Document:

Exhibit 4.4

 

Execution Version

 

MANAGEMENT JSC NOTE

 

NEITHER THIS SECURITY NOR THE SECURITIES INTO
WHICH THIS SECURITY IS CONVERTIBLE HAS BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY
STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT
TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE
WITH APPLICABLE STATE SECURITIES LAWS. THIS SECURITY AND THE SECURITIES ISSUABLE UPON CONVERSION OF THIS SECURITY MAY BE PLEDGED
IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED
INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT OR OTHER LOAN SECURED BY SUCH SECURITIES. ANY TRANSFEREE OF THIS
SECURITY SHOULD CAREFULLY REVIEW THE TERMS OF THIS SECURITY, INCLUDING SECTIONS 3(c)(iii) AND 18(a) HEREOF. THE PRINCIPAL
AMOUNT REPRESENTED BY THIS SECURITY AND, ACCORDINGLY, THE SECURITIES ISSUABLE UPON CONVERSION HEREOF MAY BE LESS THAN THE AMOUNTS
SET FORTH ON THE FACE HEREOF PURSUANT TO SECTION 3(c)(iii) OF THIS SECURITY.

 

THIS SECURITY IS SUBJECT TO THE INTERCREDITOR
AND SUBORDINATION AGREEMENT, DATED AS OF SEPTEMBER 20, 2022, BETWEEN WELLS FARGO BANK, NATIONAL ASSOCIATION, AS ABL AGENT, AND TASCR VENTURES
CA, LLC, AS SUBORDINATED CREDITOR REPRESENTATIVE (AS AMENDED, RESTATED OR OTHERWISE MODIFIED FROM TIME TO TIME, THE “ABL INTERCREDITOR
AGREEMENT”). PAYMENT UNDER THIS SECURITY IS SUBORDINATE TO THE RIGHT OF PAYMENT IN FULL OF THE ABL OBLIGATIONS (AS DEFINED IN THE
ABL INTERCREDITOR AGREEMENT), AND ANY SECURITY INTEREST OR LIEN SECURING THIS SECURITY IS SUBORDINATE TO THE LIENS SECURING THE ABL OBLIGATIONS, IN
EACH CASE IN ACCORDANCE WITH, AND OTHERWISE SUBJECT TO THE TERMS AND CONDITIONS OF, THE ABL INTERCREDITOR AGREEMENT.

 

THIS SECURITY IS SUBJECT TO THE TERM LOAN /
JUNIOR SECURED CONVERTIBLE NOTES INTERCREDITOR AND SUBORDINATION AGREEMENT, DATED AS OF SEPTEMBER 20, 2022, BETWEEN ALTER DOMUS (US) LLC,
AS TERM LOAN AGENT, AND TASCR VENTURES CA, LLC, AS SUBORDINATED CREDITOR REPRESENTATIVE (AS AMENDED, RESTATED OR OTHERWISE MODIFIED FROM
TIME TO TIME, THE “TERM LOAN – JSC NOTES INTERCREDITOR AGREEMENT”). PAYMENT UNDER THIS SECURITY IS SUBORDINATE TO THE
RIGHT OF PAYMENT IN FULL OF THE TERM LOAN OBLIGATIONS (AS DEFINED IN THE TERM LOAN – JSC NOTES INTERCREDITOR AGREEMENT), AND ANY
SECURITY INTEREST OR LIEN SECURING THIS SECURITY IS SUBORDINATE TO THE LIENS SECURING THE TERM LOAN OBLIGATIONS, IN EACH CASE IN
ACCORDANCE WITH, AND OTHERWISE SUBJECT TO THE TERMS AND CONDITIONS OF, THE TERM LOAN – JSC NOTES INTERCREDITOR AGREEMENT.

 

    

     

    

 

THIS SECURITY HAS BEEN ISSUED WITH ORIGINAL
ISSUE DISCOUNT (“OID”). PURSUANT TO TREASURY REGULATION §1.1275-3(b)(1), MARC D. KATZ, EXECUTIVE VICE PRESIDENT, PRINCIPAL
AND CHIEF OPERATING OFFICER AND INTERIM CHIEF FINANCIAL OFFICER, A REPRESENTATIVE OF THE ISSUER HEREOF WILL, BEGINNING TEN DAYS AFTER
THE ISSUANCE DATE OF THIS SECURITY, PROMPTLY MAKE AVAILABLE TO THE HOLDER UPON REQUEST THE INFORMATION DESCRIBED IN TREASURY REGULATION
 §1.1275-3(b)(1)(i). HE MAY BE REACHED AT TELEPHONE NUMBER (972) 387-3562.

 

Tuesday
Morning Corporation

 

MANAGEMENT JSC NOTE

 

No. M-[●]

	Issuance Date: September 20, 2022	Original Principal Amount: U.S. $[●]1          

 

FOR
VALUE RECEIVED, Tuesday Morning Corporation, a Delaware corporation (the “Issuer”), hereby promises to pay
to [PURCHASER] or registered assigns (the “Holder”) in cash and/or in shares of Common Stock (as defined below) the
amount set forth above as the Original Principal Amount (as reduced pursuant to the terms hereof pursuant to redemption, conversion or
otherwise and as increased pursuant to Section 2(a) hereof, the “Principal”) when due, whether upon the Maturity
Date (as defined below), acceleration, conversion, redemption or otherwise (in each case in accordance with the terms hereof) and to pay
interest (“Interest”) on any outstanding Principal at the Interest Rate plus, without duplication, any other amounts
accrued pursuant to Section 2(b) from the date set out above as the Issuance Date (the “Issuance Date”) until
the same becomes due and payable, whether upon an Interest Date (as defined below), the Maturity Date, acceleration, conversion, redemption
or otherwise (in each case in accordance with the terms hereof). This Management JSC Note (including all Management JSC Notes issued in
exchange, transfer or replacement hereof, this “Management JSC Note”) is one of an issue of the “ Management
JSC Notes” issued on the Closing Date pursuant to the Note Purchase Agreement. Certain capitalized terms used herein are defined
in Section 30.

 

1.            PAYMENTS
OF PRINCIPAL. Unless previously prepaid, redeemed, or converted as provided herein, on the Maturity Date, the Issuer shall pay to
the Holder an amount in cash representing all outstanding Principal and accrued and unpaid Interest. The “Maturity Date”
shall mean December 31, 2027, as such date may be extended at the option of the Holder. Other than as specifically permitted by this
Management JSC Note, the Issuer may not prepay any portion of the outstanding Principal or accrued and unpaid Interest.

 

 

  

1 The aggregate principal amount of the Management JSC
Notes issued to each of the 11 purchasers is set forth in Schedule I to the Amended and Restated Note Purchase Agreement, dated
as of September 20, 2022, filed as Exhibit 10.1 to this Current Report on Form 8-K.

 

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(a)            Securities
Contract. The Issuer and the Holder hereby acknowledge and agree that the Note Purchase Agreement is a “securities contract”
as defined in 11 U.S.C. § 741 and that the Holder shall have all rights in respect of this Management JSC Note and the Note Purchase
Agreement as are set forth in 11 U.S.C. § 555 and 11 U.S.C. § 362(b)(6), which are hereby incorporated in this Management JSC
Note and made a part hereof as if such provisions were set forth herein.

 

(b)            Order
of Conversion and/or Redemption. Notwithstanding anything herein to the contrary (but subject to the terms of each Intercreditor Agreement),
with respect to any partial conversion or redemption hereunder, as applicable, the Issuer shall convert or redeem, as applicable, First,
all accrued and unpaid Interest hereunder and under any Other Notes constituting JSC Notes or Management JSC Notes held by such Holder;
Second, all other amounts owed (other than Principal) hereunder and under any Other Notes constituting JSC Notes or Management
JSC Notes held by such Holder; and Third, all Principal outstanding hereunder and under any Other Notes constituting JSC Notes
or Management JSC Notes held by such Holder, in each case, immediately prior to any such conversion or redemption, as applicable, in each
case, allocated pro rata among this Management JSC Note and such Other Notes constituting JSC Notes or Management JSC Notes held by such
Holder.

 

2.            INTEREST.

 

(a)            Payment
of Interest. From and after the Issuance Date, Interest shall accrue hereunder at a rate equal to the Interest Rate and
shall be computed on the basis of a 360-day year and twelve 30-day months and shall be payable, if applicable, in arrears on the
last Business Day of any Semi-Annual Period during which Interest accrues hereunder (an “Interest Date”) to the
record holder of this Management JSC Note as of such Interest Date in cash by wire transfer of immediately available funds pursuant
to wire instructions provided by the Holder in writing to the Issuer; provided, however, that with respect to the
Interest payable on any Interest Date on or prior to the second anniversary of the Closing Date, the Issuer may, in lieu of paying
all or a portion of such Interest in cash, elect to increase the Principal by an amount equal to all or a portion of such Interest
(such election, the “Interest Conversion Election” and such amount, the “Interest Conversion
Amount”). Notwithstanding the foregoing, in the event that as of any Interest Date, all or any portion of accrued and
outstanding Interest is not permitted to be paid in cash pursuant to the terms of each Intercreditor Agreement (any such event, an
 “Interest Payment Blockage Event”), the Principal shall be deemed to be increased by an amount equal to such
Interest and shall be deemed included in the Interest Conversion Amount (regardless of whether the Issuer shall have made an
Interest Conversion Election or delivered an Interest Conversion Election Notice). Any portion of the Interest not included (or
deemed included) in the Interest Conversion Amount shall be payable on the applicable Interest Date in cash. The decision whether to
make an Interest Conversion Election shall be at the sole discretion of the Issuer; provided, that the Issuer shall give the
Holder a written notice of its Interest Conversion Election (an “Interest Conversion Election Notice”) at
least ten (10) Trading Days prior to the applicable Interest Date. Except to the extent provided herein with respect to an
Interest Payment Blockage Event, the Issuer’s failure to timely deliver an Interest Conversion Election Notice to the Holder
shall be deemed an election by the Issuer to pay the full amount of the Interest on such Interest Date in cash; provided that,
notwithstanding anything to the contrary herein, the Issuer shall be deemed to have made an Interest Conversion Election with
respect to each Interest Date occurring prior to the delivery of a Cash Interest Election Notice. Any Interest Conversion Amount
added to the Principal pursuant to an Interest Conversion Election shall, from and after the applicable Interest Date, be deemed
part of the Principal, and Interest shall begin to accrue thereon on the Interest Date on which such Interest Conversion Amount
would otherwise have been payable if no Interest Conversion Election had been made. Subject to the terms of each Intercreditor
Agreement, accrued and unpaid Interest, if any, shall also be payable prior to an Interest Date by way of inclusion of the Interest
in the Conversion Amount (as defined in Section 3(b)(i)) on each (i) Conversion Date (as defined in Section 3(c)(i))
in accordance with Section 3(c)(i) and/or (ii) upon any redemption hereunder occurring prior to the Maturity Date,
including, without limitation, upon a Bankruptcy Event of Default redemption.

 

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(b)            Default
Rate. Notwithstanding the foregoing, if (x) any Principal of or Interest on this Management JSC Note or any fees or premiums
or other amount payable by the Issuer hereunder is not paid when due, whether at stated maturity, upon acceleration or otherwise or (y) any
Event of Default exists, then, in each case, all outstanding amounts hereunder shall bear Interest, after as well as before judgment,
at a rate per annum equal to 2.00% (the “Default Rate”) plus the Note Interest Rate. For the avoidance of doubt, interest
pursuant to this Section 2(b) shall be paid at the times and in the manner set forth in Section 2(a).

 

3.            CONVERSION
OF NOTES. At any time or times after the Issuance Date, this Management JSC Note shall be convertible into shares of Common Stock,
on the terms and conditions set forth in this Section 3.

 

(a)            Conversion
Right. At any time or times on or after the Issuance Date, the Holder shall be entitled to convert any portion of the outstanding
and unpaid Conversion Amount for duly authorized, validly issued, fully paid and nonassessable shares of Common Stock in accordance with
Section 3(c), at the Conversion Rate (as defined below); provided that until the Certificate of Incorporation Amendment is
effective, no more than 90,000,000 shares of Common Stock may be issued upon conversion of the Management JSC Notes and the Other Notes.
The Issuer shall not issue any fraction of a share of Common Stock upon any conversion. If the conversion would result in the issuance
of a fraction of a share of Common Stock, the Issuer shall round such fraction of a share of Common Stock up to the nearest whole share.
The Issuer shall pay, or cause to be paid, any and all transfer, stamp and similar taxes that may be payable with respect to the issuance
and delivery of Common Stock upon conversion of any Conversion Amount.

 

(b)            Conversion
Rate. The number of shares of Common Stock issuable upon conversion of any Conversion Amount pursuant to Section 3(a) (the
 “Conversion Rate”) shall be determined by dividing (x) such Conversion Amount by (y) the Conversion Price.

 

(i)            “Conversion
Amount” means the sum of (A) the portion of the Principal to be converted, redeemed or otherwise with respect to which
this determination is being made and (B) accrued and unpaid Interest, if any, with respect to such Principal.

  

(ii)            “Conversion
Price” means, as of any Conversion Date or other date of determination, $0.077, subject to adjustment as provided herein.

 

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(c)            Mechanics
of Conversion.

 

(i)            Optional
Conversion. To convert any Conversion Amount into shares of Common Stock on any date (a “Conversion Date”),
the Holder shall (A) transmit by facsimile or electronic mail (or otherwise deliver), for delivery on or prior to 5:00 p.m.,
New York time, on such date, a copy of an executed notice of conversion in the form attached hereto as Exhibit I (a
 “Conversion Notice”) to the Issuer and (B) if required by Section 3(c)(iii), but without delaying the
Issuer’s obligation to deliver shares of Common Stock on the applicable Share Delivery Date (as defined below),
surrender this Management JSC Note to a common carrier for delivery to the Issuer as soon as practicable on or following such date
(or an indemnification undertaking with respect to this Management JSC Note in the case of its loss, theft, destruction or
mutilation in compliance with the procedures set forth in Section 18(b)). No ink-original Conversion Notice shall be required,
nor shall any medallion guarantee (or other type of guarantee or notarization) of any Conversion Notice be required. On or before
the first (1st) Business Day following the date of delivery of a Conversion Notice, the Issuer shall transmit by facsimile or
electronic mail a confirmation of receipt of such Conversion Notice to the Holder and the Issuer’s transfer agent for the
Common Stock (the “Transfer Agent”). On or before the earlier of (i) the second (2nd) Trading Day and
(ii) the number of Trading Days comprising the Standard Settlement Period, in each case, following the date on which the Holder
has delivered a Conversion Notice to the Issuer (a “Share Delivery Date”), the Issuer shall issue in
uncertificated book-entry form the number of shares of Common Stock to which the Holder shall be entitled and evidence thereof shall
be promptly delivered by the Transfer Agent to the Holder. If requested by the Holder, the Issuer shall issue and deliver to the
address as specified in the Conversion Notice, a certificate, registered in the name of the Holder or its designee, for the number
of shares of Common Stock to which the Holder shall be entitled. If this Management JSC Note is physically surrendered for
conversion as required by Section 3(c)(iii) and the outstanding Principal of this Management JSC Note is greater than the
Principal portion of the Conversion Amount being converted, then the Issuer shall as soon as practicable and in no event later than
three (3) Business Days after delivery of this Management JSC Note and at its own expense, issue and deliver to the Holder a
new Management JSC Note (in accordance with Section 18(d)) representing the outstanding Principal not converted. The Person or
Persons entitled to receive the shares of Common Stock issuable upon a conversion of this Management JSC Note shall be treated for
all purposes as the record holder or holders of such shares of Common Stock on the applicable Conversion Date, irrespective of the
date such Conversion Shares are credited to the Holder’s account with The Depository Trust Company (the
 “DTC”) or the date of delivery of the certificates evidencing such Conversion Shares, as the case may be.

 

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(ii)            Issuer’s
Failure to Timely Convert. If the Issuer shall fail on or prior to the applicable Share Delivery Date to issue and deliver the number
of shares of Common Stock to which the Holder is entitled upon the Holder’s conversion of any Conversion Amount (a “Conversion
Failure”), then the Holder, upon written notice to the Issuer, may void its Conversion Notice with respect to, and retain or
have returned, as the case may be, any portion of this Management JSC Note that has not been converted pursuant to such Conversion Notice;
provided that the voiding of a Conversion Notice shall not affect the Issuer’s obligations to make any payments which have
accrued prior to the date of such notice.

 

(iii)            Registration;
Book-Entry. The Issuer shall maintain a register (the “Register”) for the recordation of the names and
addresses of the holders of each Management JSC Note and the Principal (and stated interest thereon) held by such holders (the
 “Registered Management JSC Notes”). The entries in the Register shall be conclusive and binding for all purposes
absent manifest error. The Issuer and the holders of each Management JSC Note shall treat each Person whose name is recorded in the
Register as the owner of a Management JSC Note for all purposes, including, without limitation, the right to receive payments of
Principal and Interest, if any, hereunder, notwithstanding notice to the contrary. A Registered Management JSC Note may be assigned
or sold in whole or in part only by registration of such assignment or sale on the Register. Upon its receipt of a request to assign
or sell all or part of any Registered Management JSC Note by the Holder, the Issuer shall record the information contained therein
in the Register and issue one or more new Registered Management JSC Notes in the same aggregate Principal amount as the Principal
amount of the surrendered Registered Management JSC Note to the designated assignee or transferee pursuant to Section 18.
Notwithstanding anything to the contrary set forth herein, upon conversion of any portion of this Management JSC Note in accordance
with the terms hereof, the Holder shall not be required to physically surrender this Management JSC Note to the Issuer unless
(A) the full Conversion Amount represented by this Management JSC Note is being converted or (B) the Holder has provided
the Issuer with prior written notice (which notice may be included in a Conversion Notice) requesting reissuance of this Management
JSC Note upon physical surrender of this Management JSC Note. The Holder and the Issuer shall maintain records showing the Principal
and Interest converted and/or paid (as the case may be) and the dates of such conversions and/or payments (as the case may be) or
shall use such other method, reasonably satisfactory to the Holder and the Issuer, so as not to require physical surrender of this
Management JSC Note upon conversion. If the Issuer does not update the Register to record such Principal and Interest
converted and/or paid (as the case may be) and the dates of such conversions and/or payments (as the case may be) within two
(2) Business Days of such occurrence, then the Register shall be automatically deemed updated to reflect such occurrence.

 

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(iv)            Pro
Rata Conversion; Disputes. In the event that the Issuer receives a Conversion Notice from the Holder and one or more holders of Other
Notes for the same Conversion Date and the Issuer can convert some, but not all, of such portions of this Management JSC Note and/or Other
Notes submitted for conversion, then, subject to Section 1(b) and analogous provisions under such Other Notes, the Issuer shall
convert the Notes submitted for conversion on such date in the following order of priority: (A) first, the Issuer shall convert the
maximum possible portion of the FILO C Notes submitted for conversion, pro rata among the holders of FILO C Notes electing to have their
FILO C Notes converted on such date in proportion to the Principal amounts of the FILO C Notes submitted for conversion on such date,
and (B) second, the Issuer shall convert the maximum possible portion of this Management JSC Note and the Other Notes constituting
JSC Notes or Management JSC Notes submitted for conversion, pro rata among the Holder and the holders of such Other Notes constituting
JSC Notes or Management JSC Notes in proportion to the principal amounts of this Management JSC Note and such Other Notes constituting
JSC Notes or Management JSC Notes submitted for conversion on such date. In the event of a dispute as to the number of shares of Common
Stock issuable to the Holder in connection with a conversion of this Management JSC Note, the Issuer shall issue to the Holder the number
of shares of Common Stock not in dispute and resolve such dispute in accordance with Section 23.

 

 

4.            RIGHTS
UPON EVENT OF DEFAULT.

 

(a)            Event
of Default. Each of the following events shall constitute an “Event of Default” and each of the events in clauses
(xiii) and (xiv) shall constitute a “Bankruptcy Event of Default”:

 

(i)            (A) the
suspension of the Common Stock from trading on an Eligible Market for a period of two (2) consecutive Trading Days or for more than
an aggregate of ten (10) Trading Days in any 365-day period or (B) the failure of the Common Stock to be listed on an Eligible
Market;

 

(ii)            the
Issuer’s (A) failure to cure a Conversion Failure by delivery of the required number of shares of Common Stock within five
(5) Business Days after the applicable Conversion Date or (B) notice, written or oral, to the Holder or any holder of the Other
Notes, including by way of public announcement or through any of its agents, at any time, of its intention not to comply with a request
for conversion of this Management JSC Note or any Other Note into shares of Common Stock that is tendered in accordance with the provisions
of this Management JSC Note or analogous provisions under such Other Note;

 

(iii)            [reserved];

 

(iv)            the
Issuer fails to remove (or cause to be removed) any restrictive legend on any certificate or any shares of Common Stock issued to the
Holder upon conversion of any Securities and when required by such Securities or any other Transaction Document, unless otherwise then
prohibited by applicable federal securities laws, and any such failure remains uncured for at least five (5) consecutive Trading
Days;

 

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(v)            any
representation or warranty made or deemed made by any Note Party in any Note Document, or in any certificate or other instrument required
to be given by any Note Party in writing furnished in connection with or pursuant to any Note Document, shall prove to have been false
or misleading in any material respect when so made, deemed made pursuant to the terms of the Note Documents or so furnished by such Note
Party;

 

(vi)            default
shall be made in the payment of any Principal or Interest of this Management JSC Note when and as the same shall become due and payable,
whether at the due date thereof or at a date fixed for prepayment thereof or by acceleration thereof or otherwise;

 

(vii)            default
shall be made in the payment of any fee or any other amount (other than an amount referred to in Section 4(a)(vi)) due under
any Note Document, when and as the same shall become due and payable, and such default shall continue unremedied for a period
of three (3) Business Days;

 

(viii)            default
shall be made in the due observance or performance by the Note Parties of any covenant, condition or agreement contained in Sections 5.05(a),
5.07 or in Article VI of the Term Loan Agreement in the form incorporated into the Note Purchase Agreement pursuant to Section 3.12
thereof;

 

(ix)            default
shall be made in the due observance or performance by any Note Party or any of its Subsidiaries of any covenant, condition or agreement
contained in any Transaction Document (other than those specified in Sections 4(a)(vi), 4(a)(vii) or 4(a)(viii)) and such default
shall continue unremedied for a period of thirty (30) days after the earlier of (A) written notice thereof from the Collateral Agent
or the Required Holders to the Issuer or (B) any Responsible Officer of a Note Party obtaining knowledge of such breach or default;

 

(x)            (i) any
event or condition occurs that (A) results in any Material Indebtedness becoming due prior to its scheduled maturity or (B) enables
or permits (with all applicable grace periods having expired) the holder or holders of any Material Indebtedness (other than the ABL Loan
Obligations, the Term Loan Obligations or the FILO C Notes Obligations) or any trustee or agent on its or their behalf to cause any such
Material Indebtedness (other than the ABL Loan Obligations, the Term Loan Obligations or the FILO C Notes Obligations) to become due,
or to require the prepayment, repurchase, redemption or defeasance thereof, prior to its scheduled maturity or (ii) the Issuer or
any of the Subsidiaries shall fail to pay the principal of any Material Indebtedness (other than the ABL Loan Obligations) at the stated
final maturity thereof; provided, that this Section 4(a)(x) shall not apply to secured Indebtedness that becomes due
as a result of the voluntary sale or transfer of the property or assets securing such Indebtedness if such sale or transfer is permitted
under the Note Documents; provided, further, that any such failure is unremedied and not waived by the holders of such Material
Indebtedness prior to the acceleration of this Management JSC Note pursuant to this Section 4;

 

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(xi)            any
event or condition that results in any Other Note that is a JSC Note or a Management JSC Note becoming due prior to its scheduled maturity;

 

(xii)            there
shall have occurred a Fundamental Transaction;

 

(xiii)            an
involuntary proceeding shall be commenced or an involuntary petition shall be filed in a court of competent jurisdiction seeking (i) relief
in respect of the Issuer or any Subsidiary, or of a substantial part of the property or assets of the Issuer or any material Subsidiary,
under the Bankruptcy Code, or any other federal, state or foreign bankruptcy, insolvency, receivership or similar Law, (ii) the appointment
of a receiver, trustee, custodian, sequestrator, conservator or similar official for the Issuer or any Subsidiary or for a substantial
part of the property or assets of the Issuer or any such Subsidiary or (iii) the winding-up or liquidation of the Issuer or any Subsidiary
(except, in the case of any such Subsidiary, in a transaction permitted by Section 6.05 of the Term Loan Agreement in the form incorporated
into the Note Purchase Agreement pursuant to Section 3.12 thereof); and such proceeding or petition shall continue undismissed for
sixty (60) days or an order or decree approving or ordering any of the foregoing shall be entered;

 

(xiv)            the
Issuer or any Subsidiary, shall (i) voluntarily commence any proceeding or file any petition seeking relief under the Bankruptcy
Code, or any other federal, state or foreign bankruptcy, insolvency, receivership or similar Law, (ii) consent to the institution
of, or fail to contest in a timely and appropriate manner, any proceeding or the filing of any petition described in Section 4(a)(xiii),
(iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for
the Issuer or any such Subsidiary or for a substantial part of the property or assets of the Issuer or any such Subsidiary, (iv) file
an answer admitting the material allegations of a petition filed against it in any such proceeding, (v) make a general assignment
for the benefit of creditors or (vi) become unable or admit in writing its inability or fail generally to pay its debts as they become
due;

 

(xv)            the
failure by the Issuer or any Subsidiary to pay one (1) or more final judgments aggregating in excess of $8.25 million (to the
extent not covered by third-party insurance as to which the insurer has been notified of such judgment and does not deny coverage),
which judgments are not discharged or effectively waived or stayed for a period of sixty (60) consecutive days, or any action
shall be legally taken by a judgment creditor to levy upon assets or properties of the Issuer or any Subsidiary to enforce any such
judgment;

 

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(xvi)            (i) an
ERISA Event and/or a Foreign Plan Event (each, as defined in the Term Loan Agreement as in effect on the Issuance Date) shall have occurred,
(ii) a trustee shall be appointed by a United States district court to administer any Plan(s) (as defined in the Term Loan Agreement
as in effect on the Issuance Date) or (iii) any Note Party or any ERISA Affiliate (as defined in the Term Loan Agreement as in effect
on the Issuance Date) shall have been notified by the sponsor of a Multiemployer Plan (as defined in the Term Loan Agreement as in effect
on the Issuance Date) that it has incurred or will be assessed Withdrawal Liability (as defined in the Term Loan Agreement as in effect
on the Issuance Date) to such Multiemployer Plan (as defined in the Term Loan Agreement as in effect on the Issuance Date) and such Person
does not have reasonable grounds for contesting such Withdrawal Liability or is not contesting such Withdrawal Liability in a timely and
appropriate manner; and in each case in clauses (i) through (iii) above, such event or condition, together with all other such
events or conditions, if any, could reasonably be expected to have a Material Adverse Effect; or

  

(xvii)            (i) any
Note Document shall for any reason cease to be, or shall be asserted in writing by the Issuer or any Subsidiary not to be, a legal, valid
and binding obligation of any party thereto, (ii) any security interest purported to be created by any Security Document and to extend
to assets that are not immaterial to the Issuer and the Subsidiaries on a consolidated basis shall cease to be, or shall be asserted in
writing by the Issuer or any other Note Party not to be (other than in a notice to the Collateral Agent to take requisite actions to perfect
such Lien), a valid and perfected security interest (perfected as and having the priority required by the Note Documents and subject to
such limitations and restrictions as are set forth herein and therein) in the securities, assets or properties covered thereby, except
to the extent (x) any such loss of perfection or priority results from the failure of the Collateral Agent to maintain possession
of certificates actually delivered to it representing securities pledged under the Collateral Agreement, (y) such loss is covered
by a lender’s title insurance policy as to which the insurer has been notified of such loss and does not deny coverage and the Required
Holders shall be reasonably satisfied with the credit of such insurer or (z) such loss of perfected security interest may be remedied
by the filing of appropriate documentation without the loss of priority or (iii) the guarantees pursuant to the Security Documents
by the Issuer or the Subsidiary Guarantors of any of the Management JSC Notes Obligations shall cease to be in full force and effect (other
than in accordance with the terms thereof), or shall be asserted in writing by the Issuer or any Subsidiary Guarantor not to be in effect
or not to be legal, valid and binding obligations.

