Document:

Exhibit 10.23

 

GRAFTECH INTERNATIONAL LTD.

 

LONG TERM INCENTIVE PLAN

 

1.                                      Introduction

 

This GrafTech International Ltd. Long Term Incentive Plan (the “Plan”) has been adopted by GrafTech International Ltd. (the “Company”) effective as of August 17, 2015 (the “Effective Date”), as amended and restated as of March 15, 2018. Brookfield Capital Partners IV L.P., together with its Affiliates (“Brookfield”), owns 100% of the equity interests of the Company on the Effective Date. The purpose of the Plan is to attract and retain senior management personnel of the Company, to incentivize them to make decisions with a long-term view and to motivate and influence behavior on their part that is consistent with maximizing value for the shareholder of the Company in a prudent manner. Capitalized terms not otherwise defined herein shall have the meanings set forth in Section 8.

 

2.                                      Plan Administration

 

The Plan will be administered by the Board of Directors of the Company (the “Board”). All determinations of the value of the Incentive Pool and the Profit Units will be made by the Board in its discretion and shall be final and binding on all Participants and their beneficiaries, including, without limitation, determinations with respect to (i) the terms of the Plan and any Profit Units, (ii) the rights of any person under the Plan, or the meaning of requirements imposed by the terms of the Plan or award of Profit Units, (iii) the calculation of any amounts due under the Plan or in respect of Profit Units, (iv) any accelerating vesting or payment of awards, (v) all questions of interpretation, fact, or other matters arising under the Plan, and (vi) resolving all disputes under the Plan. The Board will have ultimate authority to make any required determinations and calculations under the Plan and for implementing any changes to the Plan. The Board’s determinations shall be binding and conclusive upon all Participants and all other interested parties. No member of the Board shall be liable for any action taken or determination made in good faith with respect to the Plan or any Profit Units granted hereunder.

 

3.                                      Plan Participants

 

The Board has the authority to determine and designate from time to time any employee, officer, director or consultant of the Company or an Affiliate to receive an award under the Plan (each a “Participant”). The Board shall determine the number of Profit Units to be granted and the terms and conditions of such Profit Units consistent with the terms of the Plan. In selecting Participants, and in determining the awards, the Board shall consider any and all factors that it deems relevant or appropriate. At the time a Participant is granted an award under the Plan, the Board shall allocate to such Participant a number of Profit Units, which shall represent a share in the Incentive Pool.

 

4.                                      Incentive Pool and Profit Units

 

(a)                                         Incentive Pool. Subject to vesting and the other terms and conditions set forth herein, an award under the Plan shall entitle such Participant to payment based on a share of the Incentive Pool. The “Incentive Pool” shall be the dollar amount represented by three percent (3%) of the Sale Proceeds realized by Brookfield as of any date of determination hereunder in excess of the Threshold Value. The Incentive Pool (as a percentage of the Sale Proceeds described in Section 4(c)) may be increased in the Board’s sole discretion. In the event that, in connection with a Change in Control, Brookfield disposes of less than 100% of its ownership interest, the amount of the Sales Proceeds in excess of the Threshold Value shall be

 

 

determined on a pro-rata basis by reference to the percentage of ownership interest disposed, as determined by the Board in its sole discretion. A Participant’s interest in the Incentive Pool shall be expressed in a number of notional unitary interests in the Incentive Pool, as described in Section 4(b) (a “Profit Unit”).

 

(b)                                        Profit Units.  Each Participant will be allocated a number of Profit Units, which equate to a share in the Incentive Pool. A total of 30,000 Profit Units will be available for allocation to all Participants, subject to any discretionary increases pursuant to Section 4(c). At any date of determination, each Participant’s percentage interest in the Incentive Pool will equal the number of Profit Units granted to such Participant, divided by the maximum amount of Profit Units available under the Incentive Pool.

 

(c)                                         Potential Adjustments. In the event of any such increase in the size of the Incentive Pool, the number of Profit Units shall be increased in the same proportion (e.g., an increase in the percentage of the Sale Proceeds allocated to the Incentive Pool of 50% shall result in an increase in the number of available Profit Units under the Plan by 50%). Any such increase shall not result in dilution or enlargement of a Participant’s rights with respect to any previously granted Profit Units.

 

(d)                                        Allocation and Forfeiture. The Board may issue all or some portion of the Profit Units in the Incentive Pool from time to time in its sole discretion. Any forfeiture of Profit Units that were previously allocated to Participants under awards will be held for future grants, if any, and will not be automatically reallocated to other Participants. Any unallocated portion of the Incentive Pool shall be retained by the Company and shall be available for future grants of awards under the Plan, if any. Any portion of the Incentive Pool that is not allocated to Participants at the time of settlement of awards under the Plan shall be retained by the Company.

 

(e)                                         Notice of Awards. Profit Units shall be granted to Participants in the sole discretion of the Board. The Company shall notify each Participant of an award, including the number of Profit Units allocated to such Participant, in a written notice (a “Profit Unit Notice”). A Profit Unit Notice may include such additional terms and conditions as the Board may determine.

 

5.                                      Vesting of Profit Units

 

(a)                                        General. Awards of Profit Units shall be subject to the time-based vesting based on a Participant’s continued Service, and vesting may be accelerated as provided below. An award may be subject to additional conditions as set forth in the applicable Profit Unit Notice.

