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exhibit101stipplandocume

                                                                   Exhibit 10.1                            BED BATH & BEYOND INC.                         SHORT-TERM INCENTIVE PLAN                                                                        Effective July 16, 2020   Section 1.  Purpose.         The  compensation  policies  of  Bed  Bath  &  Beyond  Inc.,  a  New  York  corporation  (the  “Company”), are intended to support the Company’s overall objective of enhancing shareholder  value.  In furtherance of this philosophy, the Bed Bath & Beyond Inc. Short-Term Incentive Plan  (the  “Plan”)  is  designed  to  provide  incentives  for  business  performance,  reward  contributions  towards goals consistent with the Company’s business strategy and enable the Company to attract  and retain highly qualified Corporate Officers and other Eligible Employees.   Section 2.  Definitions.         The terms used in the Plan include the feminine as well as the masculine gender and the  plural as well as the singular, as the context in which they are used requires. The following terms,  unless the context requires otherwise, are defined as follows:         “409A Covered Bonus” has the meaning set forth in Section 7(k)(ii) of the Plan.         “Affiliate”  means  each  of  the  following:  (a)  any  Subsidiary;  (b)  any  Parent;  (c)  any  corporation,  trade  or  business  (including,  without  limitation,  a  partnership  or  limited  liability  company)  that  is  directly  or  indirectly  controlled  fifty  percent  (50%)  or  more  (whether  by  ownership of stock, assets or an equivalent ownership interest or voting interest) by the Company  or one of its Affiliates;  (d) any  corporation, trade or business (including, without  limitation, a  partnership or limited liability company) that directly or indirectly controls fifty percent (50%) or  more (whether by ownership of stock, assets or an equivalent ownership interest or voting interest)  of the Company; and (e) any other entity in which the Company or any of its Affiliates has  a  material equity interest and that is designated as an “Affiliate” by resolution of the Committee.         “Board” means the Board of Directors of the Company.         “Bonus”  means  the  incentive  compensation  payable  in  cash,  as  determined  by  the  Committee under Section 4 of the Plan.         “Cause” means, with respect to a Participant’s Termination of Employment, the following:  (a) in the case where there is an employment agreement, severance agreement, change in control  agreement or similar agreement in effect between the Company or an Affiliate and the Participant  that  defines  “cause”  (or  words  or  a  concept  of  like  import),  “cause”  as  defined  under  such  agreement; provided, however, that with regard to any agreement under which the definition of  “cause” applies only on occurrence of a change in control, such definition of “cause” shall not  apply until a change in control actually takes place and then only with regard to a termination in  connection  therewith;  or  (b)  in  the  case  where  there  is  no  employment  agreement,  severance  agreement, change in control agreement or similar agreement in effect between the Company or  an Affiliate and the Participant (or where there is such an agreement but it does not define “cause”  (or  words  or  a  concept  of  like  import)),  termination  due  to  a  Participant’s  insubordination,      

 

dishonesty, fraud, incompetence, moral turpitude, willful misconduct, refusal to perform his or her  duties or responsibilities for any reason other than illness or incapacity or materially unsatisfactory  performance of his or her duties for the Company or an Affiliate, as determined by the Committee  in its sole discretion.         “Change in Control” means the occurrence of one or more of the following events:               (a)   any  “person”  as  such  term  is  used  in  Sections  13(d)  and  14(d)  of  the  Exchange Act (other than the Company, any trustee or other fiduciary holding securities under any  employee  benefit  plan  of  the  Company,  or  any  company  owned,  directly  or  indirectly,  by  the  shareholders of the Company in substantially the same proportions as their ownership of common  stock  of  the  Company),  becoming  the  beneficial  owner  (as  defined  in  Rule  13d-3  under  the  Exchange Act), directly or indirectly, of securities of the Company representing more than fifty  percent  (50%)  of  the  combined  voting  power  of  the  Company’s  then  outstanding  securities,  excluding a person that is an “affiliate” (as such term is used in the Exchange Act) of the Company  on the Effective Date, or any affiliate of any such person;               (b)   during any period of twelve (12) months, the majority of the Board consists  of individuals other than “Incumbent Directors,” which term means the members of the Board at  the beginning of such period, and any new director (other than a director designated by a person  who  has  entered  into  an  agreement  with  the  Company  to  effect  a  transaction  described  in  subsections (a), (c), or (d) or a director whose initial assumption of office occurs as a result of  either an actual or threatened election contest (as such term is used in Rule 14a-11 of Regulation  14A promulgated under the Exchange Act) or other actual or threatened solicitation of proxies or  consents  by  or  on  behalf  of  a  person  other  than  the  Board)  whose  election  by  the  Board  or  nomination for election by the Company’s shareholders was approved by a vote of a majority of  the directors who comprised the Incumbent Directors or whose election or nomination for election  was previously so approved;               (c)   upon the consummation of a merger or consolidation of the Company with  any  other  corporation,  other  than  a  merger  or  consolidation  which  would  result  in  the  voting  securities of the Company outstanding immediately prior thereto continuing to represent (either by  remaining outstanding or by being converted into voting securities of the surviving entity) fifty  percent (50%) or more of the combined voting power of the voting securities of the Company or  such  surviving  entity  outstanding  immediately  after  such  merger  or  consolidation;  provided,  however, that a merger or consolidation effected to implement a recapitalization of the Company  (or similar  transaction) in  which  no  person  (other  than  those  covered  by  the  exceptions  in  (a)  above) acquires more than fifty percent (50%) of the combined voting power of the Company’s  then outstanding securities shall not constitute a Change in Control of the Company;               (d)   upon approval by the shareholders of the Company, the Company adopts  any plan of liquidation providing for the distribution of all or substantially all its assets, provided  that this paragraph (d) shall not constitute a Change in Control with respect to a 409A Covered  Bonus; or               (e)   upon the consummation of a sale or disposition by the Company of all or  substantially all of the Company’s assets other than the sale or disposition of all or substantially                                        2     

 

all of the assets of the Company to a person or persons who beneficially own, directly or indirectly,  at least fifty percent (50%) or more of the combined voting power of the then outstanding voting  securities of the Company at the time of the sale.         Notwithstanding the foregoing, with respect to a Bonus provides for payment or settlement  upon a Change in Control and that constitutes a 409A Covered Bonus, a transaction will not be  deemed a Change in Control unless the transaction qualifies as a change in control event within  the meaning of Code Section 409A.         Further and for the avoidance of doubt, a transaction will not constitute a Change in Control  if: (i) its sole purpose is to change the state of the Company’s incorporation, or (ii) its sole purpose  is to create a holding company that will be owned in substantially the same proportions by the  persons who held the Company’s securities immediately before such transaction.         “Code”  means  the  Internal  Revenue  Code  of  1986,  as  amended.  Any  reference  to  any  section  of  the  Code  shall  also  be  a  reference  to  any  successor  provision  and  any  Treasury  Regulation promulgated thereunder.         “Committee” means the Compensation Committee of the Board appointed from time to  time by the Board (or another committee or committees of the Board appointed for purposes of  administering  the  Plan).  Each  Committee  shall  be  comprised  of  two  or  more  non-employee  directors, each of whom is an “independent director” as defined and to the extent required under  the rules and regulations of the Nasdaq Stock Market or such other applicable securities exchange  on which the Company’s common stock is then listed, listed or any national securities exchange  system  upon  whose  system  the  Company’s  common  stock  is  then  quoted,  and,  as  may  be  applicable,  “independent”  as  provided  pursuant  to  rules  promulgated  by  the  Securities  and  Exchange Commission under The Dodd-Frank Wall Street Reform and Consumer Protection Act.         “Company” has the meaning set forth in Section 1 hereof, including any successors to the  Company by operation of law.         “Corporate Officer” means any Company employee who is subject to Section 16(b) of the  Exchange Act.         “Disability” (a) shall have the meaning given to such term in an employment agreement,  severance agreement, change in control agreement, or other similar agreement in effect between  the  Company  or  an  Affiliate  and  the  Participant  to  the  extent  that  “disability”  (or  words  or  a  concept  of  like  import)  is  defined  therein,  or  (b)  if  such  an  agreement  does  not  exist  or  if  “disability” is not defined in any such agreement, shall mean, unless otherwise determined by the  Committee at the time that a Bonus opportunity is granted, a Participant’s “disability” or term of  like import) as such term is defined in the long-term disability plan of the Company applicable to  such Participant or, in the absence of such a definition, the inability of a Participant to perform the  major duties of his or her occupation for at least ninety (90) days in any one-hundred eighty (180)- day period because of sickness or injury. Notwithstanding the foregoing, for Bonuses under the  Plan  that  provide  for  payments  that  are  triggered  upon  a  Disability  and  that  constitute  “non- qualified deferred compensation” pursuant to Code Section 409A, Disability shall mean that a  Participant is disabled under Code Section 409A(a)(2)(C)(i).                                        3     

