Document:

Exhibit 10.1

 

LIMITED LIABILITY COMPANY AGREEMENT

among

 

TCO, LLC

 

and

 

THE MEMBERS NAMED HEREIN

dated as of

 

February 5, 2021

 

     

     

    

 

TABLE OF CONTENTS

 

	ARTICLE I DEFINITIONS 	3
	 	
	ARTICLE II ORGANIZATION 	12
	 	 
	ARTICLE III CAPITAL CONTRIBUTIONS; CAPITAL ACCOUNTS	13
	 	 
	ARTICLE IV MEMBERS	15
	 	 
	ARTICLE V ALLOCATIONS	16
	 	 
	ARTICLE VI DISTRIBUTIONS	19
	 	 
	ARTICLE VII MANAGEMENT	20
	 	 
	ARTICLE VIII EXCULPATION AND INDEMNIFICATION	25
	 	 
	ARTICLE IX TRANSFER	29
	 	 
	ARTICLE X COVENANTS AND AGREEMENTS OF THE MEMBERS	32
	 	 
	ARTICLE XI ACCOUNTING; TAX MATTERS	33
	 	 
	ARTICLE XII DISSOLUTION AND LIQUIDATION	36
	 	 
	ARTICLE XIII MISCELLANEOUS	38

 

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LIMITED
LIABILITY COMPANY AGREEMENT

 

This Limited Liability Company Agreement
of TCO, LLC, a Delaware limited liability company (the “Company”), is entered into as of February 5, 2021
by and among the Company, iMedia Brands, Inc., a Minnesota corporation (the “Majority Member”) and LAKR
Ecomm Group LLC, a Delaware limited liability company (the “Minority Member”).

 

RECITALS

 

WHEREAS, the Company
was formed under the laws of the State of Delaware by the filing of a Certificate of Formation with the Secretary of State of
Delaware (the “Secretary of State”) on February 2, 2021 (the “Certificate of Formation”)
for the purposes set forth in Section 2.05 of this Agreement;

 

WHEREAS, pursuant
to a Contribution Agreement, dated as of the date hereof, by and between the Majority Member and the Company (the “Majority
Member Contribution Agreement”), the Majority Member has contributed to the Company certain assets in exchange for Membership
Interests in the Company and, immediately following such contribution owns a 51% Membership Interest in the Company;

 

WHEREAS, pursuant
to a Contribution and Assumption Agreement, dated as of the date hereof, by and between the Minority Member and the Company (the
 “Minority Member Contribution Agreement” and together with the Majority Member Contribution Agreement, the
 “Contribution Agreements”), the Minority Member has contributed to the Company certain assets in exchange for
Membership Interests in the Company and, immediately following such contribution owns a 49% Membership Interest in the Company;
and

 

WHEREAS, the Members
wish to enter into this Agreement setting forth the terms and conditions governing the operation and management of the Company.

 

NOW, THEREFORE, in
consideration of the mutual covenants and agreements hereinafter set forth and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

ARTICLE I

Definitions

 

Section 1.01     Definitions.
Capitalized terms used herein and not otherwise defined shall have the meanings set forth
in this Section 1.01:

 

“Adjusted
Capital Account Deficit” means, with respect to any Member, the deficit balance, if any, in such Member's Capital Account
as of the end of the relevant Fiscal Year, after giving effect to the following adjustments:

 

(a)            crediting
to such Capital Account any amount that such Member is obligated to restore or is deemed to be obligated to restore pursuant to
Treasury Regulations Sections 1.704-1(b)(2)(ii)(c), 1.704-2(g)(1) and 1.704-2(i); and

 

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(b)            debiting
to such Capital Account the items described in Treasury Regulations Section 1.704-1(b)(2)(ii)(d)(4), (5) and (6).

 

“Affiliate”
means, with respect to any Person, any other Person who, directly or indirectly (including through one or more intermediaries),
controls, is controlled by, or is under common control with, such Person. For purposes of this definition, “control,”
when used with respect to any specified Person, shall mean the power, direct or indirect, to direct or cause the direction of
the management and policies of such Person, whether through ownership of voting securities or partnership or other ownership interests,
by contract or otherwise; and the terms “controlling” and “controlled” shall have correlative
meanings; provided, however, that the term “Affiliate” does not, when used with respect to a Member, include
the Company.

 

“Agreement”
means this Limited Liability Company Agreement, as executed and as it may be amended, modified, supplemented or restated from
time to time, as provided herein.

 

“Applicable
Law” means all applicable provisions of (a) constitutions, treaties, statutes, laws (including the common law),
rules, regulations, decrees, ordinances, codes, proclamations, declarations or orders of any Governmental Authority; (b) any
consents or approvals of any Governmental Authority; and (c) any orders, decisions, advisory or interpretative opinions,
injunctions, judgments, awards, decrees of, or agreements with, any Governmental Authority.

 

“Bankruptcy”
means, with respect to a Member, the occurrence of any of the following: (a) the filing of an application by such Member
for, or a consent to, the appointment of a trustee of such Member's assets; (b) the filing by such Member of a voluntary
petition in bankruptcy or the filing of a pleading in any court of record admitting in writing such Member's inability to pay
its debts as they come due; (c) the making by such Member of a general assignment for the benefit of such Member's creditors;
(d) the filing by such Member of an answer admitting the material allegations of, or such Member's consenting to, or defaulting
in answering a bankruptcy petition filed against such Member in any bankruptcy proceeding; or (e) the expiration of sixty
(60) days following the entry of an order, judgment or decree by any court of competent jurisdiction adjudicating such Member
bankrupt or appointing a trustee of such Member's assets.

 

“BBA”
means the Bipartisan Budget Act of 2015.

 

“Board”
has the meaning set forth in Section 7.01.

 

“Book Depreciation”
means, with respect to any Company asset for each Fiscal Year, the Company's depreciation, amortization or other cost recovery
deductions determined for federal income tax purposes, except that if the Book Value of an asset differs from its adjusted tax
basis at the beginning of such Fiscal Year, Book Depreciation shall be an amount which bears the same ratio to such beginning
Book Value as the federal income tax depreciation, amortization, or other cost recovery deduction for such Fiscal Year bears to
such beginning adjusted tax basis; provided, that if the adjusted basis for federal income tax purposes of an asset at
the beginning of such Fiscal Year is zero and the Book Value of the asset is positive, Book Depreciation shall be determined with
reference to such beginning Book Value using any permitted method selected by unanimous consent of the Members in accordance with
Treasury Regulations Section 1.704-1(b)(2)(iv)(g)(3).

 

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“Book Value”
means, with respect to any Company asset, the adjusted basis of such asset for federal income tax purposes, except as follows:

 

(a)       the
initial Book Value of any Company asset contributed by a Member to the Company shall be the gross Fair Market Value of such Company
asset as of the date of such contribution;

 

(b)       immediately
prior to the distribution by the Company of any Company asset to a Member, the Book Value of such asset shall be adjusted to its
gross Fair Market Value as of the date of such distribution;

 

(c)       the
Book Value of all Company assets shall be adjusted to equal their respective gross Fair Market Values, as reasonably determined
(except as otherwise provided in Section 12.03(d)) by unanimous consent of the Members, as of the following times:

 

(i)            the
acquisition of an additional Membership Interest by a new or existing Member in consideration for more than a de minimis
Capital Contribution;

 

(ii)          the
distribution by the Company to a Member of more than a de minimis amount of property (other than cash) as consideration
for all or a part of such Member's Membership Interest;

 

(iii)            the
liquidation of the Company within the meaning of Treasury Regulations Section 1.704-1(b)(2)(ii)(g); and

 

(iv)          in
connection with the grant of an interest in the Company (other than a de minimis interest) as consideration for the provision
of services to or for the benefit of the Company by an existing Member acting in a member capacity, or by a new Member acting
in a partner capacity in anticipation of being a Member.

 

(d)          the
Book Value of each Company asset shall be increased or decreased, as the case may be, to reflect any adjustments to the adjusted
tax basis of such Company asset pursuant to Code Section 734(b) or Code Section 743(b), but only to the extent
that such adjustments are taken into account in determining Capital Account balances pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(m);
provided, that Book Values shall not be adjusted pursuant to this paragraph (d) to the extent that an adjustment pursuant
to paragraph (c) above is made in conjunction with a transaction that would otherwise result in an adjustment pursuant to
this paragraph (d); and

 

(e)          if
the Book Value of a Company asset has been determined pursuant to paragraph (a) or adjusted pursuant to paragraphs (c) or
(d) above, such Book Value shall thereafter be adjusted to reflect the Book Depreciation taken into account with respect
to such Company asset for purposes of computing Net Income and Net Losses.

 

“Budget”
has the meaning set forth in Section 7.10(a).

 

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“Business”
has the meaning set forth in Section 2.05.

 

“Business
Day” means a day other than a Saturday, Sunday or other day on which commercial banks in the City of New York are authorized
or required to close; provided, that for purposes of this definition, the closure of any bank location relating to any “shelter
in place,” non-essential-business or similar direction or recommendation of any Governmental Authority shall not be deemed
as “authorized or required to close” so long as such commercial bank’s electronic funds transfer system (including
wire transfer) is operative and available for use by customers on such day. For the avoidance of doubt, “authorized or required
to close” shall not include any temporary closure due to orders of Governmental Authorities with respect to the COVID-19
pandemic if such electronic funds transfer system is operative as set forth in this definition.

 

“Call Closing”
has the meaning set forth in Section 9.03(c).

 

“Call Closing
Date” has the meaning set forth in Section 9.03(c).

 

“Call Option”
has the meaning set forth in Section 9.03(a).

 

“Call Window”
has the meaning set forth in Section 9.03(b).

 

“Capital
Account” has the meaning set forth in Section 3.03.

 

“Capital
Contribution” means, for any Member, the total amount of cash and cash equivalents and the Book Value of any property
contributed to the Company by such Member.

 

“Certificate
of Formation” has the meaning set forth in the Recitals.

 

“Chairperson”
has the meaning set forth in Section 7.02(b) and Error! Reference source not found.such Chairperson shall be
granted such rights and privileges as set forth herein, including, without limitation, such additional voting rights as set forth
in Section 7.05.

 

“Change of
Control” means, with respect to a Member:

 

(a)            any
Person or group of Persons acting in concert acquires or agrees to acquire, directly or indirectly, that percentage of the ownership
interests of such Member or Person directly or indirectly controlling such Member (each, a “Target”) that provides
or will provide the acquirer with a sufficient number of the Target's ownership interests having general voting rights to elect
a majority of its directors or corresponding governing body;

 

(b)            any
merger, consolidation or similar business combination of such Target into or with another Person as a result of which holders
of the voting securities of such Target immediately prior to the consummation of the transaction hold, directly or indirectly,
immediately following the consummation of the transaction, equity interests in the surviving entity in such transaction possessing
less than a majority of the voting power of such surviving entity; or

 

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(c)            any
other transaction, including the sale by such Target of new equity interests or a transfer of existing equity interests of such
Target, the result of which is that any other Person or group of related Persons, directly or indirectly, acquires (i) beneficial
ownership (as defined under Section 13(d) of the Securities Exchange Act of 1934) of equity interests of such Target
representing a majority of such Target's voting power or (ii) a majority of the assets of such Target.

 

“Change of
Control Notice” has the meaning set forth in Section 10.02.

 

“Code”
means the Internal Revenue Code of 1986.

 

“Company”
has the meaning set forth in the Preamble.

 

“Company
Interest Rate” has the meaning set forth in Section 6.02(c).

 

“Company
Minimum Gain” means “partnership minimum gain” as defined in Treasury Regulations Section 1.704-2(b)(2),
substituting the term “Company” for the term “partnership” as the context requires.

 

“Confidential
Information” has the meaning set forth in Section 10.01(a).

 

“Contribution
Agreements” has the meaning set forth in the Recitals.

 

“Covered
Person” has the meaning set forth in Section 8.01(a).

 

“Delaware
Act” means the Delaware Limited Liability Company Act, Title 6, Chapter 18, §§ 18-101, et seq.

 

“Designated
Individual” has the meaning set forth in Section 11.04(a).

 

“Electronic
Transmission” means any form of communication not directly involving the physical transmission of paper, including the
use of, or participation in, one or more electronic networks or databases (including one or more distributed electronic networks
or databases), that creates a record that may be retained, retrieved and reviewed by a recipient thereof and that may be directly
reproduced in paper form by such a recipient through an automated process.

 

“Fair Market
Value” of any asset as of any date means the purchase price that a willing buyer having all relevant knowledge would
pay a willing seller for such asset in an arm's length transaction. Unless otherwise provided herein, Fair Market Value shall
be as determined unanimously by the Managers; provided, that if the Managers are unable to agree on the fair market value
of such asset within a reasonable period of time (not to exceed a period of fifteen (15) days), such fair market value shall be
determined by a nationally recognized investment banking, accounting or valuation firm selected by unanimous agreement of the
Managers or, if the Managers are unable to agree on a firm within a 15 day period, PriceWaterhouseCoopers LLP. The determination
of such firm shall be final, conclusive and binding and the fees and expenses of such valuation firm shall be borne by the Company.

 

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“Fiscal Year”
means the twelve month period beginning February 1 and ending January 31 of each year.

 

“GAAP”
means United States generally accepted accounting principles as consistently applied by the Majority Member.

 

“Governmental
Authority” means any federal, state, local or foreign government or political subdivision thereof, or any agency or
instrumentality of such government or political subdivision, or any stock exchange or other self-regulated organization or other
non-governmental regulatory authority or quasi-governmental authority (to the extent that the rules, regulations or orders of
such organization or authority have the force of law), or any arbitrator, court or tribunal of competent jurisdiction.

 

“Independent
Third Party” means, with respect to any Member, any Person who is not an Affiliate of such Member.

 

“Initial
Budget” has the meaning set forth in Section 7.10(a).

 

“Initial
Members” means the Majority Member and the Minority Member.

 

“Liquidator”
has the meaning set forth in Section 12.03(a).

 

“Losses”
has the meaning set forth in Section 8.03(a).

 

“Majority
Member” has the meaning set forth in the preamble.

 

“Majority
Member Contribution Agreement” has the meaning set forth in the preamble.

 

“Majority
Member Manager” has the meaning set forth in Section 7.02(a)(i).

 

“Manager”
has the meaning set forth in Section 7.01.

 

“Managers
Schedule” has the meaning set forth in Section 7.03(d).

