Document:

Exhibit
10.1

 

Execution
Version

 

ESCROW
AGREEMENT

 

ESCROW
AGREEMENT (this “Agreement”) dated as of June 11, 2019, by and among TheMaven, Inc., a Delaware corporation
(the “Parent”), TheStreet, Inc., a Delaware corporation (the “Company” and, together
with the Parent, sometimes referred to individually as a “Party” and collectively as the “Parties”),
and Citibank, N.A., as escrow agent (the “Escrow Agent”).

 

RECITALS

 

WHEREAS,
Parent, TST Acquisition Co., Inc., a Delaware corporation (“Merger Sub”), and the Company have entered into
an Agreement and Plan of Merger, dated as of June 11, 2019 (as may be amended from time to time, the “Merger Agreement”),
pursuant to which, upon the terms and subject to the conditions set forth in the Merger Agreement, Merger Sub will merge with
and into the Company (the “Merger”), with the Company surviving the Merger as a Subsidiary of Parent (capitalized
terms used and not defined herein shall have the respective meanings ascribed to them in the Merger Agreement); and

 

WHEREAS,
to provide a source of payment of the Aggregate Cash Merger Consideration under the Merger Agreement, the Parties have agreed
to place in escrow certain funds, and the Escrow Agent has agreed to hold and distribute such funds in accordance with the terms
of this Escrow Agreement;

 

NOW
THEREFORE, in consideration of the foregoing and of the mutual covenants hereinafter set forth, the parties hereto agree as follows:

 

1.          
Appointment. The Parties hereby appoint the Escrow Agent as their escrow agent for the purposes set forth herein, and the
Escrow Agent hereby accepts such appointment and agrees to act as escrow agent in accordance with the terms and conditions set
forth herein.

 

2.           
Escrow Funds.

 

(a)          Simultaneous
with the execution and delivery of this Agreement, B Riley FBR, Inc. on behalf of the Parent is depositing with the Escrow Agent
$16,500,000 (the “Escrow Deposit”) in immediately available funds. The Escrow Agent hereby acknowledges receipt
of the Escrow Deposit, together with all products and proceeds thereof, including all interest, dividends, gains and other income
(collectively, the “Escrow Earnings”) earned with respect thereto (collectively, the “Escrow Funds”)
in a separate and distinct account (the “Escrow Account”), subject to the terms and conditions of this Agreement.

 

(b)         
For greater certainty, all escrow earnings shall be retained by the Escrow Agent and reinvested in the Escrow Funds and shall
become part of the Escrow Funds; and shall be disbursed as part of the Escrow Funds in accordance with the terms and conditions
of this Agreement.

 

3.           
Investment of Escrow Funds.

 

(a)          Unless
otherwise instructed in writing and executed by an authorized representative set forth in Exhibit A-1 and Exhibit A-2
by both Parties, the Escrow Agent shall hold the Escrow Funds in a “noninterest-bearing deposit account” insured
by the Federal Deposit Insurance Corporation (“FDIC”) to the applicable limits. The Escrow Funds shall at all
times remain available for distribution in accordance with Section 4 below.

 

(b)          The Escrow Agent shall send an account statement to each of the Parties on a monthly basis reflecting activity in the Escrow Account
for the preceding month.

 

    

    

    

 

(c)          The Escrow Agent shall have no responsibility for any investment losses resulting from the investment, reinvestment or liquidation
of the escrowed property, as applicable, provided that the Escrow Agent has made such investment, reinvestment or liquidation
of the escrowed property in accordance with the terms, and subject to the conditions of this Agreement. The Escrow Agent does
not have a duty nor will it undertake any duty to provide investment advice.

 

4.           
Disposition and Termination of the Escrow Funds.

 

(a)          
Escrow Funds. The Parties shall act in accordance with, and the Escrow Agent shall hold and release the Escrow Funds as
provided in, this Section 4(a) as follows:

 

(i)           
Immediately after the occurrence of the Effective Time pursuant to the Merger Agreement and upon receipt of a Joint Release Instruction
stating the same, the Escrow Agent shall disburse the Escrow Funds to the Paying Agent pursuant to the instructions set forth
on Exhibit B; provided, however that if the Merger Agreement is terminated in accordance with Article VIII
of the Merger Agreement and the Effective Time does not occur, then the Escrow Agent shall disburse the Escrow Funds to the Parent
following such termination pursuant to a Joint Release Instruction and the instructions set forth on Exhibit C.

 

(ii)          
Notwithstanding the foregoing, at any time, the Parties shall act in accordance with, and the Escrow Agent shall have the right
to release the Escrow Funds as follows:

 

		(A)	Upon
                                         receipt of a Joint Release Instruction with respect to the Escrow Funds, the Escrow Agent
                                         shall promptly, but in any event within two (2) Business Days after receipt of a Joint
                                         Release Instruction, disburse all or part of the Escrow Funds in accordance with such
                                         Joint Release Instruction.