 

      “Effective Date” means July 16, 2020.         “Eligible Employee” means each employee of the Company or an Affiliate, including each  Corporate Officer.         “Exchange Act” means the Securities Exchange Act of 1934, as amended.         “Good Reason” means, with respect to a Participant’s Termination of Employment, the  following: (a) in the case where there is an employment agreement, severance agreement, change  in control agreement or similar agreement in effect between the Company or an Affiliate and the  Participant that defines “good reason” (or words or a concept of like import), a termination due to  good reason (or words or a concept of like import); provided, however, that with regard to any  agreement under which the definition of “good reason” applies only on occurrence of a change in  control (including, without limitation, a Change in Control), such definition of “good reason” shall  not apply until a change in control (including, without limitation, a Change in Control) actually  takes place and then only with regard to a termination thereafter; or (b) if such an agreement does  not exist or if “good reason” is not defined in any such agreement, this term shall not apply to such  Participant for purposes of the Plan.         “Parent”  means  any  parent  corporation  of  the  Company  within  the  meaning  of  Code  Section 424(e).         “Participant” means a Corporate Officer or other Eligible Employee described in Section  3 of the Plan.         “Performance Period” means the period for which a Bonus may be made. Unless otherwise  specified by the Committee, the Performance Period shall be the Company’s fiscal year.         “Plan” has the meaning set forth in Section 1 hereof.         “Subsidiary”  means any  subsidiary  corporation  of the Company  within  the meaning  of  Code Section 424(f).         “Termination of Employment” means (a) a termination of employment (for reasons other  than a military or personal leave of absence granted by the Company) of a Participant from the  Company and its Affiliates, or (b) when an entity employing a Participant ceases to be an Affiliate,  unless the Participant otherwise is, or thereupon becomes, employed by the Company or another  Affiliate at the time the entity ceases to be an Affiliate.    Section 3.  Participation.         A Corporate Officer or other Eligible Employee designated by the Committee shall be a  Participant in the Plan and shall continue to be a Participant until advised or determined otherwise.   Section 4.  Bonuses.         (a)   Performance Measures and Goals. The Committee shall establish the performance  measures and goals for the earning of Bonuses based on a Performance Period applicable to each                                        4     

 

Participant or class of Participants in writing prior to the beginning of the applicable Performance  Period or, at such later date as determined by the Committee in its sole discretion, provided that  the outcome is substantially uncertain. The performance goals may be based upon the attainment  of specified levels of Company (or subsidiary, division or other operational unit of the Company)  performance either on an absolute basis or relative to the performance of other corporations and/or  on an individual Participant’s performance, in any event, as determined by the Committee in its  sole discretion.         (b)   Adjustments. In evaluating whether and to what extent a performance goal has been  satisfied with respect to a Performance Period, the Committee may, in its sole discretion, adjust  the performance goals to reflect, or disregard and exclude the impact of, unanticipated, external or  other items, events, occurrences or circumstances determined by the Committee, including, but  not limited to: (i) restructurings, discontinued operations, disposal of a business, extraordinary  items, and other unusual or non-recurring charges, events or circumstances, (ii) an event either not  directly related to the operations of the Company (or a subsidiary, division or other operational  unit of the Company) or not within the reasonable control of the Company’s management, (iii) the  operations of any business acquired by the Company (or a subsidiary, division or other operational  unit  of  the  Company),  (iv)  a  change  in  accounting  standards  required  by  generally  accepted  accounting principles, or (v) the effect of changes in laws or provisions affecting reported results.         (c)   Performance Evaluation. Within a reasonable time after the close of a Performance  Period,  the  Committee  shall  determine  whether  the  performance  goals  established  for  that  Performance  Period  have  been  met.  If  the  performance  goals  and  any  other  material  terms  established by the Committee have been satisfied, the Committee shall so certify in writing before  the applicable Bonus is paid to a Participant pursuant to Section 4(e).         (d)   Bonuses. If the Committee has made the written certification under Section 4(c) for  a  Performance  Period,  each  Participant  to  whom  the  certification  applies  shall  be  eligible  for  payment of a Bonus for the Performance Period. The amount of the Bonus paid to each Participant  shall be determined by the Committee. For any Performance Period, however, the Committee shall  retain the discretion to increase or decrease the amount of, or eliminate entirely, the Bonus to any  Participant based on its review of the performance goals for each Participant pursuant to Section  4(c) and the individual performance of such Participant.         (e)   Payment or Deferral of the Bonus.               (i)   Payment; Withholding. Subject to Section 4(e)(ii), the Company shall pay        the Bonus to the Participant following the Committee’s determination under Section 4(d)        of the amount of the Bonus, but in any event, within the two and one-half month period        following the end of the Performance Period. The Company shall have the right to deduct        from any Bonus any applicable income and employment taxes and any other amounts that        the Company is otherwise required or permitted to deduct.               (ii)  Deferral.  Subject  to  Section  7(k)  (regarding  Code  Section  409A)  and        subject to the Committee’s approval and applicable law, a Participant may request that        payment of a Bonus be deferred under a deferred compensation arrangement maintained        by  the  Company  by  making  a  deferral  election  prior  to,  or  as  permitted,  during  the                                        5     

 

Performance Period, pursuant to such rules and procedures as the Committee may establish  from time to time with respect to such arrangement.   (f)   Eligibility for Payments; Effect of Termination of Employment.         (i)   Continuous  Employment  Required. Except  as  otherwise  provided  in  this  Section 4(f), a Participant shall be eligible to receive a Bonus for a Performance Period  only if such Participant is employed by the Company continuously from the beginning of  the Performance Period through the date of payment of the Bonus.         (ii)  Termination of Employment. Unless an employment agreement, severance  agreement, change in control agreement, or other similar agreement in effect between the  Company or an Affiliate and a Participant provides for more favorable treatment, in the  event of a Termination of Employment, a Participant’s Bonus will be treated as set forth  below:               (A)   Voluntary Resignation Without Good Reason; For Cause. In the        event of a Participant’s Termination of Employment due to a voluntary resignation        without Good Reason or by the Company for Cause, in either case, prior to the date        of payment of any Bonus, the Participant shall forfeit such Bonus.               (B)   Death or Disability. In the event of a Participant’s Termination of        Employment due to death or Disability, the Participant will receive payment of (I)        any Bonus for a Performance Period that ended prior to the fiscal year in which the        Termination of Employment occurs, based on actual performance and payable at        the  time  set  forth  in  Section  4(e)(i),  and  (II)  if  the  date  of  the  Termination  of        Employment occurs within the last six (6) months of a Performance Period, any        Bonus for the Performance Period in which the termination date occurs, based on        actual performance and payable at the time set forth in Section 4(e)(i), prorated for        the number of full calendar months the Participant was employed by the Company        during the Performance Period. If the date of the Termination of Employment due        to death or Disability occurs within the first six (6) months of a Performance Period,        the  Participant  shall  forfeit  any  Bonus  for  the  Performance Period  in  which  the        termination date occurs.               (C)   Without Cause; For Good Reason. In the event of a Participant’s        Termination of Employment by the Company without Cause or by the Participant        for Good Reason, to the extent that the Participant timely executes, delivers, and        does not revoke a general waiver and release of claims in a form provided by the        Company (the “Release”), the Participant will receive payment of (I) any Bonus for        a Performance Period that ended prior to the fiscal year in which the Termination        of Employment occurs, based on actual performance and payable at the time set        forth  in  Section  4(e)(i),  and  (II)  if  the  date  of  the  Termination  of  Employment        occurs within the last six (6) months of a Performance Period, any Bonus for the        Performance  Period  in  which  the  termination  date  occurs,  based  on  actual        performance and payable at the time set forth in Section 4(e)(i), prorated for the        number  of  full  calendar  months  the Participant  was  employed  by  the  Company                                  6                               

