Document:

Exhibit

Exhibit 4.2

 
 

	
	
	 

 

BRIXMOR OPERATING PARTNERSHIP LP
AS ISSUER
AND
THE BANK OF NEW YORK MELLON
AS TRUSTEE
                
FOURTH SUPPLEMENTAL INDENTURE
Dated as of August 24, 2016
                
$500,000,000 3.250% SENIOR NOTES DUE 2023
                

SUPPLEMENT TO INDENTURE
DATED AS OF JANUARY 21, 2015, BETWEEN
BRIXMOR OPERATING PARTNERSHIP LP (AS ISSUER)
AND
THE BANK OF NEW YORK MELLON (AS TRUSTEE)
	
	
	 

 

     FOURTH SUPPLEMENTAL INDENTURE, dated as of August 24, 2016 (this “Fourth Supplemental Indenture”), between BRIXMOR OPERATING PARTNERSHIP LP, a Delaware limited partnership (the “Operating Partnership”), having its principal executive office located at 450 Lexington Avenue, New York, New York 10017, and THE BANK OF NEW YORK MELLON (the “Trustee”), which supplements that certain Indenture, dated as of January 21, 2015, by and between the Operating Partnership and the Trustee (the “Base Indenture,” and together with this Fourth Supplemental Indenture, the “Indenture”).
RECITALS
WHEREAS, the Operating Partnership has duly authorized the execution and delivery of the Base Indenture to the Trustee to provide for the issuance from time to time for its lawful purposes of debt securities evidencing the Operating Partnership’s debentures, notes or other evidences of indebtedness.
WHEREAS, Section 301 of the Base Indenture provides that by means of a supplemental indenture the Operating Partnership may create one or more series of the Operating Partnership’s debt securities and establish the form, terms and provisions thereof.
WHEREAS, the Operating Partnership intends by this Fourth Supplemental Indenture to (i) create a series of the Operating Partnership’s debt securities, in an initial aggregate principal amount equal to $500,000,000, entitled 3.250% Senior Notes due 2023 (the “Notes”) and (ii) establish the form and the terms and provisions of the Notes.
WHEREAS, the consent of Holders to the execution and delivery of this Fourth Supplemental Indenture is not required, and all other actions required to be taken under the Base Indenture with respect to this Fourth Supplemental Indenture have been taken.
NOW, THEREFORE IT IS AGREED:

ARTICLE ONE
DEFINITIONS, CREATION, FORM AND TERMS AND CONDITIONS OF THE DEBT SECURITIES

Section 1.1     Definitions.  Capitalized terms used but not otherwise defined in this Fourth Supplemental Indenture shall have the meanings ascribed to them in the Base Indenture.  In addition, the following terms shall have the following meanings to be equally applicable to both the singular and the plural forms of the terms set forth below:

“Adjusted Treasury Rate” means, with respect to any Redemption Date, the rate per year equal to the arithmetic mean of the yields under the respective heading “Week Ending” published in the most recent Statistical Release under the caption “Treasury Constant Maturities” for the maturity (rounded to the nearest month) corresponding to the remaining life to the Par Call Date of the Notes as of the Redemption Date. If no maturity exactly corresponds to such maturity, yields for the two published maturities most closely corresponding to such maturity shall be calculated pursuant to the immediately preceding sentence and the Adjusted Treasury Rate shall be interpolated or extrapolated from such yields on a straight-line basis, rounding in each of such relevant periods to the nearest month. For the purposes of calculating the Adjusted Treasury Rate, the most recent Statistical Release published at least two Business Days prior to the redemption date shall be used.
“Annual Debt Service Charge” means, for any period, the interest expense of the Operating Partnership and its Subsidiaries for such period, determined on a consolidated basis in accordance with GAAP.
“Consolidated EBITDA” for any period means Consolidated Net Income of the Operating Partnership and its Subsidiaries for such period, plus amounts which have been deducted and minus amounts which have been added for, without duplication: (1) interest expense on Debt; (2) provision for taxes based on income; (3) amortization of debt discount, premium and deferred financing costs; (4) the income or expense attributable to transactions involving derivative instruments that do not qualify for hedge accounting in accordance with GAAP; (5) impairment losses and gains on sales or other dispositions of properties and other investments; (6) depreciation and amortization; (7) net amount of extraordinary items or non-recurring items, as may be determined by the Operating Partnership in good faith; (8) amortization of deferred charges; (9) gains or losses on early extinguishment of debt; and (10) noncontrolling interests, all determined on a consolidated basis in accordance with GAAP.
“Consolidated Net Income” for any period means the amount of net income (or loss) of the Operating Partnership and its Subsidiaries for such period determined on a consolidated basis in accordance with GAAP.

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“Debt” means, with respect to any person, any:
		
	(i)
	indebtedness of such person in respect of borrowed money or evidenced by bonds, notes, debentures or similar instruments;

		
	(ii)
	indebtedness secured by any Lien on any property or asset owned by such person, but only to the extent of the lesser of (a) the amount of indebtedness so secured and (b) the fair market value (determined in good faith by the Operating Partnership) of the property subject to such Lien;

		
	(iii)
	reimbursement obligations, contingent or otherwise, in connection with any letters of credit actually issued or amounts representing the balance deferred and unpaid of the purchase price of any property except any such balance that constitutes an accrued expense or trade payable; or

		
	(iv)
	any lease of property by such person as lessee which is required to be reflected on such person’s balance sheet as a capitalized lease in accordance with GAAP;

in the case of items of indebtedness under (i) through (iii) above to the extent that any such items (other than letters of credit) would appear as liabilities on such person’s balance sheet in accordance with GAAP; provided, however, that the term “Debt” will (1) include, to the extent not otherwise included, any non-contingent  obligation of such person to be liable for, or to pay, as obligor, guarantor or otherwise (other than for purposes of collection in the ordinary course of business), Debt of the types referred to above of another person, other than obligations to be liable for the Debt of another person solely as a result of non-recourse carveouts (it being understood that Debt shall be deemed to be incurred by such person whenever such person shall create, assume, guarantee or otherwise become liable in respect thereof) and (2) exclude any such indebtedness (or obligation referenced in clause (1) above) that has been the subject of an “in substance” defeasance in accordance with GAAP and Intercompany Indebtedness that is subordinate in right of payment to the Notes (or an obligation to be liable for, or to pay, Intercompany Indebtedness that is subordinate in right of payment to the Notes).
“Depository” means The Depository Trust Company.
“GAAP” means United States generally accepted accounting principles as in effect on the date of any required calculation or determination.
“Indenture” means the Base Indenture as supplemented by this Fourth Supplemental Indenture and as further amended, modified or supplemented with respect to the Notes pursuant to the provisions of the Base Indenture.
“Intercompany Indebtedness” means Debt to which the only parties are the Operating Partnership and any of its Subsidiaries; provided, however, that with respect to any such Debt of which the Operating Partnership is the borrower, such Debt is subordinate in right of payment to the Notes. 
“Lien” means, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge, hypothecation, encumbrance, charge or security interest in, on or of such asset, (b) the interest of a vendor or a lessor under any conditional sale agreement, capital lease or title retention agreement (or any financing lease having substantially the same economic effect as any of the foregoing) relating to such asset and (c) in the case of securities, any purchase option, call or similar right of a third party with respect to such securities.
“Maturity Date” means September 15, 2023.
“Par Call Date” means July 15, 2023 (the date that is two months prior to the Maturity Date).
“Quotation Agent” means an independent investment banking institution of national standing appointed by the Operating Partnership from time to time.
“Redemption Date” means, with respect to any Note or portion thereof to be redeemed in accordance with the provisions of Section 1.4(d) hereof, the date fixed for such redemption in accordance with the provisions of Section 1.4(d) hereof.

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“Significant Subsidiary” means any Subsidiary or group of Subsidiaries that meets either of the following conditions: (1) the Operating Partnership and its other Subsidiaries’ investments in and advances to the Subsidiary exceed 10% of the Operating Partnership’s and its Subsidiaries’ total assets consolidated (determined in accordance with GAAP) as of the end of the most recent fiscal quarter for which an annual or quarterly report has been furnished to Holders of the Notes or filed with the Commission; or (2) the Operating Partnership’s and its other Subsidiaries’ proportionate share of the total assets (after intercompany eliminations) of the Subsidiary exceeds 10% of the Operating Partnership’s and its Subsidiaries’ total assets consolidated (determined in accordance with GAAP) as of the end of the most recent fiscal quarter for which an annual or quarterly report has been furnished to Holders of the Notes or filed with the Commission.
“Statistical Release” means the statistical release designated “H.15(519)” or any successor publication which is published weekly by the Federal Reserve System and which establishes yields on actively traded United States government securities adjusted to constant maturities, or, if such statistical release is not published at the time of any determination under the Indenture, then such other reasonably comparable index designated by the Operating Partnership.
 “Subsidiary” means, with respect to the Operating Partnership or the Company, any Person (as defined in the Indenture but excluding an individual), a majority of the outstanding voting stock, partnership interests, membership interests or other equity interest, as the case may be, of which is owned or controlled, directly or indirectly, by the Operating Partnership or the Company, as the case may be, or by one or more other Subsidiaries of the Operating Partnership or the Company, as the case may be. For the purposes of this definition, “voting stock” means stock having voting power for the election of directors, trustees or managers, as the case may be, whether at all times or only so long as no senior class of stock has such voting power by reason of any contingency.
“Total Assets” means the sum of, without duplication (1) Undepreciated Real Estate Assets and (2) all other assets (excluding accounts receivable and non-real estate intangibles) of the Operating Partnership and its Subsidiaries, all determined on a consolidated basis in accordance with GAAP.
“Total Unencumbered Assets” means the sum of, without duplication, (1) those Undepreciated Real Estate Assets which are not subject to a Lien securing Debt and (2)  all other assets (excluding accounts receivable and non-real estate intangibles) of the Operating Partnership and its Subsidiaries not subject to a Lien securing Debt, all determined on a consolidated basis in accordance with GAAP; provided, however, that, in determining Total Unencumbered Assets as a percentage of outstanding Unsecured Debt for purposes of Section 2.1(d), all investments in unconsolidated limited partnerships, unconsolidated limited liability companies and other unconsolidated entities shall be excluded from Total Unencumbered Assets.
“Undepreciated Real Estate Assets” means, as of any date, the cost (original cost plus capital improvements) of real estate assets and related intangibles of the Operating Partnership and its Subsidiaries on such date, before depreciation and amortization and impairments, all determined on a consolidated basis in accordance with GAAP.
“Unsecured Debt” means Debt of the Operating Partnership or any of its Subsidiaries which is not secured by a Lien on any property or assets of the Operating Partnership or any of its Subsidiaries.
Section 1.2    Creation of Notes.  In accordance with Section 301 of the Base Indenture, the Operating Partnership hereby creates the Notes as a separate series of its debt securities, entitled “3.250% Senior Notes due 2023,” issued pursuant to the Indenture.  The Notes shall initially be limited to an aggregate principal amount equal to $500,000,000, subject to the exceptions set forth in Section 301(2) of the Base Indenture and Section 1.4(f) hereof.

