Document:

Exhibit 10.1

 

TILE
SHOP HOLDINGS, INC.

 

2012
equity award plan

 

1.           Purpose
and Effective Date.

 

(a)          Purpose.
The Tile Shop Holdings, Inc. 2012 Equity Award Plan (the “Plan”) has several complementary purposes: (i) to promote
the growth and success of Tile Shop Holdings, Inc. (the “Company”) by linking a significant portion of Participant
compensation to the increase in value of the Company’s common stock, par value $0.0001 per share (the “Common Stock”);
(ii) to attract and retain top quality, experienced executive officers and employees by offering a competitive incentive compensation
program; (iii) to reward innovation and outstanding performance as important contributing factors to the Company’s growth
and progress; (iv) to align the interests of executive officers, employees, Directors and Consultants with those of the Company’s
shareholders by reinforcing the relationship between Participant rewards and shareholder gains obtained through the achievement
by Plan Participants of short-term objectives and long-term goals; and (iv) to encourage executive officers, employees, Directors
and Consultants to obtain and maintain an equity interest in the Company.

 

(b)          Effective
Date. The Plan will become effective, and Awards may be granted under the Plan, on and after the Effective Date; provided that
any Awards granted prior to the date the Plan is approved by the Company’s shareholders shall be contingent on such approval.

 

2.       
   Definitions. Capitalized terms used but not otherwise defined in the Plan shall have the following
meanings:

 

(a)          “10%
Stockholder” means an Participant who, as of the date that an Incentive Stock Option is granted to such individual, owns
more than ten percent (10%) of the total combined voting power of all classes of capital stock then issued by the Company or a
Subsidiary.

 

(b)          “Affiliate”
and “Associate” have the respective meanings ascribed to such terms in Rule 12b-2 under the Exchange Act. Notwithstanding
the foregoing, for purposes of determining those individuals to whom an Option may be granted, the term “Affiliate”
means any entity that, directly or through one or more intermediaries, is controlled by, controls, or is under common control with
the Company within the meaning of Code Sections 414(b) or (c); provided that, in applying such provisions, the phrase “at
least 20 percent” shall be used in place of “at least 80 percent” each place it appears therein.

 

(c)          “Award”
means a grant of Options or Restricted Stock.

 

(d)          “Board”
means the Board of Directors of the Company.

 

(e)          “Cause”
means, except as otherwise determined by the Committee and set forth in an Award agreement, such act or omission by a Participant
as is determined by the Committee to constitute cause for termination, including but not limited to any of the following: (i) a
material violation of any Company policy, including but not limited to any policy contained in the Company’s Code of Business
Conduct and Ethics; (ii) embezzlement from, or theft of property belonging to, the Company or any Affiliate; (iii) willful failure
to perform, or gross negligence in the performance of, assigned duties; or (iv) other intentional misconduct, whether related to
employment or otherwise, which has, or has the potential to have, a material adverse effect on the business conducted by the Company
or its Affiliates.

  

(f)          “Change
of Control” means (unless otherwise expressly provided in a particular Award, employment, and/or severance agreement) any
of the following:

 

(i)          a
transaction or series of transactions (other than an offering of Common Stock to the general public through a registration statement
filed with the Securities and Exchange Commission) whereby any “person” or related “group” of “persons”
(as such terms are used in Sections 13(d) and 14(d)(2) of the Exchange Act) (other than the Company, any of its Subsidiaries, an
employee benefit plan maintained by the Company or any of its Subsidiaries or a “person” that, prior to such transaction,
directly or indirectly controls, is controlled by, or is under common control with, the Company) directly or indirectly acquires
beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) of securities of the Company possessing more than
50% of the total combined voting power of the Company’s securities outstanding immediately after such acquisition; or

 

    	 

    	 

    

 

(ii)         during
any period of two consecutive years, individuals who, at the beginning of such period, constitute the Board together with any new
director(s) (other than a director designated by a person who shall have entered into an agreement with the Company to effect a
transaction described in Section 2(f)(i) or Section 2(f)(iii)) whose election by the Board or nomination for election by the Company’s
stockholders was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the
beginning of the two-year period or whose election or nomination for election was previously so approved, cease for any reason
to constitute a majority thereof; or

 

(iii)        the
consummation by the Company (whether directly involving the Company or indirectly involving the Company through one or more intermediaries)
of (x) a merger, consolidation, reorganization, or business combination or (y) a sale or other disposition of all or substantially
all of the Company’s assets in any single transaction or series of related transactions, in each case other than a transaction:

 

(A)         that
results in the Company’s voting securities outstanding immediately before the transaction continuing to represent (either
by remaining outstanding or by being converted into voting securities of the Company or the person that, as a result of the transaction,
controls, directly or indirectly, the Company or owns, directly or indirectly, all or substantially all of the Company’s
assets or otherwise succeeds to the business of the Company (the Company or such person, the “Successor Entity”)) directly
or indirectly, at least a majority of the combined voting power of the Successor Entity’s outstanding voting securities immediately
after the transaction, and

 

(B)         after
which no person or group beneficially owns voting securities representing 50% or more of the combined voting power of the Successor
Entity; provided, however, that no person or group shall be treated for purposes of this Section 2(f)(iii)(B) as beneficially
owning 50% or more of combined voting power of the Successor Entity solely as a result of the voting power held in the Company
prior to the consummation of the transaction; or

  

(iv)        the
Company’s shareholders approve a liquidation or dissolution of the Company.

 

Notwithstanding the foregoing, with respect
to an Award that is considered deferred compensation subject to Code Section 409A, the definition of “Change of Control”
shall be amended and interpreted in a manner that allows the definition to satisfy the requirements of a change of control under
Code Section 409A solely for purposes of determining the timing of payment of such Award.