 

(b)            Redemption
Right. Upon the occurrence of an Event of Default with respect to this Management JSC Note, the Issuer shall within one (1) Business
Day deliver written notice thereof via facsimile or electronic mail and overnight courier (an “Event of Default Notice”)
to the Holder. Subject to the terms of each Intercreditor Agreement, at any time after the earlier of the Holder’s receipt of an
Event of Default Notice and the Holder becoming aware of an Event of Default, the Holder may require the Issuer to redeem all (but not
less than all) of this Management JSC Note by delivering written notice thereof (the “Event of Default Redemption Notice”)
to the Issuer. Subject to the terms of each Intercreditor Agreement, each portion of this Management JSC Note subject to redemption by
the Issuer pursuant to this Section 4(b) shall be redeemed by the Issuer in cash by wire transfer of immediately available funds
at a price equal to (x) 100% of the Principal being redeemed plus (y) accrued and unpaid interest thereon (the “Event
of Default Redemption Price”). Redemptions required by this Section 4(b) shall be made in accordance with the provisions
of Section 10. To the extent redemptions required by this Section 4(b) are deemed or determined by a court of competent
jurisdiction to be prepayments of this Management JSC Note by the Issuer, such redemptions shall be deemed to be voluntary prepayments.
Notwithstanding anything to the contrary in this Section 4, until the Event of Default Redemption Price is paid in full, the Conversion
Amount submitted for redemption under this Section 4(b) may be converted, in whole or in part, by the Holder into Common Stock
pursuant to Section 3. Notwithstanding anything to the contrary contained herein, any exercise of remedies pursuant to this Section 4(b) shall
be subject to Section 6.3 of the Note Purchase Agreement.

 

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(c)            Mandatory
Redemption upon Bankruptcy Event of Default. Notwithstanding anything to the contrary herein, and notwithstanding any conversion
that is then required or in process, upon any Bankruptcy Event of Default, whether occurring prior to or following the
Maturity Date, subject to the terms of each Intercreditor Agreement, the Issuer shall immediately pay to the Holder an amount in
cash representing (x) 100% of all outstanding Principal plus (y) accrued and unpaid Interest, if any, in addition to any
and all other amounts due hereunder (the “Bankruptcy Event of Default Redemption Price”), without the requirement
for any notice or demand or other action by the Holder or any other Person; provided that the Holder may, in its sole
discretion, waive such right to receive payment upon a Bankruptcy Event of Default, in whole or in part, and any such waiver shall
not affect any other rights of the Holder hereunder, including any other rights in respect of such Bankruptcy Event of Default, any
right to conversion, and any right to payment of the Event of Default Redemption Price or any other Redemption Price, as
applicable.

 

(d)            Subject
to the terms of the Intercreditor Agreements and the provisions of Section 6.3(b) of the Note Purchase Agreement, upon the occurrence
of an Event of Default, the Holder shall (through the Collateral Agent to the extent applicable) have all rights and remedies under the
other Note Documents at law or in equity.

 

5.            RIGHTS
UPON FUNDAMENTAL TRANSACTION AND CHANGE IN CONTROL.

 

(a)            Fundamental
Transaction. Subject to the terms of each Intercreditor Agreement, if, at any time while this Management JSC Note is outstanding,
a Fundamental Transaction occurs or is consummated, then, to the extent then permitted under applicable Laws, upon any subsequent conversion
of this Management JSC Note, the Holder shall have the right to receive, for each share of Common Stock that would have been issuable
upon such conversion immediately prior to the occurrence of such Fundamental Transaction, the same kind and amount of securities, cash,
assets or property as it would have been entitled to receive upon the occurrence of such Fundamental Transaction if it had been, immediately
prior to such Fundamental Transaction, the holder of the number of shares of Common Stock into which this Management JSC Note is convertible
immediately prior to such Fundamental Transaction (the “Alternate Consideration”). No such Fundamental Transaction
shall occur unless prior to or simultaneously with the consummation thereof, any successor to the Issuer or the surviving entity shall
assume the obligation to deliver to the Holder, such Alternate Consideration as, in accordance with the foregoing provisions, the Holder
may be entitled to receive, and the other obligations under this Management JSC Note.

 

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(b)            Change
in Control Redemption Right. No sooner than twenty (20) days nor later than fifteen (15) days prior to the consummation of a Change
in Control, but not prior to the public announcement of such Change in Control, the Issuer shall deliver written notice thereof via facsimile
or electronic mail and overnight courier to the Holder (a “Change in Control Notice”). Subject to the terms of each
Intercreditor Agreement, at any time during the period beginning on the earliest to occur of (x) any oral or written agreement by
the Issuer or any other Note Party, upon consummation of which the transaction contemplated thereby would reasonably be expected to result
in a Change in Control, (y) the Holder becoming aware of a Change in Control if the Change in Control Notice is not delivered to
the Holder in accordance with the immediately preceding sentence (as applicable) and (z) the Holder’s receipt of a Change in
Control Notice and ending twenty (20) Trading Days after the date of the consummation of such Change in Control, the Holder may require
the Issuer to redeem (a “Change in Control Redemption”) all or any portion of this Management JSC Note by delivering
written notice thereof (“Change in Control Redemption Notice”) to the Issuer, which Change in Control Redemption Notice
shall indicate the Conversion Amount the Holder is electing to require the Issuer to redeem. Subject to the terms of each Intercreditor
Agreement, the portion of this Management JSC Note subject to redemption pursuant to this Section 5(b) shall be redeemed by
the Issuer in cash by wire transfer of immediately available funds at a price equal to the Conversion Amount being redeemed (the “Change
in Control Redemption Price”). Redemptions required by this Section 5 shall be made in accordance with the provisions of
Section 10 and shall have priority to payments to stockholders of the Issuer in connection with a Change in Control. To the extent
redemptions required by this Section 5(b) are deemed or determined by a court of competent jurisdiction to be prepayments of
this Management JSC Note by the Issuer, such redemptions shall be deemed to be voluntary prepayments. Notwithstanding anything to the
contrary in this Section 5, until the Change in Control Redemption Price is paid in full, the Conversion Amount submitted for redemption
under this Section 5(b) may be converted, in whole or in part, by the Holder into Common Stock pursuant to Section 3.

 

6.            DISTRIBUTION
OF ASSETS; RIGHTS UPON ISSUANCE OF PURCHASE RIGHTS.

 

(a)            Distribution
of Assets. If the Issuer shall declare or make any dividend or other distributions of its assets (or rights to acquire its assets)
pro rata to all holders of shares of Common Stock, by way of return of capital or otherwise (including without limitation, any distribution
of cash, stock or other securities, property, Options, evidence of Indebtedness or any other assets by way of a dividend, spin off, reclassification,
corporate rearrangement, scheme of arrangement or other similar transaction) (the “Distributions”), then the Holder
will be entitled to such Distributions as if the Holder had held the number of shares of Common Stock acquirable upon complete conversion
of this Management JSC Note immediately prior to the date on which a record is taken for such Distribution or, if no such record is taken,
the date as of which the record holders of Common Stock are to be determined for such Distributions.

 

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(b)            Purchase
Rights. If at any time the Issuer grants, issues or sells any Options, Convertible Securities or rights to purchase stock, warrants,
securities or other property pro rata to the record holders of any class of Common Stock (the “Purchase Rights”), then
the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder
could have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete conversion of this Management
JSC Note immediately prior to the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such
record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of
such Purchase Rights.

 

7.            ADJUSTMENTS
TO CONVERSION PRICE. The Conversion Price will be subject to adjustment from time to time as provided in this Section 7.

 

(a)            Adjustment
of Conversion Price upon Issuance of Common Stock. If the Issuer issues or sells, or in accordance with this Section 7(a) is
deemed to have issued or sold, or the Issuer publicly announces the issuance or sale of, any shares of Common Stock (including the issuance
or sale of shares of Common Stock owned or held by or for the account of the Issuer, but excluding shares of Common Stock issued or sold,
or in accordance with this Section 7(a) deemed to have been issued or sold, by the Issuer (x) in connection with any Excluded
Securities, (y) for which the Holder received a Distribution in at least an equivalent amount pursuant to Section 6(a) and
(z) adjusting the Conversion Price pursuant to Section 7(b)), for a consideration per share (the “New Issuance Price”)
less than a price (the “Applicable Price”) equal to the Conversion Price in effect immediately prior to such issue
or sale or deemed issuance or sale (the foregoing a “Dilutive Issuance”), then immediately after such Dilutive Issuance
the Conversion Price then in effect shall be reduced to an amount equal to a price determined by multiplying the Applicable Price by a
fraction, the numerator of which shall be the number of shares of Common Stock outstanding immediately prior to such issue plus the number
of shares of Common Stock which the aggregate consideration received by the Issuer for the total number of additional shares of Common
Stock so issued would purchase at the Applicable Price in effect immediately prior to such issuance, and the denominator of which shall
be the number of shares of Common Stock outstanding immediately prior to such issue plus the number of such additional shares of Common
Stock so issued. For the purpose of the above calculation, the number of shares of Common Stock outstanding immediately prior to such
issue shall be calculated on a fully diluted basis, as if all securities convertible or exchangeable for shares of Common Stock had been
fully converted into shares of Common Stock immediately prior to such issuance and any outstanding warrants, options or other rights for
the purchase of shares of Common Stock had been fully exercised immediately prior to such issuance (and the resulting securities fully
converted into shares of Common Stock, if so convertible) as of such date. For purposes of determining the adjusted Conversion Price under
this Section 7(a), the following shall be applicable:

 

(i)            Issuance
of Options. If the Issuer in any manner grants or sells, or the Issuer publicly announces the issuance or sale of, any Options
and the lowest price per share for which one share of Common Stock is issuable upon the exercise of any such Option or upon
conversion or exchange or exercise of any Convertible Securities issuable upon exercise of any such Option is less than the
Applicable Price, then such share of Common Stock shall be deemed to be outstanding and to have been issued and sold by the Issuer
at the time of the granting or sale of such Option for such price per share. For purposes of this Section 7(a)(i), the
 “lowest price per share for which one share of Common Stock is issuable upon the exercise of any such Options or upon
conversion or exchange or exercise of any Convertible Securities issuable upon exercise of such Option” shall be equal to the
sum of the lowest amounts of consideration (if any) received or receivable by the Issuer with respect to any one share of Common
Stock upon granting or sale of the Option, upon exercise of the Option and upon conversion or exchange or exercise of any
Convertible Security issuable upon exercise of such Option less any consideration paid or payable by the Issuer with respect to such
one share of Common Stock upon the granting or sale of such Option, upon exercise of such Option and upon conversion, exercise or
exchange of any Convertible Security issuable upon exercise of such Option. No further adjustment of the Conversion Price shall be
made upon the actual issuance of such shares of Common Stock or of such Convertible Securities upon the exercise of such Options or
upon the actual issuance of such shares of Common Stock upon conversion or exchange or exercise of such Convertible Securities.

 

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(ii)            Issuance
of Convertible Securities. If the Issuer in any manner issues or sells, or the Issuer publicly announces the issuance or sale of,
any Convertible Securities and the lowest price per share for which one share of Common Stock is issuable upon the conversion or exchange
or exercise thereof is less than the Applicable Price, then such share of Common Stock shall be deemed to be outstanding and to have been
issued and sold by the Issuer at the time of the issuance or sale of such Convertible Securities for such price per share. For the purposes
of this Section 7(a)(ii), the “lowest price per share for which one share of Common Stock is issuable upon the conversion or
exchange or exercise thereof” shall be equal to the sum of the lowest amounts of consideration (if any) received or receivable by
the Issuer with respect to any one share of Common Stock upon the issuance or sale of the Convertible Security and upon the conversion
or exchange or exercise of such Convertible Security less any consideration paid or payable by the Issuer with respect to such one share
of Common Stock upon the issuance or sale of the Convertible Security and upon the conversion or exchange or exercise of such Convertible
Security. No further adjustment of the Conversion Price shall be made upon the actual issuance of such shares of Common Stock upon conversion
or exchange or exercise of such Convertible Securities, and if any such issue or sale of such Convertible Securities is made upon exercise
of any Options for which adjustment of the Conversion Price has been or is to be made pursuant to other provisions of this Section 7(a),
no further adjustment of the Conversion Price shall be made by reason of such issue or sale.

  

(iii)            Change
in Option Price or Rate of Conversion. If the purchase price provided for in any Options, the additional consideration, if any, payable
upon the issue, conversion, exchange or exercise of any Convertible Securities, or the rate at which any Convertible Securities are convertible
into or exchangeable or exercisable for shares of Common Stock increases or decreases at any time, the Conversion Price in effect at the
time of such increase or decrease shall be adjusted to the Conversion Price that would have been in effect at such time had such Options
or Convertible Securities provided for such increased or decreased purchase price, additional consideration or increased or decreased
conversion rate, as the case may be, at the time initially granted, issued or sold. For purposes of this Section 7(a)(iii), if the
terms of any Option or Convertible Security that was outstanding as of the Subscription Date are increased or decreased in the manner
described in the immediately preceding sentence, then such Option or Convertible Security and the shares of Common Stock deemed issuable
upon exercise, conversion or exchange thereof shall be deemed to have been issued as of the date of such increase or decrease. No adjustment
pursuant to this Section 7(a) shall be made if such adjustment would result in an increase of the Conversion Price then in effect.

 

(iv)            Calculation
of Consideration Received. If any Option and/or Convertible Security is issued in connection with the issuance or sale or deemed
issuance or sale of any other securities of the Issuer (as determined by the Holder, the “Primary Security”, and
together with such Option and/or Convertible Security, each a “Unit”), together comprising one integrated
transaction (or one or more transactions if such issuances or sales or deemed issuances or sales of securities of the Issuer either
(A) have at least one investor or purchaser in common, (B) are consummated in reasonable proximity to each other and/or
(C) are consummated under the same plan of financing), the aggregate consideration per share of Common Stock with respect to
such Primary Security shall be deemed to be the lowest of (x) the purchase price of such Unit, (y) if such Primary
Security is an Option and/or Convertible Security, the lowest price per share for which one share of Common Stock is at any time
issuable upon the exercise or conversion of the Primary Security in accordance with Section 7(a)(i) or 7(a)(ii) above
and (z) the lowest Weighted Average Price of the Common Stock on any Trading Day during the three (3) Trading Day period
immediately following the public announcement of such Dilutive Issuance (for the avoidance of doubt, if such public announcement is
released prior to the opening of the Principal Market on a Trading Day, such Trading Day shall be the first Trading Day in such
three (3) Trading Day period). If any shares of Common Stock, Options or Convertible Securities are issued or sold or deemed
to have been issued or sold for cash, the consideration other than cash received therefor will be deemed to be the net amount
received by the Issuer therefor. If any shares of Common Stock, Options or Convertible Securities are issued or sold for a
consideration other than cash, the amount of such consideration received by the Issuer will be the fair value of such consideration,
except where such consideration consists of publicly traded securities, in which case the amount of consideration received by the
Issuer will be the Closing Price of such publicly traded securities on the date of receipt of such publicly traded securities. If
any shares of Common Stock, Options or Convertible Securities are issued to the owners of the non-surviving entity in connection
with any merger in which the Issuer is the surviving entity, the amount of consideration therefor will be deemed to be the fair
value of such portion of the net assets and business of the non-surviving entity as is attributable to such shares of Common Stock,
Options or Convertible Securities, as the case may be. The fair value of any consideration other than cash or publicly traded
securities will be determined jointly by the Issuer and the Required Holders. If such parties are unable to reach agreement within
ten (10) days after the occurrence of an event requiring valuation (the “Valuation Event”), the fair value
of such consideration will be determined within five (5) Business Days after the tenth (10th) day following the Valuation Event
by an independent, reputable appraiser jointly selected by the Issuer and the Required Holders. The determination of such appraiser
shall be final and binding upon all parties absent manifest error and the fees and expenses of such appraiser shall be borne by the
Issuer. Notwithstanding anything to the contrary contained in this Section 7(a), if the New Issuance Price calculated pursuant
to this Section 7(a) would result in a price less than $0.01, the New Issuance Price shall be deemed to be $0.01.

 

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(v)            Record
Date. If the Issuer takes a record of the holders of shares of Common Stock for the purpose of entitling them (A) to receive
a dividend or other distribution payable in shares of Common Stock, Options or in Convertible Securities or (B) to subscribe for
or purchase shares of Common Stock, Options or Convertible Securities, then such record date will be deemed to be the date of the issue
or sale of the shares of Common Stock deemed to have been issued or sold upon the declaration of such dividend or the making of such other
distribution or the date of the granting of such right of subscription or purchase, as the case may be.

 

(vi)            No
Readjustments. For the avoidance of doubt, in the event the Conversion Price has been adjusted pursuant to this Section 7(a) and
the Dilutive Issuance that triggered such adjustment does not occur, is not consummated, is unwound or is cancelled after the facts for
any reason whatsoever, in no event shall the Conversion Price be readjusted to the Conversion Price that would have been in effect if
such Dilutive Issuance had not occurred or been consummated.

 

(b)            Adjustment
of Conversion Price upon Subdivision or Combination of Common Stock. If the Issuer at any time on or after the Subscription Date subdivides
(by any stock split, stock dividend, recapitalization or otherwise) one or more classes of its outstanding shares of Common Stock into
a greater number of shares, the Conversion Price in effect immediately prior to such subdivision will be proportionately reduced. If the
Issuer at any time on or after the Subscription Date combines (by combination, reverse stock split or otherwise) one or more classes of
its outstanding shares of Common Stock into a smaller number of shares, the Conversion Price in effect immediately prior to such combination
will be proportionately increased. Any adjustment under this Section 7(b) shall become effective at the close of business on
the date the subdivision or combination becomes effective.

 

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8.            NONCIRCUMVENTION.
The Issuer hereby covenants and agrees that the Issuer will not, by amendment of its Certificate of Incorporation, Bylaws or through any
reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities, or any other
voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Management JSC Note, and will at all
times in good faith carry out all of the provisions of this Management JSC Note and take all action as may be required to protect the
rights of the Holder of this Management JSC Note.

 

9.            RESERVATION
OF AUTHORIZED SHARES.

 

(a)            Reservation.
So long as any of this Management JSC Note or the Other Notes are outstanding, the Issuer shall take all action necessary to reserve
and keep available out of its authorized and unissued Common Stock, solely for the purpose of effecting the conversion of this
Management JSC Note and the Other Notes a number of shares as shall be necessary to effect the conversion in full of this
Management JSC Note and the Other Notes pursuant to the terms hereof and thereof (the “Required Reserve
Amount”).

 

(b)            Insufficient
Authorized Shares. If at any time while any of the Notes remain outstanding the Issuer does not have a sufficient number of authorized
and unreserved shares of Common Stock to satisfy its obligation to reserve for issuance upon conversion of the Notes at least a number
of shares of Common Stock equal to the applicable Required Reserve Amount (an “Authorized Share Failure”), then the
Issuer shall immediately take all action necessary to increase the Issuer’s authorized shares of Common Stock to an amount sufficient
to allow the Issuer to reserve the applicable Required Reserve Amount for the Notes then outstanding. Without limiting the generality
of the foregoing sentence, as soon as practicable after the date of the occurrence of an Authorized Share Failure, but in no event later
than sixty (60) days after the occurrence of such Authorized Share Failure, the Issuer shall either (x) obtain the majority written
consent of its stockholders for the approval of an increase in the number of authorized shares of Common Stock and provide each stockholder
of the Issuer with an information statement, to the extent required by applicable Law, or (y) hold a meeting of the Issuer’s
stockholders for the approval of an increase in the number of authorized shares of Common Stock. In connection with such meeting, the
Issuer shall provide each stockholder with a proxy statement and shall use its reasonable best efforts to solicit its stockholders’
approval of such increase in authorized shares of Common Stock and to cause the Issuer’s Board of Directors to recommend to the
stockholders that they approve such proposal. If, despite the Issuer’s reasonable best efforts, approval of an increase in the number
of authorized shares of Common Stock is not obtained, the Issuer shall hold an additional meeting of its stockholders every ninety (90)
days until such approval is obtained. Notwithstanding the foregoing, the procedures set forth in Section 5.1 of the Note Purchase
Agreement shall apply to resolving the Authorized Share Failure that exists as of the Closing Date in lieu of the procedures set forth
in this Section 9(b).

 

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10.            REDEMPTIONS.

  

(a)            Mechanics.
The Issuer shall deliver the applicable Event of Default Redemption Price to the Holder within three (3) Business Days after the
Issuer’s receipt of the Holder’s Event of Default Redemption Notice; provided that upon a Bankruptcy Event of Default,
the Issuer shall deliver the applicable Bankruptcy Event of Default Redemption Price in accordance with Section 4(c) (as applicable,
the “Event of Default Redemption Date”). If the Holder has submitted a Change in Control Redemption Notice in accordance
with Section 5(b), the Issuer shall deliver the applicable Change in Control Redemption Price to the Holder (i) concurrently
with the consummation of such Change in Control if such notice is received prior to the consummation of such Change in Control and (ii) within
three (3) Business Days after the Issuer’s receipt of such notice otherwise (such date, the “Change in Control Redemption
Date”). Subject to the terms of each Intercreditor Agreement, the Issuer shall pay the applicable Redemption Price to the Holder
in cash by wire transfer of immediately available funds pursuant to wire instructions provided by the holder in writing to the Issuer
on the applicable due date. In the event of a redemption of less than all of the Conversion Amount of this Management JSC Note, the Issuer
shall promptly cause to be issued and delivered to the Holder a new Management JSC Note (in accordance with Section 18(d)) representing
the outstanding Principal which has not been redeemed and any accrued Interest on such Principal which shall be calculated as if no Redemption
Notice has been delivered. In the event that the Issuer does not pay a Redemption Price to the Holder within the time period required,
at any time thereafter and until the Issuer pays such unpaid Redemption Price in full, the Holder shall have the option, in lieu of redemption,
to require the Issuer to promptly return to the Holder all or any portion of this Management JSC Note representing the Conversion Amount
that was submitted for redemption and for which the applicable Redemption Price has not been paid. Upon the Issuer’s receipt of
such notice, (x) the applicable Redemption Notice shall be null and void with respect to such Conversion Amount, (y) the Issuer
shall immediately return this Management JSC Note, or issue a new Management JSC Note (in accordance with Section 18(d)) to the Holder
representing such Conversion Amount to be redeemed and (z) the Conversion Price of this Management JSC Note or such new Management
JSC Notes shall be adjusted to the lesser of (A) the Conversion Price as in effect on the date on which the applicable Redemption
Notice is voided and (B) the lowest Closing Price of the Common Stock during the period beginning on and including the date on which
the applicable Redemption Notice is delivered to the Issuer and ending on and including the date on which the applicable Redemption Notice
is voided.

 

(b)            Redemption
by Other Holders. Upon the Issuer’s receipt of notice from any of the holders of the Other Notes for redemption or
repayment as a result of an event or occurrence substantially similar to the events or occurrences described in
Section 4(b) or Section 5(b) or pursuant to corresponding provisions set forth in the Other Notes (each, an
 “Other Redemption Notice”), the Issuer shall immediately, but no later than one (1) Business Day of
its receipt thereof, forward to the Holder by facsimile or electronic mail a copy of such notice. Subject to the terms of each
Intercreditor Agreement, if the Issuer receives a Redemption Notice and one or more Other Redemption Notices, during the seven
(7) Business Day period beginning on and including the date that is three (3) Business Days prior to the Issuer’s
receipt of the Holder’s Redemption Notice and ending on and including the date which is three (3) Business Days after the
Issuer’s receipt of the Holder’s Redemption Notice and the Issuer is unable to redeem all principal, interest and other
amounts designated in such Redemption Notice and such Other Redemption Notices received during such seven (7) Business Day
period, then, subject to Section 1(b) and analogous provisions under such Other Notes, the Issuer shall redeem the Notes
in the following order of priority: (i) first, the Issuer shall redeem the maximum possible portion of the FILO C Notes
submitted for redemption pursuant to such Other Redemption Notices received by the Issuer during such seven (7) Business Day
period, pro rata among such FILO C Notes in proportion to the Principal amounts of the FILO C Notes submitted for redemption
pursuant to such Redemption Notice and such Other Redemption Notices, and (ii) second, the Issuer shall redeem the maximum
possible portion of this Management JSC Note and the Other Notes constituting JSC Notes or Management JSC Notes submitted for
redemption pursuant to such Redemption Notice and such Other Redemption Notices, pro rata among this Management JSC Note and such
Other Notes constituting JSC Notes or Management JSC Notes in proportion to the principal amounts of this Management JSC Note and
such Other Notes constituting JSC Notes or Management JSC Notes submitted for redemption pursuant to such Redemption Notice and such
Other Redemption Notices.

 

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(c)            Insufficient
Assets. If upon a Redemption Date, the assets of the Issuer are insufficient to pay the applicable Redemption Price, the Issuer shall
(i) take all appropriate action reasonably within its means to maximize the assets available for paying the applicable Redemption
Price, (ii) redeem out of all such assets available therefor on the applicable Redemption Date the maximum possible portion of the
applicable Redemption Price that it can redeem on such date in accordance with Section 10(b), and (iii) following the applicable
Redemption Date, at any time and from time to time when additional assets of the Issuer become available to pay the balance of the applicable
Redemption Price of this Management JSC Note and the Other Notes, the Issuer shall use such assets, at the end of the then current fiscal
quarter, to pay the balance of such Redemption Price of this Management JSC Note and the Other Notes, or such portion thereof for which
assets are then available, on the basis set forth above at the applicable Redemption Price, and such assets will not be used prior to
the end of such fiscal quarter for any other purpose. Interest on the Principal amount of this Management JSC Note and the Other Notes
that have not been redeemed shall continue to accrue until such time as the Issuer redeems this Management JSC Note and the Other Notes.
Subject to the terms of each Intercreditor Agreement, the Issuer shall pay to the Holder the applicable Redemption Price without regard
to the legal availability of funds unless expressly prohibited by applicable Law or unless the payment of the applicable Redemption Price
could reasonably be expected to result in personal liability to the directors of the Issuer.

 

11.            VOTING
RIGHTS. The Holder shall have no voting rights as the holder of this Management JSC Note, except as required by law and as expressly
provided in this Management JSC Note or the other Transaction Documents.

 

12.            SECURITY.
This Management JSC Note is secured to the extent and in the manner set forth herein and in the Security Documents.

 

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13.            RANK.
All payments due under this Management JSC Note shall rank pari passu with all other senior Indebtedness of the Issuer and its Subsidiaries,
subject to each Intercreditor Agreement.

  

14.            [Reserved.]

 

15.            AFFIRMATIVE
COVENANTS. Until all of the Management JSC Notes have been converted, redeemed or otherwise satisfied in full in accordance with their
terms (whether as a result of conversion or repayment in full of the principal thereof), unless otherwise agreed to by the Required Holders,
the Issuer shall, and shall cause each other Note Party to, directly and indirectly, perform and observe the covenants contained in the
Note Documents that are applicable to such Note Party.

 

16.            VOTE
TO ISSUE, OR CHANGE THE TERMS OF, NOTES. The written consent of the Required Holders shall be required for any change or
amendment or waiver of any provision to this Management JSC Note or any of the Other Notes; provided that,
notwithstanding the foregoing, any amendment or waiver that (i) decreases or forgives the Principal amount of, or decreases the
Interest Rate on, this Management JSC Note, (ii) postpones the scheduled date of payment of the Principal amount of this
Management JSC Note, or any Interest hereon, or (iii) amends or modifies any provision of this Management JSC Note relating to
the conversion of this Management JSC Note into shares of Common Stock in a manner adverse to the Holder (clauses (i), (ii) and
(iii), each, a “Sacred Rights Amendment”), in each case, shall require the consent of the Holder and the Issuer
only and not, for the avoidance of doubt, the Required Holders. Any change, amendment or waiver to any Note or Notes approved by the
Issuer and the Required Holders in respect of a provision of another Note which is identical to a provision of this Management JSC
Note shall be binding on the Holder of this Management JSC Note and all holders of the Other Notes; provided that this
sentence shall not apply to any Sacred Rights Amendment; provided, further, that any change to this Section 16 in any
Note shall require the consent of all Holders.

 

17.            TRANSFER.
This Management JSC Note and any shares of Common Stock issued upon conversion of this Management JSC Note may be offered, sold, assigned
or transferred by the Holder without the consent of the Issuer, subject only to the provisions of Section 5.4 of the Note Purchase
Agreement and as permitted by applicable Law.

 

18.            REISSUANCE
OF THIS MANAGEMENT JSC NOTE.

 

(a)            Transfer.
Subject to the terms of each Intercreditor Agreement, if this Management JSC Note is to be transferred, the Holder shall surrender this
Management JSC Note to the Issuer, whereupon the Issuer will forthwith issue and deliver upon the order of the Holder a new Management
JSC Note (in accordance with Section 18(d) and subject to Section 3(c)(iii)), registered as the Holder may request, representing
the outstanding Principal being transferred by the Holder and, if less than the entire outstanding Principal is being transferred, a new
Management JSC Note (in accordance with Section 18(d)) to the Holder representing the outstanding Principal not being transferred.
The Holder and any assignee, by acceptance of this Management JSC Note, acknowledge and agree that, by reason of the provisions of Section 3(c)(iii) following
conversion or redemption of any portion of this Management JSC Note, the outstanding Principal represented by this Management JSC Note
may be less than the Principal stated on the face of this Management JSC Note.