 

            during the Performance Period. If the date of the Termination of Employment by              the Company without Cause or by the Participant for Good Reason occurs within              the first six (6) months of a Performance Period, the Participant shall forfeit any              Bonus for the Performance Period in which the termination date occurs.                     (D)   No  Duplication  of  Benefits.  For  the  avoidance  of  doubt,  if  a              Participant has an employment agreement, severance agreement, change in control              agreement, or other similar agreement in effect with the Company or an Affiliate              that addresses the treatment of the Participant’s Bonuses in the event of a particular              Termination of Employment, and either such agreement or the Plan provides for              more  favorable  treatment  with  respect  to  a  specific  type  of  Termination  of              Employment, the more favorable treatment (in such agreement or in the Plan) shall              control as to the Participant and such Bonus with respect to such Termination of              Employment; provided, however, that there will be no duplication of benefits (i.e.,              the Participant will not receive a Bonus payout for a Performance Period under both              the Plan and such other employment, severance, or change in control agreement).          (g)   Termination of Employment in Connection with a Change in Control. Unless an  employment  agreement,  severance  agreement,  change  in  control  agreement,  or  other  similar  agreement  in  effect  between  the Company  or  an  Affiliate  and  a Participant  provides  for more  favorable treatment, in the event of a Participant’s Termination of Employment by the Company  without Cause or by the Participant for Good Reason, in either case, within the ninety (90) days  prior to or the two (2) years following a Change in Control and to the extent that the Participant  timely executes, delivers, and does not revoke a Release, then notwithstanding anything herein to  the contrary, the Participant will receive payment of (i) any Bonus for a Performance Period that  ended prior to the fiscal year in which the Termination of Employment occurs, based on actual  performance and payable within thirty (30) days following the later of the effective date of the  Change in Control or the expiration of the applicable revocation period for the Release, and (ii)  any Bonus for the Performance Period in which the termination date occurs, at the target level of  performance and payable within thirty (30) days following the later of the effective date of the  Change in Control or the expiration of the applicable revocation period for the Release, prorated  for the number of full calendar months the Participant was employed by the Company during the  Performance Period.         (h)   Breach of Restrictive Covenants. Notwithstanding anything herein to the contrary,  in  the event  that  a  Participant  breaches  any  written  confidentiality,  intellectual  property  rights  assignment,  non-competition,  non-solicitation,  non-disparagement  or  other  written  restrictive  covenant agreement between the Participant and the Company or an Affiliate thereof prior to the  date of payment of any Bonus, the Participant shall forfeit such Bonus.   Section 5.  Administration.         (a)   General Administration. The Plan shall be administered by the Committee. Subject  to the terms and conditions of the Plan, the Committee is authorized and empowered in its sole  discretion to select or approve Participants and to award potential Bonuses in such amounts and  upon such terms and conditions as it shall determine.                                         7     

 

      (b)   Delegation. The Chief Executive Officer (or his or her designee) shall possess all  of the Committee’s duties and authority under the Plan with respect to Bonuses that may be payable  to  Participants  who  are  not  Corporate  Officers,  including  but  not  limited  to  such  duties  and  authority as are set forth in Sections 3 and 4, provided that the Committee shall have the power  and authority to remove from the Chief Executive Officer any and all duties and authority provided  for under this Section 5(b).         (c)   Administrative Rules. The Committee shall have full power and authority to adopt,  amend and rescind administrative guidelines, rules and regulations pertaining to the Plan and to  interpret the Plan and rule on any questions respecting any of its provisions, terms and conditions.         (d)   Committee Members Not Liable. The Committee and each of its members shall be  entitled to rely upon certificates of appropriate officers of the Company with respect to financial  and statistical data in order to determine if the performance goals for a Performance Period have  been  met.  Neither  the  Committee  nor  any  member  thereof  shall  be  liable  for  any  action  or  determination made in good faith with respect to the Plan or any Bonus made hereunder.         (e)   Decisions  Binding.  All  decisions,  actions  and  interpretations  of  the  Committee  concerning  the  Plan  shall  be  final  and  binding  on  the  Company  and  its  Affiliates  and  their  respective boards of directors, and on all Participants and other persons claiming rights under the  Plan, and all such decisions, actions and interpretations of the Committee concerning the Plan shall  be afforded the maximum deference under applicable law.   Section 6.  Amendment; Termination.         The Plan may be amended or terminated by the Board or the Committee. All amendments  to the Plan, including an amendment to terminate the Plan, shall be in writing. Solely to the extent  that  such  approval  is  necessary  to  comply  with  Department  of  the  Treasury  or  Securities  and  Exchange Commission regulations, the rules of the Nasdaq Stock Market or any other applicable  exchange  or  any  other  applicable  law  or  regulations,  an  amendment  to  the  Plan  shall  not  be  effective  without  the  prior  approval  of  the  shareholders  of  the  Company.   Unless  otherwise  expressly  provided  by  the  Board  or  the  Committee,  no  amendment  to  the  Plan  shall  apply  to  potential Bonuses with respect to a Performance Period that began before the effective date of such  amendment.   Section 7.  Other Provisions.         (a)   Duration of the Plan. The Plan is effective as of the Effective Date. The Plan shall  remain in effect until all Bonuses made under the Plan have been paid or forfeited under the terms  of the Plan and all Performance Periods related to Bonuses made under the Plan have expired.         (b)   Bonuses  Not  Assignable.  No  Bonus  or  any  right  thereto  shall  be  assignable  or  transferable by a Participant except by will or by the laws of descent and distribution. Any other  attempted assignment or alienation shall be void and of no force or effect.         (c)   Rights of Participants. The right of any Participant to receive any payments under  a Bonus granted to such Participant and approved by the Committee pursuant to the provisions of                                         8     

 

the Plan shall be an unsecured claim against the general assets of the Company. The Plan shall not  create, nor be construed in any manner as having created, any right by a Participant to any Bonus  for  a  Performance  Period  because  of  a  Participant’s  participation  in  the  Plan  for  any  prior  Performance Period, or because the Committee has made a written certification under Section 4(b)  for the Performance Period. The application of the Plan to one Participant shall not create, nor be  construed in any manner as having created, any right by another Participant to similar or uniform  treatment  under  the  Plan.  Solely  with  respect  to  a  Participant  who  is  party  to  an  employment  agreement, severance agreement, change in control agreement, or other similar agreement in effect  between the Company or an Affiliate and such Participant, the provisions of the Plan are in all  respects subject to the terms and conditions of such agreement as if they were set forth fully herein.         (d)   Termination  of  Employment.  The  Company  retains  the  right  to  terminate  the  employment of any Participant or other employee at any time for any reason or no reason, and a  Bonus is not, and shall not be construed in any manner to be, a waiver of such right.         (e)   Exclusion from Benefits. Bonuses under the Plan shall not constitute compensation  for the purpose  of determining  participation  or  benefits  under  any  other  plan  of  the  Company  unless specifically included as compensation in such plan.         (f)   Successors.  Any  successor  (whether  direct  or  indirect,  by  purchase,  merger,  consolidation or otherwise) to all or substantially all of the Company’s business or assets, shall  assume the Company’s liabilities under the Plan and perform any duties and responsibilities in the  same manner and to the same extent that the Company would be required to perform if no such  succession had taken place.         (g)   Governing  Law.  The  Plan  and  actions  taken  in  connection  herewith  shall  be  governed and construed in accordance with the laws of the State of New York (regardless of the  law that might otherwise govern under applicable New York principles of conflict of laws).         (h)   Headings. Any headings preceding the text of the several sections, subsections, or  paragraphs hereof are inserted solely for convenience of reference and shall not constitute a part  of the Plan, nor shall they affect its meaning, construction or effect.         (i)   Severability. If any provision of the Plan is determined to be void by any court of  competent jurisdiction, the Plan shall continue to operate and, for the purposes of the jurisdiction  of the court only, shall be deemed not to include the provision determined to be void.         (j)   Offsets. To the extent permitted by law, the Company shall have the right to offset  from any Bonus payable hereunder any amount that the Participant owes to the Company or any  Affiliate without the consent of the Participant (or the Participant’s beneficiary, in the event of the  Participant’s death).         (k)   Code Section 409A.                (i)   Although the Company does not guarantee the particular tax treatment of        any Bonus awarded under the Plan, amounts paid under the Plan are intended to comply        with, or be exempt from, the applicable requirements of Code Section 409A and the Plan                                         9     