 

		(B)	Upon
                                         receipt by the Escrow Agent of a copy of Final Determination from any Party, the Escrow
                                         Agent shall on the fifth (5th) Business Day following receipt of such determination,
                                         disburse as directed, part or all, as the case may be, of the Escrow Funds (but only
                                         to the extent funds are available in the Escrow Funds) in accordance with such Final
                                         Determination. The Escrow Agent will act on such Final Determination without further
                                         inquiry.

 

		(C)	All
                                         payments of any part of the Escrow Funds shall be made by wire transfer of immediately
                                         available funds or check as set forth in the Joint Release Instruction or Final Determination,
                                         as applicable.

 

		(D)	Any
                                         instructions setting forth, claiming, containing, objecting to, or in any way related
                                         to the transfer or distribution of any funds on deposit in any Escrow Account under the
                                         terms of this Agreement must be in writing, executed by the appropriate Party or Parties
                                         as evidenced by the signatures of the person or persons set forth on Exhibit A-1
                                         and Exhibit A-2 and delivered to the Escrow Agent either (i) by confirmed facsimile
                                         only at the fax number set forth in Section 11 below (and receipt by the Escrow
                                         Agent confirmed) or (ii) attached to an e-mail received on a Business Day from an e-mail
                                         address set forth in Section 11 (and receipt by the Escrow Agent confirmed) below.
                                         In the event a Joint Release Instruction or Final Determination is delivered to the Escrow
                                         Agent, whether in writing, by facsimile or otherwise, the Escrow Agent is authorized
                                         to seek confirmation of such instruction by telephone call back to the person or persons
                                         designated in Exhibit A-1 and/or A-2 annexed hereto (the “Call
                                         Back Authorized Individuals”), and the Escrow Agent may rely upon the confirmations
                                         of anyone purporting to be a Call Back Authorized Individual. To assure accuracy of the
                                         instructions it receives, the Escrow Agent may record such call backs. If the Escrow
                                         Agent is unable to verify the instructions, or is not satisfied with the verification
                                         it receives, it will not execute the instruction until all such issues have been resolved.
                                         The persons and telephone numbers for call backs may be changed only in writing, executed
                                         by an authorized representative of applicable Party set forth on Exhibit A-1 or
                                         Exhibit A-2, actually received and acknowledged by the Escrow Agent.

 

    2

    

    

 

(b)         
Certain Definitions.

 

(i)            
“Business Day” means any day that is not a Saturday, a Sunday or other day on which banks are not required
or authorized by law to be closed in New York, New York.

 

(ii)           
“Final Determination” means a final non-appealable order of any court of competent jurisdiction which may be
issued, together with (A) a certificate executed by an authorized representative of the prevailing Party set forth in Exhibit
A-1 or Exhibit A-2 hereto, to the effect that such order is final and non-appealable and from a court of competent
jurisdiction having proper authority and (B) the written payment instructions of the prevailing Party, executed by an authorized
representative set forth in Exhibit A-1 or Exhibit A-2 hereto, to effectuate such order.

 

(iii)          “Joint
Release Instruction” means the joint written instruction executed by an authorized representative of each of the Parent
and the Company set forth in Exhibit A-1 and Exhibit A-2 hereto, directing the Escrow Agent to disburse all or a
portion of the Escrow Funds, as applicable.

 

(iv)         
“Person” means an individual, a partnership, a corporation, a limited liability company, an association, a
joint stock company, a trust, a joint venture, an unincorporated organization or a governmental entity or any department, agency
or political subdivision thereof.

 

5.           
Escrow Agent. The Escrow Agent undertakes to perform only such duties as are expressly set forth herein, which shall be
deemed purely ministerial in nature, and no duties, including but not limited to any fiduciary duties, shall be implied. The Escrow
Agent shall neither be responsible for, nor chargeable with, knowledge of, nor have any requirements to comply with, the terms
and conditions of any other agreement, instrument or document between the Parties, in connection herewith, if any, including without
limitation the Merger Agreement, nor shall the Escrow Agent be required to determine if any Person has complied with any such
agreements, nor shall any additional obligations of the Escrow Agent be inferred from the terms of such agreements, even though
reference thereto may be made in this Agreement. Notwithstanding the terms of any other agreement between the Parties, the terms
and conditions of this Agreement will control the actions of Escrow Agent. The Escrow Agent may rely upon and shall not be liable
for acting or refraining from acting upon any Joint Release Instruction or Final Determination furnished to it hereunder and believed
by it to be genuine and to have been signed and presented by an authorized representative of the proper Party or Parties set forth
in Exhibit A-1 and Exhibit A-2. Concurrent with the execution of this Agreement, the Parties shall deliver to the Escrow Agent
authorized representative’s forms in the form of Exhibit A-1 and Exhibit A-2 attached hereto. The Escrow Agent
shall be under no duty to inquire into or investigate the validity, accuracy or content of any such document, notice, instruction
or request. The Escrow Agent shall have no duty to solicit any payments which may be due it or the Escrow Funds. In the event
that the Escrow Agent shall be uncertain as to its duties or rights hereunder or shall receive instructions, claims or demands
from any Party hereto which, in its opinion, conflict with any of the provisions of this Agreement, it shall be entitled to refrain
from taking any action and its sole obligation shall be to keep safely all property held in escrow until it shall be directed
otherwise in a Joint Release Instruction or Final Determination. The Escrow Agent may interplead all of the assets held hereunder
into a court of competent jurisdiction or may seek a declaratory judgment with respect to certain circumstances, and thereafter
be fully relieved from any and all liability or obligation with respect to such interpleaded assets or any action or nonaction
based on such declaratory judgment. The Escrow Agent may consult with legal counsel of its selection in the event of any dispute
or question as to the meaning or construction of any of the provisions hereof or its duties hereunder. The Escrow Agent will not
be liable for any action taken, suffered or omitted to be taken by it in good faith except to the extent that the Escrow Agent’s
gross negligence or willful misconduct was the cause of any direct loss to either Party. To the extent practicable, the Parties
agree to pursue any redress or recourse in connection with any dispute without making the Escrow Agent a party to the same. Anything
in this Agreement to the contrary notwithstanding, in no event shall the Escrow Agent be liable for any special, indirect, punitive,
incidental or consequential losses or damages of any kind whatsoever (including but not limited to lost profits), even if the
Escrow Agent has been advised of the likelihood of such losses or damages and regardless of the form of action.