 

(b)                                        Vesting Schedule. In general, unless otherwise provided in a Profit Unit Notice or as set forth herein, Profit Units will become vested based on the continued Service of the Participant in equal annual installments at the rate of twenty percent (20%) of the total number of Profit Units covered by an award on each of the first (1st) through the fifth (5th) anniversaries of the date of grant, and shall be settled in accordance with the terms of the Plan. Profit Units will become vested under the Plan provided that the Participant has been continuously employed through each such date.

 

(c)                                         Vesting upon Change in Control. Upon the occurrence of a Change in Control, unless otherwise provided in a Profit Unit Notice, any unvested Profit Units that have not previously been forfeited shall accelerate and become fully vested on such date and shall be settled in accordance with the terms of the Plan.

 

6.                                      Termination of Service

 

(a)                                        General. If a Participant ceases to provide Services prior to any applicable vesting date or event under the Plan for any reason, other than a termination for Cause, then the Participant shall forfeit all

 

 

unvested Profit Units for no consideration. Any portion of a Participant’s Profit Units that is vested as of the date such Participant ceases to provide Services shall continue to be an outstanding vested Profit Unit and may be settled in accordance with the terms of the Plan.

 

(b)                                        Termination for Cause. Notwithstanding anything contained herein to the contrary, if a Participant’s employment with the Company is terminated by the Company for Cause, all of such Participant’s Profit Units (whether or not vested) shall terminate and be forfeited for no consideration and cancelled without further force or effect immediately upon such termination for Cause.

 

7.                                      Settlement of Profit Units

 

(a)                                        Amount of Payment. The amount, form and timing of any payments of Profit Units shall be determined and approved by the Board in accordance with the Plan. The amount of payment in respect of the Profit Units shall be based on the amount of the Sales Proceeds in excess of the Threshold Value that is allocated to the Incentive Pool in accordance with the Plan, as well as the Participant’s interest in the Incentive Pool represented by the number of Profit Units awarded to the Participant. The value of each Profit Unit shall be determined by multiplying the total amount of the Incentive Pool by a fraction, the numerator of which is such Participant’s vested Profit Units and the denominator of which is the total number of Profit Units available under the Incentive Pool (30,000 units).

 

(b)                                        Form of Payment. Payments of Profit Units shall generally be made in cash by the Company, provided that if Sales Proceeds are paid to Brookfield all or in part in a form other than cash, the Board may provide payment in the same form and proportion as such payment.

 

(c)                                         Timing of Payment. Payment of vested Profit Units shall generally be made in a lump sum within thirty (30) days following the consummation date of a Change in Control, based on the Sales Proceeds received by Brookfield in connection with the Change in Control. Notwithstanding the foregoing, and subject to compliance with Section 409A of the Code, if a portion of Sales Proceeds are scheduled to be paid to Brookfield after such 30th day, whether in the form of earn-outs, escrows of other contingent or deferred consideration, payments in respect of the Profit Units (as calculated above) shall be paid on the same schedule and subject to the same terms and conditions as payments are made to Brookfield generally, but not later than the date that is five (5) years following the consummation date of the Change in Control.

 

8.                                      Definitions

 

As used herein, the following terms shall have the following meanings:

 

(a)                                        “Affiliate” means, with respect to any Person, means any other Person which controls, is controlled by or is under common control with, directly or indirectly, such Person. For this purpose, “control” of a Person shall mean possession, directly or indirectly, of the right or power to direct or cause the direction of the management or policies of such Person, whether through ownership of voting securities, through rights under contracts, or otherwise.

 

(b)                                        “Cause” has the meaning, with respect to a Participant, set forth in such Participant’s employment agreement, offer letter or similar agreement in connection with the employment by the Company. In the absence thereof, “Cause” shall means: (a) the willful failure of the Participant to properly carry out his or her duties or to comply with the rules and policies of the Company or Brookfield, as applicable, or any reasonable instruction or directive of the Board, that is not cured, if curable, to the Board’s reasonable satisfaction, within ten (10) days after the Board or its designee gives written notice thereof to the Participant; (b) the Participant acting dishonestly or fraudulently, or the willful misconduct of the Participant in the course of his or her employment, in each case resulting in adverse consequences to the

 

 

Company or Brookfield, which in the case of willful misconduct only, is not cured, if curable to the Board’s reasonable satisfaction, within 10 days after the Board or its designee gives written notice thereof to the Participant; (c) if the Participant or any member of his or her family makes any personal profit arising out of or in connection with any transaction to which the Company or Brookfield is a party or with which the Company or Brookfield is associated without making disclosure to and obtaining the prior written consent of the Board; (d) the conviction of the Participant for, or a guilty plea by the Participant to, any criminal offence punishable by imprisonment that may reasonably be considered to be likely to adversely affect the Company or Brookfield or the suitability of the Participant to perform his or her duties, including without limitation any offence involving fraud, theft, embezzlement, forgery, willful misappropriation of funds or property, or other fraudulent or dishonest acts involving moral turpitude; (e) the failure by the Participant to fully comply with and perform his or her fiduciary duties; (f) any other act, event or circumstance which would constitute just cause at law for termination of the Participant’s employment; or (g) any resignation by the Participant in anticipation of a termination by the Company of such Participant’s employment due to any of the above.

 

(c)                                         “Code” means the Internal Revenue Code of 1986, as amended.