Section 1.3    Form of Notes.  The Notes will be issued in the form of one or more permanent fully registered global securities (the “Global Note”) that will be deposited with, or on behalf of the Depository, and registered in the name of the Depository or its nominee, as the case may be, subject to Section 305 of the Base Indenture.  So long as the Depository, or its nominee, is the registered owner of the Global Note, the Depository or its nominee, as the case may be, will be considered the sole Holder of the Notes represented by the Global Note for all purposes under the Indenture.

Section 1.4    Terms and Provisions of Notes.  The Notes shall be governed by all of the terms and provisions of the Base Indenture, as supplemented by this Fourth Supplemental Indenture, and in particular, the following provisions shall be terms of the Notes:

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(a)Registration and Form.  The Notes shall be issuable in registered form without coupons in denominations of $2,000 principal amount and integral multiples of $1,000 in excess thereof.  Each Note shall be dated the date of its authentication and shall bear interest from the date specified on the face of the form of Note attached as Exhibit A hereto.

(b)Payment of Principal and Interest.  All payments of principal, premium, if any, and interest in respect of the Global Notes will be made by the Operating Partnership in immediately available funds to the Depository or its nominee, as the case may be, as the Holder of each of the Global Notes.  The Notes shall mature, and the unpaid principal thereon, shall be payable, on September 15, 2023 subject to the provisions of the Base Indenture.  The rate per annum at which interest shall be payable on the Notes shall be 3.250%.  Interest on the Notes will be payable semi-annually in arrears on each March 15 and September 15, commencing March 15, 2017 (each, an “Interest Payment Date”) and on the Stated Maturity as specified in this Section 1.4(b), to the Persons in whose names the Notes are registered in the Security Register applicable to the Notes at the close of business on March 1 for Interest Payment Dates of March 15 and September 1 for Interest Payment Dates of September 15 (in each case, whether or not a Business Day) (each a “Record Date”).  Interest on the Notes shall be computed on the basis of a 360-day year of twelve 30-day months.  Interest on the Notes shall accrue from August 24, 2016.

(c)Sinking Fund.  There shall be no sinking fund provided for the Notes.

(d)Redemption at the Option of the Operating Partnership.

(1)The Operating Partnership shall have the right to redeem the Notes at its option and in its sole discretion at any time or from time to time prior to the Par Call Date in whole or in part at the Redemption Price specified in the next sentence.  The redemption price (“Redemption Price”) will equal the greater of (i) 100% of the principal amount of the Notes to be redeemed and (ii) as determined by the Quotation Agent, the sum of the present values of the remaining scheduled payments of principal and interest on the Notes to be redeemed that would be due if such Notes matured on the Par Call Date but for the redemption thereof (not including any portion of such payments of interest accrued as of the Redemption Date) discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Adjusted Treasury Rate plus 30 basis points (0.30%), plus, in each case, accrued and unpaid interest thereon to the Redemption Date; provided, however, that if the Redemption Date falls after a Record Date and on or prior to the corresponding Interest Payment Date, the Operating Partnership will pay the full amount of accrued and unpaid interest, if any, on such Interest Payment Date to the Holder of record at the close of business on the corresponding Record Date (instead of the Holder surrendering its Notes for redemption).  Notwithstanding the foregoing, if the Notes are redeemed on or after the Par Call Date, the Redemption Price will be equal to 100% of the principal amount of the Notes being redeemed, plus accrued and unpaid interest thereon to, but not including, the applicable Redemption Date, subject to the foregoing proviso.  In connection with any redemption prior to the Par Call Date, the Operating Partnership shall give the Trustee written notice of the related Redemption Price promptly after the calculation thereof and the Trustee shall not be responsible for such calculation.

(2)The Operating Partnership shall not redeem the Notes pursuant to Section 1.4(d)(1) hereof on any date if the principal amount of the Notes has been accelerated, and such an acceleration has not been rescinded or annulled on or prior to such date (except in the case of an acceleration resulting from a default by the Operating Partnership in the payment of the Redemption Price with respect to the Notes to be redeemed).

(e)Payment of Notes Called for Redemption by the Operating Partnership.

(1)If notice of redemption has been given as provided in Article Eleven of the Base Indenture, the Notes or portion of Notes with respect to which such notice has been given shall become due and payable on the Redemption Date and at the place or places stated in such notice at the Redemption Price, and unless the Operating Partnership shall default in the payment of such Notes at the Redemption Price, so long as the Paying Agent holds funds sufficient to pay the Redemption Price of the Notes to be redeemed on the Redemption Date, then (a) such Notes will cease to be Outstanding on and after the Redemption Date, (b) interest on the Notes or portion of Notes so called for redemption shall cease to accrue on and after the Redemption Date, and (c) the Holders of the Notes shall have no right in respect of such Notes except the right to receive the Redemption Price thereof.  On presentation and surrender of such Notes at a place of payment in said notice specified, the said Notes or the 

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specified portions thereof shall be paid and redeemed by the Operating Partnership at the Redemption Price, together with interest accrued thereon to, but excluding, the Redemption Date.

(2)The Notes will not be convertible or exchangeable for any other security or property.

(f)Additional Issues.  The Operating Partnership may, from time to time, without the consent of the Holders of the Notes, create and issue further securities having the same terms and conditions as the Notes in all respects, except for any difference in the issue date, issue price, interest accrued prior to the issue date of the additional Notes, and, if applicable, the first Interest Payment Date and the initial interest accrual date with the same CUSIP number as the Notes so long as such additional Notes are fungible for U.S. federal income tax purposes with the previously outstanding Notes.  Additional Notes issued in this manner shall be consolidated with and shall form a single series with the previously outstanding Notes.

Section 1.5    Book-Entry Provisions.  This Section 1.5 shall apply only to the Global Notes deposited with or on behalf of the Depository.

(a)The Operating Partnership shall execute and the Trustee shall, in accordance with this Section 1.5 and Section 303 of the Base Indenture, authenticate and deliver the Global Notes that shall be registered in the name of the Depository or its nominee and shall be held by the Trustee as custodian for the Depository.

(b)Participants of the Depository shall have no rights either under the Indenture or with respect to the Global Notes.  The Depository or its nominee, as applicable, shall be treated by the Operating Partnership, the Trustee and any agent of the Operating Partnership or the Trustee as the absolute owner and Holder of each such Global Note for all purposes under the Indenture.  Notwithstanding the foregoing, nothing herein shall prevent the Operating Partnership or the Trustee from giving effect to any written certification, proxy or other authorization furnished by the Depository or its nominee, as applicable, or impair, as between the Depository and its participants, the operation of customary practices of such depository governing the exercise of the rights of an owner of a beneficial interest in the Global Notes.
ARTICLE TWO
ADDITIONAL COVENANTS FOR BENEFIT OF HOLDERS OF NOTES

In addition to the covenants set forth in the Base Indenture, the Operating Partnership hereby further covenants as follows, the following covenants being for the sole benefit of the Holders of the Notes:
Section 2.1    Limitations on Incurrence of Debt.

(a)Aggregate Debt Test.  The Operating Partnership will not, and will not permit any of its Subsidiaries to, incur any Debt if, immediately after giving effect to the incurrence of such Debt and the application of the proceeds from such Debt on a pro forma basis, the aggregate principal amount of all of the Operating Partnership’s and its Subsidiaries’ outstanding Debt (determined on a consolidated basis in accordance with GAAP) is greater than 65% of the sum of the following (without duplication): (1) the Operating Partnership’s and its Subsidiaries’ Total Assets as of the last day of the then most recently ended fiscal quarter for which financial information is available and (2) the aggregate purchase price of any real estate assets or mortgages receivable acquired, and the aggregate amount of any securities offering proceeds received (to the extent such proceeds were not used to acquire real estate assets or mortgages receivable or used to reduce Debt), by the Operating Partnership or any Subsidiary since the end of such fiscal quarter, including the proceeds obtained from the incurrence of such additional Debt.

(b)Secured Debt Test.  The Operating Partnership will not, and will not permit any of its Subsidiaries to, incur any Debt secured by any Lien on any of the Operating Partnership’s or any of its Subsidiaries’ property or assets, whether owned on the date of this Fourth Supplemental Indenture or subsequently acquired, if, immediately after giving effect to the incurrence of such Debt and the application of the proceeds from such Debt on a pro forma basis, the aggregate principal amount (determined on a consolidated basis in accordance with GAAP) of all of the Operating Partnership’s and its Subsidiaries’ outstanding Debt which is secured by a Lien on any of the Operating Partnership’s and its Subsidiaries’ property or assets is greater than 40% of the sum of (without duplication): (1) the Operating Partnership’s and its Subsidiaries’ Total Assets as of the last day of the then most recently ended fiscal quarter for which financial information is available; and (2) the aggregate purchase price of any real estate assets or 

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mortgages receivable acquired, and the aggregate amount of any securities offering proceeds received (to the extent such proceeds were not used to acquire real estate assets or mortgages receivable or used to reduce Debt), by the Operating Partnership or any of its Subsidiaries since the end of such fiscal quarter, including the proceeds obtained from the incurrence of such additional Debt.

(c)Debt Service Test.

(1)The Operating Partnership will not, and will not permit any of its Subsidiaries to, incur any Debt if the ratio of Consolidated EBITDA to Annual Debt Service Charge for the period consisting of the two consecutive fiscal quarters most recently ended for which financial information is available prior to the date on which such additional Debt is to be incurred on an annualized basis shall have been less than 1.5:1 on a pro forma basis after giving effect to the incurrence of such Debt and the application of the proceeds from such Debt (determined on a consolidated basis in accordance with GAAP), and calculated on the following assumptions:

(A)such Debt and any other Debt incurred by the Operating Partnership or any of its Subsidiaries since the first day of such two-quarter period had been incurred, and the application of the proceeds from such Debt (including to repay or retire other Debt) had occurred, on the first day of such period;

(B)the repayment or retirement of any other Debt of the Operating Partnership or any of its Subsidiaries since the first day of such two-quarter period had occurred on the first day of such period (except that, in making this computation, the amount of Debt under any revolving credit facility, line of credit or similar facility will be computed based upon the average daily balance of such Debt during such period); and

(C)in the case of any acquisition or disposition by the Operating Partnership or any of its Subsidiaries of any asset or group of assets with a fair market value in excess of $5.0 million since the first day of such two-quarter period, whether by merger, stock purchase or sale or asset purchase or sale or otherwise, such acquisition or disposition had occurred as of the first day of such period with the appropriate adjustments with respect to such acquisition or disposition being included in such pro forma calculation.

