness Hillcrest, Inc.   

21-Jul-16

    
Jack Cauley & Deanna Cauley - JCD Colorado, LLC   

21-Jul-16

  

24-Feb-16

Curt Buttiker - 313 Fitness LLC   

4-Aug-16

    
John Fleming & Barbara Fleming - Corones, Inc.   

16-Aug-16

  

12-Jul-16

Thom Bailey & Dione Bailey (1)   

16-Aug-16

  

5-Jul-16

Marc Krasner - Spin City Colorado, LLC   

28-Sep-16

  

29-Jun-16

Charles Jones & Glenn Flessas   

30-Sep-16

  

25-Jul-16

Travis Jacobson & Debbie Jacobson - TDW Properties, LLC   

3-Oct-16

  

14-Jul-17

Heather Branstetter & Chuck Scheider (2) - Next Level Cycling, LLC   

4-Oct-16

  

7-Jul-16

Heather Branstetter & Chuck Schneider (1) Next Level Cycling, LLC   

4-Oct-16

  

7-Jul-16

Liz Hatch & Tom Epstein - Avant-garde Fitness, LLC   

13-Oct-16

  

8-Jul-16

Brandon Baca & Shelley Baca - B3 Evolution, LLC   

2-Dec-16

  

29-Jun-16

Brandon Baca & Shelley Baca - B4 Evolution, LLC   

2-Dec-16

  

29-Jun-16


Robin Ferguson & Lindsay Sanders   

2-Dec-16

  

27-Jun-16

Rachel Orlando & Peter Orlando (1) Dev-Pro, LLC   

6-Dec-16

  

8-Jul-16

Danielle King & Doug King - DD Cycle Inc.   

14-Dec-16

  

29-Jun-16

Chris Andras & Michael Silas   

15-Dec-16

  

28-Jun-16

Paul Schnapp & Anita Schnapp - Schnapp Enterprises, Inc.   

5-Jan-17

  

8-Jul-16

Dave Jones - Fit Investments, LLC   

5-Jan-17

  

28-Jun-16

Alan Telford   

22-Feb-17

  

21-Jul-16

David Busker & David Batschelett - DB2 Fitness One, LLC   

22-Feb-17

  

19-Jul-16

Chris Yates - Elevate Partners, LLC   

23-Feb-17

  

10-Aug-16

Greg Venbrux & Nuchanart Venbrux - Kraken CycleWorks LLC   

23-Feb-17

  

13-Aug-16

Roger Hendren & Grant Hendren & Lucas Henden - RockStrong Texas LLC   

23-Feb-17

  

22-Jul-16

Steve Zubrzycki & Jane Zubrzycki - Cycle Revolution Inc.   

23-Feb-17

  

12-Aug-16

Mike Harris   

28-Feb-17

    
Nate Fennell & Chris Shill   

28-Feb-17

  

21-Jul-16

Kathleen Boss   

1-Mar-17

  

21-Jul-16

Marc & Lisa Palmer - Charlotte Cycle, Inc.   

UNDATED

    
Dan Lorenz & Sean O’Connor & John Ghabra - 7 Knots, LLC   

UNDATED

    
David Safai        

12-Jan-16

Tejal Kamdar & Jason Snyder & Meera Kamdar        

13-Jan-16

Houston Ross & Karin Ross        

13-Jan-16

Nigel Brown & Michelle McGlocklin - Drury Lane Ventures, Inc.        

25-Jan-16

Torsten Schermer & Bob Lee & Catherine Lee - ScherLeeUBike, LLC        

12-Feb-16

Lee Oesterling & Kirsten Rickers - Atlanta Cycle Studios, LLC        

23-Feb-16

Patty Harte        

28-Feb-16

Joseph Amon & Blair Amon & James Yourinson & Rebecca Yourinson - YAE Corporation (2 Agreements)        

29-Feb-16

Lee Williams & Christine Williams        

27-Jun-16

Fred Ryser & Katie Ryser - PACKWOLF, LLC        

28-Jun-16

Liz Ullathorne & Bill Ullathorne - ELU, LLC        

28-Jun-16

Shelley Jonietz & Joseph Jonietz        

29-Jun-16

Amy Rath & Ryan Rath        

5-Jul-16


Robert Korabik & Elizabeth Korabik - HTC Wellness, Inc.        

5-Jul-16

Hayley Killam - (1)        

6-Jul-16

Tim Hughes - DalKor Inc.        

6-Jul-16

Chris Mullen        

8-Jul-16

Clint Privett (1)        

11-Aug-16

Chris Bushey & Casey Bushey - CB3, LLC        

1-Sep-16

Desert Ventures CBI_   

16-Oct-17

    
Challenger 728, LLC   

16-Oct-17

    
Laura Aquino   

16-Oct-17

    
Velo Fitness LLC        

30-Oct-17

I & C Cycle, LLC   

31-Oct-17

    
VK2, LLC   

3-Nov-17

    
Minty, Minesh, Davesh Patel        

3-Nov-17

Breathe Fitness, LLC        

3-Nov-17

K. Anderson   

3-Nov-17

    


  1.

Groupon Modification Agreements

 

Franchisee - Entity

 

Groupon
Modification
Agreement

Doug and Mindy Dolenc - M.D. Dolenc Enterprise Inc.

 

30-Jun-15

Jeff Delorme

 

27-Jun-16

Maclean Coble & David Noffsinger - Ionic Capital Partners, LLC

 

28-Jun-16

Susan Grant - Fit Lilly Inc.

 

28-Jun-16

Christie Meyers & Kristofer Meyers - CB Raleigh, LLC

 

28-Jun-16

David EichelBerger - DCL Fitness Inc.

 

28-Jun-16

JCN Corporation

 

28-June-16

Eric & Debbie Huffine - Deep Enterprises, LLC

 

5-Jul-16

Patrick and Anna Walsh - RYR Colorado, LLC

 

6-Jul-16

Craig & Marilysn Holm - Holm Family Holdings LLC

 

11-Aug-16

JSC Ventures, Inc.

 

14-Nov-16

JBJ Exton Investments, LLC

 

16-Nov-16

 

  2.

Resale Agreements

 

Franchisee - Entity

 

Resale
Agreement

Chris Bushey & Casey Bushey - CB3, LLC

 

28-Mar-16

Ekpedme Udoh & Brandon Grier - LGR LIFESTYLE, LLC

 

6-Apr-16

Lee Singer & Ronnie Singer

 

1-Jun-16

Steven Ruby & Lisa Ruby - Redgem Holdings LLC

 

2-Jun-16

Doug and Mindy Dolenc - M.D. Dolenc Enterprise Inc.

 

11-Jul-16

David Conway

 

11-Jul-16

Chris Andras & Michael Silas

 

25-Aug-16

William McComb & Peter Wolf - Ciclo Management, LLC

 

28-Aug-16


Gary Dellovade    2-Sep-16
Christie Meyers (2)    5-Sep-16
Kenneth G. & Gladys C. Jackson - Simjah Inc.    14-Oct-16
Bryan Lively and Anne & Nick Monigold    2-Nov-16
Latasha D. & Brian C. Emeri    10-Nov-16,
as amended
5-Jun-17
Craig R. & Cathleen G. Gentry & Karen C. Wilson-Torres    9-Dec-16
Amy Rath & Ryan Rath    27-Jan-17
   
Joe Rothchild and Bradley Macpherson - GHM CB, LLC    16-Mar-17
   
Heather Branstetter & Chuck Scheider (2) - Next Level Cycling, LLC    5-Jun-17
   
Holm Family Holdings    13-Nov-17
   
Next Level Cycling    13-Nov-17
   
313 Fitness, LLC    29-Mar-18
   
Amy Snow    30-Mar-18
   
Sharon Elizabeth, LLC    3-Apr-18
   
Anthony Bonidy    11-Apr-18

 

  3.

Reacquisition and Release Agreements

 

   
Franchisee - Entity   

Reacquisition

and Release

Andrew Lambie & Pamela Lambie

  

24-Feb-16

Kira Knickrehm

  

1-Jun-16

A. David Davis & Jacob Davis & John Krumdieck - MdG Partners, LLC

  

9-Feb-32

Michelle Marks

  

UNDATED

 

  4.

Interim Studio Operations Agreements & Renewals


Franchisee - Entity    Interim Studio
Operations
Agreement
   Interim Studio
Operations
Agreement Renewal
     
Shelby Faubion & James Moller - Finition Inc.    31-Oct-16    25-Apr-17
     
Dan Murphy - JCN Corporation    15-Nov-16    N/A
     
Greg Jackson & Gladys Jackson - Simjah, Inc.    3-Jan-17    N/A
     
Doug and Mindy Dolenc - M.D. Dolenc Enterprise Inc.    27-Jul-17    N/A

 

  5.

Transfer and Assignment Agreements

 

     
Franchisee - Entity   

Transfer and

Assignment Non-

control transfer

(entity transfer)

  

Transfer and

Assignment

Control (change

of ownership

transfer)

     

Joel and Shirelle Vilmenay - Crescent City Cycle, LLC

  

12-Mar-15

    
     

Joseph Purton - Lucky Star Holdings, LLC

  

1-May-15

    
     

Shelby Faubion & James Moller - Finition Inc.

  

9-Jun-15

  

16-Jul-17

     

Craig & Marilysn Holm - Holm Family Holdings LLC

  

20-Jul-15

    
     

David EichelBerger - DCL Fitness Inc.

  

23-Jul-15

    
     

Steven Ruby & Lisa Ruby - Redgem Holdings LLC

  

21-Aug-15

    
     

Christie Meyers & Kristofer Meyers - CB Raleigh, LLC

  

4-Sep-15

  

3-Apr-17

     

Julie Kertzman & Cynthia King & Stacey Agnoustari - JSC Ventures, Inc.

  

8-Sep-15

    
     

Jill & Carl Isaacs - CMCJ, LLC

  

24-Sep-15

    
     

Gregorio Serrata & Maria Serrata - Serrata, LLC

  

9-Oct-15

    
     

Ken Stuttaford - Seaside Clean Living, Inc.

  

30-Oct-15

    
     

A. David Davis & Jacob Davis & John Krumdieck - MdG Colony, LLC

  

2-Nov-15

    
     

Rod Reyes - CB Chandler, LLC (1)

  

24-Nov-15

    
     

Rod Reyes - CB Chandler, LLC (2)

  

24-Nov-15

    
     

Greg Jackson & Gladys Jackson - Simjah, Inc.

  

30-Nov-15

  

16-Jul-17


     

Nigel Brown & Michelle McGlocklin - Drury Lane Ventures, Inc.

  

4-Jan-16

    
     

Kristin Hill & Kelly Allen - K&K Cycling, LLC

  

23-Jan-16

    
     

Kevin & Sharon Thompson - Sharon Elizabeth, LLC

  

26-Jan-16

    
     

Curt Buttiker - 313 Fitness LLC

  

17-Feb-16

    
     

Katie Knowles & Robert Knowles - LBSC, LLC

  

21-Feb-16

    
     

Patrick and Anna Walsh - RYR Colorado, LLC

  

16-Mar-16

    
     

John Fleming & Barbara Fleming - Corones, Inc.

  

22-Mar-16

    
     

Danielle King & Doug King - DD Cycle Inc.

  

24-Mar-16

    
     

Brandon Baca & Shelley Baca - B3 Evolution, LLC

  

31-Mar-16

    
     

Brandon Baca & Shelley Baca - B4 Evolution, LLC

  

31-Mar-16

    
     

Liz Ullathorne & Bill Ullathorne - ELU, LLC

  

23-Apr-16

    
     

Heather Branstetter & Chuck Scheider (2) - Next Level Cycling, LLC

  

27-Apr-16

    
     

Heather Branstetter & Chuck Schneider (1) Next Level Cycling, LLC

  

27-Apr-16

    
     

Irving Chung & Melissa Chung - Fit Endeavors I, LLC

  

3-May-16

    
     

Yvonne Denslow and Ken & Heather Gotaas - Affinity Cycle, Inc.

  

4-May-16

    
     

Heather Sommers-Sambado - Heather Sommers LLC

  

1-Jun-16

    
     

Fred Ryser & Katie Ryser - PACKWOLF, LLC

  

10-Jun-16

    
     

Bob Franzetta - JMT Fitness Hillcrest, Inc.

  

15-Jun-16

    
     

Michelle Morris & Julie Pfaff - JM Power Group, Inc.

  

16-Jun-16

    
     

Maclean Coble & David Noffsinger - Parachute Capital Partners, LLC

  

20-Jun-16

    
     

Marc & Lisa Palmer - Charlotte Cycle, Inc.

  

30-Jun-16

    
     

Amy Snow - Amy Snow Enterprise Inc.

  

29-Jul-16

    
     

Susan Grant - Fit Lilly Inc.

  

5-Aug-16

    
     

Dave Bridges - DCB Cycling, LLC

  

12-Aug-16

    
     

Don Dasher & Lisa Hazen - Dog’s Breath Inn, Inc.

  

25-Aug-16

    


Rachel Orlando & Peter Orlando (1) Dev-Pro, LLC    8-Sep-16     
Brad Spivey & Trish Harrison - H&S Music City Holdings, Inc.    8-Nov-16     
J. Scott McBride & Chris Sommer - HighRev Lifestyle, Inc. & McBride-5 Enterprise, LLC (Development Agreement)    14-Nov-16     
Cyril Hertz - Sloboda Inc.    23-Nov-16     
Chris Bushey & Casey Bushey - CB3, LLC    29-Dec-16     
Mark Schneider - CB Westend Inc.    10-Jan-17     
Chris Yates - Elevate Partners, LLC    14-Feb-17     
Steve Zubrzycki & Jane Zubrzycki - Cycle Revolution Inc.    7-Mar-17     
Robert Korabik & Elizabeth Korabik - HTC Wellness, Inc.    20-Mar-17     
Dan Murphy - JCN Corporation         14-May-15
Doug and Mindy Dolenc - M.D. Dolence Enterprise Inc.         24-Sep-15
Marc Krasner - Spin City Colorado, LLC         24-Dec-15
Michael Kearns & Ana Bertsch - Gavia Cycling, LLC         24-Dec-15
Mark & Denise Davis         5-Feb-16
Justin Beck & Scott Weiss & Robert Weston - J2 Fitness, LLC         24-Apr-16
Clementine Goutal & Andres Rodriguez (1)         10-May-16
Clint Privett (2)         10-May-16
Greg Venbrux & Nuchanart Venbrux - Kraken CycleWorks LLC         8-Jul-16
J. Scott McBride & Chris Sommer - HighRev Lifestyle, Inc. (FA1)         14-Nov-16
Kim Hoss & Frances Clark (2)         7-Aug-17
Marcus Capone & Mike Murphy & Steve Nichols - Eminence3 Holdings, LLC (1)         19-Apr-33
Tim Ross - Eminence3 Holdings, LLC         29-Apr-33
J. Scott McBride & Chris Sommer - HighRev Lifestyle2, Inc. (FA2)         15-Feb-34
Joe Rothchild and Bradley Macpherson - GHM CB, LLC         2-Jun-34
Maclean Coble & David Noffsinger - Ionic Capital Partners, LLC    21-Oct-15 (Release Only)     


Peak Cycle Holdings, LLC         13-Oct-17
     
S. Pineault to Novaturient    30-Oct-17     
     
Eminence3 Holdings, LLC to CBBrier, LLC         20-Nov-17
     
Avante-garde Fitness to AG3    22-Nov-17     
     
DCL Fitness, Inc. to JCM Kentucky Cycle, LLC         15-Dec-17
     
Deep Enterprises         18-Dec-17
     
Williams to LJW74, Inc.    19-Jan-18     
     
RYR Colorado to Locker Fit Lifestyle DTC         2-Feb-18
     
RYR Colorado to Locker Fit Lifestyle LoHi         2-Feb-18

 

  6.

Territory Swap Amendments

 

Franchisee - Entity

  

Territory Swap

Amendment (1)

  

Territory Swap

Amendment (2)

A. David Davis & Jacob Davis & John Krumdieck - MdG Partners, LLC    27-Jul-15     
David Safai    13-Aug-15    3-Dec-15
Doug and Mindy Dolenc - M.D. Dolence Enterprise Inc.    2-Dec-15     
Jeff Wayne - CB Michigan, LLC    17-May-16    27-Jun-17
Marc & Lisa Palmer - Charlotte Cycle, Inc.    UNDATED     

 

  7.

Termination Agreements

 

Franchise
ID
 

Center

Name

  Date
Terminated
  Effective
Date Of
Action
  Type
Of
Action
  Representative
Contact Name
  Address
1
  City   Country   ZiP /
Postal
Code
  State /
Province
  Phone   Mobile   Email

Ter

  Long           Ter   Camill           US       CA   9493       camillellombar


me d1   Beach           mination  

e

Lombardo

          A           067498       do@gmail.com
Termed2   Anaheim Hills (fka Yorba Linda)   12/12/15   12/12/15   Termination   Susann/ Claudia Clifford/ Stieding   100 South Chaparral Court, Suite 140   Anaheim   USA   92808   CA   (760) 262-7337       baron4800@icloud.com; csteiding@verizon.net
Termed3   San Clemente   12/12/15   12/12/15   Termination   Connie (Cons tance) Moisan   302 N.El Camino Real, Suite 106   San Clemente   USA   92672   CA   (949) 310-3292       sanclemente@clubpilatesstudio.com
Termed4   Corona   12/12/15   12/12/15   Termination   Katie/ Cindy Picazo/ Reyes   469 Magnolia Avenue, Suite 106   Corona   USA   92879   CA   619-818- 4020       katiepicazo@aol.com; cpreyes2@gmail.com
Termed5   Temecula    12/12/15   12/12/15   Termination   Olivia/ Katie Scira/ Picazo   41789 Nicole Lane, Suite B4   Temecula    USA   92591   CA   (951) 796-8981      

temecula@clubpilatesstudio.com;

katiepicazo@ aol.com

Termed6   Pacific Beach   12/23/2015   12/23/2015   Termination   Jennifer/Brigette Gold/ Guido   5010 Cass Street, Suite H   San Diego   USA   92109    CA   (619) 415-5699    (619)997-9553    pacificbeach@clubpilatesstudio.com
Termed7    La Jolla    12/23/2015    12/23/2015    Termination    Jennifer/Brigette Gold/           USA        CA    (619) 415-5699      

pacificbeach@clubpilatesstudio.com


                    Guido                            
Termed8   Pt Loma   12/23/2015   12/23/2015   Termination  

Jennifer/

Brigette Gold/Guido

          USA       CA  

(619)

415-5699

  pacificbeach@clubpilatess tudio.com
Termed9   Brentwood           Termination   Derek Jones           USA       CA  

(619)

980-2712

  derek.jones@ clubpilates.com
Termed10   Sunnyvale           Termination  

Michael

Fedyna

          USA       CA  

408-

844-4403

   
Termed11   SanRamon            Termination   Min & Ivy Tsao / Liu           USA       CA        
Termed12   Tucson   7/31/2016   7/31/2016   Termination  

Mary

Beardsley

  1702 E Prince #120   Tucson   USA   85719   AZ  

(520)

241-4743

  mary.beardsley@clubpilates.com
Termed13   Torrance   7/31/2016   7/31/2016   Termination  

Liuba

Stephanie Lerro-

Parraway

  24239 Hawthorne Blvd. #104   Torrance   USA   90505   CA   619 5183338   liuba.lerro@clubpilates.com
Termed14   Australia   9/15/2016   9/15/2016   Termination  

Jemima

North

  Level 1, 341-343 Penshurst Street   Willoughby   AUS   2086   NSW    614 31163818    willoughby@clubpiltesstudio.com
Termed15    Woodland Hills   10/31/2016    10/31/2016    Termination    Nikkita Weerasinghe    19720 Ventura Blvd Suite 101/10   Woodland Hills   USA   91364    CA  

818-

207-2857

  woodlandhills @clubpilates.com


                       

2

                   
Termed16   Agoura Hills/Tarzana   10/31/2016   10/31/2016   Termination   Nikkita Weerasinghe       Agoura Hills/Tarzana   USA   CA   818-207-2857   woodlandhills @clubpilates.com
Termed17   Sherman Oaks   10/31/2016   10/31/2016   Termination   Nikkita Weerasinghe       Sherman Oaks   USA   CA   818- 207- 2857   woodlandhills @clubpilates.com
Termed18   Alhambra   4/11/2017   4/11/2017   Termination                            
Termed19   Virginia Highland   1/10/2018   1/10/2018   Termination                            
Termed20   Arrowhead   6/4/2018   6/4/2018   Termination   Jennifer Marrinnan                        
Termed21   Downtown Phoenix   6/4/2018   6/4/2018   Termination   Jennifer Marrinnan                        
Termed22   Glen Mills PA   4/11/2018   4/11/2018   Died, CP bought back licenses                            
Termed23   Allgates PA   4/11/2018   4/11/2018   Died, CP bought back licenses                            
Termed24   King of Prussia PA   4/11/2018   4/11/2018   Died, CP bought back licenses                            
Termed25   Bryn Mawr PA   4/11/2018   4/11/2018  

Died, CP

bought back licenses

                           


d25   

r PA

   8    8    bought back licenses                                      
Termed26   

Newton

Square PA

   4/11/2018    4/11/2018   

Died, CP bought back

licenses

                                            
Termed27   

Woodstock

Farm PA

   4/11/2018     4/11/2018    

Died, CP bought back

licenses

                                            

 

     
Franchisee - Entity    Termination
Agreement
   Termination
Agreement
Amendment

Ted Mueller

   1-Dec-15     

Jill & Carl Isaacs - CMCJ, LLC

   10-Dec-15     

Mark & Denise Davis

   5-Feb-16     

Nigel Brown & Michelle McGlocklin - Drury Lane Ventures, Inc.

   4-May-16     

David Safai

   5-May-16     

Hayley Killam - (DA & 3)

   6-May-16    8-Aug-16

Merle Beeson

   12-May-16     

Houston Ross & Karin Ross

   9-Aug-16     

Jack Cauley & Deanna Cauley - JCD Colorado, LLC

   1-Nov-16     

Liz Ullathorne & Bill Ullathorne - ELU, LLC

   3-Nov-16     

Chris Mullen

   4-Nov-16     

Joseph Amon & Blair Amon & James Yourinson & Rebecca Yourinson - YAE
Corporation (2 Agreements)

   2-Dec-16     

Steven Ruby & Lisa Ruby - Redgem Holdings LLC

   22-Dec-16     

David Conway

   20-Jan-17     

Tim Hughes - DalKor Inc.

   20-Jan-17     


Ekpedme Udoh & Brandon Grier - LGR LIFESTYLE, LLC

   31-Jan-17     

Christie Meyers & Kristofer Meyers - CB Raleigh, LLC

   3-Apr-17     

Doug and Mindy Dolenc - M.D. Dolence Enterprise Inc.

   6-Apr-17     

Clementine Goutal & Andres Rodriguez (2)

   8-May-17     

Wicked Spinning

   18-Oct-17     

Eminence 3 Holdings

   30-Oct-17     

S. & J. Jonietz

   17-Nov-17     

Smith-Emeri

   15-Dec-17     

N. & A. Smith

   22-Feb-18     

 

  8.

Studio AV Modification Agreements

 

Franchisee - Entity

  Studio A/V

Modification

Agreement

Rodney & Jodi Reyes - CB Chandler LLC

  6-Jun-16

Jeff Cohen - JBJ Exton Investments, LLC

  1-Sep-16

Michael D. Olander & Jason P Green - JM Cycle, LLC - Village Meridian

  11-Nov-16

Ken Stuttaford - Seaside Clean Living, Inc.

  23-Dec-16

Bob Franzetta - JMT Fitness Hillcrest, Inc.

  29-Dec-16

Eric Skoloff & Keith Boettiger - Cycle Syndicate, LLC

  25-Jan-17

Cyril Hertz - Sloboda Inc.

  31-Jan-17

Michael D. Olander & Jason P. Green - JM Cycle, LLC - Tanasbourne

  22-Feb-17

Rachel Orlando & Peter Orlando (1) Dev-Pro, LLC

  28-Feb-17

Alan Telford

  3-Mar-17

Michael D. Olander & John G. Janszen - JCM Kentucky Cycle, LLC

  3-Mar-17

Donna Suro & Libbie Crane - LiquiD RVA, LLC

  14-Mar-17

Heather Sommers-Sombado - Heather Sommers, LLC

  10-Apr-17

Kristin Hill & Kelly Allen - K&K Cycling, LLC

  10-Apr-17


Zach Pettus - Alpha Team Holdings, LLC

 

24-Apr-17

Roger Hendren & Grant Hendren & Lucas Henden - RockStrong Texas LLC

 

10-May-17

Marlon & Andrea Byrd - MAGM Fitness, Inc.

 

15-May-17

Chris & Casey Bushey - CB3 LLC

 

30-May-17

Philly Cycle Inc.

 

19-May-17

Irving Chung & Melissa Chung - Fit Endeavors I, LLC

 

12-Jun-17

Paul Schnapp & Anita Schnapp - Schnapp Enterprises, Inc.

 

27-Jul-17

Suzanna Wells, Bryn Wells, Jean Wells and Mark Wells - Ohana Fitness, Inc.

 

7-Sep-17

Greg K. Venbrux and Nuchanart Venbrux - Kraken Cycleworks, LLC

 

11-Sep-17

David Bland - Positive Spin, LLC

 

13-Sep-17


Club Pilates

Franchise Agreements in

Effect Summary - excluding

terminations

 

As of:   06/18/18       Franchisee   Studio Information   Franchisee Personal Information            
    Studio
Name
  State  

Last

Name

  First Name   Street   City   State     Zip   Studio Phone   Franchisee Phone   Franchisee Email   Royalty
Rate
  MFC Rate   Individual
Territory
FA Date
1   Club Pilates Midtown Miami   FL   Maria Gutierrez   Tania Peck   30 NW 34th St #2   Miami   FL   33127   786.509.9831   T: 786.218.3572 M:954.673.1536   Tania.peck@clubpilates.com; Mariaisabel.gutierrez@clubpilates. com   6%   2%   05/16/17
2   Club Pilates Parker   CO   Bosson   Cathy           CO               Cathy.Bosson@clubpilates.com   6%   2%   07/28/17
3   Club Pilates Morena   CA   Clements   Chris   4901 Morena Blvd. Suite 210   San Diego   CA   92117   858.914.1459   C: 619-203-8538   chris.clements@clubpilates.com   6%   2%   01/01/12
4   Club Pilates Liberty Station   CA   Clements   Chris   2750 Dewey Rd., Ste 102   San Diego   CA   92106   619.541.8877   C: 619-203-8538     chris.clements@clubpilates.com   6%   2%   01/01/12

 

Schedule 9.27


5   Club Pilates La Jolla   CA   Clements   Chris           CA           C: 619-203-8538   chris.clements@clubpilates.com   6%   2%   01/01/12
6   Club Pilates Eastlake   CA   Davies/Hays   Carolyn/Dave   861 Harold Place, Suite 305   Chula Vista   CA   91914   619-392-2572   Carolyn (619) 249-3037; Dave (858) 220-3676   dave.hayes@clubpilates.com; carolyn.davies@clubpilates.com   4%   2%   11/16/12
7   Club Pilates Mira Mesa   CA   Davies/Hays   Carolyn/Dave   9460 Mira Mesa Blvd, Unit P   San Diego   CA   92126   858-254-3326   Carolyn (619) 249-3037; Dave (858) 220-3676   dave.hayes@clubpilates.com; carolyn.davies@clubpilates.com   6%   2%   11/16/12
8   Club Pilates Mission Valley   CA   Mann   Katie   6690 Mission Gorge Road   San Diego   CA   92120   619-786-2300   (619)569-4421 (Tavis 310-303-9586)   katie.mann@clubpilates.com   6%   2%   12/18/12
9   Club Pilates Novi   MI   Cronin   Kristen   39799 Grand River Avenue   Novi   MI   48375   248-410-7700   (248) 410-4259   kristen.cronin@clubpilates.com   6%   2%   02/12/13
10   Club Pilates Encinitas   CA   Dumaw Whitman   Arielle   555 2nd St. Suite 2   Encinitas   CA   92024   760-529-6706   (858) 405-3177   arielle.whitman@clubpilates.com     6%   2%   05/22/13

 

Schedule 9.27


11   Club Pilates San Marcos   CA   Dumaw Whitman   Arielle   904 W San Marcos Blvd, Suite 5   San Marcos   CA   92078   760-201-3070   (858) 405-3177   arielle.whitman@clubpilates.com   6%   2%   05/22/13
12   Club Pilates Carlsbad   CA   Dumaw Whitman   Arielle   1820 Marron Road, Suite 100   Carlsbad   CA   92008   760-201-3374   (858) 405-3177   arielle.whitman@clubpilates.com   6%   2%   05/22/13
13   Club Pilates North Park   CA   Mann   Katie   3959 30th Street, Suite 101   San Diego   CA   92104   619-677-1500   (619) 569-4421   katie.mann@clubpilates.com   6%   2%   12/06/13
14   Club Pilates Mequon   WI   Sinnen   Megan   6077 W. Mequon Rd   Mequon   WI   53092   414-939-3644   (414) 315-5765   megan.sinnen@clubpilates.com   6%   2%   02/03/14
15   Club Pilates Costa Mesa   CA   Borga   Brittany   1525 Mesa Verde Dr. E.   Costa Mesa   CA   92626   949-791-7184   (412) 651-1970   brittany.borga@clubpilates.com   6%   2%   02/07/14
16   Club Pilates Manhattan Beach   CA   Suder   Chris   903 N. Sepulveda Blvd.   Manhattan Beach   CA   90266   310-921-8004   (760) 908-9257   chris.suder@clubpilates.com   6%   2%   03/06/14

 

Schedule 9.27


17   Club Pilates Cherry Creek   CO   Busse   Mary   3000 E. 3rd Ave, Suite 20 & 21   Denver   CO   80206   720-361-9995  

Mary

(760) 801-9416

  mary.busse@clubpilates.com   6%   2%   03/31/14
18   Club Pilates Abacoa   FL   Gomez   Amanda   1203 Town Center Drive, Unit 107   Jupiter   FL   33458   561-449-8161   954.650.6151   amanda.gomez@clubpilates.com   6%   2%   09/24/14
19   Club Pilates Midtown Sacramento   CA   Kendall/Holden   Linda/Rebecca   1330 21st Street Ste 101   Sacramento   CA   95811   916-347-0304  

Linda

916- 205-1470 Rebecca (916)990-4224

  linda.kendall@clubpilates.com   6%   2%   10/01/14
20   Club Pilates Memorial   TX   Pontone/Hunt   Scott/Elisa/Nate   14129 Memorial Drive   Houston   TX   77079   281.661.3114  

Nate

(858) 212-6787

  elisa.pontone@clubpilates.com; nate.hunt@clubpilates.com   6%   2%   10/16/14
21   Club Pilates Lakeway   TX   Martinez   Susan   2951 Ranch Road 620 S   Lakeway   TX   78738   575.937.0479   (575) 937-0479   susan.martinez@clubpilates.com   6%   2%   02/22/15
22   Club Pilates Glendale   CA   Bailey   Rebecca   1354 E Colorado St, Suite A   Glendale   CA   91205   818.724.9977   (323) 898- 8244   rebecca.bailey@clubpilates.com   6%   2%   02/27/15