 

(d)                                        “Change in Control” means any transaction or series of transactions (including, without limitation, the consummation of a combination, share purchases, recapitalization, redemption, issuance of capital stock, consolidation, reorganization or otherwise) pursuant to which (a) a Person not affiliated with Brookfield acquires securities representing more than seventy percent (70%) of the combined voting power of the outstanding voting securities of the Company or the entity surviving or resulting from such transaction, (b) following a public offering of the Company’s stock, Brookfield has ceased to have a beneficial ownership interest in at least thirty percent (30%) of the Company’s outstanding voting securities (effective on the first such date), or (c) the Company sells all or substantially all of the assets of the Company and its subsidiaries on a consolidated basis. It is intended that the occurrence of a Change in Control in which Sales Proceeds exceed the Threshold Value would constitute a “substantial risk of forfeiture” within the meaning of Section 409A.

 

(e)                                            “Person” means an individual, a partnership, a sole proprietorship, a company, a firm, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, an unincorporated organization, a union, a group acting in concert, a judicial authority, a governmental authority or any other entity or association of any kind. References to any Person shall include the successors and assigns thereof, except to the extent otherwise expressly provided in the Plan.

 

(f)                                          “Sale Proceeds” as of any date of determination, means, without duplication, the sum of all proceeds actually received by the Brookfield, net of all Sales Costs, (i) as consideration (whether cash or equity) upon the Change in Control and (ii) as distributions, dividends, repurchases, redemptions or otherwise as a holder of such equity interests in the Company. Proceeds that are not paid upon or prior to or in connection with the Change in Control, including earn-outs, escrows and other contingent or deferred consideration shall become “Sale Proceeds” only as and when such proceeds are received by Brookfield. The amount of Sales Proceeds shall be determined by the Board in its sole discretion.

 

(g)                                         “Sales Costs” means any costs or expenses (including legal or other advisor costs), fees (including investment banking fees), commissions or discounts payable directly by Brookfield in connection with, arising out of or relating to a Change in Control, as determined by the Board in its sole discretion.

 

(h)                                           “Service” means provision of services as an employee, officer, director or consultant to or for the benefit of the Company or an Affiliate.

 

 

(i)                                            “Threshold Value” as of any date of determination, means, an amount equal to $855,000,000, (which represents the amount of the total invested capital of Brookfield as of the Effective Date), plus the dollar value of any cash or other consideration contributed to or invested in the Company by Brookfield after the Effective Date. The Threshold Value shall be determined by the Board in its sole discretion.

 

9.                                      Miscellaneous

 

(a)                                        Tax Withholding. All payments in respect of Profit Units under the Plan will be treated as ordinary compensation income for tax purposes and will be subject to all applicable tax withholdings.

 

(b)                                        Rights as an Award Holder. The Profit Units do not constitute an equity interest in the Company or any of its Affiliates and shall not be construed as providing or creating any rights of a holder of an equity interest (including rights to distributions and to vote). Participants shall not be treated as an equity holder of the Company or any of its Affiliates as a result of being granted an award hereunder.

 

(c)                                         Non-Transferability; Unfunded Plan. Other than in accordance with the laws of descent and distribution, in no event shall any Profit Units allocated to a Participant, nor any payment to any Participant or any right of any Participant to receive any payment arising under the Plan, be subject to alienation, sale, transfer, assignment, garnishment, pledge, encumbrance or charge. The Participant’s right to the payments under the Plan shall represent an unfunded and unsecured promise to be paid by the Company. A Participant will be a general, unsecured creditor of the Company and the Participant’s right to payments shall remain subject to the claims of the Company’s creditors. If the Company’s assets are insufficient to pay all of its creditors, each Participant recognizes that such Participant may not receive part or all of such Participant’s payments hereunder. Brookfield is not a party to and shall not have any liability for payments under the Plan. The Plan is not subject to the Employment Retirement Income Security Act of 1974.

 

(d)                                        Limitation of Rights. Neither the establishment of the Plan nor any grant of an award or payment of an amount hereunder shall be construed as conferring upon a Participant any right with respect to a continuation of employment by the Company or any of its Affiliates nor shall it interfere in any way with the right of the Company or any of its Affiliates to terminate a Participant’s employment at any time. Nothing in the Plan shall be construed to limit, impair or otherwise affect the Company’s right or power to make adjustments, reclassifications, reorganizations or changes of its capital or business structure or to merge, consolidate, dissolve, liquidate, sell or transfer all or any part of its business or assets or limit the right or power of the Company to take any action that it deems necessary or appropriate.

 

(e)                                         Section 409A. All payments hereunder are intended to comply with or be exempt from Section 409A of the Code and the regulations promulgated thereunder (“Section 409A”). If a payment is deemed to be subject to Section 409A, the Company may, in its sole discretion and without a Participant’s prior consent, amend the Plan, adopt policies and procedures, or take any other necessary or appropriate actions (including actions with retroactive effect) to preserve the intended tax treatment of any such payment or comply with the requirements of Section 409A. A termination of Service shall not be deemed to have occurred for purposes of any provision of this Plan providing for the payment of any amounts or benefits considered “nonqualified deferred compensation” under Section 409A upon or following a termination of Service unless such termination is also a “separation from service” within the meaning of Section 409A, and for purposes of any such provision of this Plan, references to a “termination,” “termination of employment” or like terms shall mean “separation from service.” If the Participant is deemed on the date of termination to be a “specified employee” within the meaning of that term under Section 409A(a)(2)(B) of the Code, then with regard to any payment or the provision of any benefit that is considered nonqualified deferred compensation under Section 409A payable on account of a “separation

 

 

from service,” no such payment or benefit shall be made or provided prior to the earlier of (A) the expiration of the six-month period measured from the date of such “separation from service” of the Participant, and (B) the date of the Participant’s death (the “Delay Period”). All payments and benefits delayed pursuant to this Section 8(e) (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid or reimbursed on the first business day following the expiration of the Delay Period to Participant in a lump sum without interest, and any remaining payments and benefits due under this Plan shall be paid or provided in accordance with the normal payment dates specified for them herein. Except as permitted under Section 409A, any deferred compensation (within the meaning of Section 409A) payable to any Participant or for such Participant’s benefit under this Plan may not be reduced by or offset against any amount owing by the Participant to the Company or any of its Affiliates. It is intended that each payment provided under this Plan shall be a separate “payment” for purposes of Section 409A.