 

    3

    

    

 

6.           
Resignation and Removal of Escrow Agent. The Escrow Agent (a) may resign and be discharged from its duties or obligations
hereunder by giving thirty (30) calendar days advance notice in writing of such resignation to the Parties specifying a date when
such resignation shall take effect or (b) may be removed, with or without cause, by the Parties acting jointly at any time by
providing written notice executed by an authorized representative set forth in Exhibits A-1 and A-2 hereto, to the
Escrow Agent. Any corporation or association into which the Escrow Agent may be merged or converted or with which it may be consolidated,
or any corporation or association to which all or substantially all of the escrow business of the Escrow Agent’s line of
business may be transferred, shall be the Escrow Agent under this Agreement without further act. The Escrow Agent’s sole
responsibility after such thirty (30) day notice period expires or after receipt of written notice of removal shall be to hold
and safeguard the Escrow Funds (without any obligation to reinvest the same) and to deliver the same (i) to a substitute or successor
escrow agent pursuant to a joint written designation from the Parties, (ii) as set forth in a Joint Release Instruction or (iii)
in accordance with the directions of a Final Determination, and, at the time of such delivery, the Escrow Agent’s obligations
hereunder shall cease and terminate. In the event the Escrow Agent resigns, if the Parties have failed to appoint a successor
escrow agent prior to the expiration of thirty (30) calendar days following receipt of the notice of resignation, the Escrow Agent
may petition any court of competent jurisdiction for the appointment of such a successor escrow agent or for other appropriate
relief, and any such resulting appointment shall be binding upon all of the parties hereto.

 

7.           
Fees and Expenses. All fees and expenses of the Escrow Agent are described in Schedule 1 attached hereto and shall
be paid by equally by the Parties. The fees agreed upon for the services to be rendered hereunder are intended as full compensation
for the Escrow Agent services as contemplated by this Agreement.

 

8.           
Indemnity. Each of the Parties shall jointly and severally indemnify, defend, and hold harmless the Escrow Agent and its
affiliates and their respective successors, assigns, directors, officers, agents and employees (the “Indemnitees”)
from and against any and all losses, damages, claims, liabilities, penalties, judgments, settlements, actions, suits, proceedings,
litigation, investigations, costs or expenses (including the reasonable fees and expenses of one outside counsel and experts and
their staffs and all expense of document location, duplication and shipment) (collectively “Escrow Agent Losses”)
arising out of or in connection with (a) the Escrow Agent’s execution and performance of this Agreement, tax reporting or
withholding, the enforcement of any rights or remedies under or in connection with this Agreement, or as may arise by reason of
any act, omission or error of the Indemnitee, except to the extent that such Escrow Agent Losses, as adjudicated by a court of
competent jurisdiction, have been caused by the fraud, gross negligence or willful misconduct of such Indemnitee, or (b) its following
any instructions or other directions from the Parent or the Company. The Parties hereby grant the Escrow Agent a lien on, right
of set-off against and security interest in, the Escrow Funds for the payment of any reasonable claim for indemnification, expenses
and amounts due hereunder. In furtherance of the foregoing, the Escrow Agent is expressly authorized and directed, but shall not
be obligated, upon prior written notice to the Parties, to charge against and withdraw from the Escrow Funds for its own account
or for the account of an indemnitee any amounts due to the Escrow Agent or to an indemnitee under this Section 8.
Notwithstanding anything to the contrary herein, the Parent and the Company agree, solely as between themselves, that any obligation
for indemnification under this Section 8 (or for reasonable fees and expenses of the Escrow Agent described in Section 7)
shall be borne by the Party or Parties determined by a court of competent jurisdiction to be responsible for causing the loss,
damage, liability, cost or expense against which the Escrow Agent is entitled to indemnification or, if no such determination
is made, then one-half by the Parent and one-half by the Company. The Parties acknowledge that the foregoing indemnities shall
survive the resignation or removal of the Escrow Agent or the termination of this Agreement.