(2)If the Debt giving rise to the need to make the calculation described in Section 2.1(c)(1) or any other Debt incurred after the first day of the relevant two-quarter period bears interest at a floating rate, then, for purposes of calculating the Annual Debt Service Charge, the interest rate on such Debt will be computed on a pro forma basis as if the average daily rate which would have been in effect during the entire two-quarter period had been the applicable rate for the entire such period. For purposes of this Section 2.1(c), Debt will be deemed to be incurred by the Operating Partnership or any of its Subsidiaries whenever the Operating Partnership or any of its Subsidiaries shall create, assume, guarantee or otherwise become liable in respect thereof.

(d)Maintenance of Total Unencumbered Assets.  The Operating Partnership will not have at any time Total Unencumbered Assets of less than 150% of the aggregate principal amount of all of the Operating Partnership’s and its Subsidiaries’ outstanding Unsecured Debt determined on a consolidated basis in accordance with GAAP.

Section 2.2    Maintenance of Properties.  The Operating Partnership will cause all of its material properties used or useful in the conduct of its business or any of its Subsidiaries’ businesses to be maintained and kept in good condition, repair and working order, normal wear and tear, casualty and condemnation excepted, and supplied with all necessary equipment and cause all necessary repairs, renewals, replacements, betterments and improvements to be made, all as in the Operating Partnership’s judgment may be necessary in order for the Operating Partnership to at all times properly and advantageously conduct its business carried on in connection with such properties. The Operating Partnership will not be prevented from (1) removing permanently any property that has been condemned or suffered a casualty loss, if it is in its best interests, (2) discontinuing maintenance or operation of any property if, in its reasonable judgment, doing so is in its best interest and is not disadvantageous in any material respect to the Holders of the Notes, or (3) selling or otherwise disposing for value its properties in the ordinary course of business. 

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Section 2.3    Insurance.  The Operating Partnership will, and will cause each of its Subsidiaries to, keep in force upon all of the Operating Partnership’s and each of its Subsidiaries’ properties and operations insurance policies carried with responsible companies in such amounts and covering all such risks as is customary in the industry in which the Operating Partnership and its Subsidiaries do business in accordance with prevailing market conditions and availability.

Section 2.4    Payment of Taxes and Other Claims.  The Operating Partnership will pay or discharge or cause to be paid or discharged before it becomes delinquent: (i) all material taxes, assessments and governmental charges levied or imposed on the Operating Partnership or any of its Subsidiaries or on its or any such Subsidiary’s income, profits or property; and (ii) all material lawful claims for labor, materials and supplies that, if unpaid, might by law become a Lien upon its property or the property of its Subsidiaries; provided, however, that the Operating Partnership will not be required to pay or discharge or cause to be paid or discharged any tax, assessment, charge or claim the amount, applicability or validity of which is being contested in good faith.

Section 2.5    Covenant Defeasance and Waiver of Covenant.  The covenants set forth in Sections 2.1, Section 2.2, Section 2.3 and Section 2.4 shall be subject to covenant defeasance under Section 402(3) of the Base Indenture and subject to waiver under Section 1006 thereof.

ARTICLE THREE

[Intentionally Omitted]

ARTICLE FOUR

TRUSTEE

Section 4.1    Trustee.  The Trustee is appointed as the principal paying agent, transfer agent and registrar for the Notes and for the purposes of Section 1002 of the Base Indenture.  The Notes may be presented for payment at the Corporate Trust Office of the Trustee or at any other agency as may be appointed from time to time by the Operating Partnership in The City of New York.  The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Fourth Supplemental Indenture or the due execution hereof by the Operating Partnership.  The recitals of fact contained herein shall be taken as the statements solely of the Operating Partnership, and the Trustee assumes no responsibility for the correctness thereof.

Section 4.2    Preferential Collection of Claims.  If and when the Trustee shall be or become a creditor of the Operating Partnership (or any other obligor upon the Notes), the Trustee shall be subject to the provisions of the Trust Indenture Act regarding the collection of the claims against the Operating Partnership (or any such other obligor).  The Trustee is permitted to engage in other transactions with the Operating Partnership and its Affiliates.  If, however, it acquires any conflicting interest under the Trust Indenture Act relating to any of its duties with respect to the Notes, it must eliminate that conflict or resign, subject to its right under the Trust Indenture Act to seek a stay of its duty to resign.

Section 4.3    Calculation with Respect to the Notes. Except as explicitly specified otherwise herein with respect to the Quotation Agent, the Operating Partnership shall be responsible for making all calculations required under this Fourth Supplemental Indenture or with respect to the Notes.  The Operating Partnership will make such calculations in good faith and, absent manifest error, the Operating Partnership’s calculations will be final and binding on the Trustee and the Holders of the Notes. The Operating Partnership shall provide a schedule of its calculations to the Trustee promptly after it makes such calculations, and the Trustee shall be entitled to rely upon the accuracy of the Operating Partnership’s calculations without independent verification.  The Trustee shall forward the Operating Partnership’s calculations to any Holder of the Notes upon request.

ARTICLE FIVE

MISCELLANEOUS PROVISIONS

Section 5.1    Ratification of Base Indenture.  This Fourth Supplemental Indenture is executed and shall be construed as an indenture supplemental to the Base Indenture, and as supplemented and modified hereby, the Base Indenture is in all respects ratified and confirmed, and the Base Indenture and this Fourth Supplemental Indenture shall be read, taken and construed as one and 

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the same instrument.  In the event of a conflict between the language of this Fourth Supplemental Indenture and the Base Indenture, the language of this Fourth Supplemental Indenture shall control.

Section 5.2    Effect of Headings.  The Article and Section headings herein are for convenience only and shall not affect the construction hereof.

Section 5.3    Successors and Assigns.  All covenants and agreements in this Fourth Supplemental Indenture by the Operating Partnership shall bind its successors and assigns, whether so expressed or not.

Section 5.4    Separability Clause.  In case any one or more of the provisions contained in this Fourth Supplemental Indenture shall for any reason be held to be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

Section 5.5    Governing Law.  This Fourth Supplemental Indenture shall be governed by, and construed in accordance with, the laws of the State of New York.  This Fourth Supplemental Indenture is subject to the provisions of the Trust Indenture Act, that are required to be part of this Fourth Supplemental Indenture and shall, to the extent applicable, be governed by such provisions.

Section 5.6    Counterparts.  This Fourth Supplemental Indenture may be executed in several counterparts, each of which shall be an original and all of which shall constitute one and the same instrument.

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IN WITNESS WHEREOF, the parties hereto have caused this Fourth Supplemental Indenture to be duly executed all as of the day and year first above written.

	
						
	 
	BRIXMOR OPERATING PARTNERSHIP LP,

	 
	as Issuer

	 
	 
	 
	 
	 
	 

	 
	By:
	Brixmor OP GP LLC, its general partner
	 

	 
	 
	 
	 
	 

	 
	By:
	BPG Subsidiary Inc., its sole member
	 

	 
	 
	 

	 
	By:
	/s/ Steven F. Siegel
	 

	 
	Name:
	Steven F. Siegel
	 

	 
	Title:
	Executive Vice President,
General Counsel and Secretary

	 

	 
	 
	 

	 
	 
	 

[Signature Page to Fourth Supplemental Indenture]

	
						
	 
	THE BANK OF NEW YORK MELLON,

	 
	as Trustee, Registrar, Paying Agent and Transfer Agent

	 
	 
	 
	 
	 
	 

	 
	By:
	/s/ Francine Kincaid 

	 
	Name:
	Francine Kincaid
	 

	 
	Title:
	Vice President
	 

	 
	 
	 

	 
	 
	 

[Signature Page to Fourth Supplemental Indenture]

EXHIBIT A
Form of 3.250% Senior Note due 2023
THIS GLOBAL NOTE IS HELD BY OR ON BEHALF OF THE DEPOSITORY (AS DEFINED IN THE FOURTH SUPPLEMENTAL INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (1) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 305 OF THE BASE INDENTURE, (2) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 305 OF THE BASE INDENTURE, (3) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 309 OF THE BASE INDENTURE AND (4) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITORY WITH THE PRIOR WRITTEN CONSENT OF THE ISSUER.
UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY OR BY THE DEPOSITORY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITORY.  UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

BRIXMOR OPERATING PARTNERSHIP LP
3.250% SENIOR NOTE DUE 2023
No. [•]
CUSIP No.:    11120V AD5
ISIN:        US11120VAD55
$[•]
Brixmor Operating Partnership LP, a Delaware limited partnership (herein called the “Issuer,” which term includes any successor entity under the Indenture referred to on the reverse hereof), for value received hereby promises to pay to [Cede & Co.]*, or its registered assigns, the principal sum of [•] MILLION DOLLARS ($[•]), [or such lesser amount as is set forth in the Schedule of Increases or Decreases In the Global Note on the other side of this Note]*, on September 15, 2023 at the office or agency of the Issuer maintained for that purpose in accordance with the terms of the Indenture, in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts, and to pay interest, semi-annually on March 15 and September 15 of each year, commencing March 15, 2017, on said principal sum at said office or agency, in like coin or currency, at the rate per annum of 3.250%, from the March 15 or September 15, as the case may be, next preceding the date of this Note to which interest has been paid or duly provided for, unless no interest has been paid or duly provided for on the Notes, in which case from August 24, 2016 until payment of said principal sum has been made or duly provided for.  Unless otherwise provided in or pursuant to the Indenture, at the option of the Issuer, interest on the Notes due and payable on any Interest Payment Date may be paid by mailing a check to the address of the Person entitled thereto as such address shall appear in the Security Register or by transfer to an account maintained by the payee with a bank located in the United States of America; provided, that the Paying Agent shall have received appropriate wire transfer instructions at least five Business Days prior to the Interest Payment Date.  Any such interest which is punctually paid or duly provided for on any Interest Payment Date shall be paid to the Person in whose name this Note (or one or more Predecessor Securities) is registered as of the close of business on the March 1 or September 1 (whether or not a Business Day) next preceding such Interest Payment Date.
Reference is made to the further provisions of this Note set forth on the reverse hereof and the Indenture governing this Note.  Such further provisions shall for all purposes have the same effect as though fully set forth at this place.
This Note shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been signed manually by the Trustee or a duly authorized authenticating agent under the Indenture.

* Include only if the Note is issued in global form.

