Document:

Exhibit 10.1

 

Execution Version

 

LIMITED FORBEARANCE AGREEMENT

 

This
LIMITED FORBEARANCE AGREEMENT (this “Agreement”) is entered into as of May 14, 2020, among Tuesday Morning,
Inc., a Delaware corporation (the “Borrower”), each of the Subsidiary Guarantors (as such term is defined
in the Credit Agreement referenced below), Tuesday Morning Corporation, a Delaware corporation (“Parent”),
TMI Holdings, Inc., a Delaware corporation (“Intermediate Holdings” and together with the Borrower, the
Subsidiary Guarantors and Parent, the “Loan Parties”), JPMorgan Chase Bank, N.A., in its capacities
as administrative agent for itself and the other Secured Parties (the “Administrative Agent”), as Issuing
Bank and as Swingline Lender, and the Lenders party to this Agreement.

 

RECITALS:

 

A.           The
Borrower, the other Loan Parties, the Administrative Agent, the Issuing Bank, the Swingline Lender and the financial institutions
named therein as lenders (the “Lenders”) are parties to that certain Credit Agreement dated as of August
18, 2015 (as heretofore amended, restated, amended and restated, supplemented or otherwise modified, the “Credit Agreement”),
pursuant to which the Lenders agreed to make Revolver Loans and provide certain other financial accommodations to the Borrower.

 

B.            The
Loan Parties are indebted and obligated to the Administrative Agent and the Lenders for, without limitation, the Secured Obligations,
and pursuant to the Loan Documents, the Guarantors have guaranteed all of the Secured Obligations under the Loan Documents.

 

C.            The
Loan Parties acknowledge that (i) an Event of Default has occurred and is continuing under Section 7.01(m) of the Credit Agreement
as a result of the Borrower suspending the operation of its business in the ordinary course, and such Event of Default constitutes
a Specified Event of Default under the Credit Agreement (the “Specified Default”), and (ii) as a result
of the occurrence and continuance of the Specified Default, (A) a Liquidity Period is in effect and (B) the Lenders are not obligated
to make further Loans or issue or extend additional Letters of Credit.

 

D.            The
Loan Parties have requested that the Administrative Agent, the Issuing Bank, the Swingline Lender, and the Lenders, upon certain
terms and conditions set forth in this Agreement, forbear from exercising their rights and remedies for a limited period expiring
on the Forbearance Termination Date (as defined below) arising as a result of the occurrence and continuation of the Specified
Default as provided herein.

 

E.            The
Loan Parties have asserted that the COVID-19 virus has adversely affected their business.

 

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F.            The
Loan Parties have also requested that the Administrative Agent, the Issuing Bank, the Swingline Lender, and the Lenders, upon certain
terms and conditions set forth in this Agreement, forbear from exercising their rights and remedies during the Forbearance Period
(defined below) as to Events of Default occurring or continuing during the Forbearance Period that may arise as a result of the
Loan Parties’ independent determination not to make payments to their vendors, landlords, creditors or other Persons, or
otherwise failing to meet their obligations under agreements with such Persons, but in each and every case excluding Events of
Default as to the Administrative Agent, the Issuing Bank, the Swingline Lender, and the Lenders (the “Potential Defaults”).

 

G.            The
Administrative Agent, the Issuing Bank, the Swingline Lender, and the Lenders party hereto, constituting at a minimum the Required
Lenders, are willing to grant such forbearance subject to the terms and conditions of this Agreement and the other Loan Documents.

 

NOW, THEREFORE, in
consideration of, and in reliance upon, the representations, warranties, covenants and agreements contained herein and other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.             Definitions. In addition to the capitalized terms used and not otherwise defined herein, which shall have
the same meanings as set forth in the Credit Agreement, the following terms, for the purposes of this Agreement, shall have the
following meanings:

 

“Account
Control Agreement” means a control agreement, in form and substance acceptable to the Administrative Agent, which
grants the Administrative Agent “control” as defined in the UCC over any Securities Account or Commodities Account
maintained by any Loan Party, in each case, among the Administrative Agent, the applicable Loan Party and the applicable financial
institution at which such Securities Account or Commodities Account is maintained.

 

“Agent
Advisor” has the meaning given to such term in Section 6.6 hereof.

 

“Agent
Authorizations” has the meaning given to such term in Section 22 hereof.

 

“Agent
Counsel” has the meaning given to such term in Section 6.6 hereof.

 

“Borrower
Financial Advisor” has the meaning given to such term in Section 4.5 hereof.