 

The Committee shall have full and final
authority, which shall be exercised in its discretion, to determine conclusively whether a Change in Control of the Company has
occurred pursuant to the above definition, and the date of the occurrence of such Change in Control and any incidental matters
relating thereto.

 

(g)          “Code”
means the Internal Revenue Code of 1986, as amended. Any reference to a specific provision of the Code includes any successor provision
and the regulations promulgated under such provision.

 

(h)          “Committee”
means the Compensation Committee of the Board (or a successor committee with the same or similar authority).

 

(i)          “Consultant”
means a Person or entity rendering services to the Company or an Affiliate other than as an employee of any such entity or a Director.

 

(j)          “Director”
means a member of the Board.

 

(k)          “Disability”
means, except as otherwise determined by the Committee and set forth in an Award agreement: (i) with respect to an Incentive Stock
Option, the meaning given in Code Section 22(e)(3), and (ii) with respect to all other Awards, a physical or mental incapacity
which qualifies an individual to collect a benefit under a long term disability plan maintained by the Company, or such similar
mental or physical condition which the Committee may determine to be a disability, regardless of whether either the individual
or the condition is covered by any such long term disability plan. The Committee shall make the determination of Disability and
may request such evidence of Disability as it reasonably determines.

 

    	- 2 -

    	 

    

 

(l)          “Effective
Date” means the date of the consummation of the transactions contemplated pursuant to that certain Contribution and Merger
Agreement, dated as of June 27, 2012, by and between JWC Acquisition Corp., The Tile Shop, LLC (“The Tile Shop”), ILTS,
LLC, The Tile Shop, Inc., JWTS, Inc., each of the other members of The Tile Shop is a party thereto, Nabron International Inc.,
the Company, Tile Shop Merger Sub, Inc., and Peter Jacullo.

 

(m)          “Exchange
Act” means the Securities Exchange Act of 1934, as amended. Any reference to a specific provision of the Exchange Act includes
any successor provision and the regulations and rules promulgated under such provision.

 

(n)          “Fair
Market Value” means, per Share on a particular date, the last sales price on such date on the NASDAQ Stock Market, as reported
in The Wall Street Journal, or if no sales of Common Stock occur on the date in question, on the last preceding date on which there
was a sale on such market. If the Shares are not listed on the NASDAQ Stock Market, but are traded on a national securities exchange
or in another over-the-counter market, the last sales price (or, if there is no last sales price reported, the average of the closing
bid and asked prices) for the Shares on the particular date, or on the last preceding date on which there was a sale of Shares
on that exchange or market, will be used. If the Shares are neither listed on a national securities exchange nor traded in an over-the-counter
market, the price determined by the Committee, in its discretion, will be used.

 

(o)          “Incentive
Stock Option” means an Option that meets the requirements of Code Section 422.

 

(p)          “Non-Employee
Director” means a Director who is not an employee of the Company or any Subsidiary.

 

(q)          “Nonqualified
Stock Option” means an Option that does not meet the requirements of Code Section 422.

 

(r)          “Option”
means the right to purchase Shares at a stated price for a specified period of time.

 

(s)          “Participant”
means an individual selected by the Committee to receive an Award.

 

(t)          “Performance
Goals” means any goals the Committee establishes that relate to one or more of the following with respect to the Company
or any one or more of its Subsidiaries, Affiliates or other business units: net income; income from continuing operations; stockholder
return; stock price appreciation; earnings per share (including diluted earnings per share); net operating profit (including after-tax);
revenue growth; organic sales growth; return on equity; return on investment; return on invested capital (including after-tax);
earnings before interest, taxes, depreciation and amortization; operating income; operating margin; market share; return on sales;
asset reduction; cost reduction; return on equity; cash flow (including free cash flow); bookings; and new product releases. As
to each Performance Goal, the relevant measurement of performance shall be computed in accordance with generally accepted accounting
principles, if applicable; provided that, the Committee may, at the time of establishing the Performance Goal(s), exclude the effects
of (i) extraordinary, unusual and/or non-recurring items of gain or loss, (ii) gains or losses on the disposition of a business,
(iii) changes in tax regulations or laws, or (iv) the effect of a merger or acquisition. Notwithstanding the foregoing, the calculation
of any Performance Goal established for purposes of an Award shall be made without regard to changes in accounting methods used
by the Company or in accounting standards that may be required by the Financial Accounting Standards Board after a Performance
Goal relative to an Award is established and prior to the time the compensation earned by reason of the achievement of the relevant
Performance Goal is paid to the Participant. In the case of Awards that the Committee determines will not be considered “performance-based
compensation” under Code Section 162(m), the Committee may establish other Performance Goals not listed in the Plan.
Where applicable, the Performance Goals may be expressed, without limitation, in terms of attaining a specified level of the particular
criterion or the attainment of an increase or decrease (expressed as absolute numbers or a percentage) in the particular criterion
or achievement in relation to a peer group or other index. The Performance Goals may include a threshold level of performance below
which no payment will be made (or no vesting will occur), levels of performance at which specified payments will be paid (or specified
vesting will occur), and a maximum level of performance above which no additional payment will be made (or at which full vesting
will occur).

  

    	- 3 -

    	 

    

 

(u)          “Person”
has the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof.

 

(v)         “Restriction
Period” means the length of time established relative to an Award during which (i) the Participant cannot sell, assign, transfer,
pledge or otherwise encumber the Common Stock subject to such Award or during which the Common Stock are subject to vesting or
a right of repurchase in favor of the Company and (ii) at the end of which the Participant obtains an unrestricted right to such
Common Stock.