IN WITNESS WHEREOF, the Issuer has caused this Note to be duly executed.
Dated:  [•]

	
						
	 
	BRIXMOR OPERATING PARTNERSHIP LP,

	 
	as Issuer

	 
	 
	 
	 
	 
	 

	 
	By:
	Brixmor OP GP LLC, its general partner
	 
	 

	 
	 
	 
	 

	 
	By:
	BPG Subsidiary Inc., its sole member
	 
	 

	 
	 
	 

	 
	By:
	 
	 

	 
	Name:
	 

	 
	Title:
	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION
This is one of the Securities of the series designated therein referred to in the within-named Indenture.
Dated:  [•]

	
			
	 
	THE BANK OF NEW YORK MELLON, as Trustee

	 
	 

	 
	By:
	 

	 
	 
	Authorized Signatory

	 
	 

	 
	 

REVERSE SIDE OF NOTE
Brixmor Operating Partnership LP
3.250% SENIOR NOTE DUE 2023
This Note is one of a duly authorized issue of Notes of the Issuer, designated as its 3.250% Senior Notes due 2023 (herein called the “Notes”), issued under and pursuant to an Indenture dated as of January 21, 2015 (herein called the “Base Indenture”), between the Issuer and The Bank of New York Mellon, as trustee (herein called the “Trustee”), as supplemented by the Fourth Supplemental Indenture dated as of August 24, 2016 (herein called the “Fourth Supplemental Indenture,” and together with the Base Indenture, the “Indenture”), between the Issuer and the Trustee, to which Indenture and any indentures supplemental thereto reference is hereby made for a description of the rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee, the Issuer and the Holders of the Notes.  Defined terms used but not otherwise defined in this Note shall have the respective meanings ascribed thereto in the Indenture.
If an Event of Default (other than an Event of Default specified in Section 501(5), 501(6) or 501(7) of the Base Indenture) occurs and is continuing, the principal of, premium, if any, and accrued and unpaid interest on all Notes may be declared to be due and payable by either the Trustee or the Holders of at least twenty five percent (25%) in aggregate principal amount of the Notes then outstanding, and, upon said declaration the same shall be immediately due and payable.  If an Event of Default specified in Section 501(5), 501(6) or 501(7) of the Base Indenture occurs, the principal of and premium, if any, and interest accrued and unpaid on all the Notes shall be immediately and automatically due and payable without necessity of further action.
The Indenture contains provisions permitting the Issuer and the Trustee, with the consent of the Holders of not less than a majority in aggregate principal amount of the Notes at the time outstanding, to execute supplemental indentures adding any provisions to or changing in any manner or eliminating any of the provisions of the Indenture or of any supplemental indenture with respect to the Notes or modifying in any manner the rights of the Holders of the Notes, subject to exceptions set forth in Section 902 of the Base Indenture.  Subject to the provisions of the Indenture, the Holders of not less than a majority in aggregate principal amount of the Notes at the time outstanding may, on behalf of the Holders of all of the Notes, waive any past default or Event of Default with respect to the Notes, subject to exceptions set forth in the Indenture.
No reference herein to the Indenture and no provision of this Note or of the Indenture shall impair, as among the Issuer and the Holder of the Notes, the obligation of the Issuer, which is absolute and unconditional, to pay the principal of, premium, if any, on and interest on this Note at the place, at the respective times, at the rate and in the coin or currency herein and in the Indenture prescribed.
Interest on the Notes shall be computed on the basis of a 360-day year of twelve 30-day months.
The Notes are issuable in fully registered form, without coupons, in denominations of $2,000 principal amount and any multiple of $1,000.  At the office or agency of the Issuer referred to on the face hereof, and in the manner and subject to the limitations provided in the Indenture, without payment of any service charge but with payment of a sum sufficient to cover any tax, assessment or other governmental charge that may be imposed in connection with any registration of transfer or exchange of Notes, Notes may be transferred or may be exchanged for a like aggregate principal amount of Notes of any other authorized denominations.
The Issuer shall have the right to redeem the Notes under certain circumstances as set forth in Section 1.4(d) of the Fourth Supplemental Indenture and Article Eleven of Base Indenture.
The Notes are not subject to redemption through the operation of any sinking fund.
Except to the extent expressly provided in Article Sixteen of the Base Indenture, no recourse for the payment of the principal of or any premium or interest on this Note, or for any claim based hereon or otherwise in respect hereof, and no recourse under or upon any obligation, covenant or agreement of the Issuer in the Indenture or any supplemental indenture or in any Note, or because of the creation of any indebtedness represented thereby, shall be had against any past, present or future general partner, limited partner, member, employee, incorporator, controlling person, stockholder, officer, director or agent, as such, of the Issuer or the Company, or of any of the Issuer’s or the Company’s predecessors or successors, either directly or through the Issuer or the Company, under any rule of law, statute or constitutional provision or by the enforcement of any 

assessment or by any legal or equitable proceeding or otherwise, all such liability being expressly waived and released by the acceptance of the Notes by the Holders thereof and as part of the consideration for the issue of the Notes.

ASSIGNMENT FORM
To assign this Note, fill in the form below:

(I) or (we) assign and transfer this Note to: ___________________________________________________________________     
_____________________________________________________________________________________________________
(Insert assignee’s legal name)
________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________    
(Print or type assignee’s name, address and zip code)
and irrevocably appoint _______________________________ to transfer this Note on the books of the Issuer.  The agent may substitute another to act for him.

Date:  _______________________________________    
Your Signature: __________________________________________    
(Sign exactly as your name appears on the face of this Note)

Signature Guarantee*: ___________________________________________
* Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee).

SCHEDULE OF INCREASES OR DECREASES IN THE GLOBAL NOTE *
The following increases or decreases in the principal amount of this Global Note have been made:

	
									
	Date of 
Increase or Decrease
	 
	Amount of
decrease in
Principal Amount
at maturity of
this Global Note
	 
	Amount of
increase in
Principal Amount
at maturity of
this Global Note
	 
	Principal Amount
at maturity of
this Global Note
following such
decrease (or
increase)
	 
	Signature of 
authorized officer
of Trustee or
Custodian

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

________________________
*  This schedule should be included only if the Note is issued in global form.Exhibit 10.1

 

EXECUTION VERSION

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

This Executive Employment
Agreement (this “Agreement”) is entered into as of August 18, 2016 (the “Effective Date”)
by and between Robert Rosenblatt (“Executive”) and EVINE Live Inc. (“EVINE Live”, or the
“Company”).

 

1.           Effective Date;
Term. This Agreement shall become effective on the Effective Date and continue until the second (2nd) anniversary
of the Effective Date (the “Initial Term”). Thereafter, the Agreement shall renew automatically for successive
one (1) year periods unless and until either party provides written notice to the other party of the intent not to renew the
Agreement at least one hundred twenty (120) days prior to the end of the Initial Term or any subsequent one-year term (the
Initial Term and the period, if any, thereafter, during which the Executive’s employment shall continue are collectively
referred to herein as the “Term”). The expiration of the Agreement due to the Company’s notice of non-renewal
shall not be considered a termination of Executive by the Company for other than Cause. Rather, if the Initial Term or any subsequent
one-year Term expires as a result of a notice of non-renewal by either party, and if Executive remains employed with the Company
thereafter, then Executive will be an at-will employee of the Company during the period that Executive remains employed with the
Company.

 

2.           Definitions.
All defined terms in this Agreement shall have the definitions as ascribed in Exhibit A attached hereto.

 

3.           Employment
of Executive

 

(a)           Duties.
Executive shall serve as the Chief Executive Officer of EVINE Live, reporting solely and directly to the Board. In such position,
Executive shall have such duties, responsibilities and authority as is customarily associated with such position and shall have
such other duties, as may be reasonably assigned from time to time by the Board, consistent with Executive’s position and
the terms of this Agreement. The positions listed in Exhibit B attached hereto shall report solely and directly to Executive.
In addition, during the Term, the Corporate Governance and Nominating Committee will consider, evaluate, and if appropriate, nominate
Executive to serve as a member of the Board and, subject to the approval of the EVINE Live shareholders, Executive shall serve
as a member of the Board. Executive shall devote substantially all of his business time and efforts to the performance of his duties
on behalf of the Company, and will not engage in or be concerned with any other commercial duties or pursuits, either directly
or indirectly, that will materially interfere with his duties to the Company without the prior written consent of the Board. Notwithstanding
the foregoing, Executive shall be permitted to serve as a board member for the following companies: Ensignia, Retail Next and Newgistics,
provided that there are no material changes in the ownership of such entities (such that such ownership change would pose a conflict
of interest) or a material change in their relationship with EVINE Live, and such service and activities (i) do not interfere in
any material respect with the performance of his duties on behalf of the Company, and (ii) are not represented in a manner that
suggests that the Company supports or endorses the services or activities without the prior approval of the Company. Executive
shall be responsible for complying in all material respects with all policies and operating procedures of the Company applicable
to all senior executives of the Company (that are provided or made available to the Executive) in the performance of his duties
on behalf of the Company.

 

Executive’s principal
place of employment shall be based in Eden Prairie, Minnesota as of the Effective Date. Company shall pay for all reasonable costs
and expenses incurred by Executive to commute and/or relocate to Minnesota as set forth in Exhibit C attached hereto.

 

(b)           Base
Salary. Commencing on the Effective Date, EVINE Live shall pay Executive a Base Salary at an annual rate of $750,000, payable
in regular installments in accordance with the Company’s usual payroll practices. At least once per year, the Board shall
review Executive’s Base Salary for potential increase based on market trends, performance, and such internal and other considerations
as the Board may deem relevant.

 

(c)           Bonus
and Equity Incentives. Executive shall receive, to the extent the applicable performance requirements are satisfied, the bonus
and equity incentives as set forth in Exhibit D attached hereto.

 

(d)           Executive
Benefits. Executive shall be eligible to participate in the Company’s employee benefit plans (in addition to the Company’s
annual and/or long-term incentive programs) as in effect from time to time on the same basis as those benefits are generally made
available to other senior executives of EVINE Live.

 

     

     

    

  

(e)           Business
Expenses. The Company shall reimburse Executive for all reasonable business expenses incurred by Executive in the performance
of Executive’s duties hereunder subject to and in accordance with Company policies.

 

(f)           Withholding.
All payments under this Agreement shall be subject to payroll taxes and other withholdings in accordance with the Company’s
standard payroll practices and applicable law.

 

4.           Termination
of Employment.

 

(a)           Date
and Manner of Termination. Executive’s employment with the Company will terminate during the Term, and this Agreement
will terminate on the date of such termination, as follows:

 

(i) Executive’s employment
will terminate on the date of Executive’s death.

 

(ii) If Executive is subject
to a Disability, and if within ninety (90) days after EVINE Live notifies Executive in writing that it intends to terminate
Executive’s employment, Executive shall not have returned to the performance of Executive’s essential functions (either
with or without a reasonable accommodation), EVINE Live may terminate Executive’s employment, effective immediately following
the end of such 30 day period.

 

(iii) EVINE Live may terminate
Executive’s employment with or without Cause (other than as a result of Disability which is governed by subsection 4(a)(ii)).
If the termination is without Cause, then Executive’s employment will terminate on the date set forth in EVINE Live’s
written notice of termination to Executive (which may be immediate). If the termination is for Cause, then Executive’s employment
will terminate in accordance with the definition of Cause. Unless otherwise directed by EVINE Live, from and after the date of
the written notice of proposed termination (subject to all applicable cure periods), Executive shall be relieved of his duties
and responsibilities and shall be considered to be on a paid leave of absence pending any final action by EVINE Live confirming
such proposed termination, provided that during such notice period Executive shall remain a full-time employee of the Company,
and shall continue to receive his then current Base Salary and all other benefits as provided in this Agreement.