 

(f)                                          Amendment and Termination. The Plan shall take effect on the Effective Date. The Board shall be entitled at any time or from time to time to amend, alter, suspend or terminate in whole or in part any or all of the provisions of the Plan; provided, that with respect to any outstanding award of Profit Units, no such action shall be made without the consent of the affected Participants unless the Board shall have determined that such action would not adversely affect the right of such Participant in a material manner.

 

(g)                                         Successors; Governing Law. The Company’s rights and obligations hereunder shall be binding upon its successors. The Company’s rights and obligations hereunder may be assigned or transferred by the Company to, and may be assumed by and become binding upon and may inure to the benefit of, any Affiliate of the Company or transferee of all or substantially all of its assets. The validity, interpretation, and enforcement of the Plan and all awards hereunder shall be governed by the laws of the state of Delaware without regard to its conflict of laws principles and rules.

 

IN WITNESS WHEREOF, the Company has adopted the Plan as of August 17, 2015, as amended and restated as of March 15, 2018.Exhibit 10.1

 

COOPERATION AGREEMENT

 

This AGREEMENT,
dated as of March 19, 2018 (this “Agreement”), is made and entered into by EVINE Live Inc., a Minnesota corporation
(the “Company”), and each of the persons set forth on the signature page hereto (each, an “Investor”
and collectively, the “Investors” or, together with their respective Affiliates and Associates, the “Investor
Group”), which persons presently are or may be deemed to be members of a “group” with respect to the common
stock of the Company, $0.01 par value per share (the “Common Stock”), pursuant to Rule 13d-5 promulgated by
the U.S. Securities and Exchange Commission (the “SEC”) under the Securities Exchange Act of 1934, as amended
(the “Exchange Act”); and

 

WHEREAS,
the Company and the Investor Group have determined to come to an agreement with respect to certain matters relating to the composition
of the Company’s Board of Directors (the “Board”), 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 Composition.

 

(a)              
Appointment and Nomination of New Independent Director. No later than three (3) business days from the date of execution
of this Agreement, the Company shall take the necessary steps to cause the Board to appoint Alex Spiro (the “New Independent
Director”) to the Board to serve until the Company’s 2018 annual meeting of shareholders (the “2018 Annual
Meeting”). The Company agrees that the Board and all applicable committees thereof shall take all necessary actions to
nominate the New Independent Director for re-election to the Board at the 2018 Annual Meeting.

 

(b)              
Board Matters. Prior to the date of execution of this Agreement, the New Independent Director has provided to the
Board’s Corporate Governance and Nominating Committee the completed directors’ and officers’ questionnaire (in
the form customarily used for the Company’s independent or non-management directors) completed by the New Independent Director
and his biographical information as would be required to be included in a proxy statement filed by the Company with the SEC pursuant
to the Exchange Act. The Company agrees to (i) recommend, and reflect such recommendation in the Company’s definitive proxy
statement in connection with the 2018 Annual Meeting, that the shareholders of the Company vote to re-elect the New Independent
Director as a director of the Company at the 2018 Annual Meeting for a term of office expiring at the 2019 annual meeting of the
shareholders of the Company (the “2019 Annual Meeting”), and (ii) solicit, obtain proxies in favor of, and otherwise
support the election of the New Independent Director at the 2018 Annual Meeting, in a manner no

 

    	 

     

    

less favorable than the manner
in which the Company supports other nominees for election at the 2018 Annual Meeting.

 

(c)              
Replacement of New Independent Director. In the event that the New Independent Director (or his replacement appointed
pursuant to this Section 1(c)) is unable or unwilling to serve as a director of the Company (other than on account of failure
to be elected or reelected) during the Standstill Period, the Investor Group shall have the right to propose a replacement for
such director (a “Replacement”) that (i) qualifies as “independent” pursuant to SEC regulations
and the listing standards of The Nasdaq Stock Market LLC (“NASDAQ”), (ii) has, in the reasonable and good faith
judgment of the Company, relevant financial and business experience to serve on the Board, and (iii) is independent of the Investor
Group. Any Replacement must be approved by the Company, such consent not to be unreasonably withheld. The Company shall appoint
any such Replacement who meets the foregoing criteria to the Board to replace the New Independent Director, with such Replacement
to serve as a director and as a member of those Board committees on which the then New Independent Director served, in each case,
during the unexpired term, if any, of the New Independent Director. Such Replacement shall thereafter be considered the New Independent
Director for all purposes of this Agreement.