 

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(b)            Lost,
Stolen or Mutilated Note. Upon receipt by the Issuer of evidence reasonably satisfactory to the Issuer of the loss, theft, destruction
or mutilation of this Management JSC Note, and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder
to the Issuer in customary form (but without any obligation to post a surety or other bond) and, in the case of mutilation, upon surrender
and cancellation of this Management JSC Note, the Issuer shall execute and deliver to the Holder a new Management JSC Note (in accordance
with Section 18(d)) representing the outstanding Principal.

 

(c)            Note
Exchangeable for Different Denominations. This Management JSC Note is exchangeable, upon the surrender hereof by the Holder at the
principal office of the Issuer, for a new JSC Note or JSC Notes (in accordance with Section 18(d)) representing in the aggregate
the outstanding Principal of this Management JSC Note, and each such new JSC Note will represent such portion of such outstanding Principal
as is designated by the Holder at the time of such surrender.

 

(d)            Issuance
of New Notes. Whenever the Issuer is required to issue a new Management JSC Note pursuant to the terms of this Management JSC Note,
such new Management JSC Note (i) shall be of like tenor with this Management JSC Note, (ii) shall represent, as indicated on
the face of such new Management JSC Note, the Principal remaining outstanding (or in the case of a new Management JSC Note being issued
pursuant to Section 18(a) or Section 18(c), the Principal designated by the Holder which, when added to the principal represented
by the other new Management JSC Notes issued in connection with such issuance, does not exceed the Principal remaining outstanding under
this Management JSC Note immediately prior to such issuance of new Management JSC Notes), (iii) shall have an issuance date, as indicated
on the face of such new Management JSC Note, which is the same as the Issuance Date of this Management JSC Note, (iv) shall have
the same rights and conditions as this Management JSC Note, and (v) shall represent accrued and unpaid Interest from the Issuance
Date.

 

19.            REMEDIES,
CHARACTERIZATIONS, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The remedies provided in this Management JSC Note shall be
cumulative and in addition to all other remedies available under this Management JSC Note and any of the other Transaction Documents
at law or in equity (including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the
Holder’s right to pursue actual and consequential damages for any failure by the Issuer to comply with the terms of
this Management JSC Note. The Issuer covenants to the Holder that there shall be no characterization concerning this instrument
other than as expressly provided herein. Amounts set forth or provided for herein with respect to payments, conversion and the like
(and the computation thereof) shall be the amounts to be received by the Holder and shall not, except as expressly provided herein,
be subject to any other obligation of the Issuer (or the performance thereof). The Issuer acknowledges that a breach by it of its
obligations hereunder will cause irreparable harm to the Holder and that the remedy at law for any such breach may be inadequate.
The Issuer therefore agrees that, in the event of any such breach or threatened breach, the Holder shall be entitled, in addition to
all other available remedies, to an injunction restraining any breach, without the necessity of showing economic loss and without
any bond or other security being required.

 

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20.            PAYMENT
OF COLLECTION, ENFORCEMENT AND OTHER COSTS. Subject to the terms of each Intercreditor Agreement, if (a) this Management JSC
Note is placed in the hands of an attorney for collection or enforcement or is collected or enforced through any legal proceeding or the
Holder otherwise takes action to collect amounts due under this Management JSC Note or to enforce the provisions of this Management JSC
Note or (b) there occurs any bankruptcy, reorganization, receivership of the Issuer or other proceedings affecting Issuer creditors’
rights and involving a claim under this Management JSC Note, then the Issuer shall pay the costs incurred by the Holder for such collection,
enforcement or action or in connection with such bankruptcy, reorganization, receivership or other proceeding, including, but not limited
to, attorneys’ fees and disbursements.

 

21.
          CONSTRUCTION; HEADINGS.
This Management JSC Note shall be deemed to be jointly drafted by the Issuer and all the Purchasers of the Notes and shall not be construed
against any person as the drafter hereof. The headings of this Management JSC Note are for convenience of reference and shall not form
part of, or affect the interpretation of, this Management JSC Note.

 

22.            FAILURE
OR INDULGENCE NOT WAIVER. No failure or delay on the part of the Holder in the exercise of any power, right or privilege hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further
exercise thereof or of any other right, power or privilege.

 

23.            DISPUTE
RESOLUTION. In the case of a dispute as to the determination of the Closing Price or the Weighted Average Price or the arithmetic
calculation of the Conversion Rate, the Conversion Price or any Redemption Price, the Issuer shall submit the disputed determinations
or arithmetic calculations via facsimile or electronic mail within one (1) Business Day of receipt, or deemed receipt, of the Conversion
Notice or Redemption Notice or other event giving rise to such dispute, as the case may be, to the Holder. If the Holder and the Issuer
are unable to agree upon such determination or calculation within one (1) Business Day of such disputed determination or arithmetic
calculation being submitted to the Holder, then the Issuer shall, within one (1) Business Day submit via facsimile or electronic
mail (a) the disputed determination of the Closing Price or the Weighted Average Price to an independent, reputable investment bank
selected by the Holder and approved by the Issuer, such approval not to be unreasonably withheld, conditioned or delayed, or (b) the
disputed arithmetic calculation of the Conversion Rate, Conversion Price or any Redemption Price to an independent, outside accountant,
selected by the Holder and approved by the Issuer, such approval not to be unreasonably withheld, conditioned or delayed. The Issuer,
at the Issuer’s expense, shall cause the investment bank or the accountant, as the case may be, to perform the determinations or
calculations and notify the Issuer and the Holder of the results no later than five (5) Business Days from the time it receives the
disputed determinations or calculations. Such investment bank’s or accountant’s determination or calculation, as the case
may be, shall be binding upon all parties absent demonstrable error.

 

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24.            NOTICES;
PAYMENTS.

  

(a)            Notices.
Whenever notice is required to be given under this Management JSC Note, unless otherwise provided herein, such notice shall be given
in accordance with Section 6.7 of the Note Purchase Agreement. The Issuer shall provide the Holder with prompt written notice
of all actions taken pursuant to this Management JSC Note, including in reasonable detail a description of such action and the
reason therefore. Without limiting the generality of the foregoing, the Issuer shall give written notice to the Holder
(i) immediately upon any adjustment of the Conversion Price, setting forth in reasonable detail, and certifying, the
calculation of such adjustment and (ii) at least five (5) Business Days prior to the date on which the Issuer closes its
books or takes a record (A) with respect to any dividend or distribution upon the Common Stock, (B) with respect to any
pro rata subscription offer to holders of Common Stock or (C) for determining rights to vote with respect to any
Fundamental Transaction, dissolution or liquidation, provided in each case that such information shall be made known to the public
prior to or in conjunction with such notice being provided to the Holder.

 

(b)            Payments.
Whenever any payment of cash is to be made by the Issuer to any Person pursuant to this Management JSC Note, such payment shall be made
in lawful money of the United States of America via wire transfer of immediately available funds by providing the Issuer with prior written
notice setting out such request and the Holder’s wire transfer instructions; provided, that the Holder may elect to receive
a payment of cash by a check drawn on the account of the Issuer and sent via overnight courier service to such Person at such address
as previously provided to the Issuer in writing (which address, in the case of each of the Purchasers, shall initially be as set forth
on Schedule I attached to the Note Purchase Agreement). Whenever any amount expressed to be due by the terms of this Management JSC Note
is due on any day which is not a Business Day, the same shall instead be due on the next succeeding day which is a Business Day.

 

25.            CANCELLATION.
After all Principal, accrued Interest and other amounts at any time owed on this Management JSC Note have been paid in full, this Management
JSC Note shall automatically be deemed canceled, shall be surrendered to the Issuer for cancellation and shall not be reissued.

 

26.            WAIVER
OF NOTICE. To the extent permitted by law, the Issuer hereby waives demand, notice, protest and all other demands and notices in connection
with the delivery, acceptance, performance, default or enforcement of this Management JSC Note and the Note Purchase Agreement.

 

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27.            GOVERNING
LAW; JURISDICTION; JURY TRIAL. This Management JSC Note shall be construed and enforced in accordance with, and all questions concerning
the construction, validity, interpretation and performance of this Management JSC Note shall be governed by, the internal laws of the
State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York
or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New York. The Issuer
hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in The City of New York, Borough of Manhattan,
for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein,
and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject
to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such
suit, action or proceeding is improper. The Issuer hereby irrevocably waives personal service of process and consents to process being
served in any such suit, action or proceeding by mailing a copy thereof to such party at the address set forth in Section 6.7 of
the Note Purchase Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing
contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Nothing contained herein
shall be deemed or operate to preclude the Holder from bringing suit or taking other legal action against the Issuer in any other jurisdiction
to collect on the Issuer’s obligations to the Holder, to realize on any collateral or any other security for such obligations, or
to enforce a judgment or other court ruling in favor of the Holder. THE ISSUER AND THE HOLDER HEREBY IRREVOCABLY WAIVES ANY RIGHT IT
MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING
OUT OF THIS MANAGEMENT JSC NOTE OR ANY TRANSACTION CONTEMPLATED HEREBY.

  

28.            SEVERABILITY.
If any provision of this Management JSC Note is prohibited by law or otherwise determined to be invalid or unenforceable by a court of
competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to
the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect
the validity of the remaining provisions of this Management JSC Note so long as this Management JSC Note as so modified continues to express,
without material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity
or unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations
of the parties or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will endeavor
in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect
of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

 

29.            SOFR
AMENDMENT. Notwithstanding anything to the contrary herein or in the Note Purchase Agreement, if the Holder determines in good faith
that:

 

(a)            adequate
and reasonable means do not exist for ascertaining SOFR for any applicable interest period because the SOFR quote on the applicable
screen page (or other source) used to determine SOFR (“SOFR Screen Rate”) is not available or
published on a current basis and such circumstances are unlikely to be temporary;

 

(b)            the
administrator of the SOFR Screen Rate or a Governmental Authority having jurisdiction over the Holder has made a public statement identifying
a specific date (“SOFR Scheduled Unavailability Date”) after which SOFR or the SOFR Screen Rate will no longer be available
or used for determining the interest rate of loans; or

 

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(c)            similar
debt instruments then currently being executed generally, or debt instruments that include language similar to that contained in this
Section are generally being amended to, incorporate or adopt a new benchmark interest rate to replace SOFR;

 

then, reasonably promptly after such determination,
the Holder and the Issuer shall amend this Management JSC Note to replace SOFR with an alternate benchmark rate (including any mathematical
or other adjustments to the benchmark (if any) incorporated therein), giving due consideration to any evolving or then existing convention
for similar U.S. dollar denominated debt instruments for such alternative benchmarks (“SOFR Successor Rate”), together
with any proposed SOFR Successor Rate Conforming Changes and the amendment shall be immediately effective.

 

If no SOFR Successor Rate
has been determined and the circumstances under clause (a) above exist or the SOFR Scheduled Unavailability Date has occurred, the
Holder will promptly notify the Issuer. Thereafter, the SOFR component shall no longer be used in determining the Note Interest Rate and
the Holder will determine (in its reasonable judgment), after consultation with the Issuer, a temporary replacement for the SOFR component
of the Note Interest Rate until a SOFR Successor Rate can be implemented.

 

30.            CERTAIN
DEFINITIONS. Unless otherwise defined herein, terms defined in the Note Purchase Agreement and used herein shall have the meanings
given to them in the Note Purchase Agreement (whether directly or by reference to another agreement or document), and the following terms
shall have the following meanings:

 

(a)            “Approved
Stock Plan” shall mean any employee benefit plan that has been approved by the board of directors of the Issuer prior to or
subsequent to the Subscription Date pursuant to which shares of Common Stock and standard options to purchase Common Stock may be issued
to any employee, officer or director for services provided to the Issuer in their capacity as such.

 

(b)            “Bloomberg”
shall mean Bloomberg Financial Markets.

 

(c)            “Cash
Interest Election Notice” shall mean a written notice delivered by the Issuer to the Holder stating that from and after the
date of such notice the Issuer intends to pay interest hereunder on each Interest Date in cash unless the Holder delivers an Interest
Conversion Notice in accordance with Section 2(a) with respect to an Interest Date.

 

(d)            “Change
in Control” shall mean any Fundamental Transaction other than (i) any reorganization, recapitalization or reclassification
of the Equity Interests of the Issuer in which holders of the Issuer’s voting power immediately prior to such reorganization, recapitalization
or reclassification continue after such reorganization, recapitalization or reclassification to hold, directly or indirectly, in all material
respect, the voting power of the surviving entity (or entities with the authority or voting power to elect the members of the board of
directors (or their equivalent if other than a corporation) of such entity or entities) after such reorganization, recapitalization or
reclassification or (ii) pursuant to a migratory merger effected solely for the purpose of changing the jurisdiction of incorporation
of the Issuer.

 

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(e)            “Closing
Price” means, for any security as of any date, the last closing trade price for such security on the Principal Market, as
reported by Bloomberg, or, if the Principal Market begins to operate on an extended hours basis and does not designate the closing
trade price, then the last trade price, respectively, of such security prior to 4:00:00 p.m., New York Time, as reported by
Bloomberg, or, if the Principal Market is not the principal securities exchange or trading market for such security, the last
closing price or last trade price of such security on the principal securities exchange or trading market where such security is
listed or traded as reported by Bloomberg, or if the foregoing do not apply, the last closing price or last trade price,
respectively, of such security in the over-the-counter market on the electronic bulletin board for such security as reported by
Bloomberg, or, if no closing price or last trade price, respectively, is reported for such security by Bloomberg, the average of the
bid prices, or the ask prices, respectively, of any market makers for such security as reported in the Pink Open Market (f/k/a OTC
Pink) published by OTC Markets Group, Inc. (or a similar organization or agency succeeding to its functions of reporting
prices). If the Closing Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing
Price of such security on such date shall be the fair market value as mutually determined by the Issuer and the Holder. If the
Issuer and the Holder are unable to agree upon the fair market value of such security, then such dispute shall be resolved pursuant
to Section 23. All such determinations to be appropriately adjusted for any stock dividend, stock split, stock combination,
reclassification or other similar transaction during the applicable calculation period.

  

(f)            “Common
Stock” means (i) the Issuer’s shares of Common Stock, par value $0.01 per share, and (ii) any share capital
into which such Common Stock shall have been changed or any share capital resulting from a reclassification of such Common Stock.

 

(g)            “Conversion
Shares” shall mean shares of Common Stock issuable by the Issuer pursuant to the terms of any of the Notes, including any related
Interest so converted or redeemed.

 

(h)            “Convertible
Securities” shall mean any stock or securities (other than Options) directly or indirectly convertible into or exercisable or
exchangeable for shares of Common Stock.

 

(i)            “Eligible
Market” shall mean the Principal Market, The New York Stock Exchange, The NASDAQ Global Market, The NASDAQ Global Select Market,
or the NYSE American.

 

(j)            “Equity
Interests” shall mean (a) all shares of capital stock (whether denominated as common capital stock or preferred capital
stock), equity interests, beneficial, partnership or membership interests, joint venture interests, participations or other ownership
or profit interests in or equivalents (regardless of how designated) of or in a Person (other than an individual), whether voting or non-voting
and (b) all securities convertible into or exchangeable for any of the foregoing and all warrants, Options or other rights to purchase,
subscribe for or otherwise acquire any of the foregoing, whether or not presently convertible, exchangeable or exercisable.

 

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(k)            “Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended.

  

(l)            “Excluded
Securities” shall mean (i) shares of Common Stock or standard options to purchase Common Stock issued to directors, officers
or employees of the Issuer for services rendered to the Issuer in their capacity as such pursuant to an Approved Stock Plan, provided
that (A) all such issuances (taking into account the shares of Common Stock issuable upon exercise of such options) after the Subscription
Date pursuant to this clause (i) do not, in the aggregate, exceed more than 5% of the Common Stock issued and outstanding immediately
prior to the Subscription Date and (B) the exercise price of any such options is not lowered, none of such options are amended to
increase the number of shares issuable thereunder and none of the terms or conditions of any such options are otherwise materially changed
in any manner that adversely affects any of the Purchasers; (ii) shares of Common Stock issued upon the conversion or exercise of
Convertible Securities or Options (other than standard options to purchase Common Stock issued pursuant to an Approved Stock Plan that
are covered by clause (i) above) issued prior to the Subscription Date, provided that the conversion price of any such Convertible
Securities (other than standard options to purchase Common Stock issued pursuant to an Approved Stock Plan that are covered by clause
(i) above) is not lowered (other than in accordance with the terms thereof in effect as of the Issuance Date (without regard to any
amendment or waiver thereof on or after the Issuance Date) from the conversion price in effect as of the Issuance Date, none of such Convertible
Securities or Options (other than standard options to purchase Common Stock issued pursuant to an Approved Stock Plan that are covered
by clause (i) above) are amended to increase the number of shares issuable thereunder and none of the terms or conditions of any
such Convertible Securities or Options (other than standard options to purchase Common Stock issued pursuant to an Approved Stock Plan
that are covered by clause (i) above) are otherwise materially changed in any manner that adversely affects any of the Purchasers;
or (iii) the shares of Common Stock issuable upon conversion of the Notes or otherwise pursuant to the terms of the Notes; provided,
that the terms of the Notes are not amended, modified or changed on or after the Subscription Date (other than in accordance with the
terms thereof, including antidilution adjustments pursuant to the terms thereof in effect as of the Subscription Date).

 

(m)            [Reserved].

 

(n)            “Fundamental
Transaction” shall mean:

 

(i)            a
sale or other disposition of all or substantially all of the assets of the Issuer and its Subsidiaries or a sale of 100% of the Equity
Interests of TMI Holdings, Inc., a Delaware corporation, or Tuesday Morning, Inc., a Texas corporation;

 

(ii)            any
merger, consolidation or similar transaction upon which the outstanding Equity Interests of the Issuer shall no longer be registered pursuant
to the Exchange Act; or

 

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(iii)            a
Change in Control (or comparable event) as defined in the ABL Credit Agreement or the Term Loan Agreement.

  

(o)            “Governmental
Authority” shall mean any federal, state, local or foreign court or governmental agency, authority, instrumentality or regulatory
or legislative body or any entity or officer exercising executive, legislative, judicial, regulatory or administrative functions of or
pertaining to any government or any court, in each case whether associated with a state of the United States, the United States, or a
foreign entity or government.

 

(p)            “Interest
Period” shall mean each period commencing on an Interest Date and ending on the date preceding the next Interest Date; provided
that the first Interest Period shall begin on the Issuance Date.

 

(q)            “Interest
Rate” shall mean the Note Interest Rate plus (if applicable) the Default Rate; provided that the Interest Rate for the
initial Interest Period shall only apply until the first Interest Date occurring after the Closing Date.

 

(r)            “Material
Adverse Effect” shall mean a material adverse change in, or material adverse effect on (a) the business, assets, financial
condition or results of operations, in each case of the Issuer and the Subsidiaries, taken as a whole, (b) the validity or enforceability
of the Note Documents, (c) the ability of the Note Parties, taken as a whole, to perform their obligations under the Note Documents,
(d) the Collateral, or the Collateral Agent’s Liens (on behalf of itself and other Secured Parties) on the Collateral or the
priority of such Liens, or (e) the rights and remedies (taken as a whole) of the Collateral Agent and the Holders under the Loan
Documents.

 

(s)          “Material
Indebtedness” shall mean (i) the ABL Loan Obligations, (ii) the Term Loan Obligations and (iii) any other Indebtedness,
of any one or more of the Issuer and its Subsidiaries in an aggregate principal amount exceeding $5,000,000.

 

(t)            “Note
Interest Rate” shall mean a rate equal to the sum of (x) SOFR and (y) 6.50% per annum.

 

(u)            “Note
Purchase Agreement” shall mean that certain Note Purchase Agreement dated as of the Subscription Date and as amended and restated
on September 20, 2022, by and among the Issuer, the investors listed on the signature pages attached thereto and TASCR Ventures
CA, LLC, as collateral agent, pursuant to which the Issuer issued the Notes, as amended from time to time.

 

(v)            “Notes”
shall mean, collectively, this Management JSC Note and the Other Notes.

 

(w)            “Options”
shall mean any rights, warrants or options to subscribe for or purchase shares of Common Stock or Convertible Securities.

 

(x)            “Other
Notes” shall mean, collectively, (i) the Management JSC Notes other than this Management JSC Note, (ii) the FILO C
Notes and (iii) the JSC Notes.

 

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(y)            “Person”
shall mean an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization,
any other entity and a government or any department or agency thereof.

  

(z)            “Principal
Market” shall mean The Nasdaq Capital Market.

 

(aa)     “Redemption
Dates” shall mean, collectively, the Event of Default Redemption Dates and the Change in Control Redemption Dates, as applicable,
each of the foregoing, individually, a Redemption Date.

 

(bb)     “Redemption
Notices” shall mean, collectively, the Event of Default Redemption Notices and the Change in Control Redemption Notices, each
of the foregoing, individually, a Redemption Notice.

 

(cc)     “Redemption
Prices” shall mean, collectively, the Event of Default Redemption Prices and the Change in Control Redemption Prices, each of
the foregoing, individually, a Redemption Price.

 

(dd)     “Securities
Act” shall mean the Securities Act of 1933, as amended.

 

(ee)     ”Semi-Annual
Period” shall mean each of: the period beginning on and including January 1 and ending on and including June 30 and
the period beginning on and including July 1 and ending on and including December 31; provided that the Semi-Annual Period
ending December 31, 2022 shall commence on the Issuance Date.

 

(ff)     “SOFR”
shall mean a rate equal to the secured overnight financing rate as administered by the SOFR Administrator for an interest period of six
(6) months (which shall in no event be less than zero), in each case, as of the date that is two (2) Business Days before the
first day of each Interest Period.

 

(gg)     “SOFR
Administrator” shall mean the Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing
rate).

 

(hh)     “SOFR
Successor Rate Conforming Changes” shall mean, with respect to any proposed SOFR Successor Rate, any conforming changes to this
Management JSC Note, including changes to the definitions of “Note Interest Rate” or “Interest Period”, timing
and frequency of determining rates and payments of interest and other administrative matters as may be appropriate, in the Holders’
reasonable discretion, to reflect the adoption of such SOFR Successor Rate and to permit its administration in a manner substantially
consistent with market practice (or, if the Holder reasonably determines that adoption of any portion of such market practice is not administratively
feasible or that no market practice for the administration of such SOFR Successor Rate exists, in such other manner of administration
as the Holders reasonably determines in consultation with the Issuer). Such changes shall provide that the SOFR Successor Rate cannot
be less than zero for purposes of this Management JSC Note.

 

(ii)            “Standard
Settlement Period” shall mean the standard settlement period, expressed in a number of Trading Days, on the principal securities
exchange or securities market on which the Common Stock is then traded as in effect on the date of delivery of the applicable Conversion
Notice.

 

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(jj)     “Subscription
Date” shall mean September 9, 2022.

 

(kk)     “Subsidiary”
shall mean any direct or indirect subsidiary of the Issuer or a Note Party, as applicable.

 

(ll)     “subsidiary”
shall mean, with respect to any Person (the “parent”) at any date, any corporation, limited liability company, partnership,
association or other entity the accounts of which would be consolidated with those of the parent in the parent’s consolidated financial
statements if such financial statements were prepared in accordance with GAAP as of such date, as well as any other corporation, limited
liability company, partnership, association or other entity of which securities or other ownership interests representing more than 50%
of the equity or more than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the general partnership
interests are, as of such date, owned, controlled or held, by the parent and/or one or more subsidiaries of the parent.

 

(mm)     “Trading
Day” shall mean any day on which the Common Stock is traded on the Principal Market, or, if the Principal Market is not the
principal trading market for the Common Stock on such day, then on the principal securities exchange or securities market on which the
Common Stock is then traded.

 

(nn)     “United
States” and “U.S.” shall mean the United States of America.

 

(oo)            “Weighted
Average Price” shall mean, for any security as of any date, the dollar volume-weighted average price for such security on
the Principal Market during the period beginning at 9:30:01 a.m., New York Time (or such other time as the Principal Market publicly
announces is the official open of trading), and ending at 4:00:00 p.m., New York Time (or such other time as the Principal Market
publicly announces is the official close of trading) as reported by Bloomberg through its “Volume at Price” function,
or, if the foregoing does not apply, the dollar volume-weighted average price of such security in the over-the-counter market on the
electronic bulletin board for such security during the period beginning at 9:30:01 a.m., New York Time (or such other time as such
market publicly announces is the official open of trading), and ending at 4:00:00 p.m., New York Time (or such other time as such
market publicly announces is the official close of trading) as reported by Bloomberg, or, if no dollar volume-weighted average price
is reported for such security by Bloomberg for such hours, the average of the highest closing price and the lowest closing ask price
of any of the market makers for such security as reported in the OTC Link or Pink Open Market (f/k/a OTC Pink) published by OTC
Markets Group, Inc. (or a similar organization or agency succeeding to its functions of reporting prices). If the Weighted
Average Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Weighted Average Price of
such security on such date shall be the fair market value as mutually determined by the Issuer and the Holder. If the Issuer and the
Holder are unable to agree upon the fair market value of such security, then such dispute shall be resolved pursuant to
Section 23. All such determinations to be appropriately adjusted for any stock dividend, stock split, stock combination,
reclassification or other similar transaction during the applicable calculation period.

 

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31.            Rule of
Construction. Any definition or provision in this Management JSC Note or any other Note Document that is incorporated by reference
to another document or agreement (including, for the avoidance of doubt, the ABL Credit Agreement and the Term Loan Agreement) shall be
incorporated as such definition or provision exists in such document or agreement on the Closing Date without giving effect to any further
amendments and/or supplements thereto, unless otherwise consented to by the Required Holders.

 

32.            Intercreditor
Agreements. This Management JSC Note is subject to the terms and conditions set forth in each Intercreditor Agreement in all respects
and, in the event of any conflict between the terms of any Intercreditor Agreement and this Management JSC Note, the terms of the applicable
Intercreditor Agreement shall govern. Notwithstanding anything herein to the contrary, the lien and security interest granted to the Collateral
Agent, the ABL Administrative Agent or the Term Loan Agent, as applicable, pursuant to any Note Document, ABL Loan Document or Term Loan
Document, and the exercise of any right or remedy in respect of the Collateral by the Administrative Agent, the ABL Administrative Agent
or the Term Loan Agent, as applicable under any Note Document, under any ABL Loan Document or under any Term Loan Document and any other
agreement entered into in connection with any of the foregoing are subject to the provisions of each Intercreditor Agreement and in the
event of any conflict between the terms of any Intercreditor Agreement, any other Note Document, any ABL Loan Document, any Term Loan
Document and any other agreement entered into in connection with any of the foregoing, the terms of the applicable Intercreditor Agreement
shall govern and control with respect to the exercise of any such right or remedy or the Note Parties’ covenants and obligations.
In addition, all payments required to be made by the Note Parties hereunder (whether in respect of principal, interest, fees or otherwise)
are subject to the provisions of each Intercreditor Agreement.

 

[Signature Page Follows]

 

    30

     

    

 

IN WITNESS WHEREOF, the Issuer has caused this
Management JSC Note to be duly executed as of the Issuance Date set out above.

 

	 	Tuesday Morning Corporation
	 	 
	 	By:	  
	 	 	Name:
	 	 	Title:

 

Signature Page to Management JSC Note

 

     

     

    

 

Exhibit I

 

TUESDAY
MORNING CORPORATION

CONVERSION NOTICE

 

Reference is made to the Management JSC Note (the
 “Note”) issued to the undersigned by Tuesday Morning Corporation, a Delaware corporation (the “Issuer”).
In accordance with and pursuant to the Note, the undersigned hereby elects to convert the Conversion Amount (as defined in the Note) of
the Note indicated below into shares of Common Stock par value $0.01 per share (the “Common Stock”) of the Issuer,
as of the date specified below.

 

	Date of Conversion:	 

 

	Aggregate Conversion Amount to be converted or number of Conversion Shares to be
  issued upon conversion:	 

 

Please confirm the following information:

 

	Conversion Price:	 

 

	If Aggregate Conversion Amount is provided above, number of
  shares of Common Stock to be issued:	 

 

Please issue the Common Stock into which the Note is being converted
to the Holder, or for its benefit, as follows:

 

 ̈ Check here if
requesting delivery as a certificate to the following name and to the following address:

 

	Issue to:	 
	 	 
	 	 
	 	 
	Address:	 

 

	Facsimile Number and Electronic Mail:	 

 

    I-1

     

    

 

 ̈ Check here if
requesting delivery by Deposit/Withdrawal at Custodian as follows:

 

	DTC Participant:	 

 

	DTC Number:	 

 

	Account Number:	 

 

	Authorization:	 

 

	By:	 

 

	Title:	 

 

	Dated:	 

 

	Account Number:	 

(if electronic book entry transfer)

 

	Transaction Code Number:	 

(if electronic book entry transfer)

 

    I-2

     

    

 

ACKNOWLEDGMENT

  

The Issuer hereby acknowledges
this Conversion Notice and hereby directs Computershare, Inc. to issue the above indicated number of shares of Common Stock in accordance
with the Transfer Agent Instructions dated September __, 2022 from the Issuer and acknowledged and agreed to by Computershare, Inc.