 

(iv) Executive may terminate
his employment with or without Good Reason. If the termination is without Good Reason, then Executive must provide at least thirty
(30) but no more than ninety (90) days advance written notice to EVINE Live; provided that the Company may immediately
relieve Executive of all duties and responsibilities upon receipt of such notice, and choose to terminate Executive’s employment
without further notice or delay, which termination shall not constitute a termination with Cause. If the termination is for Good
Reason, then Executive’s employment will terminate in accordance with the definition of Good Reason.

 

(b)           Relinquishment
of Positions upon Termination. Upon termination of employment for any reason, Executive shall resign all officerships, directorships
or other positions that he then holds with the Company or any of its subsidiaries.

 

5.           Payments
upon Termination.

 

(a)           Entitlement
to Accrued Benefits and Equity Awards. Upon termination of Executive’s employment for any reason, whether by the Company
or by Executive, the Company shall pay or provide Executive with the Accrued Benefits and all of Executive’s outstanding
equity awards shall be subject to the terms of the applicable award agreement and plan.

 

(b)           Severance.
Subject to the other terms and conditions of this Agreement, Execute shall be entitled to the Severance Payment set forth in Exhibit
E attached hereto.

 

6.           Limitations
on Severance Payments and Benefits. Notwithstanding any other provision of this Agreement, if any portion of the Severance
Payment or any other payment under this Agreement, or under any other agreement with or plan of the Company (in the aggregate “Total
Payments”), would constitute an “excess parachute payment,” then the Total Payments to be made to Executive
shall be reduced such that the value of the aggregate Total Payments that Executive is entitled to receive shall be One Dollar
($1) less than the maximum amount which Executive may receive without becoming subject to the tax imposed by Code Section 4999
or which the Company may pay without loss of deduction under Code Section 280G(a); provided that the foregoing reduction
in the amount of Total Payments shall not apply if the After-Tax Value to Executive of the Total Payments prior to reduction in
accordance herewith is greater than the After-Tax Value to Executive if Total Payments are reduced in accordance herewith. For
purposes of this Agreement, the terms “excess parachute payment” and “parachute payments” shall have the
meanings assigned to them in Code Section 280G, and such “parachute payments” shall be valued as provided therein.
Present value for purposes of this Agreement shall be calculated in accordance with Code Section 1274(b)(2). For purposes
of this section, the value of any noncash benefits or any deferred payment or benefit shall be determined by EVINE Live’s
independent auditors in accordance with the principles of Code Sections 280G(d)(3) and (4), which determination shall be evidenced
in a certificate of such auditors addressed to EVINE Live. For purposes of determining the After-Tax Value of Total Payments, Executive
shall be deemed to pay federal income taxes and employment taxes at the highest marginal rate of federal income and employment
taxation in the calendar year in which the Severance Payment is to be made and state and local income taxes at the highest marginal
rates of taxation in the state and locality of Executive’s domicile for income tax purposes on the date the Severance Payment
is to be made, net of the maximum reduction in federal income taxes that may be obtained from deduction of such state and local
taxes. If the provisions of Code Sections 280G and 4999 are repealed without succession, then this Section 6 shall be
of no further force or effect. The provisions of this Section 6 shall override the provisions of Section 12(e) of the Company’s
2011 Omnibus Incentive Plan.

 

    	 	2	 

     

    

  

7.           Covenants
by Executive.

 

(a)          Ownership
Rights. In the course of his employment with the Company, Executive may be creating, designing, drafting, developing, or adding
to the Company’s trade secrets, inventions, or copyrights. Executive shall promptly communicate all such work product to
the Company.

 

(i) Inventions.
Any design, improvement, discovery, computer program, software development, know how, product or service idea, whether or not patentable
or subject to copyright protection, developed by Executive during his period of employment with the Company shall be considered
a “Company Invention” that belongs to the Company if it: (A) involved the use of working time; (B) involved
the use of Company equipment, supplies, facilities, or trade secrets; (C) at the time conceived or first reduced to practice,
related to the Company’s current or planned business activities; or (D) resulted from work performed for the Company
(collectively, “Company Inventions”). Executive assigns and agrees to assign to the Company Executive’s
entire right, title, and interest in all Company Inventions and any patent rights arising therefrom.

 

(ii) Copyrights.
Any material written, created, designed, discovered, or drafted by Executive for the Company or connected to Executive’s
employment with the Company shall be considered a work for hire and the property of the Company. With respect to all intellectual
property that is first created and prepared by Executive that is not covered by the definition of a “work made for hire”
under 17 U.S.C. § 101 of the U.S. Copyright Act of 1976, such that Executive would be regarded as the copyright author and
owner, Executive hereby assigns and agrees to assign to the Company Executive’s entire right, title, and interest in and
to such works, including all copyrights therein.

 

(iii) Trade Secrets.
Any trade secret (as defined by law) developed by Executive during his period of employment with the Company shall belong to the
Company if it: (A) involved the use of working time; (B) involved the use of Company equipment, supplies, facilities,
trade secrets or Protected Information; (C) at the time conceived or first reduced to practice, substantially related to the
Company’s current or planned business activities made known to Executive; or (D) resulted from work performed for the
Company. Executive hereby assigns and agrees to assign to the Company all rights in all Company Trade Secrets and any patent rights
arising therefrom.

 

(iv) Cooperation.
When requested by the Company, during or after employment, Executive will, at Company’s sole expense, use commercially reasonable
efforts to support and cooperate with the Company in pursuing any patent, copyright, or trade secret protection in the United States
and foreign countries for any Company Invention or work for hire. Executive will sign such assignments or other documents considered
necessary by the Company to convey ownership and exclusive rights, including patent rights, to the Company. The costs of obtaining
and defending patent and copyright rights shall be paid by the Company, and the Company shall pay reasonable compensation to Executive
for his services under this Section 7(a)(iv) if Executive is not then employed by the Company.

 

(v) Prior Inventions.
Executive represents and warrants that to his knowledge he does not own any inventions, original works of authorship, developments
and improvements which were made by him prior to employment with the Company and which relate to the business conducted by the
Company on the date of this Agreement.

 

    	 	3	 

     

    

  

(vi) Notice of Limits
to Assignment. The provisions of this Section 7(a) do not apply to any work product that Executive developed
on his own time without using Company equipment, supplies, facilities, trade secrets or Protected Information, unless the work
product (1) relates to the Company’s business or demonstrably anticipated business, (2) relates to the Company’s
actual or demonstrably anticipated research or development, or (3) results from any work performed by Executive for the Company.

 

(b)         Confidentiality.

 

(i) Representations
and Warranties. Executive makes the following representations and warranties regarding Protected Information.

 

a) Protect.
Executive represents and warrants to use commercially reasonable efforts to protect and maintain the confidentiality of Protected
Information while employed by the Company. Executive will follow all Company policies and procedures made known to Executive for
the protection and security of this information. Executive will also promptly report to the Board any potential or actual security
breach or loss of which executive has knowledge.

 

b) Return.
Executive will return (and not retain) any and all materials reflecting Protected Information that he may possess (including all
Company-owned equipment) immediately upon termination of employment.

 

c) Non-
Use or Disclose. Executive represents and warrants to not use or disclose, except as necessary for the performance of his services
on behalf of the Company or as required by law or legal process, any Protected Information where such use or disclosure would be
detrimental to the interests of the Company; provided, however, that Executive shall not have breached its obligations
hereunder due to Executive’s use of Residuals. The term “Residuals” shall mean Protected Information that
is in nontangible or abstract form (i.e., not digital, written or other documentary form, including tape or disk), which is retained
in the memory of Executive, and where the source of such Protected Information has become remote (e.g., as a result of the passage
of time or Executive’s subsequent exposure to information of a similar nature from another source without any breach of any
confidentiality obligation hereunder) such that Executive in good faith can no longer specifically identify such Protected Information’s
source and that Executive in good faith believes is not Protected Information. This representation and warranty applies only for
so long as such Protected Information remains confidential and not generally known to, and not readily ascertainable through proper
means by, the Company’s competitors.

 

(ii) Required Disclosures.
If Executive is requested or required to provide Protected Information in any legal proceeding or governmental investigation, Executive
will (if lawful) promptly notify the Company of the request so that the Company may either seek an appropriate protective order
or waive Executive’s obligations under this Agreement.

 

(iii) Immunity from
Certain Limited Disclosures. Notwithstanding any other provision of this Agreement, and consistent with the federal Defend
Trade Secrets Act, 18 U.S.C. § 1833(b), Executive may disclose trade secrets (A) in confidence, to federal, state, or local
government officials, or to an attorney of Executive, for the sole purpose of reporting or investigating a suspected violation
of law; or (B) in a document filed in a lawsuit or other legal proceeding. Nothing in this Agreement is intended to conflict with
the federal Defend Trade Secrets Act or create liability for disclosures expressly allowed by such Act. In addition, Executive
may disclose Protected Information to the extent required by law or to enforce or defend rights under this Agreement or any other
agreement to which Executive and Company or any of its subsidiaries are parties.

 

(c)         Restrictive
Covenants. Executive understands and agrees that the Company has legitimate interests in protecting its goodwill, its relationships
with Company Vendors and Business Partners, and in maintaining its confidential information, trade secrets and Protected Information,
and hereby agrees that the following restrictions are appropriate to protect such interests and are narrowly construed to meet
such goals.

 

    	 	4	 

     

    

  

(i) Non-Competition.
Executive agrees that while employed by the Company and for the Restricted Period thereafter, Executive shall not engage in or
“become associated with” any business that engages in any country in which the Company has significant business operations
to a significant degree in any business in which the Company is engaged, or taken substantial steps to engage, within one year
prior to the termination of Executive’s employment (or, while employed by the Company, within the preceding 12 months), including,
but not limited to QVC, HSN, JTW, or any entity or organization that, directly or indirectly, is controlled by, controls, or is
under common control, with such company.  Notwithstanding the forgoing, the restrictions in this Section 7(c)(i) shall not
apply to Executive in the event the Company does not renew this Agreement unless the Company elects, upon written notice delivered
to Executive not less than sixty (60) days prior to the expiration of the Term, to impose the restrictions in this Section 7(c)(i)
for the Restricted Period and pays to Executive, in addition to his Accrued Benefits (which shall include a pro-rated incentive
bonus for the year of nonrenewal to the extent the applicable performance requirements are achieved as of the reporting time applicable
to the other senior executives (i.e., at the end of the fiscal year) and payable at the same time as bonuses are paid to
other senior executives for such year), severance in the amount of one times his Base Salary during the 12-month period immediately
preceding the non-renewal of this Agreement. Executive shall be considered to have “become associated with” a business
if he becomes involved as an owner, employee, officer, director, independent contractor, agent, partner, advisor, or in any other
capacity calling for the rendition of Executive’s personal services, with any individual, partnership, corporation or other
organization that is engaged in such business, unless Executive has no direct or indirect involvement in, or direct or indirect
authority over, such business; provided, however, that Executive shall not be prohibited from (a) owning less than
two percent of any publicly traded corporation, (b) owning less than two percent of any private corporation that is engaged is
such business, (c) serving as a director or equivalent of a corporation or other business if less than 10% of such corporation’s
(and its affiliates’) or other business’ (and its affiliates’) revenues are derived from such business at the
time of Executive taking the position, or (d) serving as a director for Ensignia, Retail Next and Newgistics (subject to compliance
with the restrictions set forth in Section 3(a)).  For purposes of this Section 7(c)(i), the “Restricted Period”
means the 12 month period following the Date of Termination of his employment.