 

(d)              
Board Policies and Procedures. The Investor Group acknowledges that the New Independent Director shall be required
to comply with all policies, processes, procedures, codes, rules, standards, and guidelines applicable, from time to time, to members
of the Board, including the Company’s Code of Conduct, and policies on confidentiality, ethics, hedging and pledging of Company
securities, public disclosures, stock trading, and stock ownership (provided that any amendment or revision of the foregoing
shall not affect any rights of the Investor Group provided in this Section 1), and the New Independent Director and the
Investor Group shall provide the Company with such information as is reasonably requested by the Company concerning the New Independent
Director and/or the Investor Group 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
SEC.

 

(e)              
Rights and Benefits of the New Independent Director. The Company agrees that the New Independent Director shall receive
(i) the same benefits of director and officer insurance, and any indemnity and exculpation arrangements available generally to
the directors on the Board, (ii) the same compensation for his 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, any Forms 3, 4, and 5
under Section 16 of the Exchange Act that are required to be filed by each director of the Company.

 

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2.                 
2018 Annual Meeting. The Investor Group agrees not to bring any nominations, business, or proposals before or at
the 2018 Annual Meeting and agrees not to deliver to the Company or any representative thereof any advance notices of nominations
or shareholder proposals with respect to any meeting of the Company’s shareholders during the Standstill Period.

 

3.                 
Standstill.

 

(a)              
Each Investor agrees that, from the date of this Agreement until the expiration of the Standstill Period, without the prior
written authorization or invitation of the Board, neither it nor any of its Related Persons will, and it will cause each of its
Related Persons not to, directly or indirectly, in any manner:

 

(i)                
publicly propose or publicly announce or otherwise publicly disclose an intent to propose or enter into or agree to enter
into, singly or with any other person, directly or indirectly, (x) 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, (y) any form of restructuring,
recapitalization, or similar transaction with respect to the Company or any of its subsidiaries, or (z) any form of tender or exchange
offer for the Common Stock, whether or not such transaction involves a change of control of the Company; provided, however,
that this clause (i) shall not preclude the tender by any Investor of any securities of the Company into any tender or exchange
offer not made, financed, or otherwise supported by the Investor Group or any Affiliate or Associate thereof or preclude the ability
of any Investor to vote its shares of Common Stock for or against any transaction involving the Company’s securities where
the transaction is not proposed or sponsored by any Investor or any Affiliate or Associate thereof;

 

(ii)             
engage in any solicitation of proxies or written consents to vote any voting securities of the Company, or conduct any non-binding
referendum with respect to any voting securities of the Company, or assist or participate (other than by determining how to vote
their own shares) 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 in opposition to any recommendation or proposal of the Board;

 

(iii)           
acquire, offer, or propose to acquire, or agree to acquire, directly or indirectly, whether by purchase, tender or exchange
offer, through the acquisition of control of another person, by joining a partnership, limited partnership, syndicate, or other
group (including any group of persons that would be treated as a single “person” under Section 13(d) of the Exchange
Act), through swap or

 

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hedging
transactions or otherwise, any additional securities of the Company or any rights decoupled from the underlying securities of
the Company, to the extent that the Investor Group’s total beneficial ownership would exceed in the aggregate (among all
of the Investors and any Affiliate or Associate thereof) 9.9% of the Common Stock outstanding;

 

(iv)            
Except in Rule 144 open-market broker-sale transactions where the identity of the purchaser is not known and in underwritten
widely-dispersed public offerings, 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 Investors 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 or Associate
of the Investors (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 and Associates, owning, controlling or otherwise
having any, beneficial, economic or other ownership interest representing in the aggregate in excess of 5% of the shares of Common
Stock outstanding at such time;

 

(v)              
engage in any short sale with respect to any security (other than a broad-based market basket or index) that includes, relates
to, or derives any significant part of its value from a decline in the market price or value of the securities of the Company;

 

(vi)            
except as otherwise set forth in this Agreement, take any action in support of or make any proposal or request that constitutes:
(A) 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, (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 Amended
and Restated Articles 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)         
call or seek to call, or request the call of, alone or in concert with others, any meeting of shareholders, whether or not
such a meeting is permitted by the Company’s Amended and Restated Articles of Incorporation or Bylaws, including a “town
hall meeting”;

 

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(viii)       
publicly seek, alone or in concert with others, representation on the Board, except as expressly permitted by this Agreement;

 

(ix)            
initiate, encourage or in any “vote no,” “withhold,” or similar campaign;

 

(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 members of the Investor
Group that is otherwise in accordance with this Agreement);

 

(xi)            
seek, or knowingly 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 or knowingly encourage any action with respect to
the election or removal of any directors of the Company or with respect to the submission of any shareholder proposals (including
any submission of shareholder proposals pursuant to Rule 14a-8 under the Exchange Act);

 

(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 (other than the Investor Group);

 

(xiii)       
demand a copy of the Company’s list of shareholders or its other books and records, whether pursuant to the Minnesota
Business Corporation Act (the “MBCA”) or pursuant to any other statutory right;

 

(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 in order to, directly or indirectly, effect any of the actions expressly prohibited by this
Agreement or cause the Company to amend or waive any of the provisions of this Agreement; provided, however, that
for the avoidance of doubt, the foregoing shall not prevent any of the Investor Group 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, (C) bringing bona fide commercial disputes that do not relate to the subject matter of this Agreement or the
topics covered in any correspondence between the Company and the Investor Group prior to the date hereof, or (D) exercising statutory
dissenter’s, appraisal, or similar rights under the MBCA; provided, further, that the foregoing shall
also not prevent the Investors from responding to or complying with a validly issued legal process in connection with litigation
that it did not initiate, invite, facilitate or encourage, except as otherwise permitted in this Section (3)(a)(xiv);