 

Schedule 9.27


23   Club Pilates La Canada/ Flintridge   CA   Bailey   Rebecca           CA           (323) 898-8244   rebecca.bailey@clubpilates.com   6%   2%   02/27/15
24   Club Pilates Pasadena   CA   Bailey   Rebecca           CA           (323) 898-8244   rebecca.bailey@clubpilates.com   6%   2%   02/27/15
25   Club Pilates Cahaba Heights   AL   Booker   Lindsay   3169 Green Valley Road   Birmingham   AL   35243   205.777.7976   (205) 451-2482   lindsay.booker@clubpilates.com   6%   2%   03/03/15
26   Club Pilates RSM   CA   Hammett   Emily   21612 Plano Trabuco Road, Suite A   Trabuco Canyon   CA   92679   949.534.2023   Emily (626) 233-9220   emily.hammett@clubpilates.com   6%   2%   03/04/15
27   Club Pilates Villa Park   CA   Hammett   Emily   17767 Santiago Blvd., Suite 610   Villa Park   CA   92861   714.202.6404   Emily (626) 233-9220   emily.hammett@clubpilates.com   6%   2%   03/04/15
28   Club Pilates Tustin   CA   Hammett   Emily   15080 Kensington Park Dr, Suite G300   Tustin   CA   92782   949.529.0704   Emily (626) 233-9220   emily.hammett@clubpilates.com   6%   2%   03/04/15

 

Schedule 9.27


29   Club Pilates Beverly Hills   MI   Cronin   Kristen   31255 Southfield Road   Beverly Hills   MI   48025   248.878.9905   (248) 410-4259   kristen.cronin@clubpilates.com   6%   2%   04/17/15
30   Club Pilates San Carlos   CA   Lance   Renata and Sean   50 El Camino Real, #50   San Carlos   CA   94070   650-722-4710  

Renata

(650) 759-3283

  renata.lance@clubpilates.com; sean.lance@clubpilates.com   6%   2%   06/01/15
31   Club Pilates Granada Hills   CA   Bereny   Robert   18037 Chatsworth Street   Granada Hills   CA   91344   (818) 210-3288   (818) 900-2670   robert.bereny@clubpilates.com   6%   2%   06/10/15
32   Club Pilates Westlake Village   CA   Bereny   Robert   2820 Townsgate Rd #107   Thousand Oaks   CA   91361   805.556.7070   (818) 900-2670   robert.bereny@clubpilates.com   6%   2%   06/10/15
33   Club Pilates Woodland Hills (Bereny)   CA   Bereny   Robert           CA           (818) 900-2670   robert.bereny@clubpilates.com   6%   2%   06/10/15
34   Club Pilates South Overland Park   KS   O’Dell   Andrea   6601 W 119th St   Overland Park   KS   66209   913.562.9570   (913) 669-5936   andrea.odell@clubpilates.com   6%   2%   06/12/15
35   Club Pilates Bellevue   WA   Adams   Nikki   143 106th Ave NE   Bellevue   WA   98004   253-709-1446   (253) 709-1446   nikki.adams@clubpilates.com; paul.adams@clubpilates.com   6%   2%   06/21/15

 

Schedule 9.27


36   Club Pilates Kent   WA   Adams   Nikki   124 4th Ave South   Kent   WA   98032   253.709.1446   (253) 709-1446   nikki.adams@clubpilates.com; paul.adams@clubpilates.com   6%   2%   06/21/15
37   Club Pilates Arrowhead   AZ   Marrinan   Jennifer   20329 North 59th Avenue Ste A1   Glendale   AZ   85308   480.372.8100   (619) 200-2992   jennifer.marrinan@clubpilates.com   6%   2%   06/23/15
38   Club Pilates Fullerton   CA   Suder   Chris   1313 S Harbor Blvd   Fullerton   CA   92832   714.519.3841   (760) 908-9257   chris.suder@clubpilates.com   6%   2%   06/24/15
39   Club Pilates Brea   CA   Suder   Chris   3357 E. Imperial Hwy   Brea   CA   92823   657-315-9080   (760) 908-9257   chris.suder@clubpilates.com   6%   2%   06/24/15
40   Club Pilates Katy   TX   Pontone/Hunt   Scott/Elisa/Nate   10705 Spring Green Blvd., #200,   Katy   TX   77494   832.913.1847  

Nate

(858) 212-6787

  elisa.pontone@clubpilates.com; nate.hunt@clubpilates.com   6%   2%   06/30/15
41   Club Pilates Houston -The Heights   TX   Pontone/Hunt   Scott/Elisa/Nate           TX          

Nate

(858) 212-6787

  elisa.pontone@clubpilates.com; nate.hunt@clubpilates.com   6%   2%   06/30/15

 

Schedule 9.27


42   Club Pilates Spring Valley   NV   Rechester   Victoria/Emil   8665 W. Flamingo Rd., Suite 118   Las Vegas   NV   89147   702-608-1396  

Victoria

(323) 899-7083

  emil.rechester@clubpilates.com   6%   2%   07/01/15
43   Club Pilates Highlands Ranch West   CO   Busse   Mary   2229 Wildcat Reserve Parkway   Highlands Ranch   CO   80129   720.557.9606  

Mary

(760) 801-9416

  mary.busse@clubpilates.com   6%   2%   07/10/15
44   Club Pilates Belmar   CO   Easterly   Kevin   437 S Wadsworth Blvd, Suite F   Lakewood   CO   80226   720-789-1011   760.845.5686   kevin.easterly@clubpilates.com   6%   2%   07/13/15
45   Club Pilates Ken Caryl   CO   Easterly   Kevin   11757 West Ken Caryl Avenue, Suite G   Littleton   CO   80127   720.579.7285   760.845.5686   kevin.easterly@clubpilates.com   6%   2%   07/13/15
46   Club Pilates Edgewat er   CO   Carlson   Jennifer   1931-V Sheridan Blvd.   Edgewater   CO   80214   720.446.9777   (303) 949-5466   jennifer.carlson@clubpilates.com   6%   2%   07/22/15
47   Club Pilates Santee   CA   Mann   Katie   225 Town Center Parkway, Suite C   Santee   CA   92071   619-485-1800   (619) 569-4421   katie.mann@clubpilates.com   6%   2%   08/07/15

 

Schedule 9.27


48   Club Pilates Longmont   CO   Hendricks   Joe   700 Ken Pratt Boulevard   Longmont   CO   80501   720.442.8385   Joe 303- 513-4498 Kelly 720-355-1954   kelly.hendricks@clubpilates.com   6%   2%   08/17/15
49   Club Pilates Bozeman   MT   Thomison   Ashlie   1707 W. Oak Street, Suite C   Bozeman   MT   59715   406.404.1922   406-595-0404   Ashlie.thomison@clubpilates.com   6%   2%   09/30/15
50   Club Pilates Mission Viejo   CA   Watson / Lombardi   Keely / Ed   25800 Jeronimo Road Ste 404   Mission Viejo   CA   92691   949-446-8243   Keely (619) 261-5898   keely.watson@clubpilates.com; ed.lombardi@clubpilates.com   6%   2%   10/09/15
51   Club Pilates Severna Park   MD   Cutchall   Laura   454 B Governor Ritchie Highway   Severna Park   MD   21146   410.648.4400   (858) 603-3360   Laura.cutchall@clubpilates.com   4%   2%   10/20/15
52   Club Pilates Annapolis   MD   Cutchall   Laura   2661 Riva Road Ste 625   Annapolis   MD   21401   240.324.7474   (858) 603-3360   Laura.cutchall@clubpilates.com   6%   2%   10/20/15
53   Club Pilates Huntingt on Beach   CA   Borga   Brittany   7012 #103 Edinger Ave   Huntington Beach   CA   92647   657.464.4696   (412) 651-1970   brittany.borga@clubpilates.com   6%   2%   10/23/15
54   Club Pilates Fremont   CA   Peng   Johnny & Ronnie   44047 Osgood Rd. Ste. 220   Fremont   CA   94539       510.366.2127   johnny.peng@clubpilates.com; ronnie.peng@clubpilates.com   6%   2%   11/20/15

 

Schedule 9.27


55   Club Pilates Campbell   CA   Venkatesan   Hema & Anathan   10 E Hamilton Ste # 300   Campbell   CA   95008   408.412.0130   208.863.0943   hema.venkatesan@clubpilates.com; venkat.ananthan@clubpilates.com   6%   2%   11/20/15
56   Club Pilates Downtown Phoenix   AZ   Marrinan   Jennifer   111 W. Monroe #128   Phoenix   AZ   85003   480.372.8100   (619) 200-2992   jennifer.marrinan@clubpilates.com   6%   2%   11/22/15
57   Club Pilates Arbor Lakes   MN   Ras   Brent   11660 Fountains Dr   Maple Grove   MN   55369   763.219.4880   612.385.0588   brent.ras@clubpilates.com; kate.ras@clubpilates.com   6%   2%   11/23/15
58   Club Pilates Camarillo   CA   Tooley   Sheri   2360-F Las Posas Road   Camarillo   CA   93010   (805) 261-1255   818.384.3035   sheri.tooley@clubpilates.com; john.tooley@clubpilates.com   6%   2%   11/23/15
59   Club Pilates Chesterfield   MO   Schade   Andrea   122 Hilltown Village Center   Chesterfield   MO   63017   636.556.0526   7757719605   andrea@clubpilates.com   6%   2%   11/26/15
60   Club Pilates Brentwood STL   MO   Schade   Andrea   2535 S. Brentwood Blvd   St Louis   MO   63144   314.441.5 855   7757719605   andrea@clubpilates.com   6%   2%   11/26/15
61   Club Pilates Klein   TX   Fichaud / Bryan   Chris / Susan   7316 Louetta Road #B302   Spring   TX   77379   (281) 607-2485  

C: 713-254- 0213

S: 713.882.88 73

  chris.fichaud@clubpilates.com; susan.bryan@clubpilates.com   6%   2%   12/03/15

 

Schedule 9.27


62   Club Pilates Wyckoff   NJ   Sapka   Allison / Chris   525 Cedar Hill Ave   Wyckoff   NJ   07481   201.447.2500  

C: 201.916.33 59

A: 973.951.20 74

  allison.sapka@clubpilates.com; chris.sapka@clubpilates.com   6%   2%   12/21/15
63   Club Pilates Progress Ridge   OR   Wynkoop   Dan / Debra   12305 SW Horizon Blvd Suite J207   Beaverton   OR   97007   (503) 605-1453   503-720-9556   dan.wynkoop@clubpilates.com; debra.wynkoop@clubpilates.com   6%   2%   12/22/15
64   Club Pilates Echo Park   CA   Watson / Lombardi   Keely / Ed   1720 West Sunset Blvd   Echo Park   CA   90026   323-505-4355  

Keely

(619) 261-5898

  keely.watson@clubpilates.com; ed.lombardi@clubpilates.com   6%   2%   12/31/15
65   Club Pilates NoHo   CA   Ovakimian   Sarkis / Esther   5077 Lankershim Boulevard Suite F   North Holly wood   CA   91601   818-210 3422   S: 818.675.50 61   sarkis.ovakimian@clubpilates.com; ester.plavdjian@clubpilates.com   6%   2%   01/22/16
66   Club Pilates Brookhaven   GA   Stennett   Kellen   5001 Peachtree Blvd Suite 630   Chamblee   GA   30341   (678) 996-1988  

K: 404.456.4110

M: 609.605.4315

  kellen.stennett@clubpilates.com; matt.omiatek@clubpilates.com   6%   2%   02/10/16

 

Schedule 9.27


67   Club Pilates Pleasant on   CA   Shiraki   Robert / Jessica   6766 Bernal Ave. Suite 530   Pleasonton   CA   94566   925.255.0880   R:650.766.5900   robert.shiraki@clubpilates.com; jessica.shiraki@clubpilates.com   6%   2%   02/15/16
68   Club Pilates Lafayette   CA   Darrel Swift   Janani (Jan) Siva   3506 Mt. Diablo Blvd., Suite E   Lafayette,   CA   94549   925.900.5788   520.289.0439   jan.siva@clubpilates.com; darrel.swift@clubpilates.com   6%   2%   02/23/16
69   Club Pilates San Clemente   CA   Hammett   Emily   802 Avenida Talega Ste 104   San Clemente   CA   92673      

Emily

(626)233-9220

  emily.hammett@clubpilates.com   6%   2%   02/23/16
70   Club Pilates Brickell   FL   Maria Gutierrez   Tania Peck   117 SW 10th Ste #103   Miami   FL   33130   786.509.9831  

T:786.218.3572

M:954.673.1536

  Tania.peck@clubpilates.com; Mariaisabel.gutierrez@clubpilates.com   6%   2%   02/26/16
71   Club Pilates Chino Hills   CA   Truong   Amy / Anthony   13920 City Center Drive Suite 4010   Chino Hills   CA   91709   909.529.1041   949.278.7719   amy.truong@clubpilates.com; tong.truong@clubpilates.com   6%   2%   02/26/16
72   Club Pilates Saratoga   CA   Ko/Wu   Ken/Jessie   14410 Big Basin Way, STE E   Saratoga   CA   95070   669.256.5200   k:408.641.1511   ken.ko@clubpilates.com; jessie.wu@clubpilates.com   6%   2%   03/15/16
73   Club Pilates Symmes Township   OH   Pallatroni   Bob   12088 Montgomery Road   Cincinnati   OH   45249   513.766.9008   513.225.4475   bob.pallatroni@clubpilates.com   6%   2%   03/17/16

 

Schedule 9.27


74   Club Pilates East Cobb   GA   Little   Stephanie   2960 Shallowford Rd #200   Marietta   GA   30066   678.647.6220   404.245.2691   stephanie.little@clubpilates.com   6%   2%   03/18/16
75   Club Pilates Emeryville   CA   Miller   Jerry & Melissa           CA           M:510.919.4484   melissa.miller@clubpilates.com ; jerry.miller@clubpilates.com   6%   2%   03/18/16
76   Club Pilates Waterford Lakes   FL   Johnson   Heath   875 North Alafaya Trail   Orlando   FL   32828   407.204.9501   508.725.2108   heath.johnson@clubpilates.com   6%   2%   03/21/16
77   Club Pilates Short Hills   NJ   Collins   Caroline & Dennis   770 Morris Turnpike   Short Hills   NJ   07078   973.710.4755   C:917.796.9618   caroline.collins@clubpilates.com; dennis.collins@clubpilates.com   6%   2%   03/23/16
78   Club Pilates Lincoln Park   IL   Phelps   Abby   2047 N. Clybourn Ave   Chicago   IL   60614   312.734.1069   312.399.3256   abby.phelps@clubpilates.com   6%   2%   03/29/16
79   Club Pilates Carmel   IN   Thorpe   Ralph / Julie   2482 E. 146th Street   Carmel   IN   46033   317)565-4828   317.696.4600   ralph.thorpe@clubpilates.com   6%   2%   03/30/16
80   Club Pilates Westfield   NJ   Dimitrios/Helen/ Arnold/ Amy   Angelis / DeGarcia   225 Broad Ave   Westfield   NJ   07090   908.233.0950  

D:914.772.9973

A:917.921.2595

  dimitrios.angelis@clubpilates.com; helen.angelis@clubpilates.com; arnold.degarcia@clubpilates.com; amy.degarcia@clubpilates.com   6%   2%   03/31/16

 

Schedule 9.27


81   Club Pilates Chandler   AZ   Guzick   Bill / Jennifer   4085 South Gilbert Road, Shops B - Suite 5   Chandler   AZ   85249   480.771.4459  

J:480.695.7116

Bill:480.826.4181

  jennifer.guzick@clubpilates.com; bill.guzick@clubpilates.com   6%   2%   03/31/16
82   Club Pilates Sunnyvale   CA   Gonzalez   Lewis   562 E. El Camino Real   Sunnyvale   CA   94087   408.675.9071   650.776.7813   lewis.gonzalez@clubpilates.com   6%   2%   04/08/16
83   Club Pilates Frisco   TX   Buck   Chris and Nathalie   6959 Lebanon Road, Ste 121   Frisco   TX   75034   469.701.1252   N:214.770.5525   nathalie.buck@clubpilates.com; chris.buck@clubpilates.com   6%   2%   04/11/16
84   Club Pilates East Memphis   TN   Barnes   Tara & Philip   6300 Poplar Ave Ste 103   Memphis   TN   38119   901.646.5054   T:901.628.8004   tara.barnes@clubpilates.com; phillip.barnes@clubpilates.com   6%   2%   04/15/16
85   Club Pilates Winter Park   FL   Goldman   Christine   1222 N. Orange Ave. Ste B   Winter Park   FL   32789   407.960.7042   321.231.5262   christine.goldman@clubpilates.com   6%   2%   04/15/16
86   Club Pilates Monrovia   CA   Park   Bora   1169 Huntington Drive   Duarte   CA   91010   626.507.5522   213.840.2203   bora.park@clubpilates.com   6%   2%   04/15/16
87   Club Pilates Wauwatosa   WI   Tsuchiyama   Robert & Beth   6931 W North Ave   Wauwatosa   WI   53213       R:404.307.5634   robert.tsuchiyama@clubpilates.com; beth.tsuchiyama@clubpilates.com   6%   2%   05/11/16

 

Schedule 9.27


88   Club Pilates Ashburn   VA   Ask   Ryan   43670 Greenway Corporate Drive   Ashburn   VA   20147   703.828.0779   607.331.4909   ryan.ask@clubpilates.com   6%   2%   05/13/16
89   Club Pilates Scottsdale Promenade   AZ   Gatzemeier   Don & Emma   16447 N. Scottsdale Rd. Suite 119   Scottsdale   AZ   85254   480.447.4044   602.663.2049   don.gatzemeier@clubpilates.com   6%   2%   05/16/16
90   Club Pilates Gilbert   AZ   Anderson   Doug & Maggie   3131 S. Market St, Suite 103   Gilbert   AZ   85295   480.999.3825   D:480.388.1852    doug.anderson@clubpilates.com; maggie.anderson@clubpilates.com   6%   2%   05/18/16
91   Club Pilates Ramsey   NJ   Mokray   Joan   875 Route 17 South, Ramsey Center   Ramsey   NJ   07446   551.264.9222   201.755.5748   joan.mokray@clubpilates.com   6%   2%   05/19/16
92   Club Pilates North San Jose   CA   Fizzah Raza   Ronnie Sarwar   1708 Oakland Road, Suite 200   San Jose   CA   95131   408.359.4484   615.364.1690   ronnie.sarwar@clubpilates.com   6%   2%   05/20/16
93   Club Pilates SFO-Mission Bay   CA   Srivastava   Amit & Seema           CA           408.202.9619   seema.srivastava@clubpilates.com;  amit.srivastava@clubpilates.com   6%   2%   05/20/16

 

Schedule 9.27


94   Club Pilates St. Petersburg   FL   Griffin   Jim   111 2nd Avenue NE #215   St. Petersburg   FL   33701       224.436.0647   jim.griffin@clubpilates.com; catherine.griffin@clubpilates.com    6%   2%   05/31/16
95   Club Pilates South Tampa   FL   Griffin   Jim   938 South Howard Ave   Tampa   FL   33606   813-607-2990   224.436.0647   jim.griffin@clubpilates.com; catherine.griffin@clubpilates.com   6%   2%   05/31/16
96   Club Pilates Emerson   NJ   Warner   Alison   437 Old Hook Road Unit #5   Emerson   NJ   07630   201.949.7222   551.427.7806   alison.warner@clubpilates.com   6%   2%   05/31/16
97   Club Pilates South Providence   NC   Harris   Doug   10822 Providence Rd Ste 800   Charlotte   NC   28277       704.491.6717   doug.harris@clubpilates.com; kris.harris@clubpilates.com   6%   2%   06/03/16
98   Club Pilates Carrollwood   FL   Philyaw   Nathan   13158 N Dale Mabry Hwy   Tampa   FL   33618   813.773.3880   904.635.0298   nathan.philyaw@clubpilates.com   6%   2%   06/03/16
99   Club Pilates Roseville   CA   Lance   Renata and Sean   1921 Douglas Boulevard, Suite 104   Roseville   CA   95661   916.318.9908  

Renata

(650) 759-3283

  renata.lance@clubpilates.com ; sean.lance@clubpilates.com   6%   2%   06/15/16
100   Club Pilates Newcastle   WA   Adams   Nikki   132nd Place SE and Newcastle Connector Road   Newcastle   WA           (253) 709-1446   nikki.adams@clubpilates.com; paul.adams@clubpilates.com   6%   2%   06/16/16

 

Schedule 9.27


101   Club Pilates Hoboken   NJ   Horvath   Emese   1400 Hudson   Hoboken   NJ   0       770.910.2934   emese.horvath@clubpilates.com   6%   2%   06/20/16
102   Club Pilates Washtenaw   MI   Vogel   Nick   3372 Washtenaw Ave   Ann Arbor   MI   48104   734.887.1938   989.992.8422   nick.vogel@clubpilates.com   6%   2%   06/27/16
103   Club Pilates Winter Garden   FL   Wilson   Chris   13848 Tilden RD Ste 130   Winter Garden   FL   34787   407-890-5344   732.803.0226   chris.wilson@clubpilates.com   6%   2%   06/28/16
104   Club Pilates Loehmann’s Plaza   CA   Holmes   Brian   2529 Fair Oaks Blvd   Sacramento   CA   95825   916.400.9225   B:661.332.2233   brian.holmes@clubpilates.com; adrian.holmes@clubpilates.com   6%   2%   07/01/16
105   Club Pilates Katy #2   TX   Heslop   Pam           TX           281.497.4557   pam.heslop@clubpilates.com   6%   2%   07/05/16
106   Club Pilates Scarsdale   NY   Rhyu   Heather   365 Central Park Avenue   Scarsdale   NY   10583   914.449.4411   310.972.8786   heather.rhyu@clubpilates.com   6%   2%   07/14/16
107   Club Pilates Castle Rock   CO   Borrego   George & Julie   6360 Promenade Parkway Unit 120   Castle Rock   CO   80108   720.575.7185   G:720.278.3084   george.borrego@clubpilates.com; julie.borrego@clubpilates.com   6%   2%   07/19/16

 

Schedule 9.27


108   Club Pilates Temecula   CA   Teranchi   Shahin   33175 Temecula Pkwy Ste C   Temecula   CA   92562   951.396.7000   951.237.2379   shahin.tehranchi@clubpilates.com; zohal.tehranchi@clubpilates.com   6%   2%   07/22/16
109   Club Pilates Scottsdale Shea   AZ   Jacobs   Keith   9301 E. Shea Unit 104   Scottsdale   AZ   85260   480.771.3774   K: 910-274-8201   keith.jacobs@clubpilates.com; yvette.jacobs@clubpilates.com   6%   2%   07/29/16
110   Club Pilates Buckhead   GA   Stennett   Kellen   2391 Peachtree Rd, NE Suite B3AB   Atlanta   GA   30305   470.885.0623  

K: 404.456.4110

M: 609.605.4315

  kellen.stennett@clubpilates.com; matt.omiatek@clubpilates.com   6%   2%   07/30/16
111   Club Pilates Lakewood   CA   Park   Bora           CA           213.840.2203   bora.park@clubpilates.com   6%   2%   08/10/16
112   Club Pilates Cerritos   CA   Park   Bora           CA           213.840.2203   bora.park@clubpilates.com   6%   2%   08/10/16
113   Club Pilates Sandy   UT   Sanger   Travis/Heidi   2079 East 9400 South   Sandy   UT   84093   385.800.3220   701.866.5036   travis.sanger@clubpilates.com; heidi.sanger@clubpilates.com   6%   2%   08/11/16
114   Club Pilates Ventura   CA   Bloore   Ken & Allison   4020 E. Main St. #B- 1-2   Ventura   CA   93003   805.856.4424   K: 818.917.8114   ken.bloore@clubpilates.com; allison.drury@clubpilates.com   6%   2%   08/17/16
115   Club Pilates Simi Valley   CA   Bloore   Ken & Allison   2955 Cochran St #B201   Simi Valley   CA   93065   805.261.1444   K: 818.917.8114   ken.bloore@clubpilates.com; allison.drury@clubpilates.com   6%   2%   08/17/16

 

Schedule 9.27


116   Club Pilates Chandan Place   IL   Schlichting   Steve & Robin   3065 N. Perryville Rd., Ste #147   Rockford   IL   61114   815.860.0710   S: 815.985.1337   steve.schlichting@clubpilates.com; robin.schlichting@clubpilates.com   6%   2%   08/23/16
117   Club Pilates Alpharetta   GA   Worley   Mark   3005 Old Alabama Rd   Alpharetta   GA   30022   678.919.8733   678.488.0785   mark.worley@clubpilates.com   6%   2%   08/23/16
118   Club Pilates Framingham   MA   Miller   Mike & Tammy   25 Prospect St   Framingham   MA   01701   774.999.0209   T: 860.817.8995   tammy.miller@clubpilates.com; mike.rizzo@clubpilates.com   6%   2%   08/25/16
119   Club Pilates North Raleigh   NC   Schuck/Smith/Ruggieri   David / Jon / Joe   9400 Falls of Neuse Rd   Raleigh   NC   27615   919.670.3077   D: 336.404.7871   david.schuck@clubpilates.com; jon.smith@clubpilates.com; joe.ruggieri@clubpilates.com   6%   2%   08/25/16
120   Club Pilates Jax Beach   FL   Graham   Rick & Dawn   14035 Beach Blvd. Suite G   Jacksonville   FL       904.289.8300   R: 210.559.1732   rick.graham@clubpilates.com; dawn.graham@clubpilates.com   6%   2%   08/27/16
121   Club Pilates Culver City   CA   Stromblad   Katya   10732 Jefferson Blvd.   Culver City   CA   90230   310.424.5290   818.257.3047   katya.stromblad@clubpilates.com   6%   2%   08/29/16
122   Club Pilates Highland Village   TX   Martin   Todd & Debi   2540 Justin Rd. Suite 177   Highl and Village   TX   75077   972.597.4275   D: 972.977.7277   debi.martin@clubpilates.com; todd.martin@clubpilates.com   6%   2%   09/16/16

 

Schedule 9.27


123   Club Pilates Mooresville   NC   Pennypacker   John   146 Mooresville Commons Way Unit 25   Mooresville   NC   28117   980.260.0000   980.240.1792   john.pennypacker@clubpilates.co m   6%   2%   09/20/16
124   Club Pilates Englewood   NJ   Untener   Scott   19 W. Palisade Ave.   Englewood   NJ   07631   201.568.1700   914.261.1219   scott.untener@clubpilates.com   6%   2%   09/21/16
125   Club Pilates Indian Lake   TN   Fielder   Tom   217 Indian Lake Blvd. Ste. 1002   Hendersonville   TN   37075   615.270.2470   615.579.3070   tom.fielder@clubpilates.com   6%   2%   09/22/16
126   Club Pilates South Naperville   IL   Smith   Eric   2695 Forgue Drive, #109   Naperville   IL   60564   331.401.5788   630.362.9593   eric.smith@clubpilates.com   6%   2%   09/23/16
127   Club Pilates Flower Mound   TX   Springer   Bobby   1221 Flower Mound Rd Ste 320   Flower Mound   TX   75028   817.668.0108   615.268.9432   bobby.springer@clubpilates.com / sonya.springer@clubpilates.com   6%   2%   09/27/16
128   Club Pilates Savage   MN   Bounds   Steve & Angela   14010 Highway 13 South   Minneapolis   MN   55378   952.777.5905   S: 303.883.4605   steve.bounds@clubpilates.com; angela.bounds@clubpilates.com   6%   2%   09/29/16

 

Schedule 9.27


129   Club Pilates Sugar Land   TX   Gowens   Bret   3157 Highway 6   Sugar Land   TX   77478   281.369.4977   832.659.4501   bret.gowens@clubpilates.com   6%   2%   09/29/16
130   Club Pilates Pembroke Pines   FL   Elgarresta / Harper   Ed / Christina   14954 Pines Blvd   Pembrooke Pines   FL   33207   954-500-2582   E: 305.606.6198   ed.elgarresta@clubpilates.com; christina.elgarresta@clubpilates.com   6%   2%   10/07/16
131   Club Pilates Tempe   AZ   Guzick   Bill /Jennifer   1825 East Guadalupe Ste F-102   Tempe   AZ   85283   480.566.0335  

J: 480.695.7116

Bill: 480.826.4181

  jennifer.guzick@clubpilates.com; bill.guzick@clubpilates.com   6%   2%   10/18/16
132   Club Pilates Woodbury   MN   Kodet   David   9000 Hudson Rd #602   Woodbury   MN   55125   651-323-1134   612.877.0764   dave.kodet@clubpilates.com   6%   2%   10/19/16
133   Club Pilates Henderson   NV   Rechester   Victoria /Emil   10525 S. Eastern Ave. Ste 140   Henderson   NV   89052   702.907.2758  

Victoria

(323) 899-7083

  emil.rechester@clubpilates.com   6%   2%   10/20/16
134   Club Pilates McKinney   TX   Mehmood   Jodi & Shahid   9245 Virginia Pkwy, Suite #200   McKinney   TX   75071   972-838-5558   J: 682.553.8173   jodi.mehmood@clubpilates.com   6%   2%   10/24/16
135   Club Pilates New Hyde Park   NY   Lo   David   1632 Marcus Ave.   New Hyde Park   NY   11040   516-654-6938  

D: 646.379.0824

M: 516.527.4712

  david.lo@clubpilates.com; michelle.lo@clubpilates.com   6%   2%   10/26/16

 

Schedule 9.27


136   Club Pilates Glen Ellyn   IL   Smith   Allison & Aaron   369 Roosevelt Rd   Glen Elyn   IL   0       630.337.6350   allison.smith@clubpilates.com; aaron.smith@clubpilates.com   6%   2%   10/27/16
137   Club Pilates Elk Grove   CA   Holmes   Brian   8235 Laguna Blvd.#120   Elk Grove   CA   95758   916.936.2582   B: 661.332.2233   brian.holmes@clubpilates.com; adrian.holmes@clubpilates.com   6%   2%   11/02/16
138   Club Pilates San Pedro   CA   Thomas /Davis   Joni/Tiffany   936 N. Western Ave   San Pedro   CA   90732   310-844-186 0   T: 773.320.0921   joni.thomas@clubpilates.com; tiffany.davis@clubpilates.com   6%   2%   11/02/16
139   Club Pilates Salisbury   MD   Horan   Ed   1305 S. Salisbury Blvd. Unit 1   Salisbury   MD   21801   410.339.1699   845.764.1943   ed.horan@clubpilates.com   6%   2%   11/13/16
140   Club Pilates Madison #1   WI   Baldwin   Nathan & Erica   390 S Grand Ave   Sun Prairie   WI           N: 608.609.5152   nathan.baldwin@clubpilates.com; erika.baldwin@clubpilates.com   6%   2%   11/18/16
141   Club Pilates Houston (Canga)   TX   Canga   Ivan           TX           832.868.5973   ivan.canga@clubpilates.com   6%   2%   11/18/16
142   Club Pilates Vancouver   CAN   Oussov   Ilia/Serguei           CAN           604.671.0657   ilia.oussov@clubpilates.com; serguei.oussov@clubpilates.com   6%   2%   11/18/16

