Document:

Exhibit

Exhibit 10.25r

TIFFANY & CO.
a Delaware Corporation
(the “Parent”)
TERMS OF RESTRICTED STOCK UNIT GRANT
(Non-Transferable)
under the
  2014 EMPLOYEE INCENTIVE PLAN
(the “Plan”)
Terms Effective March 16, 2017

		
	1.
	Introduction and Terms of Grant.  Participant has been granted (the “Grant”) restricted stock units (“Stock Units”) that shall be settled by the issuance and delivery of shares of Common Stock (“Shares”).  The Grant has been made under the Plan by the Committee.  The name of the “Participant,” the “Grant Date” and the number of “Stock Units” granted are stated in the attached “Notice of Grant.”  The other terms and conditions of the Grant are stated in this document and in the Plan.  If Participant has the title of Vice President or a more senior title, this Grant will be void unless Participant executes and delivers to Parent those certain Non-Competition and Confidentiality Covenants in the form approved by the Committee within 180 days after the Grant Date.  As used herein, “Stock Units” refers to Stock Units included in this Grant, and not to other stock units that may have been or may be granted. 

		
	2.
	Maturity Dates - Vesting in Installments.  Unless otherwise provided in Section 5, the Stock Units granted hereunder will vest in one or more installments (each, an “Installment”) on a single date or series of dates (each, a “Maturity Date”) according to the schedule set forth in the Notice of Grant.   In the event such schedule would result in an Installment that includes a fractional Stock Unit, such fractional Unit will not vest on the relevant Maturity Date, but will vest on a subsequent Maturity Date if, when added to other fractional Stock Units that would otherwise vest, such vesting would result in the vesting of a whole Stock Unit.  If the application of the foregoing sentence fails to result in the eventual vesting of a full Stock Unit, any fractional Stock Units will be deemed to have expired, and Parent shall not be obligated to issue Shares or cash, or have any other obligation, concerning such fractional Units.  

		
	3.
	Settlement.

		
	(a)
	Upon the vesting of any Installment, the Settlement Value of the Installment will be issued and delivered in Shares to or for the account of Participant, and any fractional Dividend Equivalent Units credited on such Installment will be settled by the delivery of cash.  In each case, delivery will be made within thirty (30) days following the vesting date to Participant or an Approved Broker for the account of Participant. 

		
	(b)
	With respect to any Installment, “Settlement Value” means the number of Shares equal to the number of Stock Units included in such Installment, plus the number of whole Dividend Equivalent Units credited on such Installment pursuant to Section 4.  The Settlement Value shall be subject to further adjustment as provided in Section 4.2(c) of the Plan, to adjust for, among other corporate 

developments, stock splits and stock dividends.  References to Settlement Values in this document shall be deemed references to Settlement Values as so adjusted.  

(c)  Until a Share is issued and delivered it shall not be registered in the name of Participant.  Shares that have not been issued and delivered shall be represented by Stock Units.

		
	(d)
	In all circumstances, a Stock Unit that fails to vest on or before the Maturity Date shall be null and void and shall not confer upon Participant any rights, including any right to any Share.

4.  Dividend Equivalent Units; Interest.  Interest shall not accrue on, or be payable with respect to, any Stock Unit.  Participant will be credited with dividend equivalents on Stock Units in the following manner:  on any date (a “Dividend Date”) Parent pays an ordinary cash dividend on Common Stock, and provided the Grant Date is on or prior to the record date for such dividend, for each Installment of Stock Units included in this Grant, Participant will be credited with “Dividend Equivalent Units” in an amount equal to:  (i) the product of (A) the number of outstanding Stock Units included in the Installment plus any whole Dividend Equivalent Units previously credited on such outstanding Stock Units under this Section 4, and (B) the per share cash dividend paid on the Dividend Date, divided by (ii) the simple arithmetic mean of the high and low sale price of Common Stock on the New York Stock Exchange on the Dividend Date.  For the avoidance of doubt, no dividends or cash in respect of Dividend Equivalent Units will be delivered until the vesting and settlement, if any, of the underlying Stock Units.   

5.  Effect of Termination of Employment or Change in Control.  

		
	(a) 
	Generally.  Upon Participant’s Termination Date, any unvested Stock Units shall be deemed to have “expired,” unless otherwise provided below.  An expired Stock Unit shall be void and shall not confer rights to Shares or Dividend Equivalent Units or any other rights.  

		
	(b) 
	Termination due to death or Disability.  If Participant’s Termination Date occurs by reason of death or Disability, all unvested, unexpired Installments will vest on the Termination Date. 

		
	(c) 
	Involuntary termination without Cause. If Participant’s Termination Date occurs by reason of involuntary termination of Participant’s employment without Cause, all unvested, unexpired Installments shall vest on the corresponding Maturity Dates specified in the Notice of Grant; provided, however, that no Stock Units shall vest pursuant to this Section 5(c) if the Committee determines that Participant materially breached the terms and conditions of any applicable confidentiality, non-competition, non-solicitation or other restrictive covenants on or prior to the applicable vesting date of such Stock Units. 

		
	(d) 
	Effect of Change in Control.  Upon the earlier of (i) the date of any Change in Control, if such Change in Control effects a Terminating Transaction, or (ii) Participant’s Involuntary Termination, all unvested, unexpired Installments shall vest.  

6.  Withholding for Taxes.   All distributions of Shares shall be subject to withholding of all applicable taxes as computed by Employer, and Participant shall make arrangements satisfactory to Parent to provide Parent (or Employer) with funds necessary for such withholding before the Shares are delivered. Without limitation to Parent’s right to establish other arrangements, Parent may: (i) designate an Approved Broker to establish trading accounts for Participants,  (ii) deliver Shares to such an account; (iii) provide such Approved Broker information concerning the applicable tax withholding rates for Participant; (iv) cause such Approved Broker to sell, on behalf of Participant, sufficient Shares to  cover  Parent’s tax withholding obligations with respect to any delivery of Shares to Participant (a “Covering Sale”); and (v) cause such Approved Broker to remit funds resulting from a Covering Sale to Parent or Employer.  

	
			
	Tiffany & Co. 2014 Employee Incentive Plan                        
Restricted Stock Unit Grant Terms, March 16, 2017

	 
	Page 2

Participant may, by written notice to Parent addressed to Parent’s Corporate Secretary, given no less than ten (10) business days before an applicable Maturity Date, elect to avoid a Covering Sale, by delivering with such notice a bank-certified check payable to Parent (or other type of check or draft payable to Parent and acceptable to its Corporate Secretary) in the estimated amount of any such withholding required, such estimate to be provided by Employer. The Committee may approve other methods of withholding, as provided for in the Plan, before the Shares are delivered.

7.  Transferability. The Stock Units are not transferable other than by will or the laws of descent and distribution, and shall not otherwise be transferred, assigned, pledged, hypothecated or disposed of in any way, whether by operation of law or otherwise, nor shall they be subject to execution, attachment or similar process. Upon any attempt to transfer the Stock Units other than as permitted herein or to assign, pledge, hypothecate or dispose of the Stock Units other than as permitted herein, or upon the levy of any execution, attachment or similar process upon the Grant, the Grant shall immediately terminate and become null and void.

8.  Definitions.  For the purposes of the Grant, capitalized terms shall have the meanings provided herein or the Definitional Appendix attached.  Except where the context clearly implies or indicates the contrary, a word, term, or phrase used in the Plan shall have the same meaning in this document.

9.  Heirs and Successors.  The terms of the Grant shall be binding upon, and inure to the benefit of, Parent and its successors and assigns, and upon any person acquiring, whether by merger, consolidation, purchase of assets or otherwise, all or substantially all of Parent’s assets and business.  Participant may designate a beneficiary of his/her rights under the Grant by filing written notice with the Corporate Secretary of Parent.  In the event of Participant’s death prior to settlement, delivery of any vested amounts pursuant to Section 3 shall be made to such beneficiary or, if Participant fails to designate a beneficiary or the designated beneficiary dies before Participant, to Participant’s estate.

10.  Administration.  The authority to manage and control the operation and administration of the Grant shall be vested in the Committee, and the Committee shall have all powers with respect to the Grant as it has with respect to the Plan.  Any interpretation of the Grant by the Committee and any decision made by it with respect to the Grant is final and binding.

11.  Plan Governs.  Notwithstanding anything in this document to the contrary, the terms of the Grant shall be subject to the terms of the Plan, a copy of which has been provided to Participant.