 

    4

    

    

 

9.           
Tax Matters.

 

(a)          Parent shall be responsible for and the taxpayer on all taxes due on the interest or income earned, if any, on the Escrow Funds
for the calendar year in which such interest or income is earned. The Escrow Agent shall report any interest or income earned
on the Escrow Funds to the IRS or other taxing authority on IRS Form 1099. Prior to the date hereof, the Parties shall provide
the Escrow Agent with certified tax identification numbers by furnishing appropriate forms W-9 or W-8 as applicable and such other
forms and documents that the Escrow Agent may request.

 

(b)          The Escrow Agent shall be responsible only for income reporting to the Internal Revenue Service with respect to income earned
on the Escrow Funds. The Parties hereby represent to the Escrow Agent that no other tax reporting of any kind is required given
the underlying transaction giving rise to this Agreement. The Escrow Agent shall withhold any taxes required to be withheld by
applicable law, including but not limited to required withholding in the absence of proper tax documentation, and shall remit
such taxes to the appropriate authorities. 

 

(c)          The Escrow Agent, its affiliates, and its employees are not in the business of providing tax or legal advice to any taxpayer outside
of Citigroup, Inc. and its affiliates. This Agreement and any amendments or attachments hereto are not intended or written to
be used, and may not be used or relied upon, by any such taxpayer or for the purpose of avoiding tax penalties. Any such taxpayer
should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.

 

10.         
Covenant of Escrow Agent. The Escrow Agent hereby agrees and covenants with the Parent and the Company that it shall perform
all of its obligations under this Agreement and shall not deliver custody or possession of any of the Escrow Funds to anyone except
pursuant to the express terms of this Agreement or as otherwise required by law.

 

11.         
Notices. Except as otherwise expressly required in Section 4(a)(iv), all communications required under this Agreement shall
be in writing, in English, and shall be deemed to have been duly given if delivered (i) personally, (ii) by facsimile transmission
with written confirmation of receipt, (iii) on the day of transmission if sent by electronic mail (“e-mail”) with
a PDF attachment executed by an authorized signer of the Party/ Parties to the e-mail address given below, and written confirmation
of receipt is obtained promptly after completion of the transmission, (iv) by overnight delivery with a reputable national overnight
delivery service, or (v) by mail or by certified mail, return receipt requested, and postage prepaid. If any notice is mailed,
it shall be deemed given five Business Days after the date such notice is deposited with the United States Postal Service. If
notice is given to a Party, it shall be given at the address for such Party set forth below. It shall be the responsibility of
the Parties to notify the Escrow Agent and the other Party in writing of any name or address changes.

 

    5

    

    

 

if
to the Parent, then to:

 

TheMaven,
Inc.

1500
Fourth Avenue

Suite
200

Seattle,
WA 98101

Attn:
Legal Department

 

with
a copy (which shall not constitute notice) to:

 

Golenbock
Eiseman Assor Bell & Peskoe LLP

711
Third Avenue, 17th Floor

New
York, NY 10017

Attn:
Andrew D. Hudders, Esq.

 

or,
if to the Company, then to:

 

TheStreet,
Inc.

14
Wall Street, 15th Floor

New
York, New York 10005

Attention:
Eric Lundberg

 

with
a copy (which shall not constitute notice) to:

 

Orrick,
Herrington & Sutcliffe LLP

The
Orrick Building

405 Howard Street

San Francisco, CA 94105

Attention: Karen Dempsey; Richard Vernon Smith

 

or,
if to the Escrow Agent, then to:

 

Citibank,
N.A.

Citi
Private Bank

388
Greenwich Street, 29th Floor

New
York, NY 10013

Attn:
John P. Howard

 

Notwithstanding
the above, in the case of communications delivered to the Escrow Agent pursuant to the foregoing clause (i) through (iv) of this
Section 11, such communications shall be deemed to have been given on the date received by the Escrow Agent. In the
event that the Escrow Agent, in its sole discretion, shall determine that an emergency exists, the Escrow Agent may use such other
means of communication as the Escrow Agent deems appropriate.

 

    6

    

    

 

12.         
Termination. This Agreement shall terminate on the first to occur of (a) the distribution of all of the amounts in the
Escrow Funds in accordance with this Agreement or (b) delivery to the Escrow Agent of a written notice of termination executed
jointly by the authorized representatives set forth in Exhibits A-1 and A-2 of Parent and the Company, after which
this Agreement shall be of no further force and effect except that the provisions of Section 8 hereof shall survive termination.