 

	 	Tuesday Morning Corporation
	 	 
	 	By:	     
	 	 	Name:
	 	 	Title:

 

    I-3Exhibit 10.1

 

Execution
Version

 

AMENDED AND RESTATED NOTE PURCHASE AGREEMENT

 

dated
as of September 20, 2022

 

by and among

 

TUESDAY MORNING CORPORATION, as Issuer

 

TUESDAY MORNING, INC.,

 

THE PURCHASERS PARTY HERETO

 

and

 

TASCR VENTURES CA, LLC, as Collateral Agent

 

     

     

    

 

TABLE OF CONTENTS

 

Page

 

Article I

PURCHASE; CLOSING

 

	Section 1.1	Purchase	1
	Section 1.2	Closing	2
	Section 1.3	Closing Conditions	3
	Section 1.4	Independent Nature of Purchasers’ Obligations and Rights	7
	 	 	 
	Article II
	REPRESENTATIONS AND WARRANTIES
	 	 
	Section 2.1	Representations and Warranties of Issuer	
	Section 2.2	Representations and Warranties of the Purchasers	7
	 	 	15
	Article III
	COVENANTS
	 	 	 
	Section 3.1	Filings; Other Actions	18
	Section 3.2	Conduct of the Business	19
	Section 3.3	Negative Covenants	19
	Section 3.4	Corporate Actions	19
	Section 3.5	Confidentiality	20
	Section 3.6	Nasdaq Listing of Shares	20
	Section 3.7	State Securities Laws	20
	Section 3.8	Use of Proceeds	20
	Section 3.9	Further Assurances	20
	Section 3.10	Notice of Breach	20
	Section 3.11	Post-Closing Covenants	21
	Section 3.12	Term Loan Agreement Covenants Incorporated by Reference	21
	Section 3.13	Directors’ and Officer’s Indemnification and Insurance	22
	 	 	 
	Article IV
	INDEMNIFICATION, COSTS AND EXPENSES
	 	 	 
	Section 4.1	Indemnification by Issuer	23
	Section 4.2	Indemnification by the Purchasers	23
	Section 4.3	Indemnification Procedure	23
	Section 4.4	Tax Matters	24
	 	 	 
	Article V
	ADDITIONAL AGREEMENTS
	 
	Section 5.1	Certificate of Incorporation Amendment	25
	Section 5.2	Legend	25
	Section 5.3	Tax Matters	26

 

    i 

     

    

 

	Section 5.4	Removal of Legend	26
	Section 5.5	Collateral Agent.	27
	Section 5.6	Board	28
	 	 	 
	Article VI
	MISCELLANEOUS
	 	 	 
	Section 6.1	Survival; Limitations on Liability	29
	Section 6.2	Expenses	29
	Section 6.3	Amendment; Waiver; Voting; Control of Remedies	29
	Section 6.4	Counterparts	30
	Section 6.5	Governing Law; Submission to Jurisdiction	30
	Section 6.6	WAIVER OF JURY TRIAL	31
	Section 6.7	Notices	31
	Section 6.8	Entire Agreement	33
	Section 6.9	Assignment	33
	Section 6.10	Interpretation; Other Definitions	33
	Section 6.11	Captions	43
	Section 6.12	Severability	43
	Section 6.13	No Third Party Beneficiaries	43
	Section 6.14	Public Announcements	43
	Section 6.15	Specific Performance	44
	Section 6.16	Termination	44
	Section 6.17	Effects of Termination	45
	Section 6.18	Non-Recourse	45
	Section 6.19	Reliance	45
	Section 6.20	Recapitalization, Exchanges, Etc.	45
	Section 6.21	Payment Set Aside	45
	Section 6.22	Intercreditor Agreements	46
	Section 6.23	Rules of Construction	46

 

Schedule I: Purchaser Allocations

 

Exhibit A:
Form of FILO C Note

 

Exhibit B:
Form of Registration Rights Agreement

 

    ii 

     

    

 

AMENDED AND RESTATED NOTE PURCHASE AGREEMENT

 

This
AMENDED AND RESTATED NOTE PURCHASE AGREEMENT (this “Agreement”), dated as of September 20, 2022,
is by and among Tuesday Morning Corporation, a Delaware corporation (“Issuer”), Tuesday Morning, Inc., a Texas
corporation and indirect wholly owned subsidiary of Issuer (“TUEM Inc.”), the purchasers set forth on Schedule
I hereto (each, a “Purchaser” and, collectively, the “Purchasers”) and TASCR Ventures CA, LLC
as Collateral Agent.

 

RECITALS

 

WHEREAS, Issuer,
TUEM Inc., the Purchasers and TASCR Ventures CA, LLC, as Collateral Agent, previously entered into that certain Note Purchase Agreement,
dated as of September 9, 2022 (the “Original Agreement”);

 

WHEREAS,
the parties hereto desire to amend and restate the Original Agreement in its entirety pursuant to Section 6.3 of the Original Agreement;

 

WHEREAS, Issuer
desires to sell, and the Purchasers desire to purchase from Issuer (i) a new series of junior secured convertible notes of Issuer,
in the aggregate principal amount of $7,500,000, substantially in the form attached hereto as Exhibit A (the “FILO
C Notes”), (ii) a new series of junior secured convertible notes of Issuer, in the aggregate principal amount of $24,500,000,
in a form substantially similar to the FILO C Notes and reasonably acceptable to the Lead Investor and Issuer (the “JSC Notes”),
and a new series of junior secured convertible notes of Issuer, in the aggregate principal amount of $3,000,000, in a form substantially
similar to the FILO C Notes and reasonably acceptable to the Lead Investor and Issuer (the “Management JSC Notes”,
and together with the FILO C Notes and the JSC Notes, collectively, the “Notes”); and

 

WHEREAS,
upon the terms and subject to the conditions contained in the Notes, the Notes will be convertible into shares of Common Stock.

 

NOW,
THEREFORE, in consideration of the premises, and of the representations, warranties, covenants and agreements set forth herein,
the parties agree that the Original Agreement is hereby amended and restated and superseded in its entirety as follows:

 

Article I

PURCHASE; CLOSING

 

Section 1.1             Purchase.
On the terms and subject to the conditions herein, at the Closing, Issuer agrees to issue and sell to each Purchaser, and each Purchaser
agrees, severally and not jointly, to purchase from Issuer, (i) the FILO C Note(s) set forth opposite such Purchaser’s
name in column (3) on Schedule I, (ii) the JSC Note(s) set forth opposite such Purchaser’s name in
column (4) on Schedule I and (iii) the Management JSC Note(s) set forth opposite such Purchaser’s name in
column (5) on Schedule I, as may be amended pursuant to Section 1.3(c)(v). The purchase and sale of the Notes
pursuant to this ‎Section 1.1 is referred to as
the “Purchase.”

 

    1 

     

    

 

Section 1.2             Closing.

 

(a)           Subject
to the terms and conditions hereof, the closing of the Purchase (the “Closing”) shall be undertaken remotely by electronic
transfer of Closing documentation, at 10:00 a.m., New York City time on the first business day on which the conditions to the Closing
set forth in Section 1.3 are satisfied or waived in writing other than conditions that, by their nature, will be satisfied at the
Closing, or at such other later time and place as Issuer and the Lead Investor shall agree. The date on which the Closing actually occurs
is referred to as the “Closing Date”. At the Closing, each Purchaser shall deliver to Issuer an amount in cash equal
to 100% of the principal amounts of the Notes (such amount for each Purchaser, the “Purchase Price”) by wire transfer
of U.S. dollars in immediately available funds to the account specified by Issuer to the Purchasers no later than two (2) business
days prior to the Closing Date. At the Closing, Issuer shall deliver to such Purchaser the Notes set forth opposite such Purchaser’s
name on Schedule I, free and clear of any Liens or other restrictions whatsoever (other than those arising under state or federal
securities laws).

 

(b)           At
the Closing:

 

(i)            Issuer
will deliver to the Purchasers (A) the Notes being purchased by the Purchasers on the Closing Date, duly executed by Issuer, (B) the
Registration Rights Agreement substantially in the form of Exhibit B hereto (the “Registration Rights Agreement”),
duly executed by Issuer, (C) each of the Note Documents to which any Note Party is a party, duly executed by each Note Party, as
applicable, (D) the Voting Agreement in a form to be mutually agreed by Issuer and the Lead Investor (the “Voting Agreement”),
duly executed by Issuer and Osmium Partners (Larkspur SPV), LP, (E) a termination agreement terminating that certain agreement,
dated as of December 31, 2020, by and between Issuer, Osmium Partners, LLC and the entities and natural persons set forth in the
signature pages thereto in a form to be mutually agreed by Issuer and the Lead Investor, (F) the Pier 1 License Agreement in
a form to be mutually agreed by Issuer and the Lead Investor (the “Pier 1 License Agreement”), duly executed by Issuer,
(G) executed customary opinions of Haynes and Boone, LLP, and Troutman Pepper Hamilton Sanders, LLP, counsel to the Note Parties,
dated as of the Closing Date, addressed to the Purchasers and in form and substance reasonably satisfactory to the Lead Investor, (H) letters
of resignation, in a form reasonably acceptable to the Lead Investor, duly executed by each director resigning at the Closing pursuant
to Section 5.6, and (I) all other documents, instruments and writings required to be delivered by Issuer to the Purchasers
pursuant to this Agreement or otherwise required in connection herewith; and

 

(ii)            each
Purchaser will, on a several and not joint basis, deliver or cause to be delivered (A) the applicable Purchase Price owed by such
Purchaser as set forth in Section 1.2(a), (B) a counterpart to the Registration Rights Agreement, duly executed by such
Purchaser (provided, that, each of Philip Hixon and William Baumann may become a party to the Registration Rights Agreement only upon
execution of a signature page to the Registration Rights Agreement not later than 14 days following the Closing Date), (C) a
counterpart to each Note Document to which such Purchaser is a party, duly executed by such Purchaser, (D) for the Lead Investor,
a counterpart to the Pier 1 License Agreement, duly executed by Pier 1, and (E) all other documents, instruments and writings required
to be delivered by such Purchaser to Issuer pursuant to this Agreement or otherwise required in connection herewith.

 

    2 

     

    

 

Section 1.3         Closing
Conditions.

 

(a)        The
obligation of each Purchaser, on the one hand, and Issuer, on the other hand, to effect the Closing is subject to the satisfaction or,
to the extent permitted by applicable Law, waiver by the Lead Investor and Issuer (acting at the direction of the board of directors
of Issuer (the “Board”)) at or prior to the Closing of each of the following conditions:

 

(i)            there
shall not be in effect any temporary restraining order, preliminary or permanent injunction or other judgment or order issued by any
Governmental Entity, nor any Law restraining, precluding, enjoining, making illegal or otherwise prohibiting, the consummation of the
transactions contemplated by this Agreement;

 

(ii)           there
shall be no Insolvency Proceeding pending and there shall not be pending any suit, action, litigation or proceeding in any court or before
any arbitrator by any Governmental Entity seeking to restrain, preclude, enjoin, make illegal or otherwise prohibit the transactions
contemplated by this Agreement;

 

(iii)          the
Nasdaq Financial Viability Exemption Stockholder Notice Period shall have expired;

 

(iv)          the
Purchasers shall have received copies of (A) the ABL Intercreditor Agreement, (B) the Term Loan – FILO Intercreditor
Agreement and (C) the Term Loan – JSC Notes Intercreditor Agreement, which, in each case, shall be in a form reasonably satisfactory
to the Lead Investor and the Issuer in all respects; and

 

(v)           (A) the
Term Loan Agreement shall be amended (the “Term Loan Amendment”), in a form reasonably satisfactory to the Lead Investor
and Issuer, to, among other things, permit the transactions contemplated hereby and (B) the ABL Credit Agreement shall be amended
(the “ABL Amendment”), in a form reasonably satisfactory to the Lead Investor and Issuer, to, among other things,
permit the transactions contemplated hereby, including without limitation in the case of both the Term Loan Amendment and the ABL Amendment,
permitting the issuance of the Notes and related Note Documents, the conversions of the Notes for common stock and the changes in the
Board provided for herein.

 

    3 

     

    

 

(b)            The
obligation of the Purchasers to effect the Closing is also subject to the satisfaction or, to the extent permitted by applicable Law,
waiver by the Lead Investor at or prior to the Closing of each of the following conditions:

 

(i)            (A) the
representations and warranties of Issuer set forth in Sections 2.1(b)(i), 2.1(c), 2.1(d) and 2.1(o) shall
be true and correct in all respects as of the Closing Date as though made on and as of such date (except to the extent that such representation
or warranty speaks to a specified date, in which case as of such specified date); (B) the representations and warranties of Issuer
set forth in Section 2.1(a) shall be true and correct in all respects, except for de minimis inaccuracies, as
of the Closing Date as though made on and as of such date (except to the extent that such representation or warranty speaks to a specified
date, in which case as of such specified date); and (C) all other representations and warranties of Issuer set forth in ‎Section 2.1
hereof shall be true and correct in all respects (but without regard to any materiality qualifications or references to Issuer Material
Adverse Effect contained in any representation or warranty) as of the Execution Date and as of the Closing Date as though made on and
as of such date (except to the extent that such representation or warranty speaks to a specified date, in which case as of such specified
date) except for any failures of any such representations and warranties to be true and correct would not reasonably be expected, individually
or in the aggregate, to have an Issuer Material Adverse Effect;

 

(ii)            each
Note Party shall have performed and complied in all material respects with its covenants, obligations and agreements required to be performed
or complied with by it pursuant to this Agreement at or prior to the Closing;

 

(iii)           since
the Execution Date, no event has occurred or condition or circumstance exists which, individually or in the aggregate, has had or is
reasonably likely to have an Issuer Material Adverse Effect;

 

(iv)          the
Purchasers shall have received a certificate signed by a Responsible Officer of Issuer certifying (A) to the effect that the conditions
set forth in Sections 1.3(a)(i), 1.3(a)(ii), 1.3(b)(i), 1.3(b)(ii) and 1.3(b)(iii) have been satisfied
and (B) that attached thereto are true, correct and complete copies of (1) the ABL Amendment and (2) the Term Loan Amendment;

 

(v)          The
Issuer shall have filed with Nasdaq a Listing of Additional Shares Notification Form with respect to the 90,000,000 shares of Common
Stock to be issued upon conversion of the immediately convertible portion of the Notes to be purchased by the Lead Investor and Issuer
shall have delivered to the Lead Investor a copy of Nasdaq’s confirmation of receipt of such Listing of Additional Shares Notification
Form;

 

(vi)           from
the Execution Date to the Closing, no notice of delisting from Nasdaq shall have been received by Issuer with respect to the Common Stock;

 

(vii)          from
the Execution Date to the Closing, the Common Stock shall not have been suspended by the SEC or Nasdaq from trading on Nasdaq;

 

    4 

     

    

 

(viii)        the
Purchasers shall have received in the case of each Note Party each of the items referred to in clauses (A), (B) and (C) below:

 

		(A)	a
                                            copy of the certificate or articles of incorporation, certificate of limited partnership
                                            or certificate of formation, including all amendments thereto, of each Note Party, certified
                                            as of a recent date by the Secretary of State (or other similar official) of the jurisdiction
                                            of its organization, and a certificate as to the good standing (to the extent such concept
                                            or a similar concept exists under the laws of such jurisdiction) of each such Note Party
                                            as of a recent date from such Secretary of State (or other similar official);

 

		(B)	a
                                            certificate of the secretary or assistant secretary or similar officer of each Note Party
                                            dated the Closing Date and certifying:

 

		(1)	that
                                            attached thereto is a true and complete copy of the by-laws (or limited partnership agreement,
                                            limited liability company agreement or other equivalent governing documents) of such Note
                                            Party as in effect on the Closing Date;

 

		(2)	that
                                            attached thereto is a true and complete copy of resolutions duly adopted by the board of
                                            directors (or equivalent governing body) of such Note Party (or its managing general partner
                                            or managing member), authorizing the execution, delivery and performance of the Note Documents
                                            to which such Person is a party, and that such resolutions have not been modified, rescinded
                                            or amended and are in full force and effect on the Closing Date;

 

		(3)	that
                                            the certificate or articles of incorporation, certificate of limited partnership or certificate
                                            of formation of such Note Party have not been amended since the date of the last amendment
                                            thereto disclosed pursuant to clause (A) above;

 

		(4)	as
                                            to the incumbency and specimen signature of each officer executing any Note Document or any
                                            other document delivered in connection herewith on behalf of such Note Party; and

 

		(5)	as
                                            to the absence of any pending proceeding for the insolvency, dissolution or liquidation of
                                            such Note Party.

 

		(C)	a
                                            certificate of another Responsible Officer as to the incumbency and specimen signature of
                                            the secretary or assistant secretary or similar officer executing the certificate pursuant
                                            to clause (B) above.

 

(ix)            each
Uniform Commercial Code financing statement required by the Security Documents or under Law or reasonably requested by the Collateral
Agent or to be filed, registered or recorded in order to create in favor of the Collateral Agent, for the benefit of the Secured Parties,
a perfected Lien on the Collateral described therein that may be perfected through the filing of a Uniform Commercial Code financing
statement prior and superior in right to any other Person (other than with respect to Liens securing the ABL Loan Obligations and the
Term Loan Obligations as set forth in the applicable ICA and other Liens expressly permitted to be prior to the Liens of the Collateral
Agent in the applicable Collateral), shall have been filed, registered or recorded or immediately upon the effectiveness of this Agreement
will be filed, registered or recorded by the Collateral Agent;

 

    5 

     

    

 

(x)            the
Purchasers shall have received executed copies of (A) the ABL Credit Agreement and (B) the Term Loan Agreement;

 

(xi)           the
Issuer shall cause TUEM Inc. to deliver updated versions of all Schedules to the Term Loan Agreement incorporated herein by reference
and the information to be disclosed therein shall be true and correct in all material respects as of the Closing Date;

 

(xii)          the
Note Parties shall have delivered to the Purchasers such other documents relating to the transactions contemplated by this Agreement
as the Collateral Agent, Lead Investor or its counsel may reasonably request;

 

(xiii)        Issuer
shall have delivered, or caused to be delivered, to the Purchasers all of the items described in ‎Section 1.2(b)(i);
and

 

(xiv)        substantially
concurrently with the Closing, Issuer shall make (or caused to be made) the ABL Facility Debt Prepayments.

 

Other than in the case of the delivery of the
Notes at Closing, the requirement of Issuer or any other Note Party to deliver any agreement, document or other item shall be deemed
satisfied if the same shall have been delivered to the Lead Investor who shall endeavor to distribute copies of the same to any Purchaser
requesting the same.

 

(c)            The
obligation of Issuer to effect the Closing with respect to each Purchaser is also subject to the satisfaction or, to the extent permitted
by applicable Law, waiver by Issuer (acting at the direction of the Board) at or prior to the Closing of each of the following conditions:

 

(i)            (A) the
representations and warranties of such Purchaser set forth in ‎Section 2.2 hereof shall be true and correct in all
material respects (other than any such representations and warranties that are qualified by materiality, which, in each case, shall be
true and correct in all respects) as of the Closing Date as though made on and as of such date (except to the extent that such representation
or warranty speaks to a specified date, in which case as of such specified date);

 

(ii)           such
Purchaser shall have performed and complied in all material respects with its covenants, obligations and agreements required to be performed
or complied with by it pursuant to this Agreement at or prior to the Closing;

 

(iii)           Issuer
shall have received a certificate signed on behalf of Lead Investor by an executive officer (or equivalent) thereof certifying to the
effect that the conditions set forth in ‎Section 1.3(c)(i) and ‎(ii) have been satisfied by
such Purchaser;

 

    6 

     

    

 

(iv)           such
Purchaser shall have delivered, or caused to be delivered, to Issuer all of the applicable items described in ‎Section 1.2(b)(ii);
and

 

(v)            Issuer
shall have received aggregate payments of $35,000,000 from the Purchasers with respect to the purchase of the Notes; provided,
that if any Purchaser that is not the Lead Investor does not deliver its Purchase Price at Closing, Lead Investor may, at its sole discretion,
purchase such Purchaser’s Notes from Issuer at such Purchase Price.

 

Section 1.4             Independent
Nature of Purchasers’ Obligations and Rights. The obligations of each Purchaser under any Transaction Document are several
and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance of the
obligations of any other Purchaser under any Transaction Document. Nothing contained herein or in any other Transaction Document, and
no action taken by any Purchaser pursuant hereto or thereto, shall be deemed to constitute the Purchasers as a partnership, an association,
a joint venture or any other kind of group or entity, or create a presumption that the Purchasers are in any way acting in concert or
as a group with respect to such obligations or the transactions contemplated by the Transaction Documents. Subject to as otherwise set
forth herein, including Section 6.3, each Purchaser shall be entitled to independently protect and enforce its rights, including
the rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Purchaser
to be joined as an additional party in any proceeding for such purpose. The failure or waiver of performance by any Purchaser does not
excuse performance by any other Purchaser or by Issuer with respect to any other Purchaser. It is expressly understood and agreed that
each provision contained in this Agreement is between Issuer and a Purchaser, solely, and not between Issuer and the Purchasers collectively
and not between and among the Purchasers. It is further understood that no fiduciary duty or expectation therewith shall arise under
this Agreement or any other Note Document as among any of the Purchasers, the Holders or the Required Holders.

 

Article II

REPRESENTATIONS AND WARRANTIES

 

Section 2.1             Representations
and Warranties of Issuer. Except (i) as set forth in the correspondingly identified schedule attached hereto (provided, that
any item disclosed in any particular schedule attached hereto shall be deemed to be disclosed with respect to any other schedule to the
extent it is reasonably apparent on the face of such disclosure that it applies to such other schedule), or (ii) as previously disclosed
in the SEC Documents since January 1, 2020 and prior to the Execution Date (other than such disclosures in such SEC Documents contained
in the “Risk Factors” and “Forward Looking Statements” sections thereof or are otherwise cautionary, predictive
or forward-looking in nature) (it being acknowledged that this clause (ii) shall not apply to any of Sections 2.1(a), 2.1(b) and
2.1(h)), Issuer, for itself and on behalf of its Subsidiaries, represents and warrants to the Collateral Agent and the Purchasers
as of the Execution Date and as of the Closing Date; provided, that the representations and warranties set forth in Section 2.1(b)(i) with
respect to this Agreement shall apply mutatis mutandis with respect to both the Original Agreement and this Agreement, and, with
respect to the Original Agreement, shall be made as of the Execution Date and, with respect to this Agreement, shall be made as of the
date hereof; provided, further, that the representations and warranties set forth in Section 2.1(b)(i) do not speak to “a
specified date” for purposes of Section 1.3(b)(i).

 

    7 

     

    

 

(a)            Capitalization.

 

(i)            The
authorized capital stock of Issuer consists of 200,000,000 shares of common stock, $0.01 par value per share of Issuer (the “Common
Stock”), and 10,000,000 shares of preferred stock, $0.01 par value per share (the “Issuer Preferred Stock”).
As of the Execution Date, there were (A) 85,881,033 shares of Common Stock outstanding (and 1,783,661 shares of Common Stock held
in treasury), (B) zero shares of Issuer Preferred Stock outstanding, (C) the Issuer Warrant to purchase an aggregate of 10,000,000
shares of Common Stock outstanding, (D) 929,196 shares of Common Stock subject to Issuer Option Awards (with a weighted average
exercise share price per shares of Common Stock of $6.39), (E) 7,634,279 shares of Common Stock subject to Issuer Time-Based RSU
Awards and Issuer Performance-Based RSU Awards (assuming that the applicable performance metrics are achieved at target levels) (G) 4,359,528
shares of Common Stock remaining available for future awards to be granted pursuant to the Tuesday Morning Corporation 2014 Long-Term
Incentive Plan and (H) no shares of Common Stock remaining available for future awards to be granted pursuant to the Tuesday Morning
Corporation 2008 Long-Term Equity Incentive Plan. All of the issued and outstanding shares of Common Stock have been duly authorized
and validly issued in accordance with applicable securities laws and are fully paid, nonassessable and free of preemptive rights, with
no personal liability attaching to the ownership thereof.

 

(ii)           The
authorized capital stock of Issuer is sufficient to satisfy Issuer’s obligation to issue no less than 90,000,000 shares of Common
Stock issuable upon conversion of the JSC Notes.

 

(iii)           No
bonds, debentures, notes or other indebtedness having the right to vote on any matters on which the stockholders of Issuer may vote are
issued and outstanding. Except as set forth in Section 2.1(a)(i) and except for any Common Stock issuable upon exercise of
the Issuer Option Awards or the Issuer Warrant in accordance with the respective terms thereof and upon the vesting of any Issuer Time-Based
RSU Awards or Issuer Performance-Based RSU Awards outstanding on the Execution Date and except for the Common Stock issuable pursuant
to the Notes to be issued pursuant to this Agreement, (A) Issuer does not have any other shares of Common Stock, preferred stock
or capital stock outstanding, (B) neither Issuer nor any of its Subsidiaries has issued, granted or is bound by any outstanding
subscriptions, options, warrants, calls, convertible securities, preemptive rights, redemption rights, stock appreciation rights, stock-based
performance units or other similar rights or contracts that require Issuer or any of its Subsidiaries to purchase or issue any shares
of the capital stock of Issuer or of any of its Subsidiaries or other equity securities of Issuer or any of its Subsidiaries or any securities
representing the right to purchase or otherwise receive any shares of the capital stock of Issuer or any of its Subsidiaries (including
any rights plan or agreement) or equity-based awards and (C) there are no contracts to which Issuer or any of its Subsidiaries is
a party obligating Issuer or any of its Subsidiaries to (x) issue, transfer or sell any shares of capital stock or other equity
interests of Issuer or any of its Subsidiaries or securities convertible into or exchangeable or exercisable for such shares or equity
interests, (y) issue, grant, extend or enter into any such subscription, option, warrant, call, convertible securities, stock-based
performance units or other similar right, agreement, arrangement or commitment or (z) redeem or otherwise acquire any such shares
of capital stock or other equity interests.

 

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(b)            Authorization.

 

(i)            Each
Note Party has the requisite corporate power and authority to enter into each Transaction Document to which it is a party and to carry
out its obligations thereunder. The execution, delivery and performance by each Note Party of each Transaction Document to which it is
a party and the consummation of the transactions contemplated thereby have been duly authorized by all corporate, stockholder, limited
partnership or limited liability company action required to be obtained by such Note Party. This Agreement has been, and (as of the Closing)
the other Transaction Documents will be, duly and validly executed and delivered by each Note Party that is a party thereto and, assuming
due authorization, execution and delivery by the Purchasers and the Collateral Agent, is, and (as of the Closing) each of the other Transaction
Documents will be, a valid and binding obligation of such Note Party enforceable against such Note Party in accordance with its terms
(except as enforcement may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer and similar
Laws of general applicability relating to or affecting creditors’ rights or by general equity principles). No other corporate proceedings
are necessary for the execution and delivery by any Note Party of the Transaction Documents to which it is a party, the performance by
it of its obligations thereunder or the consummation by it of the transactions contemplated thereby.

 

(ii)            Neither
Issuer nor any Issuer Subsidiary is (A) in violation of any of the terms, conditions or provisions of the amended and restated certificate
of incorporation of Issuer (the “Certificate of Incorporation”) or the amended and restated bylaws of Issuer (the
 “Bylaws”), or the certificate of incorporation, charter, bylaws or other governing instrument of any Issuer Subsidiary
(together with the Certificate of Incorporation and the Bylaws, the “Organizational Documents”), (B) in violation
of any law, statute, ordinance, rule, regulation, permit, or franchise applicable to it or of any judgment, ruling, order, writ, injunction
or decree of any Governmental Entity having jurisdiction over Issuer or any Issuer Subsidiary or any of their any respective properties
or assets or (C) in breach, default (or an event which, with notice or lapse of time or both, would constitute such a default) or
violation in the performance of any obligation, agreement, covenant or condition contained in any note, bond, debenture, or any other
evidence of indebtedness or in any agreement, indenture, lease or other agreement or instrument to which Issuer or any Issuer Subsidiary
is a party or by which Issuer or any Issuer Subsidiary or any of their respective properties or assets are bound, which breach, default
or violation in the case of clauses (B) or (C) would reasonably be expected to constitute an Issuer Material
Adverse Effect.