12.  Securities Matters.  All Shares shall be subject to the restrictions on sale, encumbrance and other disposition provided by federal or state law.  Parent shall not be obligated to sell or issue any Shares pursuant to this document unless, on the date of sale and issuance thereof, such Shares are either registered under the Securities Act, and all applicable state securities laws, or are exempt from registration thereunder.  Regardless of whether the offering and sale of Shares under the Plan have been registered under the Securities Act, or have been registered or qualified under the securities laws of any state, Parent at its discretion may impose restrictions upon the sale, pledge or other transfer of such Shares (including the placement of appropriate legends on stock certificates or the imposition of stop-transfer instructions) if, in the judgment of Parent, such restrictions are necessary in order to achieve compliance with the Securities Act or the securities laws of any state or any other law. 
13.  Investment Purpose.  Unless the Shares are registered under the Securities Act, any and all Shares acquired by Participant under this document will be acquired for investment for Participant’s own account and not with a view to, for resale in connection with, or with an intent of participating directly or indirectly in, any distribution of such Shares within the meaning of the Securities Act.  Participant shall not sell, transfer or otherwise dispose of such Shares unless they are either (i) registered under the 

	
			
	Tiffany & Co. 2014 Employee Incentive Plan                        
Restricted Stock Unit Grant Terms, March 16, 2017

	 
	Page 3

Securities Act and all applicable state securities laws, or (ii) exempt from such registration in the opinion of Parent’s counsel.
14.  No Guarantee of Continued Employment or Service.  This document, the transactions contemplated hereunder and the vesting schedule set forth herein do not constitute an express or implied promise of continued employment or other service for the vesting period or for any other period, and shall not interfere with Participant’s right or the right of the Employer, Parent or any Affiliate to terminate the employment or service relationship at any time, with or without cause, subject to the terms of any written employment agreement (including any offer letter) between Participant and the Employer, Parent or any Affiliate.

15.  Entire Document; Governing Law.  The Plan and this document constitute the entire terms with respect to the subject matter hereof and supersede in their entirety all prior undertakings of Employer, Parent or any Affiliate.  In the event of any conflict between this document and the Plan, the Plan shall be controlling, except as otherwise specifically provided in the Plan. This document shall be construed under the laws of the State of New York, without regard to conflict of laws principles.
16.  Opportunity for Review.  Participant has reviewed the Plan and this document in their entirety, has had an opportunity to obtain the advice of counsel and fully understands all provisions of the Plan and this document.  All decisions or interpretations of the Committee upon any questions relating to the Plan and this document shall be binding, conclusive and final.  
17.  Section 409A.   Notwithstanding anything herein to the contrary, any benefits and payments provided hereunder that are payable or provided to Participant in connection with a termination of employment that constitute deferred compensation within the meaning of Code Section 409A shall not commence in connection with Participant’s termination of employment unless and until Participant has also incurred a Separation from Service, and unless Parent reasonably determines that such amounts may be provided to Participant without causing Participant to incur additional tax obligations under Code Section 409A.  For the avoidance of doubt, it is intended that payments hereunder comply with or satisfy, to the greatest extent possible, the exemptions from the application of Code Section 409A.  However, if Parent determines that these payments constitute deferred compensation and Participant is, on the termination of his service, a Specified Employee of Employer, then, solely to the extent necessary to avoid the incurrence of the adverse personal tax consequences under Code Section 409A, the timing of the payments shall be delayed until the earlier to occur of: (i) the date that is six months and one day after Participant’s Separation from Service or (ii) the date of Participant’s death that occurs after Participant’s Separation from Service.  

In no event shall Parent, Employer, or any Affiliate have any liability or obligation with respect to taxes, penalties, interest or other expenses for which Participant may become liable as a result of the application of Code Section 409A.  Notwithstanding anything herein to the contrary, these terms are intended to be interpreted and applied so that the payments and benefits set forth herein either shall either be exempt from the requirements of Code Section 409A, or shall comply with the requirements of Code Section 409A, and, accordingly, to the maximum extent permitted, this document shall be interpreted to be exempt from or in compliance with Code Section 409A.  To the extent that any provision under this document is ambiguous as to its compliance with Code Section 409A, the provision shall be interpreted in a manner so that no amount payable to Participant shall be subject to an “additional tax” within the meaning of Code Section 409A.  For purposes of Code Section 409A, each payment provided under this document shall be treated as a separate payment.  Notwithstanding any other provision of this document, payments provided under this document may only be made upon an event and in a manner that complies with Code Section 409A or an applicable exemption. 

	
			
	Tiffany & Co. 2014 Employee Incentive Plan                        
Restricted Stock Unit Grant Terms, March 16, 2017

	 
	Page 4

In addition to the provisions regarding Code Section 409A set forth above, the following shall apply:

If Participant notifies Parent that Participant believes that any provision of this document (or of any award of compensation or benefit, including equity compensation or benefits provided herein or at any time during his employment with Employer) would cause Participant to incur any additional tax or interest under Code Section 409A or Parent independently makes such determination, Parent shall, after consulting with Participant, reform such provision (or award of compensation or benefit) to attempt to comply with or be exempt from Code Section 409A through good faith modifications to the minimum extent reasonably appropriate.  To the extent that any provision hereof (or award of compensation or benefit) is modified in order to comply with Code Section 409A, such modification shall be made in good faith and shall, to the maximum extent reasonably possible, maintain the original intent and economic benefit to Participant and Parent without violating the provisions of Code Section 409A.

	
			
	Tiffany & Co. 2014 Employee Incentive Plan                        
Restricted Stock Unit Grant Terms, March 16, 2017

	 
	Page 5

Appendix I - Definitions

“Affiliate” shall mean any Person that controls, is controlled by or is under common control with, any other Person, directly or indirectly.

“Approved Broker” means one or more securities brokerage or financial services firms designated by Parent from time to time.  

“Cause” shall mean a termination of employment which is the result of:

		
	(i)
	Participant’s conviction or plea of guilty or nolo contendere to a felony or any other crime involving financial impropriety or moral turpitude which would tend to subject Parent or any Affiliate of Parent to public criticism or to materially interfere with Participant’s continued employment;

		
	(ii)
	Participant's willful and material violation of (A) Parent’s Business Conduct Policy - Worldwide or (B) if applicable, Parent’s Code of Business and Ethical Conduct for Directors, the Chief Executive Officer, the Chief Financial Officer and All Other Officers of the Company, in each case as such policy may be amended from time to time; 

		
	(iii)
	Participant’s willful failure, or willful refusal, to substantially perform or attempt to substantially perform his or her duties or all such proper and achievable directives issued by Participant’s manager or the Parent Board (other than any such failure resulting from incapacity due to physical or mental illness, or any such refusal made in good faith because Participant believes such directives to be illegal, unethical or immoral), provided Participant receives written notice demanding substantial performance and fails to comply within ten (10) business days of such demand;

		
	(iv)
	Participant’s gross negligence in the performance of Participant’s duties and responsibilities that is materially injurious to Parent or any Affiliate of Parent;

		
	(v)
	Participant’s willful breach of any material obligation that Participant has to Parent or any Affiliate of Parent under any written agreement with Parent or such Affiliate;

		
	(vi)
	Participant's fraud, dishonesty, or theft with regard to Parent or any Affiliate of Parent; and

		
	(vii)
	Participant’s failure to reasonably cooperate in any investigation of alleged misconduct by Participant, or by any other employee of Parent or any Affiliate of Parent.

For purposes of the foregoing, no act or failure to act on Participant’s part shall be deemed “willful” unless done, or omitted to be done, by Participant in bad faith toward, or without reasonable belief that his or her action or omission was in the best interests of, Parent or any Affiliate of Parent.  

“Change in Control” shall mean the occurrence of any of the following:

		
	(i)
	Any Person or group (as defined in Rule 13d-5 under the Exchange Act) of Persons (excluding (i) Parent or any of its Affiliates, (ii) a trustee or any fiduciary holding securities under an employee benefit plan of Parent or any of its Affiliates, (iii) an 

	
			
	Tiffany & Co. 2014 Employee Incentive Plan                        
Restricted Stock Unit Grant Terms, March 16, 2017

	 
	Page 6

underwriter temporarily holding securities pursuant to an offering of such securities, (iv) a corporation owned, directly or indirectly by stockholders of Parent in substantially the same proportions as their ownership of Parent, or (v) any surviving or resulting entity or ultimate parent entity resulting from a reorganization, merger, consolidation or other corporate transaction referred to in clause (iii) below that does not constitute a Change in Control under clause (iii) below) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of Parent representing thirty-five percent (35%) or more of the combined voting power of Parent’s then outstanding securities entitled to vote in the election of directors of Parent; 

		
	(ii)
	If the individuals who, as of March 16, 2016, constitute the Parent Board (such individuals, the “Incumbent Board”) cease for any reason to constitute a majority of the Parent Board, provided that any person becoming a director subsequent to such date whose election, or nomination for election by the Parent’s shareholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such person were a member of the Incumbent Board;

		
	(iii)
	The consummation of a reorganization, merger, consolidation or other corporate transaction involving Parent, in each case with respect to which the stockholders of Parent immediately prior to the consummation of such transaction would not, immediately after the consummation of such transaction, own more than fifty percent (50%) of the combined voting power of the surviving or resulting Person or ultimate parent entity resulting from such transaction, as the case may be; or

 
		
	(iv)
	Assets representing fifty percent (50%) or more of the consolidated assets of Parent and its subsidiaries are sold, liquidated or distributed in a transaction (or series of transactions within a twelve (12) month period), other than such a sale or disposition immediately after which such assets will be owned directly or indirectly by the stockholders of Parent in substantially the same proportions as their ownership of the common stock of Parent immediately prior to such sale or disposition.