 

      and any Bonus shall be limited, construed and interpreted in accordance with such intent.        In  no  event  whatsoever  shall  the  Company  or  any  of  its  Affiliates  be  liable  for  any        additional tax, interest or penalties that may be imposed on a Participant by Code Section        409A or any damages for failing to comply with Code Section 409A.               (ii)  Notwithstanding anything herein to the contrary, the following provisions        shall  apply  to  any  Bonus  under  the  Plan  that  constitutes  nonqualified  deferred        compensation pursuant to Section 409A (a “409A Covered Bonus”):                     (A)   A termination of employment shall not be deemed to have occurred              for purposes of any provision of a 409A Covered Bonus providing for payment              upon  or  following  a  termination  of  the  Participant’s  employment  unless  such              termination is also a “Separation from Service” within the meaning of Code Section              409A  and,  for  purposes  of  any  such  provision  of  the  409A  Covered  Bonus,              references  to  a  “termination,”  “termination  of  employment”  or  like  terms  shall              mean  Separation  from  Service.  Notwithstanding  any  provision  herein  to  the              contrary, if the Participant is deemed on the date of the Participant’s Termination              of Employment to be a “specified employee” within the meaning of that term under              Code Section 409A(a)(2)(B) and using the identification methodology selected by              the Company from time to time, or if none, the default methodology set forth in              Code Section 409A, then with regard to any such payment under a 409A Covered              Bonus,  to  the  extent  required  to  be  delayed  in  compliance  with  Code  Section              409A(a)(2)(B),  such  payment  shall  not  be  made  prior  to  the  earlier  of  (i)  the              expiration of the six (6)-month period measured from the date of the Participant’s              Separation from Service, and (ii) the date of the Participant’s death. All payments              delayed pursuant to this Section 7(k)(ii)(A) shall be paid to the Participant on the              first day of the seventh month following the date of the Participant’s Separation              from Service or, if earlier, on the date of the Participant’s death.                     (B)   Whenever  a  payment  under  a  409A  Covered  Bonus  specifies  a              payment period with reference to a number of days, the actual date of payment              within the specified period shall be within the sole discretion of the Company. In              no event shall the timing of a Participant’s execution of the Release, directly or              indirectly, result in the Participant’s designating the calendar year of payment, and              if a payment that is subject to execution of the Release could be made in more than              one taxable year, payment shall be made in the later taxable year. Each amount or              benefit  payable  pursuant  to  this  Plan  shall  be  treated  as  a  separate  and  distinct              payment for purposes of Code Section 409A.          (l)   Incentive Compensation Recoupment Policy. Notwithstanding anything herein to  the contrary, all Bonuses are subject to any incentive compensation recoupment or clawback policy  maintained by the Company from time to time.                                                   10EX-10.1

 Exhibit 10.1 

Certain portions of this exhibit (indicated by “[*****]”) have been omitted pursuant to Item 601(b)(10) of Regulation S-K. 
 FIRST AMENDED AND RESTATED FORBEARANCE AGREEMENT 

This FIRST AMENDED AND RESTATED FORBEARANCE AGREEMENT (this “Agreement”), dated as of July 15, 2020 (the
“Forbearance Amendment Date”), is by and among Jill Acquisition LLC, a Delaware limited liability company (“Borrower”), J.Jill, Inc., a Delaware corporation (as successor to Jill Holdings LLC, a Delaware limited
liability company, “Holdings”), the other Guarantors party hereto, the Administrative Agent (as defined below) and the Lenders party hereto (each a “Forbearing Lender” and, together, the “Forbearing
Lenders”). 
 RECITALS 

WHEREAS, reference is made to the Term Loan Credit Agreement dated as of May 8, 2015 (as amended by that certain Amendment
No. 1 to Term Loan Credit Agreement, dated as of May 27, 2016, and as further amended, restated, amended and restated, supplemented or otherwise modified prior to the date hereof, the “Credit Agreement”), by and among
Borrower, Holdings, the other Guarantors from time to time party thereto, the Lenders from time to time party thereto and Jefferies Finance LLC, as Administrative Agent (“Administrative Agent”) (capitalized terms used herein but not
defined herein shall have the meanings assigned to them in the Credit Agreement); 
 WHEREAS, a Default or Event of Default has
occurred pursuant to (i) Section 10.01(c)(y) of the Credit Agreement as a result of the failure to deliver to the Administrative Agent annual audited financial statements without a going concern qualification as required by
Section 8.01(b) of the Credit Agreement (the “Audit Default”) and (ii) Section 10.01(c)(x) of the Credit Agreement as a result of the failure to satisfy the Total Net Leverage Ratio required by Section 9.11 of
the Credit Agreement for the Test period ending May 2, 2020 (the “Financial Covenant Default” and together with the Audit Default, the “Initial Specified Defaults”); 

WHEREAS, Borrower, Holdings, the Guarantors, the Lenders party thereto and the Administrative Agent are parties to that certain
Forbearance Agreement (the “Initial Forbearance Agreement”), dated as of June 15, 2020 (the “Forbearance Effective Date”), pursuant to which the Administrative Agent and the Lenders party thereto agreed to
temporarily forbear from the exercise of their Rights and Remedies (as defined below) as to the Initial Specified Defaults, subject to the terms and conditions set forth in the Initial Forbearance Agreement; 

WHEREAS, a Default or Event of Default has occurred (or may occur) pursuant to Section 10.01(c)(y) of the Credit Agreement as a
result of the failure to deliver to the Administrative Agent quarterly financial statements for the first Fiscal Quarter of the 2020 Fiscal Year pursuant to Section 8.01(a) of the Credit Agreement (the “Q1 2020 Financial Statement
Default” and, together with the Initial Specified Defaults, the “Specified Defaults” and, together with any Default or Event of Default arising out of any inaccuracy of any representation and warranty or failure to give
notice relating to any Specified Default, the “Forbearance Defaults”; provided that additional Forbearance Defaults may be included upon confirmation (including via e-mail) to Borrower
and the Administrative Agent from Forbearing Lenders constituting the Required Lenders (the “Required Forbearing Lenders”); 

 WHEREAS, upon the occurrence, and during the continuance, of the Forbearance
Defaults, the Administrative Agent (upon the written request of the Required Lenders) would be entitled to exercise all rights and remedies under the Credit Documents as set forth in Section 10.01 of the Credit Agreement and corresponding
provisions of any other Credit Documents (including the charging of default interest and exercising rights of set off, as applicable) or applicable Law (collectively, all such rights and remedies the “Rights and Remedies”); 

WHEREAS, for the purpose of engaging in discussions regarding a potential recapitalization, restructuring or similar transaction, the
Credit Parties have requested that the Forbearing Lenders (x) continue to temporarily forbear from exercising their Rights and Remedies, solely to the extent arising from the occurrence and continuation of the Forbearance Defaults, and
(y) extend the outside Termination Date set forth in Section 2.02(a) of the Initial Forbearance Agreement, in each case subject to the terms and conditions of this Agreement; 

WHEREAS, some or all of the Forbearing Lenders executing this Agreement (each such Forbearing Lender, a “Steering Committee
Member”) is a party to a letter agreement, dated May 25, 2020 (as amended or otherwise modified by a letter agreement, dated June 5, 2020 or June 8, 2020, and by the Initial Forbearance Agreement, as so amended or otherwise
modified, each an “Existing Letter Agreement”), in each case, with Borrower and Holdings related to the nondisclosure of certain information provided to the Steering Committee Members by Borrower and Holdings;  