 

“Member”
means (a) each Initial Member and (b) each Person who is hereafter admitted as a Member in accordance with the terms
of this Agreement and the Delaware Act. The Members shall constitute the “members” (as that term is defined in the
Delaware Act) of the Company.

 

“Member Nonrecourse
Debt” means “partner nonrecourse debt” as defined in Treasury Regulations Section 1.704-2(b)(4), substituting
the term “Company” for the term “partnership” and the term “Member” for the term “partner”
as the context requires.

 

“Member Nonrecourse
Debt Minimum Gain” means an amount, with respect to each Member Nonrecourse Debt, equal to the Company Minimum Gain
that would result if the Member Nonrecourse Debt were treated as a Nonrecourse Liability, determined in accordance with Treasury
Regulations Section 1.704-2(i)(3).

 

“Member Nonrecourse
Deduction” means “partner nonrecourse deduction” as defined in Treasury Regulations Section 1.704-2(i),
substituting the term “Member” for the term “partner” as the context requires.

 

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“Membership
Interest” means an interest in the Company owned by a Member, including such Member's right to (a) its distributive
share of Net Income, Net Losses and other items of income, gain, loss and deduction of the Company; (b) its distributive
share of the assets of the Company; (c) vote on, consent to or otherwise participate in any decision of the Members as provided
in this Agreement; and (d) any and all other benefits to which such Member may be entitled as provided in this Agreement
or the Delaware Act. Unless otherwise determined by the Board, the Membership Interest of each Member shall be expressed as a
Percentage Interest.

 

“Minority
Member” has the meaning set forth in the preamble.

 

“Minority
Member Contribution Agreement” has the meaning set forth in the preamble.

 

“Minority
Member Manager” has the meaning set forth in Section 7.02(a)(ii).

 

“Net Income”
and “Net Loss” mean, for each Fiscal Year or other period specified in this Agreement, an amount equal to the
Company's taxable income or taxable loss, or particular items thereof, determined in accordance with Code Section 703(a) (where,
for this purpose, all items of income, gain, loss or deduction required to be stated separately pursuant to Code Section 703(a)(1) shall
be included in taxable income or taxable loss), but with the following adjustments:

 

(a)            any
income realized by the Company that is exempt from federal income taxation, as described in Code Section 705(a)(1)(B), shall
be added to such taxable income or taxable loss, notwithstanding that such income is not includable in gross income;

 

(b)            any
expenditures of the Company described in Code Section 705(a)(2)(B), including any items treated under Treasury Regulations
Section 1.704-1(b)(2)(iv)(I) as items described in Code Section 705(a)(2)(B), shall be subtracted from such taxable
income or taxable loss, notwithstanding that such expenditures are not deductible for federal income tax purposes;

 

(c)          any
gain or loss resulting from any disposition of Company property with respect to which gain or loss is recognized for federal income
tax purposes shall be computed by reference to the Book Value of the property so disposed, notwithstanding that the adjusted tax
basis of such property differs from its Book Value;

 

(d)            any
items of depreciation, amortization and other cost recovery deductions with respect to Company property having a Book Value that
differs from its adjusted tax basis shall be computed by reference to the property's Book Value (as adjusted for Book Depreciation)
in accordance with Treasury Regulations Section 1.704-1(b)(2)(iv)(g);

 

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(e)         if
the Book Value of any Company property is adjusted as provided in the definition of Book Value, then the amount of such adjustment
shall be treated as an item of gain or loss and included in the computation of such taxable income or taxable loss; and

 

(f)            to
the extent an adjustment to the adjusted tax basis of any Company property pursuant to Code Sections 732(d), 734(b) or 743(b) is
required, pursuant to Treasury Regulations Section 1.704 1(b)(2)(iv)(m), to be taken into account in determining Capital
Accounts, the amount of such adjustment to the Capital Accounts shall be treated as an item of gain (if the adjustment increases
the basis of the asset) or loss (if the adjustment decreases such basis).

 

“Nonrecourse
Deductions” has the meaning set forth in Treasury Regulations Section 1.704-2(b).

 

“Nonrecourse
Liability” has the meaning set forth in Treasury Regulations Section 1.704-2(b)(3).

 

“Officers”
has the meaning set forth in Section 7.08.

 

“Percentage
Interest” means, with respect to a Member at any time, the percentage set forth opposite such Member's name on Schedule
A hereto (such percentage being understood to be reflective of the economic interest in the Company represented by such Member's
Membership Interest). The Percentage Interests shall at all times aggregate to 100%.

 

“Permitted
Transfer” means a Transfer of a Membership Interest carried out pursuant to Section 9.02.

 

“Permitted
Transferee” means a recipient of a Permitted Transfer.

 

“Person”
means an individual, corporation, partnership, joint venture, limited liability company, Governmental Authority, unincorporated
organization, trust, association or other entity.

 

“Regulatory
Allocations” has the meaning set forth in Section 5.02(e).

 

“Related-Party
Agreement” means any agreement, arrangement or understanding between the Company and any Member or Manager, or any Affiliate
of a Member or Manager, including any sale, lease, transfer or other disposition of any property or assets, any service agreement
or arrangement, any employment or other agreement involving compensation, or any loan, advance or guaranty to, with or for any
of their benefit.

 

“Representative”
means, with respect to any Person, any and all directors, managers, officers, employees, consultants, financial advisors, counsel,
accountants and other agents of such Person.

 

“Revised
Partnership Audit Rules” has the meaning set forth in Section 11.04(a).

 

“Secretary
of State” has the meaning set forth in the Recitals.

 

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“Securities
Act” means the Securities Act of 1933.

 

“Subsidiary”
means, with respect to any Person, any other Person of which a majority of the outstanding shares or other equity interests having
the power to vote for directors or comparable managers are owned, directly or indirectly, by the first Person.

 

“Supermajority
Approval” has the meaning set forth in Section 7.05(d).

 

“Tax Matters
Representative” has the meaning set forth in Section 11.04(a).

 

“Taxing Authority”
has the meaning set forth in Section 6.02(a).

 

“Term”
has the meaning set forth in Section 2.06.

 

“Transfer”
means to, directly or indirectly, sell, transfer, assign, pledge, encumber, hypothecate or similarly dispose of, either voluntarily
or involuntarily, by operation of law or otherwise, or to enter into any contract, option or other arrangement or understanding
with respect to the sale, transfer, assignment, pledge, encumbrance, hypothecation or similar disposition of, any Membership Interest
owned by a Person or any interest (including a beneficial interest or any direct or indirect economic or voting interest) in any
Membership Interest owned by a Person; provided that none of an issuance, disposition, redemption or repurchase of any
interests in the ultimate parent entity of a Member shall be deemed to be a Transfer of a Membership Interest, including by means
of a disposition of interests in a Member or in a Person that directly or indirectly holds any interests in a Member. “Transfer”
when used as a noun shall have a correlative meaning. “Transferor” and “Transferee” mean
a Person who makes or receives a Transfer, respectively.

 

“Transferring
Member” has the meaning set forth in Section 9.02.

 

“Treasury
Regulations” means the final or temporary regulations issued by the United States Department of Treasury pursuant to
its authority under the Code, and any successor regulations.

 

“Withholding
Advances” has the meaning set forth in Section 6.02(a).

 

Section 1.02     Interpretation.
For purposes of this Agreement: (a) the words “include,” “includes”
and “including” shall be deemed to be followed by the words “without limitation”; (b) the word “or”
is not exclusive; and (c) the words “herein,” “hereof,” “hereby,” “hereto”
and “hereunder” refer to this Agreement as a whole. The definitions given for any defined terms in this Agreement
shall apply equally to both the singular and plural forms of the terms defined. Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms. Unless the context otherwise requires, references herein:
(x) to Articles, Sections and Exhibits mean the Articles and Sections of, and Exhibits attached to, this Agreement; (y) to
an agreement, instrument or other document means such agreement, instrument or other document as amended, supplemented or modified
from time to time to the extent permitted by the provisions thereof; and (z) to a statute means such statute as amended from
time to time and includes any successor legislation thereto and any regulations promulgated thereunder. This Agreement shall be
construed without regard to any presumption or rule requiring construction or interpretation against the party drafting an
instrument or causing any instrument to be drafted. The Exhibits and Schedules referred to herein shall be construed with, and
as an integral part of, this Agreement to the same extent as if they were set forth verbatim herein.

 

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ARTICLE II

Organization

 

Section 2.01     Formation.

 

(a)            The
Company was formed on February 2, 2021, pursuant to the provisions of the Delaware Act, upon the filing of the Certificate
of Formation with the Secretary of State.

 

(b)         This
Agreement shall constitute the “limited liability company agreement” (as that term is used in the Delaware Act) of
the Company. The rights, powers, duties, obligations and liabilities of the Members shall be determined pursuant to the Delaware
Act and this Agreement. To the extent that the rights, powers, duties, obligations and liabilities of any Member are different
by reason of any provision of this Agreement than they would be under the Delaware Act in the absence of such provision, this
Agreement shall, to the extent permitted by the Delaware Act, control.

 

Section 2.02     Name.
The name of the Company is TCO, LLC or such other name or names as may be designated
by the Board; provided, that the name shall always contain the words “Limited Liability Company” or the abbreviation
 “L.L.C.” or the designation “LLC.” The Board shall give prompt notice to the Members of any change to
the name of the Company.

 

Section 2.03     Principal
Office. The principal office of the Company is located at 6740 Shady Oak Road, Eden Prairie,
Minnesota or such other place as may from time to time be determined by the Board. The Board shall give prompt notice of any such
change to each of the Members.

 

Section 2.04     Registered
Office; Registered Agent.

 

(a)            The
registered office of the Company shall be the office of the initial registered agent named in the Certificate of Formation or
such other office (which need not be a place of business of the Company) as the Board may designate from time to time in the manner
provided by the Delaware Act and Applicable Law.

 

(b)            The
registered agent for service of process on the Company in the State of Delaware shall be the initial registered agent named in
the Certificate of Formation or such other Person or Persons as the Board may designate from time to time in the manner provided
by the Delaware Act and Applicable Law.

 

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Section 2.05     Purpose;
Powers.

 

(a)          The
purposes of the Company are to engage in (i) the operation of thecloseout.com, a multi-channel “off price” online
site that offers consumers exclusive and name brand products and services at deep discounts within well-defined niche verticals
via multiple consumer sales channels (the “Business”) and (ii) any and all lawful activities necessary
or incidental thereto.

 

(b)          The
Company shall have all the powers necessary or convenient to carry out the purposes for which it is formed, including the powers
granted by the Delaware Act.

 

Section 2.06     Term.
The term of the Company (“Term”) commenced on the date the Certificate
of Formation was filed with the Secretary of State and shall continue in existence perpetually until the Company is dissolved
in accordance with the provisions of this Agreement.

 

Section 2.07     No
State-Law Partnership. The Members intend that the Company shall not be a partnership
(including a limited partnership) or joint venture, and that no Member, Manager or Officer of the Company shall be a partner or
joint venturer of any other Member, Manager or Officer of the Company, for any purposes other than as set forth in Section 11.03.

 

ARTICLE III

Capital Contributions; Capital Accounts

 

Section 3.01     Initial
Capital Contributions.

 

(a)          In
connection with the transactions contemplated by the Contribution Agreements, contemporaneously with the execution of this Agreement,
the Majority Member and the Minority Member have made capital contributions as contemplated in the Contribution Agreements and
set forth on Schedule A hereto.

 

(b)          The
Board shall update Schedule A hereto upon the issuance or Transfer of any Membership Interest to any new or existing Member
in accordance with this Agreement or as otherwise required by the terms hereof.

 

Section 3.02     Additional
Capital Contributions.  No Member shall be required to make any additional Capital
Contributions to the Company. However, if the Members mutually agree that additional capital contributions are to be contributed
to the Company, the Members will negotiate in good faith at that time to determine the amounts of such contributions and the related
valuations and dilutive effects of such contributions, including any change in the Percentage Interests.

 

Section 3.03     Maintenance
of Capital Accounts. The Company shall establish and maintain for each Member a separate
capital account (a “Capital Account”) on its books and records in accordance with this Section 3.03. Each
Capital Account shall be established and maintained in accordance with the following provisions:

 

(a)            Each
Member's Capital Account shall be increased by the amount of:

 

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(i)            such
Member's Capital Contributions, including such Member's initial Capital Contribution and any Additional Capital Contributions;

 

(ii)            any
Net Income or other item of income or gain allocated to such Member pursuant to ARTICLE V; and

 

(iii)            any
liabilities of the Company that are assumed by such Member or secured by any property distributed to such Member.

 

(b)         Each
Member's Capital Account shall be decreased by:

 

(i)         the
cash amount or Book Value of any property distributed to such Member pursuant to ARTICLE VI and Section 12.03(c);

 

(ii)              the
amount of any Net Loss or other item of loss or deduction allocated to such Member pursuant to ARTICLE V; and

 

(iii)           the
amount of any liabilities of such Member assumed by the Company or that are secured by any property contributed by such Member
to the Company.

 

Section 3.04     Succession
Upon Transfer. In the event that any Membership Interest is Transferred in accordance
with the terms of this Agreement, the Transferee shall succeed to the Capital Account of the Transferor to the extent it relates
to the Transferred Membership Interest and, subject to Section 5.04, shall receive allocations and distributions pursuant
to ARTICLE V, ARTICLE VI and ARTICLE XII in respect of such Membership Interest.

 

Section 3.05     Negative
Capital Accounts. In the event that any Member shall have a deficit balance in its Capital
Account, such Member shall have no obligation, including during the Term or upon dissolution or liquidation of the Company, to
restore such negative balance or make any Capital Contributions to the Company by reason thereof, except as may be required by
Applicable Law or in respect of any negative balance resulting from a withdrawal of capital or dissolution in contravention of
this Agreement.

 

Section 3.06     No
Withdrawals From Capital Accounts. No Member shall be entitled to withdraw any part of
its Capital Account or to receive any distribution from the Company, except as otherwise provided in this Agreement. No Member
shall receive any interest, salary, management or service fees, or drawing with respect to its Capital Contributions or its Capital
Account, except as otherwise provided in this Agreement. The Capital Accounts are maintained for the sole purpose of allocating
items of income, gain, loss and deduction among the Members and shall have no effect on the amount of any distributions to any
Members, in liquidation or otherwise.

 

Section 3.07     Loans
From Members. Loans by any Member to the Company shall not be considered Capital Contributions
and shall not affect the maintenance of such Member's Capital Account.