“Code” shall mean the Internal Revenue Code of 1986, as amended, and any successor provisions thereto.

“Committee” means the Compensation Committee of the Parent Board and/or the Stock Option Subcommittee thereof.  

“Common Stock” shall mean the common stock of Parent.

“Disability” shall mean Participant’s incapacity due to physical or mental illness which causes Participant to be absent from the full-time performance of Participant’s duties with Employer for six (6) consecutive months; provided, however, that Participant shall not be determined to be subject to a Disability unless Participant fails to return to full-time performance of Participant’s duties with Employer within thirty (30) days after Employer delivers a written notice to Participant advising Participant of the impending termination of his or her employment due to Disability. 

“Eligible Termination” shall mean the involuntary termination of Participant’s employment without Cause, provided that at the time of such termination Participant is a Senior Officer and has completed at least ten (10) years of service as a Senior Officer.  

    

	
			
	Tiffany & Co. 2014 Employee Incentive Plan                        
Restricted Stock Unit Grant Terms, March 16, 2017

	 
	Page 7

“Employer” shall mean the Affiliate of Parent that employs Participant from time to time, and any successor to its business and/or assets by operation of law or otherwise.
    
“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and any successor act or provisions thereto.

“Good Reason” means any one or more of the following actions taken without Participant’s consent:

		
	(i)
	a material adverse change in Participant’s duties, authority, responsibilities or reporting responsibility; 

		
	(ii)
	a failure of any successor to Employer or Parent (whether direct or indirect and whether by merger, acquisition, consolidation, asset sale or otherwise) to assume in writing any obligations arising out of any agreement between Employer or Parent and Participant;

		
	(iii)
	any other action or inaction that constitutes a material breach by Employer or Parent of any agreement between Participant and Employer.  For the avoidance of doubt, any payout of a short-term incentive or annual bonus for a given fiscal year which is less than the target shall not constitute Good Reason, provided that such lower payout is based upon the failure to meet pre-determined performance goals or a good faith determination by Employer or the Committee of Parent Board that Parent’s financial performance or Participant’s personal performance did not warrant a greater payout; 

		
	(iv)
	Parent’s failure to comply with the terms of any equity award granted to or required by contract to be granted to Participant; or

		
	(v)
	the relocation of Employer’s office where Participant was based immediately prior to a Change in Control to a location more than fifty (50) miles away, or should Employer require Participant to be based more than fifty (50) miles away from such office (except for required travel on Employer’s business to an extent substantially consistent with Participant’s customary business travel obligations in the ordinary course of business prior to a Change in Control).

Notwithstanding the foregoing, Participant must give written notice to the Corporate Secretary of Parent of the occurrence of an event or condition that constitutes Good Reason no later than ninety (90) days following the occurrence of such event or condition, and Employer shall have thirty (30) days from the date on which such written notice is received to cure such event or condition.  If Employer is able to cure such event or condition within such 30-day period (or any longer period agreed upon in writing by Participant and Employer), such event or condition shall not constitute Good Reason hereunder.  If Employer fails to cure such event or condition, Participant’s termination for Good Reason shall be effective immediately following the end of such 30-day cure period (or any such longer period agreed upon in writing by Participant and Employer).
        
“Incumbent Board” shall have the meaning provided in sub-section (ii) of the definition entitled “Change in Control.”

“Involuntary Termination” means, following a Change in Control, (i) Employer’s involuntary termination of Participant’s employment without Cause, or (ii) Participant’s resignation from Employer due to Good Reason within one year following such Change in Control.  

    

	
			
	Tiffany & Co. 2014 Employee Incentive Plan                        
Restricted Stock Unit Grant Terms, March 16, 2017

	 
	Page 8

“Parent” shall mean Tiffany & Co., and any successor to all or substantially all of its business and/or assets by operation of law or otherwise.

“Parent Board” shall mean the Board of Directors of Parent.
    
“Person” shall mean any individual, firm, corporation, partnership, limited partnership, limited liability partnership, business trust, limited liability company, unincorporated association or other entity, and shall include any successor (by merger or otherwise) of such entity.

“Retirement” shall mean Participant’s voluntary resignation from employment with Employer after reaching age 65, or after reaching age 55 if Participant has completed 10 years of employment with Employer prior to Participant’s Termination Date.  

“Senior Officer” means an officer of Parent appointed by the Parent Board and having one or more of the following titles:  Senior Vice President, Executive Vice President, or Chief Executive Officer.

“Separation from Service” means a “separation from service” as defined in Treasury Regulation Section 1.409A-1(h). 

“Share” means a share of Common Stock.

“Specified Employee” means a “specified employee” as defined in Code Section 409A(a)(2)(B)(i). 

“Terminating Transaction” shall mean any one of the following:

(i)    the dissolution or liquidation of Tiffany & Co.;

(ii)    a reorganization, merger or consolidation of Tiffany & Co. with one or more Persons as a result of which Tiffany & Co. goes out of existence or becomes a subsidiary of another Person; or 

(iii)     upon the acquisition of substantially all of the property or more than eighty percent (80%) of the then outstanding stock of Tiffany & Co. by another Person;

provided that none of the foregoing transactions (i) through (iii) will be deemed to be a Terminating Transaction, if as of a date at least fourteen (14) days prior to the date scheduled for such transaction provisions have been made in writing in connection with such transaction for the assumption of the Grant or the substitution for the Grant of a new grant covering the publicly-traded stock of a successor Person, with appropriate adjustments as to the number and kind of shares.

“Termination Date” shall mean the first day on which Participant’s employment with Employer terminates for any reason; provided that a termination of employment shall not be deemed to occur by reason of the transfer of employment between Employers; and further provided that such employment shall not be considered terminated while Participant is on a leave of absence approved by Employer or required by applicable law.  If, as a result of a sale or other transaction, Employer ceases to be an Affiliate of Parent, the occurrence of such transaction shall be treated as the Termination Date, and Participant’s employment will be deemed to have been involuntarily terminated without cause.  

“Tiffany & Co.” shall mean Tiffany & Co., a Delaware corporation.

	
			
	Tiffany & Co. 2014 Employee Incentive Plan                        
Restricted Stock Unit Grant Terms, March 16, 2017

	 
	Page 9EX-10.1

 Exhibit 10.1 

COOPERATION AGREEMENT 

This COOPERATION AGREEMENT (this “Agreement”), dated as of March 16, 2018, is made and entered into by and among SPS
Commerce, Inc., a Delaware corporation (the “Company”); Legion Partners Holdings, LLC, a Delaware limited liability company (“Legion Partners”), and each of the other persons and entities set forth on Exhibit
A hereto (collectively with Legion Partners and together with any other Affiliates of Legion Partners who are or hereafter become beneficial owners of any shares of Common Stock, the “Legion Investors”); and Ancora Advisors,
LLC, a Nevada limited liability company (“Ancora Advisors”), and each of the other persons and entities set forth on Exhibit B hereto (collectively with Ancora Advisors and together with any other Affiliates of Ancora
Advisors who are or hereafter become beneficial owners of any shares of Common Stock, the “Ancora Investors”). The Legion Investors and the Ancora Investors are collectively referred to as the “Investor Group,” with
each member of the Investor Group being referred to as an “Investor.” The Investor Group and the Company are collectively referred to as the “Parties.” 

WHEREAS, Legion Partners submitted a notice on February 21, 2018 (the “Stockholder Nomination”), providing notice of
Legion Partners’ intention to nominate certain individuals for election to the Company’s Board of Directors (the “Board”) at the Company’s 2018 annual meeting of stockholders (the “2018 Annual
Meeting”); 
 WHEREAS, the Company and the Investor Group have engaged in discussions regarding the Company’s Board
composition and the Company’s business, financial performance, and strategic plans; 
 WHEREAS, as of the date of this Agreement, the
Legion Investors are deemed to beneficially own that number of shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”), as set forth on Exhibit A hereto; 

WHEREAS, as of the date of this Agreement, the Ancora Investors are deemed to beneficially own that number of shares of Common Stock as set
forth on Exhibit B hereto; and 
 WHEREAS, the Company and the Investor Group believe that the best interests of
the Company and its stockholders (including the Investor Group) would be served at this time by, among other things, coming to an agreement with respect to the composition of the Board, the 2018 Annual Meeting and certain other matters, as provided
in this Agreement. 
 NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants and agreements contained herein,
and for other good and valuable consideration, the 

 
receipt and sufficiency of which are hereby acknowledged, the Parties hereto, intending to be legally bound hereby, agree as follows: 

1.    Board Matters. 

(a)    Board Composition. 