 

(w)          “Restricted
Stock” means a Share that is subject to a risk of forfeiture or restrictions on transfer, or both a risk of forfeiture and
restrictions on transfer.

 

(x)          “Section 16
Participants” means Participants who are subject to the provisions of Section 16 of the Exchange Act.

 

(y)          “Share”
means a share of Common Stock.

 

(z)          “Subsidiary”
means any corporation or limited liability company (except that is treated as a partnership for U.S. income tax purposes) in an
unbroken chain of entities beginning with the Company if each of the entities (other than the last entity in the chain) owns stock
or equity interests possessing more than fifty percent (50%) of the total combined voting power of all classes of stock or equity
interests in one of the other entities in the chain.

 

3.        
  Administration.

 

(a)          Committee
Administration. The Committee shall administer the Plan. In addition to the authority specifically granted to the Committee
in the Plan, the Committee has full discretionary authority to administer the Plan, including but not limited to the authority
to: (i) interpret the provisions of the Plan; (ii) prescribe, amend and rescind rules and regulations relating to the
Plan; (iii) correct any defect, supply any omission, or reconcile any inconsistency in any Award or agreement covering an
Award in the manner and to the extent it deems desirable to carry the Plan into effect; and (iv) make all other determinations
necessary or advisable for the administration of the Plan. All Committee determinations are final and binding.

 

Notwithstanding the above statement or any
other provision of the Plan, once established, the Committee shall have no discretion to increase the amount of compensation payable
under an Award that is intended to be performance-based compensation under Code Section 162(m), although the Committee may decrease
the amount of compensation a Participant may earn under such an Award. Any action by the Committee to accelerate or otherwise amend
an Award for reasons other than retirement, death, Disability or a termination by the Company without Cause, or in connection with
a Change of Control, shall include application of a commercially reasonable discount to the compensation otherwise payable to reflect
the value of the accelerated payment.

 

(b)          Delegation
to Other Committees or Officers. To the extent applicable law permits, the Board may delegate to another committee of the Board
or the Committee may delegate to one or more officers of the Company, any or all of the authority and responsibility of the Committee;
provided that no such delegation is permitted with respect to Awards made to Section 16 Participants at the time any such
delegated authority or responsibility is exercised. The Board may also delegate to another committee of the Board consisting entirely
of Non-Employee Directors any or all of the authority and responsibility of the Committee with respect to individuals who are Section 16
Participants. In addition, the Board may reserve for itself any and all authority or responsibility previously delegated to any
Committee. If the Board or the Committee has made such a delegation, then all references to the Committee in the Plan include the
Board, such other committee, or one or more officers to the extent of such delegation.

 

    	- 4 -

    	 

    

 

Notwithstanding anything contained herein
to the contrary, only the full Board shall have the authority to administer the Plan with respect to Awards granted to Non-Employee
Directors.

 

(c)          Indemnification.
The Company will indemnify and hold harmless each member of the Board and the Committee, and each officer or member of any other
committee to whom a delegation under Section 3(b) has been made, as to any acts or omissions with respect to the Plan or any
Award to the maximum extent that the law and the Company’s By-Laws permit.

 

4.           Eligibility.
The Committee may designate any of the following as a Participant from time to time, to the extent of the Committee’s
authority: any executive officer, employee, Consultant or Director of the Company or any Subsidiary. The Committee’s granting
of an Award to a Participant will not require the Committee to grant an Award to such individual at any future time. The Committee’s
granting of a particular type of Award to a Participant will not require the Committee to grant any other type of Award to such
individual.

 

5.          Types
of Awards. Subject to the terms of the Plan, the Committee may grant any type of Award to any Participant it selects;
provided, however that only executive officers and employees of the Company or a Subsidiary may receive grants of Incentive Stock
Options. Awards may be granted alone or in addition to, in tandem with, or in substitution for, any other Award (or any other award
granted under another equity compensation plan of the Company or any Affiliate).

 

6.           Shares
Reserved under the Plan.

 

(a)          Plan
Reserve. Subject to adjustment as provided in Section 12, an aggregate of 2,500,000 Shares are reserved for issuance under
the Plan. On January 1 of each year beginning after the Effective Date, an additional number of Shares shall become available for
issuance under the Plan equal to the lesser of: (i) 2,500,000 Shares; (ii) six percent (6%) of the number of Shares issued and
outstanding (on an as-converted basis) as of the immediately preceding December 31; and (iii) another amount determined by the
Board. Subject to Section 6(b) and Section 12(a), all Shares reserved for issuance under the Plan may be issued as Incentive Stock
Options.

  

(b)          Replenishment
of Shares Under the Plan. The number of Shares reserved for issuance under the Plan shall be reduced only by the number of
Shares actually delivered in payment or settlement of Awards. If Shares are forfeited under an Award, or if Shares are issued under
any Award and the Company subsequently reacquires them pursuant to rights reserved upon the issuance of the Shares, or if previously
owned Shares are delivered to the Company in payment of the exercise price or withholding taxes of an Award, then such Shares may
again be used for new Awards under the Plan under Section 6(a), but such Shares may not be issued pursuant to an Incentive Stock
Option.