 

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(iii)           None
of the issuance and sale by Issuer of the Notes, or the issuance by Issuer of Common Stock issuable upon conversion thereof, the application
of the proceeds thereof, the execution, delivery and performance by Issuer of this Agreement or the other Transaction Documents and the
consummation of the transactions contemplated hereby or thereby, nor compliance by Issuer with any of the provisions hereof or thereof
(including the conversion provisions of the Notes), will, subject only to submission of the Nasdaq Listing Submission, (A) violate,
conflict with, or result in a breach of any provision of, or constitute a default (or an event which, with notice or lapse of time or
both, would constitute a default) under, or result in the termination of, or accelerate the performance required by, or result in a right
of termination or acceleration of, or result in the creation of any Lien upon any of the properties or assets of Issuer or any Issuer
Subsidiary under (i) any of the terms, conditions or provisions of their respective Organizational Documents or (ii) any note,
bond, mortgage, indenture, deed of trust, license, loan agreement, lease, agreement or other instrument or obligation to which Issuer
or any Issuer Subsidiary is a party or by which it may be bound, or to which Issuer or any Issuer Subsidiary or any of the properties
or assets of Issuer or any Issuer Subsidiary may be subject, (B) violate any law, statute, ordinance, rule, regulation, permit,
franchise or any judgment, ruling, order, writ, injunction or decree applicable to Issuer or any Issuer Subsidiary or any of their respective
properties or assets, or (C) accelerate the time of payment or vesting or trigger any payment or funding of compensation or benefits
under, or increase the amount payable or trigger any other obligation under, any employment, severance, retention, bonus, incentive,
deferred compensation, equity option, restricted equity, equity purchase, equity compensation, phantom equity, equity appreciation, other
benefit or similar plan, agreement, arrangement, program, practice or understanding that is sponsored, maintained, administered, contributed
to or entered into by Issuer or any Issuer Subsidiary, or for which Issuer or any Issuer Subsidiary has any direct or indirect liability,
whether current or contingent (each, a “Issuer Benefit Plan”), or result in any adjustments to the number of shares
relating to, or exercise price of, any Issuer Option Awards or the Issuer Warrant, except in the case of clauses ‎(A)‎(ii) and
‎(B) for such violations, conflicts and breaches as would not, individually or in the aggregate, reasonably be expected
to have an Issuer Material Adverse Effect.

 

(iv)            Other
than submission of the Nasdaq Listing Submission, approval by The Nasdaq Stock Market LLC of a request for financial viability
exception to the stockholder approval requirements of Nasdaq Listing Rule 5635(b), (c) and (d) (the
 “Nasdaq Financial Viability Exemption Approval”), and the expiration of the 10 day notice period following the
provision of notice to Issuer’s stockholders in connection with the Nasdaq Financial Viability Exemption Approval (the
 “Nasdaq Financial Viability Exemption Stockholder Notice Period”), no notice to, registration, declaration or
filing with, exemption or review by, or authorization, order, consent or approval of, any court, regulatory or administrative agency
or commission or other governmental or arbitral body or authority or instrumentality, whether federal, state, local or foreign, or
any securities exchange or any applicable industry self-regulatory organization (each, a “Governmental Entity”),
nor expiration or termination of any statutory waiting period, is necessary for the consummation by Issuer of the transactions
contemplated by this Agreement or the other Transaction Documents.

 

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(c)            Sale
of Securities. Assuming the accuracy of the representations and warranties of the Purchasers contained in ‎Section 2.2,
the issuance and sale of the Notes to the Purchasers pursuant to this Agreement is exempt from the registration and prospectus delivery
requirements of the Securities Act of 1933, as amended (the “Securities Act”), and the rules and regulations
promulgated thereunder, and neither Issuer nor, to the Knowledge of Issuer, any person acting on its behalf, has taken nor will take
any action hereafter that would cause the loss of such exemption.

 

(d)            Status
of Securities. The Notes, and, following the approval and adoption of the Certificate of Incorporation Amendment, the Common Stock
issuable upon conversion of the Notes have been and shall be duly authorized by all necessary corporate action. When issued and sold
against receipt of the consideration therefor as provided in this Agreement, the Notes will be legal, valid and binding obligations,
will not subject the holders thereof to personal liability, will not be subject to preemptive rights of any other stockholder of Issuer,
and will effectively vest in each Purchaser good and marketable title to all Notes acquired by such Purchaser pursuant to this Agreement,
be free and clear of all Liens, except restrictions imposed by the Securities Act and any applicable state or foreign securities laws.
Upon any conversion of any shares of Notes into Common Stock pursuant to the terms thereof, the shares of Common Stock issued upon such
conversion will be validly issued, fully paid and nonassessable, will not subject the holder thereof to personal liability and will not
be subject to preemptive rights of any other stockholder of Issuer, and will effectively vest in the Purchasers good and marketable title
to all such shares of Common Stock, be free and clear of all Liens, except restrictions imposed by the Securities Act and any applicable
state or foreign securities laws. The respective rights, preferences, privileges and restrictions of the Common Stock are as stated in
the Certificate of Incorporation or as otherwise provided by the mandatory provisions of the DGCL. At or prior to Closing, 90,000,000
shares of Common Stock to be issued upon any conversion of the JSC Notes into Common Stock shall have been duly reserved for such issuance
and Issuer shall have made the Nasdaq Listing Submission with respect to such shares of the Common Stock.

 

(e)            SEC
Documents; Financial Statements.

 

(i)            Issuer
has timely filed and furnished with the U.S. Securities and Exchange Commission (the “SEC”) all forms, registration
statements, reports, certifications, prospectuses, proxy statements, schedules, statements, and other documents required to be filed
by it since December 31, 2020 under the Securities Act, the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), and all other federal securities laws. All forms, registration statements, reports, certifications, prospectuses, proxy
statements, schedules, statements, and other documents (including all amendments thereto) filed or furnished on a voluntary basis by
Issuer with the SEC since such date are herein collectively referred to as the “SEC Documents.”

 

(ii)            Issuer
(A) has implemented and maintains disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange
Act) that are reasonably designed to ensure that material information relating to Issuer, including its consolidated Subsidiaries, is
accumulated and communicated to management of Issuer, including its principal executive officers and principal financial officers, as
appropriate, to allow timely decisions regarding required disclosure to be made and for the preparation of Issuer’s filings with
the SEC, (B) has ensured such disclosure controls and procedures are effective in all material respects to perform the functions
for which they were established to the extent required by Rule 13a-15 of the Exchange Act and (C) has disclosed, based on its
most recent evaluation prior to the Execution Date, to Issuer’s outside auditors and the audit committee of the Board (I) any
significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting (as defined
in Rule 13a-15(f) under the Exchange Act) that are reasonably likely to adversely affect Issuer’s ability to record,
process, summarize and report financial information and (II) any fraud, whether or not material, that involves management or other
employees who have a significant role in Issuer’s internal controls over financial reporting.

 

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(iii)            The
SEC Documents, including any audited or unaudited financial statements and any notes thereto or schedules included therein (the “Financial
Statements”), at the time filed, (A) complied as to form in all material respects with applicable requirements of federal
securities laws and with the published rules and regulations of the SEC with respect thereto, (B) did not contain any untrue
statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements
contained therein, in light of the circumstances under which they were made, not misleading, (C) in the case of the Financial Statements,
were prepared in accordance with generally accepted accounting principles (“GAAP”) applied on a consistent basis during
the periods involved (except as may be indicated in the notes thereto or the omission of notes to the extent permitted by Regulation
S-K or, in the case of unaudited statements, as permitted by Form 10-Q under the Exchange Act) and subject, in the case of interim
financial statements, to normal year-end adjustments, and (D) in the case of the Financial Statements, fairly present in all material
respects the consolidated financial condition, results of operations, and cash flows of Issuer as of the dates and for the periods indicated
therein.

 

(f)            Undisclosed
Liabilities. Except for (i) those liabilities that are reflected or reserved for in the consolidated financial statements of
Issuer included in its Quarterly Report on Form 10-Q for the nine months ended April 2, 2022; (ii) liabilities incurred
since April 2, 2022 in the ordinary course of business; (iii) liabilities that would not, individually and in the aggregate,
reasonably be expected to have an Issuer Material Adverse Effect; and (iv) liabilities incurred pursuant to the transactions contemplated
by this Agreement, none of Issuer or any Issuer Subsidiary has any material liabilities or obligations of any nature whatsoever (whether
accrued, absolute, contingent or otherwise) that are required to be reflected in Issuer’s financial statements in accordance with
GAAP.

 

(g)            Independent
Registered Public Accounting Firm. Grant Thornton LLP has been engaged to audit the financial statements for Issuer’s fiscal
year ending June 30, 2022. Grant Thornton LLP has not resigned or been dismissed as independent registered public accountants of
Issuer and the consolidated Issuer Subsidiaries as a result of or in connection with any disagreement with Issuer or any matter of accounting
principles or practices, financial statement disclosure or auditing scope or procedure. Ernst & Young LLP, which has audited
the financial statements contained or incorporated by reference in the SEC Documents, was during the time of engagement an independent
registered public accounting firm with respect to Issuer and the consolidated Issuer Subsidiaries within the meaning of the Securities
Act and the applicable rules and regulations thereunder adopted by the SEC and the Public Company Accounting Oversight Board (United
States). Ernst & Young LLP did not resign or was dismissed as independent registered public accountants of Issuer and the consolidated
Issuer Subsidiaries as a result of or in connection with any disagreement with Issuer or any matter of accounting principles or practices,
financial statement disclosure or auditing scope or procedure.

 

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(h)            Brokers
and Finders. Neither Issuer nor any of the Issuer Subsidiaries or any of their respective officers, directors, employees or agents
has employed any broker or finder or incurred any liability for any financial advisory fees, brokerage fees, commissions, finder’s
fees or similar payments, and no broker or finder has acted directly or indirectly for Issuer or any of the Issuer Subsidiaries in connection
with this Agreement or the Purchase.

 

(i)            Absence
of Changes. Since April 2, 2022, no event or circumstance has occurred that, individually or in the aggregate, has had or would
reasonably be expected to have an Issuer Material Adverse Effect.

 

(j)            Compliance
with Sarbanes-Oxley. Since January 1, 2020 there has been no failure on the part of Issuer and any of Issuer’s directors
or officers, in their capacities as such, to comply in all material respects with any provision of the Sarbanes-Oxley Act of 2002, as
amended, and the rules and regulations promulgated in connection therewith applicable to Issuer.

 

(k)            Listing
and Maintenance Requirements. The Common Stock is registered pursuant to Section 12(b) of the Exchange Act, and Issuer
has taken no action designed to, or which is reasonably likely to, have the effect of, terminating the registration of the Common
Stock under the Exchange Act nor has Issuer received as of the Execution Date any notification that the SEC is contemplating
terminating such registration. Upon conversion of the Notes, the Common Stock will be issued in compliance with all applicable
rules of Nasdaq. The Common Stock is listed on Nasdaq, and Issuer has not received any notice of delisting other than as set
forth on Schedule 2.1(l). The issuance and sale of the Notes and the issuance of the Common Stock upon conversion of the Notes are
in compliance with all applicable Nasdaq rules and regulations.

 

(l)            No
Restrictions or Registration Rights. Except as described in the Certificate of Incorporation, there are no restrictions upon the
voting or transfer of, any equity securities of Issuer. Except for such rights that have been waived or as expressly set forth in the
Registration Rights Agreement, neither the offering or sale of the Notes as contemplated by this Agreement, or the issuance of Common
Stock upon the conversion thereof as contemplated by the Notes gives rise to any rights for or relating to the registration of any Notes
(or shares of Common Stock issuable upon conversion thereof as contemplated by the Notes) or other securities of Issuer. Issuer has not
granted registration rights to any Person other than the Purchasers that would provide such Person priority over such Purchaser’s
rights with respect to any piggyback registration.

 

(m)           Store
EBITDA. During the twelve (12) month period ended July 2, 2022, (i) the net income plus (ii) to the extent deducted
in determining such net income, the sum (without duplication) of, during such twelve (12) month period, (A) the interest expense,
(B) depreciation expenses, (C) amortization expenses and (D) all federal, state, local, foreign, franchise, excise, foreign
withholding taxes payable for more than 95% of the stores of Issuer and its Subsidiaries, on a four-wall basis, was a positive amount.

 

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(n)            Related
Party Transactions. Neither Issuer nor any Issuer Subsidiary has, directly or indirectly (a) extended credit, arranged to extend
credit, or renewed any extension of credit, in the form of a personal loan, to or for any director or executive officer of Issuer or
its Affiliates, or to or for any family member or Affiliate of any director or executive officer of Issuer or its Affiliates or (b) made
any material modification to the term of any personal loan to any director or executive officer of Issuer or its Affiliates, or any family
member or Affiliate of any director or executive officer of Issuer or its Affiliates. Neither Issuer nor any Issuer Subsidiary is party
to any contract or arrangement with any shareholder of Issuer or any of his, her or its Affiliates, which is required to be disclosed
pursuant to the rules and regulations of the SEC.

 

(o)           Application
of Takeover Protections; Rights Agreement. Issuer and the Board have taken all necessary action, if any, in order to render inapplicable
Issuer’s issuance of the Securities and any Purchaser’s ownership of the Securities from the provisions of any control share
acquisition, interested stockholder, business combination, poison pill (including any distribution under a rights agreement) or other
similar anti-takeover provision under the Certificate of Incorporation or the laws of the state of its incorporation which is or could
become applicable to any Purchaser as a result of the transactions contemplated by this Agreement, including, without limitation, Issuer’s
issuance of the Securities and each Purchaser’s ownership of the Securities. Issuer does not have any stockholder rights plan or
similar arrangement relating to accumulations of beneficial ownership of Common Stock or a change in control of Issuer.

 

(p)           Solvency.
Immediately after giving effect to the transactions contemplated by this Agreement on the Closing Date (including the purchase of the
Notes on the Closing Date) and after giving effect to the application of the proceeds of such Notes, (i) the fair value of the assets
of the Notes Parties and their Subsidiaries on a consolidated basis, at a fair valuation, will exceed the debts and liabilities, direct,
subordinated, contingent or otherwise, of the Note Parties and their Subsidiaries on a consolidated basis, respectively; (ii) the
present fair saleable value of the property of the Note Parties and their Subsidiaries on a consolidated basis will be greater than the
amount that will be required to pay the probable liability of the Note Parties and their Subsidiaries on a consolidated basis, respectively,
on their debts and other liabilities, direct, subordinated, contingent or otherwise, as such debts and other liabilities become absolute
and matured; (iii) the Note Parties and their Subsidiaries on a consolidated basis will be able to pay their debts and liabilities,
direct, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured; and (iv) the Note Parties
and their Subsidiaries on a consolidated basis will not have unreasonably small capital with which to conduct the businesses in which
they are engaged as such businesses are now conducted and are proposed to be conducted following the Closing Date.

 

(q)            Term
Loan Agreement Representations Incorporated by Reference. The representations and warranties contained in the following Sections
of the Term Loan Agreement (including related definitions to the extent not separately defined herein) are hereby incorporated by
reference mutatis mutandis as if set forth in their entirety herein: Sections 3.01 (Organization; Powers); 3.04 (Governmental
Approvals); 3.05(a) and (b) (Financial Statements); 3.07 (Title to Properties; Intellectual Property; Possession Under
Leases); 3.08 (Subsidiaries); 3.09 (Litigation; Compliance with Laws); 3.10 (Investment Company Act); 3.13 (Tax Returns);
3.14(a) (Disclosure); 3.15 (Employee Benefit Plans); 3.16 (Environmental Matters); 3.17 (Security Documents); 3.19 (Labor
Matters); 3.20 (Insurance); 3.21 (Sanctions; Anti-Corruption Laws; Anti-Money Laundering Laws); 3.24 (Common Enterprise) and 3.25
(Material Agreements); provided that (i) any reference therein to the “Borrower” shall be deemed to refer to
TUEM Inc. (as defined herein), (ii) any reference therein to any “Loan Document” shall be deemed to refer to
any Note Document (as defined herein), (iii) any reference therein to the “Loan Parties” shall be deemed to refer
to the Note Parties (as defined herein), (iv) any reference therein to the “Transactions” shall mean, collectively,
the transactions to occur pursuant to the Transaction Documents, including the execution and delivery of the Transaction Documents
and the issuance of the Notes, on the Closing Date and (v) any reference therein to “Material Indebtedness” shall
include the Term Loan Obligations. All such representations and warranties are true and correct in all material respects as of the
Closing Date (without duplication of any materiality qualification applicable thereto).

 

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Section 2.2             Representations
and Warranties of the Purchasers. Each of the Purchasers, severally and not jointly, hereby represents and warrants to Issuer as
of the Execution Date and as of the Closing Date as follows (except that the representations in paragraphs (a), (b) and (g) shall
be made only by the Lead Investor); provided, that the representations and warranties set forth in Section 2.2(b)(i) with respect
to this Agreement shall apply mutatis mutandis with respect to both the Original Agreement and this Agreement, and, with respect
to the Original Agreement, shall be made as of the Execution Date and, with respect to this Agreement, shall be made as of the date hereof;
provided, further, that the representations and warranties set forth in Section 2.2(b)(i) do not speak to “a specified
date” for purposes of Section 1.3(c)(i):

 

(a)            Organization
and Authority. Such Purchaser is duly organized, validly existing and in good standing under the laws of the jurisdiction of its
organization and has all requisite power and authority to own its properties and conduct its business as presently conducted. Such Purchaser
is duly qualified to do business and is in good standing in all jurisdictions where its ownership or leasing of property or the conduct
of its business requires it to be so qualified and where failure to be so qualified would, individually or in the aggregate, reasonably
be expected to materially and adversely affect such Purchaser’s ability to perform its obligations under this Agreement or consummate
the transactions contemplated hereby on a timely basis.

 

(b)            Authorization.

 

(i)            Such
Purchaser has the corporate or other power and authority to enter into this Agreement and the other Transaction Documents to which it
is or will be a party and to carry out its obligations hereunder and thereunder. The execution, delivery and performance of this Agreement
and the other Transaction Documents by such Purchaser and the consummation of the transactions contemplated hereby have been duly authorized
by all requisite action on the part of such Purchaser, and no further approval or authorization by any of its stockholders, partners,
members or other equity owners, as the case may be, is required. This Agreement and the other Transaction Documents have been duly and
validly executed and delivered by such Purchaser and assuming due authorization, execution and delivery by Issuer, is a valid and binding
obligation of such Purchaser enforceable against such Purchaser in accordance with its terms (except as enforcement may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer and similar laws of general applicability relating
to or affecting creditors’ rights or by general equity principles).

 

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(ii)            Such
Purchaser is not (a) in violation of any of the terms, conditions or provisions of its certificate of formation, (b) in violation
of any law, statute, ordinance, rule, regulation, permit, or franchise applicable to it or of any judgment, ruling, order, writ, injunction
or decree of any Governmental Entity having jurisdiction over such Purchaser or any of its properties or assets or (c) in breach,
default (or an event which, with notice or lapse of time or both, would constitute such a default) or violation in the performance of
any obligation, agreement, covenant or condition contained in any note, bond, debenture, or any other evidence of indebtedness or in
any agreement, indenture, lease or other agreement or instrument to which such Purchaser is a party or by which such Purchaser or any
of its properties or assets are bound, which breach, default or violation in the case of clauses (b) or (c) would,
if continued, reasonably be expected to materially and adversely affect such Purchaser’s ability to perform its obligations under
this Agreement or consummate the transactions contemplated hereby on a timely basis.

 

(iii)          Neither
the execution, delivery and performance by such Purchaser of this Agreement or the other Transaction Documents, nor the consummation
of the transactions contemplated hereby and thereby, nor compliance by such Purchaser with any of the provisions hereof or thereof,
will (A) violate, conflict with, or result in a breach of any provision of, or constitute a default (or an event which, with
notice or lapse of time or both, would constitute a default) under, or result in the termination of, or accelerate the performance
required by, or result in a right of termination or acceleration of, or result in the creation of any Lien upon any of the
properties or assets of such Purchaser under any of the terms, conditions or provisions of (i) its governing instruments or
(ii) any note, bond, mortgage, indenture, deed of trust, license, loan agreement, lease, agreement or other instrument or
obligation to which such Purchaser is a party or by which it may be bound, or to which such Purchaser or any of the properties or
assets of such Purchaser may be subject, or (B) subject to compliance with the statutes and regulations referred to in the next
paragraph, violate any law, statute, ordinance, rule or regulation, permit, concession, grant, franchise or any judgment,
ruling, order, writ, injunction or decree applicable to such Purchaser or its properties or assets except in the case of clauses ‎(A)‎(ii) and ‎(B) for
such violations, conflicts and breaches as would not reasonably be expected to materially and adversely affect such
Purchaser’s ability to perform its obligations under this Agreement or consummate the transactions contemplated hereby on a
timely basis.

 

(c)            Purchase
for Investment. Such Purchaser acknowledges that the Notes and the shares of Common Stock issuable upon conversion of the Notes have
not been registered under the Securities Act or under any state securities laws. Such Purchaser (i) acknowledges that it is acquiring
the Notes set forth opposite such Purchaser’s name on Schedule I and the shares of Common Stock issuable upon conversion
of such Notes pursuant to an exemption from registration under the Securities Act solely for investment with no present intention to
distribute the Notes or any of the shares of Common Stock acquired upon conversion of the Notes in violation of applicable securities
laws, (ii) will not sell or otherwise dispose of any of the Notes or the shares of Common Stock acquired upon conversion of the
Notes, except in compliance with the registration requirements or exemption provisions of the Securities Act and any other applicable
securities laws, (iii) has such knowledge and experience in financial and business matters and in investments of this type that
it is capable of evaluating the merits and risks of its investment in the Notes and of making an informed investment decision and (v) (A) has
been furnished with or has had full access to all the information that it considers necessary or appropriate to make an informed investment
decision with respect to the Notes and the shares of Common Stock issuable upon conversion of the Notes, (B) has had an opportunity
to discuss with management of Issuer the intended business and financial affairs of Issuer to its reasonable satisfaction and to obtain
information necessary to verify any information furnished to it or to which it had access and (C) can bear the economic risk of
(x) an investment in the Notes and the shares of Common Stock issuable upon conversion of the Notes and (y) a total loss in
respect of such investment. Such Purchaser has such knowledge and experience in business and financial matters so as to enable it to
understand and evaluate the risks of and form an investment decision with respect to its investment in the Notes and the shares of Common
Stock issuable upon conversion of the Notes and to protect its own interest in connection with such investment.

 

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(d)            Financial
Capability. At the Closing, such Purchaser will have available to it sufficient funds to enable such Purchaser to pay in full at the
Closing the entire amount of such Purchaser’s funding obligation pursuant to Section 1.2 of this Agreement.

 

(e)            Status
of Purchaser. At the time the Purchaser was offered the Notes, the Purchaser was, and as of the Execution Date the Purchaser is, and
at the Closing the Purchaser will be, either (A) a “qualified institutional buyer” as defined in Rule 144A under
the Securities Act or (B) an “accredited investor” as defined in Rule 501(a) under the Securities Act.

 

(f)            Exempt
Offering. Neither such Purchaser nor, to the Knowledge of such Purchaser, any person acting on its behalf, has taken nor will take
any action hereafter that would cause the loss of the exemption from registration under the Securities Act of the issuance of the Notes
or the shares of Common Stock issuable upon conversion of the Notes.

 

(g)            Existing
Ownership. Such Purchaser does not beneficially own any shares of the Common Stock.

 

(h)            Brokers
and Finders. Neither such Purchaser nor any of its Affiliates or any of their respective officers, directors, employees or agents
has employed any broker or finder or incurred any liability for any financial advisory fees, brokerage fees, commissions, finder’s
fees or similar payments, which Issuer or any of its Subsidiaries would be obligated to pay.

 

(i)            Non-Reliance.
Except for the representations and warranties made by ISSUER in SECTION 2.1 AND
in THE OTHER tRANSACTION DOCUMENTS TO WHICH SUCH PURCHASER IS A PARTY, each PURCHASER hereby acknowledgeS AND AGREES ON behalf of itself
and its affiliates and representatives that IT HAS not relied upon any express or implied representation or warranty with respect to
the NOtes, the common stock ISSUABLE UPON THE CONVERSION OF THE notes or ISSUER or any of the ISSUER Subsidiaries or their respective
businesses, operations, assets, liabilities, condition or prospects, INCLUDING
WITH RESPECT to (i) any financial projection, forecast, estimate, budget or prospect information relating to ISSUER or any of the
ISSUER Subsidiaries or their respective businesses, or (ii) any oral or written information presented to any Purchaser or any of
ITS Affiliates or representatives in the course of ITS due diligence investigation of Issuer, the negotiation of this Agreement AND THE
OTHER TRANSACTION DOCUMENTS TO WHICH SUCH PURCHASER IS A PARTY or in the course of the transactions contemplated hereby AND THEREBY.
Notwithstanding anything to the contrary herein, nothing in this Agreement shall limit the right of any Purchaser to rely on the representations,
warranties, covenants and agreements expressly set forth in this Agreement, THE OTHER TRANSACTION DOCUMENTS TO WHICH SUCH PURCHASER IS
A PARTY or in any certificate delivered hereunder, nor will anything in this Agreement operate to limit any claim by any Purchaser for
fraud.

 

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Article III

COVENANTS

 

Section 3.1             Filings;
Other Actions.

 

(a)            From
the Execution Date until the Closing, each of the Purchasers, severally and not jointly, on the one hand, and Issuer, on the other hand,
will cooperate and consult with the other and use commercially reasonable efforts to prepare and file all necessary documentation, to
effect all necessary applications, notices, petitions, filings and other documents, and to obtain all necessary Permits, consents, orders,
approvals and authorizations of, or any exemption by, all third parties and Governmental Entities, and the expiration or termination
of any applicable waiting period, required, necessary or advisable to consummate the transactions contemplated by this Agreement and
the other Transaction Documents. Issuer and each of the Purchasers, severally and not jointly, shall execute and deliver both before
and after the Closing such further certificates, agreements and other documents and take such other actions as the other parties may
reasonably request to consummate or implement such transactions or to evidence such events or matters.

 

(b)            Each
of the Purchasers, severally and not jointly, and Issuer will have the right to review in advance, and to the extent practicable each
will consult with the other, in each case subject to applicable Law relating to the exchange of information, all the information relating
to such other party, and any of their respective Affiliates, which appears in any filing made with, or written materials submitted to,
any third party or any Governmental Entity in connection with the transactions contemplated by this Agreement. In exercising the foregoing
right, each of the parties hereto agrees to act reasonably and as promptly as practicable. Each party hereto agrees to keep the other
parties apprised of the status of matters referred to in this ‎Section 3.1. Each of the Purchasers, severally and not
jointly, shall promptly furnish Issuer, and Issuer shall promptly furnish each of the Purchasers, to the extent permitted by applicable
Law, with copies of written communications received by it or any of the Issuer Subsidiaries from, or delivered by any of the foregoing
to, any Governmental Entity in respect of the transactions contemplated by this Agreement.

 

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Section 3.2             Conduct
of the Business. During the period commencing on the Execution Date and ending on the Closing Date, each of Issuer and the Issuer
Subsidiaries will use commercially reasonable efforts to preserve intact its existence and business organization, Permits, goodwill and
present business relationships with all material customers, suppliers, licensors, distributors and others having significant business
relationships with Issuer or any Issuer Subsidiary.

 

Section 3.3             Negative
Covenants. Notwithstanding anything to the contrary set forth in Section 3.12, from the Execution Date through the Closing,
none of Issuer or any of the Issuer Subsidiaries shall, without the prior written consent of each of the Purchasers:

 

(a)           declare,
or make payment in respect of, any dividend or other distribution upon any shares of capital stock of Issuer;

 

(b)           amend
any of the Organizational Documents of Issuer or any Issuer Subsidiary in any manner, or enter into any contract or agreement, in each
case that would adversely affect the powers, preferences, privileges or special rights of the Securities; or

 

(c)            take
any action prior to the Closing that, following the Closing, would have required the approval of the Required Holders pursuant to this
Agreement or the Notes.

 

Section 3.4             Corporate
Actions.

 

(a)           Authorized
Common Stock. All shares of Common Stock delivered upon conversion of the Notes shall be newly issued shares or shares held in treasury
by Issuer, shall have been duly authorized and validly issued and shall be fully paid and nonassessable, and free of any Lien, except
restrictions imposed by the Securities Act and any applicable state or foreign securities laws. Following the approval and adoption of
the Certificate of Incorporation Amendment, Issuer shall at all times reserve and keep available out of its authorized but unissued
shares of Common Stock, solely for the purpose of effecting the conversion of the Notes, such number of its shares of Common Stock as
shall from time to time be sufficient to effect the conversion of all outstanding Notes.