 

13.         
Miscellaneous. The provisions of this Agreement may be waived, altered, amended or supplemented, in whole or in part, only
by a writing signed by all of the parties hereto. Neither this Agreement nor any right or interest hereunder may be assigned in
whole or in part by any party without the prior consent of the other parties. This Agreement shall be governed by and construed
under the laws of the State of Delaware. Each party irrevocably waives any objection on the grounds of venue, forum non-conveniens
or any similar grounds and irrevocably consents to service of process by mail or in any other manner permitted by applicable law
and consents to the jurisdiction of the courts located in the State of Delaware. The parties hereby waive any right to a trial
by jury with respect to any lawsuit or judicial proceeding arising from or relating to this Agreement. This Agreement may be executed
in multiple counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same
instrument. All signatures of the parties to this Agreement may be transmitted by facsimile or electronic transmission in portable
document format (.pdf), and such facsimile or .pdf will, for all purposes, be deemed to be the original signature of such party
whose signature it reproduces, and will be binding upon such party. If any provision of this Agreement is determined to be prohibited
or unenforceable by reason of any applicable law of a jurisdiction, then such provision shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining provisions thereof, and any such prohibition
or unenforceability in such jurisdiction shall not invalidate or render unenforceable such provisions in any other jurisdiction.
The Parties represent, warrant and covenant that each document, notice, instruction or request provided by such Party to the Escrow
Agent shall comply with applicable laws and regulations. Where, however, the conflicting provisions of any such applicable law
may be waived, they are hereby irrevocably waived by the parties hereto to the fullest extent permitted by law, to the end that
this Agreement shall be enforced as written. Except as expressly provided in Sections 7 and 8, nothing in this Agreement,
whether express or implied, shall be construed to give to any person or entity other than the Escrow Agent and the Parties any
legal or equitable right, remedy, interest or claim under or in respect of this Agreement or any funds escrowed hereunder.

 

14.         
Compliance with Court Orders. In the event that any escrow property shall be attached, garnished or levied upon by any
court order, or the delivery thereof shall be stayed or enjoined by an order of a court, or any order, judgment or decree shall
be made or entered by any court order affecting the property deposited under this Agreement, the Escrow Agent is hereby expressly
authorized, in its sole discretion, to obey and comply with all writs, orders or decrees so entered or issued, which it is advised
by legal counsel of its own choosing is binding upon it, whether with or without jurisdiction, and in the event that the Escrow
Agent obeys or complies with any such writ, order or decree it shall not be liable to any of the Parties or to any other Person,
by reason of such compliance notwithstanding such writ, order or decree be subsequently reversed, modified, annulled, set aside
or vacated.

 

15.         
Further Assurances. Following the date hereof, each party shall deliver to the other parties such further information and
documents and shall execute and deliver to the other parties such further instruments and agreements as any other party shall
reasonably request to consummate or confirm the transactions provided for herein, to accomplish the purpose hereof or to assure
to any other party the benefits hereof.

 

16.         
Assignment. No assignment of the interest of any of the Parties shall be binding upon the Escrow Agent unless and until
written notice of such assignment shall be filed with and consented to by the Escrow Agent (such consent not to be unreasonably
withheld). Any transfer or assignment of the rights, interests or obligations hereunder in violation of the terms hereof shall
be void and of no force or effect.

 

    7

    

    

 

17.         
Force Majeure. The Escrow Agent shall not incur any liability for not performing any act or fulfilling any obligation hereunder
by reason of any occurrence beyond its control (including, but not limited to, any provision of any present or future law or regulation
or any act of any governmental authority, any act of God or war or terrorism, or the unavailability of the Federal Reserve Bank
wire services or any electronic communication facility), it being understood that the Escrow Agent shall use commercially reasonable
efforts which are consistent with accepted practices in the banking industry to resume performance as soon as reasonably practicable
under the circumstances.

 

18.          Compliance
with Federal Law. To help the U.S. Government fight the funding of terrorism and money laundering activities and to comply
with Federal law requiring financial institutions to obtain, verify and record information on the source of funds deposited to
an account, the Parties agree to provide the Escrow Agent with the name, address, taxpayer identification number, and remitting
bank for all Parties depositing funds at Citibank pursuant to the terms and conditions of this Agreement. For a non-individual
person such as a business entity, a charity, a trust or other legal entity, the Escrow Agent will ask for documentation to verify
its formation and existence as a legal entity. The Escrow Agent may also ask to see financial statements, licenses, an identification
and authorization documents from individuals claiming authority to represent the entity or other relevant documentation.

 

19.          Use
of Citibank Name. No publicly distributed printed or other material in any language, including prospectuses, notices, reports,
and promotional material which mentions “Citibank” by name or the rights, powers, or duties of the Escrow Agent under
this Agreement shall be issued by any other parties hereto, or on such party’s behalf, without the prior written consent
of the Escrow Agent.

 

*   *   *   *   *

 

    8

    

    

 

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

 

	 	PARENT:	 
	 	 	 	 
	 	THEMAVEN, INC.
	 	 	 	 