 

Schedule 9.27


143   Club Pilates Atascocit a   TX   Wells   Daniela & David   16430 W. Lake Houston Pkwy., Suite 300-   Houston   TX   77044   832.779.2622   832.923.0228   david.wells@clubpilates.com; daniela.wells@clubpilates.com   6%   2%   11/18/16
144   Club Pilates Sparks   NV   Beardsley   Allison   2453 Wingfield Hills Road, Suite 130   Sparks   NV   89436   (775)737-3322   (775)-737-3322   allison@clubpilates.com   6%   2%   11/21/16
145   Club Pilates Lehi   UT  

Edmonds/

Miller

  Mike & Becky/Scott & Karie   1881 W. Traverse Parkway, Ste B   Lehi   UT   84043   385-831-7077   801.707.5630   mike.edmonds@clubpilates.com; scott.miller@clubpilates.com   6%   2%   11/22/16
146   Club Pilates Cedar Park   TX   Hernandez/Lindner   Hector / Molly   5001 183A Toll Road Suite G400   Cedar Park   TX   78613   512.399.5212   512.593.3652   hector.hernandez@clubpilates.com; molly.lindner@clubpilates.com   6%   2%   05/01/17
147   Club Pilates West Caldwell   NJ   Uku   Richard   800 Bloomfield Ave   West Cald well   NJ   7006   973-787-9074   917.670.7396   richard.uku@clubpilates.com   6%   2%   11/23/16
148   Club Pilates Laguna Niguel   CA   Watson/ Lombardi   Keely / Ed   30100 Town Center Drive, Suite B-1   Laguna Niguel   CA   92677   949-257-2292   Keely (619)261-5898   keely.watson@clubpilates.com; ed.lombardi@clubpilates.com   6%   2%   11/30/16

 

Schedule 9.27


149   Club Pilates West Hills   OR   Sander   Scott & Misty   7515 SW Barnes Rd. Ste 102   Portland   OR   97225   971.249.8555   S: 971.998.0279   scott.sander@clubpilates.com; misty.sander@clubpilates.com   6%   2%   12/08/16
150   Club Pilates Plymouth   MN   Ras   Brent   3570 Vicksburg Lane, Suite 400   Plymouth   MN   55447   763-390-7933   612.385.0588   brent.ras@clubpilates.com; kate.ras@clubpilates.com   6%   2%   12/15/16
151   Club Pilates New Braunfels   TX   Becker   Lance & Sara   1935 W State Hwy 46, Suite 104   New Braunfels   TX   78132   830.632.9666   L: 512.787.3703   lance.becker@clubpilates.com; sarah.becker@clubpilates.com   6%   2%   12/16/16
152   Club Pilates Eagle   ID   Le   Hieu & Thy   3130 E. State St. Suite 115   Boise   ID   83616   208-912-0071   208.890.1770   hieu.le@clubpilates.com; thy.vo@clubpilates.com   6%   2%   12/19/16
153   Club Pilates Holly Springs   NC   Schuck/ Smith/R uggieri   David / Jon / Joe   5321 Sunset Lake Rd.   Holly Springs   NC   27540       D: 336.404.7871   david.schuck@clubpilates.com; jon.smith@clubpilates.com; joe.ruggieri@clubpilates.com   6%   2%   12/21/16
154   Club Pilates Boise   ID   Louis   Laura           ID           208.841.0247   laura.louis@clubpilates.com   6%   2%   12/22/16

 

Schedule 9.27


155   Club Pilates La Mesa   CA   Mann   Katie   5907 Severin Drive   La Mesa   CA   91942   858-531-234 8   (619)569-4421   katie.mann@clubpilates.com   6%   2%   12/28/16
156   Club Pilates Rivercha se   AL   Booker   Lindsay   1839 Montgomery Hwy. Suite D   Hoover   AL   35244   205-937-7265   (205)451-2482   lindsay.booker@clubpilates.com   6%   2%   12/30/16
157   Club Pilates Redlands   CA   Teranchi   Shahin   450 Stuart Ave. Suite D-120   Redlands   CA   92374       951.237.2379   shahin.tehranchi@clubpilates.com; zohal.tehranchi@clubpilates.com   6%   2%   12/30/16
158   Club Pilates Matthe ws   NC   Harrington   Julie & Paul   2211 Matthews Township Pkwy, Unit 9   Matthews   NC   28105   (704) 594-5670   J: 847.693.1777   julie.harrington@clubpilates.com   6%   2%   01/06/17
159   Club Pilates Wellingt on   FL   Smith   Joy   10660 Forest Hill Boulevard, Suite 140   Wellington   FL   33414   561-208-1233   561.386.0559   joy.smith@clubpilates.com   6%   2%   01/06/17
160   Club Pilates Del Mar   CA   Jones   Derek   12264 El Camino Real, Suite 201   San Diego   CA   92130   858-531-2348   619-980-2712   derek.jones@clubpilates.com   6%   2%   01/16/17

 

Schedule 9.27


161   Club Pilates Madison   NJ   Collins   Caroline & Dennis   53 Main St   Madison   NJ   07940   973-765-6260   C: 917.796.9618   caroline.collins@clubpilates.com; dennis.collins@clubpilates.com   6%   2%   01/17/17
162   Club Pilates La Grange   IL   Walker   Sheri           IL           773.339.3246   sheri.walker@clubpilates.com   6%   2%   01/20/17
163   Club Pilates Kendall   FL   Clivio   Tara           FL           305.586.3131   tara.clivio@clubpilates.com   6%   2%   01/23/17
164   Club Pilates Princeto n   NJ   Burd   Steven           NJ           609.610.8007   steve.burd@clubpilates.com   6%   2%   01/30/17
165   Club Pilates Downto wn LA   CA   Violas   Stephanie   1119 S. Hope Street   Los Angeles   CA   90015   213-204-6900   (310)-489-9803   stephanie.violas@clubpilates.com   6%   2%   01/30/17
166   Club Pilates St. Matthe ws   KY   Ryser   Fred   4600 Shelbyville Road, suite 104   Louisville   KY   40243   502-907-1577   F:347.997.2052 K:917.597.4334   fred.ryser@clubpilates.com; katie.ryser@clubpilates.com   6%   2%   01/31/17
167   Club Pilates Sioux Falls   SD   Safranski   Michael & Tricia   5009 S. Western Ave Ste 220   Sioux Falls   SD   57108   605.68.6556   612.220.1469   michael.safranski@clubpilates.com; tricia.safranski@clubpilates.com   6%   2%   01/31/17

 

Schedule 9.27


168   Club Pilates Mission Grove   CA   Teranchi   Shahin   341 E. Alessandro Blvd #2G   Riverside   CA   92508   951.708.3600   951.237.2379   shahin.tehranchi@clubpilates.com; zohal.tehranchi@clubpilates.com   6%   2%   02/02/17
169   Club Pilates Sunrise   FL   Maddocks   Teresa & Alan           FL           954.962.0322   0   6%   2%   02/06/17
170   Club Pilates Las Colinas   TX   Martin   Todd & Debi   4000 N. MacArthur Blvd. Ste #A122   Irving   TX   75038   469.214.4822   D:972.977.7277   debi.martin@clubpilates.com; todd.martin@clubpilates.com   6%   2%   02/07/17
171   Club Pilates Colleyvill e   TX   Martin   Todd & Debi   4701 Colleyville Blvd. Ste 430   Dallas   TX   76034   817.409.6970   D:972.977.7277   debi.martin@clubpilates.com; todd.martin@clubpilates.com   6%   2%   02/07/17
172   Club Pilates North Fort Worth   TX   Martin   Todd & Debi   2317 North Tarrant Parkway, Suite 423   Fort Worth   TX   76177   682.312.6030   D:972.977.7277   debi.martin@clubpilates.com; todd.martin@clubpilates.com   6%   2%   02/07/17
173   Club Pilates Radnor   PA   Waller   George & Kris           PA           610.613.8380   george.waller@clubpilates.com; kris.waller@clubpilates.com   6%   2%   02/22/17
174   Club Pilates NW Reno   NV   Beardsley   Allison   1620 Robb Dr Ste C1   Reno   NV   89523   775-525-0549   (775)-737-3322   allison@clubpilates.com   6%   2%   02/23/17
175   Club Pilates Wexford   PA   Castiglione & Adamiak   Michael & Autumn           PA           M:724.815.7199   mike.castiglione@clubpilates.com; autumn.adamiak@clubpilates.com   6%   2%   02/24/17

 

Schedule 9.27


176   Club Pilates Poway   CA   Hoyos   Fernando           CA           619.831.1086   fernando.hoyos@clubpilates.com   6%   2%   02/27/17
177   Club Pilates Rancho Bernardo   CA   Hoyos   Fernando   12145 Alta Carmel Ct, Suite 220   San Diego   CA   92128   858.943.4741   619.831.1086   fernando.hoyos@clubpilates.com   6%   2%   02/27/17
178   Club Pilates Potomac   MD   Carnegie   Maritza           MD           301.275.4006   maritza.carnegie@clubpilates.com   6%   2%   02/28/17
179   Club Pilates Brentwood   CA   Griffin   Jim   11677 San Vicente Blvd Ste, 304   Los Angeles   CA   90049   424-368-2650   224.436.0647   jim.griffin@clubpilates.com; catherine.griffin@clubpilates.com   6%   2%   03/06/17
180   Club Pilates Schaumburg   IL   Ciesla   Frank & Christina           IL           847-975-8133   frank.ciesla@clubpilates.com; christina.ciesla@clubpilates.com   6%   2%   03/13/17
181   Club Pilates Burlington   MA   Trauzzi / Hard   Christopher / Marjie   43 Middlesex Turnpike, Unit 12   Burlington   MA   01803   781-300-7525   617-880-9987   chris.trauzzi@clubpilates.com; marjie.hard@clubpilates.com   6%   2%   03/14/17
182   Club Pilates Towne Lake   TX   Fichaud / Bryan   Chris / Susan   9955 Barker Cypress Ste 215   Cypress   TX   77433   832-653-9419   C: 713-254-0213 S: 713.882.8873   chris.fichaud@clubpilates.com; susan.bryan@clubpilates.com   6%   2%   03/31/17

 

Schedule 9.27


183   Club Pilates Avalon   GA   Worley   Mark   7160 Avalon Blvd   Alpharetta   GA   30009   678-996-5336   678.488.0785   mark.worley@clubpilates.com   6%   2%   04/04/17
184   Club Pilates Biltmore Park   NC   Cropp   Kevin & Hadley           NC           K: 919-593-0337   kevin.cropp@clubpilates.com; hadley.cropp@clubpilates.com   6%   2%   04/07/17
185   Club Pilates Santa Clarita   CA   Ovakimian   Sarkis / Esther           CA           S: 818.675.5061   sarkis.ovakimian@clubpilates.com; ester.plavdjian@clubpilates.com   6%   2%   04/10/17
186   Club Pilates Gainey Ranch   AZ   Jacobs   Keith   8787 N. Scottsdale Rd. Ste232   Scottsdale   AZ   85253   480-462-1299   K: 910-274-8201   keith.jacobs@clubpilates.com; yvette.jacobs@clubpilates.com   6%   2%   04/12/17
187   Club Pilates Assembl y Row   MA   Miller   Mike & Tammy   389 Revolution Dr   Somerville   MA   2145   857-997-2580   M: 510.919.4484   melissa.miller@clubpilates.com ; jerry.miller@clubpilates.com   6%   2%   04/12/17
188   Club Pilates St. Charles   MO   Devers / McKelvey   Jennifer / Patricia   1894 Wentzville Parkway   Wentzville   MO          

Devers:

(636)-244-7311

  jennifer.devers@clubpilates.com; patti.mckelvey@clubpilates.com   6%   2%   04/14/17
189   Club Pilates Woodsto ck   GA   Taylor/
Oliver
  Paige/Andrew   1065 Buckhead Crossing   Woodstock   GA   28104           Paige.Taylor@clubpilates.com   6%   2%   05/22/17

 

Schedule 9.27


190   Club Pilates Collegevi lle   PA   Koster/ Olivia   Marco/ Carla   222 East Main Street #012   Collegeville   PA   19426   484-284-8004       Marco.Koster@clubpilates.com   6%   2%   05/24/17
191   Club Pilates St. George 1   TU   McClure   Krista           UT               Krista.McClure@clubpilates.com   6%   2%   06/16/17
192   Club Pilates Spring Lake   NJ   Andricsak/ Massa   Cathy / Allison           NJ               Cathy.Andricsak@clubpilates.com   6%   2%   06/19/17
193   Club Pilates Boston (Peterson)   MA   Peterson   Jennifer           MA               Jennifer.Peterson@clubpilates.com   6%   2%   06/30/17
194   Club Pilates North Henders on   NV   Kim   Wesley           NV               Wesley.Kim@clubpilates.com   6%   2%   07/28/17
195   Club Pilates Foothill Ranch   CA   Georges   Bill & Beth           CA               Bill.Georges@clubpilates.com   6%   2%   09/07/17
196   Club Pilates Milwaukee (Schuda)   WI   Schuda   Michael & Anjelica           WI               Michael.Schuda@clubpilates.com   6%   2%   09/07/17

 

Schedule 9.27


197   Club Pilates West Omaha   NE   Froscheiser   Jay & Angelina           NE               Jay.Froscheiser@clubpilates.com   6%   2%   09/21/17
198   Club Pilates Mansfield   TX   Becker   Lance & Sara   3300 East Broad St #130   Mansfield   TX   76063   817-592-2555   L:512.787.3703   lance.becker@clubpilates.com; sarah.becker@clubpilates.com   6%   2%   05/15/17
199   Club Pilates Round Rock   TX   Hernandez/Lindner   Hector/Molly   2800 South IH-35, Suite 160   Round Rock   TX   78681       512.593.3652   hector.hernandez@clubpilates.com; molly.lindner@clubpilates.com   6%   2%   11/22/16
200   Club Pilates Granite Hills   CA   Hughes   Megan   747 Jamacha Road   El Cajon   CA   92019   619.329.1180   619-204-9090   megan.hughes@clubpilates.com; carl.hughes@clubpilates.com   6%   2%   06/26/16
201   Club Pilates Tarzana   CA   Stromblad   Katya   18741 Ventura Blvd   Tarzana   CA   91356       818.257.3047   katya.stromblad@clubpilates.com   6%   2%   08/16/17
202   Club Pilates Reno   NV   Beardsley   Allison   6815 Sierra Center Parkway, Suite 500   Reno   NV   89511   775-2981678   (775)-737-3322   allison@clubpilates.com   0%   0%   n/a-founder
203   Club Pilates Livingston   NJ  

Dimitrios/Helen/

Arnold / Amy

  Angelis/ DeGarcia           NJ           D:914.772.9973 A:917.921.2595   dimitrios.angelis@clubpilates.com; helen.angelis@clubpilates.com; arnold.degarcia@clubpilates.com; amy.degarcia@clubpilates.com   6%   2%   09/26/17

 

Schedule 9.27


204   Club Pilates Greenwood Village   CO   Easterly   Kevin   7600 Landmark Way, Suite B-106   Greenwood Village   CO   80111   720-546-2100       kevin.easterly@clubpilates.com   6%   2%   06/28/17
205   Club Pilates Bountiful   UT   Edmonds/Miller   Mike & Becky/Scott & Karie   530 W 500 S Suite D   Bountiful   UT   84010       801.707.5630   mike.edmonds@clubpilates.com; scott.miller@clubpilates.com   6%   2%   08/21/17
206   Club Pilates Belle Meade   TN   Fielder   Tom   4326 Harding Pike, Suite 105   Nashville   TN   37205   615.988.4488   615.579.3070   tom.fielder@clubpilates.com   6%   2%   06/27/17
207   Club Pilates Dilworth   NC   Harris   Doug           NC               doug.harris@clubpilates.com; kris.harris@clubpilates.com   6%   2%   09/12/17
208   Club Pilates Summerlin   NV   Rechester   Victoria/Emil   7460 W Lake Mead Blvd. # E1   Las Vegas   NV   89108   702-979-2422   Victoria (323) 899-7083   emil.rechester@clubpilates.com   6%   2%   05/31/17
209   Club Pilates Ardsley   NY   Rhyu   Heather   875 Saw Mill River Rd   Ardsley   NY   10502   914-292-1292   310.972.8786   heather.rhyu@clubpilates.com   6%   2%   05/05/17

 

Schedule 9.27


210   Club Pilates Chapel Hill   NC   Schuck/Smith/Ruggieri   David / Jon / Joe   1800 E. Franklin Street #9   Chapel Hill   NC   27514   919.670.3077   D: 336.404.7871   david.schuck@clubpilates.com; jon.smith@clubpilates.com; joe.ruggieri@clubpilates.com   6%   2%   06/27/17
211   Club Pilates Yorba Linda   CA   Watson / Lombardi   Keely / Ed           CA           Keely (619) 261-5898   keely.watson@clubpilates.com; ed.lombardi@clubpilates.com   6%   2%   07/31/17
212   Club Pilates Stamford #1   CT   Ackerman   Scott   1063 Boston Post Road   Darien   CT           917.692.8894   scott.ackerman@clubpilates.com   6%   2%   10/21/16
213   Club Pilates Manhatt an #1   NY   Acquista   Dominick           NY           Dom:917.774.2853   dominick.acquista@clubpilates.com   6%   2%   01/31/17
214   Club Pilates South Carolina #1   SC   Agnoff   Steve & Mindy   1121-F Military Cutoff Rd.,   Wilmington   SC   28405   910.408.2630   910-313-0230   steve.agnoff@clubpilates.com; mindy.agnoff@clubpilates.com   6%   2%   03/08/17
215   Club Pilates South Carolina #2   SC   Agnoff   Steve & Mindy           SC               steve.agnoff@clubpilates.com; mindy.agnoff@clubpilates.com   6%   2%   06/29/17
216   Club Pilates Chicago #1 (Asbury)   IL   Asbury   Janet           IL           773.983.8165   janet.asbury@clubpilates.com   6%   2%   10/20/16
217   Club Pilates San Luis Obispo   CA   Attaway   Julianne (Juli)           CA           (619) 248-5891   juli.attaway@clubpilates.com   6%   2%   07/06/16

 

Schedule 9.27


218

  Club Pilates Chicago #1 (Baldwin)   IL   Baldwin   Nathan & Erica   901 W Madison St.   Chicago   IL   60607       N: 608.609.5152  

nathan.baldwin@clubpilates.com;

erika.baldwin@clubpilates.com

  6%   2%   01/24/17
219   Club Pilates Germant own   TN   Barnes   Tara & Philip           TN           T: 901.628.8004  

tara.barnes@clubpilates.com;

phillip.barnes@clubpilates.com

  6%   2%   04/15/16
220   Club Pilates Reston   VA   Black   Vince   47100 Community Plaza #63A   Sterling   VA   20164   (703) 429-1764   703.307.9085   vince.black@clubpilates.com   6%   2%   08/30/16
221   Club Pilates Birmingh am #2   AL   Booker   Lindsay   3534 Rockhill Rd   Birmingham    AL   35233        (205) 451-2482   lindsay.booker@clubpilates.com   6%   2%   12/30/16
222   Club Pilates Broomfield    CO   Boselli   Elizabeth    14336 Lincoln Street   Thornton   CO   80023   720 441-4559   303-875-4307   elizabeth.boselli@clubpilates.com   6%   2%   03/15/17
223   Club Pilates Richmond #1   VA   Burleigh    Brian           VA           804-402- 0353   bryan.burleigh@clubpilates.com   6%   2%   04/10/17
224   Club Pilates Seattle   WA   Castro   Savannah & Maya           WA           S: 206.852.6331  

savannah.castro@clubpilates.com; 

maya.castro@clubpilates.com

  6%   2%   01/17/17

 

Schedule 9.27


225   Club Pilates Norfolk #1   VA   Celia   Joe           VA           917-991-0400   joe.celia@clubpilates.com   6%   2%   04/10/17
226   Club Pilates Brooklyn   NY   Chu   Isaac   181 Pacific St   Brooklyn   NY   11201   718-635-1699   646.610.0389   isaac.chu@clubpilates.com   6%   2%   08/29/16
227   Club Pilates Tulsa #1 (Clark)   OK   Clark   Curt   9130 S Sheridan Rd   Tulsa   OK   74133       918.740.0777   curt.clark@clubpilates.com; victoria.clark@clubpilates.com   6%   2%   12/19/16
228   Club Pilates TBD 1   NC   Cleveland   Aleshka           NC           8287749405   aleshkacleveland@icloud.com   6%   2%   02/25/15
229   Club Pilates TBD 2   NC   Cleveland   Aleshka           NC           8287749405   aleshkacleveland@icloud.com   6%   2%   02/25/15
230   Club Pilates Rochester   MI   Cronin   Kristen           MI           (248) 410-4259   kristen.cronin@clubpilates.com   6%   2%   06/22/16
231   Club Pilates Naples #1   FL   Deutsch   Adam           FL           614.309.9890   adam.deutsch@clubpilates.com   6%   2%   02/15/17
232   Club Pilates Virginia Highland A   GA   Dube   Sheetal and Sandeep           GA           503.780.6302   sheetal.dube@clubpilates.com; sandeep.dube@clubpilates.com   6%   2%   02/25/16

 

Schedule 9.27


233   Club Pilates Coral Springs (Dziugeli s)   FL   Dziugelis   Innetta and Aurimas   4388 N. State Rd 7   Coral Springs   FL   33073       561.716.7128   innetta.dziugelis@clubpilates.com   6%   2%   02/15/17
234   Club Pilates Mill Creek   UT   Edmonds/Miller   Mike & Becky/Scott & Karie   1140 E. Brickyard Rd.#30   Salt Lake City   UT   84106   801-939-2300   801.707.5630   mike.edmonds@clubpilates.com; scott.miller@clubpilates.com   6%   2%   04/11/17
235   Club Pilates Austin #1 (Fraser)   TX   Fraser  

Theresa

& Glenn

  2712 Bee Cave Rd   Austin   TX   78746   512.515.1440   T: 858.750.8595   theresa.fraser@clubpilates.com   6%   2%   11/21/16
236   Club Pilates Austin #2 (Fraser)   TX   Fraser  

Theresa

& Glenn

          TX           T: 858.750.8595   theresa.fraser@clubpilates.com   6%   2%   08/16/17
237   Club Pilates Cleveland #1   OH   Gage   Anita   8474 East Washington St. Unit 11   Chagrin Falls   OH   44023   440-804-5110   330-714-6792   anita.gage@clubpilates.com   6%   2%   03/02/17
238   Club Pilates Cleveland #2   OH   Gage   Anita   Pinecrest Orange Village   Pine crest   OH   44122       330-714-6792   anita.gage@clubpilates.com   6%   2%   06/29/17
239   Club Pilates Tucson #1   AZ   Garrison   Kathy   6872 EAST SUNRISE DRIVE, #150   Tucson   AZ   85750   520.444.0163   520.444.0163   kathy.garrison@clubpilates.com   6%   2%   10/06/16

 

Schedule 9.27


240   Club Pilates Westche ster (Gevinski)   NY   Gevinski   Sarah   30 E Main St   Mount Kisco   NY   10549   914.362.8414   646.425.8244   sarah.gevinski@clubpilates.com   6%   2%   11/29/16
241   Club Pilates New York #1 (Golden berg)   NY   Goldenberg   Louisa           NY           646.729.3230   louisa.goldenberg@clubpilates.co m; michael.goldenberg@clubpilates.c om   6%   2%   12/12/16
242   Club Pilates Missouri City   TX   Gowens   Bret           TX   22       832.659.4501   bret.gowens@clubpilates.com   6%   2%   10/11/16
243   Club Pilates DC #1   VA   Grams   Michael   1101 S. Joyce St., Suite B14   Arlington   VA   22202  

571-429-4690

  703-949-0378   michael.grams@clubpilates.com   6%   2%   10/10/16
244   Club Pilates Maryland #1   MD   Grover   Jan &Chuck   4959 Westview Dr. Suite D   Frederick   MD   21703  

301-304-4880

  240.578.0093   jan.grover@clubpilates.com; chuck.grover@clubpilates.com   6%   2%   11/15/16
245   Club Pilates Bellevue (Sheetal)   WA   Guttigoli   Sheetal   15782 Redmond Way   Redmond   WA   98052       425.829.8733   sheetal.guttigoli@clubpilates.com   6%   2%   11/30/16

 

Schedule 9.27


246   Club Pilates Apple Valley   MN   Hansen   Peter & John           MN           P: 218.349.9728   peter.hansen@clubpilates.com; john.hansen@clubpilates.com   6%   2%   01/25/17
247   Club Pilates Kennesaw   GA   Harman   Nicole           GA           404-819-9764   nicole.harman@clubpilates.com   6%   2%   03/24/17
248   Club Pilates Boulder - Lafeyette   CO   Hendricks   Joe   2850 Baseline Road   Boulder   CO   80303       Joe 303-513-4498 Kelly 720-355-1954   kelly.hendricks@clubpilates.com   6%   2%   03/06/17
249   Club Pilates Carmichael   CA   Holmes   Brian   2766 East Bidwell, Suite 100   Broadstone   CA   95630       B: 661.332.2233   brian.holmes@clubpilates.com; adrian.holmes@clubpilates.com   6%   2%   07/01/16
250   Club Pilates West NY   NJ   Horvath   Emese   45-4 Riverwalk Pl.,   West New York   NJ   07093       770.910.2934   emese.horvath@clubpilates.com   6%   2%   05/18/17
251   Club Pilates 4S Ranch   CA   Hoyos   Fernando           CA           619.831.1086   fernando.hoyos@clubpilates.com   6%   2%   02/28/17
252   Club Pilates Banker’s Hill   CA   Hughes   Megan   2760 5th Ave, Suite 110   San Diego   CA   92103   858-531-2348   619-204-9090   megan.hughes@clubpilates.com; carl.hughes@clubpilates.com   6%   2%   12/02/15

 

Schedule 9.27


253   Club Pilates Fairfax   VA   Karickhoff   Julie           VA           310.902.8810   jkarickhoff@earthlink.net   6%   2%   04/19/17
254   Club Pilates Baltimore #1 (Kay)   MD   Kay / Bateman   Karla / Liana           MD           717.825.6150   karla.kay@clubpilates.com; liana.bateman@clubpilates.com   6%   2%   12/16/16
255   Club Pilates Baltimore #2 (Kay)   MD   Kay / Bateman   Karla / Liana   100 Shawan Rd. Suite C   Hunt Valley   MD   21030   443-541-5505   717.825.6150   karla.kay@clubpilates.com; liana.bateman@clubpilates.com   6%   2%   05/11/17
256   Club Pilates Del Rey Beach   FL   Kennedy   Kelly   Linton Blvd. & Lavers Ave   Delray Beach   FL           305.389.5399   kelly.kennedy@clubpilates.com   6%   2%   09/22/16
257   Club Pilates Ft. Lauderd ale #2   FL   Kennedy   Kelly   7050 W. Palmetto Park Rd #49/50   Boca Raton   FL   33433       305.389.5399   kelly.kennedy@clubpilates.com   6%   2%   04/19/17
258   Club Pilates Sarasota #1   FL   Kilcullen / Keith   Peter / Gary   5408 Lockwood Ridge Rd   Brad enton   FL   34203   941-260-3360  

P:

727.647.0429

  0   6%   2%   04/14/17
259   Club Pilates Chicago #1 (Kohn)   IL   Kohn   Eric & Kristin           IL           773-580-9602   eric.kohn@clubpilates.com; kristin.kohn@clubpilates.com   6%   2%   03/08/17

 

Schedule 9.27


260   Club Pilates Morgan Hill (Lance)   CA   Lance   Renata and Sean           CA           Renata (650) 759-3283   renata.lance@clubpilates.com ; sean.lance@clubpilates.com   6%   2%   12/19/16
261   Club Pilates Metairie   LA   LeBrun   Denise   2513 Meterie Rd   Metaire   LA   70001   504.484.9650   504.432.0477   denise.lebrun@clubpilates.com   6%   2%   01/30/17
262   Club Pilates Atlanta #1 (Ledford)   GA   Ledford   Mandy           GA           828.925.3263   mandy.ledford@clubpilates.com   6%   2%   11/30/16
263   Club Pilates Alexandria   VA   Lee   Mindy           VA           540-419-5079   mindy.lee@clubpilates.com   6%   2%   03/13/17
264   Club Pilates Philadel phia #1   PA   Longo   Randy & Margaret   215 Lancaster Ave   Frazer   PA   19355   484.787.3 905   484.238.4230   randy.longo@clubpilates.com; margo.longo@clubpilates.com   6%   2%   02/21/17
265   Club Pilates Philadel phia #2   PA   Longo   Randy & Margaret           PA           484.238.4230   randy.longo@clubpilates.com; margo.longo@clubpilates.com   6%   2%   02/21/17
266   Club Pilates Portland #1 (McCartney)   OR   McCartney   Alyssa           OR           503-740-5025   alyssa.mccartney@clubpilates.com   6%   2%   03/02/17

 

Schedule 9.27


267   Club Pilates Miami #1 (Mochon)   FL   Mochon / Rosentgberg   Daniela / Horacio   16850 Collins Ave #113D   Sunny Isles Beach   FL   33160      

D

786.301.2759

  daniela.mochon@clubpilates.com; horacio.rosentgberg@clubpilates.c om   6%   2%   09/16/16
268   Club Pilates Morgan Hill   CA   Mohan   Chandra   120 Cochrane Plaza   Morgan Hill   CA   95037       408.887.0000   chandra.mohan@clubpilates.com   6%   2%   03/18/16
269   Club Pilates St. Paul #1   MN   Nelson   Topher           MN           612.723.6075   topher.nelson@clubpilates.com   6%   2%   11/23/16
270   Club Pilates Seattle #1 (Nichols on)   WA   Nicholson   Candi           WA           206-661-7334   candi.nicholson@clubpilates.com   6%   2%   03/03/17
271   Club Pilates Dedham   MA   Peterson   Jennifer           MA           917.573.6971   jennifer.peterson@clubpilates.com   6%   2%   02/15/17
272   Club Pilates Wesley Chapel   FL   Philyaw   Nathan   28211 Paseo Drive #1090   Tampa   FL   33543       904.635.0298   nathan.philyaw@clubpilates.com   6%   2%   04/18/17
273   Club Pilates Marin #1   CA   Poletti   Natalie   208 Vintage Way, Ste G-10   Novato   CA   94945   415.761.1315   650.302.1285   natalie.poletti@clubpilates.com   6%   2%   08/30/16

 

Schedule 9.27


274   Club Pilates Long Beach   CA   Rubin   Michael & Alyssa   5939 East Spring St   Long Beach   CA   90808   562-521-1800   (562)-754-4204   Alyssa.rubin@clubpilates.com   6%   2%   11/28/16
275   Club Pilates Miami #1 (Sackett)   FL   Sackett   Jamie   7835 NW 107 Avenue   Doral   FL           305.301.2050   jamie.sackett@clubpilates.com   6%   2%   10/11/16
276   Club Pilates Paramus #1   NJ   Sapka   Allison / Chris   West Grand Ave and Mercedes Drive   Montvale   NJ          