 

    14 

     

    

 

Section 3.08     Modifications.
The foregoing provisions and the other provisions of this Agreement relating to the maintenance
of Capital Accounts are intended to comply with Treasury Regulations Section 1.704-1(b) and shall be interpreted and
applied in a manner consistent with such Treasury Regulations. If the Board determines that it is prudent to modify the manner
in which the Capital Accounts, or any increases or decreases to the Capital Accounts, are computed in order to comply with such
Treasury Regulations, the Board may authorize such modifications.

 

ARTICLE IV

Members

 

Section 4.01     Admission
of New Members.

 

(a)        New
Members may be admitted from time to time (i) in connection with the issuance of Membership Interests by the Company in accordance
with this Agreement, and (ii) in connection with a Transfer of Membership Interests, subject to compliance with the provisions
of ARTICLE IX, and in either case, following compliance with the provisions of Section 4.01(b).

 

(b)         In
order for any Person not already a Member of the Company to be admitted as a Member, whether pursuant to an issuance or Transfer
of Membership Interests, such Person shall have executed and delivered to the Company a written undertaking. Upon the amendment
of Schedule A hereto by the Board and the satisfaction of any other applicable conditions, including the receipt by the
Company of any payment for the issuance of Membership Interests, such Person shall be admitted as a Member and deemed listed as
such on the books and records of the Company. The Board shall also adjust the Capital Accounts of the Members as necessary in
accordance with Section 3.03.

 

(c)          Any
Member who proposes to Transfer its Membership Interest (or any portion thereof) shall (i) be responsible for the payment
of expenses incurred by it in connection with such Transfer, whether or not consummated, and (ii) except in connection with
a Transfer pursuant to Sections 9.03 or 9.04, reimburse the Company and the other Member for all reasonable expenses (including
reasonable attorneys' fees and expenses) incurred by or on behalf of the Company or such other Member in connection with such
proposed Transfer, whether or not consummated.

 

Section 4.02     No
Personal Liability. Except as otherwise provided in the Delaware Act, by Applicable Law
or expressly in this Agreement, no Member will be obligated personally for any debt, obligation or liability of the Company (or
any Subsidiary of the Company, if applicable) or other Member, whether arising in contract, tort or otherwise, solely by reason
of being a Member.

 

Section 4.03     No
Withdrawal. So long as a Member continues to hold any Membership Interest, such Member
shall not have the ability to withdraw or resign as a Member prior to the dissolution and winding up of the Company and any such
withdrawal or resignation or attempted withdrawal or resignation by a Member prior to the dissolution or winding up of the Company
shall be null and void. As soon as any Person who is a Member ceases to hold any Membership Interests, such Person shall no longer
be a Member. A Member shall not cease to be a Member as a result of the Bankruptcy of such Member or as a result of any other
events specified in § 18-304 of the Delaware Act.

 

    15 

     

    

 

Section 4.04     No
Interest in Company Property. No real or personal property of the Company shall be deemed
to be owned by any Member individually, but shall be owned by, and title shall be vested solely in, the Company. Without limiting
the foregoing, each Member hereby irrevocably waives during the term of the Company any right that such Member may have to maintain
any action for partition with respect to the property of the Company.

 

Section 4.05     Certification
of Membership Interests.

 

(a)         The
Board may, but shall not be required to, issue certificates representing the Membership Interests held by the Members.

 

(b)        If
the Board issues certificates representing Membership Interests in accordance with Section 4.05(a), then in addition to any
other legend required by Applicable Law, all certificates representing issued and outstanding Membership Interests shall bear
a legend substantially in the following form:

 

THE MEMBERSHIP INTERESTS REPRESENTED
BY THIS CERTIFICATE ARE SUBJECT TO A LIMITED LIABILITY COMPANY AGREEMENT AMONG THE COMPANY AND ITS MEMBERS, A COPY OF WHICH IS
ON FILE AT THE PRINCIPAL EXECUTIVE OFFICE OF THE COMPANY. NO TRANSFER, SALE, ASSIGNMENT, PLEDGE, HYPOTHECATION OR OTHER DISPOSITION
OF THE MEMBERSHIP INTERESTS REPRESENTED BY THIS CERTIFICATE MAY BE MADE EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF SUCH
LIMITED LIABILITY COMPANY AGREEMENT.

 

THE MEMBERSHIP INTERESTS REPRESENTED
BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER ANY OTHER APPLICABLE SECURITIES
LAWS AND MAY NOT BE TRANSFERRED, SOLD, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED EXCEPT PURSUANT TO (A) A
REGISTRATION STATEMENT EFFECTIVE UNDER SUCH ACT AND LAWS, OR (B) AN EXEMPTION FROM REGISTRATION THEREUNDER.

 

ARTICLE V

Allocations

 

Section 5.01     Allocation
of Net Income and Net Loss. For each Fiscal Year (or portion thereof), after giving effect
to the special allocations set forth in Section 5.02, Net Income and Net Loss of the Company shall be allocated among the
Members pro rata in accordance with their Membership Interests.

 

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Section 5.02          Regulatory
and Special Allocations. Notwithstanding the provisions of Section 5.01:

 

(a)            If
there is a net decrease in Company Minimum Gain (determined according to Treasury Regulations Section 1.704-2(d)(1)) during
any Fiscal Year, each Member shall be specially allocated Net Income for such Fiscal Year (and, if necessary, subsequent Fiscal
Years) in an amount equal to such Member's share of the net decrease in Company Minimum Gain, determined in accordance with Treasury
Regulations Section 1.704-2(g). The items to be so allocated shall be determined in accordance with Treasury Regulations
Sections 1.704-2(f)(6) and 1.704-2(j)(2). This Section 5.02 is intended to comply with the “minimum gain chargeback”
requirement in Treasury Regulations Section 1.704-2(f) and shall be interpreted consistently therewith.

 

(b)            Member
Nonrecourse Deductions shall be allocated in the manner required by Treasury Regulations Section 1.704-2(i). Except as otherwise
provided in Treasury Regulations Section 1.704-2(i)(4), if there is a net decrease in Member Nonrecourse Debt Minimum Gain
during any Fiscal Year, each Member that has a share of such Member Nonrecourse Debt Minimum Gain shall be specially allocated
Net Income for such Fiscal Year (and, if necessary, subsequent Fiscal Years) in an amount equal to that Member's share of the
net decrease in Member Nonrecourse Debt Minimum Gain. Items to be allocated pursuant to this paragraph shall be determined in
accordance with Treasury Regulations Sections 1.704-2(i)(4) and 1.704-2(j)(2). This Section 5.02(b) is intended
to comply with the “minimum gain chargeback” requirements in Treasury Regulations Section 1.704-2(i)(4) and
shall be interpreted consistently therewith.

 

(c)            Nonrecourse
Deductions shall be allocated to the Members in accordance with their Membership Interests.

 

(d)          In
the event any Member unexpectedly receives any adjustments, allocations or distributions described in Treasury Regulations Section 1.704-1(b)(2)(ii)(d)(4),
(5) or (6), Net Income shall be specially allocated to such Member in an amount and manner sufficient to eliminate the Adjusted
Capital Account Deficit created by such adjustments, allocations or distributions as quickly as possible. This Section 5.02(d) is
intended to comply with the qualified income offset requirement in Treasury Regulations Section 1.704-1(b)(2)(ii)(d) and
shall be interpreted consistently therewith.

 

(e)          The
allocations set forth in paragraphs (a), (b), (c) and (d) above (the “Regulatory Allocations”) are
intended to comply with certain requirements of the Treasury Regulations under Code Section 704. Notwithstanding any other
provisions of this ARTICLE V (other than the Regulatory Allocations), the Regulatory Allocations under paragraph (d) above
shall be taken into account in allocating Net Income and Net Losses among Members so that, to the extent possible, the net amount
of such allocations of Net Income and Net Losses and other items and the Regulatory Allocations to each Member shall be equal
to the net amount that would have been allocated to such Member if the Regulatory Allocations had not occurred.

 

    17 

     

    

 

Section 5.03          Tax
Allocations.

 

(a)            Subject
to Section 5.03(b), Section 5.03(c) and Section 5.03(d), all income, gains, losses and deductions of the Company
shall be allocated, for federal, state and local income tax purposes, among the Members in accordance with the allocation of such
income, gains, losses and deductions pursuant to Section 5.01 and Section 5.02, except that if any such allocation for
tax purposes is not permitted by the Code or other Applicable Law, the Company's subsequent income, gains, losses and deductions
shall be allocated among the Members for tax purposes, to the extent permitted by the Code and other Applicable Law, so as to
reflect as nearly as possible the allocation set forth in Section 5.01 and Section 5.02.

 

(b)            Items
of Company taxable income, gain, loss and deduction with respect to any property contributed to the capital of the Company shall
be allocated among the Members in accordance with Code Section 704(c) using the traditional method with curative allocations,
with curative allocations for depreciation and amortization limited to other items of depreciation and amortization.

 

(c)            If
the Book Value of any Company asset is adjusted pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(f) as provided
in clause (c) of the definition of Book Value in Section 1.01, subsequent allocations of items of taxable income, gain,
loss and deduction with respect to such asset shall take account of any variation between the adjusted basis of such asset for
federal income tax purposes and its Book Value in the same manner as under Code Section 704(c).

 

(d)            Allocations
of tax credit, tax credit recapture and any items related thereto shall be allocated to the Members according to their interests
in such items as determined by the Board, taking into account the principles of Treasury Regulations Section 1.704-1(b)(4)(ii).

 

(e)            Allocations
pursuant to this Section 5.03 are solely for purposes of federal, state and local taxes and shall not affect, or in any way
be taken into account in computing, any Member's Capital Account or share of Net Income, Net Losses, distributions or other items
pursuant to any provisions of this Agreement.

 

Section 5.04          Allocations
in Respect of Transferred Membership Interests. In the event of a Transfer of a Membership
Interest during any Fiscal Year made in compliance with the provisions of ARTICLE IX, Net Income, Net Losses and other items
of income, gain, loss and deduction of the Company attributable to such Membership Interest for such Fiscal Year shall be determined
using the interim closing of the books method.

 

    18 

     

    

 

ARTICLE VI

Distributions

 

Section 6.01          General.

 

(a)            Distributions
of available cash shall be made to the Members when and in such amounts as determined by the Board.
Any such distributions shall be distributed to the Members pro rata in accordance with their respective Percentage Interests.
The Company shall use commercially reasonable efforts to make quarterly distributions in cash to Members (in accordance with their
Percentage Interests) such that each Member receives an amount for each quarter, when added to amounts previously distributed,
that is at least equal to 28% of the estimated taxable income allocated to the Member from formation through the end of the quarter.

 

(b)            Notwithstanding
any provision to the contrary contained in this Agreement, the Company shall not make any distribution to the Members if such
distribution would violate § 18-607 of the Delaware Act.

 

Section 6.02          Tax
Withholding; Withholding Advances.

 

(a)            Each
Member agrees to furnish the Company with any representations and forms as shall be reasonably requested by the Board to assist
it in determining the extent of, and in fulfilling, any withholding obligations it may have.

 

(b)          The
Company is hereby authorized at all times to make payments (“Withholding Advances”) with respect to each Member
in amounts required to discharge any obligation of the Company (as determined by the Tax Matters Representative based on the advice
of legal or tax counsel to the Company) to withhold or make payments to any federal, state, local or foreign taxing authority
(a “Taxing Authority”) with respect to any distribution or allocation by the Company of income or gain to such
Member and to withhold the same from distributions to such Member. Any funds withheld from a distribution by reason of this Section 6.02(a) shall
nonetheless be deemed distributed to the Member in question for all purposes under this Agreement.

 

(c)          Any
Withholding Advance made by the Company to a Taxing Authority on behalf of a Member and not withheld from a distribution to that
Member within 30 days shall, with interest thereon accruing from the date of payment at a rate equal to the prime rate published
in the Wall Street Journal on the date of payment plus 2.0% per annum (the “Company Interest Rate”):

 

(i)          be
promptly repaid to the Company by the Member on whose behalf the Withholding Advance was made (which repayment by the Member shall
not constitute a Capital Contribution, but shall credit the Member's Capital Account if the Board shall have initially charged
the amount of the Withholding Advance to the Capital Account); or

 

(ii)            with
the consent of the Board (not including, for purposes of such vote any Managers appointed by the Member on whose behalf the Withholding
Advance has been made), be repaid by reducing the amount of the next succeeding distribution or distributions to be made to such
Member (which reduction amount shall be deemed to have been distributed to the Member, but which shall not further reduce the
Member's Capital Account if the Board shall have initially charged the amount of the Withholding Advance to the Capital Account).

 

    19 

     

    

 

Interest shall
cease to accrue from the time the Member on whose behalf the Withholding Advance was made repays such Withholding Advance (and
all accrued interest) by either method of repayment described above.

 

(d)            Each
Member hereby agrees to indemnify and hold harmless the Company and the other Members from and against any liability with respect
to taxes, interest and penalties, if any, that may be incurred by the Company by reason of the Company's failure to deduct and
withhold sufficient tax on amounts distributable or allocable to such Member or by reason of an adjustment to an amount of income,
gain, loss, deduction or credit allocable to such Member (including, but not limited to, any amount payable by the Company pursuant
to an adjustment under Code Section 6225). The provisions of this Section 6.02(d) and the obligations of a Member
pursuant to Section 6.02(c) shall survive the withdrawal of such Member from the Company or Transfer of such Member’s
Units and the termination, dissolution, liquidation and winding up of the Company. The Company may pursue and enforce all rights
and remedies it may have against each Member under this Section 6.02, including bringing a lawsuit to collect repayment with
interest of any Withholding Advances.

 

(e)            Neither
the Company, nor any Manager shall be liable for any excess taxes withheld in respect of any distribution or allocation of income
or gain to a Member. In the event of an overwithholding, a Member's sole recourse shall be to apply for a refund from the appropriate
Taxing Authority.

 

Section 6.03          Distributions
in Kind. No Member has the right to demand or receive property other than cash in
payment for its share of any distribution made in accordance with this Agreement. Except as set out in Section 12.03(d),
non-cash distributions are not permitted without the unanimous consent of the Members.