 

(c)          Limitation
on Number of Shares Subject to Awards. Notwithstanding any provision in the Plan to the contrary, and subject to Section 12(a),
the maximum number of Shares with respect to one or more Awards that may be granted to (or where the value of the Award is based
on the Fair Market Value of the Shares, is with respect to) any one Participant during any calendar year shall be 2,000,000

 

7.        
  Options. Subject to the terms of the Plan, the Committee will determine all terms and conditions of each
Option, including but not limited to:

 

(a)          Whether
the Option is an Incentive Stock Option or a Nonqualified Stock Option;

 

(b)          The
number of Shares subject to the Option;

 

(c)          The
date of grant, which may not be prior to the date of the Committee’s approval of the grant;

 

(d)          The
exercise price, which may not be less than the Fair Market Value of the Shares subject to the Option as determined on the date
of grant; provided that an Incentive Stock Option granted to a 10% Stockholder must have an exercise price at least equal to 110%
of the Fair Market Value of the Shares subject to the Option as determined on the date of grant;

 

    	- 5 -

    	 

    

 

(e)          The
terms and conditions of exercise; provided, however, that, if the aggregate Fair Market Value of the Shares subject to the Option
(as determined on the date of grant of such Option) that becomes exercisable during a calendar year exceeds $100,000, then such
Option shall be treated as a Nonqualified Stock Option to the extent such $100,000 limitation is exceeded; and

 

(f)          The
term of the Option; provided, however, that each Option must terminate no later than ten (10) years after the date of grant
and each Incentive Stock Option granted to a 10% Stockholder must terminate no later than five (5) years after the date of grant.

 

In all other respects, the terms of any Incentive
Stock Option should comply with the provisions of Code Section 422 except to the extent the Committee determines otherwise.
If an Option that is intended to be an Incentive Stock Option fails to meet the requirements thereof, the Option shall automatically
be treated as a Nonqualified Stock Option to the extent of such failure.

 

Subject to the terms and conditions of the
Award, vested Options may be exercised, in whole or in part, by giving notice of exercise to the Company in such manner as the
Company may prescribe. This notice must be accompanied by payment in full of the exercise price in cash or by use of such other
instrument as the Committee may agree to accept.

 

Payment of the exercise price, applicable
withholding taxes due upon exercise of the Option, or both may be made in the form of Common Stock already owned by the Participant,
which Common Stock shall be valued at Fair Market Value on the date the Option is exercised. A Participant who elects to make payment
in Common Stock may not transfer fractional shares or shares of Common Stock with an aggregate Fair Market Value in excess of the
Option exercise price plus applicable withholding taxes. A Participant need not present stock certificates when making payment
in Common Stock, so long as other satisfactory proof of ownership of the Common Stock tendered is provided (e.g., attestation of
ownership of a sufficient number of shares of Common Stock to pay the exercise price). The Committee shall have the discretion
to authorize or accept payment by other forms or methods or to establish a cashless exercise program, all within such limitations
as may be imposed by the Plan or any applicable law.

 

8.           Restricted
Stock Awards. Subject to the terms of the Plan, the Committee will determine all terms and conditions of each Award
of Restricted Stock, including but not limited to:

 

(a)          The
number of Shares and/or units to which such Award relates;

 

(b)          Whether,
as a condition for the Participant to realize all or a portion of the benefit provided under the Award, one or more Performance
Goals must be achieved during such period as the Committee specifies; and

 

(c)          The
Restriction Period with respect to Restricted Stock.

 

During the Restriction Period, the Participant
shall have all of the rights of a shareholder with respect to the Restricted Stock, including the right to vote such Restricted
Stock and, unless the Committee shall otherwise provide, the right to receive dividends paid with respect to such Restricted Stock.

 

Except as otherwise provided in the Plan,
at such time as all restrictions applicable to an Award of Restricted Stock and the Restriction Period expires, ownership of the
Common Stock subject to such restrictions shall be transferred to the Participant free of all restrictions except those that may
be imposed by applicable law.

 

9.       
   Transferability.

 

(a)          Restrictions
on Transfer. Awards are not transferable other than by will or the laws of descent and distribution, unless and to the extent
the Committee allows a Participant to designate in writing a beneficiary to exercise the Award or receive payment under an
Award after the Participant’s death or transfer an Award as provided in Section 9(b).

  

    	- 6 -

    	 

    

 

(b)          Permitted
Transfers. If allowed by the Committee, a Participant may transfer the ownership of some or all of the vested or earned Awards
granted to such Participant, other than Incentive Stock Options to (i) the spouse, children or grandchildren of such Participant
(the “Family Members”), (ii) a trust or trusts established for the exclusive benefit of such Family Members, or (iii)
a partnership in which such Family Members are the only partners. Notwithstanding the foregoing, vested or earned Awards may be
transferred without the Committee’s pre-approval if the transfer is made incident to a divorce as required pursuant to the
terms of a “domestic relations order” as defined in Section 414(p) of the Code; provided that no such transfer will
be allowed with respect to Incentive Stock Options if such transferability is not permitted by Code Section 422. Any such transfer
shall be without consideration and shall be irrevocable. No Award so transferred may be subsequently transferred, except by will
or applicable laws of descent and distribution. The Committee may create additional conditions and requirements applicable to the
transfer of Awards. Following the allowable transfer of a vested Option, such Option shall continue to be subject to the same terms
and conditions as were applicable to the Option immediately prior to the transfer. For purposes of settlement of the Award, delivery
of Stock upon exercise of an Option and the Plan’s Change of Control provisions, however, any reference to a Participant
shall be deemed to refer to the transferee.

 

10.          Termination
and Amendment of Plan; Amendment, Modification or Cancellation of Awards.

 

(a)          Term
of Plan. Unless the Board earlier terminates the Plan pursuant to Section 10(b), the Plan will terminate on the earlier of
the date all Shares reserved for issuance have been issued or the date that is ten (10) years following the Effective Date.