 

(b)           Certain
Adjustments. If any occurrence since the Execution Date until the Closing would have resulted in an adjustment to the Conversion
Price (as defined in the Note) pursuant to Section 7 of the Note if the Note had been issued and outstanding since the Execution
Date, Issuer shall adjust the Conversion Price, effective as of the Closing, in the same manner as would have been required by Section 7
of the Note if the Note had been issued and outstanding since the Execution Date.

 

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Section 3.5             Confidentiality.
Until the twelve (12) month anniversary of the Closing Date, (a) each party to this Agreement will hold, and will use commercially
reasonable efforts to cause its respective Affiliates and its and their respective Representatives to hold, in strict confidence, all
non-public records, books, contracts, instruments, computer data and other data and information (collectively, “Information”)
concerning the other party hereto and its respective Subsidiaries and Affiliates furnished to it by the other party or its Representatives
pursuant to this Agreement or the Non-Disclosure Agreement, dated as of August 7, 2022, between Issuer and Retail Ecommerce Ventures
LLC (the “Confidentiality Agreement”) (except to the extent that such information was or becomes (1) known by
such party from other sources, provided that such source was not known by such party to be bound by a contractual, legal or fiduciary
obligation of confidentiality to the other party, (2) publicly available through no disclosure by such party in breach of this ‎Section 3.5
by such party) or (3) independently developed by or on behalf of such party without violating
any of its obligations under this Section 3.5, and (b) neither party hereto shall release or disclose such Information
to any other Person, except its Representatives who are aware of the confidential nature of such Information and who have agreed to keep
such Information strictly confidential. Notwithstanding the foregoing, each party to this Agreement may disclose Information to the extent
that (1) disclosure to a regulatory authority is necessary or appropriate in connection with any necessary regulatory approval required
to be obtained in connection with this Agreement and the other Transaction Documents and the consummation of the transactions contemplated
hereby and thereby or (2) disclosure is required or requested by legal, judicial or administrative process or by other requirement
of law or the applicable requirements of any regulatory agency or relevant stock exchange.

 

Section 3.6             Nasdaq
Listing of Shares. Issuer shall file prior to the Closing Date the Nasdaq Listing Submission.

 

Section 3.7             State
Securities Laws. Prior to the Closing, Issuer shall use its commercially reasonable efforts (a) obtain all necessary Permits
and qualifications, if any, or secure an exemption therefrom, required by any state or country prior to the offer and sale of the Notes
and (b) cause such authorization, approval, Permit or qualification to be effective as of the Closing and as of any conversion of
the Notes.

 

Section 3.8             Use
of Proceeds. Issuer intends to use the proceeds of the sale of the Notes as set forth on Schedule 3.8.

 

Section 3.9             Further
Assurances. Subject to the other terms and conditions of
this Agreement, Issuer and each of the Purchasers, severally and not jointly, agrees to execute and deliver all such documents or
instruments, to take all commercially reasonable actions and to do all other commercially reasonable things it determines to be necessary,
proper or advisable under applicable Laws or as otherwise reasonably requested by any other party to consummate the transactions contemplated
by this Agreement.

 

Section 3.10           Notice
of Breach. From and after the Execution Date and until the earlier to occur of the Closing or the termination of this Agreement
pursuant to Section 6.16, Issuer and each Purchaser shall promptly give written notice with reasonable
particularity upon becoming aware of any matter that may constitute a material breach of any representation, warranty, agreement,
covenant or obligation of Issuer or a Purchaser contained in this Agreement that would reasonably be expected to cause any condition
to Closing set forth in Section 1.3(a), Section 1.3(b) or Section 1.3(c) not to be
satisfied.

 

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Section 3.11           Post-Closing
Covenants. Within thirty (30) calendar days after the Closing Date (or such later date as determined by the Required Holders in their
sole discretion), the Collateral Agent shall have received certificates of insurance together with lenders loss payable and additional
insured endorsements, in each case, in favor of the Collateral Agent on behalf of the Secured Parties, and such certificates and endorsements
shall (i) name the Collateral Agent, on behalf of Secured Parties, as an additional insured thereunder as its interests may appear,
to the extent customary for such type of insurance and (ii) in the case of each casualty insurance policy and marine cargo insurance
policy, contain a lender’s loss payable clause and endorsement or such other customary endorsement, reasonably satisfactory in
form and substance to the Collateral Agent, that names the Collateral Agent, on behalf of the Secured Parties, as the loss payee and
mortgagee, if applicable, thereunder and to the extent available provides for at least thirty (30) days’ prior written notice to
the Collateral Agent of any cancellation of such policy.

 

Section 3.12           Term
Loan Agreement Covenants Incorporated by Reference. The affirmative and negative covenants contained in the following Sections
of the Term Loan Agreement (including related definitions to the extent not separately defined herein) are hereby incorporated by
reference mutatis mutandis as if set forth in their entirety herein: Sections 5.01 (Existence; Businesses and Properties);
subject to Section 3.11(a) of this Agreement, 5.02 (Insurance); 5.03 (Taxes); 5.04 (Financial Statements,
Reports, etc.); 5.05 (Notice of Material Events); 5.06 (Compliance with Laws); 5.07 (Maintaining Records; Access to Properties
and Inspections); 5.08 (Compliance with Environmental Laws); 5.09 (Further Assurances; Additional Guarantors; Mortgages); 5.10
(Fiscal Year; Accounting), 5.12(d) (Administrative of Deposit Accounts; Control Agreements); 6.01 (Indebtedness) (provided that
(i) the Indebtedness baskets set forth in such Section 6.01 shall be expanded to permit the Indebtedness of the Note
Parties constituting Term Loan Obligations; provided that the aggregate outstanding principal amount of such Indebtedness shall not
to exceed the principal amount of Term Loan Obligations outstanding on the Closing Date (as such principal amount may be increased
by the addition of capitalized (i.e., paid in kind) interest accruing on the Term Loan Obligations) and Permitted Refinancing
Indebtedness in respect thereof and (ii) the Indebtedness baskets set forth in such Section 6.01 shall permit the
Indebtedness of the Note Parties constituting ABL Loan Obligations without regard to any limits or restrictions set forth in the
Term Loan Agreement); 6.02 (Liens) (provided that (i) the Lien baskets set forth in such Section 6.02 shall be
expanded to permit any Lien created under the Term Loan Documents and securing Term Loan Obligations and (ii) the Lien baskets
set forth in such Section 6.02 shall permit any Lien created under the ABL Loan Documents and securing the ABL Loan
Obligations); 6.03 (Sale and Lease Back Transactions); 6.04 (Investments, Loans and Advances); 6.05 (Mergers, Consolidations and
Dispositions); 6.06 (Dividends and Distributions); 6.07 (Transactions with Affiliates); 6.08 (Business of Holdings, the Borrower and
the Subsidiaries); 6.09 (Limitation on Modification of Indebtedness; Modification of Certificate of Incorporation, By-Laws and
Certain Other Agreements; etc.) (provided that such covenant shall not include any restriction on (x) the amendment of
the ABL Loan Documents or the terms of the ABL Loan Obligations or (y) the amendment of the Term Loan Documents or the terms of
the Term Loan Obligations or the payment of the Term Loan Obligations, in each case, to the extent such amendments do not contravene
the applicable Intercreditor Agreement); and 6.12 (Foreign Subsidiaries); provided that (i) any reference therein to the
 “Administrative Agent” shall be deemed to refer to the Collateral Agent (as defined herein) (provided, however,
that all items required to be delivered to the Collateral Agent hereunder for further delivery to the Holders shall instead be
required to be delivered directly by the Issuer to each Holder), (ii) any reference therein to the “Borrower” shall
be deemed to refer to TUEM Inc. (as defined herein), (iii) any reference therein to the “Intercreditor Agreement”
shall be deemed to refer to each Intercreditor Agreement (as defined herein), (iv) any reference therein to the
 “Lenders” shall be deemed to refer to the Holders (as defined herein), (v) any reference therein to the “Loan
Parties” shall be deemed to refer to the Note Parties (as defined herein), (vi) any reference therein to any “Loan
Document” shall be deemed to refer to any Note Document (as defined herein), (vii) any reference therein to the
 “Required Lenders” shall be deemed to refer to the Required Holders (as defined herein), (viii) any reference
therein to a “Change in Control” shall be deemed to refer to a “Fundamental Transaction” (as defined in the
applicable Note), (ix) any reference therein to “Permitted Refinancing Indebtedness” shall have the meaning set
forth herein, (x) any reference therein to “Material Indebtedness” shall include the Term Loan Obligations and
(xi) solely with respect to Section 6.08 of the Term Loan Agreement, any reference therein to the ABL Loan Documents shall
be deemed to refer to both the ABL Loan Documents and the Term Loan Documents and any reference therein to the ABL Loan Obligations
shall be deemed to refer to both the ABL Loan Obligations and the Term Loan Obligations) and (xii) other than as applicable to
the FILO C Notes, any applicable covenants shall be subject to 10% setbacks or cushions, as applicable, customary for subordinated
indebtedness; provided, further, that (A) any negative covenant baskets (or similar concept) incorporated into this Agreement
by reference to the Term Loan Agreement pursuant to this Agreement are subject to Section 3.3 of this Agreement in all
respects, (B) any negative covenant baskets (or similar concept) incorporated into this Agreement pursuant to this
Section that include a dollar cap for any term of years shall be set at the level of availability thereunder as in effect in
the Term Loan Agreement on the Execution Date as opposed to the dollar amount actually specified in such negative covenant basket
(or similar concept) on the Execution Date and (C) notwithstanding anything to the contrary set forth in this Section 3.12
(including any negative covenant baskets incorporated by reference pursuant to this Section 3.12), the Note Parties will
not, and will not permit any of their Subsidiaries to, issue any Notes (other than as contemplated by this Agreement) or issue any
other securities that would cause a breach or default under the Notes; provided, further, that, at all times prior to the occurrence
of Payment in Full of the ABL Obligations (each as defined in the ABL Intercreditor Agreement) or the Term Loan Obligations Payment
Date (as defined in the Term Loan – FILO C Intercreditor Agreement), the Note Parties shall be deemed to have satisfied the
requirements of Section 5.12(d) of the Term Loan Agreement (as incorporated by reference herein) with respect to
any Deposit Account, commodity account or securities account that is subject to a control agreement in favor of the ABL
Administrative Agent or the Term Loan Agent. Notwithstanding the foregoing, each of the negative covenants incorporated by reference
shall be subject to the terms of each Intercreditor Agreement, including any terms related to the enforcement of rights and remedies
to the release of liens in connection therewith or in connection with any post-default sale.

 

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Section 3.13           Directors’
and Officer’s Indemnification and Insurance.

 

(a)            From
and after the Closing, Issuer shall indemnify and hold harmless the present and former officers and directors of Issuer and its
subsidiaries (each, an “D&O Indemnified Party”) in respect of acts or omissions with their capacity as such occurring
at or prior to the Closing or related to this Agreement to the fullest extent permitted by the DGCL or any other applicable law or provided
under the Issuer’s Certificate of Incorporation and Bylaws as in effect on the Execution Date. For six years after the Closing, Issuer
shall cause to be maintained in effect provisions in the Issuer’s Certificate of Incorporation and Bylaws (or in such documents
of any successor to the business of the Issuer) regarding indemnification of directors and officers and advancement of expenses that,
solely to the extent affecting the D&O Indemnified Parties (in their capacity as such) are no less advantageous to the D&O Indemnified
Parties than the corresponding provisions in the Issuer’s Certificate of Incorporation and Bylaws as in effect on the Execution
Date.

 

(b)            Prior
to the Closing, Issuer shall obtain and fully pay the premium for the non-cancellable “tail” insurance policies with
respect to Issuer’s existing directors’ and officers’ insurance policies and Issuer’s existing fiduciary liability
insurance policies (collectively, “D&O Insurance”), in each case for a claims reporting or discovery period of at least
six (6) years from and after the Closing with respect to any claim related to any period of time at or prior to the Closing from
an insurance carrier with the same or better credit rating as the Issuer’s current insurance carrier with respect to D&O Insurance
with benefits and levels of coverage that are no less favorable than the benefits and levels of coverage provided under the Issuer’s
existing policies with respect to any actual or alleged error, misstatement, misleading statement, act, omission, neglect, breach of
duty or any matter claimed against a director or officer of the Issuer or any of its subsidiaries by reason of him or her serving in
such capacity that existed or occurred at or prior to the Closing (including in connection with this Agreement or the transactions or
actions contemplated hereby). If Issuer for any reason fails to obtain such “tail” insurance policies as of the Closing, Issuer
shall continue to maintain in effect, for a period of at least six years from and after the Closing, the D&O Insurance in place as
of the Execution Date with Issuer’s current insurance carrier or with an insurance carrier with the same or better credit rating
as Issuer’s current insurance carrier with respect to D&O Insurance with benefits and levels of coverage that are no less favorable
than the benefits and levels of coverage provided under Issuer’s existing policies as of the Execution Date. Notwithstanding anything
to the contrary in this Section 3.13(b), in no event will Issuer expend a premium for such coverage in excess of 300 percent
of the last annual premium paid by Issuer for such insurance prior to the Execution Date (such amount, the “Maximum Amount”),
and if such insurance coverage cannot be obtained at a premium equal to or less than the Maximum Amount, Issuer shall obtain the
greatest coverage available for a cost not exceeding the Maximum Amount.

 

Section 3.14       Remedy
for Non-Compliance. Notwithstanding anything to the contrary in this Agreement, in the event of any non-compliance with the covenants
set forth in Sections 3.11 and 3.12, the sole and exclusive remedy available to the Purchasers shall be to exercise the rights and remedies
available to the Purchasers under Section 4 of the Notes.

 

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Article IV

INDEMNIFICATION, COSTS AND EXPENSES

 

Section 4.1         Indemnification
by Issuer. Issuer agrees to indemnify each Purchaser, its Affiliates and its and their respective Representatives (collectively,
the “Purchaser Indemnitees”) from all costs, losses, liabilities, damages or expenses of any kind or nature whatsoever,
and hold each of them harmless against, any and all actions, suits, proceedings (including any investigations, litigation or inquiries),
claims, demands and causes of action, and, in connection therewith, promptly upon demand, pay or reimburse each of them for all costs,
losses, liabilities, damages, or expenses of any kind or nature (including the reasonable fees and disbursements of counsel and all other
reasonable expenses incurred in connection with investigating, defending or preparing to defend any such matter that may be incurred
by them or asserted against or involve any of them), whether or not involving a Third-Party Claim, as a result of, arising out of, or
in any way related to the breach of any of the representations, warranties, covenants or agreements of Issuer contained herein,; provided
that, such claim for indemnification relating to the breach of representations, warranties, covenants or agreements is made prior
to the expiration of the survival period of such representation, warranty, covenant or agreement as set forth in ‎Section 6.1;
provided, further, that for purposes of determining when an indemnification claim has been made, the date upon which a
Purchaser Indemnitee shall have given notice (stating in reasonable detail the basis of the claim for indemnification) to Issuer shall
constitute the date upon which such claim has been made. No Purchaser Indemnitee shall be entitled to recover special, indirect, exemplary,
lost profits, speculative or punitive damages under this ‎Section 4.1; provided, however, that such limitation
shall not prevent any Purchaser Indemnitee from recovering under this ‎Section 4.1 for any such damages to the extent
that such damages (A) are in the form of diminution in value or are payable to a third party in connection with any Third-Party
Claims or (B) (1) were reasonably foreseeable as of the Execution Date and (2) were proximately caused by the applicable
breach giving rise to the applicable claim for indemnification hereunder.

 

Section 4.2         Indemnification
by the Purchasers. Each Purchaser agrees, severally and not jointly, to indemnify Issuer, its Affiliates and its and their
respective Representatives (collectively, the “Issuer Indemnitees”) from, all costs, losses, liabilities,
damages, or expenses of any kind or nature, and hold each of them harmless against, any and all actions, suits, proceedings
(including any investigations, litigation or inquiries), claims, demands, and causes of action, and, in connection therewith,
promptly upon demand, pay or reimburse each of them for all costs, losses, liabilities, damages, or expenses of any kind or nature
(including the reasonable fees and disbursements of counsel and all other reasonable expenses incurred in connection with
investigating, defending or preparing to defend any such matter that may be incurred by them or asserted against or involve any of
them), whether or not involving a Third-Party Claim, as a result of, arising out of, or in any way related to the breach of any of
the representations, warranties or covenants of such Purchaser contained herein; provided that such claim for indemnification
relating to a breach of any representation or warranty is made prior to the expiration of the survival period of such
representation, warranty or covenant as set forth in ‎Section 6.1; provided,
further, that for purposes of determining when an indemnification claim has been made, the date upon which an Issuer Indemnitee
shall have given notice (stating in reasonable detail the basis of the claim for indemnification) to such Purchaser shall constitute
the date upon which such claim has been made; provided, further, that the aggregate liability of such Purchaser shall not be
greater in amount than the Purchase Price paid by such Purchaser. No Issuer Indemnitee shall be entitled to recover special,
indirect, exemplary, lost profits, speculative or punitive damages under this ‎Section 4.2; provided,
however, that such limitation shall not prevent any Issuer Indemnitee from recovering under this ‎Section 4.2
for any such damages to the extent that such damages (A) are in the form of diminution in value or are payable to a third party
in connection with any Third-Party Claims or (B) (1) were reasonably foreseeable as of the Execution Date and
(2) were proximately caused by the applicable breach giving rise to the applicable claim for indemnification
hereunder.

 

Section 4.3         Indemnification
Procedure.

 

(a)            A
claim for indemnification for any matter not involving a Third-Party Claim may be asserted by notice to the party from whom
indemnification is sought; provided, however, that failure to so notify the indemnifying party shall not preclude the
indemnified party from any indemnification which it may claim in accordance with this ‎Article IV, except as
otherwise provided in ‎Section 4.1 and ‎Section 4.2.

 

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(b)            Promptly
after any Issuer Indemnitee or Purchaser Indemnitee (hereinafter, the “Indemnified Party”) has received notice of
any indemnifiable claim hereunder, or the commencement of any action, suit or proceeding by a third person, which the Indemnified
Party believes in good faith is an indemnifiable claim under this Agreement (each a “Third-Party Claim”), the
Indemnified Party shall give the indemnitor hereunder (the “Indemnifying Party”) written notice of such
Third-Party Claim, but failure to so notify the Indemnifying Party will not relieve the Indemnifying Party from any liability it may
have to such Indemnified Party hereunder except to the extent that the Indemnifying Party is materially prejudiced by such failure.
Such notice shall state the nature and the basis of such Third-Party Claim to the extent then known. The Indemnifying Party
shall have the right to defend and settle, at its own expense and by its own counsel who shall be reasonably acceptable to the
Indemnified Party, any such matter as long as the Indemnifying Party pursues the same diligently and in good faith. If the
Indemnifying Party undertakes to defend or settle, it shall promptly, and in no event later than ten (10) days, notify the
Indemnified Party of its intention to do so, and the Indemnified Party shall cooperate with the Indemnifying Party and its counsel
in all commercially reasonable respects in the defense thereof and the settlement thereof. Such cooperation shall include, but shall
not be limited to, furnishing the Indemnifying Party with any books, records and other information reasonably requested by the
Indemnifying Party and in the Indemnified Party’s possession or control. Such cooperation of the Indemnified Party shall be at
the cost of the Indemnifying Party. After the Indemnifying Party has notified the Indemnified Party of its intention to undertake to
defend or settle any such asserted liability, and for so long as the Indemnifying Party diligently pursues such defense, the
Indemnifying Party shall not be liable for any additional legal expenses incurred by the Indemnified Party in connection with any
defense or settlement of such asserted liability; provided, however, that the Indemnified Party shall be entitled (i) at
its expense, to participate in the defense of such asserted liability and the negotiations of the settlement thereof and
(ii) if (A) the Indemnifying Party has, within ten (10) business days of when the Indemnified Party provides written
notice of a Third-Party Claim, failed (1) to assume the defense or employ counsel reasonably acceptable to the Indemnified
Party or (2) to notify the Indemnified Party of such assumption or (B) if the defendants in any such action include both
the Indemnified Party and the Indemnifying Party and counsel to the Indemnified Party shall have concluded that there may be
reasonable defenses available to the Indemnified Party that are different from or in addition to those available to the Indemnifying
Party or if the interests of the Indemnified Party reasonably may be deemed to conflict with the interests of the Indemnifying
Party, then the Indemnified Party shall have the right to select a separate counsel and to assume such legal defense and otherwise
to participate in the defense of such action, with the expenses and fees of such separate counsel and other expenses related to such
participation to be reimbursed by the Indemnifying Party as incurred. Notwithstanding any other provision of this Agreement, the
Indemnifying Party shall not settle any indemnified claim without the consent of the Indemnified Party, unless the settlement
thereof imposes no liability or obligation on, and includes a complete release from liability of, and does not include any admission
of wrongdoing or malfeasance by, the Indemnified Party. The remedies set forth in this Article IV are cumulative and are
not exclusive of any remedies that may be available to a party at law or in equity or otherwise.

 

Section 4.4         Tax
Matters. All indemnification payments made under this ‎Article IV
shall be treated as adjustments to the relevant Purchaser’s Purchase Price for all Tax purposes except as otherwise required by
applicable Law.

 

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Article V

ADDITIONAL AGREEMENTS

 

Section 5.1         Certificate
of Incorporation Amendment. As promptly as practicable after Closing and the conversion of the immediately convertible portion of
the Notes issued to the Lead Investor , (x) the Lead Investor shall approve the Certificate of Incorporation Amendment by a stockholder
written consent in accordance with the Certificate of Incorporation and Bylaws or (y) Issuer shall provide each stockholder entitled
to vote at the next special or annual meeting of stockholders of Issuer (the “Stockholder Meeting”), which shall be
promptly called and held, a proxy statement, substantially in the form which has been previously reviewed by the Purchasers, soliciting
each such stockholder’s affirmative vote at the Stockholder Meeting for approving the Certificate of Incorporation Amendment, and
Issuer shall use its reasonable best efforts to solicit its stockholders’ approval of such resolutions and to cause the Board to
recommend to the stockholders that they approve such resolutions. Issuer shall be obligated to use its reasonable best efforts to obtain
the approval of the Certificate of Incorporation Amendment as promptly as practicable after the conversion of the immediately convertible
portion of the Notes issued to the Lead Investor and the Lead Investor shall vote all of its shares of Common Stock in favor of approving
the Certificate of Incorporation Amendment. If, despite Issuer’s reasonable best efforts, the approval of the Certificate of Incorporation
Amendment is not obtained on or prior to the Stockholder Meeting Deadline, Issuer shall cause an additional Stockholder Meeting
to be held every ninety (90) days thereafter until such approval of the Certificate of Incorporation Amendment is obtained.

 

Section 5.2         Legend.

 

(a)            The
Purchasers agree that all certificates or other instruments representing the Notes and the Common Stock subject to this Agreement will
bear a legend substantially to the following effect:

 

[NEITHER] THIS SECURITY [NOR THE SECURITIES
INTO WHICH THIS SECURITY IS CONVERTIBLE] HAS [NOT] BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION
OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR
PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND
IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. THIS SECURITY [AND THE SECURITIES ISSUABLE UPON CONVERSION OF THIS SECURITY] MAY BE
PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT
IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT.

 

(b)            In
the event that a Note or the Common Stock subject to this Agreement are uncertificated, Issuer shall give notice of such legend
in accordance with applicable Law.

 

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Section 5.3         Tax
Matters.

 

(a)            Subject
to the following sentence in this Section 5.3(a), Issuer (and any paying agent of Issuer) may deduct and withhold any
withholding Taxes or other amounts required to be withheld with respect to the Notes (as determined in the good faith discretion of Issuer)
and may set off any such amounts required to be withheld against payments (whether made in cash or other property) on the Notes; provided,
that Issuer shall (i) provide written notice to any Purchaser of any such deduction or withholding with respect to such Purchaser
reasonably in advance thereof and (ii) cooperate with each Purchaser in good faith to minimize, to the extent permissible under
then applicable Law, the amount of any such deduction or withholding.

 

(b)            Each
Purchaser shall provide Issuer with a valid and duly executed Internal Revenue Service Form W-9, Form W-8BEN. W8-BEN-E
or, in the case of a Purchaser that is not a beneficial owner, Form W-8IMY (accompanied by applicable certification documents from
each beneficial owner, as applicable), as appropriate. In addition, any Purchaser that is entitled to an exemption from or reduction
of withholding Tax with respect to payments made with respect to the Notes shall deliver to Issuer, at the time or times reasonably requested
by Issuer, such properly completed and executed documentation that is not described in the preceding sentence that is reasonably requested
by Issuer, as will permit such payments to be made without withholding or at a reduced rate of withholding. Moreover, any Purchaser,
if reasonably requested by Issuer, shall deliver such other documentation prescribed by applicable Law or reasonably requested by Issuer
as will enable Issuer to determine whether or not such Purchaser is subject to backup withholding or information reporting requirements
and whether such Purchaser has complied with its obligations under FATCA. Each Purchaser agrees that if any form or certification it
previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly
notify the Issuer in writing of its legal inability to do so.

 

Section 5.4         Removal
of Legend.

 

(a)            Issuer,
at its sole cost and expense, shall remove the legend described in Section 5.2 (or instruct its transfer agent to so remove
such legend) from the book-entry account evidencing the Securities if (i) such Securities are sold pursuant to an effective registration
statement under the Securities Act, (ii) such Securities are sold or transferred pursuant to Rule 144 (if the transferor is
not an Affiliate of Issuer), or (iii) such Securities are eligible for sale under Rule 144, without the requirement for Issuer
to be in compliance with the current public information required under Rule 144(c)(1) (or Rule 144(i)(2), if applicable)
as to such securities and without volume or manner of sale restrictions.

 

    26 

     

    

 

(b)            In
connection with a sale of the Securities by a Purchaser in reliance on Rule 144, the applicable Purchaser or its broker shall
deliver to the transfer agent and Issuer a broker customary representation letter providing to the transfer agent and Issuer any
information necessary to determine that the sale of the Securities is made in compliance with Rule 144, including, as may be
appropriate, a certification that such Purchaser is not an Affiliate of Issuer and regarding the length of time the Securities have
been held. Upon receipt of such representation letter, Issuer shall promptly direct its transfer agent to remove the legend
referred to in Section 5.2 from the appropriate book-entry accounts maintained by the transfer agent, and Issuer shall
bear all direct costs and expenses associated therewith. After any Purchaser or its permitted assigns have held the Securities for
such time as non-Affiliates are permitted to sell without volume limitations under Rule 144, if the book-entry account for such
Securities still bears the restrictive legend referred to in Section 5.2, Issuer agrees, upon request of any
Purchaser or its permitted assignees, to take all steps necessary to promptly effect the removal of the legend described in Section 5.2
from the Securities, and Issuer shall bear all direct costs and expenses associated therewith, regardless of whether the
request is made in connection with a sale or otherwise, so long as such Purchaser or its permitted assigns provide to Issuer any
information Issuer deems reasonably necessary to determine that the legend is no longer required under the Securities Act or
applicable state laws, including a certification that the holder is not an Affiliate of Issuer (and a covenant to inform Issuer if
it should thereafter become an Affiliate and to consent to the notation of an appropriate restrictive legend) and regarding the
length of time the Securities have been held. Issuer shall cooperate with each Purchaser to effect the removal of the legend
referred to in Section 5.2 at any time such legend is no longer appropriate.

 

Section 5.5         Collateral
Agent.