 

(ii) Non-Solicitation.
Executive agrees that while employed by the Company and for a period of one (1) year after Executive’s employment with
the Company ends, for whatever reason, Executive will not, and will not assist anyone else to, solicit or encourage any Company
Vendor to terminate or diminish its relationship with the Company.

 

(d)          Equitable
Relief. Executive agrees that the terms and conditions in Sections 7(a) through 7(c) are reasonable and necessary for the protection
of the Company’s business and to prevent damage or loss to the Company as the result of action taken by Executive. Executive
agrees that damages would be an inadequate remedy for the Company in the event of breach or threatened breach of Executive’s
obligations under this Section 7, and thus, in any such event, the Company may, either with or without pursuing any potential
damage remedies, immediately seek to obtain and enforce an injunction prohibiting Executive from violating the promises in this
Section without the necessity of posting a bond. Executive understands that this provision regarding the issuance of an injunction
does not limit any remedies at law or equity otherwise available to the Company.

 

(e)          Non-Interference.
Executive agrees that during his employment with the Company, and for a period of one (1) year from the voluntary or involuntary
termination of employment with the Company for any reason whatsoever, Executive shall not, either personally or in conjunction
with others either (i) solicit, interfere with, or endeavor to cause any employee of the Company to leave such employment
or (ii) otherwise induce or attempt to induce any such employee to terminate employment with the Company.

 

(f)          Notice.
Executive agrees that he will give notice of this Agreement and Executive’s obligations to comply with its terms to any person
or organization that Executive may become associated with during the first two years after the termination of his employment with
the Company. Executive further agrees that the Company may, if it desires, send a copy of, or otherwise make the provisions in
Section 7 hereof known to any such person, firm or entity during that time.

 

(g)          Non-Disparagement.
The Company shall instruct its Board members and officers not to, and Executive agrees not to, make any derogatory or negative
public statement about, or take any action or make any statement which may disparage, the other or any of their respective Affiliates,
or any of their respective owners, stockholders, officers, directors or employees or any of their respective products, services,
businesses, reputations or goodwill; provided that nothing herein shall prevent the Company (including its Board members
and officers) or Executive from responding or answering truthfully if required to by applicable law or compelled by process of
law or in order to enforce or defend rights under this Agreement or any other agreement to which Executive and Company or any of
its subsidiaries are parties.

 

    	 	5	 

     

    

  

(h)          Return
of Company Property. Upon termination of Executive’s employment, Executive shall promptly return to the Company: (i) all
documents, records, procedures, books, notebooks, and any other documentation in any form whatsoever, including but not limited
to written, audio, video or electronic, containing any information pertaining to the Company which includes Protected Information,
including any and all copies of such documentation then in Executive’s possession or control regardless of whether such documentation
was prepared or compiled by Executive, Company, other employees of the Company, representatives, agents, or independent contractors,
and (ii) all equipment or tangible personal property entrusted to Executive by the Company; provided, however, that Executive
shall be entitled to purchase from the Company at fair market value the personal computer, laptop, iPad and cell phone owned by
the Company but that he used during the Term of this Agreement. Executive acknowledges that all such documentation, copies of such
documentation, equipment, and tangible personal property are and shall at all times remain the sole and exclusive property of the
Company.

 

(k)          No
Conflicts. Executive hereby represents and warrants that Executive’s signing of this Agreement and the performance of
Executive’s obligations under it will not breach or be in conflict with any other agreement to which Executive is a party
or is bound and that Executive is not now subject to any covenants against competition or similar covenants or any court order
that could affect the performance of Executive’s obligations under this Agreement.

 

8.           Notice.
Any notice, request, demand or other communication required or permitted herein will be deemed to be properly given when personally
served in writing, by email or when deposited in the United States mail, postage prepaid, addressed to Executive at the address
(or email address) last appearing in EVINE Live’s personnel records and to the Company at its headquarters with attention
(or an email) to the General Counsel of EVINE Live. Either party may change its address by written notice in accordance with this
paragraph.

 

9.           Set
Off; Mitigation. The Company’s obligation to pay Executive the amounts and to provide the benefits hereunder shall
not be subject to set-off, counterclaim or recoupment of amounts owed by Executive to the Company. Executive shall not be required
to mitigate the amount of any payment provided for pursuant to this Agreement by seeking other employment or otherwise.

 

10.         Benefit
of Agreement. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective
executors, administrators, successors and assigns. This Agreement shall not be assignable by EVINE Live or Executive.

 

11.         Applicable
Law and Jurisdiction. This Agreement is to be governed by and construed under the laws of the United States and of the
State of Minnesota without resort to Minnesota’s choice of law rules. Each party hereby agrees that the forum and venue for
any legal or equitable action or proceeding arising out of, or in connection with, this Agreement will lie in the appropriate federal
or state courts located in Hennepin County, Minnesota and specifically waives any and all objections to such jurisdiction and venue.

 

12.         Captions
and Paragraph Headings. Captions and section or paragraph headings used herein are for convenience only and are not a part
of this Agreement and will not be used in construing it.

 

13.         Divisibility of Agreement or Modification By Court. To the extent permitted by law, the invalidity of any provision
of this Agreement will not and shall not be deemed to affect the validity of any other provision. In the event that any provision
of this Agreement is held to be invalid, it shall be, to the further extent permitted by law, modified to the extent necessary
to be interpreted in a manner most consistent with the present terms of the provision, to give effect to the provision. Finally,
in the event that any provision of this Agreement is held to be invalid and not capable of modification by a court, then it shall
be considered expunged, and the parties agree that the remaining provisions shall be deemed to be in full force and effect as if
they had been executed by both parties subsequent to the expungement of the invalid provision.

 

14.         No
Waiver. The failure of a party to insist upon strict adherence to any term of this Agreement on any occasion shall not
be considered a waiver of such party’s rights or deprive such party of the right thereafter to insist upon strict adherence
to that term or any other term of this Agreement.

 

15.         Survival.
The termination or expiration of this Agreement will not affect the rights or obligations of the parties hereunder arising out
of, or relating to, circumstances occurring prior to the termination or expiration of this Agreement, which rights and obligations
will survive the termination or expiration of this Agreement. In addition, the following provisions shall survive the termination
or expiration of this Agreement: Sections 5 and 6 (as necessary for the payments and benefits due thereunder to be paid or provided),
and Sections 7, 8, 9, 11 through 18, and 20.

 

    	 	6	 

     

    

  

16.         Entire
Agreement. This Agreement and the Exhibits attached hereto contain the entire agreement of the parties with respect to
the subject matter of this Agreement except where other agreements are specifically noted, adopted, or incorporated by reference.
This Agreement and the Exhibits attached hereto otherwise supersede any and all other agreements, either oral or in writing, between
the parties hereto with respect to the employment of Executive by Company, and all such agreements shall be void and of no effect.
Each party to this Agreement acknowledges that no representations, inducements, promises, or agreements, oral or otherwise, have
been made by any party, or anyone acting on behalf of any party, which are not embodied herein, and that no other agreement, statement,
or promise not contained in this Agreement will be valid or binding.

 

17.         Modification
or Amendment. This Agreement may not be modified or amended except through a writing signed by both an authorized representative
of EVINE Live and Executive.

 

18.         Claims
by Executive. Executive acknowledges and agrees that any claim or cause of action by him against the Company other than
a claim for failure to pay amounts due under this Agreement shall not constitute a defense to the enforcement of the restrictions
and covenants set forth in this Agreement and shall not be used to prohibit injunctive relief.

 

19.         Execution
of Agreement. This Agreement may be executed in multiple counterparts, any one of which need not contain the signature
of more than one (1) party, but all such counterparts taken together shall constitute one and the same instrument. Further,
this Agreement may be signed and delivered by means of facsimile or scanned pages via electronic mail, and such scanned or facsimile
signatures shall be treated in all manner and respects as an original signature and shall be considered to have the same binding
legal effect as if it were an original signature, and no party may raise the use of facsimile or scanned signatures as a defense
to the formation of this Agreement.

 

20.         Attorneys’
Fees. If either party retains an attorney to enforce the provisions of this Agreement or appeal thereof in connection with
this Agreement, the unsuccessful or non-prevailing party in such proceeding shall reimburse the successful or prevailing party
for all reasonable expenses (including attorney’s fees and allocated charges of internal counsel) and disbursements incurred
by the latter in connection with the proceeding(s). Such reimbursement shall include all legal fees and expenses incurred before
and at arbitration, and at all levels of appeal and post-arbitration/post-judgment proceedings.

 

21.         Section 409A.
It is intended that this Agreement will comply with Code Section 409A and any regulations and other published guidance of
the IRS thereunder, to the extent the Agreement is subject thereto, and the Agreement shall be interpreted on a basis consistent
with such intent. With respect to any reimbursement or in-kind benefit arrangements of the Company that constitutes deferred compensation
for purposes of Code Section 409A, the following conditions shall be applicable (except as otherwise permitted by Code Section 409A):
(i) the amount eligible for reimbursement, or in-kind benefits provided, under any such arrangement in one calendar year may
not affect the amount eligible for reimbursement, or in-kind benefits to be provided, under such arrangement in any other year
(except that any health or dental plan may impose a limit on the amount that may be reimbursed or paid), (ii) any reimbursement
must be made on or before the last day of the calendar year following the calendar year in which the expense was incurred, and
(iii) the right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit.

 

22.         Indemnification;
D&O Insurance. [Insert Company indemnity language.] The Company shall provide D&O coverage to Executive on the
same terms as other directors and officers of the Company. The provisions of this Section 21 shall survive the termination of Executive’s
employment with the Company and/or the termination of this Agreement for any reason.

 

23.         Reimbursement
of Legal Fees. The Company shall reimburse Executive for the reasonable and necessary legal fees and expenses he incurs
in connection with the negotiation and preparation of this Agreement and related documents, not to exceed $20,000.

 

[Signature Page to Follow]

 

    	 	7	 

     

    

 

IN WITNESS WHEREOF, the
parties hereto have executed, or caused to be executed, this Agreement on the Effective Date.