 

“Borrower Financial
Advisor Engagement Letter” has the meaning given to such term in Section 4.5 hereof.

 

“Cash Flow Forecast”
has the meaning given to such term in Section 6.2(b) hereof.

 

“Commodities Account”
shall have the meaning set forth in Article 9 of the UCC.

 

“Data Room”
has the meaning given to such term in Section 6.3 hereof.

 

“Excess
Cash” means, at any time during the Forbearance Period, the aggregate unencumbered (other than by a Lien granted
under a Security Instrument) and unrestricted cash and cash equivalents of the Loan Parties that exceeds $32,000,000.

 

“Forbearance
Effective Date” has the meaning given to such term in Section 4 hereof.

 

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“Forbearance
Period” means the period commencing on the Forbearance Effective Date and continuing until the Forbearance Termination
Date.

 

“Forbearance
Termination Date” means 5:00 p.m. (Central time) on the earlier of (i) May 26, 2020, or (ii) the date on which a
Forbearance Termination Event occurs.

 

“Forbearance
Termination Event” means the occurrence of any of the following: (i) any representation or warranty made by the Borrower
or any Loan Party in this Agreement shall be false in any material respect when made, (ii) any of the Borrower or any Loan Party
shall fail to perform, observe or comply timely with each and every covenant, agreement or term contained in this Agreement, (iii)
any of the Borrower or any Loan Party shall (A) commence a voluntary proceeding seeking liquidation, reorganization, compromise,
arrangement, wind-up or dissolution, or other relief with respect to itself or its debts under any bankruptcy, insolvency, corporate,
partnership or other similar law now or hereafter in effect or seeking the appointment of a trustee, interim receiver, receiver,
liquidator, custodian, monitor or other similar official of it or a substantial part of its property, (B) consent to any such relief
or to the appointment of or taking possession by any such official in an involuntary case or other proceeding commenced against
it, or (C) make a general assignment for the benefit of its creditors, (iv) an involuntary proceeding shall be commenced against
any of the Borrower or any Loan Party seeking liquidation, reorganization, compromise, arrangement, wind-up or dissolution, or
other relief with respect to it or its debts under any bankruptcy, insolvency, corporate, partnership, or other similar law now
or hereafter in effect or seeking the appointment of a trustee, interim receiver, receiver, liquidator, custodian, monitor or other
similar official for it or a substantial part of its property, (v) any of the Borrower or any Loan Party or any of their respective
Subsidiaries asserting any claim or cause of action to repudiate or assert a defense to this Agreement, the Credit Agreement or
any other Loan Document or initiating any judicial, administrative or arbitration proceeding against the Administrative Agent,
the Swingline Lender, the Issuing Bank or any of the Lenders related to the foregoing or (vi) any Event of Default shall occur
or shall have occurred under this Agreement or any of the Loan Documents other than (A) the Potential Defaults, or (B) the Specified
Default.

 

“Great
American” means, collectively, Great American Group, LLC and its Affiliates.

 

“Initial
Cash Flow Forecast” has the meaning given to such term in Section 4.3 hereof.

 

“Lender-Related
Parties” has the meaning given to such term in Section 9 hereof.

 

“Offering
Memorandum” has the meaning given to such term in Section 6.3 hereof.

 

“Sale
Advisor” has the meaning given to such term in Section 4.4 hereof.

 

“Sale
Advisor Engagement Letter” has the meaning given to such term in Section 4.4 hereof.

 

“Securities
Account” shall have the meaning set forth in Article 8 of the UCC.

 

“Status
Calls” has the meaning given to such term in Section 6.4 hereof.

 

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“UCC”
means the Uniform Commercial Code as in effect from time to time in any applicable state or jurisdiction.

 

“WF
Concentration Account” has the meaning given to such term in Section 4.6 hereof.

 