(i)    Simultaneously with the execution of this Agreement, the Company agrees that the Board and all
applicable committees thereof shall (A) increase the size of the Board from seven members to ten members until the 2018 Annual Meeting, at which time the size of the Board shall be nine members; (B) appoint Melvin L. Keating and Michael J.
McConnell (each, an “Investor Group Nominee”) to the Board; and (C) appoint Marty M. Reaume (the “Additional Independent Nominee” and, collectively with the Investor Group Nominees, the “New
Directors”) to the Board. 
 (ii)    Prior to the mailing of its definitive proxy statement for
the 2018 Annual Meeting, the Company agrees that the Board and all applicable committees thereof shall take all necessary actions to nominate for re-election to the Board at the 2018 Annual Meeting
(A) the Investor Group Nominees; (B) the Additional Independent Nominee; and (C) Archie C. Black, Martin J. Leestma, James B. Ramsey, Tami L. Reller, Philip E. Soran, and Sven A. Wehrwein (the “Continuing Directors”).

 (b)    Candidate Information. The Investor Group acknowledges that each New Director shall have
provided to the Company information required to be, or customarily disclosed by, directors or director candidates in proxy statements or other filings under applicable law or stock exchange rules or listing standards, information in connection with
assessing eligibility, independence, and other criteria applicable to directors, and a fully completed, true and accurate copy of the Company’s standard director questionnaire and other reasonable and customary director onboarding
documentation. The Investor Group acknowledges that each New Director (and any Replacement of an Investor Group Nominee) shall be required to provide the Company with such information as reasonably requested from all members of the Board as is
required to be disclosed under applicable law or stock exchange regulations, in each case as promptly as necessary to enable the timely filing of the Company’s proxy statement and other periodic reports with the U.S. Securities and Exchange
Commission (the “SEC”). 
 (c)    Board Size. The Company agrees that the Board
shall not, without the consent of the Investor Group, increase the size of the Board to more than nine directors from and after the 2018 Annual Meeting until the expiration of the Standstill Period. 

(d)    Solicitation. At the 2018 Annual Meeting, the Company agrees to recommend, support, and
solicit proxies for the election of the Investor Group Nominees (and any Replacement, if applicable) and the Additional Independent Nominee in the same manner as the Company recommends, supports, and solicits proxies for the election of the
Continuing Directors. 
 (e)    Benefits. The Company agrees that each New Director shall receive
(i) the same benefits of director and officer insurance, and any indemnity and exculpation 

  
 2 

 
arrangements available generally to the other directors on the Board, (ii) the same compensation for his or her service as a director as the compensation received by other non-management directors on the Board, and (iii) such other benefits on the same basis as all other non-management directors on the Board, including having the Company
(or its legal counsel) prepare and file with the SEC, at the Company’s expense, all Forms 3, 4, and 5 under Section 16 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), that are required to be filed
by each director of the Company. 
 (f)    Board Policies and Procedures. Each Party acknowledges
that each New Director (and any Replacement), upon election to the Board, shall be governed by all of the same policies, processes, procedures, codes, rules, standards, and guidelines applicable to members of the Board, including the Company’s
Corporate Governance Guidelines, Code of Business Conduct and Ethics, and policies on insider trading, stock ownership, public disclosures and confidentiality, and shall be required to strictly adhere to the Company’s policies on
confidentiality imposed on all members of the Board. 
 (g)    Company Rights. The Investor Group
agrees that the Company’s obligations under this Section 1 shall terminate, effective immediately, upon such time as any Investor or any Affiliate thereof submits a notice of a nomination of directors for election to
the Board during the Standstill Period. 
 (h)    Replacement Director. For so long as the
Investor Group beneficially owns, in the aggregate, at least 2% of the Company’s currently outstanding Common Stock, if, from the date hereof until the expiration of the Standstill Period, any Investor Group Nominee is unable or unwilling to
serve as an independent director for any reason, the Investor Group shall have the right to propose a replacement for such director (a “Replacement”) with relevant financial and business experience, who qualifies as
“independent” pursuant to the listing standards of The Nasdaq Stock Market LLC (“NASDAQ”), who is not an officer, director, employee, or Affiliate of any Investor and who does not receive compensation from any Investor,
and whose qualifications are substantially similar to the Investor Group Nominee who is being replaced (and who satisfies Company policies applicable to all directors). Subject to the written mutual agreement of the Company and the Investor Group,
not to be unreasonably withheld or delayed, such Replacement shall be promptly appointed to the Board and deemed to be an Investor Group Nominee for all purposes hereof (it being understood that the Company and the Investor Group shall work together
expeditiously and in good faith to mutually agree upon a Replacement meeting the standards described above). 

(i)    Committees. 

(i)    Within six months following the execution of this Agreement, the Board shall form a Finance and
Strategy Committee of the Board (the “Finance and Strategy Committee”) and shall appoint the Investor Group Nominees to such committee. From and after the formation of the Finance and Strategy Committee until the expiration of the
Standstill Period, (A) the Investor Group Nominees (and any Replacement) shall be members of the Finance and Strategy Committee, and (B) the Company shall not undertake any Extraordinary Transaction (as defined below) until such
transaction shall have been reviewed by such committee. 

  
 3 

 (ii)    Subject to applicable law and the rules of NASDAQ, if
any, that are applicable to the composition of such committee, during the Standstill Period, the Board and all applicable committees of the Board shall give the New Directors the same due consideration for membership to each other committee of the
Board as any other independent director. 
 2.    Stockholder Meetings. 

(a)    The Investor Group hereby irrevocably withdraws the Stockholder Nomination and any related materials
or notices submitted to the Company in connection therewith. 
 (b)    At each annual or special meeting
of stockholders held prior to the expiration of the Standstill Period, each Investor agrees to (i) appear at such stockholders’ meeting or otherwise cause all shares of Common Stock beneficially owned by such Investor and its respective
Affiliates to be counted as present for purposes of establishing a quorum, (ii) vote, or cause to be voted, all shares of Common Stock beneficially owned by such Investor and its respective Affiliates on the Company’s proxy card or voting
instruction form in favor of (A) each of the directors nominated by the Board and recommended by the Board in the election of directors (and not in favor of any other nominees to serve on the Board), and (B) each of the proposals listed on
the Company’s proxy card or voting instruction form as identified in the Company’s proxy statement in accordance with the Board’s recommendations, including in favor of all other matters recommended for stockholder approval by the
Board, and (iii) not execute any proxy card or voting instruction form in respect of such stockholders’ meeting other than the proxy card and related voting instruction form being solicited by or on behalf of the Board; provided
that, notwithstanding the foregoing, to the extent that the recommendation of either Institutional Shareholder Services Inc. (“ISS”) or Glass Lewis & Co., LLC (“Glass Lewis”) differs from the Board’s
recommendation with respect to any matter other than nominees for election as directors to the Board, each Investor shall have the right to vote in accordance with the recommendation of ISS or Glass Lewis with respect to such matters; and
provided further that each Investor shall have the right to vote in their sole discretion with respect to any merger, acquisition, recapitalization, financing transaction, restructuring, disposition, distribution, spin-off, asset sale, joint venture or other business combination involving the Company or of any of its Affiliates (each, an “Extraordinary Transaction”). 

(c)    The Company shall use its reasonable best efforts to hold the 2018 Annual Meeting no later than
June 15, 2018. 
 3.    Standstill. 

(a)    Except as otherwise contemplated or permitted hereunder, from the date of this Agreement until the
expiration of the Standstill Period, each Investor shall not, and 

  
 4 

 
shall cause its respective Affiliates, principals, directors, general partners, officers, employees and, to the extent acting on their behalf, agents and representatives (collectively, the
“Related Persons”), not to, directly or indirectly: 
 (i)    make any announcement or
proposal with respect to, or offer, seek, propose, or indicate an interest in (A) any form of business combination or acquisition or other transaction relating to a material amount of assets or securities of the Company or any of its
subsidiaries, (B) any form of restructuring, recapitalization or similar transaction with respect to the Company or any of its subsidiaries, or (C) any form of tender or exchange offer for the Common Stock, whether or not such transaction
involves a change of control of the Company (it being understood that the foregoing shall not prohibit Investors or their Affiliates from acquiring Common Stock within the limitations set forth in Section 3(a)(iii)); 

(ii)    engage in any solicitation of proxies or written consents to vote any voting securities of the
Company, or conduct any nonbinding referendum with respect to any voting securities of the Company, or assist or participate in any other way, directly or indirectly, in any solicitation of proxies (or written consents) with respect to any voting
securities of the Company, or otherwise become a “participant” in a “solicitation,” as such terms are defined in Instruction 3 of Item 4 of Schedule 14A and Rule 14a-1 of Regulation 14A,
respectively, under the Exchange Act, to vote any securities of the Company; 
 (iii)    purchase or
otherwise acquire, or offer, seek, propose, or agree to acquire, ownership (including beneficial ownership as defined in Rule 13d-3 under the Exchange Act) of any securities of the Company, any direct or
indirect rights or options to acquire any such securities, any derivative securities or contracts or instruments in any way related to the price of shares of common stock of the Company, or any assets or liabilities of the Company; provided
that the Investor Group, in the aggregate, may acquire beneficial ownership of up to 9.9% of the outstanding shares of Common Stock; 