 

(b)          Termination
and Amendment. The Board or the Committee may amend, alter, suspend, discontinue or terminate the Plan at any time, subject
to the following limitations:

 

(i)          the
Board must approve any amendment of the Plan to the extent the Company determines such approval is required by: (A) action
of the Board, (B) applicable corporate law, or (C) any other applicable law;

 

(ii)         shareholders
must approve any amendment of the Plan to the extent the Company determines such approval is required by: (A) Section 16
of the Exchange Act, (B) the Code, (C) the listing requirements of any principal securities exchange or market on which
the Shares are then traded, or (D) any other applicable law; and

 

(iii)        shareholders
must approve any of the following Plan amendments: (A) an amendment to materially increase any number of Shares specified
in Section 6(a), 6(b) or the limits set forth in Section 6(c) (except as permitted by Section 12), (B) an amendment to
expand the group of individuals that may become Participants, or (C) an amendment that would diminish the protections afforded
by Section 10(e) or that would materially change the minimum vesting and performance requirements of an Award as required
in the Plan.

  

(c)          Amendment,
Modification or Cancellation of Awards. Except as provided in Section 10(e) and subject to the requirements of the Plan,
the Committee may modify, amend or cancel any Award; or waive any restrictions or conditions applicable to any Award or the exercise
of the Award; provided, however, that any modification or amendment that materially diminishes the rights of the Participant,
or the cancellation of the Award, shall be effective only if agreed to by the Participant or any other Person(s) as may then have
an interest in the Award, but the Committee need not obtain Participant (or other interested party) consent for the adjustment
or cancellation of an Award pursuant to the provisions of Section 12 or the modification of an Award to the extent deemed
necessary to comply with any applicable law, the listing requirements of any principal securities exchange or market on which the
Shares are then traded, or to preserve favorable accounting or tax treatment of any Award for the Company. Notwithstanding the
foregoing, unless determined otherwise by the Committee, any such amendment shall be made in a manner that will enable an Award
intended to be exempt from Code Section 409A to continue to be so exempt, or to enable an Award intended to comply with Code Section
409A to continue to so comply.

 

(d)          Survival
of Authority and Awards. Notwithstanding the foregoing, the authority of the Board and the Committee under this Section 10
and to otherwise administer the Plan will extend beyond the date of the Plan’s termination. In addition, termination of the
Plan will not affect the rights of Participants with respect to Awards previously granted to them, and all unexpired Awards will
continue in force and effect after termination of the Plan except as they may lapse or be terminated by their own terms and conditions.

 

    	- 7 -

    	 

    

 

(e)          Repricing
and Backdating Prohibited. Notwithstanding anything in the Plan to the contrary, and except for the adjustments provided in
Section 12, neither the Committee nor any other Person may decrease the exercise price for any outstanding Option after the
date of grant nor allow a Participant to surrender an outstanding Option to the Company as consideration for the grant of a new
Option with a lower exercise price. In addition, the Committee may not make a grant of an Option with a grant date that is effective
prior to the date the Committee takes action to approve such Award.

 

(f)          Foreign
Participation. To assure the viability of Awards granted to Participants employed or residing in foreign countries, the Committee
may provide for such special terms as it may consider necessary or appropriate to accommodate differences in local law, tax policy
or custom. Moreover, the Committee may approve such supplements to, or amendments, restatements or alternative versions of, the
Plan as it determines is necessary or appropriate for such purposes. Any such amendment, restatement or alternative versions that
the Committee approves for purposes of using the Plan in a foreign country will not affect the terms of the Plan for any other
country. In addition, all such supplements, amendments, restatements or alternative versions must comply with the provisions of
Section 10(b)(ii).

 

In addition, if an Award is held by a Participant
who is employed or residing in a foreign country and the amount payable or Shares issuable under such Award would be taxable to
the Participant under Code Section 457A in the year such Award is no longer subject to a substantial risk of forfeiture, then the
amount payable or Shares issuable under such Award shall be paid or issued to the Participant as soon as practicable after such
substantial risk of forfeiture lapses (or, for Awards that are not considered nonqualified deferred compensation subject to Code
Section 409A, no later than the end of the short-term deferral period permitted by Code Section 457A) notwithstanding anything
in the Plan or the Award Agreement to contrary.

  

(g)          Code
Section 409A. The provisions of Code Section 409A are incorporated herein by reference to the extent necessary for any Award
that is subject to Code Section 409A to comply therewith.

 

11.          Taxes.

 

(a)          Withholding.
In the event the Company or an Affiliate of the Company is required to withhold any Federal, state or local taxes or other amounts
in respect of any income recognized by a Participant as a result of the grant, vesting, payment or settlement of an Award or disposition
of any Shares acquired under an Award, the Company may deduct (or require an Affiliate to deduct) from any payments of any kind
otherwise due to the Participant cash, or with the consent of the Committee, Shares otherwise deliverable or vesting under an Award,
to satisfy such tax obligations. Alternatively, the Company may require such Participant to pay to the Company, in cash, promptly
on demand, or make other arrangements satisfactory to the Company regarding the payment to the Company of the aggregate amount
of any such taxes and other amounts. If Shares are deliverable upon exercise or payment of an Award, the Committee may permit a
Participant to satisfy all or a portion of the Federal, state and local withholding tax obligations arising in connection with
such Award by electing to (a) have the Company withhold Shares otherwise issuable under the Award, (b) tender back Shares
received in connection with such Award or (c) deliver other previously owned Shares; provided, however, that the amount to
be withheld may not exceed the total minimum Federal, state and local tax withholding obligations associated with the transaction
to the extent needed for the Company to avoid an accounting charge. If an election is provided, the election must be made on or
before the date as of which the amount of tax to be withheld is determined and otherwise as the Committee requires. In any case,
the Company may defer making payment or delivery under any Award if any such tax may be pending unless and until indemnified to
its satisfaction.