2.            Forbearance. Each Loan Party specifically acknowledges the existence and continuation of the Liquidity Period
and the Specified Default. In reliance on the representations, warranties, covenants and agreements contained in this Agreement,
and subject to the satisfaction of each condition precedent set forth in Section 4 hereof but only so long as the Forbearance
Termination Date shall not have occurred and except as permitted by this Agreement, the Administrative Agent, the Swingline Lender,
the Issuing Bank and the Lenders hereby agree to forbear during the Forbearance Period from exercising their rights and remedies
under the Loan Documents and applicable law arising as a result of the occurrence or continuance of the Specified Default and the
Potential Defaults. Notwithstanding the foregoing, the forbearance granted by the Administrative Agent, the Swingline Lender, the
Issuing Bank, and the Lenders shall not constitute, and shall not be deemed to constitute, (a) a waiver of the Specified Default,
the Potential Defaults, or of any other Default or Event of Default under the Loan Documents or (b) a waiver of any rights or remedies
arising under the Loan Documents as a result of the existence and continuance of the Liquidity Period. On and after the Forbearance
Termination Date, the Administrative Agent’s, the Swingline Lender’s, the Issuing Bank’s and the Lenders’
agreement hereunder to forbear shall terminate automatically without further act or action by any such Persons, and the Administrative
Agent, the Swingline Lender, the Issuing Bank and the Lenders shall be entitled to exercise any and all rights and remedies available
to them under this Agreement or the other Loan Documents, at law, in equity or otherwise without any further lapse of time, expiration
of applicable grace periods or requirements of notice, all of which are hereby expressly waived by each Loan Party. For the avoidance
of doubt, (i) the foregoing forbearance shall not prohibit the Administrative Agent from delivering notices relating to the Borrowing
Base or notices of any other Defaults, Events of Default or a Forbearance Termination Event, (ii) any Overadvance that occurs under
Section 2.24 of the Credit Agreement shall not be subject to forbearance, and (iii) the foregoing forbearance shall not limit or
prohibit the Administrative Agent from making Protective Advances in its discretion pursuant to Section 2.25 of the Credit Agreement.

 

3.            No
Further Credit Extensions; Revolver Commitment Reduction; Removal of Swingline Loans.

 

3.1.           
No Further Credit Extensions. The parties hereto agree that (a) during the Forbearance Period, the Lenders
and the Issuing Bank, as applicable, shall not be obligated to (i) fund any Revolver Loans, (ii) issue or renew any Letters of
Credit or (iii) otherwise make any credit extensions to or on behalf of the Loan Parties and (b) from the date hereof including
from and after the Forbearance Termination Date, the Administrative Agent in its capacity as Swingline Lender shall no longer advance
new Swingline Loans to the Borrower pursuant to the Credit Agreement.

 

3.2.           
Revolver Commitment Reduction. Pursuant to Section 2.08(d) of the Credit Agreement, and subject to the satisfaction
of each condition precedent set forth in Section 4 hereof, the Borrower and the Administrative Agent agree to a permanent
reduction of the Revolver Commitments, on a Pro Rata basis for each Lender, from $180,000,000 to $130,000,000. Schedule 2.01 of
the Credit Agreement is hereby amended and restated in its entirety in the form of Schedule 2.01 attached hereto to reflect such
revised Revolver Commitments. From the date hereof including from and after the Forbearance Termination Date, the Revolver Commitments
shall remain at $130,000,000 until the Revolver Commitments are otherwise increased or decreased in accordance with the Credit
Agreement.

 

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4.            Conditions
Precedent. This Agreement shall be effective beginning on the first date that each condition precedent set forth in this
Section 4 is satisfied (the “Forbearance Effective Date”):

 

4.1.           Signed
Agreement. The Administrative Agent shall have received counterparts of this Agreement duly executed by the Administrative
Agent, the Swingline Lender, the Issuing Bank, the Loan Parties, and the Required Lenders.

 

4.2.           Expenses.
The Administrative Agent and related advisors shall have received payment of all reasonable and documented out-of-pocket costs
and expenses (including the reasonable and documented legal fees of Agent Counsel and the reasonable and documented advisor fees
of Agent Advisor) incurred by them for which invoices have been submitted on or prior to the Forbearance Effective Date; provided
that any such documentation shall be in summary format acceptable to the Administrative Agent.

 

4.3.           Initial Cash Flow Forecast. The Administrative Agent shall have received the Initial Cash Flow Forecast, which
must be in form and substance acceptable to the Administrative Agent (the “Initial Cash Flow Forecast”).

 

4.4.           Engagement of Sale Advisor. The Loan Parties shall have retained a sale advisor, which sale advisor shall
be a firm with national credentials that is reasonably acceptable to the Administrative Agent; it being understood that Great American
shall be deemed acceptable to the Administrative Agent (the “Sale Advisor”), pursuant to the execution
and delivery of an engagement letter in form and substance reasonably acceptable to the Administrative Agent (the “Sale
Advisor Engagement Letter”); provided, however, if Great American is selected as the Sale Advisor, the Loan Parties
acknowledge that Great American is currently providing certain services to the Administrative Agent, and any engagement of Great
American would be subject to further steps of the Administrative Agent and Great American terminating their current engagement
and such other terms as the Administrative Agent determines are necessary or advisable in order for Great American to provide services
to the applicable Loan Parties as the Sale Advisor.