C: 201.916.3359

A: 973.951.2074

  allison.sapka@clubpilates.com; chris.sapka@clubpilates.com   6%   2%   07/01/16
277   Club Pilates STL #3   MO   Schade   Andrea           MO           7757719605   andrea@clubpilates.com   6%   2%   02/28/17
278   Club Pilates Texas #1 (Schreiver)   TX   Schriever   Delma / Rick   2323 Clear Lake City Blvd, Suite 183   Houston   TX   77062   832-584-4120   281.840.0864   delma.schriever@clubpilates.com; rick.schriever@clubpilates.com;   6%   2%   12/14/16
279   Club Pilates Texas #2 (Schreiver)   TX   Schriever   Delma / Rick   3875 E. League City Pkwy   League City   TX   77573   832-920-3198   281.840.0864   delma.schriever@clubpilates.com; rick.schriever@clubpilates.com;   6%   2%   08/14/17

 

Schedule 9.27


280   Club Pilates Naperville #2   IL   Smith   Eric           IL           630.362.9593   eric.smith@clubpilates.com   6%   2%   09/23/16
281   Club Pilates Clearwater   FL   Stewart   Wayne           FL           304.685.4959   wayne.stewart@clubpilates.com   6%   2%   02/20/17
282   Club Pilates Noblesville   IN   Thorpe   Ralph /Julie   2727 East 86th Street   Indianapolis   IN           317.696.4600   ralph.thorpe@clubpilates.com   6%   2%   04/19/17
283   Club Pilates DTLA #2   CA   Violas   Stephanie           CA           (310)-489-9803   stephanie.violas@clubpilates.com   6%   2%   04/17/17
284   Club Pilates King of Prussia   PA   Waller   George & Kris           PA           610.613.8380   george.waller@clubpilates.com; kris.waller@clubpilates.com   6%   2%   02/22/17
285   Club Pilates Ft. Lauderdale   FL   Wance / Puppin   Felipe / Adrian           FL           954-544-0609   felipe.wance@clubpilates.com; adriana.puppin@clubpilates.com   6 %   2%   02/22/17
286   Club Pilates Wayne   NJ   Warner   Alison           NJ           551.427.7806   alison.warner@clubpilates.com   6%   2%   02/09/17
287   Club Pilates San Juan Capistrano   CA   Watson / Lombardi   Keely / Ed   27184 Ortega Hwy Suite 206   San Juan Capistrano   CA   92675   949-257-2292   Keely
(619) 261-5898
  keely.watson@clubpilates.com; ed.lombardi@clubpilates.com   4%   2%   10/05/15
288   Club Pilates Hollywood   CA   Watson / Lombardi   Keely / Ed   730 N. La Brea Ave.   Los Angeles   CA   90038   323-774-2701   Keely
(619) 261-5898
  keely.watson@clubpilates.com; ed.lombardi@clubpilates.com   6%   2%   03/09/15

 

Schedule 9.27


289   Club Pilates Houston #1 (Wells)   TX   Wells   Daniela & David   730 Kingwood Dr.   Kingwood   TX   77399       832.923.0228   david.wells@clubpilates.com; daniela.wells@clubpilates.com   6%   2%   11/18/16
290   Club Pilates Long Island #1 (Wolk)   NY   Wolk   David           NY           914.260.7489   david.wolk@clubpilates.com   6%   2%   11/08/16
291   Club Pilates Lake Oswego   OR   Wynkoop   Dan / Debra           OR           503-720-9556   dan.wynkoop@clubpilates.com; debra.wynkoop@clubpilates.com   6%   2%   07/27/16
292   Club Pilates Palm Desert   CA   Zhang   Vivian   78-437 Hwy 111   La Quinta   CA   92253       646.509.8909   vivian.zhang@clubpilates.com   6%   2%   01/27/17
293   Club Pilates Phoenix (Pickens)  

AZ

  Pickens   Kim           AZ               Kim.Pickens@clubpilates.com   6%   2%   05/23/17
294   Club Pilates Lonetree (Bosson)   CO   Bosson   Cathy   NEC Lincoln & Yosemite   Lonetree   CO               Cathy.Bosson@clubpilates.com   6%   2%   05/24/17
295   Club Pilates Pittsburgh   PA   Schlosser   David/ Mari Jo           PA               David.Schlosser@clubpilates.com   6%   2%   05/24/17

 

Schedule 9.27


296   Club Pilates Long Island (Grassi)   NY   Grassi   Jim / Kristy           NY               Jim.Grassi@clubpilates.com   6%   2%   06/30/17
297   Club Pilates Cherry Hills 1   CO   Olson / Doyle   Brianna / Michelle           CO               Brianna.Olson@clubpilates.com   6%   2%   07/13/17
298   Club Pilates Lubbock   TX   Short   Kyle / Susan           TX               Kyle.Short@clubpilates.com   6%   2%   07/28/17
299   Club Pilates Rochester   MI   Babineau   Thomas           MI               Thomas.Babineau@clubpilates.com   6%   2%   08/31/17
300   Club Pilates Seattle   WA   Schoffstall   Jeff & Jennifer           WA               Jeff.Schoffstall@clubpilates.com   6%   2%   09/14/17
301   East Montgomery   AL   Brazell   Craig/Lanie           AL               Craig.Brazell@clubpilates.com   6%   2%   05/19/17
302   Tampa   FL   Kitchen/ Erickson   Kim/Joe           FL               Kim.Kitchen@clubpilates.com   6%   2%   05/19/17
303   Napa   CA   Campton   Lois           CA               Lois.Campton@clubpilates.com   6%   2%   05/22/17
304   Chicago   IL   Kulkarni   Pradnya           IL               Pradnya.Kulkarni@clubpilates.com   6%   2%   05/22/17
305   Plano   TX   Mullins   John           TX               John.Mullins@clubpilates.com   6%   2%   05/22/17

 

Schedule 9.27


306   New Mexico   NM   Rule   Brian / Jessica           NM               Brian.Rule@clubpilates.com   6%   2%   05/22/17
307   Florida   FL   Abbe/Willits   Steve/Shannon           FL               Steve.Abbe@clubpilates.com   6%   2%   05/23/17
308   Rancho Mirage   CA   Dordell/ Fenske   Chris/Jason           CA               Chris.Dordell@clubpilates.com   6%   2%   05/23/17
309   Park Ridge   IL   Gentner   Andy           IL               Andy.Gentner@clubpilates.com   6%   2%   05/23/17
310   Sacramento   CA   Smith   Katie           CA               Katie.Smith@clubpilates.com   6%   2%   05/23/17
311   Chicago   IL   London   Larry/Crystal           IL               Larry.London@clubpilates.com   6%   2%   05/25/17
312   Charleston   FL   York/Schlobohm   Shaun/Zach   3438 Lithia Pinecrest Road,   Valrico   FL   33956           Shaun.York@clubpilates.com   6%   2%   05/25/17
313   Central NJ   NJ   Davis   Brennan           NJ               Brennan.Davis@clubpilates.com   6%   2%   05/26/17
314   Red Bank   NJ   Laden   Gary           NJ               Gary.Laden@clubpilates.com   6%   2%   05/26/17
315   New Jersey   NJ   Spidare   Todd & Karen           NJ               Todd.Spidare@clubpilates.com   6%   2%   06/15/17
316   San Antonio   TX   Stephens   Michelle           TX               Michelle.Stephens@clubpilates.com   6   2%   06/15/17

 

Schedule 9.27


317   Charleston   SC   Garrett   Jim / Patty           SC               Jim.Garrett@clubpilates.com   6%   2%   06/19/17
318   Westchester   NY   Kossar Katz   Jacquelyn           NY               Jacquelyn.Kossar@clubpilates.com   6%   2%   06/19/17
319   Winchester   MA   Day   Tim           MA               Tim.Day@clubpilates.com   6%   2%   06/20/17
320   Phoenix   AZ   Hansen   Peter           AZ               Peter.Hansen@clubpilates.com   6%   2%   06/27/17
321   Seattle   WA   Shah   Vishrut           WA               Vishrut.Shah@clubpilates.com   6%   2%   07/21/17
322   Greenville   SC   Patterson / Cole   John / Daniel           SC               John.Patterson@clubpilates.com   6%   2%   07/26/17
323   Virginia Beach   VA   Dunn   Ray           VA               Ray.Dunn@clubpilates.com   6%   2%   07/28/17
324   North Dallas   TX   Furniss   Mike           TX               Mike.Furniss@clubpilates.com   6%   2%   07/28/17
325   Bethesda   MD   Goldberg   Sue / Phil           MD               Sue.Goldberg@clubpilates.com   6%   2%   07/28/17
326   DFW   TX   Howard   Kendall           TX               Kendall.Howard@clubpilates.com   6%   2%   07/28/17
327   Ridgefield   CT   Fay   Ken & Jennifer           CT               Ken.Fay@clubpilates.com   6%   2%   08/09/17

 

Schedule 9.27


328   DFW & Santa Barbara   TX/CA   Tortolani   Cynthia           TX / CA               Cynthia.Tortolani@clubpilates.com   6%   2%   08/09/17
239   Manhattan   NY   Yang / Barletta   John / Renee           NY               John.Yang@clubpilates.com   6%   2%   08/09/17
330   Colorado  

CO

  Busse   Mary           CO               Mary.Busse@clubpilates.com   6%   2%   08/15/17
331   Dayton   OH   Shumway   Jeff & Lisa           OH               Jeff.Shumway@clubpilates.com   6%   2%   08/15/17
332   Central NJ   NJ   Guirguess   David           NJ               David.Guirguess@clubpilates.com   6%   2%   08/17/17
333   Pittsburgh   PA   Johansen   Trey & Christina           PA               Trey.Johansen@clubpilates.com   6%   2%   08/17/17
334   Billings   MT   Koeplin   David & Kristin           MT               David.Koeplin@clubpilates.com   6%   2%   08/24/17
335   Rockville  

MD

  Swingler   Kevin           MD               Kevin.Swingler@clubpilates.com   6%   2%   08/28/17
336   Pennsylvania   PA   Wisler   Jay           PA               Jay.Wisler@clubpilates.com   6%   2%   08/29/17
337   Atlanta   GA   Rebala   Sekhar           GA               Sekhar.Rebala@clubpilates.com   6%   2%   08/31/17
338   Colorado  

CO

  Cavanaugh   Josh & Elizabet           CO               Josh.Cavanaugh@clubpilates.com   6%   2%   09/15/17

 

Schedule 9.27


339   Oklahoma City   OK   Creecy   David & Janelle           OK               David.Creecy@clubpilates.com   6%   2%   09/15/17
340   Carmel/ Central CA   CA   Foster   Michele & Dale           CA               Michele.Foster@clubpilates.com   6%   2%   09/15/17
341   Bakersfield   CA   Mueller   Jon & Mary Anne           CA               Jon.Mueller@clubpilates.com   6%   2%   09/15/17
342   Club Pilates Dunwoody   GA   Devos   Jack / Teresa   5552-B Chamblee Dunwoody RD   Dunwoody   GA   30338   770-573-0241   (404) 824-7229   teresa.devos@clubpilates.com   6%   2%   10/23/17
343   Club Pilates New City   NY   Lefkowitz   Mark   208 S Main S   New City   NY   10956   (845) 608-8280   (210) 247-9328   mark.lefkowitz@clubpilates.com   6%   2%   10/19/17
344   Club Pilates Old Town   CO   Durand   Jordan   244 North College Ave Suite 125   Fort Collins   CO   80524   970-300-9707   (970) 381-3736   jordan.durand@clubpilates.com   6%   2%   10/02/17
345   Club Pilates Houston (Wafford)   TX   Wafford   Nicole   5535 Memorial Ave   Houston   TX   77007       (281) 733-2203   nicole.wafford@clubpilates.com   6%   2%   10/24/17

 

Schedule 9.27


346   Club Pilates Cleveland 1   OH   Sapitro   Jim & Dianne Dianne           OH          

(440) 665-7941

  jim.sapitro@clubpilates.com   6%   2%  

11/15/17

347   Club Pilates Andover   MA   Pollard   Laura           MA           (617) 755-5853   laura.pollard@clubpilates.com   6%   2%   11/14/17
348   Club Pilates Omaha 1(VerMaas)   NE   VerMaas   Derrick           NE           (402) 880-9462   derrick.vermaas@clubpilates.com   6%   2%   12/28/17
349   Club Pilates Phoenix 1(Gage)   AZ   Gage   Chris / Angela           AZ                   6%   2%   12/22/17
350   Club Pilates Long Island 1   NJ   Rosenbluth   Allen & Pamela           NJ           (516) 432-7704   pamela.rosenbluth@clubpilates.com   6%   2%   11/13/17
351   Club Pilates Evansville 1(Cox)   IN   Cox   Jeff / Bussie           IN           (812) 431-7251   bussie.cox@clubpilates.com   6%   2%   12/28/17
352   Club Pilates West Boston 1(Bruce)   MA   Bruce   Jeff / Michaela           MA           (508) 981-8181   michaela.bruce@clubpilates.com   6%   2%   12/22/17
353   Club Pilates Moore 1(Webb)   OK   Webb   Allie           OK           (405) 306-2815   allie.webb@clubpilates.com   6%   2%   12/22/17
354   Club Pilates Calgary   CAN   Kot   Danielle           CAN           403-471-8042   danielle.kot@clubpilates.com   6%   2%   11/20/17

 

Schedule 9.27


                             
355   Club Pilates Milwaukee   WI   Stanford   Jennifer & Mitchell           WI           (708) 382-0841   mitchell.stanford@clubpilates.com   6%   2%   11/21/17
                             
356   Club Pilates Vancouver 1(Osman zai)   CAN   Osmanzai   Omar           CAN           604-314-9290   omar.osmanzai@clubpilates.com   6%   2%   12/22/17
                             
357   Club Pilates Central 1   CA   Stevenson   Brad           CA           (949) 466-8889   traci.stevenson@clubpilates.com   6%   2%   11/17/17
                             
358   Club Pilates Ft. Lauderdale 2(Wance)   FL   Wance / Puppin   Felipe / Adrian           FL                   6%   2%   12/28/17
                             
359   Club Pilates Detroit (Babineau)   MI   Babineau   Tom           MI           (313) 410-0901   tom.babineau@clubpilates.com   6%   2%   12/28/17
                             
360   Club Pilates Dallas 4   TX   Becker   Lance & Sarah           TX               sarah.becker@clubpilates.com   6%   2%   11/14/17
                             
361   Club Pilates Lake Nona 1(Carato lli)   FL   Caratolli   Claudia           FL           (786) 879-9500   claudia.caratolli@clubpilates.com   6%   2%   02/21/18

 

Schedule 9.27


                             

362

  Club Pilates Manhattan 1 (Cavallo)   NY   Cavallo   Jason/Darin           NY           (917) 698-2739   jason.cavallo@clubpilates.com   6%   2%   01/25/18
                             
363   Club Pilates Kansas City (Mollie/ Corey Cavanaugh)   KS   Cavanaugh   Mollie & Corey           KS           (719) 481-5797   josh.cavanaugh@clubpilate.com   6%   2%   11/30/17
                             
364   Club Pilates Manhattan 2(Chu)   NY   Chu   Isaac           NY           (646) 610-0389   isaac.chu@clubpilates.com   6%   2%   02/22/18
                             
365   Club Pilates Santa Cruz 1(Affonso)   CA   Foster/Affonso   Michele /Dale           CA                   6%   2%   02/21/18
                             
366   Club Pilates Brooklyn 2   NY   Gevinski   Sarah           NY           (646) 425-8244   sarah.gevinski@clubpilates.com   6%   2%   11/30/17
                             
367   Club Pilates Lexington   SC   Keen   Henry   5230 Sunset Blvd., Suite C,   Lexington   SC   29072       (704) 614-3532   henry.keen@clubpilates.com   6%   2%   10/12/17

 

Schedule 9.27


                             
368   Club Pilates Lutherville 1(Leary)   MD   Leary   Christine           MD           (410) 499-2642   christine.leary@clubpilates.com  

6%

 

2%

 

02/21/18

                             
369   Club Pilates Columbus 2(McTigue)   OH   McTigue   Caitlin           OH           (614) 832-5985   caitlin.mctigue@clubpilates.com  

6%

 

2%

 

02/06/18

                             
370   Club Pilates Morgan Hill (Moulios)   CA   Moulios   Jen           CA           (408) 316-1165   jen.moulios@clubpilates.com  

6%

 

2%

 

02/28/18

                             
371   Club Pilates Minneapolis 4   MN   Nelson   Topher           MN           (612) 723-6075   topher.nelson@clubpilates.com  

6%

 

2%

 

11/21/17

                             
372   Club Pilates Phoenix 3 (Pickens)   AZ   Pickens   Kim           AZ           (602) 790-0769   kim.pickens@clubpilates.com  

6%

 

2%

 

12/18/17

                             
373   Club Pilates Shreveport 3(Pryor)   LA   Pryor   Dennis           LA           (409) 382-7775   dennis.pryor@clubpilates.com  

6%

 

2%

 

02/23/18

                             
374   Club Pilates Seal Beach 2 (Rubin)   CA   Rubin   Michael & Alyssa           CA               Michael.Rubin@clubpilates.com  

6%

 

2%

 

10/19/17

 

Schedule 9.27


                             
375  

Club Pilates

Ann Arbor 2(Vogel)

  MI   Vogel   Nick           MI           (989) 992-8422   nick.vogel@clubpilates.com   6%   2%   02/23/18
                             
376  

Club Pilates

South Florida

3 (Wance/

Caneppa /

Cazzani /Morais)

  FL   Wance/ Caneppa /Cazzani /Morais   Felipe/ Felipe/ Fabian/guilherme           FL                   6%   2%   01/30/18
                             
377  

Club Pilates

Rockland

County 1

(Watkins)

  NY   Watkins   Farah           NY           (201) 663-1543   farah.watkins@clubpilates.com   6%   2%   02/01/18
                             
378  

Club Pilates

Greenwod

  IN   Williams   Jamie/Todd           IN                   6%   2%   01/31/18
                             
379  

Club Pilates

Manhattan

(Yang) 2

  NY   Yang / Barletta   John / Renee           NY                   6%   2%   02/22/18
                             
380  

Club Pilates

Park City

  UT   Badger   Scott/Nicholle           UT           (801) 556-6111   scott.badger@clubpilates.com   6%   2%   03/14/18

 

Schedule 9.27


                             
381   Club Pilates DC 1 (Beale)   DC   Beale   Will           DC           202-868-1545   will.beale@clubpilates.com   6%   2%   03/29/18
                             
382   Club Pilates DC 2 (Beale)   DC   Beale   Will           DC           202-868-1545   will.beale@clubpilates.com   6%   2%   04/02/18
                             
383   Club Pilates DC 3 (Beale)   DC   Beale   Will           DC           202-868-1545   will.beale@clubpilates.com   6%   2%   04/02/18
                             
384   Club Pilates East Liberty 1 (Borga)   PA   Borga   Brittany           PA           (412) 651-1970   brittany.borga@clubpilates.com   6%   2%   03/21/18
                             

385

  Club Pilates Fresno 1 (Danzig)   CA   Danzig   Dan/Jannis           CA           248-561-1641   dan.danzig@clubpilates.com   6%   2%   04/05/18
                             

386

  Club Pilates Fresno 2 (Danzig)   CA   Danzig   Dan/Jannis           CA           248-561-1641   dan.danzig@clubpilates.com   6%   2%   04/05/18
                             
387   Club Pilates Fresno 3 (Danzig)   CA   Danzig   Dan/Jannis           CA           248-561-1641   dan.danzig@clubpilates.com   6%   2%   04/05/18
                             

388

  Club Pilates Long Island 1 (Stalek/Davis)   NY   Davis/Stalek   Martin/ Rebecca           NY           516-567- 9118   martin.davis@clubpilates.com   7%   2%   05/11/18

 

Schedule 9.27


                             

389

  Club Pilates Long Island 2 (Stalek/ Davis)   NY   Davis/Stalek  

Martin/

Rebecca

          NY           516-567-9118   martin.davis@clubpilates.com   7%   2%   05/11/18
                             
390   Club Pilates Long Island 3 (Stalek/ Davis)   NY   Davis/Stalek   Martin/ Rebecca           NY           516-567- 9118   martin.davis@clubpilates.com   7%   2%   05/11/18
                             
391   Club Pilates Jacksonv ille 1 (Durbin)   FL   Durbin   Josh & Elizabeth           FL           (843) 408-1675   josh.durbin@clubpilates.com   6%   2%   03/02/18
                             

392

 

Club

Pilates Jacksonv ille 2 (Durbin)

  FL   Durbin   Josh & Elizabeth           FL           (843) 408-1675   josh.durbin@clubpilates.com   6%   2%   03/02/18
                             
393   Club Pilates Jacksonv ille 3 (Durbin)   FL   Durbin   Josh & Elizabeth           FL           (843) 408-1675   josh.durbin@clubpilates.com   6%   2%   03/02/18
                             
394   Club Pilates Glastonb ury   CT   Fagan   Cathleen           CT           203-912- 4913   cathleen.fagan@clubpilates.com   7%   2%   05/22/18

 

Schedule 9.27


                             

395

  Club Pilates Long Island 1 (Goldstein)   NY   Goldstein   David           NY           516-527-4040   david.goldstein@clubpilates.com   6%   2%   04/05/18
                             
396   Club Pilates Long Island 2 (Goldstein)   NY   Goldstein   David           NY           516-527-4040   david.goldstein@clubpilates.com   6%   2%   04/05/18
                             
397   Club Pilates Long Island 3 (Goldstein)   NY   Goldstein   David           NY           516-527-4040   david.goldstein@clubpilates.com   6%   2%   04/05/18
                             
398   Club Pilates Toledo 1 (Grewal)   OH   Grewal   Saru           OH           (248) 210-7864   saru.grewal@clubpilates.com   6%   2%   03/08/18
                             
399   Club Pilates Liberty Township (Harris)   OH   Harris   Jon           OH           (704) 491-6717   doug.harris@clubpilates.com   6%   2%   03/15/18
                             
400   Club Pilates Winston- Salem 1 (Henry)   NC   Henry   Kristin           NC           (703) 989-0470   kristin.henry@clubpilates.com   7%   2%   05/31/18

 

Schedule 9.27


                             

401

  Club Pilates Austin 4 (Hernandez, Shannon)   TX   Hernandez/Qureshi   Hector/ Shannon           TX           512-593-3652   hector.hernandez@clubpilates.com   6%   2%   05/31/18
                             
402   Club Pilates 1 (Khanukayev)   MD   Khanukayev   Ron/Irina           MD           (443) 803-8254   irina.khanukayev@clubpilates.com   6%   2%   03/07/18
                             

403

 

Club

Pilates Doylestown

  PA   Kurowicki   Donna           PA           908-310-2416   donna.kurowicki@clubpilates.com   7%   2%   05/30/18
                             
404   Club Pilates Charlottesville 1 (Lotze, Tavares, Schettgen)   VA   Lotze/Tavares/Schettgen  

Christine/

Stephen/Marvin

          VA           908-310-2416   donna.kurowicki@clubpilates.com   6%   2%   03/20/18
                             

405

  Club Pilates Lexington 1 (McCarter)   KY   McCarter   Rob/Sandi           KY           (859)-552-8055   rob.mccarter@clubpilates.com   6%   2%   03/30/18
                             
406   Club Pilates Lexington 2 (McCarter)   KY   McCarter   Rob/Sandi           KY           (859)-552-8055   rob.mccarter@clubpilates.com   6%   2%   05/31/18

 

Schedule 9.27


                             

407

  Club Pilates San Antonio 1 (Mueller)   TX   Mueller  

Christian/

Stefanie

          TX           661.302.7497   jon.mueller@clubpilates.com   6%   2%   03/23/18
                             

408

  Club Pilates Cummings 1 (Peterson)   GA   Peterson   Mike           GA           (917) 573-6971   jennifer.peterson@clubpilates.com   6%   2%   04/05/18
                             

409

  Club Pilates Omaha 1 (Powell)   NE   Powell   Lisa & Regi           NE           402-672-1918   lisa.powell@clubpilates.com   7%   2%   06/13/18
                             

410

  Club Pilates Melbourne 1 (Rehkop)   FL   Rehkop   Heath/Emily           FL           703-508-9175   heath.rehkop@clubpilates.com   6%   2%   03/29/18
                             

411

  Club Pilates Reston 1 (Shafi)   VA   Shafi   Misbah           VA           301-305-2130   misbah.shafi@clubpilates.com   7%   2%   06/07/18
                             
412   Club Pilates Arkansas 1 (Teater/ Neblett)   AR   Teater/ Neblett   Bryce & Shayla, Leo &Katherine           AR           501-258-6737   bryce.teater@clubpilates.com   7%   2%   05/21/18
                             
413   Club Pilates Arkansas 2 (Teater/ Neblett)   AR   Teater/ Neblett  

Bryce & Shayla,

Leo

&Katherine

          AR           501-258-6737   bryce.teater@clubpilates.com   7%   2%   05/21/18

 

Schedule 9.27


                             

414

  Club Pilates Arkansas 3 (Teater/ Neblett)   AR   Teater/ Neblett   Bryce & Shayla, Leo &Katherine           AR           501-258-6737   bryce.teater@clubpilates.com   7%   2%   05/21/18
                             
415   Club Pilates Arkansas 4 (Teater/ Neblett)   AR   Teater/ Neblett   Bryce & Shayla, Leo &Katherine           AR           501-258-6737   bryce.teater@clubpilates.com   7%   2%   05/21/18
                             

416

  Club Pilates Arkansas 5 (Teater/ Neblett)   AR   Teater/ Neblett  

Bryce &

Shayla,

Leo &Katherine

          AR           501-258-6737   bryce.teater@clubpilates.com   7%   2%   05/21/18
                             
417   Club Pilates Arkansas 6 (Teater/ Neblett)   AR   Teater/ Neblett   Bryce & Shayla, Leo &Katherine           AR           501-258-6737   bryce.teater@clubpilates.com   7%   2%   05/21/18
                             
418   Club Pilates Indianapolis 4 (Thorpe)   IN   Thorpe   Ralph/Julie           IN           (317) 696-4600   ralph.thorpe@clubpilates.com   6%   2%   03/02/18

 

Schedule 9.27


                             

419

 

Club

Piilates

Indianapolis 5

(Thorpe)

  IN   Thorpe   Ralph/Julie           IN           (317) 696-4600   ralph.thorpe@clubpilates.com   6%   2%   03/02/18
                             

420

 

Club

Pilates Des Moines 1(Tice)

  IA   Tice   Chandler           IA           515-974-7355   chandler.tice@clubpilates.com   6%   2%   04/30/18
                             
421   Club Pilates Houston 1(Uffelm an)   TX   Uffelman   Brian and Sandy           TX           281-630-3484   brian.uffelman@clubpilates.com   7%   2%   05/03/18
                             
422   Club Pilates Houston 2(Uffelm an)   TX   Uffelman   Brian and Sandy           TX           281-630-3484   brian.uffelman@clubpilates.com   7%   2%   05/03/18
                             

423

 

Club

Pilates

Houston 3(Uffelm an)

  TX   Uffelman   Brian and Sandy           TX           281-630-3484   brian.uffelman@clubpilates.com   7%   2%   05/03/18
                             
424   Club Pilates Denver 1 (Van Horn)   CO   Van Horn   Erik           CO           605-645-1465   erik.vanhorn@clubpilates.com   7%   2%   05/31/18
                             
425   Club Pilates Denver 2 (Van Horn)   CO   Van Horn   Erik           CO           605-645-1465   erik.vanhorn@clubpilates.com   7%   2%   05/31/18

 

Schedule 9.27


                             

426

  Club Pilates Denver 3 (Van Horn)   CO  

Van

Horn

  Erik           CO           605-645-1465   erik.vanhorn@clubpilates.com   7%   2%   05/31/18
                             

427

  Club Pilates Lake Oswego   OR   Wynkoop   Dan/Debra           OR           (503) 720-9556   dan.wynkoop@clubpilates.com   6%   2%   05/31/18

Notes:

(i) Renewal Date - All franchise agreements are 10-year terms

(ii) There are no material waivers, alterations, amendments or other material modifications of any franchise agreements. Any waivers, alterations, amendments or modifications that exist are deemed immaterial and are primarily related to territory transfers and development schedule terms

 

Schedule 9.27


The License Arrangement is the only Franchise Agreement or analogous agreement of Licensor. The following information required to be disclosed pursuant to Schedule 9.27(e) is applicable to Arrangement.

 

Subsection

 

  

Information Requested

  

Disclosure

 

(i)

 

  

Franchise System

  

“AKT”1

 

(ii)

  

Franchisee Business

  

Upper East Side Studio

    

Addresses

  

244 84th Street, New York,

         

NY 10028

     
         

NoMad Studio

         

Broadway, New York NY

         

10001

     
         

Hamptons Studio

         

3 Railroad Avenue,

         

East Hampton NY

     
         

New Canaan Studio

         

Halo Studios, Grove Street,

         

New Canaan CT

 

(iii)

  

Franchisee contact info

  

AKT inMotion, Inc.

         

c/o AKT Fitness LLC

         

244 84th Street

         

New York, New York 10028

         

Attention: Anna Kaiser

         

a@aktinmotion.com

 

(iv)

  

Royalty rate

  

Seven percent (7%) once

         

effective pursuant to the terms

         

of the Purchase Agreement

 

(v)

  

Market Fund Contribution

  

No contribution until the

    

Rate

  

opening of the “AKT”

         

Marketing Fund. Then current

         

Market Fund Contribution

         

Rate thereafter.

 

 

 

1 There is technically no current “AKT” Franchise System in place, as the Licensor is in process of preparing the FDD and related elements of such system. The Licensor does license its Intellectual Property to the Licensee in an analogous manner pursuant to the License Arrangement.

 

 

Schedule 9.27


(vi)

  

Minimum royalty

  

No minimum royalties until

         

formal franchise agreements

         

are in place

 

(vii)

  

Effective date

  

March 21, 2018

 

(viii)

  

Modification to renewal date

  

N/A

 

(ix)

 

  

Material modifications or waivers

 

  

N/A

 

The Row House License Arrangement is the only Franchise Agreement or analogous agreement of Row House Licensor. The following information required to be disclosed pursuant to Schedule 9.27(e) is applicable to the Row House License Arrangement.

 

Subsection

  

Information Requested

  

Disclosure

 

(i)

 

  

Franchise System

  

“Stretch Labs”2

(ii)

  

Franchisee Business Addresses

  

Chelsea Studio

         

269 W. 23rd Street

         

New York, NY 10011

 

         

Columbus Circle Studio

         

559 W. 59th St

         

New York, NY 10019

 

         

Upper East Side Studio

         

406 East 91st Street

         

New York, NY 10128

 

(iii)

  

Franchisee contact info

  

Row House Holdings, Inc.

