Document:

Exhibit 10.4

 

June
27, 2012

 

Tile Shop Holdings, Inc.

1400 Carlson Parkway

Plymouth, MN 55441

 

JWC Acquisition Corp.

Bay Colony Corporate Center

North Entrance

1000 Winter Street, Suite 4300

Waltham, MA 02451

 

		Re:	Section 2.4(e) Agreement

 

Ladies and Gentlemen:

 

This letter agreement (this “Agreement”)
relates to the shares of Buyer Common Stock held by JWC Acquisition, LLC (“Sponsor”), the warrants to purchase
an aggregate of 5,333,333 shares of Buyer Common Stock held by the members of the Sponsor, the obligation of the members of the
Sponsor to purchase the Additional Closing Shares in connection with the transactions contemplated by the Contribution and Merger
Agreement by and among The Tile Shop, LLC, ILTS, LLC, Tile Shop, Inc., JWTS, Inc. and each of the other Members of the Company,
Nabron International, Inc., Holdings, TS Merger Subsidiary, Inc. and Peter Jacullo, in his capacity as Sellers’ Representative,
as amended from time to time (the “Definitive Agreement”). Capitalized terms used but not otherwise defined
herein shall have their respective meanings set forth in the Definitive Agreement.

 

This Agreement is being executed and delivered
simultaneously with the execution and delivery of the Definitive Agreement. In
the event the Definitive Agreement is terminated prior to the Closing Date, this Agreement shall terminate without any further
action by any of the parties hereto and no party shall have any liability or further obligation to any other party to this Agreement.

 

In order to induce the Sellers and Holdings
to enter into the Definitive Agreement and to consummate the transactions contemplated by the Definitive Agreement, the undersigned
hereby agrees to each of the following:

 

(i)          immediately
prior to the Effective Time, the Sponsor shall distribute to its members all of the shares of Buyer Common Stock held by the Sponsor;

 

(ii)         effective
immediately prior to the Effective Time, each of the undersigned holders of the Sponsor Warrants hereby (A) waives its rights and
the rights of its permitted transferees under Section 2.5 of the Warrant Agreement to exercise the Sponsor Warrants for cash and
agrees that such Warrants, may only be exercised on a cashless basis pursuant to Subsection 3.3.1(c) of the Warrant Agreement,
(B) agrees that prior to such exercise, such person will not directly or indirectly, on his, her, or its own behalf, or on behalf
of entities, family members or trusts affiliated with or controlled by him, her or it, sell, offer to sell, contract or agree to
sell, hypothecate, pledge, grant any options or purchase or otherwise dispose of or agree to dispose of, directly or indirectly,
the Sponsor Warrant held by him, her or it, and (C) agrees that his, her or its Sponsor Warrants will be subject to redemption
after the underlying shares of Holdings Common Stock exceed $18.00 per share in the same manner that the Warrants held by persons
other than the members of the Sponsor are subject to redemption.

 

    	 

    	 

    

 

Notwithstanding the foregoing, the undersigned
holders of Sponsor Warrants may transfer the Sponsor Warrants owned by him, her or it;

 

(i)          by
gift or other transfer to a member of the undersigned’s immediate family or to a trust, corporation, partnership or limited
liability company established for estate planning purposes, the beneficiaries, stockholders, parties or member, of which are members
of the immediate family of the undersigned holder of Sponsor Warrants or a charitable organization;

 

(ii)         by
virtue of the laws of descent and distribution upon the death of the undersigned;

 

(iii)        pursuant
to a qualified domestic relations order; and

 

(iv)        to
the stockholders, parties, or members, of the undersigned or a corporation, partnership or limited liability company that is a
permitted transferee hereunder.

 

Provided that in the case of clauses (i)
through (iii) those permitted transferees and any stockholder, parties or member thereto enter into a written agreement with the
Sellers’ Representative agreeing to be bound by the waiver of rights and the transfer restrictions contained herein.

 

In the event that prior to Closing, holders
of Buyer Common Stock have exercised their rights under the Buyer’s certificate of incorporation, as amended, to cause Buyer
to redeem greater than 4,000,000 shares of Buyer Common Stock for a cash payment from the Trust Account, each of the undersigned
members of the Sponsor listed on Schedule 1 hereto hereby agrees that immediately prior to the Effective Time, he, she or
it shall purchase from Holdings, and Holdings hereby agrees to issue and sell to such members of the Sponsor, a number of shares
of Holdings Common Stock equal to their Pro Rata Portion (as defined below) of a number of shares of Holdings Common Stock equal
to the number of shares of Buyer common Stock redeemed in excess of 4,000,000 shares at a purchase price of $10 per share, payable
by such member of the Sponsor by wire transfer of immediately available funds; provided that the number of shares of Holdings Common
Stock that each of the undersigned members of Sponsor are obligated to purchase hereunder shall not exceed the number of shares
set forth opposite the name of such undersigned member of Sponsor under the heading “Maximum Number of Shares”. The
“Pro Rata Portion” for each of the undersigned members of the Sponsor listed on Schedule 1 shall be equal to (x)
the number of shares set forth opposite the name of such undersigned member of Sponsor under the heading “Maximum Number
of Shares”, divided by (y) 1,500,000. The obligation of each of the undersigned members of the Sponsor listed on Schedule 1
is several and not joint.