 

ARTICLE VIIManagement

 

Section 7.01          Establishment
of the Board. A board of managers of the Company (the “Board”) is
hereby established and shall be comprised of natural Persons (each such Person, a “Manager”) who shall be appointed
in accordance with the provisions of Section 7.02. The business and affairs of the Company shall be managed, operated and
controlled by or under the direction of the Board, and the Board shall have, and is hereby granted, the full, complete and exclusive
power, authority and discretion for, on behalf of and in the name of the Company, to take such actions as it may in its sole discretion
deem necessary or advisable to carry out any and all of the objectives and purposes of the Company, subject only to the terms
of this Agreement. Except as provided in this Agreement, no Manager, acting in his or her capacity as such, shall have any authority
to bind the Company with respect to any matter except pursuant to a resolution authorizing such action that is duly adopted by
the Board by the affirmative vote required with respect to such matter pursuant to this Agreement. Except as expressly provided
herein or by Applicable Law, no Member, in its capacity as a Member, shall have any power or authority over the business and affairs
of the Company or any power or authority to act for or on behalf of, or to bind, the Company.

 

    20 

     

    

 

Section 7.02          Board
Composition.

 

(a)            The
Company and the Members shall take such actions as may be required to ensure that the number of Managers constituting the Board
is at all times 5. The Board shall be comprised as follows and votes shall be allocated as set forth in Section 7.05(b):

 

(i)            2
individuals designated by the Majority Member (each a “Majority Member Manager”), who shall initially be Tim
Peterman and Landel Hobbs; and

 

(ii)            3
individuals designated by the Minority Member (each, a “Minority Member Manager”), who shall initially be Eyal
Lalo, Fausto Trevisan and Mauricio Krantzberg.

 

(b)            One
Majority Member Manager shall be designated by the Majority Member to serve as the Chairperson of the Board (the “Chairperson”).
The Chairperson shall be entitled to such additional rights and privileges as set forth in this Agreement including, without limitation,
the following:

 

(i)            The
Chairperson must be present in person or by proxy in order to constitute a quorum of the Board on all matters submitted to the
Board, and his or her vote shall be required on any matter taken by written consent of the Board in lieu of a meeting.

 

(ii)            Any
expenditure of the Company in excess of $150,000 shall require the prior approval of the Chairperson

 

(c)            For
the avoidance of doubt, the Chairperson shall initially be Tim Peterman.

 

Section 7.03          Removal;
Resignation; Vacancies.

 

(a)            Each
Member may remove any Manager appointed by it at any time with or without cause, effective upon written notice to the other Member
and the Chairperson. No Manager may be removed except in accordance with this Section 7.03(a).

 

(b)            A
Manager may resign at any time from the Board by delivering his or her written resignation to the Board. Any such resignation
shall be effective upon receipt thereof unless it is specified to be effective at some other time or upon the occurrence of some
other event. The Board's or Company's acceptance of a resignation shall not be necessary to make it effective.

 

    21 

     

    

 

(c)            Any
vacancy on the Board resulting from the resignation, removal, death or disability of a Manager appointed by a Member shall be
filled by the Member that appointed such Manager, with such appointment to become effective immediately upon delivery of such
written notice of such appointment to the other Member and the Chairperson.

 

(d)            The
Board shall maintain a schedule of all Managers with their respective mailing addresses (the “Managers Schedule”),
and shall update the Managers Schedule upon the appointment, removal or replacement of any Manager in accordance with Section 7.02
or this Section 7.03.

 

(e)            Each
party hereto shall take all necessary action to carry out fully the provisions of Section 7.02 and the foregoing provisions
of this Section 7.03 to ensure that the Board and the board of directors or other governing body of any Subsidiary consists
of the Managers that are duly appointed in accordance with such sections.

 

Section 7.04          Meetings.

 

(a)            Regular
meetings of the Board shall be held when and as determined by the Board at such dates and times as the Board may designate. Special
meetings of the Board may be called at any time by the Chairperson and shall be called by the Chairperson at the written request
of any Manager who makes such request in good faith. Meetings of the Board may be held either in person at the executive
office of the Company or by telephone or video conference or other communication device that permits all Managers participating
in the meeting to hear each other.

 

(b)            The
decisions and resolutions of the Board shall be recorded in minutes, which shall state the date, time and place of the meeting
(or the date of any written consent in lieu of a meeting), the Managers present at the meeting, the resolutions put to a vote
(or the subject of a written consent) and the results of such voting or written consent.

 

Section 7.05          Quorum;
Manner of Acting; Supermajority Approval.

 

(a)            The
presence in person or by proxy of a number of Managers equal to a majority of the total number of Managers serving on the Board
shall constitute a quorum for the conduct of business at any meeting of the Board; provided that, in order to constitute
a quorum, the Chairperson must be present in person or by proxy as set forth in Section 7.02(b). If such quorum shall not
be present at any meeting of the Board, the Managers present shall adjourn the meeting and promptly give notice to the Managers
of when it shall be reconvened. Any Manager may participate in a meeting of the Board by telephone or video conference or other
communications device that permits all Managers participating in the meeting to hear each other, and participation in a meeting
by such means shall constitute presence in person at such meeting. A Manager may vote or be present at a meeting either in person
or by proxy in accordance with Section 7.05(c).

 

    22 

     

    

 

(b)            Each
Majority Member Manager shall have two (2) votes on all matters submitted to the Board and each Minority Member Manager shall
have one (1) vote on all matters submitted to the Board. Except as otherwise set forth in this Agreement (including Section 7.05(d)),
the affirmative vote of a majority of the Managers in attendance at any meeting of the Board at which a quorum is present shall
be required to authorize any action by the Board and shall constitute the action of the Board for all purposes.

 

(c)            Each
Manager may authorize another individual to act for such Manager by proxy at any meeting of the Board, or to express consent or
dissent to a Company action in writing without a meeting. Any such proxy may be granted in writing, by Electronic Transmission
or as otherwise permitted by Applicable Law.

 

(d)            Notwithstanding
anything herein to the contrary, for so long as the Percentage Interest of the Minority Member is at least equal to 20% the Company
shall not, and shall not enter into any commitment to (and the Board shall not authorize the Company to), do any of the following
without the unanimous consent of the Board (“Supermajority Approval”):

 

(i)            amend,
modify or waive the Certificate of Formation or this Agreement (other than any amendment to Schedule A hereto that are
necessary to reflect any new issuance, redemption, repurchase or Transfer of Membership Interests in accordance with this Agreement);

 

(ii)          issue
or redeem any Membership Interest or admit additional Members to the Company (other than as provided in Section 9.02);

 

(iii)            authorize
any distribution other than as required by Section 6.01(a);

 

(iv)            make
any loan, advance, capital contribution or other investment in or to any Person, other than in the ordinary course of business;

 

(v)           enter
into or effect any transaction or series of related transactions involving the purchase, lease, license, exchange or other acquisition
(including by merger, consolidation, acquisition of stock or acquisition of assets) by the Company of any assets and/or equity
interests of any Person, other than in the ordinary course of business;

 

(vi)           enter
into or effect any transaction or series of related transactions involving the sale, lease, license, exchange or other disposition
(including by merger, consolidation, sale of stock or sale of assets) by the Company of any assets having a value in excess of
$100,000, other than in the ordinary course of business;

 

(vii)            approve
any merger, consolidation or combination of the Company with or into any other Person;

 

    23 

     

    

 

(viii)          establish
a Subsidiary or enter into any joint venture or similar business arrangement;

 

(ix)            make
any changes in the accounting methods or policies of the Company (other than as required by GAAP); or

 

(x)            enter
into, amend in any material respect, waive, supplement or terminate any Related-Party Agreement.

 

Section 7.06      Action
By Written Consent. Any action of the Board may be taken without a meeting if a consent
in writing, setting forth the action to be taken, is signed unanimously by all the Managers. Such consent shall have the same
force and effect as a vote at a meeting where a quorum was present and may be stated as such in any document or instrument filed
with the Secretary of State.

 

Section 7.07     Compensation;
No Employment.

 

(a)            Each
Manager shall serve without compensation in his or her capacity as such. Each Manager shall be entitled to reimbursement from
the Company for his or her reasonable and necessary out-of-pocket expenses incurred in the performance of his or her duties as
a Manager, pursuant to such policies as may from time to time be established by the Board.

 

(b)            This
Agreement does not, and is not intended to, confer upon any Manager any rights with respect to employment by the Company, and
nothing herein shall be construed to have created any employment agreement or relationship with any Manager.

 

Section 7.08     Officers.
The Board may appoint individuals as officers of the Company (the “Officers”)
as it deems necessary or desirable to carry on the business of the Company and the Board may delegate to such Officers such powers
and authorities as the Board deems advisable. No Officer need be a Member or Manager. Any individual may hold two or more offices
of the Company. Each Officer shall hold office until his or her successor is designated by the Board or until his or her earlier
death, resignation or removal. Any Officer may resign at any time on written notice to the Board. Any Officer may be removed by
the Board with or without cause at any time. A vacancy in any office occurring because of death, resignation, removal or otherwise,
may, but need not, be filled by the Board.

 

Section 7.09     No
Personal Liability. Except as otherwise provided in the Delaware Act or by Applicable
Law, no Manager will be obligated personally for any debt, obligation or liability of the Company or any Subsidiary thereof, whether
arising in contract, tort or otherwise, solely by reason of being a Manager.

 

    24 

     

    

 

Section 7.10          Budget.

 

(a)            The
2021 budget for the Company through the Fiscal Year ending January 31, 2022 (the “2021 Budget”) will be
approved by the Board on or before March 31, 2021. The Board shall operate the Company in accordance with the Initial Budget,
as it may be updated, modified or replaced in accordance with Error! Reference source not found. (the “Budget”).

 

(b)          At
least 60 days before the beginning of each Fiscal Year (commencing with the Fiscal Year ending January 31, 2023, the Company
shall prepare and submit to the Board proposed budgets for each upcoming Fiscal Year and shall operate in accordance with the
then-existing Budget until a revised Budget is approved by the Board.

 

Section 7.11          Other
Activities; Business Opportunities.  Except as set forth in Error! Reference
source not found., nothing contained in this Agreement shall prevent any Member or any of its Affiliates from engaging in
any other activities or businesses, regardless of whether those activities or businesses are similar to or competitive with the
Business. None of the Members nor any of their Affiliates shall be obligated to account to the Company or to the other Member
for any profits or income earned or derived from other such activities or businesses. None of the Members nor any of their Affiliates
shall be obligated to inform the Company or the other Member of any business opportunity of any type or description.

 

ARTICLE VIII

Exculpation and Indemnification

 

Section 8.01          Exculpation
of Covered Persons.

 

(a)            As
used herein, the term “Covered Person” shall mean (i) each Member; (ii) each officer, director, shareholder,
partner, member, Affiliate, employee, agent or representative of each Member, and each of their Affiliates; and (iii) each
Manager, Officer, employee, agent or representative of the Company.

 

(b)            No
Covered Person shall be liable to the Company or any Member or any Affiliate of a Member for any loss, damage or claim incurred
by reason of any action taken or omitted to be taken by such Covered Person in his, her or its capacity as a Covered Person, whether
or not such Person continues to be a Covered Person at the time such loss, damage or claim is incurred or imposed, so long as
such action or omission does not constitute fraud, gross negligence, willful misconduct or a breach or violation by such Covered
Person of any of such Covered Person's or his, her or its Affiliates’ agreements contained herein.

 

(c)            A
Covered Person shall be fully protected in relying in good faith upon the records of the Company and upon such information, opinions,
reports or statements (including financial statements and information, opinions, reports or statements as to the value or amount
of the assets, liabilities, Net Income or Net Losses of the Company or any facts pertinent to the existence and amount of assets
from which distributions might properly be paid) of the following Persons or groups: (i) a Manager; (ii) one or more
Officers or employees of the Company; (iii) any attorney, independent accountant, appraiser or other expert or professional
employed or engaged by or on behalf of the Company; or (iv) any other Person selected in good faith by or on behalf of the
Company, in each case as to matters that such relying Person reasonably believes to be within such other Person's professional
or expert competence. The preceding sentence shall in no way limit any Person's right to rely on information to the extent provided
in § 18-406 of the Delaware Act.

 

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Section 8.02          Liabilities
and Duties of Covered Persons.

 

(a)          This
Agreement is not intended to, and does not, create or impose any fiduciary duty on any Covered Person. Furthermore, each of the
Members and the Company hereby waives any and all fiduciary duties that, absent such waiver, may be implied by Applicable Law,
and in doing so, acknowledges and agrees that the duties and obligations of each Covered Person to each other and to the Company
are only as expressly set forth in this Agreement. The provisions of this Agreement, to the extent that they restrict the duties
and liabilities of a Covered Person otherwise existing at law or in equity, are agreed by the Members to replace such other duties
and liabilities of such Covered Person.

 

(b)          Whenever
in this Agreement a Covered Person is permitted or required to make a decision (including a decision that is in such Covered Person's
 “discretion” or under a grant of similar authority or latitude), such Covered Person shall be entitled to consider
only such interests and factors as such Covered Person desires, including such Covered Person's own interests (or, in the case
of a Manager, the interests of the Member that appointed such Manager or such Member's Affiliates), and shall have no duty or
obligation to give any consideration to any interest of or factors affecting the Company or any other Person. Whenever in this
Agreement a Covered Person is permitted or required to make a decision in such Covered Person's “good faith,” the
Covered Person shall act under such express standard and shall not be subject to any other or different standard imposed by this
Agreement or any other Applicable Law.

 

Section 8.03          Indemnification.

 

(a)          To
the fullest extent permitted by the Delaware Act, as the same now exists or may hereafter be amended, substituted or replaced
(but, in the case of any such amendment, substitution or replacement, only to the extent that such amendment, substitution or
replacement permits the Company to provide broader indemnification rights than the Delaware Act permitted the Company to provide
prior to such amendment, substitution or replacement), the Company shall indemnify, hold harmless, defend, pay and reimburse any
Covered Person from and against any and all losses, claims, damages, judgments, fines or liabilities, including reasonable legal
fees or other expenses incurred in investigating or defending against such losses, claims, damages, judgments, fines or liabilities,
and any amounts expended in settlement of any claims (other than in connection with any claims brought by (A) a Member or
its Affiliate against another Member or its Affiliate or (B) the Company) (collectively, “Losses”) to
which such Covered Person may become subject by reason of:

 

    26 

     

    

 

(i)            any
act or omission or alleged act or omission performed or omitted to be performed on behalf of the Company or any Subsidiary of
the Company in connection with the Business of the Company; or

 

(ii)           such
Covered Person being or acting in connection with the Business of the Company as a Member, an Affiliate of a Member, a Manager
or an Officer, or that such Covered Person is or was serving at the request of the Company as a member, manager, partner, director,
officer, employee or agent of any other Person;

 

provided,
that (x) such Covered Person acted in good faith and in a manner believed by such Covered Person to be in, or not opposed
to, the best interests of the Company and within the scope of such Covered Person's authority conferred on him, her or it by the
Company and, with respect to any criminal proceeding, had no reasonable cause to believe his, her or its conduct was unlawful,
and (y) such Covered Person's conduct did not constitute fraud, gross negligence, willful misconduct or a breach or violation
by such Covered Person of any of such Covered Person's or his, her or its Affiliates’ agreements contained herein, in each
case as determined by a final, nonappealable order of a court of competent jurisdiction. In connection with the foregoing, the
termination of any action, suit or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere
or its equivalent, shall not, of itself, create a presumption that the Covered Person did not act in good faith or, with respect
to any criminal proceeding, had reasonable cause to believe that such Covered Person's conduct was unlawful, or that the Covered
Person's conduct constituted fraud, gross negligence, willful misconduct or a breach or violation by such Covered Person of any
of such Covered Person's or his, her or its Affiliates’ agreements contained herein.