 

(xv)          
disclose publicly or privately in a manner that could reasonably be expected to become public any intent, purpose, plan,
or proposal with respect to

 

    	 	5	 

     

    

the Board,
the Company, its management, policies or affairs, any of its securities or assets, or this Agreement that is inconsistent with
the provisions of this Agreement;

 

(xvi)        
enter into any negotiations, agreements, or understandings with any person or entity with respect to any of the foregoing,
or advise, knowingly assist, knowingly encourage, or knowingly seek to persuade any person or entity to take any action or make
any statement with respect to any of the foregoing, or otherwise take or cause any action or make any statement inconsistent with
any of the foregoing;

 

(xvii)     
make any request or submit any proposal to amend the terms of this Agreement other than through non-public communications
with the Company that would not be reasonably determined to trigger public disclosure obligations for any party;

 

(xviii)   
take any action challenging the validity or enforceability of any of the provisions of this Section 3 or publicly
disclose, or cause or facilitate the public disclosure (including the filing of any document with the SEC or any other governmental
agency or any disclosure to any journalist, member of the media, or securities analyst) of, any intent, purpose, plan, or proposal
to either (A) obtain any waiver or consent under, or any amendment of, any provision of this Agreement, or (B) take any action
challenging the validity or enforceability of any provisions of this Section 3; or

 

(xix)        
otherwise take, or solicit, cause or encourage others to take, any action inconsistent with the foregoing.

 

(b)              
Notwithstanding the foregoing, the provisions of this Section 3 shall not limit in any respect the actions of any
director of the Company (including the New Independent Director) in his or her capacity as such, recognizing that such actions
are subject to such director’s fiduciary duties to the Company and its shareholders (it being understood and agreed that
neither the Investors nor any of their Affiliates or Associates shall seek to do indirectly through the New Independent Director
anything that would be prohibited if done by any of the Investors or their Affiliates and Associates directly).

 

(c)              
The foregoing provisions of this Section 3 shall not be deemed to prohibit the Investor Group or its directors, officers,
partners, employees, members, or agents, in each case acting in such capacity (“Investor Agents”), from communicating
privately regarding or privately advocating for or against any of the matters described in this Section 3 with the Company’s
directors or officers, so long as such communications are not intended to, and would not reasonably be expected to, require any
public disclosure of such communications or requests.

 

(d)              
As of the date of this Agreement, none of the Investors is engaged in any discussions or negotiations with any person, and
none of the Investors has any

 

    	 	6	 

     

    

agreements, arrangements, or
understandings, written or oral, formal or informal, and whether or not legally enforceable, with any person concerning the acquisition
of economic ownership of any securities of the Company, and none of the Investors has actual and non-public knowledge that any
other shareholders of the Company, including any shareholders that have a Schedule 13D currently on file with the SEC with respect
to the Company, have any present or future intention of taking any actions that if taken by the Investors would violate any of
the terms of this Agreement. The Investors agree to refrain from taking any actions during the Standstill Period to intentionally
encourage other shareholders of the Company or any other persons to engage in any of the actions referred to in the previous sentence.

 

(e)              
As used in this Agreement, the terms “Affiliate” and “Associate” shall have the respective
meanings set forth in Rule 12b-2 promulgated by the SEC under the Exchange Act; the terms “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; the terms
“economic owner” and “economically own” shall have the same meanings as “beneficial owner”
and “beneficially own,” except that a person will also be deemed to economically own and to be the economic owner of
(i) all shares of Common Stock that such person has the right to acquire pursuant to the exercise of any rights in connection with
any securities or any agreement, regardless of when such rights may be exercised and whether they are conditional, and (ii) all
shares of Common Stock in which such person has any economic interest, including pursuant to a cash-settled call option or other
derivative security, contract, or instrument in any way related to the price of shares of Common Stock; the terms “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 the term
“Related Person” shall mean, as to any person, any Affiliates or Associates of such person.

 

(f)               
Notwithstanding anything contained in this Agreement to the contrary, the provisions of Sections 1, 2, and 3 shall
automatically terminate upon (i) the announcement by the Company that it has entered into a definitive agreement with respect to
any merger, consolidation, acquisition, business combination, sale of a division, sale of substantially all assets, recapitalization,
restructuring, liquidation, dissolution, or other similar extraordinary transaction that would, if consummated, result in the acquisition
by any person or group of persons (other than any direct or indirect subsidiaries of the Company) of more than 50% of the Common
Stock; or (ii) the commencement of any tender or exchange offer (by a person other than the Investor Group) that, if consummated,
would result in the acquisition by any person or group of more than 50% of the Common Stock, where the Company files a Schedule
14D-9 (or any amendment thereto), other than a “stop, look and listen” communication by the Company pursuant to Rule
14d-9(f) promulgated under the Exchange Act, that does not recommend that the Company’s shareholders reject such tender or
exchange offer.