 

4.5.           Engagement
of Financial Advisor. The Loan Parties have retained AlixPartners, LLP as its financial advisor (the “Borrower
Financial Advisor”), pursuant to the execution and delivery of an engagement letter that shall be provided to the
Administrative Agent (the “Borrower Financial Advisor Engagement Letter”).

 

4.6.           Springing
Concentration Account Control. The Loan Parties shall have caused the Borrower’s Main Concentration Account
No.: [REDACTED] held at Wells Fargo Bank, National Association (such Deposit Account, the “WF Concentration
Account”) to be subject to a Deposit Account Control Agreement in form and substance acceptable to the
Administrative Agent.

 

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4.7.           Forbearance
Fees. The Borrower shall have paid to the Administrative Agent and each Lender party hereto any fees required to be paid
pursuant to any fee letter in form and substance reasonably acceptable to the Administrative Agent executed in connection with
this Agreement.

 

4.8.           [Reserved].

 

4.9.           Other
Documentation. The Administrative Agent shall have received such other documents, instruments and agreements as it may
have reasonably requested on or prior to the date of this Agreement (to the extent that the Administrative Agent made such request
at least one (1) Business Day prior to the Forbearance Effective Date), all in form and substance acceptable to the Administrative
Agent.

 

Upon the satisfaction
of the foregoing conditions, the Administrative Agent shall advise the other parties hereto in writing of the occurrence of the
Forbearance Effective Date.

 

5.            Representations
and Warranties. To induce the Administrative Agent, the Issuing Bank, the Swingline Lender and the Lenders to enter into
this Agreement, each Loan Party hereby represents and warrants as of the Forbearance Effective Date as follows:

 

5.1.           Organization;
Powers. Each of the Loan Parties is duly organized, validly existing and in good standing under the laws of the jurisdiction
of its organization, has all requisite power and authority, and has all material governmental licenses, authorizations, consents
and approvals necessary, to own its assets and to carry on its business as now conducted, and is qualified to do business in,
and is in good standing in, every jurisdiction where such qualification is required, except where failure to have such power,
authority, licenses, authorizations, consents, approvals and qualifications would not reasonably be expected to have a Material
Adverse Effect.

 

5.2.           Authority;
Enforceability. The execution, delivery and performance by each Loan Party of this Agreement are within such Loan Party’s
corporate, limited partnership, limited liability company, or other organizational powers and have been duly authorized by all
necessary corporate, limited partnership, limited liability company, or other organizational and, if required, stockholder, partner,
or member action (including any action required to be taken by any class of directors, partners, members, or managers, as applicable,
of such Loan Party or any other Person, whether interested or disinterested, in order to ensure the due authorization of this
Agreement). This Agreement has been duly executed and delivered by such Loan Party and constitutes a legal, valid and binding
obligation of such Loan Party, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization,
moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of
whether considered in a proceeding in equity or at law.

 

5.3.           Approvals; No Conflicts The execution, delivery and performance by each Loan Party of this Agreement (a) do
not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority or any
other third Person (including shareholders or any class of directors, whether interested or disinterested, of the Borrower or any
other Person), nor is any such consent, approval, registration, filing or other action necessary for the validity or enforceability
of any Loan Document or the consummation of the transactions contemplated thereby, except such as have been obtained or made and
are in full force and effect, (b) will not violate any applicable law or regulation or the charter, bylaws or other organizational
documents of the Loan Parties or any order of any Governmental Authority, (c) will not violate or result in a default under any
indenture, material agreement or other material instrument binding upon the Borrower or any other Loan Parties or any of their
property, or give rise to a right thereunder to require any payment to be made by the Borrower or such other Loan Party and (d)
will not result in the creation or imposition of any Lien on any property of the Borrower or any other Loan Party (other than the
Liens created by the Loan Documents).

 

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5.4.           No
Defenses. No Loan Party has any defenses to payment, counterclaims, or rights of setoff or recoupment with respect to
any obligations applicable to such Person owing to the Administrative Agent, the Swingline Lender, the Issuing Bank or any Lender
as of the Forbearance Effective Date, including, without limitation, the Revolver Loans and the other Secured Obligations. Without
taking into effect the terms, conditions, and agreements set forth in this Agreement, as a result of the Specified Default, the
Administrative Agent has the right to, in its sole and absolute discretion or at the direction of the Required Lenders, declare
the unpaid principal amount of all outstanding Revolver Loans, all interest accrued and unpaid thereon, and all other amounts
owing or payable under the Credit Agreement and under any other Loan Document to be immediately due and payable.