 

(a)            Each
Purchaser who will purchase FILO C Notes (in its capacity as a Purchaser and, upon issuance of the FILO C Notes, in its capacity as a
FILO C Note Holder) hereby (i) appoints TASCR Ventures CA, LLC, as the collateral agent to act on its behalf hereunder and under
the Security Documents (in such capacity, the “FILO C Collateral Agent”), and (ii) authorizes the FILO C Collateral
Agent (and its officers, directors, employees and agents) to take such action on such Purchaser’s behalf in accordance with the
terms hereof and thereof, including, without limitation, to enter into each applicable Intercreditor Agreement, to perform its obligations
thereunder and to subordinate the Liens on the Collateral securing the FILO C Notes Obligations as set forth therein. Each Purchaser
who will purchase JSC Notes or Management JSC Notes (in its capacity as a Purchaser and, upon issuance of the JSC Notes and the Management
JSC Notes, in its capacity as a JSC Note Holder and/or Management JSC Note Holder, as applicable) hereby (i) appoints TASCR Ventures
CA, LLC, as the collateral agent to act on its behalf hereunder and under the Security Documents (in such capacity, the “JSC
Collateral Agent”), and (ii) authorizes the JSC Collateral Agent (and its officers, directors, employees and agents) to
take such action on such Purchaser’s behalf in accordance with the terms hereof and thereof, including, without limitation, to
enter into each applicable Intercreditor Agreement, to perform its obligations thereunder and to subordinate the Liens on the Collateral
securing the JSC Notes Obligations and the Management JSC Notes Obligations as set forth therein. The Collateral Agent shall not have,
by reason hereof or pursuant to any Security Documents, a fiduciary relationship in respect of any Purchaser. Neither the Collateral
Agent nor any of its officers, directors, employees and agents shall have any liability to any Purchaser for any action taken or omitted
to be taken in connection hereof or the Security Documents except to the extent caused by its own gross negligence or willful misconduct,
and each Purchaser agrees to defend, protect, indemnify and hold harmless the Collateral Agent and all of its officers, directors, employees
and agents (collectively, the “Collateral Agent Indemnitees”) from and against any losses, damages, liabilities, obligations,
penalties, actions, judgments, suits, fees, costs and expenses (including, without limitation, reasonable attorneys’ fees, costs
and expenses) incurred by such Collateral Agent Indemnitee, whether direct, indirect or consequential, arising from or in connection
with the performance by such Collateral Agent Indemnitee of the duties and obligations of Collateral Agent pursuant hereto or any of
the Security Documents.

 

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(b)            The
Collateral Agent shall be entitled to rely upon any written notices, statements, certificates, orders or other documents or any telephone
message believed by it in good faith to be genuine and correct and to have been signed, sent or made by the proper Person, and with respect
to all matters pertaining to this Agreement or any of the other Transaction Documents and its duties hereunder or thereunder, upon advice
of counsel selected by it.

 

(c)            The
Collateral Agent may resign from the performance of all its functions and duties hereunder and under the Notes and the Security Documents
at any time by giving at least ten (10) business days prior written notice to Issuer and each holder of the Notes. Such resignation
shall take effect upon the acceptance by a successor Collateral Agent of appointment as provided below. Upon any such notice of resignation,
the Required Holders shall appoint a successor Collateral Agent. Upon the acceptance of the appointment as Collateral Agent, such successor
Collateral Agent shall succeed to and become vested with all the rights, powers, privileges and duties of the retiring Collateral Agent,
and the retiring Collateral Agent shall be discharged from its duties and obligations under this Agreement, the Notes and the Collateral
Agreement. After any Collateral Agent’s resignation hereunder, the provisions of this Section 5.5 shall inure to its benefit.
If a successor Collateral Agent shall not have been so appointed within said ten (10) business day period, the retiring Collateral
Agent shall then appoint a successor Collateral Agent who shall serve until such time, if any, as the Required Holders appoint a successor
Collateral Agent as provided above.

 

(d)            Issuer
hereby covenants and agrees to take all actions as promptly as practicable reasonably requested by either the Required Holders or
the Collateral Agent (or its successor), from time to time pursuant to the terms of this Section 5.5, to secure a successor
Collateral Agent satisfactory to such requesting part(y)(ies), in their sole discretion, including, without limitation, by
paying all fees of such successor Collateral Agent, by having Issuer agree to indemnify any successor Collateral Agent and by each
of Issuer executing a collateral agency agreement or similar agreement and/or any amendment to the Security Documents reasonably
requested or required by the successor Collateral Agent.

 

Section 5.6         Board.
Issuer shall take such actions as are necessary to cause the Board to consist solely of the following persons: five individuals designated
by the Lead Investor in writing to Issuer prior to the Closing and who are reasonably acceptable to the Board, the Chief Executive Officer
of Issuer and three individuals who qualify as “independent” for all purposes under the rules and regulations of Nasdaq
and who are designated prior to the Closing and reasonably acceptable to the Board and the Lead Investor; with Issuer to use its reasonable
best efforts to cause such Board composition to be effective immediately following the Closing or at such later time with respect to
any individuals as may be agreed by Issuer and Lead Investor prior to Closing.

 

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Article VI

MISCELLANEOUS

 

Section 6.1         Survival;
Limitations on Liability. The representations and warranties of the parties contained in this Agreement shall survive for a period
of twelve (12) months following the Closing, except the representations and warranties of Issuer contained in Sections 2.1(b)(i),
2.1(c), 2.1(d) and 2.1(o) shall survive indefinitely. All of the covenants or other agreements of the
parties contained in this Agreement shall survive indefinitely until fully performed or performance is no longer required; provided,
however, that all covenants for which performance is required on or prior to Closing shall survive for a period of twelve (12) months
following the Closing. All indemnification obligations of Issuer and the Purchasers pursuant to this Agreement and the provisions of
Article IV shall remain operative and in full force and effect unless such obligations are expressly terminated in a writing
by the parties, regardless of any purported general termination of the Agreement.

 

Section 6.2         Expenses.

 

(a)            Except
as otherwise provided in Section 6.2(b) and Section 6.2(c), each of the parties to this Agreement will bear
and pay all costs and expenses incurred by it or on its behalf in connection with the transactions contemplated pursuant to this Agreement.

 

(b)            Subject
to the last sentence of this Section 6.2(b), the Note Parties shall pay for or reimburse the Lead Investor, REV, Ayon and
Pier 1 for all reasonable and documented legal fees and legal expenses incurred in connection with the transactions contemplated by the
Transaction Documents (collectively, “Purchaser Transaction Expenses”). Notwithstanding the foregoing, Issuer
shall not be obligated to pay the Purchaser Transaction Expenses to the extent this Agreement is terminated in accordance with its terms
prior to the Closing unless this Agreement is terminated as a direct result of a material breach of this Agreement by Issuer.

 

(c)            Without
duplication of Section 6.2(b), the Issuer agrees to pay following the Closing within thirty (30) days of demand therefor
(together with backup documentation reasonably supporting such request) (i) all reasonable and documented (in summary format) out-of-pocket
expenses incurred by the Collateral Agent and the Lead Investor, in each case, in connection with the preparation of this Agreement and
the other Note Documents, or by the Collateral Agent and the Lead Investor, in each case, in connection with the administration of this
Agreement (including expenses incurred in connection with due diligence and initial and ongoing Collateral examination to the extent
incurred with the reasonable prior approval of the Issuer and the reasonable and documented (in summary format) out-of-pocket fees, disbursements
and charges for outside counsel to the Collateral Agent and the Lead Investor, or by the Collateral Agent and the Lead Investor, in each
case, in connection with the administration of this Agreement and any amendments, modifications or waivers of the provisions hereof or
thereof (whether or not the transactions hereby contemplated shall be consummated) and (ii) all reasonable and documented out-of-pocket
expenses incurred by (A) the Collateral Agent or (B) the Lead Investor, in each case, in connection with the enforcement or
protection of their rights in connection with this Agreement and the other Note Documents and in connection with the Notes made hereunder.

 

Section 6.3         Amendment;
Waiver; Voting; Control of Remedies.

 

(a)            No
provision of this Agreement or any other Note Document (other than with respect to the Notes, as expressly set forth therein) may be
amended or waived other than by an instrument in writing signed by Issuer and the Required Holders, and any amendment or waiver to
this Agreement made in conformity with the provisions of this Section 6.3 shall be binding on the Note Parties, all Purchasers
and all holders of Securities as applicable; provided, that the provisions of this Section 6.3 and Sections 5.5 and 6.2
cannot be amended without the additional prior written approval of the Collateral Agent (or its successor) to the extent it
would be adversely affected thereby.

 

    29 

     

    

 

(b)           Notwithstanding
anything herein or in any other Note Document to the contrary:

 

(i)           no
Holder may accelerate the Obligations under any of its Notes without the consent of the Required Holders; provided that no such
consent shall be required following the occurrence of an Event of Default described in Sections 4(a)(vi), (xi), (xiii) or (xiv) of
each Note and following any such Event of Default any Holder may accelerate the Obligations owing under its Notes; provided, further,
that no Holder may accelerate the Obligations under any of its Notes as a result of an Event of Default described in Section 4(a)(vi) thereof
so long as such Notes have received payments ratably with each other Note having the same priority under the Intercreditor Agreements;

 

(ii)          no
Secured Party (other than the Collateral Agent acting at the direction of the Required Holders) shall have any right individually to
take any Enforcement Action or otherwise exercise any rights or remedies with respect to any Collateral under the Note Documents, applicable
Law or otherwise;

 

(iii)         only
the Required Holders shall have the authority to direct the Collateral Agent to take any action, including the exercise or enforcement
of any remedies, under the Security Documents or with respect to the Collateral; and

 

(iv)        no
term or provision in any Note or any other Note Document may be amended or modified in a manner that is expressly contrary to the terms
of this Agreement or any Intercreditor Agreement.

 

Section 6.4         Counterparts.
For the convenience of the parties hereto, this Agreement may be executed in any number of separate counterparts, each such counterpart
being deemed to be an original instrument, and all such counterparts will together constitute the same agreement. Executed signature
pages to this Agreement may be delivered by facsimile or other means of electronic transmission (including by email in “.pdf”
format) and such facsimiles or other means of electronic transmission will be deemed as sufficient as if original signature pages had
been delivered.

 

Section 6.5         Governing
Law; Submission to Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of this Agreement
shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision
or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions
other than the State of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts
sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with
any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action
or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding
is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives
personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to
such party at the address for such notices to it under this Agreement and agrees that such service shall constitute good and sufficient
service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any
manner permitted by law.

 

    30 

     

    

 

Section 6.6         WAIVER
OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING
OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

Section 6.7         Notices.
Any notice, request, instruction or other document to be given hereunder by any party to the other will be in writing and will be
deemed to have been duly given (a) on the date of delivery if delivered personally or by telecopy, electronic mail or
facsimile, upon confirmation of receipt (it being understood that the parties agree to provide confirmation of receipt promptly upon
the receipt of any notice by telecopy, electronic mail or facsimile), (b) on the first business day following the date of
dispatch if delivered by a recognized next-day courier service, or (c) on the third business day following the date of mailing
if delivered by registered or certified mail, return receipt requested, postage prepaid. Each Purchaser agrees that any notice required
or permitted by this Agreement or under the Certificate of Incorporation, the Bylaws, the DGCL or other applicable Law may be given
to such Purchaser at the address or by means of electronic transmission set forth on Schedule I. All notices hereunder shall
be delivered as set forth below, or pursuant to such other instructions as may be designated in writing by the party to receive such
notice.

 

If to the Purchasers, to the addresses set forth on Schedule
I, with copies to (which copies shall not constitute notice):

 

Vinson & Elkins L.L.P.

1114 Avenue of the Americas

32nd Floor

New York, NY 10036

Attention: Patrick Gadson

Email: pgadson@velaw.com

 

and

 

Barnett
Kirkwood Koche Long & Foster

601 Bayshore Blvd., Suite 700

Tampa, FL  33606

Telephone: 813-253-2020

Attention: David L. Koche

E-mail: dkoche@barnettbolt.com

 

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If to Issuer or TUEM Inc.:

 

Tuesday Morning, Inc.

6250 LBJ Freeway

Dallas, Texas 75240

Attention: Marc Katz

Electronic Address: marck@tuesdaymorning.com

 

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

 

Haynes and Boone, LLP

2323 Victory Ave., Suite 700

Dallas, Texas 75219

Attention: Sakina Rasheed Foster

Electronic Address: sakina.foster@haynesboone.com

 

Troutman Pepper Hamilton Sanders LLP

600 Peachtree Street, Suite 3000

Atlanta, Georgia 30308

Attention: Eric A. Koontz

Electronic Address: eric.koontz@troutman.com

 

Wachtell, Lipton, Rosen & Katz

51 West 52nd Street

New York, New York 10019

Attention: David M. Silk

Electronic Address: dmsilk@wlrk.com

 

If to Collateral Agent:

 

TASCR Ventures CA, LLC

1010
N. Florida Avenue

Tampa, FL  33602

Telephone: 407-443-3444

Attention: Alex Chang

E-mail: alex@ayon.com

 

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

 

Barnett
Kirkwood Koche Long & Foster

601 Bayshore Blvd., Suite 700

Tampa, FL  33606

Telephone: 813-253-2020

Attention: David L. Koche

E-mail: dkoche@barnettbolt.com

 

    32 

     

    

 

Section 6.8             Entire
Agreement. This Agreement (including the Exhibits hereto), the Transaction Documents and the “Exclusivity” section of
that certain term sheet, dated August 31, 2022, by and between the Company, REV and Ayon constitute the entire agreement, and supersedes
all other prior agreements, understandings, representations and warranties, both written and oral, among the parties, with respect to
the subject matter hereof (including the Original Agreement).

 

Section 6.9             Assignment.
Neither this Agreement, nor any of the rights, interests or obligations hereunder shall be assigned by any of the parties hereto (whether
by operation of Law or otherwise) without the prior written consent of each of the other parties; provided, however, that
(a) any Purchaser may assign its rights, interests and obligations under this Agreement, in whole or in part, to one or more Affiliates
that are (i) “United States persons” within the meaning of Section 7701(a)(30) of the Code, (ii) “withholding
foreign partnerships” (within the meaning of Treasury Regulation Section 1.1441-5(c)(2)) that have assumed primary withholding
obligations under the Code, including Chapters 3 and 4 of the Code in accordance with this Agreement, or (iii) not a U.S. Person
within the meaning of Section 7701(a)(30) of the Code if such person provides a properly completed IRS Form W-8 and (b) in
order for such assignment to be effective, the assignee shall agree in writing to be bound by the provisions of this Agreement; provided,
that no such assignment will relieve such Purchaser of its obligations hereunder prior to the Closing.

 

Section 6.10           Interpretation;
Other Definitions. Wherever required by the context of this Agreement, the singular shall include the plural and vice versa, and
the masculine gender shall include the feminine and neuter genders and vice versa, and references to any agreement, document or instrument
shall be deemed to refer to such agreement, document or instrument as amended, supplemented or modified from time to time. All article,
section, paragraph or clause references not attributed to a particular document shall be references to such parts of this Agreement,
and all exhibit, annex and schedule references not attributed to a particular document shall be references to such exhibits, annexes
and schedules to this Agreement. In addition, the following terms are ascribed the following meanings:

 

(a)            the
word “or” is not exclusive;

 

(b)            the
words “including,” “includes,” “included” and “include” are
deemed to be followed by the words “without limitation”;

 

(c)            the
terms “herein,” “hereof” and “hereunder” and other words of similar import refer
to this Agreement as a whole and not to any particular section, paragraph or subdivision;

 

(d)            the
term “business day” means any day except Saturday, Sunday and any day which shall be a legal holiday or a day on which
banking institutions in the State of Texas generally are authorized or required by law or other governmental action to close;

 

(e)            any
reference to any “day” or any number of “days” without explicit reference to “business days”
shall be deemed to refer to a calendar day or number of calendar days, and if any action is to be taken on or by a particular calendar
day that is not also a business day, then such action may be deferred until the immediately succeeding business day; and

 

    33 

     

    

 

(f)            the
word “will” shall have the same meaning as the word “shall”;

 

(g)           the
term “Person” has the meaning given to it in Section 3(a)(9) of the Exchange Act and as used in Sections 13(d)(3) and
14(d)(2) of the Exchange Act.

 

(h)            “ABL
Administrative Agent” shall mean Wells Fargo Bank, National Association, in its capacity as “Administrative Agent”
under (and as defined in) the ABL Credit Agreement and the other ABL Loan Documents, together with its successors and assigns in such
capacity.

 

(i)             “ABL
Credit Agreement” shall mean that certain Credit Agreement, dated as of the Closing Date, by and among, inter alios, Issuer,
TUEM Inc., Intermediate Holdings, each of the Subsidiary Guarantors from time to time party thereto, the lenders from time to time
party thereto, Wells Fargo Bank, National Association, in its capacity as “Administrative Agent” and 1930P Loan Agent, LLC,
in its capacity as “FILO B Documentation Agent”, as the same may be amended, restated, amended and restated, supplemented
or otherwise modified from time to time.

 

(j)             “ABL
Facility Debt Prepayments” shall mean, collectively, (a) the repayment of the FILO A Obligations (as defined in the ABL
Credit Agreement) in full in a principal amount equal to $5,000,000, (b) the repayment of the FILO B Obligations (as defined in
the ABL Credit Agreement) in a principal amount equal to $2,500,000, and (c) the repayment of the Revolving Loans (as defined in
the ABL Credit Agreement) in a principal amount equal to $ $21,750,684, in each case, together with any applicable premium and accrued
interest.

 

(k)            “ABL
Intercreditor Agreement” shall mean that certain Intercreditor and Subordination Agreement, dated as of the Closing Date, by
and among the ABL Administrative Agent, the Collateral Agent and the Note Parties.

 

(l)             “ABL
Loan Documents” shall mean the “Loan Documents” as defined in the ABL Credit Agreement.

 

(m)           “ABL
Loan Obligations” shall mean the “Obligations” (under and as defined in the ABL Credit Agreement on the Closing
Date), and shall include all obligations of the Note Parties, which are incurred or owing under the ABL Loan Documents, including all
obligations in respect of the payment of principal, interest, fees, prepayment premiums and indemnification obligations, and obligations
in respect of any refinancing of such Indebtedness.

 

(n)            “ABL
Priority Collateral” shall have the meaning assigned such term in the Term Loan – FILO C Intercreditor Agreement.

 

(o)            “Account
Debtors” shall mean a Person who is obligated under an account, chattel paper or general intangible (each as defined in the
UCC).

 

(p)            “Affiliate”
shall mean, when used with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries,
Controls or is Controlled by or is under common Control with the Person specified; provided, however, neither the Collateral
Agent nor any Holder shall be deemed to be an Affiliate of the Issuer or its Subsidiaries with respect to transactions evidenced by any
Note Document.

 

(q)            “Ayon”
shall mean Ayon Capital, L.L.C. and its Affiliates.

 

    34 

     

    

 

(r)            “Bankruptcy
Code” shall mean Title 11 of the United States Code or any similar federal or state law for the relief of debtors, as
now and hereafter in effect, or any successor statute.

 

(s)            “Certificate
of Incorporation Amendment” shall mean an amendment to the Certificate of Incorporation to (i) increase the number of
authorized shares of Common Stock in an amount sufficient to allow for conversion in full of the Notes and provide such additional authorized
shares as shall be determined appropriate by the Board and (ii) authorize the Company to effect a reverse stock split of the Common
Stock at a ratio sufficient to cause the Company to regain compliance with the minimum bid price requirement under Nasdaq’s listing
rules.

 

(t)            “Code”
shall mean the Internal Revenue Code of 1986, as amended.

 

(u)            “Collateral”
shall mean any and all assets subject or purported to be subject to a Lien pursuant to any Security Document, including all ABL Priority
Collateral and Term Loan Priority Collateral.

 

(v)            “Collateral
Agent” shall mean FILO C Collateral Agent and JSC Collateral Agent, collectively.

 

(w)           “Collateral
Agreement” shall mean the Guarantee and Collateral Agreement dated as of the Closing Date, among the Issuer and each other
Note Party from time to time party thereto and the Collateral Agent.

 

(x)            “Control”
shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person,
whether through the ownership of voting securities, by contract or otherwise, and “Controlling” and “Controlled”
shall have meanings correlative thereto.

 

(y)           “Control
Agreement” shall mean an agreement that grants the Collateral Agent “control” within the meaning of Section 9-104
of the UCC or Section 9-106 of the UCC (as applicable) in effect in the applicable jurisdiction of the applicable Deposit Account,
commodity account or securities account, in form and substance reasonably satisfactory to the Collateral Agent.

 

(z)            “Deposit
Account” shall have the meaning assigned thereto in Article 9 of the UCC.

 

(aa)          “DGCL”
shall mean the General Corporate Law of the State of Delaware.

 

(bb)         “Enforcement
Action” shall mean any action to enforce any Obligations or Note Documents or to exercise any rights or remedies relating to
any Collateral (whether by judicial action, self-help, notification of Account Debtors, exercise of setoff or recoupment, exercise of
any right to vote or act in a Note Party’s Insolvency Proceeding, or otherwise), in each case solely to the extent permitted by
the Note Documents.

 

    35 

     

    

 

(cc)          “Event
of Default” shall have the meaning assigned to such term in the applicable Note.

 

(dd)         “Execution
Date” shall mean September 9, 2022.

 

(ee)          “FILO
C Note Holders” shall mean each Person holding a FILO C Note.

 

(ff)           “FILO
C Notes Obligations” shall mean all advances to, and debts (including principal, interest, fees, costs, and expenses), liabilities,
obligations, covenants and indemnities of, any Note Party arising under any Note Document with respect to the FILO C Notes or otherwise
payable to any FILO C Note Holder in respect of the FILO C Notes, whether direct or indirect (including those acquired by assumption),
absolute or contingent, due or to become due, now existing or hereafter arising and including interest, fees, costs and expenses that
accrue after the commencement by or against any Note Party of any Insolvency Proceeding naming such Person as the debtor in such Insolvency
Proceeding, regardless of whether such interest and fees are allowed claims in such Insolvency Proceeding.

 

(gg)     “FILO
C Secured Parties” shall mean the FILO C Collateral Agent and the FILO C Note Holders.

 

(hh)     “Financial
Officer” of any Person shall mean the Chief Financial Officer, principal accounting officer, Treasurer, Assistant Treasurer
or Controller of such Person.

 

(ii)            “GAAP”
shall mean generally accepted accounting principles in the United States.

 

(jj)       “Holders”
shall mean, collectively, the FILO C Note Holders, the JSC Note Holders and the Management JSC Note Holders.

 

(kk)     “Holdings”
shall mean a collective reference to Issuer and Intermediate Holdings, or, if Intermediate Holdings ceases to exist, shall mean Issuer.

 

(ll)       “Indebtedness”
of any Person shall mean, without duplication, (a) all obligations of such Person for borrowed money, (b) all obligations of
such Person evidenced by bonds, debentures, notes or similar instruments to the extent the same would appear as a liability on a balance
sheet prepared in accordance with GAAP, (c) all obligations of such Person under conditional sale or other title retention agreements
relating to property or assets purchased by such Person, (d) all obligations of such Person issued or assumed as the deferred purchase
price of property or services (other than current intercompany liabilities (but not any refinancings, extensions, renewals or replacements
thereof) incurred in the ordinary course of business and maturing within three hundred sixty-five (365) days after the incurrence
thereof), to the extent that the same would be required to be shown as a long term liability on a balance sheet prepared in accordance
with GAAP, (e) all guarantees by such Person of Indebtedness of others, (f) all capital lease obligations of such Person, (g) all
payments that such Person would have to make in the event of an early termination, on the date Indebtedness of such Person is being determined,
in respect of outstanding swap agreements net of payments such Person would receive in the event of early termination on such date of
determination, (h) the principal component of all obligations, contingent or otherwise, of such Person as an account party in respect
of letters of credit and (i) the principal component of all obligations of such Person in respect of bankers’ acceptances.
The Indebtedness of any Person shall include the Indebtedness of any partnership in which such Person is a general partner, other than
to the extent that the instrument or agreement evidencing such Indebtedness expressly limits the liability of such Person in respect
thereof. The Indebtedness of the Issuer and the Subsidiaries shall exclude (i) accrued expenses and accounts and trade payables,
(ii) liabilities under vendor agreements to the extent such indebtedness may be satisfied through non-cash means such as purchase
volume earnings credits and (iii) reserves for deferred income taxes.

 

    36 

     

    

 

(mm)   “Insolvency
Proceeding” shall mean any case or proceeding commenced by or against a Person under any state, federal, provincial, territorial
or foreign law for, or any agreement of such Person to, (a) the entry of an order for relief under the Bankruptcy Code, or any other
insolvency, bankruptcy, debtor relief or debt adjustment law; (b) the appointment of a receiver, interim receiver, monitor, trustee,
liquidator, administrator, conservator, custodian or other similar Person for such Person or any part of its Property, including, in
the case of any Holder, the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in such capacity;
or (c) an assignment for the benefit of creditors.

 

(nn)     “Intercreditor
Agreement” and “Intercreditor Agreements” shall mean the ABL Intercreditor Agreement, the Term Loan –
FILO C Intercreditor Agreement and/or the Term Loan – JSC Notes Intercreditor Agreement, as the context requires.

 

(oo)         “Intermediate
Holdings” shall mean TMI Holdings, Inc., a Delaware corporation.

 

(pp)     “Issuer
Material Adverse Effect” shall mean any change, event, occurrence or circumstance that, individually or in the aggregate, results
in, or could reasonably be expected to (a) result in a material adverse effect on the business, results of operations, condition
(financial or otherwise), properties, assets or liabilities of Issuer and its Subsidiaries, taken as a whole, or (b) prevent, materially
delay, or materially impair the ability of Issuer to perform its obligations under this Agreement or to consummate the transactions contemplated
hereby; provided, that for the purposes of clause (a), none of the following, either alone or in combination, shall be deemed
to constitute, or be taken into account in determining whether there has been, such a material adverse effect: any event (i) resulting
from general economic, political, financial, banking, credit or securities market conditions, including any disruption thereof and any
interest or exchange rate fluctuations, (ii) affecting companies in the industries, markets or geographical areas in which Issuer
and its Subsidiaries conducts business generally, (iii) resulting from natural disasters, acts of terrorism or war, or epidemics
or pandemics, (iv) resulting from any actions required under this Agreement or (v) as provided in Schedule 2.1(i); provided,
that the exclusions provided in clauses (i)-(iii) shall not apply to the extent Issuer and its Subsidiaries, taken as a whole,
is disproportionately adversely affected by any event relative to other participants in the industries in which Issuer and its Subsidiaries
generally operates.

 

(qq)     “Issuer
Option Awards” shall mean the awards of options to purchase shares of Common Stock granted pursuant to the Issuer Stock Plans.

 

    37 

     

    

 

(rr)       “Issuer
Performance-Based RSU Award” shall mean the awards of restricted stock units subject to performance-based vesting granted pursuant
to the Issuer Stock Plans representing the right to receive shares of Common Stock for which the performance period has not been completed.

 

(ss)     “Issuer
Stock Plans” shall mean the Tuesday Morning Corporation 2008 Long-Term Equity Incentive Plan, the Tuesday Morning Corporation
2014 Long-Term Incentive Plan, the Restricted Stock Units Award Agreements (Time Based) and Restricted Stock Unit Award Agreements (Performance
Based) granted to each of Fred Hand, Marc Katz and Paul Metcalf as inducement awards.

 

(tt)       “Issuer
Subsidiary” shall mean any Subsidiary of Issuer.

 

(uu)     “Issuer
Time-Based RSU Award” shall mean the awards of restricted stock units subject to time-based vesting granted pursuant to the
Issuer Stock Plans representing the right to receive shares of Common Stock that has not been settled.

 

(vv)     “Issuer
Warrant” shall mean that certain warrant to purchase shares of Common Stock, issued on February 9, 2021 and expiring on
December 31, 2025.

 

(ww)        “JSC
Note Holders” shall mean each Person holding a JSC Note.

 

(xx)          “JSC
Notes Obligations” shall mean all advances to, and debts (including principal, interest, fees, costs, and expenses), liabilities,
obligations, covenants and indemnities of, any Note Party arising under any Note Document with respect to the JSC Notes or otherwise
payable to any JSC Note Holder in respect of the JSC Notes, whether direct or indirect (including those acquired by assumption), absolute
or contingent, due or to become due, now existing or hereafter arising and including interest, fees, costs and expenses that accrue after
the commencement by or against any Note Party of any Insolvency Proceeding naming such Person as the debtor in such Insolvency Proceeding,
regardless of whether such interest and fees are allowed claims in such Insolvency Proceeding.

 

(yy)     “JSC
Secured Parties” shall mean the JSC Collateral Agent, the JSC Note Holders and the Management JSC Note Holders.

 

(zz)      “Knowledge
of Issuer” shall mean the actual knowledge (after reasonable inquiry of the managers of Issuer with direct supervisory responsibility
for the matters in question) of the Issuer’s Chief Executive Officer, Issuer’s Chief Financial Officer and each executive
vice president and senior vice president of Issuer.

 

(aaa)     “Law”
shall mean any federal, state, local, municipal, foreign or other law, statute, constitution, principle of common law, resolution, ordinance,
code, order, edict, decree, rule, regulation, ruling or requirement issued, enacted, adopted, promulgated, implemented or otherwise put
into effect by or under the authority of any Governmental Entity, including any international, foreign, national, state, provincial,
regional, or local authority, relating to pollution, the protection of occupational health and workplace safety, the environment, or
natural resources, or to the use, handling, storage, manufacturing, transportation, treatment, discharge, disposal or release of hazardous
or toxic substances or wastes, pollutants or contaminants applicable to such entity.

 

    38 

     

    

 

(bbb)   “Lead
Investor” shall mean TASCR VENTURES, LLC.