 

(b)            To
the fullest extent permitted by Applicable Law, expenses (including legal fees and expenses) incurred by a Covered Person in connection
with defending any claim relating to any Losses for which such Covered Person may be entitled to be indemnified pursuant to Section 8.03(a) shall,
from time to time, be advanced by the Company prior to a final and non-appealable judgment entered by a court of competent jurisdiction
determining that, in respect of such matter, such Covered Person is not entitled to indemnification for such Losses; provided,
however, that the Covered Person shall have provided to the Company (i) written affirmation of such Covered Person's
good faith belief that he, she or it has met the standard of conduct necessary for indemnification for such Losses under Section 8.03(a);
and (ii) an undertaking to repay all such advanced amounts if it shall ultimately be determined that such Covered Person
is not entitled to such indemnification.

 

(c)            The
indemnification provided by this Section 8.03 shall not be deemed exclusive of any other rights to indemnification to which
those seeking indemnification may be entitled under any agreement or otherwise. The provisions of this Section 8.03 shall
continue to afford protection to each Covered Person regardless of whether such Covered Person remains in the position or capacity
pursuant to which such Covered Person became entitled to indemnification under this Section 8.03 and shall inure to the benefit
of the executors, administrators, legatees and distributees of such Covered Person.

 

    27 

     

    

 

(d)            To
the extent reasonably practicable, the Majority Member shall provide the Majority Member Manager with D&O liability insurance
under its existing policy, and the Minority Member shall provide the Minority Member Managers with D&O liability insurance
under its or its Affiliate’s existing policy. In addition, to the extent available on commercially reasonable terms, the
Company may, at the sole option of the Majority Member, purchase, at its expense, insurance to cover Losses covered by the foregoing
indemnification provisions and to otherwise cover Losses for any breach or alleged breach by any Covered Person of such Covered
Person's duties in such amount and with such deductibles as the Board may determine; provided, that (i) all Members
and Managers shall be treated equally under any such insurance policies and (ii) the failure to obtain such insurance shall
not affect the right to indemnification of any Covered Person under the indemnification provisions contained herein, including
the right to be reimbursed or advanced expenses or otherwise indemnified for Losses hereunder. If any Covered Person recovers
any amounts in respect of any Losses from any insurance coverage, then such Covered Person shall, to the extent that such recovery
is duplicative, reimburse the Company for any amounts previously paid to such Covered Person by the Company in respect of such
Losses.

 

(e)             Notwithstanding
anything contained herein to the contrary, any indemnity by the Company relating to the matters covered in this Section 8.03
shall be provided out of and to the extent of Company assets only, and no Member (unless such Member otherwise agrees in writing)
shall have personal liability on account thereof or shall be required to make additional Capital Contributions to help satisfy
such indemnity by the Company.

 

(f)            If
this Section 8.03 or any portion hereof shall be invalidated on any ground by any court of competent jurisdiction, then the
Company shall nevertheless indemnify and hold harmless each Covered Person pursuant to this Section 8.03 to the fullest extent
permitted by any applicable portion of this Section 8.03 that shall not have been invalidated and to the fullest extent permitted
by Applicable Law.

 

(g)            The
provisions of this Section 8.03 shall be a contract between the Company, on the one hand, and each Covered Person who served
in such capacity at any time while this Section 8.03 is in effect, on the other hand, pursuant to which the Company and each
such Covered Person intend to be legally bound. No amendment, modification or repeal of this Section 8.03 that adversely
affects the rights of a Covered Person to indemnification for Losses incurred or relating to a state of facts existing prior to
such amendment, modification or repeal shall apply in such a way as to eliminate or reduce such Covered Person's entitlement to
indemnification for such Losses without the Covered Person's prior written consent.

 

Section 8.04          Survival.
The provisions of this ARTICLE VIII shall survive the dissolution, liquidation,
winding up and termination of the Company.

 

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ARTICLE IX

Transfer

 

Section 9.01          Restrictions
on Transfer.

 

(a)            Except
as otherwise provided in this ARTICLE IX, no Member shall Transfer all or any portion of its Membership Interest without
Supermajority Approval. No Transfer of Membership Interests to a Person not already a Member of the Company shall be deemed completed
until the prospective Transferee is admitted as a Member of the Company in accordance with Section 4.01(b).

 

(b)          Notwithstanding
any other provision of this Agreement (including Section 9.02), each Member agrees that it will not Transfer all or any portion
of its Membership Interest, and the Company agrees that it shall not issue any Membership Interests:

 

(i)          except
as permitted under the Securities Act and other applicable federal or state securities or blue sky laws, and then, with respect
to a Transfer of Membership Interests, only upon delivery to the Company of an opinion of counsel in form and substance satisfactory
to the Company to the effect that such Transfer may be effected without registration under the Securities Act;

 

(ii)         if
such Transfer or issuance would cause the Company to be considered a “publicly traded partnership” under Section 7704(b) of
the Code within the meaning of Treasury Regulations Section 1.7704-1(h)(1)(ii), including the look-through rule in Treasury
Regulations Section 1.7704-1(h)(3);

 

(iii)            if
such Transfer or issuance would affect the Company's existence or qualification as a limited liability company under the Delaware
Act;

 

(iv)            if
such Transfer or issuance would cause the Company to lose its status as a partnership for federal income tax purposes;

 

(v)             if
such Transfer or issuance would cause the Company to be required to register as an investment company under the Investment Company
Act of 1940; or

 

(vi)            if
such Transfer or issuance would cause the assets of the Company to be deemed “Plan Assets” as defined under the Employee
Retirement Income Security Act of 1974 or its accompanying regulations or result in any “prohibited transaction” thereunder
involving the Company.

 

(c)            Any
Transfer or attempted Transfer of any Membership Interest in contravention of this Agreement shall be null and void, no such Transfer
shall be recorded on the Company's books or otherwise recognized by the Company, and the purported Transferee in any such Transfer
shall not be treated as the owner of such Membership Interest for any purposes of this Agreement or have any rights as a Member
(and the purported Transferor shall continue to be treated as the owner of such Membership Interest and as a Member).

 

    29 

     

    

 

(d)           For
the avoidance of doubt, any Transfer of a Membership Interest permitted by this Agreement shall be deemed a sale, transfer, assignment
or other disposal of such Membership Interest in its entirety as intended by the parties to such Transfer, and shall not be deemed
a sale, transfer, assignment or other disposal of any less than all of the rights and benefits described in the definition of
the term “Membership Interest,” unless otherwise explicitly agreed to by the parties to such Transfer.

 

Section 9.02          Permitted
Transfers. The provisions of Section 9.01(a) shall not apply to any Transfer
by a Member (a “Transferring Member”) of all of its Membership Interest to an Affiliate of such Transferring
Member that is wholly-owned, directly or indirectly, by the ultimate parent of such Transferring Member; provided that
(a) such Transferring Member shall have guaranteed in a writing delivered to the Company and the other Member the performance
by the Transferee of all of such Transferring Member's obligations under this Agreement and (b) if at any time such Transferee
ceases to be an Affiliate of such Transferring Member that is wholly-owned, directly or indirectly, by the ultimate parent of
such Transferring Member, the Company, such Transferring Member and such Transferee shall take such action as is necessary to
cause there to be an immediate and unconditional reconveyance of the Membership Interest to either (in the sole discretion of
such Transferring Member) such Transferring Member or any wholly-owned Affiliate of such Transferring Member.

 

(a)            Call
Option. Beginning on February 5, 2026 and recurring every 12 months thereafter, the Majority Member shall have the right,
but not the obligation, to negotiate in good faith with the Minority Member to acquire all or a portion of the Membership Interest
of the Minority Member (the “Call Option”).

 

(b)            Each
such Call Option will last for 60 days (the “Call Window”). The parties agree that the Fair Market Value of
the Company during any Call Window shall, for purposes of the Call Option, be based on the following tiered valuation structure
(measured as of the most recent quarter end preceding the date of the Call Window). For the avoidance of doubt, any television
retailing wholesales revenue and profit earned by the Company shall be included in the EBITDA calculation for purposes of calculations
under this Section 9.03.

 

    30 

     

    

 

$
in Millions

 

	Financial Benchmarks	 	 	Call Option Valuation Formula	 
	TTM Net Sales	 	 	EBITDA Margin	 	 	(whichever is higher)	 
	Greater Than	 	 	Less Than	 	 	Minimum	 	 	Net Sales	 	 	EBITDA	 
	 	-	 	 	$	20	 	 	 	5	%	 	 	1.0	x	 	 	6.0	x
	$	20	 	 	$	30	 	 	 	5	%	 	 	1.0	x	 	 	8.0	x
	$	30	 	 	$	40	 	 	 	5	%	 	 	1.0	x	 	 	9.0	x
	$	40	 	 	$	50	 	 	 	5	%	 	 	1.0	x	 	 	10.0	x
	$	50	 	 	$	60	 	 	 	5	%	 	 	1.0	x	 	 	12.0	x
	$	60	 	 	 	 	 	 	 	5	%	 	 	1.0	x	 	 	14.0	x

 

 

(c)            The
Minority Member shall, at the closing of such sale (“Call Closing”), represent and warrant to the Majority
Member that (i) the Minority Member has full right, title and interest in and to such Membership Interest, (ii) the
Minority Member has all necessary power and authority and has taken all necessary action to sell such Membership Interest as contemplated
by this Section 9.03, and (iii) such Membership Interest is free and clear of any Encumbrance other than those arising
as a result of or under the terms of this Agreement. Subject to Section 9.03(d), the Call Closing shall take place no later
than 75 days following the Majority Member’s notice to the Minority Member to exercise the Call Option (the “Call
Closing Date”).

 

(d)          At
the Call Closing, the Majority Member shall deliver to the Minority Member in cash or by wire transfer of immediately available
funds the consideration for the Call Option calculated in accordance with Section 9.02(b). At the Call Closing, the Minority
Member shall deliver to the Majority Member (i) a certificate or certificates (if any) representing the Membership Interest
to be sold, accompanied by an assignment of the certificate to the Majority Member or its assignee pursuant to this ARTICLE IX;
(ii) the resignation of each of the Managers the Minority Member appointed to the Board; and (iii) a certificate meeting
the requirements of the applicable IRS guidance that the Minority Member is not a foreign person within the meaning of Code Section 1446(f) and
Code Section 1445 and establishing that no withholding is required under those Sections.

 

(e)          Without
limitation of the other provisions of this Section 9.03, each Member agrees to cooperate and take, and to cause its Affiliates
to cooperate and take, all actions and execute all documents reasonably necessary or appropriate to reflect the purchase of the
Minority Member's Membership Interest by the Majority Member pursuant to this Section 9.03.

 

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ARTICLE X

COVENANTS AND AGREEMENTS OF THE MEMBERS

 

Section 10.01          Confidentiality.

 

(a)            Each
Member acknowledges that it may have access to and become acquainted with trade secrets, proprietary information and confidential
information belonging to the Company that are not generally known to the public, including information concerning business plans,
financial statements and other information provided pursuant to this Agreement, operating practices and methods, expansion plans,
strategic plans, marketing plans, contracts, customer lists or other business documents that the Company treat as confidential,
in any format whatsoever (including oral, written, electronic or any other form or medium) (collectively, “Confidential
Information”). In addition, each Member acknowledges that: (i) the Company have invested, and continue to invest,
substantial time, expense and specialized knowledge in developing its Confidential Information; (ii) the Confidential Information
provides the Company with a competitive advantage over others in the marketplace; and (iii) the Company would be irreparably
harmed if the Confidential Information were disclosed to competitors or made available to the public. Without limiting the applicability
of any other agreement to which any Member is subject, no Member shall, directly or indirectly, disclose or use (other than in
connection with the conduct of the Company's business or the monitoring of its investment in the Company) at any time, including
use for personal, commercial or proprietary advantage or profit, either during its association with the Company or thereafter,
any Confidential Information of which such Member is or becomes aware. Each Member in possession of Confidential Information shall
take all appropriate steps to safeguard such information and to protect it against disclosure, misuse, espionage, loss and theft.

 

(b)            Nothing
contained in Section 10.01(a) shall prevent any Member from disclosing Confidential Information: (i) upon the order
of any Governmental Authority; (ii) upon the request or demand of any Governmental Authority having jurisdiction over such
Member; (iii) to the extent compelled by legal process or required or requested pursuant to subpoena, interrogatories or
other discovery requests; (iv) to the extent necessary to assert any right or defend any claim arising under this; (v) to
the other Member or its Affiliates; or (vii) to any potential Permitted Transferee in connection with a proposed Transfer
of the Membership Interest of such Member in accordance with this Agreement, as long as such potential Transferee shall have agreed
to be bound by the provisions of this Section 10.01 as if a Member; provided, that in the case of clause (i), (ii) or
(iii), such Member shall notify the Company and the other Member of the proposed disclosure as far in advance of such disclosure
as practicable (but in no event make any such disclosure before notifying the Company and the other Member) and use reasonable
efforts to ensure that any Confidential Information so disclosed is accorded confidential treatment satisfactory to the Company
and the other Member, when and if available.

 

(c)            The
restrictions of Section 10.01 shall not apply to Confidential Information that: (i) is or becomes generally available
to the public other than as a result of a disclosure by such Member or its Affiliate or Representative in violation of this Agreement;
(ii) is or has been independently developed or conceived by such Member or its Affiliate without use of Confidential Information;
or (iii) becomes available to such Member or any of its Affiliates or Representatives on a non-confidential basis from a
source other than the Company, the other Member or any of their respective Representatives, provided, that such source
is not known by the receiving Member to be bound by a confidentiality agreement regarding the Company.