 

5.5.           No
Other Defaults. Except for the Specified Default, no other Default or Event of Default has occurred and is continuing.

 

5.6.           Principal
Balance; Letters of Credit. As of the close of business on May 5, 2020, (a) the outstanding principal amount of the Revolver
Loans was $88,350,000.00, and (b) the aggregate stated amount of outstanding Letters of Credit was $8,823,449.00.

 

5.7.           Complete Disclosure. None of the factual information furnished by or on behalf of the Loan Parties to the
Administrative Agent or any Lender for purposes of or in connection with this Agreement or the other Loan Documents (as modified
or supplemented by other information so furnished) contains any material misstatement of fact or omits to state any material fact
(other than industry-wide risks normally associated with the types of business conducted by the Loan Parties to the extent that
such risks do not have a disproportionate effect on the Loan Parties (in comparison to the effect of such risks on other similarly
situated parties associated with such types of business)) necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading.

 

6.            Covenants.
Each Loan Party shall comply timely with the covenants set forth in this Section 6 in addition to the covenants in the
Credit Agreement and any other Loan Documents.

 

6.1.           Excess
Cash Prepayments; Scheduled Prepayments.

 

(a)            Mandatory
Prepayments with Excess Cash. During the Forbearance Period, if the Loan Parties have Excess Cash at the end of any Business
Day, then the Borrower shall, on the next Business Day, prepay the Revolver Loans in an aggregate principal amount equal to such
excess.

 

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(b)            Principal Payments. On or prior to Thursday, May 14, 2020, the Borrower shall pay to the Administrative Agent,
for its own account or for the account of the Issuing Bank, the Swingline Lender or the Lenders, a prepayment of the Revolver Loans
in the principal amount equal to $5,000,000. On or prior to Thursday, May 20, 2020, the Borrower shall pay to the Administrative
Agent, for its own account or for the account of the Issuing Bank, the Swingline Lender or the Lenders, a prepayment of the Revolver
Loans in the principal amount equal to $5,000,000.

 

(c)            Payments. Prepayments pursuant to this Section 6.1 shall be accompanied by accrued interest on such principal
amount to the extent required by Section 2.13(d)(ii) of the Credit Agreement and which for purposes of clarity, shall be in addition
to the required payment to be made pursuant to Section 4.4 hereof.

 

6.2.           Additional
Reporting.

 

(a)            Business
Plan. The Loan Parties shall deliver to the Administrative Agent, by no later than 4:00 p.m. Central Time on Friday, May
15, 2020, a business plan in form and substance acceptable to the Administrative Agent.

 

(b)            Cash
Flow Forecast Delivery and Compliance. On May 12, 2020, on May 19, 2020, on May 26, 2020 and on each Tuesday thereafter,
the Loan Parties shall deliver to the Administrative Agent by no later than 12:00 Noon Central Time on each applicable date, (i)
an updated weekly 13-week cash flow forecast, in substantially the form of the Initial Cash Flow Forecast and in substance acceptable
to the Administrative Agent, setting forth all sources and uses of cash and beginning and ending cash balances (together with
the Initial Cash Flow Forecast, the “Cash Flow Forecast”) and (ii) a variance report, reconciling the
prior week’s cash flow forecast to the actual sources and uses of cash for the prior week, along with a line-by-line reconciliation
and explanation of material variances. For each period set forth in the Cash Flow Forecast, the actual expenditures by the Loan
Parties for such period shall not in any event exceed on an aggregate basis, twenty percent (20%) of the amount budgeted for such
period in such Cash Flow Forecast. The Loan Parties shall operate strictly in accordance with the Cash Flow Forecast (subject
to the variances, if any, identified above) and shall pay only those actual, ordinary and necessary operating expenses of the
Loan Parties business in compliance with the Cash Flow Forecast; provided that the Loan Parties’ actual sales shall not
be subject to the Cash Flow Forecast. The Loan Parties shall also provide the Administrative Agent and the advisors assisting
the Administrative Agent with reasonable access to their management during normal business hours to discuss any variances.