	 	By:	/s/
    Douglas B. Smith
	 	 	Name: 	Douglas B. Smith
	 	 	Its:	CFO

 

Signature
Page to Escrow Agreement

 

    

    

    

 

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

 

	 	COMPANY:	 
	 	 	 	 
	 	THESTREET, INC.
	 	 	 	 
	 	By:	/s/
    Eric F. Lundberg
	 	 	Name: 	Eric F. Lundberg
	 	 	Its:	CEO and CFO

 

Signature
Page to Escrow Agreement

 

    

    

    

 

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

 

	 	ESCROW AGENT:
	 	 	 	 
	 	CITIBANK, N.A.
	 	 	 	 
	 	By:	/s/
    John P. Howard
	 	 	Name: 	John P. Howard
	 	 	Its:	Director

 

Signature
Page to Escrow Agreement

 

    

    

    

 

EXHIBIT
A-1

 

Certificate
as to Parent Authorized Signatures

 

The
specimen signatures shown below are the specimen signatures of the individuals who have been designated as authorized representatives
of the Parent and are authorized to initiate and approve transactions of all types for the escrow account or accounts established
under this Agreement, on behalf of the Parent. The below listed persons (must list at least two individuals, if applicable) have
also been designated Call Back Authorized Individuals and will be notified by Citibank N.A. upon the release of Escrow Funds
from the escrow account(s).

 

	Name
    / Title / Telephone	 	Specimen
    Signature
	 	 	 
	Douglas
    Smith	 	/s/
    Douglas Smith
	Name	 	Signature
	 	 	 
	Chief
    Financial Officer	 	 
	Title	 	 
	 	 	 
	Phone	 	Mobile
    Phone
	 	 	 
	Brian
    Hebert	 	/s/
    Brian Hebert
	Name	 	Signature
	 	 	 
	Director
    of Accounting	 	 
	Title	 	 
	 	 	 
	Phone	 	Mobile
    Phone

 

NOTE:
Actual signatures are required above. Electronic signatures, “Docusigned” signatures and/or signature fonts are not
acceptable.

 

Exhibit
to Escrow Agreement

 

    

    

    

 

EXHIBIT
A-2

 

Certificate
as to the Company Authorized Signatures

 

The
specimen signatures shown below are the specimen signatures of the individuals who have been designated as authorized representatives
of the Company and are authorized to initiate and approve transactions of all types for the escrow account or accounts established
under this Agreement, on behalf of the Company. The below listed persons (must list at least two individuals, if applicable) have
also been designated Call Back Authorized Individuals and will be notified by Citibank N.A. upon the release of Escrow Funds from
the escrow account(s).

 

	Name
    / Title / Telephone	 	Specimen
    Signature
	 	 	 
	Eric
    F. Lundberg	 	/s/
    Eric F. Lundberg
	Name	 	Signature
	 	 	 
	CEO
    and CFO	 	 
	Title	 	 
	 	 	 
	Phone	 	 
	 	 	 
	Robert
    Kondracki	 	/s/
    Robert Kondracki
	Name	 	Signature
	 	 	 
	Chief
    Accounting Officer	 	 
	Title	 	 
	 	 	 
	Phone	 	 

 

NOTE:
Actual signatures are required above. Electronic signatures, “Docusigned” signatures and/or signature fonts are not
acceptable.

 

Exhibit
to Escrow AgreementExhibit

Exhibit 10.1

Executive Officer Annual Incentive Compensation Plan

Fiscal 2020

Plan Overview
Awards under this Annual Incentive Compensation Plan (“Annual Plan”) are granted under and governed by the terms and conditions of the Vera Bradley, Inc. 2010 Equity and Incentive Plan (the “2010 Plan”), as amended.  Any term capitalized herein but not defined will have the meaning set forth in the 2010 Plan.

This Annual Plan is designed to give each eligible Participant (as defined in the attached Administrative Guidelines) an opportunity to share in the Company's success for the fiscal year ending February 1, 2020 (the "Performance Period").  The incentive is intended to be an inducement for future faithful service as well as a reward for performance. The incentive opportunity for the Performance Period is based on a percentage of each Participant's Base Salary (as defined herein) and will be earned based on two to three independent performance measures: (1) Corporate Performance (made up of net revenue and operating income), (2) Corporate Strategic Objectives, and (3) Individual Financial Goals. Collectively, these are referred to as the “FY20 Performance Measures.”

Calculation of Incentive Opportunity
The incentive opportunity for each Participant is determined based on a percentage of each Participant's Base Salary (as defined below) based upon the Participant’s level:
	
				
	 
	Incentive Opportunity as a Percentage of Base Salary

	Participant Level
	Threshold
	Target
	Excellence

	Chief Executive Officer
	25%
	100%
	200%

	Functional Management 5-2 (Executive Officer)
	15%
	40%
	80%

“Base Salary” is defined as the Participant's gross base salary (before taxes and deductions) paid by the Company to the Participant during the Performance Period.