 

(ccc)       “Lien”
shall mean, with respect to any asset, (a) any mortgage, deed of trust, lien, hypothecation, pledge, encumbrance, charge or security
interest in or on such asset and (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.

 

(ddd)       “Management
JSC Note Holders” shall mean each Person holding a Management JSC Note.

 

(eee)     “Management
JSC Notes Obligations” shall mean all advances to, and debts (including principal, interest, fees, costs, and expenses),
liabilities, obligations, covenants and indemnities of, any Note Party arising under any Note Document with respect to the
Management JSC Notes or otherwise payable to any Management JSC Note Holder in respect of the Management JSC Notes, whether direct
or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter
arising and including interest, fees, costs and expenses that accrue after the commencement by or against any Note Party of
any Insolvency Proceeding naming such Person as the debtor in such Insolvency Proceeding, regardless of whether such interest and
fees are allowed claims in such Insolvency Proceeding.

 

(fff)     “Mortgage”
shall mean any mortgage, deed of trust or other agreement in form and substance reasonably satisfactory to the Collateral Agent, which
conveys or evidences a Lien in favor of the Collateral Agent, for the benefit of the Secured Parties, on the applicable real property,
including any amendment, restatement, modification or supplement thereto.

 

(ggg)   “Nasdaq
Listing Submission” shall mean the submission by Issuer of a Listing of Additional Shares Notification Form approval of
the shares of Common Stock issuable upon conversion of the Notes for listing on Nasdaq.

 

(hhh)  “Note
Documents” shall mean, collectively, this Agreement, any Notes issued pursuant to this Agreement, the Security Documents, each
compliance certificate, each Intercreditor Agreement, any subordination agreement, and all other agreements, instruments, documents and
certificates executed and delivered to, or in favor of, the Collateral Agent or any Holder and including all other amendments, pledges,
powers of attorney, consents, notices and all other written matter whether heretofore, now or hereafter executed by or on behalf of any
Note Party, or any employee of any Note Party, and delivered to the Collateral Agent or any Holder in connection with this Agreement
or the transactions contemplated hereby. Any reference in this Agreement or any other Note Document to a Note Document shall include
all appendices, exhibits or schedules thereto, and all amendments, restatements, supplements or other modifications thereto, and shall
refer to this Agreement or such Note Document as the same may be in effect at any and all times such reference becomes operative.

 

(iii)            “Note
Parties” shall mean the Issuer and the Subsidiary Guarantors.

 

    39 

     

    

 

(jjj)       “Obligations”
shall mean, collectively, the FILO C Notes Obligations, the JSC Notes Obligations and the Management JSC Obligations.

 

(kkk)     “Permits”
shall mean all certificates, authorizations, franchises, licenses, consents and permits issued by appropriate Governmental Entities.

 

(lll)       “Permitted
Refinancing Indebtedness shall mean any Indebtedness issued in exchange for, or the net proceeds of which are used to extend, refinance,
renew, replace, defease or refund (collectively, to “Refinance”), the Indebtedness being Refinanced (or previous refinancings
thereof constituting Permitted Refinancing Indebtedness); provided that (a) the principal amount (or accreted value, if applicable)
of such Permitted Refinancing Indebtedness does not exceed the principal amount (or accreted value, if applicable) of the Indebtedness
so Refinanced (plus unpaid accrued interest and premium thereon, any committed or undrawn amounts and underwriting discounts, fees, commissions
and expenses, associated with such Permitted Refinancing Indebtedness), except as otherwise permitted hereunder, (b) such Permitted
Refinancing Indebtedness has a final maturity date equal to or later than the final maturity date of, and has a Weighted Average Life
to Maturity equal to or greater than the Weighted Average Life to Maturity of the Indebtedness being Refinanced, (c) if the Indebtedness
being Refinanced is (i) by its terms subordinated in right of payment to the Obligations under this Agreement or (ii) unsecured
Indebtedness, such Permitted Refinancing Indebtedness shall (x)(i) be subordinated in right of payment to such Obligations on terms
not materially less favorable to the Lenders as those contained in the documentation governing the Indebtedness being Refinanced, taken
as a whole, or (ii) remain unsecured, respectively, and (y) have a final maturity date equal to or later than one hundred eighty
(180) days after the Maturity Date, (d) no Permitted Refinancing Indebtedness shall have obligors or contingent obligors that
were not obligors or contingent obligors (or that would not have been required to become obligors or contingent obligors) in respect
of the Indebtedness being Refinanced, and (e) if the Indebtedness being Refinanced is (or would have been required to be) secured
with any Collateral, the Liens securing such Permitted Refinancing Indebtedness shall have the same priority relative to the Liens on
the Collateral securing the FILO C Notes Obligations, the JSC Notes Obligations and the Management JSC Notes Obligations, as the case
may be, pursuant to an intercreditor arrangement reasonably satisfactory to the Collateral Agent (acting at the direction of the Required
Holders).

 

(mmm)     “Pier
1” shall mean Pier 1 Imports Online, Inc. a Delaware corporation.

 

(nnn)      “Representatives”
shall mean, with respect to any Person, such Person’s directors, officers, employees, agents, consultants, representatives, advisors,
financing sources (including limited partners or investors (existing and prospective) in funds, vehicles or managed accounts in each
case which are managed, administered, or professionally advised for investment purposes by a Person or its Affiliates), and Representatives
of any of the foregoing.

 

(ooo)      “Required
Holders” shall mean, at any time, (a) so long as any FILO C Notes Obligations are outstanding, the Holders holding
more than 50% of the aggregate principal amount of the FILO C Notes outstanding at such time and (b) at any time no FILO C
Notes Obligations are outstanding, the Holders holding more than 50% of the outstanding principal amount of the then outstanding
Obligations; provided that, in each of the foregoing clauses (a) and (b), “Required Holders” must include
Lead Investor so long as Lead Investor holds any Notes, REV so long as REV holds any Notes and Ayon so long as Ayon holds any
Notes.

 

    40 

     

    

 

(ppp)       “Responsible
Officer” of any Person shall mean any executive officer or Financial Officer of such Person and any other officer or similar
official thereof responsible for the administration of the obligations of such Person in respect of this Agreement.

 

(qqq)      “REV”
shall mean Retail Ecommerce Ventures LLC and its Affiliates.

 

(rrr)     “Rule 144”
shall mean Rule 144 promulgated by the SEC pursuant to the Securities Act, as such rule may be amended or interpreted from
time to time, or any similar rule or regulation hereafter adopted by the SEC having substantially the same purpose and effect as
such rule.

 

(sss)    “Secured
Parties” shall mean, collectively, the FILO C Secured Parties and the JSC Secured Parties.

 

(ttt)      “Securities”
shall mean the Notes or the Common Stock issued upon conversion of the Notes.

 

(uuu)   “Security
Documents” shall mean the Mortgages (if any), the Collateral Agreement and any other agreements, instruments and documents
executed in connection with this Agreement that are intended to create, perfect or evidence Liens to secure the Obligations, including,
without limitation, all other security agreements, pledge agreements, mortgages, deeds of trust, and Control Agreements now or hereafter
executed by any Note Party and delivered to the Collateral Agent.

 

(vvv)   “Subsidiary”
shall mean, with respect to any Person, any corporation, partnership, limited liability company or other entity (x) of which such
Person or a subsidiary of such Person is a general partner or managing member or (y) of which a majority of the voting securities
or other voting interests, or a majority of the securities or other interests of which having by their terms ordinary voting power to
elect a majority of the board of directors or Persons performing similar functions with respect to such entity, is directly or indirectly
owned by such Person and/or one or more subsidiaries thereof; and the term

 

(www) “Subsidiary
Guarantor” shall mean each Note Party other than the Issuer.

 

(xxx)         “Tax
or Taxes” shall mean any federal, state, provincial, local, foreign or other tax (including any income tax, franchise
tax, capital gains tax, gross receipts tax, value-added tax, surtax, estimated tax, excise tax, ad valorem tax, transfer tax, stamp tax,
sales tax, use tax, property tax, withholding tax or payroll tax), and any related fine, penalty or interest, imposed, assessed or collected
by or under the authority of any governmental body, whether disputed or not.

 

(yyy)   “Term
Loan Agent” shall mean Alter Domus (US) LLC, in its capacity as “Administrative Agent” under (and as defined in)
the Term Loan Agreement and the other Term Loan Documents, together with its successors and assigns in such capacity.

 

    41 

     

    

 

(zzz)     “Term
Loan Agreement” shall mean that certain Credit Agreement, dated as of December 31, 2020, by and among the Issuer, the
affiliates of the Issuer from time to time party thereto, the lenders from time to time party thereto and the Term Loan Agent, as the
same may be amended, restated, amended and restated, supplemented or otherwise modified from time to time.

 

(aaaa)  “Term
Loan Documents” shall mean the “Loan Documents” as defined in the Term Loan Agreement.

 

(bbbb)“Term
Loan – FILO C Intercreditor Agreement” shall mean that certain Intercreditor and Subordination Agreement, dated as of
the Closing Date, by and among the Term Loan Agent, the FILO C Collateral Agent and the Note Parties with respect to the FILO C Notes.

 

(cccc) “Term
Loan – JSC Notes Intercreditor Agreement” shall mean that certain Intercreditor and Subordination Agreement, dated as
of the Closing Date, by and among the Term Loan Agent, the JSC Collateral Agent and the Note Parties with respect to the JSC Notes and
the Management JSC Notes.

 

(dddd) “Term
Loan Lenders” shall mean the “Lenders” under and as defined in the Term Loan Agreement.

 

(eeee)      “Term
Loan Obligations” shall mean the “Obligations” under and as defined in the Term Loan Credit Agreement on the Closing
Date, and shall include all obligations of the Note Parties, which are incurred or owing under the Term Loan Documents, including all
obligations in respect of the payment of principal, interest, fees, prepayment premiums (including the Prepayment Premium as defined
in the Term Loan Documents) and indemnification obligations, and obligations in respect of any refinancing of such Indebtedness.

 

(ffff)        “Term
Loan Priority Collateral” shall have the meaning assigned such term in the Term Loan – FILO C Intercreditor Agreement.

 

(gggg)    “Transaction
Documents” shall mean the Note Documents, the Registration Rights Agreements, the Nomination Agreement, the Voting and Lock-Up
Agreements, the License Agreement, and each of the other agreements entered into by the parties hereto in connection with the transactions
contemplated by this Agreement.

 

(hhhh)    “Treasury
Regulation” shall mean the regulations promulgated under the Code, by the United States Department of the Treasury, as such
regulations may be amended from time to time. All references herein to specific sections of the regulations shall be deemed also to refer
to any corresponding provisions of succeeding regulations, and any reference to temporary regulations shall be deemed also to refer to
any corresponding provisions of final regulations.

 

(iiii)     “Uniform
Commercial Code” or “UCC” shall mean the Uniform Commercial Code as in effect from time to time in the State
of New York; provided, however, that if a term is defined in Article 9 of the Uniform Commercial Code differently
than in another Article thereof, the term shall have the meaning set forth in Article 9; provided, further, that,
if by reason of mandatory provisions of law, priority perfection, or the effect of perfection or non-perfection, of a security interest
in any Collateral or the availability of any remedy hereunder is governed by the Uniform Commercial Code as in effect in a jurisdiction
other than the state of New York, “Uniform Commercial Code” or “UCC” means the Uniform Commercial Code as in
effect in such other jurisdiction for purposes of the provisions hereof relating to such priority, perfection or effect of perfection
or non-perfection or availability of such remedy, as the case may be.

 

    42 

     

    

 

(jjjj)          “United
States” and “U.S.” shall mean the United States of America.

 

Section 6.11           Captions.
The article, section, paragraph and clause captions herein are for convenience of reference only, do not constitute part of this
Agreement and will not be deemed to limit or otherwise affect any of the provisions hereof.

 

Section 6.12           Severability.
If any provision of this Agreement or the application thereof to any Person (including the officers and directors of the parties hereto)
or circumstance is determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions hereof,
or the application of such provision to Persons or circumstances other than those as to which it has been held invalid or unenforceable,
will remain in full force and effect and shall in no way be affected, impaired or invalidated thereby, so long as the economic or legal
substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party. Upon such determination,
the parties shall negotiate in good faith in an effort to agree upon a suitable and equitable substitute provision to effect the original
intent of the parties.

 

Section 6.13           No
Third Party Beneficiaries. Nothing contained in this Agreement, expressed or implied, is intended to confer upon any Person other
than the parties hereto (and their permitted assigns and Indemnified Parties), any benefit right or remedies.

 

Section 6.14           Public
Announcements. Any initial press release with respect to this Agreement and the transactions contemplated hereby (and any
related Report on Form 8-K) shall be mutually agreed upon by Issuer and the Purchasers. Thereafter, Issuer and the
Purchasers shall consult with each other and provide each other with the opportunity to review and comment upon any press release or
other public statements with respect to the transactions contemplated hereby or this Agreement and Issuer and the Purchasers shall
not, and shall cause their respective Affiliates not to, issue any such other press release or other public statements prior to such
consultation, except as may be required by applicable Law or any listing agreement related to the trading of the Common Stock on
Nasdaq, in which case the party proposing to issue such press release or make such public announcement shall use commercially
reasonable efforts to consult in good faith with the other party and provide the other party with an opportunity to review and
comment on the content of the proposed disclosure, which comments such party shall consider in good faith, acting reasonably, before
issuing any such press release or making any such public announcement; provided that no Person party hereto will issue any
press release or other public statement that attributes comments to any other Person or that indicates the approval of any other
Person of the contents of any such press release or statement (or portion thereof) without the prior written approval of such
Person. Notwithstanding anything herein to the contrary and for greater clarity, (a) no party shall be required to obtain
consent pursuant to this ‎Section 6.14 to the extent any proposed press release or
other public statement is substantially equivalent to the information that has previously been made public without breach of the
obligation under this ‎Section 6.14 and (b) nothing in this Section 6.14
shall prevent or restrict any Purchaser or its respective Affiliates from furnishing customary information concerning the
transactions contemplated hereby and publicly available information to their current or prospective limited partners or investors in
accordance with all applicable securities laws.

 

    43 

     

    

 

Section 6.15           Specific
Performance. The parties agree that irreparable damage may occur in the event that any of the provisions of this Agreement and the
transactions contemplated hereby were not performed in accordance with their specific terms or were otherwise breached. It is accordingly
agreed that, without the necessity of posting bond or other undertaking, the parties shall be entitled to seek specific performance of
the terms hereof, this being in addition to any other remedies to which they are entitled at law or equity, and in the event that any
action or suit is brought in equity to enforce the provisions of this Agreement, no party will allege, and each party hereby waives the
defense or counterclaim, that there is an adequate remedy at law. This Section 6.15 is subject to the provisions of Section 6.3(b)(ii) in
all respects.

 

Section 6.16           Termination.
Subject to ‎Section 6.1, this Agreement will
survive the Closing so long as any Notes are outstanding and each Note Party covenants and agrees with the Collateral Agent and each
other Secured Party that until no Notes remain outstanding (whether as a result of conversion or repayment in full of the principal thereof),
the Note Parties (provided that, in respect of Holdings, solely to the extent applicable to it) will, and will cause each of their Subsidiaries
to comply with each of the covenants set forth in this Agreement. Prior to the Closing, this Agreement may only be terminated:

 

(a)            by
mutual written agreement of Issuer and each of the Purchasers;

 

(b)           by
Issuer or any of the Purchasers, upon written notice to the other parties in the event that the Closing shall not have occurred on or
before October 15, 2022; provided, however, that the right to terminate this Agreement pursuant to this ‎Section 6.16(b) shall
not be available to any party whose failure to fulfill any of its obligations under this Agreement shall have been the cause of, or shall
have resulted in, the failure of the Closing to occur on or prior to such date;

 

(c)            by
Issuer or any of the Purchasers if a statute, rule, order, decree or regulation shall have been enacted or promulgated, or if any action
shall have been taken by any Governmental Entity of competent jurisdiction that permanently restrains, permanently precludes, permanently
enjoins or otherwise permanently prohibits the consummation of the transactions contemplated by this Agreement or makes the transactions
contemplated by this Agreement illegal;

 

(d)            by
written notice given by Issuer to a Purchaser if there have been one or more inaccuracies in or breaches of one or more representations,
warranties, covenants or agreements made by such Purchaser in this Agreement such that the conditions in ‎Section 1.3(c)(i) or
‎Section 1.3(c)(ii) would not be satisfied and which have not been cured by such Purchaser thirty (30) days after
receipt by such Purchaser of written notice from Issuer requesting such inaccuracies or breaches to be cured; or

 

(e)            by
written notice given by any of the Purchasers to Issuer, if there have been one or more inaccuracies in or breaches of one or more representations,
warranties, covenants or agreements made by Issuer in this Agreement such that the conditions in ‎Section 1.3(b)(i) or
‎1.3(b)(ii) would not be satisfied and which have not been cured by Issuer within thirty (30) days after receipt by
Issuer of written notice from the applicable Purchaser requesting such inaccuracies or breaches to be cured.

 

    44 

     

    

 

Section 6.17       Effects
of Termination. In the event of any termination of this Agreement in accordance with ‎Section 6.16,
no party (or any of its Affiliates) shall have any liability or obligation to any other party (or any of its Affiliates) under
or in respect of this Agreement, except to the extent of (a) any liability arising from any breach by such party of its obligations
of this Agreement arising prior to such termination and (b) any fraud or intentional or willful material breach of this Agreement.
In the event of any such termination, this Agreement shall become void and have no effect, and the transactions contemplated hereby shall
be abandoned without further action by the parties hereto, in each case, except (i) as set forth in the preceding sentence and (ii) that
the provisions of Section 3.5, Sections ‎6.2
through ‎6.15, this Section 6.17 and
Section 6.18 shall survive the termination of this Agreement.

 

Section 6.18       Non-Recourse.
This Agreement may only be enforced against, and any claims or causes of action that may be based upon, arise out of or relate to this
Agreement, or the negotiation, execution or performance of this Agreement may only be made against the entities that are expressly identified
as parties hereto, including entities that become parties hereto after the date hereof or that agree in writing for the benefit of Issuer
to be bound by the terms of this Agreement applicable to the Purchasers, and no former, current or future equityholders, controlling
Persons, directors, officers, employees, agents or Affiliates of any party hereto or any former, current or future equityholder, controlling
Person, director, officer, employee, general or limited partner, member, manager, agent or Affiliate of any of the foregoing (each, a
 “Non-Recourse Party”) shall have any liability for any covenants, obligations, agreements or liabilities of the parties
to this Agreement or for any claim (whether in tort, contract or otherwise) based on, in respect of, or by reason of, the transactions
contemplated hereby or in respect of any representations made or alleged to be made in connection herewith. Without limiting the rights
of any party against the other parties hereto, in no event shall any party or any of its Affiliates seek to enforce this Agreement against,
make any claims for breach of this Agreement against, or seek to recover monetary damages from, any Non-Recourse Party.

 

Section 6.19       Reliance.
Notwithstanding anything to the contrary in this Agreement, each party hereto has relied upon and will be deemed to have relied upon
for all purposes of this Agreement each of the other parties’ express representations, warranties, covenants, agreements and indemnification
obligations set forth in this Agreement or any other Transaction Document.

 

Section 6.20       Recapitalization,
Exchanges, Etc. The provisions of this Agreement shall apply to the full extent set forth herein with respect to any and all equity
interests of Issuer or any successor or assign of Issuer (whether by merger, consolidation, sale of assets or otherwise) which may be
issued in respect of, in exchange for or in substitution of, the Securities, and shall be appropriately adjusted for combinations, stock
splits, recapitalizations and the like occurring after the Execution Date and prior to the Closing.

 

Section 6.21       Payment
Set Aside. To the extent that any Note Party makes a payment or payments to the Purchasers hereunder or pursuant
to any of the other Transaction Documents or the Purchasers enforce or exercise their rights hereunder or thereunder, and such payment
or payments or the proceeds of such enforcement or exercise or any part thereof are subsequently invalidated, declared to be fraudulent
or preferential, set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to any Note Party,
a trustee, receiver or any other Person under any law (including, without limitation, any bankruptcy law, foreign, state or federal law,
common law or equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally intended
to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such enforcement or setoff
had not occurred.

 

    45 

     

    

 

Section 6.22       Intercreditor
Agreements. This Agreement and the other Note Documents are subject to the terms and conditions set forth in each
Intercreditor Agreement in all respects and, in the event of any conflict between the terms of any Intercreditor Agreement and this Agreement,
the terms of the applicable Intercreditor Agreement shall govern. Notwithstanding anything herein to the contrary, the lien and security
interest granted to the Collateral Agent, the ABL Administrative Agent or the Term Loan Agent, as applicable, pursuant to any Note Document,
ABL Loan Document or Term Loan Document, and the exercise of any right or remedy in respect of the Collateral by the Administrative Agent,
the ABL Administrative Agent or the Term Loan Agent, as applicable under any Note Document, under any ABL Loan Document or under any
Term Loan Document and any other agreement entered into in connection with any of the foregoing are subject to the provisions of each
Intercreditor Agreement and in the event of any conflict between the terms of any Intercreditor Agreement, any other Note Document, any
ABL Loan Document, any Term Loan Document and any other agreement entered into in connection with any of the foregoing, the terms of
the applicable Intercreditor Agreement shall govern and control with respect to the exercise of any such right or remedy or the Note
Parties’ covenants and obligations. In addition, all payments required to be made by the Note Parties hereunder (whether in respect
of principal, interest, fees or otherwise) are subject to the provisions of each Intercreditor Agreement.

 

Section 6.23       Rules of
Construction. Any definition or provision in this Agreement or any other Note Document that is incorporated by reference to
another document or agreement (including, for the avoidance of doubt, the ABL Credit Agreement and the Term Loan Agreement)
shall be incorporated as such definition or provision exists in such document or agreement on the Closing Date without giving effect
to any further amendments and/or supplements thereto unless otherwise consented by the Required Holders.

 

[Signature Pages Follow]

 

    46 

     

    

 

 

 

 

IN
WITNESS WHEREOF, this Agreement has been duly executed and delivered by the duly authorized officers of the parties hereto
as of the date first herein above written.

 

	 	TUESDAY MORNING CORPORATION
	 	 
	 	By:	/s/ Fred Hand
	 	Name:	Fred Hand
	 	Title:	Chief Executive Officer
	 	 
	 	TUESDAY MORNING, INC.
	 	 
	 	By:	/s/ Fred Hand
	 	Name:	Fred Hand
	 	Title:	Chief Executive Officer

 

[Signature
Page to Note Purchase Agreement]

 

     

     

    

 

IN
WITNESS WHEREOF, this Agreement has been duly executed and delivered by the duly authorized officers of the parties hereto
as of the date first herein above written.

 

	 	TASCR VENTURES, LLC
	 	 
	 	By:	/s/ Taino A. Lopez
	 	Name:	Taino A. Lopez   
	 	Title:	Chief Executive Officer
	 	 
	 	TASCR VENTURES CA, LLC, as Collateral Agent
	 	 
	 	By:	/s/ Taino A. Lopez
	 	Name:	Taino A. Lopez   
	 	Title:	Chief Executive Officer

 

[Signature Page to
Note Purchase Agreement]

 

     

     

    

 

IN WITNESS WHEREOF, the undersigned has duly executed and delivered
this Agreement as of the date first herein above written.

 

	 	/s/ Fred Hand
	 	Fred Hand
	 	 
	 	/s/ Paul Metcalf
	 	Paul Metcalf
	 	 
	 	/s/ Marc Katz
	 	Marc Katz
	 	 
	 	/s/ Brigham Young
	 	Brigham Young
	 	 
	 	/s/ Philip Hixon
	 	Philip Hixon
	 	 
	 	/s/ William Baumann
	 	William Baumann
	 	 
	 	/s/ Mindi Coday
	 	Mindi Coday
	 	 
	 	/s/ Shelly Trosclair
	 	Shelly Trosclair
	 	 
	 	/s/ Louis Ansara
	 	Louis Ansara
	 	 
	 	/s/ Martin Lewis
	 	Martin Lewis
	 	 
	 	/s/ Jennyfer Barber Gray
	 	Jennyfer Barber Gray

   

     

     

    

 

The following party is joining this Agreement
solely for the purpose of representing and causing the accuracy of Section 2.2(d) with respect to Lead Investor up to an amount
equal to $10,000,000:

 

	 	RETAIL ECOMMERCE VENTURES, LLC, solely for purposes of Section 2.2(d) with respect to Lead Investor
	 	 
	 	By:	/s/ Taino A.
    Lopez
	 	Name:	Taino A.
    Lopez
	 	Title:	Chief Executive Officer

 

[Signature Page to
Note Purchase Agreement]

 

     

     

    

 

The following party is joining this Agreement solely for the purpose
of representing and causing the accuracy of Section 2.2(d) with respect to Lead Investor up to an amount equal to $22,000,000:

  

	 	AYON CAPITAL, L.L.C., solely for purposes of Section 2.2(d) with respect to Lead Investor
	 	 
	 	By:	/s/ Siddhartha D.
    Pagidipati        
	 	Name:	Siddhartha D. Pagidipati
	 	Title:	Manager

 

[Signature Page to
Note Purchase Agreement]

 

     

     

    

 

SCHEDULE
I

PURCHASER ALLOCATIONS

 

	Purchaser (1)	Address (2)	FILO C Note

 Principal 

Amount (3)	JSC Note

 Principal

 Amount (4)	Management

 JSC Notes

 Principal

 Amount (5)
	TASCR VENTURES, LLC	
    TASCR VENTURES, LLC

    1010 N. Florida Avenue

    Tampa, FL 33602

    Attn: Alex Chang

    TEL: 407-443-3444

    Email: alex@ayon.com

     

    Retail Ecommerce Ventures, LLC

    1680 Michigan Avenue, Suite 700

    Miami Beach, FL 33139

    Attn: Maya Burkenroad, Chief Operating Officer

    Email: maya.burkenroad@retailcommerceventures.com; TASCR@retailcommerceventures.com

     

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

     

    Barnett Kirkwood Koche Long & Foster

    601 Bayshore Blvd., Suite 700

    Tampa, FL 33606

    Attn: David L. Koche

    TEL: 813-253-2020

    Email: dkoche@barnettbolt.com

     

    Taft Stettinius & Hollister LLP

    200 Public Square, Suite 3500

    Cleveland, OH 44114

    Attn: Mark F. Fazio

    TEL: 216-706-3865

    Email: mfazio@taftlaw.com
	$7,500,000	$24,500,000	--

 

     

     

    

 

	Purchaser (1)	Address (2)	FILO C Note

 Principal 

Amount (3)	JSC Note

 Principal

 Amount (4)	Management

 JSC Notes

 Principal

 Amount (5)
	Fred Hand	Tuesday Morning, Inc.

6250 LBJ Freeway

Dallas, TX 75240

Email: legal@tuesdaymorning.com	--	--	$1,705,000
	Paul Metcalf	Tuesday Morning, Inc.

6250 LBJ Freeway

Dallas, TX 75240

Email: legal@tuesdaymorning.com	--	--	$600,000
	Marc Katz	Tuesday Morning, Inc.

6250 LBJ Freeway

Dallas, TX 75240

Email: legal@tuesdaymorning.com	--	--	$250,000
	Brigham Young	Tuesday Morning, Inc.

6250 LBJ Freeway

Dallas, TX 75240

Email: legal@tuesdaymorning.com	--	--	$250,000
	Philip Hixon	Tuesday Morning, Inc.

6250 LBJ Freeway

Dallas, TX 75240

Email: legal@tuesdaymorning.com	--	--	$60,000
	William Baumann	Tuesday Morning, Inc.

6250 LBJ Freeway

Dallas, TX 75240

Email: legal@tuesdaymorning.com	--	--	$50,000
	Mindi Coday	Tuesday Morning, Inc.

6250 LBJ Freeway

Dallas, TX 75240

Email: legal@tuesdaymorning.com	--	--	$30,000
	Shelly Trosclair	Tuesday Morning, Inc.

6250 LBJ Freeway

Dallas, TX 75240

Email: legal@tuesdaymorning.com	--	--	$50,000
	Louis Ansara	Tuesday Morning, Inc.

6250 LBJ Freeway

Dallas, TX 75240

Email: legal@tuesdaymorning.com	--	--	$15,000
	Martin Lewis	Tuesday Morning, Inc.

6250 LBJ Freeway

Dallas, TX 75240

Email: legal@tuesdaymorning.com	--	--	$20,000
	Jennyfer Barber Gray	Tuesday Morning, Inc.

6250 LBJ Freeway

Dallas, TX 75240

Email: legal@tuesdaymorning.com	--	--	$20,000

 

     

     

    

 

Exhibit A

 

Form of FILO C Note

 

     

     

    

 

Exhibit B

 

Form of Registration Rights Agreement

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