         

269 W. 23rd Street

         

New York, NY 10011

         

(646) 850-0540

         

Attention:

         

debra@rowhousenyc.com

 

(iv)

  

Royalty rate

  

No royalties until January 1,

         

2019. Then current royalty

 

 

2 There is technically no current “Stretch Lab” Franchise System in place, as the Stretch Lab Licensor is in process of preparing the FDD and related elements of such system. The Stretch Lab Licensor does license its Intellectual Property to the Stretch Lac Licensee in an analogous manner pursuant to the Stretch Lab License Arrangement.

 

Schedule 9.27


         

rate thereafter.

 

(v)

  

Market Fund Contribution

  

No contribution until the

    

Rate

  

opening of the “Row House”

         

Marketing Fund. Then current

         

Market Fund Contribution

         

Rate thereafter.

 

(vi)

  

Minimum royalty

  

No minimum royalties until

         

January 1, 2019. Then current

         

minimum royalties thereafter.

 

(vii)

  

Effective date

  

December 8, 2017

 

(viii)

  

Modification to renewal date

  

N/A

 

(ix)

 

  

Material modifications or waivers

 

  

N/A

 

The Stretch Lab License Arrangement is the only Franchise Agreement or analogous agreement of Stretch Lab Licensor. The following information required to be disclosed pursuant to Schedule 9.27(e) is applicable to the Stretch Lab License Arrangement.

 

Subsection

  

Information Requested

  

Disclosure

 

(i)

  

Franchise System

  

“Stretch Labs”3

 

(ii)

  

Franchisee Business Addresses

  

Venice Studio

         

512 Rose Ave,

         

Venice, CA 90291

 

         

Santa Monica Studio

         

808 11th Street,

         

Santa Monica, CA 90403

 

         

Beverly Studio

         

8317 Beverly Boulevard

         

Los Angeles, CA 90048

 

(iii)

  

Franchisee contact info

  

Stretch Lab, LLC

         

512 Rose Ave,

 

 

3 There is technically no current “Stretch Lab” Franchise System in place, as the Stretch Lab Licensor is in process of preparing the FDD and related elements of such system. The Stretch Lab Licensor does license its Intellectual Property in an analogous manner pursuant to the Stretch Lab License Arrangement.

 

Schedule 9.27


         

Venice, CA 90291

         

(310) 450-2510

         

Attention: Saul J. Janson

 

(iv)

  

Royalty rate

  

No royalties until November

         

15, 2018. 7% of gross sales

         

thereafter.

 

(v)

  

Market Fund Contribution Rate

  

No contribution until the

         

opening of the “Stretch Lab”

         

Marketing Fund. 2% of gross

         

sales thereafter.

 

(vi)

  

Minimum royalty

  

No minimum royalty until

         

November 15, 2018. Then

         

current minimums for the

         

Franchise System thereafter.

 

(vii)

 

  

Effective date

 

  

November 15, 2017

 

(viii)

 

  

Modification to renewal date

 

  

N/A

 

(ix)

  

Material modifications or waivers

 

  

N/A

 

The Yoga Six License Arrangement is the only Franchise Agreement or analogous agreement of the Yoga Six Licensor. The following information required to be disclosed pursuant to Schedule 9.27(e) is applicable to the Yoga Six License Arrangement.

 

Subsection

 

  

Information Requested

 

  

Disclosure

 

(i)

 

  

Franchise System

 

  

“Yoga Six”4

 

(ii)

  

Franchisee Business Addresses

  

Yoga 6 4-S Studio

         

16625 Dove Canyon Rd,

         

San Diego, CA 92127

 

         

Yoga 6 Carlsbad Studio

         

1905 Calle Barcelona Suite

         

238,

 

 

4 There is technically no current “Yoga” Franchise System in place, as the Yoga Six Licensor is in process of preparing the FDD and related elements of such system. The Yoga Six Licensor does license its Intellectual Property in an analogous manner pursuant to the Yoga Six License Arrangement.

 

Schedule 9.27


         

Carlsbad, CA 92009

 

         

Yoga 6 Carmel Valley Studio

         

4639 Carmel Mountain Rd # 102,

         

San Diego, CA 92130

 

         

Point Loma Yoga Studio

         

2850 Womble Rd #101,

         

San Diego, CA 92106

 

         

Yoga 6 Solana Beach Studio

         

437 S Highway 101, Suite 401,

         

Solana Beach, CA 92075

 

         

Yoga 6 Highlands Studio

         

5724 Oakland Ave,

         

St. Louis, MO 63110

 

         

Yoga 6 Des Peres Studio

         

12360 Manchester Rd #206,

         

St. Louis, MO 63131

 

(iii)

  

Franchisee contact info

  

Yoga 6 Company, LLC

         

512 Via De La Valle,

         

Solana Beach, CA 92075

         

Attention: Peter Barbaresi

         

Email:

         

pbarbaresi@yogasix.com

 

(iv)

  

Royalty rate

  

Seven percent (7%) once

         

effective pursuant to the terms

         

of the Yoga Six Purchase

         

Agreement (i.e. twelve (12)

         

months following the date of

         

the Yoga Six Purchase

         

Agreement)

 

(v)

  

Market Fund Contribution Rate

  

No contribution until the

         

opening of the “Yoga Six”

         

Marketing Fund. Then current

         

Market Fund Contribution

         

Rate thereafter.

 

(vi)

  

Minimum royalty

  

No minimum royalty until

 

Schedule 9.27


         

formal franchise agreements

         

are in place.

 

(vii)

  

Effective date

  

July 26, 2018

 

(viii)

  

Modification to renewal date

  

N/A

 

(ix)

 

  

Material modifications or waivers

 

  

N/A

 

 

Schedule 9.27


(f)

CycleBar:

The following franchisees are in default of their Site Acquisition Deadline, per Section 4.4 of their Franchise Agreement with CBF, see Section 4.25(m):

1.   Jay Smith & Jon Rod King

2.   Alexandria Pilon

3.   Barry Hamilton

4.   Bryna Podwoiski & Troy Kelsey

5.   Joe & Cassi Ruiz

6.   April Amory & Kevin Grubb

7.   Jenn Sims

8.   Kirk & Stefanie Nelson

9.   Jeff & Calleen Hodges

10. Lisa Lewis

11. Minty & Minesh Patel

12. John & Amber Reid

13. Zach Pettus, Jean Nitchals, Paul Jevnick & Jennifer Rondestvedt

14. Natalie Rix - Breathe Fitness, LLC

15. Todd & Julie Lotzer

16. Kevin & Elizabeth Anderson

17. Stacey Stelmach

18. Laura Aquino

19. Heath Trowell

20. Nadine & Andrew Smith

21. David Busker & David Batschelett - DB2 Fitness Two, LLC

22. John & Kiersten DiChiaro

23. Claire Powell

24. Leonard & Gail Barela & Jeremy Thornton

25. Jennifer “Becky” McGinnis & Jason Stubbs - Echappe LLC

26. Rob Janda

27. Shelley & Brandon Baca

28. Amy & Ryan Rath

29. Chuck Jones & Glenn Flessas

30. Heather Branstetter & Chuck Schneider - NextLevel Cycling LLC

31. Dione & Tom Bailey

32. John & Renee Duncan - JRD Jumping Corp.

33. Christine Wallin & Andrew Aiello - AGCM Enterprises

34. Joe Bonidy

35. Ken & Eileen Plotkin - Elite Enterprises of NY, Incorporated

36. Gary Dellovade

37. Peter DeLuca

38. Claire & Sheila Hayes

39. Rod Reyes

 

Schedule 9.27


40. Justin Beck, Jack Weston, Scott Weiss

41. Hayley Killam

The following franchisees are in default of their Opening Deadline, per Section 4.6 of their Franchise Agreement with CBF, see Section 4.25(m):

1.   Natalie Rix

2.   Catherine Straughan & Kimberley Drobny

3.   Jeff Bass

4.   Oliver Chipp

5.   Patrick Hickey

6.   Mark Washburn

7.   Marty & Craig Coffey

8.   Erin Schiller

9.   Kreg Boynton & Hollie Pool

10. Inga & Larry Pross

11. Loma and Bassam “Bobby” Ammar

12. Todd & Julie Lotzer

13. Mark Pastolove

14. Devika Kumar

15. Saul & Lisa Locker

16. Tony Virella

17. Scott Marshall

18. Kevin & Elizabeth Anderson

19. Stacey Stelmach

20. Laura Aquino

21. David Pelsue

22. Bob & Betty Korabik

23. Carin & Ian Zellman

24. Mark & Holly Mussmann - Desert Ventures CB1, LLC

25. Nadine & Andrew Smith

26. Macelon D’Sa, Neelpa D’Sa, and Melanie Dimemmo - MNM Ventures LLC

27. David Busker & David Batschelett - DB2 Fitness Two, LLC

28. John Wood - Challenger 728 LLC

29. Keith & Kelly Weier - K&K Fit 4 Life, Inc.

30. Rick Giese and Leann Sumner

31. Ryan “Buddy” Hardiman & Dennis Hardiman

32. Jayesh Patel & Jeetendra Patel - The Sharda Group, LLC

33. Claire Powell

34. Joanna and Erik Lundberg

35. Leonard & Gail Barela & Jeremy Thornton

36. Bhumika & Ankitaben Patel and Shaifali Gondaliya - Spinenergy, LLC

37. Jennifer “Becky” McGinnis & Jason Stubbs - Echappe LLC

38. Thomas Dixon Douglas           Motion2 Consulting LLC

39. Rob Janda

40. Lisa O’Rourke - Off Islander Inc.

41. Greg & Nuch Venbrux - Kraken Cycleworks LLC

 

Schedule 9.27


42. Chris Yates - Elevate Partners, LLC

43. Steve & Jane Zubrzycki

44. Christie Meyers

45. Nate Fennell & Chris Shill

46. Roger, Grant, & Lucas Hendren - RockStrong Texas LLC

47. Chris Andras & Mike Silas

48. Shelley & Joseph Jonietz - Fast Gear, LLC

49. Shelley & Brandon Baca

50. Liz Hatch & Tom Epstein - Avant-garde Fitness

51. Amy & Ryan Rath

52. Chuck Jones & Glenn Flessas

53. Heather Branstetter & Chuck Schneider - NextLevel Cycling LLC

54. McLean Coble & David Noffsinger

55. Travis & Debbie Jacobson - TDW Properties, LLC

56. Dione & Tom Bailey

57. Lee Singer & Ronnie Singer

58. John & Renee Duncan - JRD Jumping Corp.

59. Christine Wallin & Andrew Aiello - AGCM Enterprises

60. Joe Bonidy

61. Ken & Eileen Plotkin - Elite Enterprises of NY, Incorporated

62. Mark Schneider

63. Gary Dellovade

64. Peter DeLuca

65. Claire & Sheila Hayes

66. Rod Reyes

67. Justin Beck, Jack Weston, Scott Weiss

68. Hayley Killam

The following franchisees are in default of their Development Agreement with CBF, see Section 4.25(m):

1.   Bill McComb & Peter Wolf - CICLO Management, LLC

2.   Joelle Bouhadana, Joseph Bouhadana, Motty Klainbaum, Danny Schactel, Mike Shalom - CYCLE26 LLC

3.   JP Green & Michael Olander - JM Cycle, LLC

4.   David Davis (Jake Davis, Jon Krumdieck) - MdG Partners LLC

5.   J. Scot McBride & Chris Sommer

6.   Tosten Schermer & Bob and Catherine Lee - ScherLeeUBike, LLC

7.   John Janszen & Michael Olander - JCM Kentucky Cycle, LLC

8.   Ryan “Buddy” Hardiman & Dennis Hardiman - GGM UTC LLC

9.   Shirelle & Joel Vilmenay - Crescent City Cycle, LLC

10. Marc & Lisa Palmer - Charlotte Cycle, Inc.

11. Joe Rothchild - GHM CB, LLC

12. Joe & Mary Laurie Cece

13. Brad Spivey & Trish Harrison

14. Jeff Wayne - CB Michigan, LLC

15. Don Dasher & Lisa Hazen

 

Schedule 9.27


16. Patty Harte

17. Lee Oesterling & Kirsten Rickers - Atlanta Cycle Studios, LLC

18. Barbara & Jonathan Fleming - Corones, Inc.,

19. Lee & Christine Williams

20. Katie Kannapell & Fred Ryser - PACKWOLF, LLC

21. Paul & Anita Schnapp - Schnapp Enterprises, Inc.

22. Mike Harris

23. Kathleen Boss and Stephen Pineault

From time to time, LBF franchisees may be in technical breach of the franchise agreements. LBF exercises its discretion in pursuing its rights and remedies in responding to such breaches. Currently LBF is aware of the following breaches, none of which it regards as material:

Below is a list of franchisees/location that have not opened within the 9-month time frame set forth in their respective franchise agreements:

 

Franchisee    Territory    Franchise
Agreement Date
   Opening Deadline
Daniel van Zeyl    Miami    FL   

12/28/2016

 

  

09/24/2017

 

Lezlie Snoozy-Kaitfors & Michael Kaitfors    Phoenix    AZ    01/20.2017    10/17/2017
         
Carl Kirkham Peacock & Pamela Tanase    Santa Barbara    CA    04/20/2017    01/15/2018

 

Schedule 9.27


Club Pilates:

From time to time, CPF franchisees may be in technical breach of the franchise agreements. CPF exercises its discretion in pursuing its rights and remedies in responding to such breaches. Currently CPF is aware of the following breaches, none of which it regards as material:

Below is a list of the franchisees/locations that have not opened within the 6-month time frame set forth in their respective franchise agreements/area development agreements:

 

Real Estate Analysis

               

As

                

of:

  6/18/2018        Franchisee      
             
    Studio Name   Sub-Territory
Name
   State   Last Name    First Name    Franchise
Agreement
Date
     Date
Required
to be
Open by
 
             

1

  Club Pilates Stamford #3   New Canaan    CT   Ackerman    Scott      10/25/16        08/25/17  
             

2

  Club Pilates Manhattan 2   Greenwich Village    NY   Acquista    Dominick      01/31/17        01/31/18  
             

3

  Club Pilates Renton        WA   Adams    Nikki/Paul      02/18/15        12/04/17  
             

4

  Club Pilates Montclair        NJ   Angelis / DeGarcia    Dimitrios/Helen / Arnold/Amy      04/04/16        10/04/17  
             

5

  Club Pilates Chicago #3 (Asbury)   Northbrooke    IL   Asbury    Janet      10/26/16        04/26/18  
             

6

  Club Pilates Pasadena   Sierra Madre - 75 walnut    CA   Bailey    Rebecca      02/27/15        12/31/16  
             

7

  Club Pilates La Canada/Flintridge        CA   Bailey    Rebecca      02/27/15        12/31/17  

 

Schedule 9.27


             

8

  Club Pilates Chicago 2 (Baldwin)   Old Town - W. North ave.    IL   Baldwin    Nathan & Erica      01/23/17        01/23/18  
             

9

  Club Pilates Dallas 4   Westover Hills    TX   Becker    Lance & Sara      11/14/17        05/15/18  
             

10

  Club Pilates (Bereny # 3)   Woodland Hills    CA   Bereny    Robert      06/10/15        12/04/16  
             

11

  Club Pilates Simi Valley #3   La Conchita    CA   Bloore/Drury    Ken / Allison      08/19/16        02/19/18  
             

12

  Club Pilates Parker   Parker    CO   Bosson    Cathy      07/28/17        01/28/18  
             

13

  Club Pilates Minneapolis #4   Eden Prairie    MN   Bounds    Steve & Angela      09/29/16        05/29/18  
             

14

  Club Pilates Plano   Plano    TX   Buck    Chris and Nathalie      04/12/16        04/12/17  
             

15

  Club Pilates Allen        TX   Buck    Chris and Nathalie      04/12/16        10/12/17  
             

16

  Club Pilates Richmond #2   Cary    VA   Burleigh    Bryan      04/10/17        04/10/18  
             

17

  Club Pilates Colorado (Busse) 1   Lowry    CO   Busse    Mary      08/15/17        02/15/18  
             

18

  Club Pilates Santa Rosa TBD 2   Rohnert Park    CA   Campton    Lois      05/22/17        05/22/18  
             

19

  Club Pilates Torrance #3   Torrance    CA   Castro    Savannah & Maya      11/04/16        05/04/18  
             

20

  Club Pilates Kansas City (Mollie/Corey Cavanaugh)   Kansas City    KS   Cavanaugh    Mollie & Corey      11/30/17        05/31/18  
             

21

  Club Pilates Norfolk 2 (Celia)   Williamsburg    VA   Celia    Joe      04/10/17        04/10/18  
             

22

  Club Pilates La Jolla   La Jolla    CA   Clements/Boos    Chris/Brianna      06/30/16        08/30/17  
             

23

  Club Pilates Asheville 1(Cropp) #2   Woodfin    NC   Cropp    Kevin & Hadley      04/07/17        04/07/18  
             

24

  Club Pilates Crofton        MD   Cutchall    Laura      10/21/15        10/21/16  

 

Schedule 9.27


             

25

  Club Pilates Central NJ #2   East Brunswick    NJ   Davis    Brennan      05/26/17        05/26/18  
             

26

  Club Pilates Winchester 1   Waltham    MA   Day    Tim      06/20/17        12/20/17  
             

27

  Club Pilates Naples 1 (Deutsch)   Naples    FL   Deutsch    Adam      02/15/17        07/15/17  
             

28

  Club Pilates Naples 2 (Deutsch)   Naples North    FL   Deutsch    Adam      02/15/17        12/15/17  
             

29

  Club Pilates Naples 3 (Deutsch)   Bonita Springs    FL   Deutsch    Adam      02/15/17        05/15/18  
             

30

  Club Pilates Miami #3 (Elgarresta)   Pinecrest    FL   Elgarresta / Harper    Ed / Christina      10/11/16        04/11/18  
             

31

  Club Pilates Woodlands   Creekside Woodlands    TX   Fichaud / Bryan    Chris / Susan      11/30/15        05/30/17  
             

32

  Club Pilates Nashville #4   North Gulch    TN   Fielder    Tom      09/23/16        05/23/18  
             

33

  Club Pilates Nashville #3   Maryland Farms    TN   Fielder    Tom      09/23/16        12/23/17  
             

34

  Club Pilates Austin #3 (Fraser)   Garrison Park    TX   Fraser    Theresa & Glenn      11/22/16        05/22/18  
             

35

  Club Pilates Tucson #3   Tanque Verde    AZ   Garrison    Kathy      10/06/16        04/06/18  
             

36

  Club Pilates Scottsdale #3   Tatum & Shea    AZ   Gatzemeier    Don      05/17/16        05/17/17  
             

37

  Club Pilates Brooklyn 2   Williamsburg    NY   Gevinski    Sarah      11/30/17        05/30/18  
             

38

  Club Pilates Bethesda 3   Forest Hills    MD   Goldberg    Sue / Phil      07/28/17        12/28/17  
             

39

  Club Pilates New York #2 (Goldenberg)   Bay Ridge    NY   Goldenberg    Louisa      12/12/16        12/12/17  
             

40

  Club Pilates New York #3 (Goldenberg)   Sheepshead Bay    NY   Goldenberg    Louisa      12/12/16        06/12/18  
             

41

  Club Pilates Orlando (Colonial)   Colonial Plaza    FL   Goldman    Christine      04/15/16        10/15/17  

 

Schedule 9.27


42      Club Pilates Jacksonville #3    Pointe Verde    FL    Graham    Rick & Dawn    08/23/16    02/23/18
43    Club Pilates DC #3    McLean    VA    Grams    Michael    10/12/16    04/12/18
44    Club Pilates Santa Monica    Marina del Rey    CA    Griffin    Jim    05/31/16    05/31/18
45    Club Pilates Maryland #2    Germantown    MD    Grover    Jan & Chuck    11/16/16    11/16/17
46    Club Pilates Maryland #3    Urbana?Senaca    MD    Grover    Jan & Chuck    11/16/16    05/16/18
47    Club Pilates Central NJ (Guirguess) 1    West Windsor    NJ    Guirguess    David    08/17/17    02/17/18
48    Club Pilates Midtown Miami         FL    Gutierrez / Peck    Maria Isabell / Tania    02/24/16    08/24/17
49    Club Pilates Santan         AZ    Guzick    Bill / Jennifer    03/31/16    09/30/17
50    Club Pilates Piper Glen         NC    Harris    Doug    05/31/16    12/01/17
51    Club Pilates Austin #3 (Hernandez)    Georgetown    TX   

Hernandez/

Lindner

   Hector/Molly    11/23/16    05/23/18
52    Club Pilates Katy #2    Katy    TX    Heslop    Pam    07/05/16    01/05/17
53    Club Pilates Jersey City    Fairfield    NJ    Horvath    Emese    06/21/16    12/21/17
54    Club Pilates DFW 2 (Howard)    Rayzor    TX    Howard    Kendall    07/28/17    05/28/18
55    Club Pilates Baltimore #3 (Kay)    Canton    MD    Kay / Bateman    Karla / Liana    12/16/16    06/16/18
56    Club Pilates Ft. Lauderdale #3    East Boca    FL    Kennedy    Kelly    09/27/16    03/27/18
57    Club Pilates North Henderson    Town / Country    NV    Kim    Wesley    07/28/17    01/28/18
58    Club Pilates Tampa 2(Erickson/Kitchen)    Palm Harbor    FL    Kitchen/Erickson    Kim/Joe    05/19/17    05/19/18

 

Schedule 9.27


59      Club Pilates Los Gatos    Cupertino    CA    Ko/Wu    Ken/Jessie    03/16/16    09/16/17
60    Club Pilates Chicago 3(Kohn)    Elmhurst    IL    Kohn    Eric & Kristin    03/08/17    06/08/18
61    Club Pilates Calgary    Calgary    CA N    Kot    Danielle    11/20/17    05/20/18
62    Club Pilates Red Bank NJ #2    Red Bank    NJ    Laden    Gary    05/26/17    05/26/18
63    Club Pilates San Mateo         CA    Lance    Renata and Sean    12/15/16    06/15/17
64    Club Pilates Atlanta #3 (Ledford)    Midtown    GA    Ledford    Mandy    11/30/16    05/30/18
65    Club Pilates Alexandria #2    Fairfax    VA    Lee    Mindy    04/18/17    03/18/18
66    Club Pilates Alexandria #1    Alexandria_Kingsto wne    VA    Lee    Mindy    04/18/17    09/13/17
67    Club Pilates Long Island #2    Roswell    NY    Lo    David    10/26/16    10/26/17
68    Club Pilates Long Island #3    Manhasset    NY    Lo    David    10/26/16    04/26/18
69    Club Pilates Chicago #2 (London)         IL    London    Larry/Crystal    05/25/17    05/25/18
70    Club Pilates Philadelphia 2(Longo)    Exton    PA    Longo    Randy & Margaret    02/22/17    02/22/18
71    Club Pilates Boise         ID    Louis    Laura    12/22/16    06/22/17
72    Club Pilates Portland 2 (McCartney)    West Linn    OR    McCartney    Alyssa    03/03/17    03/03/18
73    Club Pilates St. George 1         UT    McClure    Krista    06/16/17    12/16/17
74    Club Pilates Emeryville    Oakland    CA    Miller    Jerry & Melissa    03/18/16    03/18/17
75    Club Pilates Berkeley         CA    Miller    Jerry & Melissa    03/18/16    09/18/17

 

Schedule 9.27


76      Club Pilates Boston #3    Newton    MA    Miller/Rizzo    Mike & Tammy    08/25/16    11/25/17
77    Club Pilates Boston #4    Brooklin    MA    Miller/Rizzo    Mike & Tammy    08/25/16    04/25/18
78    Club Pilates Miami #3 (Mochon)    Biscayne    FL    Mochon / Rosentgberg    Daniela / Horacio    09/11/16    03/11/18
79    Club Pilates Plano #2 (Mullins)         TX    Mullins    John    05/22/17    05/22/18
80    Club Pilates Seattle 2 (Nicholson)    425 Fairview    WA    Nicholson    Candi    03/14/17    03/14/18
81    Club Pilates Vancouver         CA N    Oussov    Ilia / Serguei    11/24/16    05/24/17
82    Club Pilates Mid-Wilshire         CA    Ovakimian    Sarkis / Esther    04/10/17    04/10/18
83    Club Pilates Kenwood         OH    Pallatroni    Bob    03/17/16    03/17/17
84    Club Pilates Hyde Park         OH    Pallatroni    Bob    03/17/16    09/17/17
85    Club Pilates Lakewood         CA    Park    Bora    08/10/16    10/15/17
86    Club Pilates Boston (Peterson)    Hingham    MA    Peterson    Jennifer    06/30/17    12/30/17
87    Club Pilates Denham         MA    Peterson    Jennifer    02/15/17    08/15/17
88    Club Pilates Ravenswood    Lakewood    IL    Phelps    Abby    03/30/16    09/30/17
89    Club Pilates New Tampa         FL    Philyaw    Nathan    06/03/16    12/03/17
90    Club Pilates Marin #2    San Rafael    CA    Poletti    Natalie    08/30/16    08/30/17
91    Club Pilates Marin #3    San Anselmo    CA    Poletti    Natalie    08/30/16    03/02/18
92    Club Pilates Atlanta (Rebala)    Swanee    GA    Rebala    Sekhar    08/31/17    02/28/18

 

Schedule 9.27


93    Club Pilates Westchester County #3    New Rochelle    NY    Rhyu    Heather    07/15/16    01/15/18
94    Club Pilates Seal Beach 2 (Rubin)    Huntington Beach    CA    Rubin/Mitchell    Michael/Alyssa & Kyle    10/19/17    04/20/18
95    Club Pilates New Mexico #2 (Rule)    ABQ -6410 Coors    NM    Rule    Brian / Jessica    05/22/17    05/22/18
96    Club Pilates Portland #3    Tanasborne    OR    Sander    Scott & Misty    08/25/16    02/25/18
97    Club Pilates Chicago #3    Huntley    IL    Schlichting    Steve & Robin    08/23/16    02/23/18
98    Club Pilates Texas 3 (Schreiver)    Webster    TX    Schriever    Delma / Rick    12/14/16    06/14/18
99    Club Pilates Milwaukee (Schuda)    AMLI - Collaborative    IL    Schuda    Michael & Anjelica    09/07/17    03/07/18
100    Club Pilates Dublin       CA    Shiraki    Robert / Jessica    02/15/16    02/15/18
101    Club Pilates Rancho Cucamonga         CA    Shiraki    Robert / Jessica    02/15/16    08/15/17
102    Club Pilates Pleasant Hill    Pleasant Hill    CA    Siva/Swift    Jan/Darrel    02/23/16    02/17/17
103    Club Pilates Piedmont         CA    Siva/Swift    Jan/Darrel    02/23/16    08/16/17
104    Club Pilates Sacramento #2 (Smith)    Davis    CA    Smith    Katie    05/23/17    05/23/18
105    Club Pilates Dallas #3    Keller    TX    Springer    Bobby    09/28/16    03/28/18
106    Club Pilates SFO-Financial District       CA    Srivastava    Amit & Seema    05/20/16    05/20/17
107    Club Pilates SFO-Mission District         CA    Srivastava    Amit & Seema    05/20/16    11/20/17
108    Club Pilates Milwaukee    Brookfield    WI    Stanford    Jennifer & Mitchell    11/21/17    05/21/18
109   

Club Pilates San Antonio 2 (Stephens)

   Shavano Heights    TX    Stephens    Michelle    06/15/17    06/15/18

 

Schedule 9.27


110    Club Pilates Sherman Oaks (Katya)         CA    Stromblad    Katya    10/31/16    02/28/18
111    Club Pilates Rockville 1    Sunshine/Olney    MD    Swingler    Kevin    08/28/17    02/28/18
112    Club Pilates Murrieta    Wildomar    CA    Tehranchi    Shahin    07/22/16    03/14/18
113    Club Pilates San Pedro    San Pedro    CA    Thomas / Davis    Joni / Tiffany    11/04/16    05/04/17
114    Club Pilates Truong #3    Eastvale    CA    Truong    Amy / Anthony    02/26/16    08/26/17
115    Club Pilates Corona    Corona Crossing    CA    Truong    Amy / Anthony    02/26/16    02/26/17
116    Club Pilates Shorewood    Oakland Center    WI    Tsuchiyama    Robert & Beth    05/11/16    11/11/17
117    Club Pilates New Jersey #3    Tenafly    NJ    Untener    Scott    09/23/16    03/23/18
118    Club Pilates Mountain View         CA    Venkatesan/Anant han    Hema & Venkat    11/20/15    05/20/17
119    Club Pilates Santa Clara       CA    Venkatesan/Anant han    Hema & Venkat    11/20/15    11/20/16
120    Club Pilates DTLA #3    Financial District    CA    Violas    Stephanie    04/20/17    04/20/18
121    Club Pilates Radnor       PA    Waller    George & Kris    02/24/17    02/24/18
122    Club Pilates OC #3    Irvine    CA    Watson/Lombardi /Nash    Keely/Ed/Jeff    11/16/16    05/16/18
123    Club Pilates Houston #3 (Wells)    Humble    TX    Wells    Daniela & David    11/16/16    05/16/18
124    Club Pilates Long Island #2 (Wolk)    lowry_Woodbury Villag    NY    Wolk    David    11/09/16    11/09/17
125    Club Pilates Long Island #3 (Wolk)    Syosset    NY    Wolk    David    11/09/16    05/09/18
126    Club Pilates Atlanta #2    Roswell    GA    Worley    Mark    08/23/16    02/23/18

 

Schedule 9.27


127    Club Pilates Manhattan (Yang) 1    Upper East Side    NY    Yang / Barletta    John / Renee    08/09/17    02/09/18
128    Club Pilates Tampa (York)    #2 orlando    FL    York/Schlobohm    Shaun/Zach    05/25/17    05/25/18

 

Schedule 9.27


(g)

@ the LB:

“@ the LB” Franchise Disclosure Document – Issuance Date 9/29/16

“@

the LB” Franchise Disclosure Document – Issua(nce Date 5/22/17

“@ the LB” Area Rep. Franchise Disclosure Document – Issuance Date 9/29/16

“@ the LB” Area Rep. Franchise Disclosure Document – Issuance Date 5/22/17

Shred415:

“Shred415” Franchise Disclosure Document – Issuance Date 7/10/17

“Shred415” Area Rep. Franchise Disclosure Document – Issuance Date 7/31/17

“Shred415” Franchise Disclosure Document – Issuance Date 07/10/2017_Amended 10/09/2017

CycleBar:

United States

“CycleBar” Franchise Disclosure Document – Issuance Date 1/06/2015

“CycleBar” Franchise Disclosure Document – Issuance Date 1/06/2015 as amended 2/08/2016

“CycleBar” Franchise Disclosure Document – Issuance Date 4/19/2016

“CycleBar” Franchise Disclosure Document – Issuance Date 4/28/2017

“CycleBar” Franchise Disclosure Document (Area Rep) – Issuance Date 4/28/2017

“CycleBar” Franchise Disclosure Document– Issuance Date 4/12/2018

Canada

“CycleBar” Franchise Disclosure Document (Canada) – Version Date – 11/12/2015

“CycleBar” Franchise Disclosure Document (Canada) – Version Date – 12/07/2015

“CycleBar” Statement of Material Change – Dated – 12/14/2015

“CycleBar” Franchise Disclosure Document (Canada) – Version Date – 1/26/2016

“CycleBar” Statement of Material Change – Dated – 1/26/2016

 

Schedule 9.27


“CycleBar” Franchise Disclosure Document (Canada) – Version Date – 2/29/2016

“CycleBar” Franchise Disclosure Document (Canada) – Version Date – 5/16/2016

Club Pilates:

CPF’s 2015 Franchise Disclosure Document (as amended).