 

From and after the date hereof and until
the 18th month anniversary of the Closing, the undersigned hereby agree that they will not, and will cause their affiliates not
to, purchase, directly or indirectly, any Public Warrants (other than Sponsor Warrants from each other).

 

Each of the undersigned shall
cause J.W. Childs Associates, L.P. to waive any of its rights to convert any unreimbursed advances made by J.W. Childs
Associates, L.P. to the Buyer into warrants of the Buyer. 

 

    	- 2 -

    	 

    

 

The undersigned hereby represents and warrants
that the undersigned has full power and authority to enter into this Agreement and that this Agreement constitutes the legal, valid
and binding obligation of the undersigned, enforceable in accordance with its terms. Upon request, the undersigned will execute
any additional documents necessary in connection with enforcement hereof. Any obligations of the undersigned shall be binding upon
the successors and assigns of the undersigned from the date first above written.

 

This Agreement shall be governed by and
construed and enforced in accordance with the laws of the State of New York, without giving effect to conflicts of law principles
that would result in the application of the substantive laws of another jurisdiction. The parties hereto (i) agree that any action,
proceeding, claim or dispute arising out of, or relating in any way to, this Agreement shall be brought and enforced in the courts
of New York City, in the State of New York, and irrevocably submits to such jurisdiction and venue, which jurisdiction and venue
shall be exclusive and (ii) waives any objection to such exclusive jurisdiction and venue or that such courts represent an inconvenient
forum.

 

This Agreement may not be amended prior
to the Closing Date without the written consent of Holdings and the undersigned.

    	 

    	 

    
 

	 	Very truly yours,
	 	 
	 	JWC ACQUISITION, LLC
	 	 
	 	By:	/s/ Adam L. Suttin
	 	Name:	Adam L. Suttin
	 	Title:	President

  

	 	MEMBERS OF SPONSOR
	 	 
	 	/s/ John W. Childs
	 	John W. Childs

 

	 	/s/ Adam L. Suttin
	 	Adam L. Suttin

 

	 	/s/ Arthur P. Byrne
	 	Arthur P. Byrne

 

	 	/s/ David A. Fiorentino
	 	David A. Fiorentino

 

 

[Signature Page
to Section 2.4(e) Agreement] 

 

    	 

    	 

    

 

	 	/s/ Raymond B. Rudy
	 	Raymond B. Rudy

 

	 	/s/ Jeffrey J. Teschke
	 	Jeffrey J. Teschke

 

	 	/s/ William E. Watts
	 	William E. Watts

 

[Signature Page
to Section 2.4(c) Agreement] 

 

    	 

    	 

    
 

	 	/s/ Hemanshu Patel
	 	/s/ Hemanshu Patel
	 	 
	 	SAWAYA CAPITAL PARTNERS, LLC
	 	 
	 	By:	/s/ Fuad Sawaya

 

	 	/s/ Steven G. Segal
	 	Steven G. Segal

 

 

[Signature Page to Section 2.4(e) Agreement]

 

    	 

    	 

    

 

Acknowledged and Agreed:

 

	TILE SHOP HOLDINGS, INC.	 
	 	 
	By:	/s/ Robert A. Rucker	 
	Name:	Robert A. Rucker	 
	Title:	President	 
	 	 	 
	JWC ACQUISITION CORP.	 
	 	 	 
	By:	/s/ Adam L. Suttin	 
	Name:	Adam L. Suttin	 
	Title:	President	 

 

 

[Signature
Page to Section 2.4(e) Agreement]

 

    	 

    	 

    

 

Schedule 1

  

	Member of Sponsor	 	Maximum Number of Shares	 
	John W. Childs	 	 	1,080,000	 
	Adam L. Suttin	 	 	110,000	 
	Arthur P. Byrne	 	 	100,000	 
	David A. Fiorentino	 	 	10,000	 
	Raymond Rudy	 	 	20,000	 
	Jeffrey J. Teschke	 	 	10,000	 
	William E. Watts	 	 	100,000	 
	Sawaya Capital Partners, LLC	 	 	50,000	 
	Steven G. Segal	 	 	20,000	 
	 	 	 	 	 