 

    32 

     

    

 

(d)            The
obligations of each Member under this Section 10.01 shall survive for so long as such Member or its Permitted Transferee
remains a Member, and thereafter for 5 years following the earlier of (i) the termination, dissolution, liquidation and winding
up of the Company and (ii) such Member's or its Permitted Transferee’s Transfer of its Membership Interest.

 

Section 10.02          Change
of Control Notice. In the event of a Change of Control of a Member, such Member shall
promptly, but not later than 3 Business Days following such Change of Control, notify the other Member in writing thereof (a “Change
of Control Notice”), setting forth the date and identity of the party or parties that have acquired control of such
Member.

 

ARTICLE XI

Accounting; Tax Matters

 

Section 11.01         Financial
Statements. The Company shall furnish to each Member the following reports:

 

(a)            As
soon as available, and in any event within 75 days after the end of each Fiscal Year, audited consolidated balance sheets of the
Company as at the end of each such Fiscal Year and audited consolidated statements of income, cash flows and Members' equity for
such Fiscal Year, in each case setting forth in comparative form the figures for the previous Fiscal Year, accompanied by the
certification of independent certified public accountants of recognized national standing selected by the Board in accordance
with Section 7.05(d)(ix), certifying to the effect that, except as set forth therein, such financial statements have been
prepared in accordance with GAAP, applied on a basis consistent with prior years, and fairly present in all material respects
the financial condition of the Company as of the dates thereof and the results of their operations and changes in their cash flows
and Members' equity for the periods covered thereby.

 

(b)            As
soon as available, and in any event within 30 days after the end of each quarterly accounting period in each Fiscal Year (other
than the last fiscal quarter of the Fiscal Year), unaudited consolidated balance sheets of the Company as at the end of each such
fiscal quarter and for the current Fiscal Year to date and unaudited consolidated statements of income, cash flows and Members'
equity for such fiscal quarter and for the current Fiscal Year to date, in each case setting forth in comparative form the figures
for the corresponding periods of the previous fiscal quarter, all in reasonable detail and all prepared in accordance with GAAP,
consistently applied (subject to normal year-end audit adjustments and the absence of notes thereto), and certified by the principal
financial or accounting officer of the Company.

 

    33 

     

    

 

(c)            As
soon as available, and in any event within 30 days after the end of each monthly accounting period in each fiscal quarter (other
than the last month of the fiscal quarter), unaudited consolidated balance sheets of the Company as at the end of each such monthly
period and for the current Fiscal Year to date and unaudited consolidated statements of income, cash flows and Members' equity
for each such monthly period and for the current Fiscal Year to date, all in reasonable detail and all prepared in accordance
with GAAP, consistently applied (subject to normal year-end audit adjustments and the absence of notes thereto).

 

Section 11.02        Inspection
Rights. Subject to Section 10.01, upon reasonable notice from a Member, the Company
shall afford such Member and its Representatives access during normal business hours to (i) the Company’s properties;
(ii) the corporate, financial and similar records, reports and documents of the Company, including all books and records,
minutes of proceedings, internal management documents, reports of operations, reports of adverse developments, copies of any management
letters and communications with Members, and to permit each Member and its Representatives to examine such documents and make
copies thereof or extracts therefrom; and (iii) any Officers, senior employees and accountants of the Company, and to afford
each Member and its Representatives the opportunity to discuss and advise on the affairs, finances and accounts of the Company
with such Officers, senior employees and accountants (and the Company hereby authorizes such employees and accountants to discuss
with such Member and its Representatives such affairs, finances and accounts); provided that (x) the requesting Member
shall bear its own expenses and all reasonable expenses incurred by the Company in connection with any inspection or examination
requested by such Member pursuant to this Section 11.02 and (y) if the Company provides or makes available any report
or written analysis to or for any Member pursuant to this Section 11.02, it shall promptly provide or make available such
report or analysis to or for the other Member.

 

Section 11.03        Income
Tax Status. It is the intent of the Company and the Members that the Company shall be
treated as a partnership for U.S., federal, state and local income tax purposes. Neither the Company nor any Member shall make
an election for the Company to be classified as other than a partnership pursuant to Treasury Regulations Section 301.7701-3.

 

Section 11.04        Tax
Matters Representative.

 

(a)            The
Members hereby appoint the Majority Member as the “partnership representative” as provided in Code Section 6223(a) (the
 “Tax Matters Representative”). The Tax Matters Representative shall appoint an individual (the “Designated
Individual”) meeting the requirements of Treasury Regulation Section 301.6223-1(c)(2) as the sole person authorized
to represent the Tax Matters Representative in audits and other proceedings governed by the partnership audit procedures set forth
in Subchapter C of Chapter 63 of the Code as amended by the BBA (the “Revised Partnership Audit Rules”). The
Tax Matters Representative shall resign if it is no longer a Member. In the event of the resignation of the Tax Matters Representative,
the Minority Member shall select a replacement. Any person appointed as the Designated Individual shall be subject to the requirements
and obligations of the Tax Matters Representative for purposes of this Section 11.04.

 

    34 

     

    

 

(b)            The
Tax Matters Representative is authorized and required to represent the Company in connection with all examinations of the Company's
affairs by Taxing Authorities, including resulting administrative and judicial proceedings, and to expend Company funds for professional
services and costs associated therewith. The Tax Matters Representative shall promptly notify the Minority Member in writing of
the commencement of any tax audit of the Company, upon receipt of a tax assessment and upon the receipt of a notice of final partnership
adjustment, and shall keep the Minority Member reasonably informed of the status of any tax audit and resulting administrative
and judicial proceedings. Without the consent of the Minority Member, the Tax Matters Representative shall not extend the statute
of limitations, file a request for administrative adjustment, file suit relating to any Company tax refund or deficiency or enter
into any settlement agreement relating to items of income, gain, loss or deduction of the Company with any Taxing Authority.

 

(c)            To
the extent permitted by applicable law and regulations, the Tax Matters Representative will cause the Company to annually elect
out of the Revised Partnership Audit Rules pursuant to Code Section 6221(b). For any year in which applicable law and
regulations do not permit the Company to elect out of the Revised Partnership Audit Rules, then within 45 days of any notice of
final partnership adjustment, unless the Members otherwise agree in writing, the Tax Matters Representative will cause the Company
to elect the alternative procedure under Code Section 6226, and furnish to the Internal Revenue Service and each Member during
the year or years to which the notice of final partnership adjustment relates a statement of the Member's share of any adjustment
set forth in the notice of final partnership adjustment.

 

(d)            Each
Member agrees that such Member shall not treat any Company item inconsistently on such Member's federal, state, foreign or other
income tax return with the treatment of the item on the Company's return. Any deficiency for taxes imposed on any Member (including
penalties, additions to tax or interest imposed with respect to such taxes and any taxes imposed pursuant to Code Section 6226)
will be paid by such Member and if required to be paid (and actually paid) by the Company, will be recoverable from such Member
as provided in Section 6.02(d).

 

(e)            The
Company will make an election under Code Section 754, if requested in writing by a Member.

 

(f)            The
provisions of this Section 11.04 and the obligations of a Member or former Member pursuant to Section 11.04 shall survive
the termination, dissolution, liquidation, and winding up of the Company and the Transfer of a Member's Membership Interest.

 

    35 

     

    

 

Section 11.05      Tax
Returns. At the expense of the Company, the Board (or any Officer that it may designate)
shall endeavor to cause the preparation and timely filing (including extensions) of all tax returns required to be filed by the
Company pursuant to the Code as well as all other required tax returns in each jurisdiction in which the Company owns property
or does business. The Partnership Representative shall use commercially reasonable efforts to provide the other Member, for its
review and comment, copies of all tax returns at least 30 days prior to the filing thereof. If the other Member shall object to
any item on any such tax return, the Partnership Representative shall consider such item in good faith. As soon as reasonably
possible after the end of each Fiscal Year, the Board or designated Officer will cause to be delivered to each Person who was
a Member at any time during such Fiscal Year, IRS Schedule K-1 to Form 1065 and such other information with respect
to the Company as may be necessary for the preparation of such Person's federal, state and local income tax returns for such Fiscal
Year.

 

Section 11.06        Company
Funds. All funds of the Company shall be deposited in its name, or in such name as may
be designated by the Board, in such checking, savings or other accounts, or held in its name in the form of such other investments
as shall be designated by the Board. The funds of the Company shall not be commingled with the funds of any other Person. All
withdrawals of such deposits or liquidations of such investments by the Company shall be made exclusively upon the signature or
signatures of such Officer or Officers as the Board may designate.

 

ARTICLE XII

Dissolution and Liquidation

 

Section 12.01        Events
of Dissolution. The Company shall be dissolved and its affairs wound up only upon the
occurrence of any of the following events:

 

(a)            The
unanimous determination of the Members to dissolve the Company;

 

(b)            The
Bankruptcy of a Member, unless within 30 days after the occurrence of such Bankruptcy, the other Members agree in writing to continue
the business of the Company;

 

(c)            The
sale, exchange, involuntary conversion or other disposition or transfer of all or substantially all the assets of the Company;
or

 

(d)            The
entry of a decree of judicial dissolution under § 18-802 of the Delaware Act.

 

Section 12.02      Effectiveness
of Dissolution. Dissolution of the Company shall be effective on the day on which the
event described in Section 12.01 occurs, but the Company shall not terminate until the winding up of the Company has been
completed, the assets of the Company have been distributed as provided in Section 12.03 and the Certificate of Formation
shall have been cancelled as provided in Section 12.04.

 

Section 12.03        Liquidation.
If the Company is dissolved pursuant to Section 12.01, the Company shall be liquidated
and its business and affairs wound up in accordance with the Delaware Act and the following provisions:

 

    36 

     

    

 

(a)            The
Board shall act as liquidator to wind up the Company (the “Liquidator”); provided that, notwithstanding
anything herein to the contrary, (i) if the Company is being dissolved pursuant to Section 12.01(b) based on the
Bankruptcy or a default by the Majority Member, the Minority Member shall act as Liquidator; or (ii) if the Company is being
dissolved pursuant to Section 12.01(b) based on the Bankruptcy or a default by the Minority Member, the Majority Member
shall act as Liquidator. The Liquidator shall have full power and authority to sell, assign and encumber any or all of the Company's
assets and to wind up and liquidate the affairs of the Company in an orderly and business-like manner; provided that, if
the Board is the Liquidator, it shall act in accordance with the governance provisions in ARTICLE VII until the winding up
occurs.

 

(b)            As
promptly as possible after dissolution and again after final liquidation, the Liquidator shall cause a proper accounting to be
made by a recognized firm of certified public accountants of the Company's assets, liabilities and operations through the last
day of the calendar month in which the dissolution occurs or the final liquidation is completed, as applicable.

 

(c)            The
Liquidator shall liquidate the assets of the Company and distribute the proceeds of such liquidation in the following order of
priority, unless otherwise required by mandatory provisions of Applicable Law:

 

(i)            first,
to the payment of all of the Company's debts and liabilities to its creditors (including Members, if applicable) and the expenses
of liquidation (including sales commissions incident to any sales of assets of the Company);

 

(ii)            second,
to the establishment of and additions to reserves that are determined by the Liquidator to be reasonably necessary for any contingent
unforeseen liabilities or obligations of the Company; and

 

(iii)            third,
to the Members in accordance with the positive balances in their respective Capital Accounts, as determined after taking into
account all Capital Account adjustments for the taxable year of the Company during which the liquidation of the Company occurs.

 

(d)            Notwithstanding
the provisions of Section 12.03(c) that require the liquidation of the assets of the Company, but subject to the order
of priorities set forth in Section 12.03(c), if upon dissolution of the Company the Liquidator reasonably determines that
an immediate sale of part or all of the Company's assets would be impractical or could cause undue loss to the Members, the Liquidator
may defer the liquidation of any assets except those necessary to satisfy Company liabilities and reserves, and may, upon unanimous
consent of the Members, distribute to the Members, in lieu of cash, as tenants in common and in accordance with the provisions
of Section 12.03(c), undivided interests in such Company assets as the Liquidator deems not suitable for liquidation. Any
such distribution in kind shall be subject to such conditions relating to the disposition and management of such properties as
the Liquidator deems reasonable and equitable and to any agreements governing the operation of such properties at such time. For
purposes of any such distribution, any property to be distributed will be valued at its Fair Market Value, as determined by the
Liquidator in good faith.

 

    37 

     

    

 

Section 12.04        Cancellation
of Certificate. Upon completion of the distribution of the assets of the Company as provided
in Section 12.03(c), the Company shall be terminated and the Liquidator shall cause the cancellation of the Certificate of
Formation in the State of Delaware and of all qualifications and registrations of the Company as a foreign limited liability company
in jurisdictions other than the State of Delaware and shall take such other actions as may be necessary to terminate the Company.

 

Section 12.05        Survival
of Rights, Duties and Obligations. Dissolution, liquidation, winding up or termination
of the Company for any reason shall not release any party from any Loss that at the time of such dissolution, liquidation, winding
up or termination already had accrued to any other party or thereafter may accrue in respect of any act or omission prior to such
dissolution, liquidation, winding up or termination. For the avoidance of doubt, none of the foregoing shall replace, diminish
or otherwise adversely affect any Member's right to indemnification pursuant to Section 8.03.

 

Section 12.06        Recourse
for Claims. Each Member shall look solely to the assets of the Company for all distributions
with respect to the Company, such Member's Capital Account, and such Member's share of Net Income, Net Loss and other items of
income, gain, loss and deduction, and shall have no recourse therefor (upon dissolution or otherwise) against the Liquidator or
any other Member.

 

ARTICLE XIII

Miscellaneous

 

Section 13.01        Expenses.
Except as otherwise expressly provided herein, all costs and expenses, including fees
and disbursements of counsel, financial advisors and accountants, incurred in connection with the preparation and execution of
this Agreement, or any amendment or waiver hereof, and the transactions contemplated hereby shall be paid by the party incurring
such costs and expenses.

 

Section 13.02         Further
Assurances. In connection with this Agreement and the transactions contemplated hereby,
the Company and each Member hereby agrees, at the request of the Company or any Member, to execute and deliver such additional
documents, instruments, conveyances and assurances and to take such further actions as may be required to carry out the provisions
hereof and give effect to the transactions contemplated hereby.