CPF’s 2016 Franchise Disclosure Document.

CPF’s 2017 Franchise Disclosure Document

CPF Franchise Disclosure Document issued April 27, 2017, as amended on May 3, 2017

(h)

 

  1.

The License Arrangement was not entered into pursuant to an FDD or other requirements under applicable Franchise Laws.

  2.

The Row House License Arrangement was not entered into pursuant to an FDD or other requirements under applicable Franchise Laws.

  3.

The Stretch Lab License Arrangement was not entered into pursuant to an FDD or other requirements under applicable Franchise Laws

(i)

 

  1.

The Yoga Six License Arrangement was not entered into pursuant to an FDD or other requirements under applicable Franchise Laws.

Pure Barre

Agreement between PB Franchising LLC and 2441781 Ontario, Inc., dated November 26, 2014, as amended March 29, 2015, under which the company retained the services of the numbered company to provide assistance in connection with the sales of and services to franchisees and prospective franchisees in Ontario, Canada.

From time to time, the Company utilizes Franchisees to provide training/teaching services (both in person and on video). Certain Franchisees also serve on the Company’s strategic development committee to assist with the development and implementation of new content offerings. In each case, these Franchisees are compensated for their services.

(j)

 

Schedule 9.27


Stretch Lab Franchise LLC v. Stretch Lab LLC et al.

CycleBar:

 

  1.

Occasionally, CBF has become aware of unauthorized or infringing use of the Owned Intellectual Property by third parties. CBF has pursued termination of such unauthorized or infringement use and have instructed such third parties to immediately cease such activities. Per internal policy CBF sends cease and desist letters for infringements upon its marks.

  a.

CycleBar Cease and Desist to Ellen Gessell dated September 15, 2015 regarding the use of CycleBarSarasota.com. In September 2015, the Company’s counsel notified Ellen Gesell of her unauthorized registration of CYCLEBARSARASOTA.COM on behalf of Reid Withrow and ON1 Enterprises, LLC. Ms. Gesell denied involvement in the registration, and Mr. Withrow refused to transfer ownership of the domain to the Company. Mr. Withrow ceased use of the domain, which was believed to be inactive until September 8, 2017, when Company representatives visited the site, which appeared to be active, and immediately sent a takedown notice to the site hosting service.

  b.

CycleBar Cease and Desist to Cycle Barre dated May 21, 2015 regarding use of phonetically similar mark Cycle Barre. Tara Del Russo, the owner of Cycle Barre agreed to change the name of her studio.

  c.

CycleBar Cease and Desist to CycleBarL.A. LLC, Dated January 30, 2015 regarding CycleBarLA. Ruben Martinez ceased using the CycleBar name and rebranded his studio. CycleBar Cease and Desist to Jason Weiner dated December 21, 2015, regarding cyclebarla on Groupon. Groupon agreed to take down CycleBarLA after notification from Ruben Martinez.

  d.

CycleBar Cease and Desist to Matthew Saunders dated October 22, 2014 regarding the use of www.rasamaya.com /pages/cycle-bar. Attorney for Rasamaya notified the Company that it agreed to change name.

  e.

CycleBar Cease and Desist to Edir Holdings, LLC dated October 21, 2016, regarding Premium Indoor Cycling. No actions have been taken after the response letter from Ride Enterprises, LLC was received on October 25, 2016. The Company does not use Premium Indoor Cycling as a trade name.

  f.

CycleBar email correspondence dated October 7, 2015 with Dan Daszkowski regarding unauthorized use of CycleBar mark. Franchise Broker agreed to stop using Company marks to attempt to sell franchises.

  g.

CycleBar Cease and Desist to Integrated Soul, Inc. d/b/a Push Fitness dated March 11, 2016 regarding use of phonetically similar mark Cycle Barre. Letter received from Jack Silver, attorney for Integrated Soul, Inc., dated May 11, 2016, stating Integrated Soul agrees to suspend the use of the name “Cycle Barre” for one of its workout classes and change the name.

 

Schedule 9.27


  2.

On July 13, 2015, Beats Electronics LLC (“Beats”) filed a notice of opposition with the USPTO Trademark Trial and Appeal Board (“TTAB”) (Proceeding No. 91222777) to the registration sought by the Company to the mark CYCLEBEATS, implying that the Company’s use of the mark infringed Beats’ family of BEATS marks.    On or about September 13, 2016, the Company and Beats settled the matter, whereby Beats agreed, among other things, not to oppose registration of CYCLEBEATS and the Company agreed, among other things, not to use the mark in connection with certain goods and services.

  3.

StarCycle Matter.

  4.

The Company entered into a Settlement Agreement with SoulCycle Inc. on February 25, 2016, pursuant to which the Company agreed to modify its wall mantra in exchange for the release of claims of infringement of SoulCycle Inc.s trade dress or copyrighted design by such wall mantra (the “SoulCycle Matter”).

  5.

Alleged Infringement of “Clip in Rock Out” and Rose Spear. The Company received a letter dated August 2, 2016 from counsel for Ride 360, LLC, d/b/a Revolution Studio, claiming that the CycleBar Vintage Park studio used “Clip In, Rock Out”, a registered trademark of Ride 360, LLC and demanding that the Company and its affiliates cease and desist from using that slogan and requesting the Company terminate the employment of Rose Spear due to alleged violation of certain employment agreements. CBF and the CycleBar Vintage Park studio agreed to discontinue the use of the Clip In, Rock Out phrase. Additionally, after investigation CycleBar Vintage Park learned that it had never employed a person named Rose Spear and that the cease and desist was incorrectly sent to CycleBar Vintage Park instead of CycleBar Katy, where Rose Spear was at one time an employee. CBF contacted CycleBar Katy and told this franchisee that it must not employ staff with existing noncompete agreements and reiterated the same to Ride 360’s attorney. CBF supplied Ride 360’s attorney with the contact information for CycleBar Katy and the Company considers this matter concluded.

Concluded Litigation

 

  1.

859 Boutique Fitness Matter (Fayette Circuit Court of the Commonwealth of Kentucky, case number 15-CI-4607 (filed December 22, 2015), United States Court of Appeals for the Sixth Circuit, Court of Appeals Docket # 16-6427 (filed September 20, 2016). 859 Boutique Fitness, LLC, a former prospective franchisee, brought an action alleging, inter alia, breach of contract in Kentucky state court. This action alleged that the CBF made a franchise offer to 859, which was accepted and CBF breached this contract by refusing to execute the franchise agreement. All allegations have been dismissed with prejudice, and the dismissal was affirmed by the Sixth Circuit.

 

  2.

Kamdar Settlement.

 

  3.

Beats Settlement

 

  4.

SoulCycle Matter

 

Schedule 9.27


  5.

RCG Lease Settlement

 

  6.

Settlement Agreement dated September 13, 2016, by and between CB IP, LLC and Beats Electronics, LLC (“Beats Settlement”)

 

  7.

Kamdar Settlement.

 

  8.

Reacquisition and Settlement Agreement dated June 1, 2016, by and between CBF and Kira Knickrehm

 

  9.

Reacquisition and Release Agreement dated February 24, 2016, by and between CBF and Pamela Lambie

 

  10.

Termination and Release Agreement dated December 1, 2015, by and between CBF and ATX Cycling

 

  11.

Termination and Release Agreement dated May 8, 2017, by and among CBF, Clementine Goutal and the estate of Andres Rodriguez

 

  12.

Termination and Release Agreement dated May 4, 2016, by and between CBF and Drury Lane Ventures, Inc.

 

  13.

Business Loan and Promissory Note Agreements (Loan No: 820112803) dated January 20, 2017, by and among St. Gregory Development Group, LLC: J3T Logistics, LLC; CBF; LB Hyde Park, LLC; and CoWorking Cincinnati, LLC and First Financial Bank (“First Financial Loan Agreements”)

 

  14.

Settlement Agreement dated September 20, 2017 by and between RCG-Cincinnati, LLC and CycleBar Franchising, LLC and St. Gregory Development Group, LLC in the amount of one-hundred five thousand dollars and zero cents ($105,000.00): (“RCG Lease Settlement”). The RCG Lease Settlement was because of a dispute regarding the lease by and between RCG-Cincinnati, LLC (“Landlord”) and CycleBar Franchising, LLC (“Tenant”) dated August 31, 2015 for the premises known as “Store No. 7020C” and located at the “Shoppes at Kenwood” with an address of 7720 Montgomery Road, Suite 7720C, Cincinnati, Ohio 45236. The first settlement payment in the amount of $30,000.00 was made on September 25, 2017 and the second and final payment of $75,000.000 was made on September 26, 2017. CycleBar Franchising, LLC and St. Gregory Development Group, LLC have agreed to pay the RCG Lease Settlement in equal portions of $52,500.

 

  15.

On December 31, 2016, St. Gregory Development Group deferred $306,000 owed to it by CBF for services rendered under the STG and CycleBar Franchising Services Agreement dated January 1, 2015. (“STG Deferred Payment Agreement”)

 

Schedule 9.27


  16.

On December 31, 2016 J3T Logistics deferred $445,783 owed to it by CBF for 2016 Groupon receipts due under the J3T and CycleBar Franchising Services Agreement dated April 20, 2015. CBF applied $93,789.81 to outstanding payables due to J3T Logistics, while the remaining $351,993.19 was posted as accounts receivable due from J3T Logistics to CBF per a deferred payment agreement. (“J3T Deferred Groupon Payment Agreement”)

 

  17.

On March 31, 2017 J3T Logistics deferred $410,536.45 owed to it by CBF for services rendered under the J3T and CycleBar Franchising Services Agreement dated April 20, 2015. (“J3T Deferred Payment Agreement”)

 

  18.

Settlement Agreement dated October 14, 2016, by and among CBF and Tejal Kamdar, Jason J. Snyder and Meera B. Kamdar (“Kamdar Settlement”) Kamdar and Snyder Matter. CycleBar franchisees Tejal Kamdar, Meera Kamdar and Jason Snyder brought an action alleging, inter alia, breach of contract and breach of the California Franchise Investment Law. A settlement in the amount of $90,000.00 was reached. The first installment of $45,000.00 was paid and the second and installment of $45,000.00 is due on or before October 5, 2017.

 

  19.

Outstanding bills for legal services provided by DLA Piper LLP through September 25, 2017, in the amount of $49,634.07.

 

  20.

Outstanding bills for legal services provided by Ulmer & Berne LLP through September 25, 2017, in the amount of $4,435.89.

 

  21.

CBF has posted the following bonds in the states of North Dakota, Washington and Illinois as required to offer or sell franchises therein:

 

  22.

North Dakota Franchisor Surety Bond

 

  23.

Hartford Fire Insurance Company

 

  24.

Bond No. 35BSBHH2757

 

  25.

Issuance Date: 3/1/17

 

  26.

$125,000.00

 

  27.

Renewable on an annual basis

 

  28.

State of Washington Franchisor Surety Bond

 

Schedule 9.27


29. Hartford Fire Insurance Company

 

  a.

Bond No. 35BSBHF7477

 

  b.

Issuance Date: 7/17/15

 

  c.

$100,000.00

 

  d.

Renewable on an annual basis

30. Illinois Franchisor Surety Bond

31. Hartford Fire Insurance Company

 

  a.

Bond No. 35BSBHS0409

 

  b.

8/17/17

 

  c.

$148,500.00

 

  d.

Paid 4 years’ worth of premiums

Club Pilates:

1. The Kita Settlement.

2. The Default Letters.

Shread415:

The state of Washington has imposed a financial impoundment on S415 for the sale of franchises to residents of Washington, or Shred415 franchises which will be located within the state of Washington. Pursuant to WAC 460-80-460, S415 has elected to defer the receipt of franchise fees from Washington franchisees, until such time as those franchisees open their business to the public.

Pure Barre:

 

Schedule 9.27


1.

Pursuant to that certain Amendment No. 1 to Franchise Agreement dated as of January 16, 2015, by and between PB Franchising, LLC, elleon, LLC, as Franchisee, and Noelle Zane, the parties acknowledged that the Franchisee is the successor-in-interest to own and operate the studio located at 1701 Walnut Street in Philadelphia and amended the Territory in the Franchise Agreement as follows: (i) until the second anniversary of the Effective Date of the Franchise Agreement, the Territory will be the larger area outlined in orange on the map attached as Exhibit A to the Franchise Agreement; (ii) if a second studio has not been opened within this larger area before the Effective Date of the Franchise Agreement, the Territory will automatically and without any further action be revised to incorporate only the smaller area outlined in black on the map; (iii) if a second studio is opened by the second anniversary of the Effective Date of the Franchise Agreement, the parties will agree on an appropriate territory for each studio that will encompass the entire area outlined in orange on the map; and (iv) PB Franchising, LLC agrees it will not change the Territory as it exists under the Amendment or the territory under the Franchise Agreement for the second studio as provided for in the Amendment, if signed, upon renewal of such agreements.

 

2.

Pursuant to that certain Amendment No. 1 to Franchise Agreement dated as of February 11, 2015 by and between PB Franchising, LLC, Portside Group LLC, as Franchisee, and Rebecca McCarthy, Guarantor, the parties replaced the existing Long Island City Search Area Map with the Greenpoint Search Area Map. Despite the replacement of the Search Area, the Company granted the Franchisee the right to acquire the franchise and to enter into a franchise agreement to develop a Pure Barre Studio in the Long Island City Search Area, provided that the Franchisee meets the following conditions: (i) the Franchisee must sign a lease for an approved Location within the Greenpoint Search Area within three months after the date of the Amendment, (ii) the Franchisee must comply with the terms of the franchise agreement and (iii) the Franchisee or an approved affiliate must sign, on or before December 15, 2015, a lease for a location approved by the Company within the Long Island City Search Area and the Company’s then-current form of franchise agreement and related documents that will govern the Franchisee’s development and operation of a Pure Barre Studio at the location. If the Franchisee does not timely comply with the requirements in (iii) above, the Franchisee will no longer have rights to enter into, and the Company will have no obligation to allow the Franchisee to enter into, a franchise agreement for the Long Island City Search Area.

 

3.

In accordance with the structure of PB Franchising LLC’s franchise program (as described in the FDD), it allows qualified prospective franchisees to sign an Option Agreement prior to signing a Franchise Agreement. The Option Agreement allows the prospect to search for potential sites in a defined area and gives the prospect, within the specified time, the option to enter into a franchise agreement for a specific approved site in the defined area. Following are the outstanding Option Agreements:

 

  a)

Option Agreement dated as of April 14, 2015, by and between PB Franchising, LLC, Jillian LaMonica and Patrick LaMonica (North Plano, TX).

 

Schedule 9.27


  b)

Option Agreement dated as of April 9, 2015, by and between PB Franchising, LLC, Tanya Schneider and Zackary Ross (Kitsilano, Vancouver, BC).

  c)

Option Agreement dated as of April 22, 2015, by and between PB Franchising, LLC and Nicole Hines (San Tan Village, AZ).

 

  d)

Option Agreement dated as of April 14, 2015, by and between PB Franchising, LLC, Kathryn L. Lowder and Tiffany P. Bell (East Montgomery, AL).

  e)

Option Agreement dated as of April 23, 2015, by and between PB Franchising, LLC, Moana Tucker and Marshall Tucker (Gainesville, FL).

  f)

Option Agreement dated as of April 21, 2015, by and between PB Franchising, LLC, Jenna McGill and Matt McGill (Kingstowne, VA).

  g)

Option Agreement dated as of April 27, 2015, by and between PB Franchising, LLC, Stephanie Lin and Robert Lin (West Hartford, CT).

  h)

Option Agreement dated as of April 28, 2015, by and between PB Franchising, LLC and Tonia Jones (Cypress, TX).

  i)

Option Agreement dated as of April 28, 2015, by and between PB Franchising, LLC, Rebecca Dunn and Scott Dunn (Cedar Park, TX).

  j)

Option Agreement dated as of April 29, 2015, by and between PB Franchising, LLC, Michelle Clinger and Cassi O’Neal (Henderson, NV).

(k)

Nothing to report for LBF, S415 or CB.

As of August 31, 2017, CPF had an outstanding loan in the amount of $286,861.92 to the Club Pilates Marketing Fund.

(l)

The following persons have been engaged by LBF and/or S415 to provide services in the sale of franchises:

Lance Freeman

STG Employment Agreement_STG_L.Freeman_Eff. 1/26/2017

As amended 6/13/17

 

Schedule 9.27


Nick Sheehan

STG Employment Agreement_STG_N.Sheehan_Eff. 11/1/16

Justin LaCava

STG Employment Agreement_STG_J.LaCava_Eff. 2/7/13

As amended 8/27/17

Cameron Ferguson

STG Employment Agreement_STG_C.Ferguson_Eff. 7/8/17

John North

STG Employment Agreement_STG_J.North_Eff. 7/5/16

Sung Ohm

STG Employment Agreement_STG_S.Ohm Eff. 7/11/17

Emily Brown

STG Employment Agreement_STG_E.Brown_Eff. 10/1/16

Drew Chalfant

STG Employment Agreement_STG_D.Chalfant_Eff. 8/1/17

Kit Higgs

STG Employment Agreement_STG_K.Higgs_Eff. 8/15/17

Sean McCloskey

STG Employment Agreement_STG_S.McCloskey_Eff. 2/15/16

Chris Meibers

STG Employment Agreement_STG_Eff. 3/11/15

Jeff Herr

As STG Principal

 

Schedule 9.27


Jim Jagers

As STG Principal

Todd Kirby

As STG Principal

Joe Roda

As STG Principal

Bonnie Micheli (Shred415)

As Shred415 principal

Matt Micheli (Shred415)

As Shred415 principal

Kurt Roemer (Shred415)

As Shred415 principal

Tracy Roemer (Shred415)

As Shred415 principal

Joseph DeMarco (LBF)

As LBF principal

Jennifer DeMarco (LBF)

As LBF principal and pursuant to Executive Employment Agreement, dated November 9, 2015, by and between Local Barre Franchising, LLC and Jennifer DeMarco

The following brokers have been engaged by Company and/or its Franchisor Subsidiaries to provide assistance in the sale of franchises:

LBF

 

Schedule 9.27


FranChoice, Inc.

FranChoice Referral Agreement_FranChoice_LBF_Eff. 09/21/16

The Franchise Consulting Company

Franchise Referral Agreement_FCC_LBF_Eff. 10/04/16

Kirk Peacock – Broker

Broker Referral Agreement Coastal Massage,LLC_LBF_Eff. 4/20/17

Shred415

FranChoice, Inc.

FranChoice Referral Agreement_Franchoice_Shred415_Eff. 6/19/17

The Franchise Consulting Company

Franchise Referral Agreement_FCC_Shred415_Eff. 7/26/17

The Entrepreneur’s Source (TES)

TES Partnership Agreement_TES_Shred415_Eff. 8/14/17

FranNet

Franchise Referral and Commission Agreement_S415_FranNet of the Bay Area_Eff. 09/11/2017

Franchise Opportunities Network

Advertising Agreement_S415_FranchiseOpportunities.com, LLC_Eff. 02/22/2018

The following persons or entities provide material support services to Franchisees, and/or assist in the identification, offer, and sale of franchises to potential Franchisees:

LBF

 

Schedule 9.27


J3T Logistics, LLC – Franchisor marketing and operations support.

J3T Services Agreements LBF_J3T_Eff. 11/01/16

St. Gregory Development Group, LLC – Franchise sales support.

St. Gregory Ind. Cont. Agt._STG_LBF_Eff. 10/18/16

Jennifer DeMarco – Franchise sales support & franchisee support.

LBF Executive Employment Agreement_LBF_J.Demarco_Eff. 11/9/15

Bob Palazzi, LLC – Robert & Diane Palazzi – Area Representative

LBF AR Agreement_LBF_Bob Palazzi, LLC_Eff. 06/26/17

As modified by a Memorandum of Understanding dated 06/26/17

Carl Peacock & Pamela Tanase – Area Representative

LBF AR Agreement_LBF_C.Peacock&P.Tanase_Eff. 4/20/17

As modified by a Memorandum of Understanding dated 4/20/17

Shred415

J3T Logisitics, LLC – Franchisor marketing and operations support.

J3T Services Agreement Shred415_J3T_Eff. 6/16/17

St. Gregory Development Group, LLC – Franchise sales support.

St. Gregory Ind. Cont. Agt._STG_Shred415_Eff. 6/16/17

Shred415 Chicago Services agreement – sales and franchisee support.

Shred415 Chicago Services Agt._Shred415Franchising_Shred415Chicago_Eff. 6/16/17

REMOP Services, LLC – Services agreement – franchisee real estate support.

REMOP Services Agt._REMOP_Shred415Franchising_Eff. 8/30/17

FF&E Procurement Company of America, LLC – Franchisee furniture, fixtures and equipment product purchasing support.

FF&E Procurement Services Agt._FF&EPCA_Shred415Franchising_Eff. 8/30/17

 

Schedule 9.27


Club Pilates:

1. The TES Agreement.

2. The FranChoice Agreement.

3. The FranNet Agreement.

4. Franchise Referral Agreement dated December 22, 2015 between AllWright Franchise Consulting, Inc. d/b/a The You Network and the Company.

5. The St. Gregory Agreement.

6. The Colorado Agreement.

(m)

Club Pilates First Refusal Schedule:

1. Area Development Agreement dated April 17, 2017 between the Company and Stephanie Violas as amended by that certain Amendment and Acknowledgement dated April 17, 2017 between the parties.

2. Area Development Agreement dated October 31, 2016 between the Company and Katya Stromblad and the Company as amended by that certain Amendment and Acknowledgement dated October 31, 2016 between the parties.

3. Area Development Agreement dated August 23, 2016 between the Company and Mark A. Worely as amended by that certain Amendment and Acknowledgment between the parties.

4. Amendment and Right of First Refusal dated September 24, 2014 between Global and Amanda Gomez, as assigned to the Company pursuant to that certain Contribution Agreement (the “Contribution Agreement”) dated March 12, 2015 between CP, Global and the Company.

5. Amendment and Right of First Refusal dated March 6, 2014 between Global and October First LLC, as assigned to the Company pursuant to the Contribution Agreement.

6. Right of First Refusal dated August 12, 2014 between Global and Jennifer Marrinan, as assigned to the Company pursuant to the Contribution Agreement.

7. Area Development Agreement dated November 30, 2015 between the Company, Christopher M. Fichaud and Susan D. Bryan as amendment by that Amendment and Acknowledgement dated November 30, 2015 between the parties.

 

Schedule 9.27


8. For a period of twenty-four (24) months following the date of the Row House Purchase Agreement, the Row House Licensee has a right of first refusal on the opening of any “Row House” studios in (a) the following neighborhoods of Manhattan: (i) the Financial District, (ii) the Upper West Side, (iii) Midtown East and (iv) the Upper East Side or (b) the Hamptons.

(n)

Shred415

REMOP Services, LLC – Franchisee payments made to Shred 415 Franchising for Real Estate site selection and construction management services are then paid to REMOP to perform those services.

FF&E PROCUREMENT - FF&E performs furniture and fixture procurement services for Shred 415 Franchising. Franchisees pay monies directly to Shred 415 Franchising for these services, and Shred415 Franchising pays FF&E for rendering these services on behalf of its franchisees.

ClubReady

Master Vendor Agreement_S415_ClubReady, LLC_Eff. 02/01/2018

Pricing Agreement_S415_ClubReady, LLC_Eff. 02/01/2018

CycleBar:

 

  1.

CycleBar Approved Vendor Agreement dated May 27, 2016, by and between CBF and Core Health & Fitness, LLC.

  2.

FitMetrix Service Agreement

  3.

Groupon Agreement

  4.

Screencast Service Agreement

  5.

Mindbody Subscriber Agreement

  6.

Emma Email Marketing Agreement

  7.

Sharper Decorating Systems Inc.

Club Pilates:

Summary of Vendors & Agreement Terms

 

Schedule 9.27


  

Discount, Royalty,

     
  

Rebate

     

Written

  

or Convention

  

Notes or Additional

  

Contract?

Vendor

  

Sponsorship Amount

  

Terms

  
Suppliers Terms         
  

33.5% discount off

     

Balanced Body

  

MSRP

  

2%-10, net 30 terms

  

No

ToeSox

  

33% Royalty

     

Yes

  

55% discount from

     

Trigger Point / Implus

  

MSRP

     
  

Discounts ranging

     
  

from 10-25% off

     

Ringside-CSI-Fitness

  

MSRP

     
  

30% discount from

     

Glyder.

  

MSRP

     
  

Discounts ranging

     
  

from 15-30% off

     

Fitness First.

  

MSRP

     
  

Franchisees get 15%

     

Paychex*

  

permanent discount

     
  

20% discount from

     

Beyond Yoga

  

MSRP

     
  

34% discount from

     

Chicago/RX Bar

  

MSRP

     
  

40% discount from

     

TRX Fitness Anywhere

 

  

MSRP

 

     

Revenue Share Agreements

        
     

See Additional Details

  

ClubReady

  

~$175/studio

  

Below

  

Yes

 

Schedule 9.27


  

10% of invoiced

     

Priority Signs

  

amount

     

No

FloWater

  

$25/studio/mo

     

No

  

10% of invoiced

     

RFS Fooring

  

amount

     

No

Summary of Vendors & Agreement Terms

 

     
  

Discount, Royalty,

     
  

Rebate

     

Written

  

or Convention

  

Notes or Additional

  

Contract?

Vendor

  

Sponsorship Amount

  

Terms

  
     

Verbal only, but has not

  
  

10% of invoiced

  

reported or paid for 2016

  

C&C Signs

  

amount

  

yet

  

No

  

$500 per financed

     

Geneva/Amerifund

  

Studio

     

No

     

Verbal only, but has not

  
  

10% of invoiced

  

reported or paid for 2016

  

Action Glass

  

amount

  

yet

  

No

        

Other Vendors/Partners Rebates & Sponsorships

 

     
  

$5,000 convention

     

Trigger Point / Implus

  

sponsorship

     

No

  

$10,000 convention

     

ColePro, Inc.

  

sponsorship

     

No

  

$20,000 convention

     

ClubReady

  

sponsorship

     

No

 

Schedule 9.27


    

$5,000 convention

       

Glyder.

     sponsorship        

No

     $5,000 convention        

Fitness First.

     sponsorship        

No

     $5,000 convention        

Priority Signs

     sponsorship        

No

     $2,000 convention        

Paychex*

     sponsorship        

No

Paris, Ackerman &

     $5,000 convention        

Schmierer

     sponsorship        

No

     $5,000 convention        

Toesox customer

     sponsorship        

No

     $2,000 convention        

FranConnect

     sponsorship        

No

     $5,000 convention        

Savvier Fitness

     sponsorship        

No

     $2,000 convention        

ESIX

     sponsorship        

No

     $5,000 convention        

FloWater Inc.

     sponsorship        

No

     $5,000 convention        

GymWrench

     sponsorship        

No

     $5,000 convention        

C&R Components

     sponsorship        

No

Summary of Vendors & Agreement Terms

 

 

     
     Discount, Royalty,        
     Rebate         Written
     or Convention      Notes or Additional    Contract?

Vendor

     Sponsorship Amount      Terms   
        

Additional Details:

        

 

Schedule 9.27


      Club Ready Rebate

      Summary

 

     CR Fee to            
     Franchisee    Rebate to Franchisor    Notes:  

Software Fee

   $149.00    $39.00   

Draft Fee

   3.75%    0.50%   

Swipe Fee

   2.50%    0.10%   

PDC

   20.00%    5.00%   

Leadspeak

   $69.00    $20.00   

Gym HQ

   $-    5%   

ACH

   $9.95    $9.95   

Remit Stmt

   $4.95    $4.95   

App Fee

   $49.00    $39.00   

Contract Template

   $350.00    $50.00   
              

New

clubs

only

 

(o)

N/A

(p)

See Schedules 9.27(a), 9.27(b) and 9.27(c) above.

Schedule 9.27


Row House

Franchise Agreements in Effect

Summary - excluding

terminations

 

As

                                   
of:    6/20/2018         Franchisee    Studio Information      Franchisee Personal Information                               
      Studio
Name
   St  
at  
e  
   Last
Name
   First  
Name  
   St 
re 
et 
  

it 

  

St 

at 

  

  

St 

ud 

io 

Ph 
on 

e

  

Franchi 

see

Phone

   Franchisee Email    Ro
yal
ty
Ra
te
     M
F
C
R
a
t
e
    

Mi

n.