	 	 	 	1,500,000	 

 

    	A-1-Exhibit 10.5

 

June
27, 2012
 
 

 

JWC Warrant Holdings, LLC

Bay Colony Corporate Center

North Entrance

1000 Winter Street, Suite 4300

Waltham, MA 02451

 

		Re:	Warrant Purchase Agreement

 

Ladies and Gentlemen:

 

This letter agreement
(this “Agreement”) relates to the purchase by the undersigned of certain warrants exercisable for shares of
Buyer Common Stock that, upon the consummation of the Merger, will become exercisable for shares of Holdings Common Stock, held
by JWC Warrant Holdings, LLC in connection with the transactions contemplated by the Contribution and Merger Agreement by and among
JWC Acquisition Corp. (“Buyer”), The Tile Shop, LLC, ILTS, LLC, The Tile Shop, Inc., JWTS, Inc. and each of
the other Members of the Company, Nabron International, Inc., Holdings, TS Merger Subsidiary, Inc. and Peter Jacullo, in his capacity
as Sellers’ Representative, as amended from time to time (the “Definitive Agreement”). Capitalized terms
used but not otherwise defined herein shall have their respective meanings set forth in the Definitive Agreement.

 

This Agreement is being
executed and delivered simultaneously with the execution and delivery of the Definitive Agreement and shall become effective as
of the Closing Date. In the event the Definitive Agreement is terminated prior to the Closing Date, this Agreement shall terminate
without any further action by any of the parties hereto and no party shall have any liability or further obligation to any other
party to this Agreement.

 

In order to induce
Buyer to enter into the Definitive Agreement and to consummate the transactions contemplated by the Definitive Agreement, each
of the undersigned hereby agrees that, immediately prior to the Effective Time, he, she or it shall purchase from JWC Warrant Holdings,
LLC the number of Warrants set forth opposite such undersigned’s name on the signature pages hereof for an aggregate purchase
price set forth adjacent to the number of such Warrants, payable by the undersigned to JWC Warrant Holdings, LLC by wire transfer
of immediately available funds. The obligation of each of the undersigned is several and not joint.

 

The Warrants purchased
by the undersigned hereby shall remain subject to the terms and conditions of the Warrant Agreement in all respects.

 

Each of the undersigned
hereby represents and warrants that the undersigned has full power and authority to enter into this Agreement and that this Agreement
constitutes the legal, valid and binding obligation of the undersigned, enforceable in accordance with its terms. Upon request,
the undersigned will execute any additional documents necessary in connection with enforcement hereof. Any obligations of the undersigned
shall be binding upon the successors and assigns of the undersigned from the date first above written.

 

    	 

    	 

    

 

JWC Warrant Holdings,
LLC hereby represents and warrants that it is the owner of warrants to purchase 4,466,885 shares of Buyer Common Stock, which JWC
Warrant Holdings, LLC acquired from public warrantholders of Buyer for an aggregate purchase price of $3,419,327.00 (the “Warrants”).
JWC Warrant Holdings, LLC further represents and warrants that: (a) it is duly organized, validly existing and in good standing
under the laws of the jurisdiction of its organization; (b) it has full power and authority to execute and deliver this Agreement
and to perform its obligations hereunder; (c) this Agreement constitutes its valid and legally binding obligation, enforceable
in accordance with its terms and conditions; (d) no notice or filing with, or authorization, consent or approval of, any government
or governmental agency is required in order to consummate the sale of the Warrants contemplated by this Agreement; (e) the execution,
delivery, and performance of this Agreement has been duly authorized by its members; (f) neither that the execution and delivery
of this Agreement nor the consummation of the sale of the Warrants hereunder will violate any statute, regulation, rule, injunction,
judgment, order, decree, ruling, charge or other restriction of any government, governmental agency, or court to which it is subject
or any provision of its governing documents, or conflict with, result in a breach of, constitute a default under, result in the
acceleration of, create in any party the right to accelerate, terminate, modify, or cancel, or require any notice under any agreement,
contract, lease, license, instrument, or any other arrangement to which is a party or by which it is bound, or to which any of
its assets are subject, or result in the imposition or creation of a lien upon or with respect to its membership interests; (g)
it holds of record and beneficially all of the Warrants, free and clear of any restrictions on transfer (other than any restrictions
under the Securities Act and state securities laws), taxes, liens, options, warrants, purchase rights, contracts, commitments,
equities, claims, and demands; and (h) it is not a party to any option, warrant, purchase, right, or other contract or commitment
other than this Agreement that could require it to sell, transfer, or otherwise dispose of the Warrants.