Each Participant will have the opportunity to earn the incentive set forth above based on the level of achievement against the FY20 Performance Measures.  The applicability and weighting of the FY20 Performance Measures relative to the total incentive opportunity is also based upon the Participant’s level as follows:

	
					
	 
	As a Percentage of Total Target Incentive Opportunity Shown Above

	Corporate Performance
	Corporate Strategic Objectives 
	Individual Financial Goals

	Participant Career Ladder Level
	Net Revenue
	Operating Income

	Chief Executive Officer
	33.3%
	33.3%
	33.3%
	N/A

	Functional Management 5-2 (Executive Officer)
	25%
	25%
	25%
	25%

Corporate Performance
Payouts for Corporate Performance are based on meeting two independent financial metrics, which are net revenue and operating income. Each financial metric is weighted at 50% of the Corporate Performance goal. Assuming at least threshold levels of performance against the Corporate Performance goals are met during the Performance Period, the actual payout levels will range from 25%-200% of target. The actual amount of Corporate Performance goals is considered to be confidential information and is not included in this document, but can be obtained from Human Resources.  

	
		
	Net Revenue Performance Level
	Payout as a Percentage of the Portion of Incentive Tied to Corporate Performance*

	Threshold
	25%

	Target
	100%

	Excellence
	200%

	Operating Income Performance Level
	Payout as a Percentage of the Portion of Incentive Tied to Corporate Performance*

	Threshold
	25%

	Target
	100%

	Excellence
	200%

*Payout levels are determined using linear interpolation for results falling between the three performance levels.

Corporate Strategic Objectives 
Payouts for performance against the Corporate Strategic Objectives will be based on performance against the following objectives, with underlying success measures to be provided by your manager.

SG&A Rate Reduction -Achieve consolidated SG&A rate reduction

Full Price Growth - Achieve full-price selling growth in full-line and verabradley.com

Customer Count Growth -Achieve Customer base growth

Direct Comparable Sales Growth - Achieve Direct comparable sales growth

Assuming threshold levels of performance against the Corporate Strategic Objectives are met during the Performance Period, the actual payout levels will range from 25%-200% of target.  The Compensation Committee of the Board of Directors of the Company (the “Compensation Committee”) shall determine the level of performance achieved against the Corporate Objectives in its sole discretion.
  
Individual Financial Goals
Payouts for performance against the Individual Financial Goals will be based on a Participant’s overall achievement of personal objectives, as determined by the Participant’s supervisor and approved by the Compensation Committee. Payout levels for achievement of the Individual Financial Goals range from 0%-200% of that portion of incentive tied to the Individual Financial Goals.   

Administrative Guidelines
  
		
	1.
	The CEO direct reports at an Executive Officer level and certain designated Executive Officers are eligible to participate in this Annual Plan.  Any question regarding eligibility for participation in this Annual Plan shall be resolved by the Compensation Committee, in the Committee’s sole discretion.

		
	2.
	Participation in this Annual Plan neither gives any employee the right to be retained as an employee nor limits the Company’s right to discharge or discipline any employee.

		
	3.
	Final payout of any bonus under this Plan is subject to the final approval of the Chief Financial Officer and Vice President, Human Resources and as necessary the Compensation Committee.

		
	4.
	Participants placed on a Performance Improvement Plan or who are on Step 3 Probation within six months of when payment is made under this Plan will not be eligible for such payment.  

		
	5.
	Certification of Results.  Before any Awards under the Annual Plan are deemed earned with respect to a Performance Period, the Compensation Committee shall certify, in accordance with Section 9.5 of the 2010 Plan, in writing (i) that the performance goals have been met for the Performance Period, and (ii) the calculation of "Operating Income" and "Net Revenue" for the Performance Period.

		
	a.
	Definition of "Operating Income".  For purposes of this Annual Plan, the term "Operating Income" means, with respect to the Performance Period related to any Awards, the Company's consolidated operating income, as determined in accordance with U.S. GAAP, adjusted to exclude the effects, as shown on the financial statements furnished as part of Form 8-K (announcing the Company's fiscal year-end financial results) for any fiscal year of the Company ending with or within the Performance Period, of (i) any acquisition during the Performance Period, including the amortization expense of intangible assets acquired during the Performance Period, (ii) material charges or income arising from litigation, (iii) corporate restructuring, asset impairment, or other special charges, and (iv) cumulative effect of changes to U.S. GAAP accounting.

		
	b.
	Definition of "Net Revenue".  For purposes of this Annual Plan, the term "Net Revenue" means, with respect to the Performance Period related to any Awards, the Company's consolidated net revenue, as determined in accordance with U.S. GAAP.  