WHEREAS, Borrower and Holdings have requested that each Steering Committee Member agree to extend certain dates set forth in its
Existing Letter Agreement, subject to the terms and conditions of this Agreement; 
 WHEREAS, the Forbearing Lenders have agreed to
such requests subject to the terms and conditions, and in reliance on the representations and warranties, set forth in this Agreement; and 

WHEREAS, Borrower and the Forbearing Lenders desire to amend and restate the Initial Forbearance Agreement in its entirety by
this Agreement in order to effectuate the foregoing. 
 NOW THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 SECTION I. ACKNOWLEDGMENTS 

1.01 Acknowledgments. Each of the Credit Parties hereby acknowledges and agrees, upon execution and delivery of this Agreement, subject
to the terms set forth herein, that: 
 (a) each Credit Party hereby acknowledges the accuracy of each Recital, which are true and correct
and incorporated herein by reference; 

  
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 (b) each Credit Party hereby ratifies and affirms (as of the date hereof) the Credit
Documents and the Obligations owing thereunder and the grants of Liens on the Collateral to secure the Obligations pursuant to the Security Documents, and acknowledges (as of the date hereof) that the Credit Documents are and, after being amended by
this Agreement, shall remain in full force and effect. Each Credit Party agrees this Agreement constitutes a Credit Document and that the Credit Documents constitute (and as amended by this Agreement shall continue to constitute) valid and binding
obligations and agreements of each of the Credit Parties enforceable against each Credit Party in accordance with their respective terms, except to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws generally affecting creditors’ rights and by equitable principles (regardless of whether enforcement is sought in equity or at law); 

(c) subject to the terms and conditions of this Agreement (including Section 2), the Lenders have not waived,
released or compromised, do not hereby waive, release or compromise, and may never waive, release or compromise any events, occurrences, acts, or omissions that may constitute or give rise to any Defaults or Events of Default (including the
Forbearance Defaults) that existed or may have existed, or may presently exist, or may arise in the future, nor does any Lender waive any Rights and Remedies, including the right to direct the Administrative Agent to exercise any Rights and
Remedies; 
 (d) the execution and delivery of this Agreement shall not, except as otherwise specifically set forth herein:
(i) constitute an extension, modification, or waiver of any aspect of any of the Credit Documents; (ii) extend the maturity of the Obligations or the due date of any payment or performance of any Obligations or other obligations under the
other Credit Documents or payable in connection with the Credit Documents; (iii) give rise to any obligation on the part of the Lenders to extend, modify or waive any term or condition of the Credit Documents; (iv) establish any course of
dealing with respect to the Credit Documents; or (v) give rise to any defenses or counterclaims to the right of the Lenders to compel payment of the Obligations or otherwise enforce their Rights and Remedies set forth in the Credit Documents
after the Termination Date (as defined below); 
 (e) the Forbearing Lenders’ agreement to temporarily forbear from the exercise of
their Rights and Remedies as to the Forbearance Defaults, and to perform as provided herein, shall not, except as expressly provided herein, invalidate, impair, negate or otherwise affect the Administrative Agent’s or Lenders’ ability to
exercise their Rights and Remedies under the Credit Documents or otherwise; and 
 (f) as of the Forbearance Amendment Date, (i) the
aggregate unpaid principal balance of the Term Loans is $236,879,059.44, (ii) the aggregate amount of accrued and unpaid interest on the Term Loans is $3,000,468.09, and (iii) the aggregate amount of accrued and unpaid fees, costs and expenses
payable pursuant to Section 3.01 of the Credit Agreement is $42,800.66 (the foregoing amounts in clauses (i) through (iii) are hereafter collectively referred to as the “Current Outstanding Obligations”). The foregoing
amounts do not include other fees, expenses (including reasonable professional fees and expenses), and other Obligations and amounts which are chargeable or otherwise reimbursable under the Credit Agreement (including pursuant to Section 12.01
of the Credit Agreement), this Agreement and the other Credit Documents, or which are payable pursuant to this Agreement. Neither Borrower nor any other Credit Party has 

  
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any rights of offset, defenses, claims or counterclaims with respect to the Current Outstanding Obligations or any of the other Obligations or any payment obligation under this Agreement, and
each of the Credit Parties are jointly and severally obligated with respect thereto, in each case, in accordance with the terms of the applicable Credit Documents and, with respect to payment obligations hereunder, this Agreement. 

SECTION II. FORBEARANCE 

2.01 Forbearance. In consideration of the Credit Parties’ agreement to timely comply with the terms of this Agreement, and in
reliance upon the representations, warranties, agreements and covenants of the Credit Parties set forth herein, subject to the satisfaction of each of the conditions precedent to the effectiveness of this Agreement, during the Forbearance Period (as
defined below), the Administrative Agent and each Forbearing Lender (severally and not jointly) hereby agree to forbear (the “Forbearance”) from exercising any of the Rights and Remedies with respect to the Forbearance Defaults. For
the avoidance of doubt, during the Forbearance Period, each Forbearing Lender agrees that it (individually or collectively) will not deliver any notice or instruction to the Administrative Agent directing the Administrative Agent, in each case, to
exercise any of the Rights and Remedies under the Credit Documents or applicable Law against the Credit Parties with respect to the Forbearance Defaults. For the avoidance of doubt, this Agreement shall not, except as provided herein,
(a) prevent the Lenders from receiving payments of principal and interest when due or (b) limit any other available rights or remedies of the Administrative Agent and/or the Lenders. 

2.02 Forbearance Period. The Forbearance shall commence on the Forbearance Effective Date and continue until the earlier of
(a) July 23, 2020 at 12:01 a.m. New York City time and (b) the date on which any Event of Termination (as defined below) shall have occurred (the earlier of clause (a) and clause (b), the “Termination
Date” and the period commencing on the Forbearance Effective Date and ending on the Termination Date, the “Forbearance Period”); provided that the Forbearance Period may be extended by the Required Forbearing Lenders
by notice to Borrower and the Administrative Agent, which may be confirmed, including via e-mail (which email may be provided by Stroock (as defined below)). Upon the occurrence of an Event of Termination, the
Forbearance Period shall immediately and automatically terminate and have no further force or effect, and each of the Forbearing Lenders shall be released from any and all obligations and agreements under this Agreement and shall be entitled to
exercise any of the Rights and Remedies as if this Agreement had never existed, and all of the Rights and Remedies shall be available without restriction or modification, as if this Agreement had not been effectuated. 

SECTION III. EXISTING LETTER AGREEMENT 

3.01 Extension of Certain Dates. Borrower, Holdings and each Steering Committee Member hereby acknowledge and agree that (a) each
Existing Letter Agreement is hereby amended by (i) deleting the first reference to July 16, 2020 set forth therein and replacing it with July 23, 2020 and (ii) deleting the second reference to July 15, 2020 set forth therein
and replacing it with July 22, 2020, and (b) when executed by the parties hereto, this Agreement serves to amend each Existing Letter Agreement for the sole and limited purpose as set forth in this Section III, and except for such
amendment each Existing Letter Agreement remains in full force and effect in accordance with its terms. 

  
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 SECTION IV. CONDITIONS PRECEDENT. 

This Agreement shall become effective upon the satisfaction (or waiver in writing by the Required Forbearing Lenders given to Borrower and the
Administrative Agent (which may be by e-mail from Stroock on their behalf)) of the following conditions precedent: 

4.01 Signature Pages. The Administrative Agent shall have received counterparts of this Agreement, duly executed and delivered by the
Credit Parties, the Administrative Agent and Required Forbearing Lenders. 
 4.02 ABL Forbearance Agreement. Each of the Credit
Parties, the ABL Agent and the ABL Secured Parties shall have entered into the ABL Forbearance Agreement (defined below), which shall be in form and substance and shall contain terms and conditions that are reasonably acceptable to the
Administrative Agent (at the direction of the Required Forbearing Lenders) and the Forbearing Lenders (including a stated termination date no earlier than July 23, 2020), and which ABL Forbearance Agreement shall be in full force and effect and
not subject to any unfulfilled conditions and the Administrative Agent shall have received a fully executed copy of the ABL Forbearance Agreement. 