(iv)    seek to advise, encourage, or influence any person with respect to the voting of (or execution of a
written consent in respect of) or disposition of any securities of the Company; 
 (v)    sell, offer, or
agree to sell, directly or indirectly, through swap or hedging transactions or otherwise, the securities of the Company or any rights decoupled from the underlying securities held by the Investor Group to any person or entity not (A) a Party to
this Agreement, (B) a member of the Board, (C) an officer of the Company, or (D) an Affiliate of the Investor Group (any person or entity not set forth in clauses (A)-(D) shall be referred to as a “Third Party”) that
would knowingly result in such Third Party, together with its Affiliates, owning, controlling or otherwise having any, beneficial or other ownership interest representing in the aggregate in excess of 4.9% of the shares of Common Stock outstanding
at such time; 

  
 5 

 (vi)    take any action in support of or make any proposal or
request that constitutes: (A) advising, controlling, changing, or influencing the Board or management of the Company, including any plans or proposals to change the number or term of directors or to fill any vacancies on the Board, except as
set forth in this Agreement, (B) any material change in the capitalization, stock repurchase programs and practices, or dividend policy of the Company, (C) any other material change in the Company’s management, business, or corporate
structure, (D) seeking to have the Company waive or make amendments or modifications to the Company’s Certificate of Incorporation or Bylaws, or other actions that may impede or facilitate the acquisition of control of the Company by any
person, (E) causing a class of securities of the Company to be delisted from, or to cease to be authorized to be quoted on, any securities exchange, or (F) causing a class of securities of the Company to become eligible for termination of
registration pursuant to Section 12(g)(4) of the Exchange Act; 
 (vii)    communicate with
stockholders of the Company or others pursuant to Rule 14a-1(l)(2)(iv) under the Exchange Act; 

(viii)    engage in any course of conduct with the purpose of causing stockholders of the Company to vote
contrary to the recommendation of the Board on any matter presented to the Company’s stockholders for their vote at any meeting of the Company’s stockholders; 

(ix)    call or seek to call, or request the call of, alone or in concert with others, any meeting of
stockholders, whether or not such a meeting is permitted by the Company’s Certificate of Incorporation or Bylaws, including a “town hall meeting”; 

(x)    deposit any Common Stock in any voting trust or subject any Common Stock to any arrangement or
agreement with respect to the voting of any Common Stock (other than any such voting trust, arrangement or agreement solely among the Investors or any Affiliates thereof that is otherwise in accordance with this Agreement); 

(xi)    seek, or encourage any person, to submit nominations in furtherance of a “contested
solicitation” for the election or removal of directors with respect to the Company or seek, encourage, or take any other action with respect to the election or removal of any directors; 

(xii)    form, join, or in any other way participate in any “group” (within the meaning of
Section 13(d)(3) of the Exchange Act) with respect to the Common Stock; provided, however, that nothing herein shall limit the ability of an Affiliate of the Investor Group to join the “group” following the execution of
this Agreement, so long as any such Affiliate agrees to be bound in writing by the terms and conditions of this Agreement and, if required under the Exchange Act, an Investor files a Schedule 13D within two business days disclosing that such
Investor has formed a group with such Affiliate; 

  
 6 

 (xiii)    demand a copy of the Company’s list of
stockholders or its other books and records or make any request under Section 220 of the Delaware General Corporation Law; 

(xiv)    commence, encourage, or support any derivative action in the name of the Company, or any class
action against the Company or any of its officers or directors with the intent of circumventing this Section 3; provided, however, that the foregoing shall not prevent any Investor from (A) bringing
litigation to enforce the provisions of this Agreement, (B) making counterclaims with respect to any proceeding initiated by, or on behalf of, the Company against an Investor, or (C) responding to or complying with a validly issued legal
process that neither the Investor Group nor any of their Affiliates initiated, encouraged or facilitated; or 

(xv)    make any request or submit any proposal to amend or waive the terms of this
Section 3 other than through non-public communications with the Company that would not be reasonably determined to trigger public disclosure obligations for any Party. 

(b)    Notwithstanding the foregoing, nothing in this Section 3 shall prohibit or
restrict the Investor Group from: (A) communicating privately with the Board or any officer or director of the Company regarding any matter so long as such communications are not intended to, and would not reasonably be expected to, require any
public disclosure of such communications, (B) taking any action necessary to comply with any law, rule or regulation or any action required by any governmental or regulatory authority or stock exchange that has, or may have, jurisdiction over
the Investor Group or any of their respective Affiliates or Associates, provided that a breach by the Investor Group of this Agreement is not the cause of the applicable requirement, or (C) privately communicating to any of their
potential investors or investors factual information regarding the Company, provided such communications are based on publicly available information. For the avoidance of doubt, subject to applicable law, the Investor Group shall not be prohibited
from communicating privately with stockholders of the Company and others in a manner that does not otherwise violate this Section 3 or Section 6. 

(c)    The provisions of this Section 3 shall not limit in any respect the
actions of any director of the Company in his or her capacity as such, recognizing that such actions are subject to such director’s fiduciary duties to the Company and its stockholders (it being understood and agreed that neither the Investor
Group nor any of its Affiliates shall seek to do indirectly through the New Directors anything that would be prohibited if done by Investor or its Affiliates). The provisions of this Section 3 shall also not prevent the
Investor Group from freely voting its shares of Common Stock (except as otherwise provided in Section 2 hereto) or taking any actions as specifically contemplated in Section 1. 

  
 7 

 (d)    For purposes of this Agreement: 

(i)    “Affiliate” shall mean any “Affiliate” as defined in Rule 12b-2 promulgated by the SEC under the Exchange Act; 

(ii)    “Associate” shall mean any “Associate” as defined in Rule 12b-2 promulgated by the SEC under the Exchange Act; 

(iii)    “beneficial owner” and “beneficial ownership” shall have the
same meanings as set forth in Rule 13d-3 promulgated by the SEC under the Exchange Act; 

(iv)    “person” or “persons” shall mean any individual, corporation
(including not-for-profit), general or limited partnership, limited liability company, joint venture, estate, trust, association, organization, or other entity of any
kind or nature; and 
 (v)    “Standstill Period” shall mean the period commencing on
the date of this Agreement and ending 30 calendar days prior to the expiration of the advance-notice period for the submission by stockholders of director nominations for consideration at the Company’s 2019 annual meeting of stockholders (as
set forth in the advance-notice provisions of the Company’s Bylaws in effect on the date hereof). 

(e)    During the Standstill Period, until such time as the Investors file an initial Schedule 13D, upon
reasonable written notice from the Company pursuant to Section 10, the Investor Group will promptly provide the Company with information regarding the amount of the securities of the Company (a) beneficially owned by
each Investor, (b) with respect to which the Investor Group has (i) any direct or indirect rights or options to acquire or (ii) any economic exposure through any derivative securities or contracts or instruments in any way related to
the price of such securities, or (c) with respect to which the Investor Group has hedged its position by selling covered call options. This ownership information provided to the Company will be kept strictly confidential unless required to be
disclosed pursuant to applicable law. 
 4.    Representations and Warranties of the Company. The Company
represents and warrants to the Investors that (a) the Company has the corporate power and authority to execute the Agreement and to bind it thereto, (b) this Agreement has been duly and validly authorized, executed and delivered by the
Company, constitutes a valid and binding obligation and agreement of the Company, and is enforceable against the Company in accordance with its terms, except as enforcement thereof may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance or similar laws generally affecting the rights of creditors and subject to general equity principles, and (c) the execution, delivery and performance of this Agreement by the Company does not and will not
violate or conflict with (i) any law, rule, regulation, order, judgment or decree applicable to it, or (ii) result in any breach or violation of or constitute a default (or an event that with notice or lapse of time or both could become a
default) under or pursuant to, or result in the loss of a material benefit under, or give 

  
 8 

 
any right of termination, amendment, acceleration or cancellation of, any organizational document, or any material agreement, contract, commitment, understanding or arrangement to which the
Company is a party or by which it is bound. 
 5.    Representations and Warranties of the Investors. Each
Investor, on behalf of itself, jointly and severally represents and warrants to the Company that (a) as of the date hereof, such Investor beneficially owns, directly or indirectly, only the number of shares of Common Stock as described opposite
its name on Exhibit A or Exhibit B (as applicable), and Exhibit A or Exhibit B (as applicable) includes all Affiliates of any such Investor that own any securities of the Company beneficially or of record and reflects all
shares of Common Stock in which such Investor has any interest or right to acquire, whether through derivative securities, voting agreements or otherwise, (b) this Agreement has been duly and validly authorized, executed and delivered by such
Investor, and constitutes a valid and binding obligation and agreement of such Investor, enforceable against such Investor in accordance with its terms, except as enforcement thereof may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, fraudulent conveyance or similar laws generally affecting the rights of creditors and subject to general equity principles, (c) such Investor has the authority to execute the Agreement on behalf of itself and the
applicable Investor associated with that signatory’s name, and to bind such Investor to the terms hereof, (d) such Investor shall use its commercially reasonable efforts to cause its respective Related Persons to comply with the terms of
this Agreement, and (e) the execution, delivery, and performance of this Agreement by such Investor does not and will not violate or conflict with (i) any law, rule, regulation, order, judgment or decree applicable to it, or
(ii) result in any breach or violation of or constitute a default (or an event that with notice or lapse of time or both could become a default) under or pursuant to, or result in the loss of a material benefit under, or give any right of
termination, amendment, acceleration or cancellation of, any organizational document, agreement, contract, commitment, understanding or arrangement to which such Investor is a party or by which it is bound. 