 

(b)          No
Guarantee of Tax Treatment. Notwithstanding any provisions of the Plan, the Company does not guarantee to any Participant or
any other Person with an interest in an Award that (i) any Award intended to be exempt from Code Section 409A shall be so exempt,
(ii) any Award intended to comply with Code Section 409A or Code Section 422 shall so comply, (iii) any Award shall otherwise receive
a specific tax treatment under any other applicable tax law, nor in any such case will the Company or any Affiliate indemnify,
defend or hold harmless any Person with respect to the tax consequences of any Award.

 

    	- 8 -

    	 

    

 

(c)          Participant
Responsibilities. If a Participant shall dispose of Common Stock acquired through exercise of an Incentive Stock Option within
either (i) two (2) years after the date the Option is granted or (ii) one (1) year after the date the Option is exercised (i.e.,
in a disqualifying disposition), such Participant shall notify the Company within seven (7) days of the date of such disqualifying
disposition. In addition, if a Participant elects, under Code Section 83, to be taxed at the time an Award of Restricted Stock
(or other property subject to such Code Section) is made, rather than at the time the Award vests, such Participant shall notify
the Company within seven (7) days of the date the Restricted Stock subject to the election is awarded.

  

12.       
  Adjustment Provisions; Change of Control.

 

(a)          Adjustment
of Shares. If: (i) the Company shall at any time be involved in a merger or other transaction in which the Shares are changed
or exchanged, (ii) the Company shall subdivide or combine the Shares or the Company shall declare a dividend payable in Shares,
other securities or other property, (iii) the Company shall effect a cash dividend the amount of which, on a per Share basis, exceeds
ten percent (10%) of the Fair Market Value of a Share at the time the dividend is declared, or the Company shall effect any other
dividend or other distribution on the Shares in the form of cash, or a repurchase of Shares, that the Board determines by resolution
is special or extraordinary in nature or that is in connection with a transaction that the Company characterizes publicly as a
recapitalization or reorganization involving the Shares, or (iv) any other event shall occur, which, in the case of this clause
(iv), in the judgment of the Board or Committee necessitates an adjustment to prevent dilution or enlargement of the benefits or
potential benefits intended to be made available under the Plan, then the Committee shall, in such manner as it may deem equitable
to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan, adjust as
applicable: (A) the number and type of Shares subject to the Plan (including the number and type of Shares described in Sections
6(a) and (b)) and which may after the event be made the subject of Awards; (B) the number and type of Shares subject to outstanding
Awards; (C) the grant, purchase, or exercise price with respect to any Award; and (D) to the extent such discretion does not
cause an Award that is intended to qualify as performance-based compensation under Code Section 162(m) to lose its status as such,
the Performance Goals of an Award. In each case, with respect to Awards of Incentive Stock Options, no such adjustment may be authorized
to the extent that such authority would cause the Plan to violate Code Section 422(b).

 

Without limitation, in the event of any reorganization,
merger, consolidation, combination or other similar corporate transaction or event, whether or not constituting a Change of Control
(other than any such transaction in which the Company is the continuing corporation and in which the outstanding Common Stock is
not being converted into or exchanged for different securities, cash or other property, or any combination thereof), the Committee
may substitute, on an equitable basis as the Committee determines, for each Share then subject to an Award and the Shares subject
to the Plan (if the Plan will continue in effect), the number and kind of shares of stock, other securities, cash or other property
to which holders of Common Stock are or will be entitled in respect of each Share pursuant to the transaction.

 

Notwithstanding the foregoing, in the case
of a stock dividend (other than a stock dividend declared in lieu of an ordinary cash dividend) or subdivision or combination of
the Shares (including a reverse stock split), if no action is taken by the Committee, adjustments contemplated by this Section
12(a) that are proportionate shall nevertheless automatically be made as of the date of such stock dividend or subdivision or combination
of the Shares.

 

(b)          Issuance
or Assumption. Notwithstanding any other provision of the Plan, and without affecting the number of Shares otherwise reserved
or available under the Plan, in connection with any merger, consolidation, acquisition of property or stock, or reorganization,
the Committee may authorize the issuance or assumption of awards under the Plan upon such terms and conditions as it may deem appropriate.

  

(c)          Change
of Control. If the Participant has in effect an employment, retention, change of control, severance or similar agreement with
the Company or any Affiliate that discusses the effect of a Change of Control on the Participant’s Awards, then such agreement
shall control in the event of a Change of Control. In all other cases, in the event of a Change of Control, the Committee may,
in its sole discretion (i) elect to accelerate, in whole or in part, the vesting of any Award, (ii) elect to make cash payments
payable as a result of the acceleration of vesting of any Award, or (iii) elect to cancel any Options as of the date of the Change
of Control in exchange for a cash payment equal to the excess of the Change of Control price of the Shares covered by the Option
that is so cancelled over the purchase or grant price of such Shares under the Award.

 

    	- 9 -

    	 

    

 

Except as otherwise expressly provided in
any agreement between a Participant and the Company or an Affiliate, if the receipt of any payment by a Participant under the circumstances
described above would result in the payment by the Participant of any excise tax provided for in Section 280G and Section 4999
of the Code, then the amount of such payment shall be reduced to the extent required to prevent the imposition of such excise tax.