SECTION V. EVENTS OF TERMINATION. 

5.01 Events of Termination. The Forbearance Period shall automatically terminate immediately upon the occurrence of any of the
following events (each, an “Event of Termination”): 
 (a) written notice to Borrower by the Administrative Agent (at the
direction of the Required Forbearing Lenders) or the Required Forbearing Lenders (which may be made via email from Stroock): 
 (i) that any
representation or warranty made by any Credit Party in this Agreement shall have been false in any material respect (or in the case of any representation qualified as to materiality, shall have been false in any respect) when made; 

(ii) of the failure of any Credit Party to comply with any term, condition or covenant set forth in this Agreement (including the covenants in
Section VI of this Agreement) unless the Required Forbearing Lenders, in their sole discretion, grant a cure period for compliance with such term, condition or covenant (in which case the Forbearance Period shall terminate if the applicable
Credit Party does not comply by the expiration of the cure period); provided, however, that, with regards to an Event of Termination arising from Section 6.01 or
Section 6.06, the Credit Parties shall have a cure period of one (1) Business Day or five (5) Business Days, respectively, for compliance with the applicable terms, conditions or covenants (in which case the
Forbearance Period shall terminate if the applicable Credit Party does not comply by the expiration of the cure period); or 
 (iii) of the
occurrence of a “Default” or “Event of Default” under the Credit Agreement after the Forbearance Effective Date, other than the Forbearance Defaults; 

  
 5 

 (b) the occurrence and continuance of any “Event of Default” under the ABL Credit
Agreement dated as of May 8, 2015 (as amended by that certain Amendment No. 1 to ABL Credit Agreement, dated as of May 27, 2016, as further amended by that certain Amendment No. 2 to ABL Credit Agreement, dated as of
August 22, 2018, as further amended by that certain Amendment No. 3 to ABL Credit Agreement, dated as of June 12, 2019, and as may be further amended, amended and restated, supplemented or otherwise modified from time to time, the
“ABL Credit Agreement”), by and among Borrower, Jill Gift Card Solutions, Inc., a Florida corporation, Holdings, the lenders from time to time party thereto and CIT Finance LLC, as administrative agent and collateral agent (other
than a Forbearance Default (as defined in the Forbearance Agreement, dated as of the date hereof, with respect to the ABL Credit Agreement (the “ABL Forbearance Agreement”)); 

(c) the expiry or termination of the ABL Forbearance Agreement; 

(d) a proceeding shall be commenced or any petition shall be filed in a court of competent jurisdiction seeking (i) relief in respect of
any Credit Party or of a substantial part of the property or assets of any Credit Party, under Title 11 of the United States Code, as now constituted or hereafter amended, or any other Federal, state or foreign bankruptcy, insolvency, receivership
or similar law, (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for any Credit Party or for a substantial part of the property or assets of any Credit Party or (iii) the winding-up or liquidation of any Credit Party; or 
 (e) any Credit Party shall assert any claim or any
cause of action to repudiate or assert a defense to this Agreement, the Credit Agreement or any other Credit Document or initiate any judicial, administrative or arbitration proceeding against the Administrative Agent or any Lender related to the
foregoing. 
 SECTION VI. ADDITIONAL COVENANTS 

In consideration of the Administrative Agent and the Forbearing Lenders entering into this Agreement in accordance with the terms and
conditions hereof, each Credit Party hereby covenants and agrees that the Credit Parties shall at all times through the Forbearance Termination Date comply with each of the following covenants: 

6.01 Reporting Covenants. The financial reporting covenants set forth in this Section 6.01 shall be considered
obligations of Borrower and Holdings, as applicable, in addition to (and not limited by), any financial reporting requirements under the Credit Agreement (including Article VIII thereof). 

(a) Borrower shall provide to the Administrative Agent and the Forbearing Lenders (though Guggenheim Securities, LLC as financial advisor and
investment banker to the Steering Committee Members (“Guggenheim”)), not later than 11:00 a.m. (New York City time) on (i) the first Thursday after the Forbearance Effective Date and (ii) subsequent thereto, the first
Thursday of each fiscal month occurring after the Forbearance Effective Date, a 13-week budget and cash flow forecast (each a “Cash Flow Report” and, the Cash Flow Report delivered in
accordance with clause (a)(i) above, the “Initial Cash Flow Report”) for Borrower and its Subsidiaries covering the 13-week period that commences with the fiscal week of Parent and its

  
 6 

 
Subsidiaries ending on the first Saturday occurring after the date on which each Cash Flow Report is delivered and including the subsequent twelve (12) fiscal weeks, in form substantially
similar to the liquidity forecast delivered by Borrowers prior to the Forbearance Effective Date. Borrower shall provide to the Administrative Agent and the Forbearing Lenders (though Guggenheim), not later than 11:00 a.m. (New York City time)
on each Thursday after the Forbearance Effective Date (commencing with the first Thursday after the Initial Cash Flow Report is delivered) (i) a line-by-line
variance report (the “Variance Report”) setting forth, in reasonable detail (x) for each fiscal week from the first fiscal week covered by the Initial Cash Flow Report, any differences between (A) actual receipts and
disbursements for such fiscal week (on a line item and aggregate basis) and (B) the corresponding amount projected therefor and set forth in the Cash Flow Report for such fiscal week, in each case, on a weekly basis and on a cumulative basis
from the first date in the first Cash Flow Report to the Variance Report date and (y) actual net cash flows as of such fiscal week on a cumulative basis for the period from the first date in the first Cash Flow Report to the Variance Report
date and projected net cash flows set forth for such period in the Cash Flow Report and (ii) an explanation prepared by management, in reasonable detail, for any such variance. Each Variance Report shall further include a Liquidity report
setting forth the Liquidity (and the component parts thereof) of the Credit Parties on a consolidated basis as of the close of business on the last day of each applicable fiscal week covered by such Variance Report. Each Variance Report shall be
certified by an Authorized Officer of Borrower as being prepared in good faith and fairly presenting in all material respects the information set forth therein. 

(b) On the Friday of each week following delivery of a Variance Report (at a time to be mutually agreed) the Credit Parties shall host a
conference call to discuss, among other things, the Cash Flow Report and Variance Report with relevant members of the Credit Parties’ management, the Credit Parties’ relevant professional advisors, the Forbearing Lenders and Guggenheim.

 (c) (x) For the fiscal month of Parent and its Subsidiaries ended on the Saturday closest to June 30, 2020, on or prior to
July 15, 2020 Borrower shall deliver to the Administrative Agent and the Steering Committee Members (through Guggenheim) an unaudited consolidated statement of income or operations (the “Monthly Reporting”) and
(y) Borrower shall deliver the Monthly Reporting to the Administrative Agent and the Steering Committee Members (through Guggenheim) within fifteen (15) days after the final date of each fiscal month thereafter for the duration of the
Forbearance Period. 
 (d) The Credit Parties shall deliver to the Steering Committee Members (through Guggenheim) copies of any financial or
other reporting provided to the ABL Agent and/or the ABL Secured Parties under either the ABL Credit Agreement or the ABL Forbearance Agreement as and when delivered to the ABL Agent and/or the ABL Secured Parties. 

(e) The Credit Parties shall satisfy the reasonable diligence requests of the Steering Committee Members (though Guggenheim) within a
reasonable period of time after the receipt of any such request. 
 (f) [Reserved]. 

  
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 (g) No later than 5:00 p.m. New York City time on July 31, 2020, the Credit Parties
shall cure the Q1 2020 Financial Statement Default. 
 (h) Notwithstanding the agreement to forbear under this Agreement, the Administrative
Agent and the Lenders shall be entitled to those rights under Section 8.02 of the Credit Agreement that they are entitled to upon the occurrence and during the continuation of a Default or an Event of Default. 

(i) Any of the information delivered to the Administrative Agent delivered pursuant to the foregoing Sections 6.01(a), (b) and
(c) shall be delivered to the Lenders by posting such information on the Platform and making such information available to only those Lenders that are non-Public Lenders. 