 

This Agreement shall
be governed by and construed and enforced in accordance with the laws of the State of New York, without giving effect to conflicts
of law principles that would result in the application of the substantive laws of another jurisdiction. The parties hereto (i)
agree that any action, proceeding, claim or dispute arising out of, or relating in any way to, this Agreement shall be brought
and enforced in the courts of New York City, in the State of New York, and irrevocably submits to such jurisdiction and venue,
which jurisdiction and venue shall be exclusive and (ii) waives any objection to such exclusive jurisdiction and venue or that
such courts represent an inconvenient forum. This Agreement may be executed in one or more counterparts (including by facsimile
or other electronic means), each of which shall constitutes one and the same investment.

 

This Agreement may
not be amended prior to the Closing Date without the written consent of each of the undersigned and of JWC Warrant Holdings, LLC.

 

    	- 2 -

    	 

    

 

Very truly yours,

	Name and Signature of Warrant Purchasers	 	No. of Warrants	 	Purchase Price	 
	 	 	 	 	 	 
	Nabron International, Inc.	 	2,390,342	 	$1,829,767.51	 
	 	 	 	 	 	 
	By:	/s/ Raymond Long Sing Tang, /s/ Louise Mary Garbarino	 	 	 	 	 
	Name:	Raymond Long Sing Tang / Louise Mary Garbarino 	 	 	 	 	 
	Title:	Authorized Signatures	 	 	 	 	 
	 	 	 	 	 	 
	The Tile Shop, Inc.	 	1,204,528	 	$922,046.37	 
	 	 	 	 	 	 
	By:	/s/ Robert A. Rucker	 	 	 	 	 
	Name:  Robert A. Rucker	 	 	 	 	 
	Title:   CEO	 	 	 	 	 
	 	 	 	 	 	 
	JWTS, INC.	 	750,310	 	$574,349.96	 
	 	 	 	 	 	 
	By:	/s/ Peter J. Jacullo, III	 	 	 	 	 
	Name:  Peter J. Jacullo, III	 	 	 	 	 
	Title:  President	 	 	 	 	 
	 	 	 	 	 	 
	By:	/s/ Peter H. Kamin	 	 	 	 	 
	Name:  Peter H. Kamin,	 	37,005	 	$28,326.72	 
	as Trustee of the Peter H. Kamin Revocable	 	 	 	 	 
	Trust	 	 	 	 	 
	 	 	 	 	 	 
	By:	/s/ Peter H. Kamin	,	22,200	 	$16,993.73	 
	Name:  Peter H. Kamin,	 	 	 	 	 
	as Trustee of the Peter H. Kamin Childrens’	 	 	 	 	 
	Trust	 	 	 	 	 
	 	 	 	 	 	 
	By:	/s/ Peter H. Kamin	 	13,304	 	$10,183.99	 
	Name:  Peter H. Kamin as Trustee under the	 	 	 	 	 
	Peter H. Kamin GST	 	 	 	 	 

 

[Signature Page to Warrant Purchase Agreement]

 

    	 

    	 

    

 

	3K LIMITED PARTNERSHIP	 	 	 	 	 
	 	 	 	 	 	 
	By:	/s/ Peter H. Kamin	 	14,799	 	$11,328.39	 
	Name: 	Peter H. Kamin	 	 	 	 	 
	Title:	Trustee, Managing Partner 	 		 	 	 
	 	 	 	 	 	 	 
	By:
 	/s/ Todd Krasnow	 	 28,103	 	 $21,512.38	 
	Name:  	Todd Krasnow 	 	 	 	 	 
	 	 	 	 	 	 
	FAMILY OFFICE INVESTORS, LLC	 	2,962	 	$2,267.36	 
	 	 	 	 	 	 
	By:	/s/ Mark Riser	 	 	 	 	 
	Name:  	Mark Riser		 	 	 	 
	Title: 	Sole Member  	 	 	 	 	 
	 	 	 	 	 	 
		/s/ Warren W. Garden	 	 	2,220	 	$1,699.37	 
	Warren W. Garden	 	 	 	 	 
	 	 	 	 	 	 
		/s/ Irene P. McCarthy	 	 	 	 	 	 
	Irene P. McCarthy	 	 	 	 	 
	 	 	 	 	 	 
	 	 	1,112	 	$851.22	 
	 	 	 	 	 	 
		/s/ Robert McCarthy	 	 	 	 	 	 
	Robert McCarthy	 	 	 	 	 

  

[Signature Page to Warrant Purchase Agreement]

 

    	 

    	 

    

 

Acknowledged and Agreed:

	JWC WARRANT HOLDINGS, LLC	 
	 	 
	By:	/s/ Adam L. Suttin	 
	 	Name: Adam L. Suttin	 
	 	Title: President	 

 

[Signature Page to Warrant Purchase Agreement]

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