Ro
yal  
ty

  

Req

uire  
d
Min
imu
m

  

Indi

vidu
al
Terr
itor

y
FA
Dat
e

 

1  

   Row House Hilton Head    SC     Steward    Steph en                             (843) 226– 3482    stephen.stewart@therowhouse.com      7%       
2
%
 
 
              

02/
02/
18
 
 
 

2  

   Row House Connectic   ut    CT     Montefu sco    Rob/D ana                             (203) 770– 1497    robert.montefusco@therowhouse.com dana.montefusco@therowhouse.com      7%       
2
%
 
 
              

05/
05/
18
 
 
 

3  

   Row House Colordo    CO     Johnson    Anne                             (314) 249– 3753    anne.johnson@therowhouse.com      7%       
2
%
 
 
              

05/
10/
18
 
 
 

Schedule 9.27


4  

   Row House Frisco    TX     Puga    Reube   n/Nish ani                             (214)     455– 3277    ruben.puga@therowhouse.com nishani.puga@therowhouse.com    7%     2  
  %  
            06/   
04/   
18   
                               

5  

   Row House West End    M A    O’Malle y    Gyee/   Bob                             (817) 368– 3484    gyee.omalley@therowhouse.com bob.omalley@therowhouse.com    7%     2
  %  
            06/   
11/   
18   

6  

  

Row House Walnut

Creek

   CA     Yang    Henry                                             

 

(925) 247– 4533

   henry.yang@therowhouse.com    7%     2

  %  

            05/   
31/   
18   
                               

7  

   Row House San   Rafael    CA     Kfouri    Emile                                  (781) 864– 9728    emile.kfouri@therowhouse.com    7%      2
  %  
                      06/   
14/   
18   

Area Development Agreement (ADA Summary) - excluding

terminations

As

of:

     06/20/18         Franchisee     
Information
                                           
     Area
Name
    

Sta

te

     Last Name    First
Name
     Franchis
ee
Phone
    Franchisee Email      ADA
Date
    

Tota

l #

Stu

dios
in
ADA

    

Develop

ment
Fee

    

#
Studi
os

Open

(PreS

ale)

    

Develop
ment
Schedul

e

    

#
Add’
l
Stud
ios

to

be
Ope

ned

 
1        Denver        CO        Johnson      Anne           

(314)
249-
3753
 
 
 
    anne.johnson@therowhouse.com       
05/1
0/18
 
 
     3       
$
125,000
 
 
     0       
10/12/1
8
 
 
     3  
                                                                                         
04/12/1
9
 
 
        
                                                                                          10/12/1           

Schedule 9.27


                                                              

9

     
                           

(214)      

                                        
                

Ruben/N   

  

455-

  

ruben.puga@therowhouse.com

  

06/0    

       

$

      

12/04/1  

    

2    

 

Dallas

  

TX

  

Puga

  

ishani

  

3277

  

nishani.puga@therowhouse.com

  

4/18

  

3      

  

125,000    

  

0      

 

8

  

3    

                                                              

06/04/1

     
                                                              

9

     
                                                              

10/05/1

     
                                                              

9

     
                           

(925)

                                        
 

East

                 

247-

       

05/3

       

$

      

11/30/1

    

3    

 

Bay

  

CA

  

Yang

  

Henry

  

4533

  

yang_henry@yahoo.com

  

1/18

  

3

  

125,000

  

0

 

8

  

3

                                                              

05/31/1

     
                                                              

9

     
                                                              

11/30/1

     
                                                              

9

     
                           

(817)

                                        
         

M

        

Gyee/Bo

  

368-

  

gyee.omalley@therowhouse.com

  

06/1

        

$

       

12/11/1

     

4    

 

Boston

  

A

  

O’Malley      

  

b

  

3484

  

bob.omalley@therowhouse.com

  

1/18

  

3

  

125,000

  

0

 

8

  

3

                                                              

06/11/1

     
                                                              

9

     
                                                              

12/11/1

     
                                                              

9

     
 

San

                 

(781)

                                 
 

Francisc  

                 

864-

       

06/1

       

$

      

11/14/1

    

5    

 

o

  

CA  

  

Kfouri

  

Emile

  

9728

  

emile.kfouri@therowhouse.com

  

4/18

  

6

  

210,000

  

0

 

8

  

6

                                                              

04/14/1

     
                                                              

9

     
                                                              

09/14/1

     
                                                              

9

     
                                                              

02/14/2

     
                                                              

0

     
                                                              

07/14/2

     
                                                              

0

     
                                                              

01/14/2

     
                                                              

0

     

 

Schedule 9.27


Stretch Lab

Area Development Agreement (ADA Summary) - excluding terminations

  As of:     06/19/18

          Area Name          State      Last Name      First Name      Franchisee Email    ADA Date        Total #
Studios
  in ADA  
   Development
Fee  
  

#

Studios
Open

(PreSale)

   # Add’l
Studios
to be
Opened

1  

  

New Jersey

  

NJ

  

Weaving

  

Dave

  

David.Weaving@stretchlab.com

  

04/19/18

  

3

  

$125,000

  

0

  

3

    

Los Angeles;

                              

2  

  

Seattle

  

CA/WA

  

Elton

  

Byron

  

Byron.Elton@stretchlab.com

  

04/16/18

  

6

  

$210,000

  

0

  

6

             

Jerry &

                   

3  

  

Austin

  

TX

  

Stanley

  

Rachel

  

Jerry.Stanley@stretchlab.com

  

04/16/18

  

3

  

$125,000

  

0

  

3

4  

  

Los Gatos, CA

  

CA

  

Kemp

  

John

  

John.Kemp@stretchlab.com

  

05/11/18

  

3

  

$125,000

  

0

  

3

5  

  

Del Mar, CA

  

CA

  

Cohen

  

Angie

  

Angie.Cohen@stretchlab.com

  

06/09/18

  

3

  

$125,000

  

0

  

3

Franchise Agreements in Effect Summary - excluding terminations

    As of:                             06/19/18

     Studio Name    State      Last
  Name  
   First Name    City      Sta  
te
   Franchisee Email    Roya  
lty
Rate
  

M

FC  

Ra
te

   Min.
Roya  
lty
  

Requir  
ed

Minim
um

   Indivi
dual
Territ
ory FA
Date

1  

  

StretchLab
New Jersey
(Weaving)

   NJ     

Weaving

  

Dave

       

NJ

  

David.Weaving@stret
chlab.com

  

7%

  

2
%

              

2

  

StretchLab
Westwood
(Elton)

   CA     

Elton

  

Byron

  

Westw  
ood

  

CA

  

Byron.Elton@stretchl
ab.com

  

7%

  

2
%

              

3

  

StretchLab
Austin
(Stanley)

   TX     

Stanley

  

Jerry &
Rachel

  

Austin

  

TX

  

Jerry.Stanley@stretc
hlab.com

  

7%

  

2
%

              

4

  

StretchLab
Los Gatos
(Kemp)

   CA     

Kemp

  

John

  

Los
Gatos

  

CA

  

John.Kemp@stretchl
ab.com

  

7%

  

2
%

              

 

Schedule 9.27


5

  

StretchLab Del Mar
(Cohen)

       CA       

Cohen

  

Angie

  

Del Mar

  

CA  

  

Angie.Cohen@stretch
lab.com

  

7%    

  

2
%

              

6

  

StretchLAB Los Angeles
(Coronel)

   CA   

Coronel

  

Alexys &  
Oscar

  

Los
Angeles  

  

CA

  

Oscar.Coronel@stret
chlab.com

  

7%

  

2    
%

              

7

  

StretchLab Eagle (Ely)

   ID   

Ely

  

Suzanne

  

Eagle

  

ID

  

Suzanne.Ely@stretchl
ab.com

  

7%

  

2
%

              

 

Schedule 9.27


Pursuant to the terms of the Purchase Agreement and the License Arrangement, the Licensee has the right to open two (2) additional “AKT Studios” (the “Area Development Arrangement”). The Area Development Arrangement is the only Area Development or analogous agreement of Licensor. The following information required to be disclosed pursuant to Schedule 9.27(p) is applicable to the License Arrangement

 

Subsection

 

  

Information Requested

 

  

Disclosure

 

(i)    Franchisee contact info   

AKT inMotion, Inc.

c/o AKT Fitness LLC

244 84th Street

New York, New York 10028

Attention: Anna Kaiser

a@aktinmotion.com

 

(ii)   

Geographic Area

 

   N/A
(iii)   

Number of existing studios

 

   Four (4)
(iv)   

Development Schedule

 

   N/A
(v)   

Compliance Status

 

   N/A
(vi)   

Initial Fee

 

   $0
(vii)   

Effective Date

 

   March 21, 2018
(viii)   

Modifications or Waivers

 

   N/A

(ix)

 

  

Third Party Franchisees

 

  

N/A

 

Pursuant to the terms of the Stretch Lab Purchase Agreement and the Stretch Lab License Arrangement, the Stretch Lab Licensee has the right to open two (2) additional “Stretch Lab Studios” (the “Stretch Lab Area Development Arrangement”). The Stretch Lab Area Development Arrangement is the only Area Development or analogous agreement of Stretch Lab Licensor. The following information required to be disclosed pursuant to Schedule 9.27(p) is applicable to the Stretch Lab License Arrangement

 

Subsection

 

  

Information Requested

 

  

Disclosure

 

(i)    Franchisee contact info   

Stretch Lab, LLC

512 Rose Ave,


         

Venice, CA 90291

(310) 450-2510

Attention: Saul J. Janson

 

(ii)   

Geographic Area

 

   N/A
(iii)   

Number of existing studios

 

   Three (3)
(iv)   

Development Schedule

 

   N/A
(v)   

Compliance Status

 

   N/A
(vi)   

Initial Fee

 

   $0
(vii)   

Effective Date

 

   November 15, 2017
(viii)   

Modifications or Waivers

 

   N/A
(ix)   

Third Party Franchisees

 

   N/A

Pursuant to the terms of the Yoga Six Purchase Agreement and the Yoga Six License Arrangement, the Yoga Six Licensee has the right to open up to seven (7) additional “Yoga Six Studios” (the “Additional Studios”) and the option to have certain studios of the Seller Subsidiaries (the “Rebranded Studios”) enter the “Yoga Six” Franchise System upon satisfying certain conditions set forth in the Yoga Six Purchase Agreement (the “Yoga Six Area Development Arrangement”). The Yoga Six Area Development Arrangement is the only Area Development or analogous agreement of the Yoga Six Licensor. The following information required to be disclosed pursuant to Schedule 9.27(p) is applicable to the License Arrangement.

 

Subsection

 

  

Information Requested

 

  

Disclosure

 

(i)    Franchisee contact info   

Yoga 6 Company, LLC

512 Via De La Valle

Solana Beach, CA 92075

Attention: Peter Barbaresi

Email:

pbarbaresi@yogasix.com

 

(ii)    Geographic Area    Additional Studios
         

●   The St. Louis Metropolitan Area, including without limitation Chesterfield, Creve Coeur, St. Charles, and/or the


         

Central West End

       

●   The Chicago Metropolitan Area, including without limitation Evanston

       

●   The San Diego Metropolitan Area, including without limitation downtown San Diego, North Carlsbad, La Jolla and San Marcos

 

        Rebranded Studios
       

●   1150 N. State St.,
Chicago, IL 60610

       

●   2105 N Southport Ave
Suite 200, Chicago, IL 60614

       

●   1136 S Delano Ct
Suite E-204, Chicago, IL 60605

       

●   1600 W Lane Ave,
Upper Arlington, OH 43221

 

(iii)   

Number of existing studios

 

   Seven (7)
(iv)    Development Schedule   

Additional Studios

Twenty-one (21) months to open five (5) Additional Studios and then an additional six (6) months to open an additional two (2) Additional Studios.

 

       

Rebranded Studios

Within ninety (90) days of any Rebranded Studio having net sales at or above the average net sales of the studios in the Yoga Six franchise system.

 

(v)    Compliance Status   

N/A

 

(vi)    Initial Fee    $0


           
(vii)   

Effective Date

 

   July 26, 2018
(viii)   

Modifications or Waivers

 

   N/A
(ix)    Third Party Franchisees    N/A


Schedule 9.29

Bank Accounts

 

Entity Name

   Bank    Account Number   Account Type

Club Pilates

Franchise, LLC

  

Citizens Business Bank Checking

  

591001167

  Checking
  

Citizens Business Bank Marketing Fund

  

591001906

  Marketing Fund
Pilates Licensing,              
LLC   

Citizens Business Bank Checking

  

591001965

  Checking
St. Gregory   

First Financial

  

5312532897

  Checking
Development Group,              
LLC   

First Financial

  

5312532905

  Checking
    

First Financial

  

5312628398

  Checking
J3T Logistics, LLC   

First Financial

  

5312628406

  Checking
Coworking             Checking
Cincinnati, LLC   

First Financial

  

5312566887

   
               
LB Hyde Park, LLC   

First Financial

  

5312627978

  Checking
CycleBar Franchising   

First Financial

  

5312566911

  Checking
LLC              
               
    

First Financial

  

5312566895

  Checking
    

First Financial

  

5312566929

  Checking
    

First Financial

  

5312566994

  Checking
    

First Financial

  

5312567000

  Checking
    

First Financial

  

5312566937

  Checking
    

Citizens Business Bank

  

591002791

  Checking
    

Citizens Business Bank

  

591002805

  Checking
    

Citizens Business Bank

  

591002813

  Checking
CB IP LLC   

First Financial

  

5312566879

  Checking
CycleBar   

First Financial

  

5312628349

  Checking
International Inc.              
CycleBar Worldwide   

First Financial

  

5312628356

  Checking
Inc.              
CycleBar Canada              
Franchising, ULC              
AKT Franchise, LLC   

Citizens Business Bank

  

591003194

  Checking
    

Citizens Business Bank

  

591003968

   
    

Citizens Business Bank

  

591003798

   
Row House   

Citizens Business Bank

  

591002732

  Checking
Franchise, LLC   

Citizens Business Bank

  

591002988

   
    

Citizens Business Bank

  

591003216

   
Stretch Lab   

Citizens Business Bank

  

591002589

  Checking


Franchise, LLC

  

Citizens Business Bank

  

591002996

   
    

Citizens Business Bank

  

591003224

   

Row House Tustin,

  

Citizens Business Bank

  

591003216

 

Checking

LLC

             

Yoga Six Studio,

  

Citizens Business Bank

  

122234149

 

Checking

LLC

             

Xponential Fitness

  

Citizens Business Bank

  

591002503

 

Checking

LLC

             

H&W Franchise

  

Citizens Business Bank

  

591002481

 

Checking

Holdings, LLC

             

PB Franchising LLC

  

First National Bank

  

0054987255

 

Checking

PB Product LLC

  

First National Bank

  

0054988951

 

Checking

Pure Barre LLC

  

First National Bank

  

0054992577

 

Checking

PB Opco LLC

  

Bank of America

  

223015325719

 

Checking

PB Opco LLC

  

Bank of America

  

223015327474

 

Checking

Barre Midco LLC

  

Silicon Valley Bank

  

3302225058

 

Checking

Yoga Six Franchise,

  

Citizens Business Bank

  

591003801

 

Checking

LLC

       

591003941

   


Schedule 9.30

Material Contracts

 

  1.

Management Services Agreement, dated as of September 29, 2017, by and among H&W Franchise Holdings LLC and TPG Growth III Management, LLC, as assigned to H&W Investco Management LLC pursuant to that certain Assignment, Assumption, Waiver and Release Agreement dated as of the date hereof.

  2.

Premium Finance Agreement, dated May 10, 2017, by and between St. Gregory Development Group LLC and IPFS Corporation.

  3.

Shred Chicago Services Agreement, effective June 16, 2017, by and between Shred415 Franchising, LLC, and Shred415 Chicago, LLC.

  4.

1410 Enterprises Services Agreement, dated August, 11, 2016, by and between Fueled Collective Franchising, LLC, and 1410 Enterprises, LLC.

  5.

Services Agreement, dated May 11, 2016, by and between Fueled Collective Franchising, LLC and Fueled Coworking New York LLC.

  6.

The following Independent Contractor Agreements:

  a.

Independent Contractor Agreement, effective November 7, 2011, by and between St. Gregory Development Group, LLC, and InXpress , LLC.

  b.

Independent Contractor Agreement, effective January 7, 2014, by and between St. Gregory Development Group, LLC, and PSP Franchising, LLC.

  c.

Independent Contractor Agreement, effective April 1, 2016, by and between St. Gregory Development Group, LLC, and Bishops Franchising, LLC.

  d.

Independent Contractor Agreement, effective February 1, 2014, by and between St. Gregory Development Group, LLC, and Medi-Weightloss Franchising USA, LLC.

  e.

Independent Contractor Agreement, effective June 28, 2017, by and between St. Gregory Development Group, LLC, and APEX FUN RUN, LLC.

  7.

Master Vendor Agreement, effective March 15, 2017, by and between the Club Pilates Franchising, LLC and CLUBREADY, LLC and First Amendment to Master Vendor Agreement and Terms of Service, dated April 27, 2017.

  8.

Pilates System Multi-Unit License Agreement, dated April 3, 2017, by and among Pilates Licensing and both Fitness International, LLC and Fitness Sport & Sports Club, LLC.

  9.

Shopping Center Lease dated February 13, 2018 between Row House Tustin, LLC and 2C Tustin Legacy, LLC.

  10.

Lease dated May 31, 2018 between Stretch Lab Franchise, LLC and Laguna Heights Marketplace, LLC.

  11.

The Yoga Six Purchase Agreement.


Schedule 9.33

Legal Names; Etc.

 

Legal Name   Jurisdiction   Organizational
Identification
Number
  Additional
Place(s) of
Business
  Chief
Executive
Office
  Federal
Employer
Identification
Number
H&W Franchise Holdings LLC   Delaware   6525263   N/A   17877 Von Karman Avenue, Irvine, CA 92614   82-2858652
H&W Franchise Intermediate Holdings LLC   Delaware   6552716   N/A   17877 Von Karman Avenue, Irvine, CA 92614   Pending
Xponential Fitness LLC   Delaware   6508612   N/A   17877 Von Karman Avenue, Irvine, CA 92614   82-2858491
St. Gregory Holdco, LLC   Delaware   6528538   N/A   Rookwood Exchange, Norwood, Ohio, 3825 Edwards Road, #103, Cincinnati, Ohio 45209   82-2804962
Club Pilates Franchise, LLC   Delaware   5706045  

3001 Red Hill Avenue, Building 1, Suite 103, Costa Mesa, California 92626

 

2270 Northwest Parkway #120, Marietta, GA

  17877 Von Karman Avenue, Irvine, CA 92614   47-3380223


CycleBar Holdco, LLC   Delaware   6527735   N/A   17877 Von Karman Avenue, Irvine, CA 92614   82-2735288
Pilates Licensing, LLC   Delaware   6263407   N/A   17877 Von Karman Avenue, Irvine, CA 92614   81-4810568
CycleBar Franchising, LLC   Ohio   2283131   N/A   17877 Von Karman Avenue, Irvine, CA 92614   46-5766610
CB IP, LLC   Ohio   2330484   N/A   17877 Von Karman Avenue, Irvine, CA 92614   47-4472604
CycleBar Worldwide Inc.   Ohio   2414068   N/A   17877 Von Karman Avenue, Irvine, CA 92614   47-5253532
CycleBar International Inc.   Ohio   3867891   N/A   17877 Von Karman Avenue, Irvine, CA 92614   81-1528129
Shred415 Cincinnati, LLC   Ohio   4037972   N/A   2105 N. Southport Ave., Unit 203, Chicago, Illinois 60614   82-2841035
FC JV, LLC   Ohio   3909163   N/A   Rookwood Exchange, Norwood, Ohio, 3825 Edwards Road, #103, Cincinnati, Ohio 45209   81-2847806
St. Gregory   Ohio   1948312   N/A   Rookwood   27-2405259


Development Group, LLC               Exchange, Norwood, Ohio, 3825 Edwards Road, #103, Cincinnati, Ohio 45209    
Shred415 Franchising, LLC   Delaware   6438539   N/A   2105 N. Southport Ave., Unit 203, Chicago, Illinois 60614   82-1933928
Shred415 Franchising IP, LLC   Delaware   6438545   N/A   2105 N. Southport Ave., Unit 203, Chicago, Illinois 60614   82-2841035
Fueled Collective Franchising, LLC   Ohio   3902590   N/A   Rookwood Exchange, Norwood, Ohio, 3825 Edwards Road, #103, Cincinnati, Ohio 45209   81-2797254
Fueled Collective IP, LLC   Ohio   3902591   N/A   Rookwood Exchange, Norwood, Ohio, 3825 Edwards Road, #103, Cincinnati, Ohio 45209   81-2797600
FF&E Procurement Company of America, LLC   Ohio   3971438   N/A   Rookwood Exchange, Norwood, Ohio, 3825 Edwards Road, #103, Cincinnati, Ohio 45209   82-2841504
J3T   Ohio   2179795   N/A   Rookwood   47-3452324


Logistics, LLC                   Exchange, Norwood, Ohio, 3825 Edwards Road, #103, Cincinnati, Ohio 45209     
REMOP Services, LLC    Ohio    3971454    N/A    Rookwood Exchange, Norwood, Ohio, 3825 Edwards Road, #103, Cincinnati, Ohio 45209    82-2768616
LB Hyde Park, LLC    Ohio    3840122    Rookwood Exchange, 3825 Edwards Rd #102a, Cincinnati, OH 45209    Rookwood Exchange, 3825 Edwards Rd #102a, Cincinnati, OH 45209    81-1000488
Coworking Cincinnati, LLC    Ohio    3848657    Rookwood Exchange, 3825 Edwards Rd #103 and 2nd Floor, Cincinnati, OH 45209    Rookwood Exchange, Norwood, Ohio, 3825 Edwards Road, #103, Cincinnati, Ohio 45209    81-1093996
Modular Office Company of America, LLC    Ohio    3971455    N/A    Rookwood Exchange, Norwood, Ohio, 3825 Edwards Road, #103, Cincinnati, Ohio 45209    82-2841963
LB Franchising, LLC    Ohio    2444268    N/A    Rookwood Exchange, Norwood, Ohio, 3825 Edwards Road, #103, Cincinnati,    47-5535865


                    Ohio 45209     
LB IP, LLC    Ohio    2444266    N/A    Rookwood Exchange, Norwood, Ohio, 3825 Edwards Road, #103, Cincinnati, Ohio 45209    47-5536032
LB Product, LLC    Ohio    3939030    N/A    Rookwood Exchange, Norwood, Ohio, 3825 Edwards Road, #103, Cincinnati, Ohio 45209    82-2841206
CycleBar Canada Franchising, ULC    Canada    None; British Columbia Incorporation No.: BC1046097    N/A    17877 Von Karman Avenue, Irvine, CA 92614    81020 5328
AKT Franchise, LLC    Delaware    6784863    N/A    17877 Von Karman Avenue, Irvine, CA 92614    35-2620635
Row House Franchise, LLC    Delaware    6645634    N/A    17877 Von Karman Avenue, Irvine, CA 92614    82-3600175
Stretch Lab Franchise, LLC    Delaware    6566497    N/A    17877 Von Karman Avenue, Irvine, CA 92614    82-2895286
Row House Tustin, LLC    Delaware    6721459    15020 Kensington Park Drive Suite J100, Tustin, CA 92870    17877 Von Karman Avenue, Irvine, CA 92614    N/A – never obtained one
Yoga Six Franchise, LLC    Delaware    6964504    17877 Von Karman Avenue,    17877 Von Karman Avenue,    Pending


              

Irvine, CA 92614

 

   Irvine, CA 92614     
Experience Brand Development, LLC    Delaware    6885148    N/A    3825 Edwards Rd, Ste 103 Cincinnati, OH 45209    Pending
EBD RH, LLC    Delaware    6885151    N/A    3825 Edwards Rd, Ste 103 Cincinnati, OH 45209    Pending
EBD SL, LLC    Delaware    6885152    N/A    3825 Edwards Rd, Ste 103 Cincinnati, OH 45209    Pending
EBD CP, LLC    Delaware    6885150    N/A    3825 Edwards Rd, Ste 103 Cincinnati, OH 45209    Pending
EBD CB, LLC    Delaware    6885149    N/A    3825 Edwards Rd, Ste 103 Cincinnati, OH 45209    Pending
EBD FC, LLC    Delaware    6885153    N/A    3825 Edwards Rd, Ste 103 Cincinnati, OH 45209    Pending
EBD AKT, LLC    Delaware    6990684    N/A    3825 Edwards Rd, Ste 103 Cincinnati, OH 45209    Pending
EBD YS, LLC    Delaware    7006940    N/A    3825 Edwards Rd, Ste 103 Cincinnati, OH 45209    Pending
PB 1001, LLC    Delaware    5328934    N/A    100 Dunbar Street, Suite 301    Pending


                  Spartanburg, SC 29306     
PB 1002, LLC    Delaware    5328999   N/A   100 Dunbar Street, Suite 301 Spartanburg, SC 29306    Pending
PB 1005, LLC    Delaware    5329008   N/A   100 Dunbar Street, Suite 301 Spartanburg, SC 29306    Pending
PB 1006, LLC    Delaware    5330032   N/A   100 Dunbar Street, Suite 301 Spartanburg, SC 29306    Pending
PB 1007, LLC    Delaware    5334259   N/A   100 Dunbar Street, Suite 301 Spartanburg, SC 29306    Pending
PB 1012, LLC    Delaware    5340461   N/A   100 Dunbar Street, Suite 301 Spartanburg, SC 29306    Pending
PB 1016, LLC    Delaware    5341910   N/A   100 Dunbar Street, Suite 301 Spartanburg, SC 29306    Pending
PB 1018, LLC    Delaware    5342417   N/A   100 Dunbar Street, Suite 301 Spartanburg, SC 29306    Pending
PB 1020, LLC    Delaware    5346465   N/A   100 Dunbar Street, Suite 301 Spartanburg, SC 29306    Pending
PB 1021, LLC    Delaware    5346467   N/A   100 Dunbar Street, Suite 301 Spartanburg,    Pending


                  SC 29306     
PB 1029, LLC    Delaware    5363540   N/A   100 Dunbar Street, Suite 301 Spartanburg, SC 29306    Pending
PB 1035, LLC    Delaware    5382387   N/A   100 Dunbar Street, Suite 301 Spartanburg, SC 29306    Pending
PB 1042, LLC    Delaware    5434205   N/A   100 Dunbar Street, Suite 301 Spartanburg, SC 29306    Pending
PB Franchising, LLC    Delaware    5215896   N/A   100 Dunbar Street, Suite 301 Spartanburg, SC 29306    Pending
PB OPCO, LLC    Delaware    5319138   N/A   100 Dunbar Street, Suite 301 Spartanburg, SC 29306    Pending
PB Product, LLC    Delaware    5215897   N/A   100 Dunbar Street, Suite 301 Spartanburg, SC 29306    Pending
PBH 1001, LLC    Delaware    5585898   N/A   100 Dunbar Street, Suite 301 Spartanburg, SC 29306    Pending
Pure Barre, LLC (f/k/a PB Holdco, LLC)    Delaware    5215891   N/A   100 Dunbar Street, Suite 301 Spartanburg, SC 29306    46-1047399
Barre Midco, LLC    Delaware    5722438   N/A   100 Dunbar Street, Suite 301 Spartanburg, SC 29306    47-3618546


STG Brand Ambassador Franchising, LLC    Ohio    4227317   N/A   3825 Edwards Rd, Ste 103 Cincinnati, OH 45209    Pending
Yoga Six Studio, LLC    Delaware    7063817   N/A  

17877 Von Karman Avenue, Irvine, CA 92614

 

   Pending
AKT Studio, LLC    Delaware    7063816   N/A   17877 Von Karman Avenue, Irvine, CA 92614    Pending
Barre Holdco, LLC    Delaware    5722428   N/A   100 Dunbar Street, Suite 301 Spartanburg, SC 29306    Pending


Schedule 10.11

Post-Closing Obligations

Pure Barre

 

  1.

On or before the 20th day after the Closing Date (or such later date as Administrative Agent may agree in writing), Borrower shall deliver to Administrative Agent the lender’s loss payable and additional insured endorsements in favor of Administrative Agent related to the certificates of insurance required by Section 10.3(b) of the Agreement, in each case in form and substance reasonably satisfactory to Administrative Agent.

 

  2.

On or before the 90th day after the Closing Date (or such later date as Administrative Agent may agree in writing), Borrower shall provide Administrative Agent with evidence in form and substance reasonably satisfactory to Administrative Agent that Borrower has caused the registration of each copyright and trademark of the Borrower with the United States Patent and Trademark Office, the United States Copyright Office, and the Canadian Intellectual Property Office, as applicable, to reflect “Pure Barre, LLC” as the owner of each such copyright and trademark.

 

  3.

On or before the 60th day after the Closing Date (or such later date as Administrative Agent may agree in writing), the Loan Parties shall deliver duly executed control agreements with respect to each deposit account of the Loan Parties, including without limitation with respect to Pure Barre, other than Excluded Deposit Accounts, including without limitation account #591002805 at Citizens Business Bank, account #591003194 at Citizens Business Bank, account #122234149 at Citizens Business Bank and account #591002481 at Citizens Business Bank.

 

  4.

On or before the 60th day after the Closing Date (or such later date as Administrative Agent may agree in writing), the Loan Parties shall use commercially reasonable efforts to deliver to Administrative Agent all executed Collateral Access Agreements required to be delivered pursuant to Section 5.9 of the Guaranty and Collateral Agreement, including without limitation with respect to 3186 Pullman Streeet, Costa Mesa, CA 92626 and including without limitation with respect to Pure Barre.

 

  5.

On or before the 10th Business Day after the Closing Date (or such later date as Administrative Agent may agree in writing), the Loan Parties shall deliver a duly executed lease agreement with respect to 3186 Pullman Street, Costa Mesa, CA 92626.


Schedule 11.1

Existing Debt

 

  1.

Corporate Guaranty made by St. Gregory Development Group, LLC, dated May 17, 2017, for that certain Lease Agreement dated May 15, 2017 (Lease No 40267517) by and between Cycle Bar Hyde Park, LLC and United Leasing, Inc.

  2.

Corporate Guaranty made by St. Gregory Development Group, LLC, dated December 20, 2016, for that certain Lease Agreement dated December 22, 2016 (Lease No 40251291) by and between Cycle Seven Ventures Kenwood, LLC and Western Equipment Finance, Inc.

  3.

Corporate Guaranty made by St. Gregory Development Group, LLC, dated June 2, 2014, for that certain Sublease Agreement, dated June 2, 2014 by and between Rookwood Hot Yoga, LLC and Cycle Bar Hyde Park, LLC and CLP-SPF Rookwood Commons, LLC.

  4.

Corporate Co-Guaranty made by St. Gregory Development Group, LLC, dated January 25, 2016, for that certain Lease Agreement dated February 1, 2016 by and between Cycle Seven Ventures Kenwood, LLC and Kenwood Collection Retail LLC.


Schedule 11.2

Existing Liens

None.


Schedule 11.11

Investments

 

  1.

Schedule 9.8 is incorporated herein by reference.

  2.

Franchisee Loan by Club Pilates Franchise, LLC, as lender, to Pallatroni Ventures Inc., as debtor, dated as of September 5, 2017, with an outstanding principal balance of $187,810.37.

  3.

Secured Promissory Note dated December 8, 2017 in the principal amount of $1,500,000 between Row House Franchise, LLC as lender and Row House Holdings, Inc., EVF RH Staffing, Inc., EVF Row House Inc., and Row House CC, LLC as borrowers.


Schedule 12.1

Debt to be Repaid

Credit Agreement dated as of June 11, 2015 by and among Pure Barre LLC, the other loan parties thereto, the various financial institutions parties thereto, and Monroe Capital Managmenet Advisors, LLC, as administrative agent


EXHIBIT A

AMENDED AND RESTATED [REVOLVING] [TERM] NOTE

 

$__________________    _______,_______
   Chicago, Illinois

The undersigned, for value received, jointly and severally, promise to pay to ______________ (the “Lender”) and its permitted assigns at the principal office of Monroe Capital Management Advisors, LLC (the “Administrative Agent”) in Chicago, Illinois the principal amount of __________________ ($__________________), or if less, the unpaid principal amount of all [Revolving] [Term] Loans made to the undersigned by the Lender pursuant to the Credit Agreement referred to below (as shown on the schedule attached hereto (and any continuation thereof) or in the records of the Lender), such principal amount to be payable in the amounts and on the dates set forth in the Credit Agreement.

The undersigned further, jointly and severally, promise to pay interest on the unpaid principal amount of each Loan from the date of such Loan until such Loan is paid in full, payable at the rate(s) and at the time(s) set forth in the Credit Agreement. Payments of both principal and interest are to be made in lawful money of the United States of America.

This Amended and Restated Note evidences indebtedness incurred under, and is subject to the terms and provisions of, the Second Amended and Restated Credit Agreement, dated as of October 25, 2018 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”; terms not otherwise defined herein are used herein as defined in the Credit Agreement), among Xponential Fitness LLC, a Delaware limited liability company, St. Gregory Holdco, LLC, a Delaware limited liability company, any Person from time to time joined thereto as a borrower party in accordance with the terms thereof, the other Loan Parties party thereto, the financial institutions (including the Lender) that are or may from time to time become parties thereto and the Administrative Agent, to which Credit Agreement reference is hereby made for a statement of the terms and provisions under which this Amended and Restated Note may or must be paid prior to its due date or its due date accelerated.