6.02 Negative Covenants. It shall be an immediate Event of Default under the Credit Agreement if during the Forbearance
Period, Holdings, Borrower or any Restricted Subsidiary: 
 (a) Creates, incurs, assumes or suffers to exist any Liens (other than Liens
outstanding as of the Forbearance Effective Date) on any property or asset of Holdings or any of its Restricted Subsidiaries, whether now owned or later acquired, or assigns (as security) any right to receive income pursuant to Sections 9.01(f),
9.01(m), 9.01(r), 9.01(t), 9.01(u), 9.01(v) (securing any Indebtedness for Borrowed Money or otherwise securing obligations in excess of $1,000,000), 9.01(y) or 9.01(bb) of the Credit Agreement; and any Lien permitted by reference to Indebtedness
permitted under Section 9.04 of the Credit Agreement shall only be permitted to the extent such Indebtedness is permitted under Section 9.04 of the Credit Agreement after giving effect to clause (e) below. 

(b) Winds up, liquidates or dissolves its affairs or merges or consolidates into or with or disposes of (whether in one transaction or in a
series of transactions) all or substantially all of its assets to any Person, or purchases or otherwise acquires an Acquired Entity or Business. 

(c) Conveys, sells, leases or otherwise disposes of any of its property or assets, or enters into any sale-leaseback transactions, or, in the
case of any Restricted Subsidiary, issues or sells, or enters into any agreement to issue or sell, any shares of such Restricted Subsidiary’s Equity Interests pursuant to Sections 9.02(d) or (o) of the Credit Agreement. 

(d) Authorizes, declares or pays any Dividend with respect to Holdings or any of its Restricted Subsidiaries pursuant to Sections 9.03(a)
(except Dividends paid to any Credit Party), 9.03(c), 9.03(f), 9.03(g), 9.03(h), 9.03(j), 9.03(k), 9.03(l) or 9.03(m) of the Credit Agreement. 

(e) Creates, issues, incurs, assumes or permits to exist any (i) Disqualified Equity Interests, (ii) preferred stock or
(iii) Indebtedness (other than Indebtedness outstanding as of the Forbearance Effective Date) pursuant to any of Sections 2.14, 9.04(a) (to the extent in respect of Indebtedness incurred pursuant to Section 2.14), 9.04(d), 9.04(g),
9.04(k), 9.04(n), 9.04(o), 9.04(p), 9.04(q), 9.04(r), 9.04(t) (in an aggregate principal amount in excess of $1,000,000), 9.04(v), 9.04(w) or 9.04(x) of the Credit Agreement.  

  
 8 

 (f) Makes or holds any Investments (other than Investments outstanding as of the Forbearance
Effective Date) pursuant to Sections 9.05(e), 9.05(f), 9.05(h)(ii) or (iv), 9.05(i)(z), 9.05(j), 9.05(l), 9.05(p), 9.05(q), 9.05(r), 9.05(s), 9.05(t) or 9.05(z) of the Credit Agreement. 

(g) Enters into any transaction or series of related transactions with any Affiliate of Holdings or any of its Subsidiaries (other than
Holdings or any Restricted Subsidiary thereof) pursuant to Sections 9.06(c) (to the extent incurred or paid in a manner not consistent with past practice), 9.06(f), 9.06(g), 9.06(h), 9.06(i), 9.06(j) or 9.06(k) of the Credit Agreement; and Holdings,
Borrower and their Restricted Subsidiaries shall not reimburse or pay any fees and expenses incurred by the Sponsor from and after the date of this Agreement during the Forbearance Period, provided that all such amounts shall continue to
accrue during the Forbearance Period. 
 (h) Designates any Subsidiary as an Unrestricted Subsidiary. 

(i) Enters into any transaction that subordinates the Obligations of any or all of the Lenders or any or all of the Liens securing the
Obligations to any other obligations or Liens, respectively. 
 6.03 Minimum Liquidity. Commencing on the date hereof, at all times,
Borrower shall not permit its Liquidity to be less than $17,500,000 (the “Minimum Liquidity”). Should such Minimum Liquidity covenant be breached at any time, Borrower shall immediately notify the Administrative Agent and the
Forbearing Lenders (through Guggenheim). “Liquidity” means, at the time of determination, an amount equal to (x) the aggregate amount of unrestricted cash and Cash Equivalents of the Credit Parties less (y) any
Extended Payables Balance. For purposes hereof, “Extended Payable Balance” is calculated consistent with the Company’s current practice, as disclosed to the Forbearing Lenders (through Guggenheim) prior to the Forbearance Effective
Date, plus seven (7) days (excluding withheld rental payments for the calendar months of April and May of 2020). 
 6.04 No
Release of Guarantors. Notwithstanding anything to the contrary in the Credit Agreement, this Agreement or in any other Credit Document, no Guarantor shall be released from its obligations under the Guaranty (even if becoming an Excluded
Subsidiary). 
 6.05 [Reserved.] 

6.06 Retention of Financial Advisor. The Credit Parties agree that they will reasonably cooperate with the financial advisor,
AlixPartners, LLP (the “Financial Advisor”), in the execution of services by such Financial Advisor, as contemplated by the engagement letter between the Credit Parties and the Financial Advisor and which was delivered to the Forbearing
Lenders (the “Engagement Letter”). The Financial Advisor shall be retained at all times during the Forbearance Period and the scope of the Financial Advisor’s engagement shall not be reduced from that contemplated by the Engagement
Letter without the consent of the Required Forbearing Lenders. 

  
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 6.07 Payment of Expenses. The Credit Parties agree to pay and reimburse the
Administrative Agent promptly for all of its out-of-pocket costs and reasonable expenses for which invoices have been presented in accordance with
Section 12.01(a)(i) of the Credit Agreement, including the reasonable fees and disbursements of Jones Day. The Credit Parties agree to pay and reimburse the Steering Committee Members for all of their out-of-pocket costs and reasonable expenses for which invoices have been presented, including the reasonable fees and disbursements of Stroock and Guggenheim, whether incurred prior to or after the date
hereof, in accordance with their respective engagement letters. The Credit Parties shall not pay and reimburse the Sponsor for any out-of-pocket costs or expenses
incurred in connection with this Agreement during the Forbearance Period, provided that all such amounts shall continue to accrue during the Forbearance Period. 

6.08 Release. In consideration of the benefits received by the Credit Parties under this Agreement, and for other good and valuable
consideration (the receipt, adequacy and sufficiency of which are hereby acknowledged), effective on the date of this Agreement, each of the Credit Parties, on behalf of itself, its Affiliates and its and its Affiliates’ agents,
representatives, officers, directors, advisors, employees, Subsidiaries, Affiliates, successors and assigns (collectively, “Releasors”), hereby forever waives, releases and discharges each Lender, the Administrative Agent, and each
of their Affiliates and each of their and their Affiliates’ respective officers, directors, partners, general partners, limited partners, managing directors, members, stockholders, trustees, shareholders, representatives, employees, principals,
agents, parents, subsidiaries, joint ventures, predecessors, successors, assigns, beneficiaries, heirs, executors, personal or legal representatives and attorneys of any of them, each in their capacities as such, (collectively, the
“Releasees”), of and from any and all claims, causes of action, suits, obligations, demands, debts, agreements, promises, liabilities, controversies, costs, damages, expenses and fees whatsoever, whether arising from any act,
failure to act, omission, misrepresentation, fact, event, transaction or other cause, and whether based on any federal, state, local or foreign law or right of action, at law or in equity or otherwise, foreseen or unforeseen, matured or unmatured,
known or unknown, accrued or not accrued, which any Releasor now has, has ever had or may hereafter have against any Releasee arising contemporaneously with or prior to the date of this Agreement or on account of or arising out of any matter, cause,
circumstance or event occurring contemporaneously with or prior to the date of this Agreement that (in each case) relate to, arise out of, or otherwise are in connection with any or all of the Credit Documents or this Agreement, or the transactions
contemplated hereby or thereby (collectively, the “Released Claims”), in each case, other than any such Released Claims arising from the gross negligence, bad faith or willful misconduct of any Releasee as determined
by a final, non-appealable judgement by a court of competent jurisdiction. Each of the Credit Parties, on behalf of itself and its agents, representatives, officers, directors, advisors, employees,
Subsidiaries, Affiliates, successors and assigns, hereby unconditionally and irrevocably agrees that it will not sue any Releasee on the basis of any Released Claim. The Credit Parties’ obligations under this
Section 6.08 shall survive termination of this Agreement. 