 

	EXECUTIVE:	 	EVINE LIVE INC.
	 	 	 	 
	/s/ Robert Rosenblatt	 	By:	/s/Damon E. Schramm
	Robert Rosenblatt	 	 	 
	 	 	Its:	Senior Vice President, General Counsel

 

    	 	8	 

     

    

  

EXHIBIT A

Definitions

 

For purposes of this Agreement, the following
terms shall have the meanings ascribed to them:

 

(a)           Affiliate
shall mean, with respect to EVINE Live, any partnership, corporation, limited liability company, joint stock company, unincorporated
organization or association, trust, joint venture, or other organization that, directly or through one or more intermediaries,
is controlled by, controls, or is under common control with, EVINE Live.

 

(b)           Accrued
Benefits shall mean the following amounts, payable as described herein: (i) all Base Salary that has accrued but is unpaid
as of the Termination Date; (ii) reimbursement of Executive for his reasonable and necessary expenses, which have been approved
in accordance with Company policy and which were incurred by Executive on behalf of the Company as of the Termination Date; (iii)
reimbursement of unreimbursed commute/away from home expenses (with Gross-Up) incurred by Executive through the Termination Date;
(iv) any and all other cash earned by Executive through the Termination Date and deferred at the election of Executive pursuant
to any deferred compensation plan then in effect; (v) if the Company does not renew this Agreement or if Executive’s employment
with the Company terminates as a result of a Change of Control, a pro-rated incentive bonus for the year of termination to the
extent the applicable performance requirements are achieved as of the reporting time applicable to the other senior executives
(i.e., at the end of the fiscal year) and payable at the same time as bonuses are paid to other senior executives for such
year and (vi) all other payments and benefits to which Executive (or in the event of Executive’s death, Executive’s
surviving spouse or other beneficiaries) is entitled on the Termination Date under the terms of any benefit plan of the Company,
excluding severance payments under any Company severance policy, practice or agreement in effect on the Termination Date. Payment
of Accrued Benefits shall be made promptly in accordance with the Company’s prevailing practice with respect to clauses (i),
(ii) and (iii) or, with respect to clauses (iv) and (vi), pursuant to the terms of the benefit plan or practice establishing
such benefits, and any applicable law (but in each instance no less favorable than that applied to the most senior executive officers
of the Company).

 

(c)           Base
Salary shall mean Executive’s annual base salary with the Company as in effect from time to time.

 

(d)           Board
shall mean the board of directors of EVINE Live or a committee of such Board authorized to act on its behalf in certain circumstances,
including the Human Resources and Compensation Committee of the Board.

 

(e)           Cause
shall mean any of the following, as determined by the Board in its reasonable judgment, exercised in good faith: (i) Executive’s
conviction of, or plea of guilty or nolo contendere to, a felony, crime of moral turpitude, or a crime, the circumstances
of which are substantially related to Executive’s duties or responsibilities; (ii) theft, conversion, embezzlement or
misappropriation by Executive of funds or other assets of the Company, any other act of fraud with respect to the Company or any
other act of dishonesty with respect to the Company that causes material harm to the Company; (iii) Executive’s willful
misconduct, including intentional, grossly negligent, or unlawful misconduct by Executive that has a material adverse effect on
the Company; (iv) Executive’s violation of the Company’s policies on non-discrimination and/or harassment; (v) the
failure by Executive to materially comply with any other material Company policy generally applicable to Company employees (that
are provided or made available to Executive) that has a material adverse effect on the Company; (vi) Executive’s willful
or intentional breach of any provision of this Agreement (including but not limited to Section 7) that could reasonably result
in a material adverse effect on the Company; or (vii) Executive’s gross neglect of Executive’s duties; provided
that prior to a termination due to Executive’s acts or omissions described in clauses (iii) through (vii) herein, the
Company shall have provided Executive with a written notice setting forth in reasonable detail the acts or omissions constituting
Cause, and Executive shall have failed to cure such acts or omissions within thirty (30) days of his receipt of the written
notice; and provided, further, that Executive shall have been afforded an opportunity to appear (with counsel) before the
Board. If the alleged conduct or act constituting Cause is not curable, then Executive’s employment will terminate on the
date specified in the written notice of termination (which may be immediate). If the alleged conduct or act constituting Cause
is curable but Executive does not timely cure such conduct or act, then Executive’s employment will terminate on the date
immediately following the end of the cure period.

 

    	 	9	 

     

    

  

(f)         Change
in Control shall mean a “Change in Control” as defined in the EVINE Live Inc. 2011 Omnibus Incentive Plan, as amended
and in effect from time to time, or any successor incentive plan thereto.

 

(g)         COBRA shall
mean the provisions of Code Section 4980B.

 

(h)         Code
shall mean the Internal Revenue Code of 1986, as amended, as interpreted by rules and regulations issued pursuant thereto,
all as amended and in effect from time to time. Any reference to a specific provision of the Code shall be deemed to include reference
to any successor provision thereto.

 

(i)           Company
Vendor shall mean those vendors, suppliers or product developers who did business at any time with the Company within the twenty-four
(24) months preceding Executive’s Termination Date and (i) about whom Executive, as a result of his employment,
had access to (and actually accessed or knew about) information or goodwill that would assist in solicitation of such Company Vendor,
or (ii) with whom Executive personally dealt on behalf of the Company in the twelve (12) months immediately preceding
the Termination Date and that Executive was introduced to or otherwise had business contact with as a result of his employment
with the Company. “Company Vendor” shall also include an individual or business to whom a pitch to solicit or secure
business or product for sale was prepared (even if not yet made) within the 12-month period preceding the Termination Date, and
with which Executive had involvement in the preparation of, or had exposure to information developed for, the specific pitch; provided,
a general mailing or an incidental contact shall not be deemed a pitch.

 

(j)           Disability
shall mean, subject to applicable law, that a medically determinable physical or mental impairment of Executive renders Executive
unable to perform the essential functions of his position with the Company, either with or without a reasonable accommodation in
substantially the manner and to the extent required hereunder prior to the commencement of such disability, and Executive shall
be unable to return to such duties at the end of the short-term disability period provided under the Company’s short-term
disability plan applicable to other senior executive officers of the Company (or such longer period as the Company may grant in
its sole discretion or as otherwise required by law).

 

(k)         Good
Reason shall mean the occurrence of any of the following events while this Agreement is in effect, without the Executive’s
written consent:

 

(i) A relocation of Company’s
principal place of employment to a location more than fifty (50) miles from Company’s current office location unless
the Company agrees to continue reimbursing commuting/away from home expenses incurred in such new location;

 

(ii) Any reduction in Executive’s
Base Salary described in Section 3(c) (excluding long-term performance or equity awards described in Section 3(c)(ii)),
unless part of an across-the-board reduction applicable on a similar basis to all other senior executive officers of EVINE Live
and, in that event, provided that such reduction does not exceed five percent (5%) of Executive’s total cash compensation
opportunity (Base Salary);

 

(iii) Any failure to pay
Executive amounts due under this Agreement;

 

(iv) Any material reduction
in Executive’s duties, responsibilities or authority, or any change in Executive’s title or the reporting lines as
set forth in Section 3(a) herein; or

 

(v) Any failure to nominate
Executive to the Board or any failure of the Company’s stockholders to elect Executive to the Board;

 

provided that such
event shall constitute Good Reason only if Executive provides EVINE Live written notice of resignation, specifying in reasonable
detail the event constituting Good Reason, within sixty (60) days after the initial existence of such event; and (C) EVINE
Live fails to cure (if curable) the Good Reason event within thirty (30) days following receipt of such notice. If EVINE Live
timely cures the Good Reason event, then Executive’s notice of resignation shall be automatically rescinded. If EVINE Live
does not timely cure the Good Reason event, then the Termination Date shall be the date immediately following the end of the Company’s
cure period.

 

(l)         Protected
Information shall mean Company information not generally known to, and not readily ascertainable through proper means by, the
Company’s competitors on matters such as: Company Vendor or Business Partner lists or information; the compensation of the
Company’s other employees or agents; nonpublic financial information; marketing, business and strategic plans; business methods;
investment strategies and plans; patent applications; sales and marketing plans; future market and product plans; Company (not
individual) know-how; trade secrets; Company research and development, techniques, processes, product development, work processes
or methodologies; analytical analyses, product analyses, inventions, formulaic work, formulas, formulaic techniques, analytical
methodology, efficacy data and testing data; technology, drawings, engineering, code, code writing, software (and hardware) development
and platform development; and other information of a technical or economic nature relating to the Company’s business. Protected
Information includes negative know-how, which is information about what the Company tried that did not work, if that information
is not generally known or easily ascertainable by the Company’s competitors and would give them an advantage in knowing what
not to do. Information, data, and materials received by the Company from others in confidence (or subject to nondisclosure or similar
covenants) shall also be deemed to be and shall be Protected Information.

 

    	 	10	 

     

    

  

Notwithstanding the foregoing,
Protected Information shall not include information that (i) was in the public domain, being publicly and openly known through
lawful and proper means, (ii) was independently developed or acquired by Executive without reliance in any way on other Protected
Information of the Company or any Company Vendor or Business Partner, (iii) was approved by the Company for use and disclosure
by Executive without restriction, (iv) is required to be disclosed pursuant to any applicable law or court order; provided
that, in the case of this clause (iv), Executive notifies EVINE Live (if lawful) of the requirement to disclose such information
as soon as possible after Executive becomes aware of the requirement to disclose or (v) is disclosed in order enforce of defend
rights under this Agreement or any other agreement to which Executive and Company or any of its subsidiaries are parties.

 

(m)        Separation
Agreement shall mean a separation agreement in a form no less favorable to Executive than the form previously provided to Executive,
subject to modifications to reflect the terms of this Agreement and subject to elimination of the liquidated damages provision
for breach of the restrictive covenants and the addition of a carve-out from the release for Executive’s rights as a shareholder
of the Company.

 

(n)         Separation
from Service shall mean Executive’s separation from service (within the meaning of Code Section 409A) from EVINE
Live and its Affiliates.

 

(o)         Severance
Benefits shall mean the payments and benefits described in Section 5 hereof.

 

(p)         Severance
Payment shall mean the following:

 

(i)           Change
of Control. In the event Executive’s employment terminates as a result of a Change in Control, the amount of the cash
severance benefit paid to Executive shall be (A) an amount equal to two (2) times the Executive’s Base Salary during the
12-month period immediately preceding the date of the Executive’s Separation from Service, plus (B) two (2) times the greater
of (x) the target annual incentive bonus received by Executive for the immediately preceding fiscal year or (y) the target annual
incentive bonus determined from such Base Salary.