 

Section 13.03        Notices.
All notices, requests, consents, claims, demands, waivers and other communications hereunder
shall be in writing and shall be deemed to have been given: (a) when delivered by hand (with written confirmation of receipt);
(b) when received by the addressee if sent by a nationally recognized overnight courier (receipt requested); (c) on
the date sent by facsimile or email of a PDF document (with confirmation of transmission) if sent during normal business hours
of the recipient, and on the next Business Day if sent after normal business hours of the recipient; or (d) on the third
day after the date mailed, by certified or registered mail, return receipt requested, postage prepaid. Such communications must
be sent to the respective parties at the following addresses (or at such other address for a party as shall be specified in a
notice given in accordance with this Section 13.03):

 

    38 

     

    

 

	If
    to the Company:	TCO, LLC
		

        6740 Shady Oak Road

        Eden Prairie, MN 55344

        Attention: Legal Department

	 	 
	with
    a copy to:	Faegre Drinker Biddle & Reath LLP
		

        220
        Wells Fargo Center 90 S. Seventh Street

        Minneapolis, MN 55402

        E-mail: jon.zimmerman@faegredrinker.com

        Attention: Jon Zimmerman

	 	 
	If
    to Majority Member:	iMedia Brands, Inc.
		

        6740 Shady Oak Road

        Eden Prairie, MN 55344

        TPeterman@iMediaBrands.com

        Attention: Chief Executive Officer

	 	 
	with
    a copy to:	Faegre Drinker Biddle & Reath LLP
		

        220
        Wells Fargo Center 90 S. Seventh Street

        Minneapolis, MN 55402

        E-mail: jon.zimmerman@faegredrinker.com

        Attention: Jon Zimmerman

	 	 
	If
    to Minority Member:	LAKR ECOMM GROUP LLC
		

        1 Invicta Way (3069 Taft Street)

        Hollywood, FL 33021

        Attention: Manager

	 	 
	with
    a copy to:	Invicta Media Investments, LLC
		

        1
        Invicta Way (3069 Taft Street)

        Hollywood, FL 33021

        E-mail: adrucker@invictawatch.com

        Attention: Aline Drucker

 

Section 13.04        Headings.
The headings in this Agreement are inserted for convenience or reference only and are
in no way intended to describe, interpret, define or limit the scope, extent or intent of this Agreement or any provision of this
Agreement.

 

Section 13.05        Severability.
If any term or provision of this Agreement is held to be invalid, illegal or unenforceable
under Applicable Law in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision
of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction. Except as provided in
Section 8.04 or Error! Reference source not found., upon such determination that any term or other provision is invalid,
illegal or unenforceable, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original
intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby
be consummated as originally contemplated to the greatest extent possible.

 

    39 

     

    

 

Section 13.06        Entire
Agreement. This Agreement, together with the Certificate of Formation, constitutes the
sole and entire agreement of the parties to this Agreement with respect to the subject matter contained herein and therein, and
supersedes all prior and contemporaneous understandings, agreements, representations and warranties, both written and oral, with
respect to such subject matter.

 

Section 13.07        Successors
and Assigns. Subject to the restrictions on Transfers set forth herein, this Agreement
shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, executors, administrators,
successors and permitted assigns. This Agreement may not be assigned by any Member except as permitted by this Agreement and any
assignment in violation of this Agreement shall be null and void.

 

Section 13.08        No
Third-Party Beneficiaries. Except as provided in ARTICLE VIII, which shall be for
the benefit of and enforceable by Covered Persons as described therein, this Agreement is for the sole benefit of the parties
hereto (and their respective heirs, executors, administrators, successors and permitted assigns) and nothing herein, express or
implied, is intended to or shall confer upon any other Person, including any creditor of the Company, any legal or equitable right,
benefit or remedy of any nature whatsoever under or by reason of this Agreement.

 

Section 13.09       Amendment.
No provision of this Agreement may be amended or modified except by an instrument in
writing executed by Members holding at least two thirds of the Percentage Interests. Any such written amendment or modification
will be binding upon the Company and each Member. Notwithstanding the foregoing, amendments to Schedule A hereto that are
necessary to reflect any new issuance or Transfer of Membership Interests in accordance with this Agreement may be made by the
Board without the consent of or execution by the Members.

 

Section 13.10        Waiver.
No waiver by any party of any of the provisions hereof shall be effective unless explicitly
set forth in writing and signed by the party so waiving. No waiver by any party shall operate or be construed as a waiver in respect
of any failure, breach or default not expressly identified by such written waiver, whether of a similar or different character,
and whether occurring before or after that waiver. No failure to exercise, or delay in exercising, any right, remedy, power or
privilege arising from this Agreement shall operate or be construed as a waiver thereof, nor shall any single or partial exercise
of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other
right, remedy, power or privilege. For the avoidance of doubt, nothing contained in this Section 13.10 shall diminish any
of the explicit and implicit waivers described in this Agreement, including in Section 13.13 hereof.

 

Section 13.11        Governing
Law. All issues and questions concerning the application, construction, validity, interpretation
and enforcement of this Agreement shall be governed by and construed in accordance with the internal laws of the State of Delaware,
without giving effect to any choice or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction)
that would cause the application of laws of any jurisdiction other than those of the State of Delaware.

 

    40 

     

    

 

Section 13.12        Submission
to Jurisdiction. The parties hereby agree that any suit, action or proceeding seeking
to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated
hereby, whether in contract, tort or otherwise, shall be brought in the United States District Court for the District of Delaware
or in the Court of Chancery of the State of Delaware (or, if such court lacks subject matter jurisdiction, in the Superior Court
of the State of Delaware), so long as one of such courts shall have subject matter jurisdiction over such suit, action or proceeding,
and that any case of action arising out of this Agreement shall be deemed to have arisen from a transaction of business in the
State of Delaware. Each of the parties hereby irrevocably consents to the jurisdiction of such courts (and of the appropriate
appellate courts therefrom) in any such suit, action or proceeding and irrevocably waives, to the fullest extent permitted by
law, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any
such court or that any such suit, action or proceeding that is brought in any such court has been brought in an inconvenient form.
Service of process, summons, notice or other document by registered mail to the address set forth in Section 13.03 shall
be effective service of process for any suit, action or other proceeding brought in any such court.

 

Section 13.13        Waiver
of Jury Trial. Each party hereto hereby acknowledges and agrees that any controversy
that may arise under this Agreement is likely to involve complicated and difficult issues and, therefore, each such party irrevocably
and unconditionally waives any right it may have to a trial by jury in respect of any legal action arising out of or relating
to this Agreement or the transactions contemplated hereby.

 

Section 13.14        Equitable
Remedies. Each party hereto acknowledges that a breach or threatened breach by such party
of any of its obligations under this Agreement would give rise to irreparable harm to the other parties, for which monetary damages
would not be an adequate remedy, and hereby agrees that in the event of a breach or a threatened breach by such party of any such
obligations, each of the other parties hereto shall, in addition to any and all other rights and remedies that may be available
to them in respect of such breach, be entitled to equitable relief, including a temporary restraining order, an injunction, specific
performance and any other relief that may be available from a court of competent jurisdiction (without any requirement to post
bond).

 

Section 13.15        Remedies
Cumulative. Except as expressly provided herein to the contrary, the rights and remedies
under this Agreement are cumulative and are in addition to and not in substitution for any other rights and remedies available
at law or in equity or otherwise.

 

Section 13.16        Counterparts.
This Agreement may be executed in counterparts, each of which shall be deemed an original,
but all of which together shall be deemed to be one and the same agreement. A signed copy of this Agreement delivered by facsimile,
e-mail or other means of Electronic Transmission shall be deemed to have the same legal effect as delivery of an original signed
copy of this Agreement.

 

[signature
page follows]

 

    41 

     

    

 

IN WITNESS WHEREOF, the parties hereto
have caused this Agreement to be executed as of the date first written above by their respective officers thereunto duly authorized.

 

	 	The
    Company:
	 	TCO,
    LLC
	 	 
	 	By:
    	/s/
    Tim Peterman
	 	Name:
    Tim Peterman
	 	Title:
    Manager
	 	 
	 	The
    Members:
	 	IMEDIA
    BRANDS, INC.
	 	 
	 	By:	/s/
    Tim Peterman
	 	Name:
    Tim Peterman
	 	Title:
    CEO
	 	 
	 	LAKR
    ECOMM GROUP LLC
	 	 
	 	By:
    	/s/
    Eyal Lalo
	 	Name:
    Eyal Lalo
	 	Title:
    Manager
	 	 

 

    42 

     

    

 

 

Schedule
A

 

MEMBERS SCHEDULE

 

	Member
    Name and Address	Percentage
    Interest	Capital
    Contributions
	iMedia Brands, Inc.

        6740 Shady Oak Road, Eden

        Prairie, Minnesota
	51%	Certain
                                         assets, including

                                                                                inventory
                                         and access to a line

                                                                                of
                                         credit, having an aggregate

                                                                                value
                                         of $3,570,000

	LAKR Ecomm Group LLC

        1 Invicta Way (3069 Taft

        Street) Hollywood, FL 33021
	49%	Certain
                                         assets, including

                                                                                inventory
                                         and cash, having a

                                                                                net
                                         aggregate value of

                                                                                $3,430,000

	Total:	100%	 

 

    43Exhibit 10.2

Execution
Version

 

CONTRIBUTION AGREEMENT

 

This Contribution Agreement (this “Agreement”),
dated as of February 5, 2021, is entered into between iMedia Brands, Inc., a Minnesota corporation (“Transferor”),
and TCO, LLC, a Delaware limited liability company (“Transferee”).

 

RECITALS

 

WHEREAS, Transferor wishes to transfer and
assign to Transferee, and Transferee wishes to accept and assume from Transferor, the rights and obligations of Transferor to the
Contributed Assets (as defined herein) and the Assumed Liabilities (as defined herein), in exchange for an equity interest in Transferee,
as further described and subject to the terms and conditions set forth herein and in the Limited Liability Company Agreement of
Transferee dated as of the date hereof (as amended, modified or supplemented, the “TCO Operating Agreement”);
and

 

NOW, THEREFORE, in consideration of the
mutual covenants and agreements hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows:

 

ARTICLE I

CONTRIBUTIONS

 

Section 1.01     Contribution
of Assets. Subject to the terms and conditions set forth herein, Transferor hereby contributes, transfers, assigns, conveys
and delivers to Transferee, and Transferee does hereby accept and acquire from Transferor, all of Transferor’s right, title
and interest in and to the assets set forth on Schedule 1.01 (collectively, the “Contributed Assets”),
free and clear of any security interest, pledge, lien, charge, mortgage, claim or other encumbrance (each, an “Encumbrance”)
other than those Encumbrances set forth on Schedule 1.01 (collectively, “Permitted Encumbrances”).

 

Section 1.02     Assumption
of Liabilities. Subject to the terms and conditions set forth herein, Transferee hereby assumes and agrees to pay, perform
and discharge all liabilities and obligations of Transferor arising under the Contributed Assets after the Closing (as defined
herein), and are not attributable to any breach, default or violation on or before the Closing (collectively, the “Assumed
Liabilities”). Other than the Assumed Liabilities, Transferee shall not assume any liabilities or obligations of Transferor
or its affiliates of any kind, whether known or unknown, contingent, matured or otherwise, whether currently existing or hereinafter
created.

 

Section 1.03     Consideration. In
consideration for the Contributed Assets, Transferee agrees to issue to Transferor a fifty-one percent (51%) Percentage Interest
(as defined in the TCO Operating Agreement) in Transferee (the “Company Interest”), free and clear of all Encumbrances
other than as imposed by the TCO Operating Agreement or applicable securities laws. Upon issuance by Transferee of the Company
Interest to Transferor, the Company Interest shall be duly authorized and validly issued.

 

ARTICLE II

Closing

 

Section 2.01     Closing.
The closing of the transactions contemplated by this Agreement (the “Closing”) shall take place simultaneously
with the execution of this Agreement on the date hereof (the “Closing Date”) remotely by exchange of documents
and signatures (or their electronic counterparts).

 

Section 2.02     Closing
Deliveries. At the Closing:

 

(a)           Transferor
shall deliver to Transferee (i) fully executed documents of conveyance to effect the contribution of the Contributed Assets
to Transferee, each in a form that is reasonably acceptable to Transferee, and (ii) an executed counterpart of its signature
page to the TCO Operating Agreement , each in the form provided by Transferee to Transferor.

 

    

     

    

 

(b)           Transferee
shall deliver to Transferor (i) a certificate evidence reasonably satisfactory to Transferor of the issuance of the Company
Interest to Transferor and (ii) a fully executed copy of the TCO Operating Agreement.

 

ARTICLE III

Representations and warranties of TRANSFEROR

 

Transferor represents and warrants to Transferee
that the statements contained in this Article III are true and correct as
of the date hereof.

 

Section 3.01     Organization
and Qualification of Transferor. Transferor is a corporation duly organized, validly existing and in good standing under the
laws of the state of Minnesota and has full corporate power and authority to own, operate or lease the assets now owned, operated
or leased by it, including the Contributed Assets, and to carry on its business as currently conducted. Transferor is duly licensed
or qualified to do business and is in good standing in each jurisdiction in which the ownership or use of the Contributed Assets
or the conduct of its business as currently conducted makes such licensing or qualification necessary, except where the failure
to be so licensed, qualified or in good standing would not, individually or in the aggregate, have a material adverse effect on
the Contributed Assets or Transferor’s ability to consummate the transactions contemplated under this Agreement, the TCO
Operating Agreement and the other documents and agreements being executed by Transferor in connection with the consummation of
the transactions contemplated by this Agreement (collectively, the “Transaction Agreements”).

 

Section 3.02     Authority
of Transferor; Enforceability. Transferor has full corporate power and authority to enter into the Transaction Agreements and
the TCO Operating Agreement, to carry out its obligations thereunder and to consummate the transactions contemplated thereby. The
execution, delivery and performance by Transferor of the Transaction Agreements and the consummation of the transactions contemplated
thereby have been duly authorized by all requisite entity action on the part of Transferor. The Transaction Agreements have been
duly executed and delivered by Transferor, and (assuming due authorization, execution and delivery by any other parties thereto)
constitute legal, valid and binding obligations of Transferor, enforceable against it in accordance with their respective terms,
except as may be limited by any bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other similar laws
affecting the enforcement of creditors’ rights generally or by general principles of equity.