  
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 SECTION VII. REPRESENTATIONS AND WARRANTIES 

In consideration of the foregoing agreements, the Credit Parties jointly and severally hereby represent and warrant to the Administrative
Agent and each Forbearing Lender, as follows: 
 7.01 Representations and Warranties. Immediately after giving effect to this
Agreement and the transactions contemplated by this Agreement, the representations and warranties set forth in Section 7 of the Credit Agreement shall be, in each case, true and correct in all material respects (other than with respect to any
such representations and warranties that are affected by the Forbearance Defaults); provided that, to the extent that such representations and warranties specifically refer to an earlier date, they shall be true and correct in all material
respects as of such earlier date; provided, further, that any representation and warranty that is qualified as to “materiality,” “Material Adverse Effect” or similar language shall be true and correct (after giving
effect to any qualification there-in) in all respects on such respective dates; provided, further, that any reference to “Material Adverse Effect” shall be deemed to exclude any event or circumstance
arising out of, or related to, any Forbearance Default. 
 7.02 No Violation. Neither the execution, delivery and performance by each
Credit Party of this Agreement nor the consummation of the transactions contemplated hereunder will (i) contravene any provision of any law, statute, rule or regulation or any order, writ, injunction or decree of any court or Governmental
Authority, (ii) conflict with or result in any breach of any of the terms, covenants, conditions or provisions of, or constitute a default under, or result in the creation or imposition of (or the obligation to create or impose) any Lien upon
any of the property or assets of any Credit Party or any of its Restricted Subsidiaries pursuant to the terms of any indenture, mortgage, deed of trust, credit agreement or loan agreement, or any other agreement, contract or instrument to which any
Credit Party or any of its Restricted Subsidiaries is a party or by which it or any of its property or assets is bound or (iii) violate any provision of the certificate or articles of incorporation, certificate of formation, limited liability
company agreement or by-laws (or equivalent organizational documents), as applicable, of any Credit Party or any of its Restricted Subsidiaries, except with respect to any violation or conflict referred to in
clauses (i) and (ii) to the extent that such violation or conflict could not reasonably be expected to have individually or in the aggregate a Material Adverse Effect. 

7.03 Authority. Each Credit Party has the company power and authority to execute, deliver and perform the terms and provisions of the
Agreement and has taken all necessary company action to authorize the execution, delivery and performance by it of the Agreement. This Agreement constitutes a legal, valid and binding obligation of the Credit Parties hereto, enforceable against each
Credit Party in accordance with its terms, except to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws generally affecting creditors’ rights and by
equitable principles (regardless of whether enforcement is sought in equity or at law). 
 7.04 No Event of Default. As of the
Forbearance Effective Date, no Event of Default or Default (other than the Forbearance Defaults) has occurred and is continuing or will result from the consummation of the transactions contemplated by this Agreement. 

SECTION VIII. MISCELLANEOUS 

8.01 Counterparts. This Agreement may be executed and delivered in any number of counterparts with the same effect as if the signatures
on each counterpart were upon the same instrument. Any counterpart delivered by facsimile or by other electronic method of transmission shall be deemed an original signature thereto. 

  
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 8.02 GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF JURY TRIAL.
Section 12.08 (Governing Law; Submission to Jurisdiction; Venue; Waiver of Jury Trial) of the Credit Agreement is hereby incorporated by reference, mutatis mutandis. 

8.03 Successors and Assigns. This Agreement shall be binding upon each of the Credit Parties, the Administrative Agent, the Forbearing
Lenders and their respective successors and permitted assigns, and shall inure to the benefit of each such person and their permitted successors and permitted assigns. 

8.04 Headings. Section headings in this Agreement are included herein for convenience of reference only and shall not constitute a part
of this Agreement for any other purpose. 
 8.05 Amendment. This Agreement may only be amended or modified in writing by the Credit
Parties, the Required Forbearing Lenders, and, to the extent relating to the rights or obligations of the Administrative Agent, the Administrative Agent, in each case, subject to any additional requirements under the Credit Agreement, if applicable;
provided that any such amendment may be effectuated through e-mail confirmation among the Credit Parties, the Required Lenders and the Administrative Agent. 

8.06 Entire Agreement. This Agreement embodies the final, entire agreement between the parties hereto regarding the matters contained
herein and supersedes any and all prior commitments, agreements, representations and understandings, whether written or oral, relating to the subject matter hereof and may not be contradicted or varied by evidence of prior, contemporaneous or
subsequent oral agreements or discussions of the parties hereto. There are no oral agreements among the parties hereto. 
 8.07 No
Implied Waivers. No failure or delay on the part of the Administrative Agent or any Lender in exercising, and no course of dealing with respect to, any right, power or privilege under this Agreement, the Credit Agreement or any other Credit
Document shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege under this Agreement, the Credit Agreement or any other Credit Document preclude any other or further exercise thereof or the
exercise of any other right, power or privilege. 
 8.08 Division. For all purposes under the Credit Agreement, in connection
with any division or plan of division under Delaware law (or any comparable event under a different jurisdiction’s law): (a) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability of a
different Person, then it shall be deemed to have been transferred from the original Person to the subsequent Person, and (b) if any new Person comes into existence, such new Person shall be deemed to have been organized on the first date of
its existence by the holders of its Equity Interests at such time. 
 8.09 Indemnification. The indemnification provisions set forth
in Section 12.01 of the Credit Agreement shall apply to this Agreement. 
 8.10 Tolling of Statutes of Limitation. The parties
hereto agree that all applicable statutes of limitations with respect to this Agreement, the Credit Agreement or any other Credit Document shall be tolled from the date hereof until the Termination Date. 

  
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 8.11 Severability. In case any one or more of the provisions contained in this
Agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision hereof, and this Agreement shall be construed as if such invalid,
illegal, or unenforceable provision had never been contained herein. 
 8.12 Notices. Except as otherwise set forth herein, all
notices, requests, demands and other communications under this Agreement will be given in accordance with the provisions of the Credit Agreement. 

8.13 Direction. By its execution and delivery hereof, each Forbearing Lender party hereto directs the Administrative Agent to execute
and deliver this Agreement.
 8.14 Construction. Unless the context requires otherwise: (a) any pronoun used in this Agreement
shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns, pronouns and verbs shall include the plural and vice versa; (b) references to Sections refer to Sections of this Agreement; (c) the terms
“include,” “includes,” “including” or words of like import shall be deemed to be followed by the words “without limitation”; and (d) the terms “hereof,” “herein” or
“hereunder” refer to this Agreement as a whole and not to any particular provision of this Agreement. 
 [SIGNATURE PAGES FOLLOW]

  
 13 

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

			
	HOLDINGS:
	
	J.JILL, INC.
		
	By:	 	 /s/ Mark Webb

		 	Name: Mark Webb
		 	Title: Chief Financial Officer
	
	BORROWER:
	
	JILL ACQUISITION LLC
		
	By:	 	 /s/ Mark Webb

		 	Name: Mark Webb
		 	Title: Chief Financial Officer
	
	GUARANTOR:
	
	J. JILL GIFT CARD SOLUTIONS, INC.
		
	By:	 	 /s/ Mark Webb

		 	Name: Mark Webb
		 	Title: Chief Financial Officer

 [Signature Page to TL Forbearance Agreement] 

 
			
	ADMINISTRATIVE AGENT:
	
	JEFFERIES FINANCE LLC
		
	By:	 	 /s/ Paul Chisholm

		 	Name: Paul Chisholm
		 	Title: Managing Director

 [Signature Page to TL Forbearance Agreement] 

 
			
	FORBEARING LENDERS:
	
	[****]
		
	By:	 	 [****]

		 	Name: [****]
		 	Title: [****]

 [Signature Page to TL Forbearance Agreement]

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