6.    Mutual Non-Disparagement. 

(a)    Each Investor agrees that, until the earlier of (i) the expiration of the Standstill Period and
(ii) any material breach of this Agreement by the Company (provided that the Company shall have three business days following written notice from the Investor Group of material breach to remedy such material breach if capable of remedy),
neither it nor any of its Affiliates will, and it will cause each of its Affiliates not to, directly or indirectly, in any capacity or manner, make, express, transmit, speak, write, verbalize or otherwise communicate in any way (or cause, further,
assist, solicit, encourage, support or participate in any of the foregoing), any remark, comment, message, information, declaration, communication or other statement of any kind, whether verbal, in writing, electronically transferred or otherwise,
that might reasonably be construed to be derogatory toward the Company or any of its directors, officers, Affiliates, subsidiaries, employees, agents or representatives (collectively, the “Company Representatives”), or that reveals,
discloses, incorporates, is based upon, discusses, includes or otherwise involves any confidential or proprietary information of the Company or its subsidiaries or Affiliates; provided, however, that the foregoing shall not prevent the
Investor Group from privately communicating to the Company, any directors or executive officers of the Company, any of the Investor Group’s potential investors or investors, or any stockholder of the Company, factual information based on
publicly available information. 

  
 9 

 (b)    The Company hereby agrees that, until the earlier of
(i) the expiration of the Standstill Period and (ii) any material breach of this Agreement by an Investor (provided that the Investor Group shall have three business days following written notice from the Company of material breach
to remedy such material breach if capable of remedy), neither it nor any of its Affiliates will, and it will cause each of its Affiliates not to, directly or indirectly, in any capacity or manner, make, express, transmit, speak, write, verbalize or
otherwise communicate in any way (or cause, further, assist, solicit, encourage, support or participate in any of the foregoing), any remark, comment, message, information, declaration, communication or other statement of any kind, whether verbal,
in writing, electronically transferred or otherwise, that might reasonably be construed to be derogatory toward any Investor or its Related Persons, or that reveals, discloses, incorporates, is based upon, discusses, includes or otherwise involves
any confidential or proprietary information of any Investor or its subsidiaries or Affiliates; provided, however, that the foregoing shall not prevent the Company from privately communicating to an Investor factual information based on
publicly available information. 
 (c)    Notwithstanding the foregoing, nothing in this
Section 6 or elsewhere in this Agreement shall prohibit any Party from making any statement or disclosure required under the federal securities laws or other applicable laws; provided, that to the extent permitted
and practicable, such Party must provide written notice to the other Parties at least two business days prior to making any such statement or disclosure required under the federal securities laws or other applicable laws that would otherwise be
prohibited the provisions of this Section 6, and reasonably consider any comments of such other Parties. 

(d)    The limitations set forth in Section 6(a) and 6(b) shall not
prevent any Party from responding to any public statement made by the other Party of the nature described in Section 6(a) and 6(b) if such statement by the other Party was made in breach of this Agreement. 

7.    Public Announcements. Promptly following the execution of this Agreement, the Company and the Investor Group
shall issue a mutually agreeable press release (the “Press Release”) announcing this Agreement, substantially in the form attached hereto as Exhibit C hereto. Prior to the issuance of the Press Release, neither the Company
nor any Investor shall issue any press release or make any public announcement regarding this Agreement or take any action that would require public disclosure thereof without the prior written consent of the other Party. No Party or any of its
Affiliates shall make any public statement (including in any filing required under the Exchange Act) concerning the subject matter of this Agreement inconsistent with the Press Release. 

8.    SEC Filings. 

(a)    No later than two business days following the execution of this Agreement, the Company shall file a
Current Report on Form 8-K with the SEC reporting entry into this Agreement and appending or incorporating by reference this Agreement as an exhibit thereto. 

  
 10 

 (b)    No later than two business days following the
execution of this Agreement, the Investor Group shall, if required, file with the SEC a Schedule 13D with respect to the Company, reporting the entry into this Agreement and appending or incorporating by reference this Agreement as an exhibit
thereto. Except for amendments to the Schedule 13D, if any, filed by the Investor Group made solely to report material changes to the information contained therein, including a change in the level of ownership of Common Stock, none of the Investors
shall, during the Standstill Period, (i) issue a press release in connection with this Agreement or the actions contemplated hereby or (ii) otherwise make any public statement with respect to this Agreement or the actions contemplated
hereby, in each case without the prior written consent of the Company, with such consent to be approved by a majority vote of the Board, unless required by applicable law. 

9.    Specific Performance. The Investor Group, on the one hand, and the Company, on the other hand, acknowledges
and agrees that irreparable injury to the other Party hereto would occur in the event any of the provisions of this Agreement are not performed in accordance with their specific terms or are otherwise breached and that such injury would not be
adequately compensable in monetary damages. It is accordingly agreed that any Investor, on the one hand, and the Company, on the other hand (the “Moving Party”), shall each be entitled to specific enforcement of, and injunctive or
other equitable relief as a remedy for any such breach or to prevent any violation or threatened violation of, the terms hereof, and the other Party hereto will not take action, directly or indirectly, in opposition to the Moving Party seeking such
relief on the grounds that any other remedy or relief is available at law or in equity. The Parties further agree to waive any requirement for the security or posting of any bond in connection with any such relief. Such remedies shall not be deemed
to be the exclusive remedies for a breach of this Agreement but shall be in addition to all other remedies available at law or equity. 

10.    Notice. Any notices, consents, determinations, waivers, or other communications required or permitted to be
given under the terms of this Agreement must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by email or facsimile (provided confirmation of
transmission is mechanically or electronically generated and kept on file by the sending Party); or (iii) one business day after deposit with a nationally recognized overnight delivery service, in each case properly addressed to the Party to
receive the same. The addresses, facsimile numbers, and email addresses for such communications shall be: 
 If to the Company: 

SPS Commerce, Inc. 
 333 South 7th Street, Suite 1000 
 Minneapolis, MN 55402 

Attention:        Chief Financial Officer 

Fax No.:          (651) 583-5516 

Email:              knelson@spscommerce.com 

  
 11 

 With copies (which shall not constitute notice) to: 

Faegre Baker Daniels LLP 
 2200
Wells Fargo Center 
 90 South 7th Street 

Minneapolis, MN 55402 

Attention:        Amy Seidel 

    Mike Stanchfield 

Fax No.:          (612) 766-1600 

E-mail:            amy.seidel@faegrebd.com

     mike.stanchfield@faegrebd.com 

If to the Investor Group: 

Legion Partners Holdings, LLC 

9401 Wilshire Blvd, Suite 705 

Beverly Hills, CA 90212 

Attention:        Chris Kiper, Managing Director 

Fax No.:          (310) 729-8588 

Email:             CKiper@legionpartners.com 

and 
 Ancora Advisors, LLC 

6060 Parkland Boulevard, Suite 200 

Cleveland, OH 44124 

Attention:        Jim Chadwick 

Email:              jchadwick@ancora.net 

With copies (which shall not constitute notice) to: 

Olshan Frome Wolosky LLP 
 1325
Avenue of the Americas 
 New York, NY 10019 

Attention:        Steve Wolosky 

    Elizabeth Gonzalez-Sussman 

Fax No.:          (212) 451-2222 

E-mail:            swolosky@olshanlaw.com

       egonzalez@olshanlaw.com 

11.    Governing Law. This Agreement shall be governed in all respects, including validity, interpretation, and
effect, by, and construed in accordance with, the laws of the State of Delaware without giving effect to the choice of law or conflict of law principles thereof or of any other jurisdiction. 

  
 12 

 12.    Jurisdiction. Each of the Parties hereto irrevocably agrees
that any legal action or proceeding with respect to this Agreement and the rights and obligations arising hereunder, or for recognition and enforcement of any judgment in respect of this Agreement and the rights and obligations arising hereunder
brought by the other Parties hereto or their respective successors or assigns, shall be brought and determined exclusively in the Delaware Court of Chancery and any state appellate court therefrom within the State of Delaware (or, if the Delaware
Court of Chancery declines to accept jurisdiction over a particular matter, any federal court within the State of Delaware). Each of the Parties hereto hereby irrevocably submits with regard to any such action or proceeding for itself and in respect
of its property, generally and unconditionally, to the personal jurisdiction of the aforesaid courts and agrees that it will not bring any action relating to this Agreement in any court other than the aforesaid courts. Each of the Parties hereto
hereby irrevocably waives, and agrees not to assert in any action or proceeding with respect to this Agreement, (i) any claim that it is not personally subject to the jurisdiction of the abovenamed courts for any reason, (ii) any claim
that it or its property is exempt or immune from jurisdiction of any such court or from any legal process commenced in such courts (whether through service of notice, attachment prior to judgment, attachment in aid of execution of judgment,
execution of judgment or otherwise) and (iii) to the fullest extent permitted by applicable legal requirements, any claim that (A) the suit, action or proceeding in such court is brought in an inconvenient forum, (B) the venue of such
suit, action or proceeding is improper or (C) this Agreement, or the subject matter hereof, may not be enforced in or by such courts. 