 

(ii)         Other
than Change of Control. In the event Executive’s employment terminates for reasons other than a Change in Control and
either (i) at the initiation of the Company for reasons other than Cause, or (ii) at the initiation of the Executive for Good Reason,
the amount of the cash severance benefit paid under this Agreement shall be an amount equal to one and one-half (11⁄2) times
the Executive’s Base Salary during the 12-month period immediately preceding the date of the Executive’s Separation
from Service, plus one (1) times the target annual incentive bonus determined from such Base Salary.

 

For purposes of this definition,
the Executive’s Base Salary shall be the amount in effect immediately preceding the Termination Date; provided that
if a reduction in Executive’s Base Salary constituted a Good Reason for the termination, then Base Salary shall be the amount
in effect immediately prior to such reduction.

 

Notwithstanding the foregoing,
in the event that the Company’s Executive’s Severance Plan provides an executive subject to such plan with benefits
that are greater than the dollars provided for in this Section (u), the severance benefits eligible to Executive under this Agreement
shall be equal to such benefits offered under the Executive’s Severance Plan.

 

For an illustrative example,
please see the table on Exhibit E.

 

(q)         Severance
Period shall mean the eighteen (18)-month period following the Termination Date; provided that if the Termination Date
occurs on or within the one year period following a Change in Control, then the Severance Period shall mean the twenty-four (24)-month
period following the Termination Date.

 

(r)         Termination
Date shall mean the date of Executive’s termination of employment from the Company, as further described in Section 4.

 

    	 	11	 

     

    

  

EXHIBIT B

Positions Reporting Directly to CEO

 

President (if one is appointed)

Chief Financial Officer

Chief Marketing Officer

Chief Merchandising Officer

Chief Digital Officer

Chief Operating Officer

General Counsel

Senior Vice President of Human Resources (or
equivalent)

 

    	 	12	 

     

    

  

EXHIBIT C

Commute / Away from Home Expenses

 

During the Term of this Agreement, EVINE Live
will reimburse Executive for his reasonable and necessary temporary housing, transportation and weekly commuting expenses to and
from Eden Prairie, MN (“Commuting and Away from Home Expenses”), plus during the Initial Term an additional
amount (the “Gross-Up”) such that, after payment of taxes on the Commuting Expenses and on the Gross-Up, Executive
retains the amount equal to the Commuting Expenses. Eligible commuting expenses above are defined as: airfare, ground transportation,
rental living accommodations and rental car (home ownership is not reimbursable as a commuting expense) in accordance with current
practice.

 

    	 	13	 

     

    

  

Exhibit D

Bonus and Equity Incentives

 

1.           Cash
Bonus. Beginning with the fiscal year of the Effective Date (to be paid, if earned, in 2017), and for each fiscal year thereafter
during the Term, Executive shall participate in such annual cash incentive plans and programs of EVINE Live as are generally provided
to the senior executives of EVINE Live pursuant to such terms and conditions as the Board may prescribe from time to time; provided
that Executive shall be entitled to a payout of at least 100% of Base Salary (the “Target Bonus”) if the target
annual performance goal(s) established by the Board is (are) achieved. For the sake of clarity, the Target Bonus in the first fiscal
year would be at least $750,000 and will not be pro-rated. The performance objectives for the first fiscal year shall be the objectives
previously communicated to Executive. The performance objectives for subsequent fiscal years shall be as mutually agreed by Executive
and the Company’s Compensation Committee.

 

2.           Long
Term Equity Plan. Beginning with the fiscal year of the Effective Date (to be granted, if earned, in 2017), Executive shall
receive, if earned, a long term incentive equity grant equal to 150% of his Base Salary (comprised of 50% stock options vesting
at a rate of one-third at each anniversary of the Effective Date) and 50% performance units subject to relative TSR vesting), subject
to the terms and conditions of the Company’s Long Term Incentive Plan and the Company’s 2011 Omnibus Incentive Plan,
except to the extent otherwise provided in this Agreement. The award agreements evidencing the long term incentive equity grants
to Executive will provide for accelerated vesting upon Executive’s termination with Good Reason (as well as termination without
Cause) within 12 months following the occurrence of a Change of Control and will provide that Section 6 of this Agreement overrides
Section 12(e) of the 2011 Omnibus Incentive Plan. For the sake of clarity, the initial LTIP grant would be as if Executive was
employed as CEO February 1, 2016 and was granted the initial LTIP equity when the rest of the executives were granted LTIP equity
in March 2016 so the vesting schedule is the same as the grants that were made on that date, except that the strike price for the
options will be established on the Effective Date, and will not be pro-rated.

 

3.           Initial
Equity Grant. EVINE Live shall issue grant Executive restricted stock, the number of which will be determined by dividing $1,000,000
by the per-share closing price of the Company’s common stock on the Effective Date. The restricted stock grant shall have
a ten year term and shall vest one-third upon the Effective Date, one-third when the per-share closing price of the Company’s
common stock reaches or exceeds an average trading price of $4 for twenty consecutive trading days and Executive has been continuously
employed for at least one year from the Effective Date, and the remaining shares when the per-share closing price of the Company’s
stock reaches or exceeds an average trading price of $6 for twenty consecutive trading days and Executive has been continuously
employed for at least two years after the Effective Date. The award agreement for the restricted stock grant will provided that
the service requirement will be deemed satisfied if Executive is terminated without Cause or resigns with Good Reason within 12
months following the occurrence of a Change of Control such that the shares will be awarded if the targets are thereafter met within
the two year vesting period, and will provide that Section 6 of this Agreement overrides Section 12(e) of the Company’s 2011
Omnibus Incentive Plan. For the sake of clarity, the stock-price vesting trigger may occur at any time during the ten year term
of the stock grant, provided that Executive has been continuously employed at the time the stock-price vesting trigger is achieved.
The stock-price trigger does not need to occur during the corresponding time-vesting trigger (e.g., if the average trading
price over 20 consecutive trading days reaches $4 five years after the Effective date and Executive has been continuously employed
by the Company to that date, the second tranche will fully vest at that time (because the time vesting requirement would have been
met on the first anniversary of the Effective Date assuming Executive had been continuously employed from the Effective Date through
the first anniversary thereof)). Except as otherwise provided in this Agreement, the restricted stock shall be subject to the terms
and conditions of the Company’s 2011 Omnibus Incentive Plan.

 

    	 	14	 

     

    

  

EXHIBIT E

Severance Benefits

 

1.           Severance
Benefits. Executive shall be entitled to Severance Benefits in the following circumstances:

 

(a)           Executive’s
employment is terminated by EVINE Live without Cause, except in the case of death or Disability; or

 

(b)           Executive
terminates his employment with the Company for Good Reason.

 

If Executive dies after
receiving a notice by EVINE Live that Executive is being terminated without Cause, or after providing notice of termination for
Good Reason, then Executive’s estate, heirs and beneficiaries (as the case may be) shall be entitled to the Accrued Benefits
and the Severance Benefits at the same time such amounts would have been paid or benefits provided to Executive had he lived.

 

2.           Requirement
for Severance Benefits. As an additional prerequisite for receipt of the Severance Benefits, Executive must (i) execute,
deliver to EVINE Live, and not revoke (to the extent Executive is allowed to do so) a Separation Agreement within twenty (20) calendar
days (or such longer period as is provided in the Separation Agreement) following the Executive’s receipt of such Separation
Agreement, which EVINE Live must provide Executive within ten (10) days following Executive’s Termination Date, and
(ii) comply in all material respects with all of Executive’s covenants set forth in this Agreement.

 

3.           Severance
Benefits; Timing and Form of Payment. Subject to the limitations imposed by Section 6, if Executive is entitled to Severance
Benefits, then:

 

(a)           The
Company shall pay Executive the Severance Payment, if applicable, in equal installments, consistent with the Company’s normal
payroll practices, over the Severance Period (or, in the case of a termination of employment within one year following a Change
in Control, in a lump sum, provided such Change in Control meets the requirements of Code Section 409A) following the date
of his Separation from Service; provided that any amounts that would be payable prior to the effectiveness of the Separation
Agreement shall be delayed until the Separation Agreement becomes effective. Notwithstanding the foregoing, if, as of the date
of Executive’s Separation from Service (i) he is a “specified employee” as determined under Code Section 409A,
then any portion of the Severance Payment that is subject to Code Section 409A and that would otherwise be payable within
the first six (6) months following such Separation from Service shall be delayed until the first regular payroll date of the
Company following the six (6) month anniversary of Executive’s Separation from Service (or the date of his death, if
earlier than that anniversary) or (ii) he is not a “specified employee” as determined under Code Section 409A,
then any portion of the Severance Payment that is subject to Code Section 409A and that would be otherwise payable within
the first sixty (60) days after Executive’s Separation from Service shall be paid sixty (60) days after Executive’s
Separation from Service (and not promptly following the effectiveness of the Separation Agreement).

 

(b)           The Company shall
continue to provide to Executive and his dependents (as applicable) during the Severance Period, group health, dental and life
insurance benefits to the extent that such benefits were in effect for Executive and his family as of the Termination Date, subject
to Executive’s timely election of group health and/or dental continuation coverage pursuant to COBRA or similar state laws.
The Company shall be responsible for payment of all premiums necessary to maintain these benefits during the Severance Period.
Benefit continuation under this Section shall be concurrent with any coverage under the Company’s plans pursuant to
COBRA or similar state laws. Such benefits shall be terminated prior to the expiration of the Severance Period to the extent Executive
has obtained new employment and is covered by benefits which in the aggregate are comparable to such continued benefits. Executive
shall promptly notify the Company when he becomes employed after the Termination Date and shall provide such reasonable cooperation
as the Company requests with respect to determining whether Executive is covered by comparable benefits with such new employer.
If the health or dental benefits are fully insured, and the provision of such benefits under this clause would subject the Company
or its benefits arrangements to a penalty or adverse tax treatment, then the Company shall provide a cash payment to Executive
in an amount reasonably determined by the Company to be equivalent to the COBRA premiums for such benefits. If the health or dental
benefits are self-insured, and the provision of such benefits under this clause is considered discriminatory under Code Section 105(h),
then to the extent required by the Code, Executive acknowledges that the value of the premiums paid by the Company hereunder shall
be considered taxable wages to Executive, and the Company shall be permitted to withhold applicable taxes with respect to such
wages from other amounts owed to Executive, or require Executive to make satisfactory arrangements with the Company for the payment
of such withholding taxes.

 

    	 	15	 

     

    

 

(c)           The
vesting of any long-term incentive equity awards shall be governed by the Company’s Omnibus Incentive Plan.

 

An illustrative summary of the severance benefits
is as follows:

 

	Qualifying 

Factors	 	Severance	 	Health Benefits	 	Bonus	 	Equity	 	Protective 

Covenants
	Term w/o Cause / Good Reason	 	18 Months	 	18 Months	 	1x target bonus	 	No	 	18 Months
	Change in Control*	 	24 Months	 	24 Months	 	2x target bonus	 	Yes*	 	18 Months

 

*subject to a double trigger

 

    	 	16

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