 

    	 	7	 

     

    

(g)              
For purposes of this Agreement, “Standstill Period” shall mean the period commencing on the date of this
Agreement and ending at 11:59 p.m., Eastern Time, on the date that is the earlier of (x) 30 calendar days prior to the expiration
of the advance-notice period for the submission by shareholders of director nominations for consideration at the 2019 Annual Meeting
(as set forth in the advance-notice provisions of the Company’s Amended and Restated Bylaws), (y) 100 calendar days prior
to the first anniversary of the 2018 Annual Meeting, or (z) upon 10 calendar days’ prior written notice delivered by any
of the Investor Group to the Company following a material breach of this Agreement by the Company, including the Company’s
failure to appoint or nominate the New Independent Director and/or the Replacement in accordance with Section 1, in each
case, if such breach has not been cured within such notice period, provided that any members of the Investor Group are not
then in material breach of this Agreement.

 

4.                 
Expenses. Each of the Company and the Investors 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.

 

5.                 
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 this 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 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.

 

6.                 
Representations and Warranties of the Investors. Each Investor, on behalf of itself, severally represents and warrants
to the Company that (a) as of the date hereof, and other than shares of Common Stock, such Investor does not own beneficially or
of record any securities of the Company, any direct or indirect rights or options to acquire such securities, or any derivative
securities or contracts or instruments in any way related to the price of the Common Stock (other than a broad-based market basket
or index), (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

 

    	 	8	 

     

    

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 this 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) each of the Investors shall use its commercially reasonable efforts to cause
its respective Affiliates and Associates 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 member is a party or by which it is bound. The Investor Group acknowledges the Shareholder
Rights Plan (the “Rights Plan”) with Wells Fargo Bank, N.A., a national banking association, and that under
the Rights Plan, any Investor must seek a waiver from the Company under the Rights Plan prior to acquiring beneficial ownership
of 4.99% or more of the Common Stock outstanding, subject to certain exceptions under the Rights Plan.

 

7.                 
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 such Investor
of any material breach to remedy such material breach if capable of remedy), neither it nor any of its Affiliates or Associates
will, and it will cause each of its Affiliates and Associates not to, directly or indirectly, publicly make, express, transmit,
speak, write, or otherwise publicly state (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
or in writing, that might reasonably be construed to be derogatory or critical of, or negative toward, the Company or any of its
directors, officers, Affiliates, Associates, 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 or Associates, or to malign, harm,
disparage, defame, or damage the reputation or good name of the Company, its business or any of the Company Representatives.

 

(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 such Investor shall have three business days following written notice from the
Company of any 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

 

    	 	9	 

     

    

to, directly or indirectly,
publicly make, express, transmit, speak, write, or otherwise publicly state (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 or in writing, that might reasonably be construed to be derogatory or critical of, or negative toward,
the Investors or their Affiliates or Associates or any of the Investor Agents, or that reveals, discloses, incorporates, is based
upon, discusses, includes, or otherwise involves any confidential or proprietary information of any Investor or its Affiliates
or Associates, or to malign, harm, disparage, defame, or damage the reputation or good name of any Investor, its business or any
of the Investor Agents.

 

(c)              
Notwithstanding the foregoing, nothing in this Section 7 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
such party must provide, to the extent legally permissible, advance written notice to the other parties, and to the extent practicable,
at least two business days in advance, prior to making any such statement or disclosure required under the federal securities laws
or other applicable laws that would otherwise be prohibited by the provisions of this Section 7, and reasonably consider
any comments of such other parties.

 

(d)              
The limitations set forth in Sections 7(a) and 7(b) shall not prevent any party from responding to any public statement
made by the other party of the nature described in Section 7(a) or 7(b) if such statement by the other party was made in
breach of this Agreement.

 

8.                 
No Concession or Admission of Liability. This Agreement is being entered into for the purpose of avoiding litigation,
uncertainty, controversy, and legal expense, constitutes a compromise and settlement entered into by each party hereto, and shall
not in any event constitute, be construed or deemed a concession or admission of any liability or wrongdoing of any of the parties.

 

9.                 
Public Announcements. During the Standstill Period, neither the Company nor any of the Investors shall issue any
press release or make any public announcement regarding this Agreement or the appointments contemplated hereby or take any action
that would require public disclosure thereof without the prior written consent of the other party, except as required by law or
the rules of any stock exchange (and, in any event, each party will provide the other party, prior to making any such public announcement
or statement, a reasonable opportunity to review and comment on such disclosure, to the extent reasonably practicable under the
circumstances, and each party will consider any comments from the other in good faith) or with the prior written consent of the
other party, and otherwise in accordance with this Agreement.

 

10.             
SEC Filings. No later than four business days following the execution of this Agreement, the Company shall file a
Current Report on Form 8-K with the SEC reporting the entry into this Agreement and appending or incorporating by reference this
Agreement as an exhibit thereto. The Company shall provide the Investor Group and its counsel a reasonable

 

    	 	10	 

     

    

opportunity to review and comment
on the Form 8-K prior to such filing, which comments shall be considered in good faith.

 

11.             
Specific Performance. Each of the Investors, on the one hand, and the Company, on the other hand, acknowledges and
agrees that irreparable injury to the other party hereto may 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 the Investors or any Investor, on the one hand, and the Company, on the other
hand (the “Moving Party”), shall each be entitled to seek specific enforcement of, and injunctive or other equitable
relief to prevent any 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.

 

12.             
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 facsimile (provided confirmation of transmission is mechanically or electronically
generated and kept on file by the sending party); (iii) upon confirmation of receipt, when sent by email (provided such confirmation
is not automatically generated); or (iv) 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:

 

EVINE
Live Inc.