 

13.          Miscellaneous.

 

(a)          Other
Terms and Conditions. The grant of any Award may also be subject to other provisions (whether or not applicable to the Award
granted to any other Participant) as the Committee determines appropriate, including, without limitation, provisions for:

 

(i)          the
payment of the purchase price of Options by delivery of cash or other Shares or other securities of the Company (including by attestation)
having a then Fair Market Value equal to the purchase price of such Shares, or by delivery (including by fax) to the Company or
its designated agent of an executed irrevocable option exercise form together with irrevocable instructions to a broker-dealer
to sell or margin a sufficient portion of the Shares and deliver the sale or margin loan proceeds directly to the Company to pay
for the exercise price;

 

(ii)         restrictions
on resale or other disposition of Shares; and

 

(iii)        compliance
with federal or state securities laws and stock exchange requirements.

 

(b)          Employment
and Service. The issuance of an Award shall not confer upon a Participant any right with respect to continued employment or
service with the Company or any Affiliate, or the right to continue as a Director. Unless determined otherwise by the Committee,
for purposes of the Plan and all Awards, the following rules shall apply:

 

(i)          a
Participant who transfers employment between the Company and its Affiliates, or between Affiliates, will not be considered to have
terminated employment;

 

(ii)         a
Participant who ceases to be a Non-Employee Director because he or she becomes an employee of the Company or an Affiliate shall
not be considered to have ceased service as a Non-Employee Director with respect to any Award until such Participant’s termination
of employment with the Company and its Affiliates;

  

(iii)        a
Participant who ceases to be employed by the Company or an Affiliate and immediately thereafter becomes a Non-Employee Director,
a non-employee director of an Affiliate, or a consultant to the Company or any Affiliate shall not be considered to have terminated
employment until such Participant’s service as a director of, or consultant to, the Company and its Affiliates has ceased;
and

 

(iv)        a
Participant employed by an Affiliate will be considered to have terminated employment when such entity ceases to be an Affiliate.

 

Notwithstanding the foregoing, for purposes
of an Award that is subject to Code Section 409A, if a Participant’s termination of employment or service triggers the payment
of compensation under such Award, then the Participant will be deemed to have terminated employment or service upon his or her
“separation from service” within the meaning of Code Section 409A.

 

(c)          No
Fractional Shares. No fractional Shares or other securities may be issued or delivered pursuant to the Plan, and the Committee
may determine whether cash, other securities or other property will be paid or transferred in lieu of any fractional Shares or
other securities, or whether such fractional Shares or other securities or any rights to fractional Shares or other securities
will be canceled, terminated or otherwise eliminated.

 

    	- 10 -

    	 

    

 

(d)          Unfunded
Plan. This Plan is unfunded and does not create, and should not be construed to create, a trust or separate fund with respect
to the Plan’s benefits. This Plan does not establish any fiduciary relationship between the Company and any Participant or
other Person. To the extent any Person holds any rights by virtue of an Award granted under the Plan, such rights are no greater
than the rights of the Company’s general unsecured creditors.

 

(e)          Requirements
of Law and Securities Exchange. The granting of Awards and the issuance of Shares in connection with an Award are subject to
all applicable laws, rules and regulations and to such approvals by any governmental agencies or securities exchanges as may be
required. Notwithstanding any other provision of the Plan or any Award agreement, the Company has no liability to deliver any Shares
under the Plan or make any payment unless such delivery or payment would comply with all applicable laws and the applicable requirements
of any securities exchange or similar entity, and unless and until the Participant has taken all actions required by the Company
in connection therewith. The Company may impose such restrictions on any Shares issued under the Plan as the Company determines
necessary or desirable to comply with all applicable laws, rules and regulations or the requirements of any national securities
exchanges.

 

(f)          Governing
Law. This Plan, and all agreements under the Plan, will be construed in accordance with and governed by the laws of the State
of Delaware, without reference to any conflict of law principles. Any legal action or proceeding with respect to the Plan, any
Award or any award agreement, or for recognition and enforcement of any judgment in respect of the Plan, any Award or any award
agreement, may only be heard in a “bench” trial, and any party to such action or proceeding shall agree to waive its
right to a jury trial.

  

(g)          Limitations
on Actions. Any legal action or proceeding with respect to the Plan, any Award or any Award agreement, must be brought within
one (1) year (365 days) after the day the complaining party first knew or should have known of the events giving rise to the complaint.

 

(h)          Construction.
Whenever any words are used herein in the masculine, they shall be construed as though they were used in the feminine in all cases
where they would so apply; and wherever any words are used in the singular or plural, they shall be construed as though they were
used in the plural or singular, as the case may be, in all cases where they would so apply. Title of sections are for general information
only, and the Plan is not to be construed with reference to such titles.

 

(i)          Severability.
If any provision of the Plan or any award agreement or any Award (i) is or becomes or is deemed to be invalid, illegal or
unenforceable in any jurisdiction, or as to any Person or Award, or (ii) would disqualify the Plan, any award agreement or
any Award under any law the Committee deems applicable, then such provision should be construed or deemed amended to conform to
applicable laws, or if it cannot be so construed or deemed amended without, in the determination of the Committee, materially altering
the intent of the Plan, award agreement or Award, then such provision should be stricken as to such jurisdiction, Person or Award,
and the remainder of the Plan, such award agreement and such Award will remain in full force and effect.

   

    	- 11 -Exhibit 10.2

 

AMENDED
AND RESTATED

 

Amendment
No. 1

 

to
the

 

Tile
Shop Holdings, Inc. 2012 Equity Award Plan

 

This Amendment No.
1 dated effective February 14, 2013 is an amendment to that certain 2012 Equity Award Plan of Tile Shop Holdings, Inc., a Delaware
corporation (the “Company”), dated June 24, 2012 (the “Original Plan”).

 

1.      
Amendment to Title of the Original Plan. The title of the Original Plan shall be deleted in its entirety and replaced
with “Tile Shop Holdings, Inc. 2012 Omnibus Award Plan.”