13.    Waiver of Jury Trial. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY THAT MAY ARISE UNDER THIS
AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH SUCH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LEGAL ACTION ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH PARTY TO THIS AGREEMENT CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT SEEK TO
ENFORCE THE FOREGOING WAIVER IN THE EVENT OF A LEGAL ACTION, (B) SUCH PARTY HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (C) SUCH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (D) SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT
BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 13. 

14.    Representative. Each Investor hereby irrevocably appoints Legion Partners as its attorney-in-fact and representative (the “Representative”), in such Investor’s place and stead, to do any and all things and to execute any and all
documents and give and receive any and all notices or instructions in connection with this Agreement and the transactions contemplated hereby. The Company shall be entitled to rely upon, as being binding on each Investor, any action taken by the
Representative or any document, notice, instruction or other writing given or executed by the Representative. 

15.    Entire Agreement. This Agreement constitutes the full and entire understanding and agreement among the
Parties with regard to the subject matter hereof, and supersedes all 

  
 13 

 
prior and contemporaneous agreements, understandings and representations, whether oral or written, of the Parties with respect to the subject matter hereof. There are no restrictions, agreements,
promises, representations, warranties, covenants or undertakings, oral or written, between the Parties other than those expressly set forth herein. 

16.    Headings. The section headings contained in this Agreement are for reference purposes only and shall not
effect in any way the meaning or interpretation of this Agreement. 
 17.    Waiver. No failure on the part of
any Party to exercise, and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of such right, power or remedy by such Party preclude any other or further exercise
thereof or the exercise of any other right, power or remedy. 
 18.    Remedies. All remedies hereunder are
cumulative and are not exclusive of any other remedies provided by law or equity. 
 19.    Construction. When a
reference is made in this Agreement to a Section, such reference shall be to a Section of this Agreement, unless otherwise indicated. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the
meaning or interpretation of this Agreement. Whenever the words “include,” “includes” and “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation.” The
words “hereof, “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. The word “will” shall
be construed to have the same meaning as the word “shall.” The words “dates hereof” will refer to the date of this Agreement. The word “or” is not exclusive. The definitions contained in this Agreement are applicable to
the singular as well as the plural forms of such terms. Any agreement, instrument, law, rule or statute defined or referred to herein means, unless otherwise indicated, such agreement, instrument, law, rule or statute as from time to time amended,
modified or supplemented. 
 20.    Severability. If any provision of this Agreement is held invalid or
unenforceable by any court of competent jurisdiction, the other provisions of this Agreement shall remain in full force and effect. Any provision of this Agreement held invalid or unenforceable only in part or degree shall remain in full force and
effect to the extent not held invalid or unenforceable. The Parties further agree to replace such invalid or unenforceable provision of this Agreement with a valid and enforceable provision that will achieve, to the extent possible, the purposes of
such invalid or unenforceable provision. 
 21.    Amendment. This Agreement may be modified, amended or
otherwise changed only in a writing signed by the Company, on the one hand, and the Representative (on behalf of itself and the other Investors), on the other hand. 

22.    Termination. Upon the expiration of the Standstill Period in accordance with
Section 3, this Agreement shall immediately and automatically terminate in its entirety and no Party hereunder shall have any further rights or obligations under this Agreement; provided, however, no Party shall be
released from any breach of this Agreement that occurred prior to the termination of this Agreement. 

  
 14 

 23.    Successors and Assigns. The terms and conditions of this
Agreement shall be binding upon and be enforceable by the Parties hereto and the respective successors, heirs, executors, legal representatives and permitted assigns of the Parties, and inure to the benefit of any successor, heir, executor, legal
representative or permitted assign of any of the Parties; provided, however, that no Party may assign this Agreement or any rights or obligations hereunder without, with respect to any Investor, the express prior written consent of the
Company (with such consent specifically authorized in a written resolution adopted by a majority vote of the Board), and with respect to the Company, the prior written consent of the Representative. 

24.    No Third-Party Beneficiaries. The representations, warranties and agreements of the Parties contained herein
are intended solely for the benefit of the Party to whom such representations, warranties or agreements are made, and shall confer no rights, benefits, remedies, obligations, or liabilities hereunder, whether legal or equitable, in any other person
or entity, and no other person or entity shall be entitled to rely thereon. 
 25.    Counterparts; Facsimile / PDF
Signatures. This Agreement and any amendments hereto may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. This Agreement
shall become effective when each Party hereto shall have received a counterpart hereof signed by the other Parties hereto. In the event that any signature to this Agreement or any amendment hereto is delivered by facsimile transmission or by email
delivery of a portable document format (.pdf or similar format) data file, such signature shall create a valid and binding obligation of the Party executing (or on whose behalf such signature is executed) with the same force and effect as if such
facsimile or “.pdf” signature page were an original thereof. 
 26.    Expenses. Each of the Company
and the Investor Group shall be responsible for its own fees and expenses incurred in connection with the negotiation, execution, and effectuation of this Agreement and the transactions contemplated hereby, including attorneys’ fees incurred in
connection with the negotiation and execution of this Agreement and all other activities related to the foregoing; provided, however, that the Company shall reimburse the Investor Group, within 30 days of the date that the Company
receives reasonably satisfactory supporting documentation, for its reasonable documented out-of-pocket third-party expenses, including legal fees and expenses, as
actually incurred in connection with the negotiation and execution of this Agreement in an amount not to exceed $50,000. 
 [Signature page
follows] 

  
 15 

 IN WITNESS WHEREOF the Parties have duly executed and delivered this Agreement as of the date
first written above. 
  

			
	SPS COMMERCE, INC.
		
	By:	 	 /s/ Archie Black

	Name:	 	Archie Black
	Title:	 	President & CEO

  
 Signature Page to
Cooperation Agreement 

 
					
	Legion Partners, L.P. I
		
	By:	 	Legion Partners Asset Management, LLC
	Investment Advisor
		
	By:	 	 /s/ Christopher S. Kiper

		 	  Name:	  	Christopher S. Kiper
		 	  Title:	  	Managing Director
	
	Legion Partners, L.P. II
		
	By:	 	Legion Partners Asset Management, LLC
	Investment Advisor
		
	By:	 	 /s/ Christopher S. Kiper

		 	  Name:	  	Christopher S. Kiper
		 	  Title:	  	Managing Director
	
	Legion Partners, LLC
		
	By:	 	Legion Partners Holdings, LLC
	Managing Member
		
	By:	 	 /s/ Christopher S. Kiper

		 	  Name:	  	Christopher S. Kiper
		 	  Title:	  	Managing Member
	
	Legion Partners Asset Management, LLC
		
	By:	 	 /s/ Christopher S. Kiper

		 	  Name:	  	Christopher S. Kiper
		 	  Title:	  	Managing Director
	
	Legion Partners Holdings, LLC
		
	By:	 	 /s/ Christopher S. Kiper

		 	  Name:	  	Christopher S. Kiper
		 	  Title:	  	Managing Member
	
	 /s/ Christopher S. Kiper

	  Christopher S. Kiper
	
	 /s/ Raymond White

	  Raymond White

  
 Signature Page to
Cooperation Agreement 

 
					
	 Ancora Merlin Institutional LP

By: Ancora Advisors, LLC, its General Partner

		
	By:	 	 /s/ Frederick DiSanto

		 	Name:	  	Frederick DiSanto
		 	Title:	  	Chairman and Chief Executive Officer
	
	 Ancora Merlin LP
  

By: Ancora Advisors, LLC, its General Partner

		
	By:	 	 /s/ Frederick DiSanto

		 	Name:	  	Frederick DiSanto
		 	Title:	  	Chairman and Chief Executive Officer
	
	 Ancora Catalyst Institutional LP
  

By: Ancora Advisors, LLC, its General Partner

		
	By:	 	 /s/ Frederick DiSanto

		 	Name:	  	Frederick DiSanto
		 	Title:	  	Chairman and Chief Executive Officer
	
	 Ancora Catalyst LP
  

By: Ancora Advisors, LLC, its General Partner

		
	By:	 	 /s/ Frederick DiSanto

		 	Name:	  	Frederick DiSanto
		 	Title:	  	Chairman and Chief Executive Officer
	
	Ancora Advisors, LLC
		
	 By:
	 	 /s/ Frederick DiSanto

		 	Name:	  	Frederick DiSanto
		 	Title:	  	Chairman and Chief Executive Officer
	
	 /s/ Frederick DiSanto

	Frederick DiSanto

  
 Signature Page to
Cooperation Agreement 

 Exhibit A 
  

			
	
Name of Person or Entity
	  	 Number of Shares

	Legion Partners, L.P. I (“Legion Partners I”)	  	 Legion Partners I beneficially owns directly 286,877 shares of Common Stock.

