Exhibit 10.9


 


FIRST AMENDMENT TO EMPLOYMENT
AgREEMENT


 


This First Amendment to Employment
Agreement (this “Amendment”) is entered into by and between The Lovesac Company, a Delaware corporation (the “Company”),
and Jack A. Krause (the “Executive”), effective as of October 2, 2019 (the “Effective Date”).


 


RECITALS


 


WHEREAS, Executive and the
Company previously entered into that certain Employment Agreement effective as of October 26, 2017 (the “Employment Agreement”);
and


 


WHEREAS, Executive and the
Company wish to amend the Employment Agreement to memorialize certain agreements between them regarding Executive’s employment relationship.


 


AGREEMENT


 


NOW, THEREFORE, in consideration
of the foregoing, of the mutual promises contained herein and of other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereby agree as follows:


 


		1.	Annual Bonus. Section 3.2 of the Employment Agreement is hereby amended and restated as
follows:



 


3.2 Annual Bonus.


 


(a) Beginning with fiscal year 2020,
the Company shall pay Executive during the Term an annual bonus of up to 75% of the Base Salary (“Annual Bonus”), provided
that Executive achieves performance targets determined by the Board (or a compensation committee thereof) and as adjusted to take into
account the aggregate cash bonuses payable or paid to the chief executive officer, chief operating officer and chief financial officer
in respect of the applicable fiscal year. In the event that the Company achieves at least 90% of all of its annual performance targets
for the applicable completed fiscal year, the Annual Bonus in respect of such fiscal year shall be 20% of the Base Salary. In the event
that the Company achieves at least 100% of all of its annual performance targets for the applicable completed fiscal year, the Annual
Bonus in respect of such fiscal year shall be 60% of the Base Salary. In the event that the Company achieves at least 110% of all of its
annual performance targets for the applicable completed fiscal year, the Annual Bonus in respect of such fiscal year shall be 75% of the
Base Salary. Performance between 90% and 110% of the applicable performance targets will be interpolated relative to the next threshold
on a linear basis and, in the case of multiple performance targets, by determining the average percentage achieved for the performance
targets.


 






     


     


    

 


(b) The Executive must remain employed
through the bonus payment date to receive any Annual Bonus, provided, however, that in the event of termination of the Executive’s
employment by the Company, for any reason other than for Cause (as defined below), and the performance targets are achieved in accordance
with Section 3.2(a), Annual Bonuses shall be awarded pro rata based on the proportion of such fiscal year served by the Executive.
The Executive shall not be entitled to any such pro rata Annual Bonuses in any fiscal year occurring after the fiscal year in which
the Executive was terminated. The Annual Bonus will be determined by the Board after receipt of the Company’s audited financials
for the applicable year.


 


2.
Incentive Compensation. Section 3.3 of the Employment Agreement is hereby deleted in its entirety.


 


3.
Signing Bonus. Section 3.7 of the Employment Agreement is hereby deleted in its entirety.


 


4.
IPO Allocation. Section 3.8 of the Employment Agreement is hereby deleted in its entirety.


 


5.
Termination with Good Reason or without Cause. Clause (ii) of Section 4.4 of the Employment Agreement is hereby amended
and restated as follows:


 


(ii) coverage under the Company’s
group health plan under COBRA, if elected, paid for by the Company (or be reimbursed for the premiums therefor),


 


6.
Entire Agreement. The Employment Agreement, as amended by this Amendment, and the Company’s 2017 Equity Incentive
Plan, including any equity grant documents under such plan, constitute the entire agreement between the parties with respect to the subject
matter hereof and thereof, and supersede all prior and contemporaneous understandings, agreements, representations and warranties, both
written and oral, to the extent they relate in any way to the subject matter hereof or thereof. In the event of an inconsistency between
the terms of this Amendment and the Employment Agreement, the terms of this Amendment will control. Except as modified hereby, all terms
and conditions of the Employment Agreement will remain in full force and effect and likewise apply to this Amendment.


 


7.
Governing Law. This Amendment shall be governed by and construed and enforced in accordance with and subject to, the laws
of the State of New York applicable to agreements made and to be performed entirely within such state.


 


8.
Counterparts; Facsimile Signatures. This Amendment may be executed in separate counterparts, each of which shall be deemed
an original, but all of which together shall constitute one and the same instrument. Signatures to this Amendment may be transmitted
by e-mail in pdf or similar format or facsimile and such transmissions shall be deemed an original.


 






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IN WITNESS WHEREOF, the parties hereto have executed this Amendment
as of the date first set forth above.


 


	THE LOVESAC COMPANY	 
	 	 	 
	By:	/s/ Donna Dellomo	 
	Name: 	Donna Dellomo	 
	Title:	EVP and CFO	 
	 	 	 
	Jack A. Krause	 
	 	 
	/s/ Jack A. Krause	 


 


 


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