This Amended and Restated Note is made and given in replacement of, and as an amendment and restatement of any Notes issued by the undersigned Borrowers to the Lender in connection with that certain Credit Agreement, dated as of September 29, 2017, among Xponential Fitness LLC and St. Gregory Holdco, LLC, as borrowers, the other loan parties party thereto, the financial institutions that are party thereto and Monroe Capital Management Advisors, LLC, as administrative agent, as amended, restated, supplemented or otherwise modified, and is not intended to be a novation.

This Amended and Restated Note is made under and governed by the laws of the State of New York applicable to contracts made and to be performed entirely within such State, without regard to conflict of law principles.

[Signature Page Follows]


BORROWERS:
XPONENTIAL FITNESS LLC
By:                                                                              
Name:                                                                              
Title:                                                                              
ST. GREGORY HOLDCO, LLC
By:                                                                              
Name:                                                                              
Title:                                                                              

 

Signature Page to Form of Note


EXHIBIT B

FORM OF COMPLIANCE CERTIFICATE1

To:     Monroe Capital Management Advisors, LLC, as Administrative Agent

Please refer to the Second Amended and Restated Credit Agreement dated as of October 25, 2018 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) among Xponential Fitness LLC, a Delaware limited liability company, St. Gregory Holdco, LLC, a Delaware limited liability company, any Person from time to time joined thereto as a borrower party in accordance with the terms thereof, the other Loan Parties party thereto, the financial institutions that are or may from time to time become parties thereto and Monroe Capital Management Advisors, LLC, as Administrative Agent. Terms used but not otherwise defined herein are used herein as defined in the Credit Agreement.

I.   Reports. Enclosed herewith is a copy of the [annual audited/quarterly] report of Borrower as at _____________, ____ (the “Computation Date”), [certified without adverse reference to going concern qualification by independent auditors of recognized standing selected by Borrower and reasonably acceptable to Administrative Agent (except to the extent such qualification is due to the scheduled maturity date of any Debt)]2 and prepared in accordance with GAAP consistently applied.

II.   Financial Tests. Borrower Representative hereby certifies and warrants to you that the following is a true and correct computation as at the Computation Date of the following ratios and/or financial restrictions and/or financial calculations contained in the Credit Agreement:

 

A.    

 

  

Section 11.14.1 - Minimum Fixed Charge Coverage Ratio

 

     
     1.       

EBITDA (without giving effect to the final sentence thereof in the Credit Agreement) (from Item C(4) below)

 

  

 

$                        

 

     2.       

Income taxes paid or payable in cash by the Loan Parties and their Subsidiaries (including without duplication Tax Distributions)

 

  

 

$                    

 

     3.       

All Capital Expenditures made by the by the Loan Parties and their Subsidiaries not financed with (x) the proceeds Debt (other than Revolving Loans) or (y) Capital Securities

 

  

$                    

 

     4.    

 

  

Sum of (2) and (3)

 

  

$                    

 

 

 

1 This certificate is for convenience only and, to the extent of any conflict between the terms of this certificate and the terms of the Credit Agreement, the Credit Agreement shall control.

2 Bracketed language only with respect to annual financial reports.

Exhibit B - 1


     5.   

Remainder of (1) minus (4)

 

   $                         
     6.   

Cash Interest Expense

 

   $                         
     7.   

Scheduled payments (other than payments scheduled to be made on the applicable maturity date) of principal of Funded Debt (including the Term Loans and Permitted Seller Debt but excluding the Revolving Loans and Permitted Earn-Outs)

 

  

$                        

 

     8.   

Management fees paid in cash to Sponsor

 

   $                         
     9.   

Sum of (6), (7) and (8)

 

   $                         
     10.   

Ratio of (5) to (9)

 

               to 1
     11.   

Minimum Required

 

   [1.20 to 1.00]

B.

  

Section 11.14.2 - Maximum Total Debt to EBITDA Ratio

 

    
     1.   

Total Debt

 

   $                         
     2.   

Qualified Cash

 

   $                         
     3.   

Remainder of (1) minus (2)

 

   $                         
     4.   

EBITDA

(from Item C(4) below)

 

  

$                        

 

     5.   

Ratio of (3) to (4)

 

               to 1
     6.   

Maximum allowed

 

               to 1

C.

  

EBITDA Computation3

 

    
     1.   

Consolidated Net Income

 

   $                         
     2.   

Plus:4

 

    

 

 

3 increased or decreased (without duplication) by, as applicable, any adjustments resulting from the application of FASB Accounting Standards Codification 460, Guarantees

4 The amount added to EBITDA pursuant to Section 1.3(c), clauses (c), (f) (other than pursuant to clause (f)(1)(A)), (g) and (m) may in the aggregate not exceed (i) 45% of EBITDA of Holdings and its Subsidiaries for any period ending on or prior to September 30, 2018, (ii) 40% of EBITDA of Holdings and its Subsidiaries for any period ending after September 30, 2018 but on or prior to December 31, 2018, (iii) 40% of EBITDA of Holdings and its Subsidiaries for any period ending after December 31, 2018 but on or prior to March 31, 2019 and (iv) 20% of EBITDA of Holdings and its Subsidiaries for any period ending thereafter

 

 

Exhibit B - 2


        

(a)  any provision for (or less any benefit, including income tax credits and refunds, from) income taxes (including franchise, gross receipts and single business taxes imposed in lieu of income taxes)

 

   $

 

                           

 

 

 

        

(b)  Consolidated Depreciation and Amortization Expense

 

  

 

$

 

 

                          

 

 

 

 

        

(c)  the amount of any documented and clearly identifiable restructuring charges5

 

  

 

$

 

 

                          

 

 

 

 

        

(d)  any other non-cash charges or adjustments, including (i) any write offs or write downs reducing Consolidated Net Income for such period, (ii) equity-based awards compensation expense and expenses related to or associated with deferred compensation programs, (iii) losses on sales, disposals or abandonment of, or any impairment charges or asset write-down or write-off related to, intangible assets, long-lived assets, inventory and investments in debt and equity securities, (iv) all losses from investments recorded using the equity method, (v) charges for facilities closed prior to the applicable lease expiration, and (vi) non-cash expenses in connection with new studio or other facility openings and closings

 

   $

 

                          

 

 

 

        

(e)  the amount of (i) board of directors fees not to exceed $500,000 in the aggregate for such period and (ii) any management, monitoring, consulting and advisory fees (including termination and transaction fees) and related indemnities and expenses paid or accrued in such period under the Management Agreement

 

   $

 

                          

 

 

 

        

(f)  (1) all fees, costs, charges or expenses in connection with acquisitions and Investments (including

   $

 

                          

 

 

 

 

 

5 provided that the amounts added to EBITDA pursuant to this clause (c) shall not exceed 25% of EBITDA for the period ending after September 30, 2018 but on or prior to December 31, 2019 (provided that no more than 15% of such amount is derived from Pure Barre and no more than 10% of such amount is derived from Loan Parties other than Pure Barre) and 5% of EBITDA for any period ending after December 31, 2019; and provided further, that amounts added to EBITDA pursuant to this clause (c) when aggregated with amounts added to EBITDA pursuant to clause (f) (other than pursuant to clause (f)(1)), clause (f) and Section 1.3(c) of the Credit Agreement shall not exceed (i) 40% of EBITDA for any period ending after December 31, 2018 but on or prior to March 31, 2019, (ii) 35% of EBITDA for any period ending after March 31, 2019 but on or prior to June 30, 2019, (iii) 30% of EBITDA for any period ending after June 30, 2019 but on or prior to September 30, 2019, (iv) 25% of EBITDA for any period ending after September 30, 2019 but on or prior to December 31, 2019 and (iv) 10% of EBITDA for any period ending thereafter.

 

 

Exhibit B - 3


        

Permitted Acquisitions), including without limitation, consulting fees paid in connection with the Closing Date Acquisition, whether or not such acquisitions are consummated; provided, (A) with respect to acquisitions and Investments (other than the Closing Date Acquisition) that are consummated after the Closing Date, such fees, costs, charges or expenses (a) are incurred within 120 days following the consummation of such acquisition or Investment and (b) shall not exceed (i) $4,000,000 in the aggregate in any period ending on or prior to December 31, 2019 and (ii) $1,500,000 for any period ending after December 31, 2019, and (B) with respect to acquisitions and Investments which are not consummated, the aggregate amount of such fees, costs, charges or expenses added back shall not exceed (x) $1,275,000 in the aggregate for such period with respect to any period ending on or prior to March 31, 2019 and (y) $680,000 in the aggregate for such period with respect to any period ending after March 31, 2019 and (2) the amount of extraordinary, nonrecurring or unusual losses (including all fees and expenses relating thereto), charges or expenses, integration costs, transition costs, pre-opening, opening, consolidation and closing costs for facilities or studios, costs and operating expenses incurred in connection with any strategic initiatives or attributable to the implementation of cost saving initiatives, costs or accruals or reserves incurred in connection with acquisitions (including the Related Transactions and Permitted Acquisitions, and whether or not such acquisitions are consummated) whether on, after or prior to the Closing Date, other business optimization expenses (including costs and expenses relating to business optimization programs and new systems design and implementation costs), severance costs and expenses, one-time compensation charges, retention or completion bonuses, executive recruiting costs, consulting fees, restructuring costs and reserves, and curtailments or modifications to pension and postretirement employee benefit plans;

6

    

 

 

6 provided, that the amounts added to EBITDA pursuant to clause (f)(2) shall not exceed 20% of EBITDA for such period; and provided further, that amounts added to EBITDA pursuant to this clause (f) (other than clause

 

 

Exhibit B - 4


    

       

(g)  (1) the amount of “run-rate” cost savings, cost synergies and operating expense reductions related to restructurings, cost savings initiatives or other initiatives that are projected by the Borrower in good faith to result from Permitted Acquisitions and Investments permitted by Section 11.11 of the Credit Agreement (1) with respect to which substantial steps have been taken, in each case, during the 15 month period following such Permitted Acquisition or Investment and (2) with respect to which substantial steps are expected to be taken (in the good faith determination of the Borrower) on or before June 30, 2019 in an amount not to exceed $900,000 in any such period (provided that in each case, such cost savings, cost synergies or operating expense reductions shall be certified by management of the Borrower and calculated on a pro forma basis as though such cost savings, cost synergies or operating expense reductions had been realized on the first day of such period), net of the amount of actual benefits realized from such actions during such period (it is understood and agreed that “run-rate” means the full recurring benefit that is associated with any action taken or with respect to which substantial steps have been taken) (which adjustments shall exclude the annualization of any studio royalties and may be incremental to (but not duplicative of) pro forma cost savings, cost synergies or operating expense reduction adjustments made pursuant to Section 1.3(c) of the Credit Agreement); provided that such cost savings, cost synergies and operating expenses are (i) reasonably identifiable and factually supportable and (ii) shall not exceed $2,500,000 with respect to Pure Barre and $1,000,000 with respect to all other brands (excluding amounts associated with brands related to the Original Related Transactions in an amount not to exceed $1,250,000); 7

 

  

$                    

 

 

 

(f)(1)) when aggregated with amounts added to EBITDA pursuant to Section 1.3(c) of the Credit Agreement, clause (c) and clause (g) shall not exceed (i) 20% of EBITDA for any period ending after June 30, 2018 but on or prior to September 30, 2018, (ii) 15% of EBITDA for any period ending after September 30, 2018 but on or prior to December 31, 2018, (iii) 15% of EBITDA for any period ending after December 31, 2018 but on or prior to March 31, 2019 and (iv) 10% of EBITDA for any period ending thereafter

7 provided further that the amounts added to EBITDA pursuant to this clause (g) shall not exceed 20% of EBITDA for such period; and provided further, that amounts added to EBITDA pursuant to this clause (g) when aggregated with amounts added to EBITDA pursuant to clause (c) and clause (f) (other than pursuant to clause (f)(1)) shall not exceed (i) 40% of EBITDA for any period ending after December 31, 2018 but on or prior to March

Exhibit B - 5


            

(h)  any non-cash costs or expense incurred by Holdings or a Subsidiary pursuant to any management equity plan or stock option plan or any other management or employee benefit plan or agreement

 

   $                    

 

         

(i) cash receipts (or any netting arrangements resulting in reduced cash expenditures) not representing EBITDA or Consolidated Net Income in any period to the extent non-cash gains relating to such income were deducted in the calculation of EBITDA pursuant to Item (C)(3) below for any previous period and not added back

 

   $                    

 

         

(j) Interest Expense for such period

 

   $                    

 

         

(k)  to the extent covered by insurance and actually reimbursed in cash, expenses with respect to liability or casualty events

 

   $                    

 

         

(l) any proceeds of a business interruption insurance claim actually received in cash and solely to the extent replacing lost profits

 

   $                    

 

         

(m) any losses or start-up costs or expenses (excluding marketing costs and expenses funded or reasonably and in good faith expected to be funded with amounts contributed by franchisees in to marketing funds) incurred and reducing Consolidated Net Income for such period; provided that with respect to any test period, such amounts (A) be solely and directly attributable to any brand acquired by Borrower or any other Loan Party during the trailing twelve month period following the acquisition of such brand, (B) shall not exceed an amount equal to (i) $1,000,000 with respect to any brand in any period, (ii) $5,000,000, in the aggregate for all brands in any period ending on or prior to June 30, 2019, (iii) $2,500,000 in the aggregate for all brands in any period ending after June 30, 2019 but on or prior to December 31, 2019, (iv) $1,500,000 in the aggregate for any period ending after December 31, 2019 but on or prior to March 31, 2020, (v) $1,000,000 in the

   $                    

 

 

 

31, 2019, (ii) 35% of EBITDA for any period ending after March 31, 2019 but on or prior to June 30, 2019, (iii) 30% of EBITDA for any period ending after June 30, 2019 but on or prior to September 30, 2019, (iv) 25% of EBITDA for any period ending after September 30, 2019 but on or prior to December 31, 2019 and (iv) 10% of EBITDA for any period ending thereafter

Exhibit B - 6


    

       

aggregate for any period ending after March 31, 2020 but on or prior to June 30, 2020 and (vi) $0 in the aggregate for an period ending after June 30, 2020 and (C) be supported by documentation to the satisfaction of the Administrative Agent

 

    
         

(n)  solely with respect to the testing of financial covenants all reasonable and documented fees or expenses incurred or paid by Holdings, Borrower or any Subsidiary in connection with the consummation of the Original Related Transactions, including payments to officers, employees and directors as change of control payments, severance payments and charges for repurchase or rollover of, or modifications to, stock options, provided that such fees or expenses shall not (together with all adjustments pursuant to clause (xiii)) exceed $3,955,000 in the aggregate and shall be incurred within 180 days of the Closing Date

 

    
         

(o)  all reasonable and documented fees, costs, charges or expenses incurred or paid by Holdings, Borrower or any Subsidiary in connection with the consummation of the Closing Date Acquisition, including payments to officers, employees and directors as change of control payments, severance payments and charges for repurchase or rollover of, or modifications to, stock options; provided that such fees, costs, charges or expenses shall not exceed $5,000,000 in the aggregate and shall be incurred within 180 days of the Closing Date

 

    
         

(p)  to the extent funded with proceeds of Incremental Loans and deducted from Consolidated Net Income, up to $10,000,000 invested by the Borrowers on or prior to December 31, 2019 in franchisees in exchange for longer contract terms from such franchisees

 

    
     3.   

Minus:

    
         

(a)  non-cash gains increasing Consolidated Net Income of such Person for such period, excluding any non-cash gains to the extent they represent the reversal of an accrual or reserve for a potential cash item that reduced EBITDA in any prior period

 

  

$                    

 

Exhibit B - 7


        

(b)  any non-cash gains with respect to cash actually received in a prior period unless such cash did not increase EBITDA in such prior period

 

    

 

$                    

 

 

 

        

(c)  extraordinary gains and unusual or non-recurring gains (less all fees and expenses relating thereto)

 

    

 

$                    

 

 

 

        

(d)  in each case to the extent included in determining such Consolidated Net Income for such period and without duplication, the amount of positive EBITDA of Subsidiaries that have not guaranteed the Obligations hereunder and provided Liens on their assets securing the Obligations for such period

 

    

 

$                    

 

 

 

    4.   

Total (EBITDA)8

 

    

 

$                    

 

 

 

D.

 

Section 6.2.2(a)(iv) – Excess Cash Flow9

 

  
    1.   

EBITDA (from Item C(4) above)

 

    

 

$                    

 

 

 

    2.   

the amount of positive EBITDA of Subsidiaries that have not guaranteed the Obligations hereunder and provided Liens on their assets securing the Obligations for such period in an amount not to exceed the amount of cash distributed by such Subsidiary to a Loan Party during such period

 

    

 

$                    

 

 

 

    3.   

any net decrease in the Working Capital Adjustment during

 

    

 

$                    

 

 

 

 

 

8 Notwithstanding the foregoing, the amount added to EBITDA pursuant to Section 1.3(c) of the Credit Agreement, Items C(2)(c), C(2)(f) (other than pursuant to Item C(2)(f)(1)), C(2)(g) and C(2)(h) may in the aggregate not exceed (i) 55% of EBITDA of Holdings and its Subsidiaries for any period ending on or prior to December 31, 2018 (provided that EBTIDA attributable to Pure Barre shall not exceed $6,000,000 of such amount), (ii) 50% of EBITDA of Holdings and its Subsidiaries for any period ending after December 31, 2018 but on or prior to March 31, 2019 (provided that EBTIDA attributable to Pure Barre shall not exceed $6,000,000 of such amount), (iii) 45% of EBITDA of Holdings and its Subsidiaries for any period ending after March 31, 2019 but on or prior to June 30, 2019 (provided that EBTIDA attributable to Pure Barre shall not exceed $6,000,000 of such amount), (iv) 40% of EBITDA of Holdings and its Subsidiaries for any period ending after June 30, 2019 but on or prior to September 30, 2019 (provided that EBTIDA attributable to Pure Barre shall not exceed $6,000,000 of such amount), (v) 35% of EBITDA of Holdings and its Subsidiaries for any period ending after September 31, 2019 but on or prior to December 31, 2019 (provided that EBTIDA attributable to Pure Barre shall not exceed $6,000,000 of such amount), and (vii) 20% of EBITDA of Holdings and its Subsidiaries for any period ending thereafter.

9 Only for annual financials

 

 

Exhibit B - 8


            

such period

 

        
      4.      scheduled repayments of principal of the Term Loans and other Funded Debt (other than payments of revolving Debt that do not include a dollar-for-dollar commitment reduction) permitted under the Credit Agreement and made during such period    $                        
                       
      5.      voluntary prepayments of the Term Loan pursuant to the Credit Agreement during such period and voluntary prepayments of the Revolving Loans during such period that are accompanied by a dollar-for-dollar reduction of the Revolving Commitments    $                        
                       
                 6.      cash payments permitted under the Credit Agreement and made during such period with respect to unfinanced (whether with equity or Debt) Capital Expenditures    $                        
                       
      7.      all income and franchise taxes paid in cash by the Loan Parties during such period (including, without limitation (but without duplication), Tax Distributions) net of refunds actually received in cash during such period    $                        
                       
      8.      cash Interest Expense (net of interest income) of the Loan Parties during such period    $                        
                       
      9.      in each case solely to the extent added in determining EBITDA for such period and without duplication of any of the foregoing, any other amounts paid in cash and added back to EBITDA pursuant to the definition thereof    $                        
                       
      10.      any net increase in Working Capital Adjustments during such period    $                        
                       
      11.      cash payments (not financed with the proceeds of Equity (including the Available Amount) or Debt other than Revolving Loans) made in such period with respect to Permitted Acquisitions    $                        
                       
      12.      Sum of (1) through (3)    $                        
                       
      13.      Remainder of (12) minus the sum of (4) through (11)    $                        
                       
      14.      ECF Percentage multiplied by (13)    $                        
                       
      15.      Voluntary prepayments of the revolving loans to the extent accompanied by a permanent reduction of the Commitments    $                        

 

Exhibit B - 9


        

pursuant to Section 6.1.1 of the Credit Agreement

 

        
               16.   

Voluntary prepayments of the Term Loans pursuant to Section 6.2.1 (excluding payments funded from the Available Amount) of the Credit Agreement

 

   $

 

                      

 

 

 

    17.   

Remainder of (14) minus (15) minus (16)

 

   $

 

                      

 

 

 

III.      Borrower further certifies to you that [no Default or Event of Default has occurred and is continuing].10

[Borrower hereby notifies you pursuant to Section 5.7(f) of the Guaranty and Collateral Agreement that an application for the registration of the following Intellectual Property has been filed with [insert filing office]: [provide description of Intellectual Property]]

IV.        Enclosed herewith is a written statement of Holdings’ management setting forth a discussion of Holdings’ and its Subsidiaries’ financial condition, changes in financial condition and results of operations.

Borrower Representative has caused this Certificate to be executed and delivered by its duly authorized signatory on _________, ____.

 

XPONENTIAL FITNESS LLC

By:    
Name:    
Title:    

 

 

 

10 If a Default or Event of default has occurred and is continuing describe the Default or Event of Default and the steps, if any, being taken to cure it.

 

Exhibit B - 10


EXHIBIT C

ASSIGNMENT AND ASSUMPTION

This Assignment and Assumption (this “Assignment and Assumption”) is dated as of the Effective Date set forth below and is entered into by and between [the][each] 11 Assignor identified in item 1 below ([the][each, an]Assignor”) and [the][each]12 Assignee identified in item 2 below ([the][each, an]Assignee”). [It is understood and agreed that the rights and obligations of [the Assignors][the Assignees] 13 hereunder are several and not joint.] 14 Capitalized terms used but not defined herein shall have the meanings given to them in the Second Amended and Restated Credit Agreement identified below (the “Credit Agreement”), receipt of a copy of which is hereby acknowledged by the Assignee. The Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and incorporated herein by reference and made a part of this Assignment and Assumption as if set forth herein in full.

For an agreed consideration, [the][each] Assignor hereby irrevocably sells and assigns to [the Assignee][the respective Assignees], and [the][each] Assignee hereby irrevocably purchases and assumes from [the Assignor][the respective Assignors], subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by Administrative Agent as contemplated below (i) all of [the Assignor’s][the respective Assignors’] rights and obligations in [its capacity as a Lender][their respective capacities as Lenders] under the Credit Agreement and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage interest identified below of all of such outstanding rights and obligations of [the Assignor][the respective Assignors] under the respective facilities identified below (including, without limitation, the Letters of Credit included in such facilities 15 ) and (ii) to the extent permitted to be assigned under applicable law, all claims, suits, causes of action and any other right of [the Assignor (in its capacity as a Lender)][the respective Assignors (in their respective capacities as Lenders)] against any Person, whether known or unknown, arising under or in connection with the Credit Agreement, any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in any way based on or related to any of the foregoing, including, but not limited to, contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to the rights and obligations sold and assigned pursuant to clause (i) above (the rights and obligations sold and assigned by [the][any] Assignor to [the][any] Assignee pursuant to clauses (i) and (ii) above

 

11 For bracketed language here and elsewhere in this form relating to the Assignor(s), if the assignment is from a single Assignor, choose the first bracketed language. If the assignment is from multiple Assignors, choose the second bracketed language.

12 For bracketed language here and elsewhere in this form relating to the Assignee(s), if the assignment is to a single Assignee, choose the first bracketed language. If the assignment is to multiple Assignees, choose the second bracketed language.

13 Select as appropriate.

14 Include bracketed language if there are either multiple Assignors or multiple Assignees.

15 Include all applicable subfacilities.

 

Exhibit C - 1


being referred to herein collectively as [the][an]Assigned Interest”). Each such sale and assignment is without recourse to [the][any] Assignor and, except as expressly provided in this Assignment and Assumption, without representation or warranty by [the][any] Assignor.

 

1.       

Assignor[s]

  

                                         

     

                                         

2.   

Assignee[s]

  

                                         

     

                                         

      [for each Assignee, indicate [Affiliate][Approved Fund] of [identify Lender]]
3.   

Borrower(s):

   Xponential Fitness LLC, a Delaware limited liability company and St. Gregory Holdco, LLC, a Delaware limited liability company
4.   

Administrative Agent:    

   Monroe Capital Management Advisors, LLC, as the administrative agent under the Credit Agreement
5.   

Credit Agreement:

   Second Amended and Restated Credit Agreement, dated as of October 25, 2018 among the Borrowers, the other Loan Parties party thereto, the Lenders from time to time party thereto, and Monroe Capital Management Advisors, LLC, as Administrative Agent
6.   

Assigned Interest:

  

 

Assignor[s]16    Assignee[s]17    Facility
Assigned18
   Aggregate
Amount of
Commitment /
Loans for all
Lenders19
   Amount of
Commitment /
Loans Assigned
   Percentage
Assigned of
Commitment/
Loans20
   CUSIP Number
                                      
           

                

 

  

$                    

 

  

$                    

 

  

                 %

 

     
           

                

 

  

$                    

 

  

$                    

 

  

                 %

 

     
           

                

 

  

$                    

 

  

$                    

 

  

                 %

 

     

 

 

16 List each Assignor, as appropriate.

17 List each Assignee, as appropriate.

18 Fill in the appropriate terminology for the types of facilities under the Credit Agreement that are being assigned under this Assignment (e.g. “Revolving Commitment”, “Term Loan Commitment”, etc.).

19 Amounts in this column and in the column immediately to the right to be adjusted by the counterparties to take into account any payments or prepayments made between the Trade Date and the Effective Date.

20 Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder.

 

Exhibit C - 2


7.   

[Trade Date:

       ]21   

Effective Date:                                              , 20     [TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

The terms set forth in this Assignment and Assumption are hereby agreed to:

 

ASSIGNOR

[NAME OF ASSIGNOR]

By:

   

Name:

   

Title:

   

ASSIGNEE

[NAME OF ASSIGNEE]

By:

   

Name:

   

Title:

   

 

[Consented to and]22 Accepted:

MONROE CAPITAL MANAGEMENT ADVISORS,

LLC, as Administrative Agent

By:

   

Name:

   

Title:

   

 

 

21 To be completed if the Assignor and the Assignee intend that the minimum assignment amount is to be determined as of the Trade Date.

22 To be added only if the consent of Administrative Agent is required by the terms of the Credit Agreement.

 

Exhibit C - 3


[Consented to]23
 

By:

   

Name:

   

Title:

   

 

 

 

 

23 To be added only if the consent of Borrower and/or other parties (e.g. Issuing Lender) is required by the terms of the Credit Agreement.

 

 

Exhibit C - 4


ANNEX 1 TO ASSIGNMENT AND ASSUMPTION

[___________________]24

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

1.         Representations and Warranties.

1.1       Assignor.  [The][Each] Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of [the][[the relevant] Assigned Interest, (ii) [the][such] Assigned Interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any statements, warranties or representations made in or in connection with the Credit Agreement or any other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial condition of Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document or (iv) the performance or observance by Borrower, any of its Subsidiaries or Affiliates or any other Person of any of their respective obligations under any Loan Document.

1.2       Assignee.  [The][Each] Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement, (ii) it meets all the requirements to be an assignee under the Credit Agreement (subject to such consents, if any, as may be required under the Credit Agreement), (iii) from and after the Effective Date, it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and, to the extent of [the][the relevant] Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it is sophisticated with respect to decisions to acquire assets of the type represented by [the][such] Assigned Interest and either it, or the Person exercising discretion in making its decision to acquire [the][such] Assigned Interest, is experienced in acquiring assets of such type, (v) it has received a copy of the Credit Agreement, and has received or has been accorded the opportunity to receive copies of the most recent financial statements delivered pursuant to Section __ thereof, as applicable, and such other documents and information as it deems appropriate to make its own credit analysis and decision to enter into this Assignment and Assumption and to purchase [the][such] Assigned Interest, and (vi) it has, independently and without reliance upon Administrative Agent or any other Lender and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Assignment and Assumption and to purchase [the][such] Assigned Interest; and (b) agrees that (i) it will, independently and without reliance upon Administrative Agent, [the][any] Assignor or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents, and (ii) it will perform in

 

 

24 Describe Credit Agreement at option of Administrative Agent.

 

 

Exhibit C - 5


accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender.

2.       Payments.  From and after the Effective Date, Administrative Agent shall make all payments in respect of [the][each] Assigned Interest (including payments of principal, interest, fees and other amounts) to [the][the relevant] Assignor for amounts which have accrued to but excluding the Effective Date and to [the][the relevant] Assignee for amounts which have accrued from and after the Effective Date.

3.       General Provisions.  This Assignment and Assumption shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns. This Assignment and Assumption may be executed in any number of counterparts, which together shall constitute one instrument. Delivery of an executed counterpart of a signature page of this Assignment and Assumption by telecopy shall be effective as delivery of a manually executed counterpart of this Assignment and Assumption. This Assignment and Assumption shall be governed by, and construed in accordance with, the law of the State of Illinois, without regard to conflict of laws principles of such State.

 

 

Exhibit C - 6


EXHIBIT D

FORM OF NOTICE OF BORROWING

To:     Monroe Capital Management Advisors, LLC, as Administrative Agent

Please refer to the Second Amended and Restated Credit Agreement dated as of October 25, 2018 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) among Xponential Fitness LLC, a Delaware limited liability company, St. Gregory Holdco, LLC, a Delaware limited liability company, any Person from time to time joined thereto as a borrower party in accordance with the terms thereof, the other Loan Parties party thereto, the financial institutions that are or may from time to time become parties thereto and Monroe Capital Management Advisors, LLC, as Administrative Agent. Terms used but not otherwise defined herein are used herein as defined in the Credit Agreement.

The undersigned hereby gives irrevocable notice, pursuant to Section 2.2.2 of the Credit Agreement, of a request hereby for a borrowing of Revolving Loans as follows:

 

  i.

The requested borrowing date for the proposed borrowing (which is a Business Day) is ______________, ____.

 

  ii.

The aggregate amount of the proposed borrowing is $______________.

 

  iii.

The type of Loans comprising the proposed borrowing are LIBOR Loans.

 

  iv.

The duration of the Interest Period for each LIBOR Loan made as part of the proposed borrowing, if applicable, is one month.

The undersigned hereby certifies (solely in his/her capacity as an officer of the Borrower Representative, and not in his/her personal capacity) that on the date hereof and on the date of borrowing set forth above, and immediately after giving effect to the borrowing requested hereby: (i) no Default or Event of Default has occurred or is continuing under the Credit Agreement; (ii) each of the representations and warranties contained in the Credit Agreement and the other Loan Documents is true and correct in all material respects as of the date hereof without duplication of any “material” or “Material Adverse Effect” qualifier, except to the extent stated to relate to a specific earlier date, in which case such representations and warranties shall be true and correct in all material respects (without duplication of any “material” or “Material Adverse Effect” qualifier) as of such earlier date; and (iii) the Loan Parties are and shall be in compliance on a pro forma basis with the financial covenants set forth in Section 11.14 computed using the covenant levels and financial information for the most recently ended quarter for which information is available.

 

Exhibit D - 1


Borrower Representative has caused this Notice of Borrowing to be executed and delivered by its signatory thereunto duly authorized on ___________, ______.

 

XPONENTIAL FITNESS LLC

 

By:

   

Name:

   

Title:

   

 

Exhibit D - 2