 

2.      
Amendment to Section 1(a) of the Original Plan. The reference in Section 1(a) of the Original Plan that reads “The
Tile Shop Holdings, Inc. 2012 Equity Award Plan (the ‘Plan’)” shall be deleted in its entirety and replaced with
“The Tile Shop Holdings, Inc. 2012 Omnibus Award Plan (the ‘Plan’)”.

 

3.      
Amendment to Section 2(c) of the Original Plan. Section 2(c) shall be deleted in its entirety and replaced with the
following:

 

“(c)‘Award’
means a grant of Options, Restricted Stock, or a Performance Award.”

 

4.      
Addition of Section 2(aa) to the Original Plan. A new Section 2(aa) shall be added to the Original Plan which reads
as follows:

 

“(aa)‘Performance
Award’ means any grant pursuant to Section 14 hereof of an Award, which value, if any, shall be paid to a Participant
by delivery of cash upon achievement of such Performance Goals during the Performance Period as the Committee shall establish at
the time of such grant or thereafter.”

 

5.      
Addition of Section 2(bb) to the Original Plan. A new Section 2(bb) shall be added to the Original Plan which reads
as follows:

 

“(bb)‘Performance
Period’ means the period, established at the time any Performance Award is granted or at any time thereafter, during which
any Performance Goals specified by the Committee with respect to such Performance Award are to be measured.”

 

6.      
Amendment to Section 6(a) of the Original Plan. Section 6(a) shall be deleted in its entirety and replaced with the
following:

 

“(a)Plan
Reserve. Subject to adjustment as provided in Section 12, an aggregate of 2,500,000 Shares are reserved for issuance under
the Plan. On January 1 of each year beginning after the Effective Date and ending on February 14, 2013, an additional number of
Shares shall become available for issuance under the Plan equal to the lesser of: (i) 2,500,000 Shares; (ii) six percent (6%) of
the number of Shares issued and outstanding (on an as-converted basis) as of the immediately preceding December 31; and (iii) another
amount determined by the Board; provided, however, after February 14, 2013 the adjustment provided in this sentence shall be eliminated.
Subject to Section 6(b) and Section 12(a), all Shares reserved for issuance under the Plan may be issued as Incentive Stock Options.”

 

7.      
Amendment to Section 6(c) of the Original Plan. Section 6(c) shall be deleted in its entirety and replaced with the
following:

 

“(c)Limitation
on Awards During a Calendar Year. Notwithstanding any provision in the Plan to the contrary, and subject to Section 12(a),
the maximum number of Shares with respect to one or more Awards that may be granted to (or where the value of the Award is based
on the Fair Market Value of the Shares, is with respect to) any one Participant during any calendar year shall be 2,000,000. Further,
in no event shall the amount paid in any calendar year to any one Participant under a Performance Award granted pursuant to Section
14 exceed the greater of (i) $5,000,000, or (ii) 300% of the Participant’s base salary in effect as of the beginning of the
applicable Performance Period.”

 

 

    	- 1 -

    	 

    

 

8.      
Addition of Section 14 to the Original Plan. A new Section 14 shall be added to the Original Plan which reads as
follows:

 

“14.Performance
Awards. Each Performance Award granted pursuant to this Section 14 shall be evidenced by a written performance award agreement
(the “Performance Award Agreement”). The Performance Award Agreement shall be in such form as may be approved from
time to time by the Committee and may vary from Participant to Participant; provided, however, that each Participant and each Performance
Award Agreement shall comply with and be subject to the following terms and conditions:

 

     (a)Awards.
Performance Awards may be granted to any Participant in the Plan. Performance Awards shall consist of monetary awards which may
be earned or become vested in whole or in part if the Company or the Participant achieves certain Performance Goals established
by the Committee over a specified Performance Period.

 

(b)Performance
Objectives, Performance Period and Payment. The Performance Award Agreement shall set forth:

 

(i) 
the dollar value of each Performance Award;

 

(ii) 
one or more Performance Goals established by the Committee;

 

(iii) the
Performance Period over which Performance Award may be earned or may become vested;

 

(iv)the
extent to which partial achievement of the Performance Goals may result in a payment of the Performance Award, as determined by
the Committee; and

 

(v) the
date upon which payment of Performance Award will be made and the extent to which such payment may be deferred.

 

(c)Withholding
Taxes. The Company or its Affiliates shall be entitled to withhold and deduct from any payments made in connection with the
Performance Award, or from any other future payments made to the Participant, all legally required amounts necessary to satisfy
any and all withholding and employment-related taxes attributable to the Participant’s Performance Award.

 

(d)Nontransferability.
No Performance Award shall be transferable, in whole or in part, by the Participant, other than by will or by the laws of descent
and distribution. If the Participant shall attempt any transfer of any Performance Award granted under the Plan, such transfer
shall be void and the Performance Award shall terminate.

 

(e)Other
Provisions. The Performance Award Agreement authorized under this Section 14 shall contain such other provisions as the Committee
shall deem advisable.

 

9.      
Except as otherwise amended or modified herein, all other provisions of the Original Plan shall remain in full force and
effect.

  

    	- 2 -

    	 

    

 

IN WITNESS WHEREOF,
the Company has executed this document effective as of the 14th day of February, 2013.

 

 

	 	TILE SHOP HOLDINGS, INC.
	 	 	 
	 	 	 
	 	By:    	/s/ Timothy C. Clayton
	 	 	Timothy C. Clayton
	 	 	Chief Financial Officer

 

    	- 3 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00219-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00219-of-00352.parquet"}]]