6740
Shady Oak Road

Eden
Prairie, MN 55344

Fax
No.: (952) 943-6119

		Email:	amfike@evine.com

		Attention:	Andrea Fike, SVP and General Counsel

 

With
copies (which shall not constitute notice) to:

 

Faegre
Baker Daniels LLP

2200
Wells Fargo Center

90
South 7th Street

Minneapolis,
MN 55402

Fax
No.: (612) 766-1600

		Email:	jon.zimmerman@faegrebd.com

mike.stanchfield@faegrebd.com

		Attention:	Jonathan Zimmerman

Mike
Stanchfield

    	 	11	 

     

    

 

If to
any Investor:

 

Clinton
Group, Inc.

510 Madison
Avenue, 9th Floor

New
York, NY 10022 Fax No.: (212) 377-4252

		Email:	geh@clinton.com

jad@clinton.com

		Attention:	George Hall, President

Joseph
A. De Perio, Senior Portfolio Manager

 

13.             
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 New York, executed and to be performed wholly within the State of
New York, except with respect to matters related to the voting of the Common Stock and corporate governance matters (including
fiduciary determinations) for which Minnesota law shall apply, in each case without reference to the choice of law or conflict
of law principles thereof or of any other jurisdiction to the extent that such principles would require or permit the application
of the laws of another jurisdiction.

 

14.             
Jurisdiction. Each of the parties hereto (a) consents to submit itself to the personal jurisdiction of federal or
state courts of the State of New York in the event any dispute arises out of this Agreement or the transactions contemplated by
this Agreement, (b) agrees that it shall not bring any action relating to this Agreement or the transactions contemplated by this
Agreement in any court other than the federal or state courts of the State of New York, and each of the parties irrevocably waives
the right to trial by jury, (c) agrees to waive any bonding requirement under any applicable law, in the case any other party seeks
to enforce the terms by way of equitable relief, and (d) irrevocably consents to service of process by first-class certified mail,
return-receipt requested, postage prepaid, to the address of such party’s principal place of business or as otherwise provided
by applicable law. Each of the parties hereto irrevocably waives, and agrees not to assert, by way of motion, as a defense, counterclaim,
or otherwise, in any action, suit, or other legal proceeding with respect to this Agreement, (a) any claim that it is not personally
subject to the jurisdiction of the above-named courts for any reason, (b) 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 before judgment,
attachment in aid of execution of judgment, execution of judgment, or otherwise), and (c) to the fullest extent permitted by applicable
law, that (i) such action, suit or other legal proceeding in any such court is brought in an inconvenient forum, (ii) the venue
of such action, suit, or other legal proceeding is improper, or (iii) this agreement, or the subject matter hereof, may not be
enforced in or by such court.

 

    	 	12	 

     

    

15.             
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 15.

 

16.             
Representative. Each Investor hereby irrevocably appoints Joseph A. De Perio as its attorney-in-fact and representative
(the “Investor Group 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, as being binding on each Investor, upon any action
taken by the Investor Group Representative or upon any document, notice, instruction, or other writing given or executed by the
Investor Group Representative.

 

17.             
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 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.

 

18.             
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.

 

19.             
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.

 

20.             
Remedies. All remedies hereunder are cumulative and are not exclusive of any other remedies provided by law or equity.

 

21.             
Receipt of Adequate Information; No Reliance; Representation by Counsel. Each party acknowledges that it has received
adequate information to enter into this Agreement, that it

 

    	 	13	 

     

    

has had adequate opportunity to
make whatever investigation or inquiry it may deem necessary or desirable in connection with the subject matter of this Agreement
prior to the execution hereof, and that it has not relied on any promise, representation, or warranty, express or implied, not
contained in this Agreement. Each of the parties hereto acknowledges that it has been represented by counsel of its choice throughout
all negotiations that have preceded the execution of this Agreement, and that it has executed the same with the advice of said
independent counsel. Each party cooperated and participated in the drafting and preparation of this Agreement and the documents
referred to herein, and any and all drafts relating thereto exchanged among the parties shall be deemed the work product of all
of the parties and may not be construed against any party by reason of its drafting or preparation. Accordingly, any rule of law
or any legal decision that would require interpretation of any ambiguities in this Agreement against any party that drafted or
prepared it is of no application and is hereby expressly waived by each of the parties hereto, and any controversy over interpretations
of this Agreement shall be decided without regards to events of drafting or preparation. Further, any rule of law or any legal
decision that would provide any party with a defense to the enforcement of the terms of this Agreement against such party shall
have no application and is expressly waived. The provisions of this Agreement shall be interpreted in a reasonable manner to effect
the intent of the parties.

 

22.             
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.

 

23.             
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.

 

24.             
Amendment. This Agreement may be modified, amended, or otherwise changed only in a writing signed by all of the parties
hereto, or in the case of the Investors, the Investor Group Representative, or their respective successors or assigns.

 

    	 	14	 

     

    

25.             
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 and
approved by the unanimous vote of the entire membership of the Board), and with respect to the Company, the prior written consent
of the Investor Group Representative.

 

26.             
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.

 

27.             
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 e-mail 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.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

[SIGNATURE PAGE FOLLOWS]

 

    	 	15	 

     

    

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

 

	EVINE LIVE INC.	 
	 	 	 
	 	 	 
	By:	/s/ Robert Rosenblatt	 
	Name:	Robert Rosenblatt	 
	Title:	Chief Executive Officer	 
	 	 	 
	 	 	 
	CLINTON GROUP, INC.	 
	 	 	 
	 	 	 
	By:	/s/ George Hall	 
	Name:	George
Hall	 
	Title:	President

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