 
 Legion Partners I has sold short in over the counter market American-style put options
referencing an aggregate of 1,800 shares of Common Stock, which have an exercise price of $60.00 and will expire on March 16, 2018.

		
	Legion Partners, L.P. II (“Legion Partners II”)	  	 Legion Partners II beneficially owns directly 12,667 shares of Common Stock.

 
 Legion Partners II has sold short in over the counter market American-style put options
referencing an aggregate of 100 shares, which have an exercise price of $60.00 and will expire on March 16, 2018.

		
	Legion Partners, LLC	  	As the general partner of each of Legion Partners I and Legion Partners II, Legion Partners, LLC may be deemed to beneficially own the 286,877 shares of Common Stock beneficially owned directly by Legion Partners I and 12,667
shares of Common Stock beneficially owned directly by Legion Partners II.
		
	Legion Partners Asset Management, LLC (“Legion Partners Asset Management”)	  	As the investment advisor of each of Legion Partners I and Legion Partners II, Legion Partners Asset Management may be deemed to beneficially own the 286,877 shares of Common Stock beneficially owned directly by Legion Partners I
and 12,667 shares of Common Stock beneficially owned directly by Legion Partners II.
		
	Legion Partners Holdings, LLC (“Legion Partners Holdings”)	  	Legion Partners Holdings beneficially owns directly 100 shares of Common Stock. As the sole member of Legion Partners Asset Management and sole member of Legion Partners LLC, Legion Partners Holdings may also be deemed to
beneficially own the 286,877 shares of Common Stock beneficially owned directly by Legion Partners I and 12,667 shares of Common Stock beneficially owned directly by Legion Partners II.
		
	Christopher S. Kiper	  	As a managing director of Legion Partners Asset Management and managing member of Legion Partners Holdings, Mr. Kiper may be deemed to beneficially own the 286,877 shares of Common Stock beneficially owned directly by Legion
Partners I, 12,667 shares of Common Stock beneficially owned directly by Legion Partners II and 100 shares of Common Stock beneficially owned directly by Legion Partners Holdings.
		
	Raymond White	  	As a managing director of Legion Partners Asset Management and managing member of Legion Partners Holdings, Mr. White may be deemed to beneficially own the 286,877 shares of Common Stock beneficially owned directly by Legion
Partners I, 12,667 shares of Common Stock beneficially owned directly by Legion Partners II and 100 shares of Common Stock beneficially owned directly by Legion Partners Holdings.

 Exhibit B 
  

			
	
Name of Person or Entity
	  	 Number of Shares

	Ancora Merlin Institutional LP (“Ancora Merlin Institutional”)	  	Ancora Merlin Institutional beneficially owns directly 94,272 shares of Common Stock.
		
	Ancora Merlin LP (“Ancora Merlin”)	  	Ancora Merlin beneficially owns directly 9,513 shares of Common Stock.
		
	Ancora Catalyst Institutional LP (“Ancora Catalyst Institutional”)	  	Ancora Catalyst Institutional beneficially owns directly 90,551 shares of Common Stock.
		
	Ancora Catalyst LP (“Ancora Catalyst”)	  	Ancora Catalyst beneficially owns directly 5,361 shares of Common Stock.
		
	Ancora Advisors, LLC (“Ancora Advisors”)	  	As the investment advisor to each of Ancora Merlin Institutional, Ancora Merlin, Ancora Catalyst Institutional and Ancora Catalyst, Ancora Advisors may be deemed to beneficially own the 94,272 shares of Common Stock beneficially
owned directly by Ancora Merlin Institutional, 9,513 shares of Common Stock beneficially owned directly by Ancora Merlin, 90,551 shares of Common Stock beneficially owned directly by Ancora Catalyst Institutional and 5,361 shares of Common Stock
beneficially owned directly by Ancora Catalyst.
		
	Frederick DiSanto	  	As the Chairman and Chief Executive Officer of Ancora Advisors, Mr. DiSanto may be deemed to beneficially own the 94,272 shares of Common Stock beneficially owned directly by Ancora Merlin Institutional, 9,513 shares of Common
Stock beneficially owned directly by Ancora Merlin, 90,551 shares of Common Stock beneficially owned directly by Ancora Catalyst Institutional and 5,361 shares of Common Stock beneficially owned directly by Ancora Catalyst.

 Exhibit C 

Contact: 
 Investor Relations 

The Blueshirt Group 
 Irmina Blaszczyk 

Lisa Laukkanen 
 SPSC@blueshirtgroup.com 

415-217-4962 

SPS Commerce Appoints Three New Independent Directors to the Board 

MINNEAPOLIS, March 16, 2018 – SPS Commerce, Inc. (NASDAQ: SPSC), a leader in retail cloud services, announced today that its Board of Directors
appointed Melvin Keating, Michael McConnell and Marty Reaume as independent directors to the Company’s Board of Directors, effective immediately. 

James Ramsey, Chair of the Governance and Nominating Committee, said, “We welcome Mel, Mike and Marty to the Company’s Board of Directors. They
bring diverse backgrounds and extensive operating, financial and leadership experience that will provide valuable insights into our business priorities. We look forward to working together as SPS continues its growth path.” 

In connection with these actions, the Company entered into an agreement with Legion Partners Holdings, LLC, Ancora Advisors, LLC and certain of their
affiliates. Pursuant to the agreement, the Company agreed to nominate Messrs. Keating and McConnell, who were nominated by Legion Partners. In addition, one board member will not stand for re-election at the
2018 annual meeting of stockholders so that immediately following the annual meeting the Board will comprise 9 directors. Pursuant to the agreement, Legion Partners and Ancora Advisors have agreed, among other things, to vote their shares in support
of the director nominees recommended by the Board at the Company’s 2018 annual meeting of stockholders. The agreement between SPS Commerce and Legion Partners will be included as an exhibit to the Company’s Current Report on Form 8-K to be filed with the Securities and Exchange Commission. 

  

333 South Seventh Street, Suite 1000  |  Minneapolis, MN 55402  |  P: 
612-435-9400  F: 612-435-9401  |  www.spscommerce.com 

 Christopher Kiper, Managing Director of Legion Partners, said, “Our investment in SPS Commerce reflects our
confidence in the company as a leader in cloud-based supply chain management solutions. I am confident the skillset and expertise of these individuals will further our common goal of enhancing value for SPS shareholders.” 

About Melvin Keating 
 Melvin L. Keating, has served in
multiple executive positions over his extensive career. Currently, he is a consultant, providing investment advice and other services to public companies and private equity firms. He serves as a director of Harte Hanks, Inc., MagnaChip Semiconductor
Corporation, and Agilysys Inc. Previously, Mr. Keating was CEO of Alliance Semiconductor Corporation, a strategy consultant for Warburg Pincus Equity Partners and CEO of Sunbelt Management. 

About Michael McConnell 
 Michael J. McConnell has
extensive operating and financial experience. Currently, he is a private investor and has served on numerous public and private company boards. He serves as a director of Adacel Technologies. Previously, Mr. McConnell was Interim CEO of Spark
Networks, CEO of Collectors Universe, and Managing Director of Shamrock Capital Advisors, the alternative investment vehicle of the Disney family. 

About Marty Réaume 
 Marty M. Réaume is a
seasoned HR executive. Currently, she is the Chief People Officer of Twilio Inc. Ms. Reaume previously served as Chief People Officer of Fitbit, Inc. and NetSuite Inc. 

About SPS Commerce 
 SPS Commerce perfects the power of trading
partner relationships with the industry’s most broadly adopted, retail cloud services platform. As a leader in cloud-based supply chain management solutions, we provide proven integrations and comprehensive retail performance analytics to
thousands of customers worldwide. SPS Commerce has achieved 68 consecutive quarters of revenue growth and is headquartered in Minneapolis. For additional information, please contact SPS Commerce at 866-245-8100 or visit www.spscommerce.com. 

  

333 South Seventh Street, Suite 1000  |  Minneapolis, MN 55402  |  P: 
612-435-9400  F: 612-435-9401  |  www.spscommerce.com 

 SPS COMMERCE, SPS, SPS logo, RETAIL UNIVERSE, 1=INFINITY logo, AS THE NETWORK GROWS, SO DOES YOUR OPPORTUNITY,
INFINITE RETAIL POWER, RETAIL UNIVERSE are marks of SPS Commerce, Inc. and Registered in the U.S. Patent and Trademark Office. RSX, IN:FLUENCE, and others are further marks of SPS Commerce, Inc. These marks may be registered or otherwise protected
in other countries. 
 SPS-F 

  

333 South Seventh Street, Suite 1000  |  Minneapolis, MN 55402  |  P: 
612-435-9400  F: 612-435-9401  |  www.spscommerce.com

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