 

Section 3.03     No
Conflicts; Consents. The execution, delivery and performance by Transferor of the Transaction Agreements, and the consummation
of the transactions contemplated thereby, do not and will not: (a) violate or conflict with the articles of incorporation,
by-laws or other organizational documents of Transferor or its affiliates; (b) violate or conflict with any judgment, order,
decree or law applicable to Transferor, any of its affiliates, or the Contributed Assets; (c) except as would not, individually
or in the aggregate, have a material adverse effect on the Contributed Assets or Transferor’s ability to consummate the transactions
contemplated by the Transaction Agreements on a timely basis, conflict with, or result in (with or without notice or lapse of time
or both) any violation of, or default under, or give rise to a right of termination, acceleration or modification of any obligation
or loss of any benefit under any contract or other instrument to which Transferor or its affiliates is a party or otherwise bound
or to which any of the Contributed Assets are subject; or (d) result in the creation or imposition of any Encumbrance other
than Permitted Encumbrances on the Contributed Assets. No consent, approval, waiver or authorization is required to be obtained
by Transferor or its affiliates from any person in connection with the execution, delivery and performance by Transferor of the
Transaction Agreements or the consummation of the transactions contemplated thereby, except such consents, approvals, waivers or
authorizations which would not, individually or in the aggregate, have a material adverse effect on the Contributed Assets or Transferor’s
ability to consummate the transactions contemplated thereby on a timely basis.

 

    2

     

    

 

Section 3.04     Title
to Contributed Assets. Transferor has good and valid title to or, in the case of leased or subleased assets, a valid leasehold
interest in all of the Contributed Assets, free and clear of Encumbrances other than Permitted Encumbrances. By virtue of the Transaction
Agreements delivered at the Closing by Transferor (and assuming due authorization, execution and delivery by the other parties
thereto), Transferee will obtain good and valid title to or a valid leasehold interest in the Contributed Assets, free and clear
of all Encumbrances other than Permitted Encumbrances.

 

Section 3.05     Compliance
with Laws. Transferor has complied, and is now complying, in all material respects with all federal, state and local laws and
regulations applicable to Transferor’s conduct of business as it relates to ownership and use of the Contributed Assets.

 

Section 3.06     Legal
Proceedings. There is no claim, action, suit, proceeding or governmental investigation (“Action”) of any
nature pending or, to Transferor’s knowledge, threatened against or by Transferor (a) relating to or affecting the Contributed
Assets or the Assumed Liabilities; or (b) that challenges or seeks to prevent, enjoin or otherwise delay the transactions
contemplated by the Transaction Agreements. To Transferor’s knowledge, no event has occurred or circumstances exist that
could reasonably be expected to give rise to, or serve as a basis for, any such Action.

 

Section 3.07     Intellectual
Property.

 

(a)           “Intellectual
Property” means any and all of the following in any jurisdiction throughout the world: (i) trademarks and service
marks, including all applications and registrations and the goodwill connected with the use of and symbolized by the foregoing;
(ii) copyrights, including all applications and registrations related to the foregoing; (iii) trade secrets and confidential
know-how; (iv) patents and patent applications; (v) websites and internet domain name registrations; and (vi) other
intellectual property and related proprietary rights, interests and protections (including all rights to sue and recover and retain
damages, costs and attorneys' fees for past, present and future infringement and any other rights relating to any of the foregoing).

 

(b)           Schedule
1.01 includes all Intellectual Property included in the Contributed Assets (collectively, the “Contributed IP”).
Except as set forth on Schedule 1.01, the Contributed IP includes all Intellectual Property rights necessary for the use
of the Contributed Assets as currently used or operated by Transferor. Transforor owns or has adequate, valid and enforceable rights
to use all the Contributed IP, free and clear of all Encumbrances other than Permitted Encumbrances. Neither Transferor nor its
affiliates is bound by any outstanding judgment, injunction, order or decree restricting the use of the Contributed IP, or restricting
the licensing thereof to any person. With respect to any registered Intellectual Property listed on Schedule 1.01, (i) all
such Intellectual Property is valid, subsisting and in full force and effect and (ii) Transferor has paid all maintenance
fees and made all filings required to maintain Transferor’s ownership thereof. For all such registered Intellectual Property,
Schedule 1.01 lists (x) the jurisdiction where the application or registration is located, (y) the application
or registration number, and (z) the application or registration date.

 

(c)           The
prior and current use of the Contributed IP by Transferor and its affiliates has not and does not infringe, violate, dilute or
misappropriate the Intellectual Property of any person and there are no claims pending or threatened by any person with respect
to the ownership, validity, enforceability, effectiveness or use of the Contributed IP. No person is infringing, misappropriating,
diluting or otherwise violating any of the Contributed IP, and neither Transferor nor any of its affiliates has made or asserted
any claim, demand or notice against any person alleging any such infringement, misappropriation, dilution or other violation.

 

    3

     

    

 

Section 3.08     Securities
Matters. Transferor is acquiring the Company Interest solely for its own account for investment purposes and not
with a view to, or for offer or sale in connection with, any distribution thereof. Transferor acknowledges that the Company
Interest is not registered under the Securities Act of 1933 (the “Securities Act”), or any state securities
laws, and that the Company Interest may not be transferred or sold except pursuant to the registration provisions of the Securities
Act or pursuant to an applicable exemption therefrom and subject to state securities laws and regulations, as applicable. Transferor
is able to bear the economic risk of holding the Company Interest for an indefinite period (including total loss of its investment),
and has sufficient knowledge and experience in financial and business matters so as to be capable of evaluating the merits and
risk of its investment.

 

ARTICLE IV

Representations and warranties of TRANSFEREE

 

Transferee represents and warrants to Transferor
that the statements contained in this Article IV are true and correct as
of the date hereof.

 

Section 4.01     Organization.
Transferee is a limited liability company duly organized, validly existing and in good standing under the laws of the state of
Delaware.

 

Section 4.02     Authority;
Enforceability. Transferee has full limited liability company power and authority to enter into the Transaction Agreements
to which it is a party, to carry out its obligations thereunder and to consummate the transactions contemplated thereby. The execution,
delivery and performance by Transferee of the Transaction Agreements to which it is a party and the consummation of the transactions
contemplated thereby have been duly authorized by all requisite entity action on the part of Transferee and, if required, its affiliates.
The Transaction Agreements to which Transferee is a party have been duly executed and delivered by Transferee, and (assuming due
authorization, execution and delivery by the other parties thereto) constitute legal, valid and binding obligations of Transferee,
enforceable against it in accordance with their respective terms, except as may be limited by any bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance or other similar laws affecting the enforcement of creditors’ rights generally or by general
principles of equity.

 

Section 4.03     No
Conflicts; Consents. The execution, delivery and performance by Transferee of the Transaction Agreements to which it is a party,
and the consummation of the transactions contemplated thereby, do not and will not: (a) violate or conflict with the certificate
of formation, TCO Operating Agreement or other organizational documents of Transferee; (b) violate or conflict with any provision
of law or governmental order applicable to Transferee; or (c) conflict with, or result in (with or without notice or lapse
of time or both) any violation of, or default under, or give rise to a right of termination, acceleration or modification of any
obligation or loss of any benefit under any contract or other instrument to which Transferee is a party. No consent, approval,
waiver or authorization is required to be obtained by Transferee from any person (including any governmental authority) in connection
with the execution, delivery and performance by Transferee of the Transaction Agreements to which it is a party and the consummation
of the transactions contemplated thereby.

 

Section 4.04     Legal
Proceedings. There is no Action of any nature pending or, to Transferee’s knowledge, threatened against or by Transferee
that challenges or seeks to prevent, enjoin or otherwise delay the transactions contemplated by the Transaction Agreements to which
Transferee is a party. To Transferee’s knowledge, no event has occurred or circumstances exist that may give rise to, or
serve as a basis for, any such Action.

 

    4

     

    

 

ARTICLE V

Covenants

 

Section 5.01     Public
Announcements. No party shall cause the publication of any press release or public announcement regarding this Agreement or
the transactions contemplated hereby without the prior written consent of the other party (which consent shall not be unreasonably
withheld or delayed), except as may be required by applicable law, in which case the party required to publish such press release
or public announcement shall allow the other party a reasonable opportunity to comment on such press release or public announcement
in advance of such publication, to the extent practicable.

 

Section 5.02     Transfer
Taxes. All transfer, documentary, sales, use, stamp, registration, value added and other such taxes and fees (including any
penalties and interest) incurred in connection with this Agreement and the documents to be delivered hereunder shall be borne and
paid by Transferor, when due. Transferor shall, at its own expense, timely file any tax return or other document with respect to
such taxes or fees (and Transferee shall cooperate with respect thereto as necessary).

 

Section 5.03     Further
Assurances. Following the Closing, each of the parties hereto shall execute and deliver such additional documents, instruments,
conveyances and assurances and take such further actions as may be reasonably required to carry out the provisions hereof and give
effect to the transactions contemplated by this Agreement and the other Transaction Agreements.

 

ARTICLE VI

Miscellaneous

 

Section 6.01     Expenses.
All costs and expenses incurred in connection with the preparation and execution of this Agreement and the transactions contemplated
hereby, shall be paid by the party incurring such costs and expenses.

 

Section 6.02     Notices.
All notices, requests, consents, claims, demands, waivers and other communications hereunder shall be in writing and shall be deemed
to have been given: (a) when delivered by hand (with written confirmation of receipt); (b) when received by the addressee
if sent by a nationally recognized overnight courier (receipt requested); (c) on the date sent by facsimile or email of a
..pdf document (with confirmation of transmission) if sent during normal business hours of the recipient, and on the next business
day if sent after normal business hours of the recipient; or (d) on the third day after the date mailed, by certified or registered
mail, return receipt requested, postage prepaid. Such communications must be sent to the respective parties at the following addresses
(or at such other address for a party as shall be specified in a notice given in accordance with this Section 6.02):

 

	If to Transferor:	iMedia Brands, Inc.
 6740 Shady Oak Road
 Eden Prairie, MN 55344
 TPeterman@iMediaBrands.com
 Attention: Chief Executive Officer

                                                                                 

	If to Transferee:	
        TCO, LLC

        6740 Shady Oak Road

        Eden Prairie, MN 55344

         

        Attention: Legal Department

 

Section 6.03     Survival.
Subject to the limitations and other provisions of this Agreement, the representations, warranties, covenants and other agreements
of the parties contained herein shall survive the Closing indefinitely.

 

Section 6.04     Headings;
Interpretation. The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.
For purposes of this Agreement, (a) the words “include,” “includes” and “including” shall
be deemed to be followed by the words “without limitation;” (b) the word “or” is not exclusive; and
(c) the words “herein,” “hereof,” “hereby,” “hereto” and “hereunder”
refer to this Agreement as a whole. Unless the context otherwise requires, references herein: (x) to Articles, Sections and
Disclosure Schedules mean the Articles and Sections of, and Disclosure Schedules attached to, this Agreement; (y) to an agreement,
instrument or other document means such agreement, instrument or other document as amended, supplemented and modified from time
to time to the extent permitted by the provisions thereof, and (z) to a statute means such statute as amended from time to
time and includes any successor legislation thereto and any regulations promulgated thereunder. This Agreement shall be construed
without regard to any presumption or rule requiring construction or interpretation against the party drafting an instrument
or causing any instrument to be drafted. The Disclosure Schedules referred to herein shall be construed with, and as an integral
part of, this Agreement to the same extent as if they were set forth verbatim herein.

 

    5

     

    

 

Section 6.05     Severability.
If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality
or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term
or provision in any other jurisdiction.

 

Section 6.06     Entire
Agreement. This Agreement and the other Transaction Agreements constitute the sole and entire agreement of the parties hereto
with respect to the subject matter contained herein and therein, and supersede all prior and contemporaneous understandings and
agreements, both written and oral, with respect to such subject matter.

 

Section 6.07     Successors
and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective
successors and permitted assigns. This Agreement and the rights and obligations hereunder may not be assigned by a party hereto
without the written consent of the other party hereto.

 

Section 6.08     No
Third-Party Beneficiaries. This Agreement is for the sole benefit of the parties hereto and their respective successors and
permitted assigns and nothing herein, express or implied, is intended to or shall confer upon any other person any legal or equitable
right, benefit or remedy of any nature whatsoever.

 

Section 6.09     Amendment
and Modification. This Agreement, including any Disclosure Schedule, may only be amended, modified or supplemented by an agreement
in writing signed by each party hereto.

 

Section 6.10     Waiver.
No waiver by a party of any of the provisions hereof shall be effective unless explicitly set forth in writing and signed by the
party so waiving. No waiver by a party shall operate or be construed as a waiver in respect of any failure, breach or default not
expressly identified by such written waiver, whether of a similar or different character, and whether occurring before or after
that waiver. No failure to exercise, or delay in exercising, any right, remedy, power or privilege arising from this Agreement
shall operate or be construed as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege
hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.

 

Section 6.11     Governing
Law. This Agreement (and any claims, causes of action or disputes that may be based upon, arise out of or relate to the transactions
contemplated hereby, to the negotiation, execution or performance hereof, or to the inducement of any party to enter herein, whether
for breach of contract, tortious conduct or otherwise and whether predicated on common law, statute, or otherwise) shall in all
respects be governed by and construed in accordance with the internal laws of the State of Delaware without giving effect to any
choice or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction).

 

Section 6.12     Specific
Performance. The parties agree that irreparable damage would occur if any provision of this Agreement were not performed in
accordance with the terms hereof and that the parties shall be entitled to specific performance of the terms hereof, in addition
to any other remedy to which they are entitled at law or in equity. Each party hereto (a) agrees that it shall not oppose
the granting of such specific performance or relief and (b) hereby irrevocably waives any requirement for the security or
posting of any bond in connection with such relief.

 

    6

     

    

 

Section 6.13     Counterparts.
This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed
to be one and the same agreement. A signed copy of this Agreement delivered by facsimile, email or other means of electronic transmission
shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

 

[signature
page follows]

 

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IN WITNESS WHEREOF, the parties hereto have
caused this Agreement to be executed as of the date first written above by their respective officers thereunto duly authorized.

 

	 	IMEDIA BRANDS, INC.
	 	 
	 	 
	 	By: 	/s/ Tim Peterman

	 	 	Tim Peterman, CEO
	 	 
	 	 
	 	 
	 	TCO, LLC
	 	 
	 	 
	 	By: 	/s/ Tim Peterman

	 	Name: 	Tim Peterman
	 	Title: 	Manager

 

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SCHEDULE 1.01

 

CONTRIBUTED ASSETS

 

		1.	Inventory with a Carrying Value of $3,570,000, which may include but is not limited to apparel,
fashion accessories, home goods, electronics, health & beauty, kitchen & food, variety of consumer goods.

 

    9

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