		
	6.
	Except as provided herein, (a) no Participant will be entitled to an incentive payment under the Plan unless the Participant is employed by the Company or an Affiliate in an eligible position on the day the incentive payment is made, and (b) a Participant who separates from Service for any reason prior to the date of payment of such incentive will not be entitled to a prorated award, unless otherwise required by applicable state law. By way of clarification, should a Participant separate from Service and be rehired within the same Performance Period, the Participant shall not be given credit for prior periods Service. Notwithstanding the preceding provisions, the following provisions will apply if, during the Performance Period (or after the Performance Period and prior to the date of payment), you cease providing Services due to death, Disability or Retirement (and provided that you have not otherwise engaged in an act that would constitute Cause):

		
	i.
	Death or Disability: In the event a Participant's Service terminates as a result of death or Disability prior to the date on which the incentive payment is made, the outstanding Award shall be treated as earned at the actual level for both the Company performance and at the target level for individual performance with any such earned Awards becoming fully vested and paid out as provided in section 8, below.

		
	ii.
	Retirement: In   the   event   a   Participant's Service   with   the   Company terminates as a result of Retirement during the Performance Period, the outstanding Award shall be earned based on the actual Company performance level obtained (determined at the end of the Performance Period) and target individual performance level, with any such earned Awards becoming fully vested and paid out as provided in section 8, below.

		
	7.
	Notwithstanding anything to the contrary in this Annual Plan, in the event of a Change in Control of the Company during the Performance Period, then the outstanding Award shall be treated as earned at the target level, but prorated based on the number of full fiscal months (in which the Participant provided Service throughout such month) during the Performance Period, with any such earned Awards becoming fully vested and paid out on a as soon as practicable (but not later than 30 calendar days) following the Change in Control.  For purposes of this Annual Plan, the term "Change in Control" shall mean the occurrence of any one or more of the following: (a) the acquisition of ownership, directly or indirectly, beneficially or of record, by any Person or group (within the meaning of the Exchange Act and the rules of the Securities and Exchange Commission as in effect on the date of this Award), other than (i) Barbara Baekgaard, Patricia Miller, Michael Ray and 

Kim Colby and their respective heirs and descendants and any trust established for the benefit of such Persons, (ii) the Company or a corporation owned directly or indirectly by the shareholders of the Company in substantially the same proportions as their ownership of stock of the Company, or (iii) any employee benefit plan (or related trust) sponsored or maintained by the Company or any Affiliate, of securities of the Company representing more than twenty-five percent (25%) of the combined voting power of the Company's then outstanding securities; (b) the occupation of a majority of the seats (other than vacant seats) on the Board by Persons who were neither (i) nominated by the Board nor (ii) appointed by directors so nominated; or (c) the consummation of (i) an agreement for the sale or disposition of all or substantially all of the Company's assets, or (ii) a merger, consolidation or reorganization of the Company with or involving any other corporation, other than a merger, consolidation or reorganization that results in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) at least fifty percent (50%) of the combined voting power of the voting securities of the Company (or such surviving entity) outstanding immediately after such merger, consolidation or reorganization.

		
	8.
	All Participants will receive an award that is prorated based on Base Salary earned during the Performance Period. 

		
	9.
	In the event that a Participant joins the Company at any time during the final three fiscal months of the Performance Period, such participant will not be eligible to participate in this Plan.

		
	10.
	All goal attainment calculations will follow normal rounding guidelines (i.e., 93.1% to 93.49% = 93%; 93.5% to 93.9% = 94%).  

		
	11.
	Payments under the Annual Plan will be paid in cash after the end of the Company's fiscal tax year but no later than the 15th day of the third month following the Company's fiscal tax year on which the annual incentives under this Annual Plan are based.  

		
	12.
	The Company shall have the power and the right to deduct or withhold an amount sufficient to satisfy federal, state, and local taxes (including FICA obligations), domestic or foreign, and other deductions required to be withheld by law with respect to this Award.

		
	13.
	Record keeping and computation required by this Annual Plan will be subject to review by third-party auditors, and by the Compensation Committee.

		
	14.
	Interpretations, determinations, and actions regarding plan administration shall be made by the Compensation Committee.  Any such determinations and any interpretation, rule, or decision under the Annual Plan or in carrying out or administering the Annual Plan, is final and binding for all purposes and upon all interested persons, their heirs, and personal representatives.  The Company or its designee may rely conclusively on determinations made by the Company and its auditors to determine related information for purposes of administration of the Annual Plan, whether such information is determined by the Company, its auditors, or a third-party vendor engaged to provide such information to the Company.  

		
	15.
	While it is the intent of the Company to continue this Annual Plan as stated herein, the Company reserves the right to amend or discontinue the plan at any time in its sole discretion.

		
	16.
	No Participant can assign, encumber or transfer any of his or her rights and interests under the Award described in this document, except, in the event of his or her death, by will or the laws of descent and distribution.

		
	17.
	The rights granted under this document are in all respects subject to the provisions of the 2010 Plan to the same extent and with the same effect as if they were set forth fully therein.  If the terms of this document or the Award conflict with the terms of the 2010 Plan, the 2010 Plan will control.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00297-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00297-of-00352.parquet"}]]