 

(c)            Perfection
Certificate. To the extent a form perfection certificate is provided by the Administrative Agent to the Loan Parties on
or before the Forbearance Effective Date, the Loan Parties shall deliver to the Administrative Agent, by no later than 4:00 p.m.
Central Time on Friday, May 15, 2020 (or such later date as may be agreed to by the Administrative Agent), a perfection certificate
in form and substance acceptable to the Administrative Agent.

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(d)           Working
Capital Plan. By no later than 4:00 p.m. Central Time on Friday, May 15, 2020, the Loan Parties shall have delivered to
the Administrative Agent a preliminary working capital plan for the Loan Parties for the period covered by the Initial Cash Flow
Forecast, setting forth a description of the cash needs and cash uses of the Loan Parties for such period in form and substance
acceptable to the Administrative Agent.

 

(e)            Borrowing
Base Certificates. The Borrower shall deliver to the Administrative Agent weekly Borrowing Base Certificates by Thursday
of every week commencing May 14, 2020 prepared as of the close of business on Saturday of the previous week, which weekly Borrowing
Base Certificates shall be in form and as attached hereto as Schedule 6.2(e) or if not attached then in form and substance acceptable
to the Agent.

 

6.3.           Monetization
Toggle. By no later than 4:00 p.m. Central Time on Friday, May 25, 2020, the Loan Parties shall, unless otherwise agreed
by the Administrative Agent in writing, either (i) pay any and all amounts due under the Loan Documents in full in cash, or (ii)
deliver to the Administrative Agent a plan for the sale of all assets securing the Secured Obligations acceptable to the Administrative
Agent which plan shall include the dates by which the Loan Parties shall (A) deliver to the Administrative Agent an offering document
or “teaser” for the marketing and disposition of the Loan Parties’ assets securing the Secured Obligations in
form and substance reasonably acceptable to the Administrative Agent (the “Offering Memorandum”), (B)
establish an operational data room reasonably acceptable to the Administrative Agent to facilitate such marketing and disposition
(the “Data Room”) and (C) deliver to the Administrative Agent written information or materials created
by or received by any Loan Party prior to the Forbearance Effective Date that could reasonably be expected to be material to an
evaluation of the Loan Parties’ efforts to conduct a sale and (B) commence steps to effectuate such plan.

 

6.4.           Status
Calls. On May 15, 2020 and on each Friday thereafter, cause the Sale Advisor, the Borrower Financial Advisor and each
of their respective representative to be available for conference calls during normal business hours (“Status Calls”)
for the purpose of providing the Administrative Agent and the advisors assisting the Administrative Agent with an update on the
status and progress of any restructuring and/or sale diligence, negotiations and documentation, accompanied, in each case, by
a written summary of such update which may, in the Administrative Agent’s sole discretion, be provided to the Lenders. In
addition to the foregoing, the Loan Parties agree that Status Calls shall be conducted (i) promptly following a request by the
Administrative Agent and (ii) at least once per week.

 

6.5.           Modifications
of Engagement Letters. The Loan Parties shall not amend, supplement or modify, or permit the amendment, the supplementing
or modification of, any provision of the Sale Advisor Engagement Letter or the Borrower Financial Advisor Engagement Letter, in
each case, in any manner that is adverse in any material respect to the interest of the Administrative Agent or the Lenders without
the consent of the Administrative Agent.

 

6.6.           Access;
Cooperation. Upon reasonable prior notice and reasonable coordination with, the Administrative Agent and related representatives
and consultants shall have reasonable access during normal business hours to the Loan Parties’ business premises and to
the Collateral to review, audit, appraise and evaluate the Collateral and to inspect the financial records and other records of
the Loan Parties concerning the operation of their businesses, their financial condition, the transfers and expenditures of funds
generated therefrom, the accrual of expenses relating thereto, and any and all other records relating to the Collateral or the
operations of any of the Loan Parties. Each Loan Party will fully cooperate with the Administrative Agent and related representatives
and consultants (including Agent Counsel and Agent Advisor) regarding such reviews, audits, evaluations and inspections, and the
Loan Parties shall make their employees, consultants and professionals reasonably available to the Administrative Agent and related
representatives and consultants (including, without limitation, the Sale Advisor and the Borrower Financial Advisor) in conducting
such reviews, evaluations and inspections, in each case, during normal business hours (it being understood that a representative
of the Borrower is allowed to be present in any discussions with such employees, consultants and professionals). No such reviews,
audits, appraisals, evaluations or inspections or visits shall unduly interfere with the business or operations of the Borrower,
nor result in any damage to the Loan Parties’ property or other Collateral. The Loan Parties acknowledge that (a) Vinson
 & Elkins L.L.P. has been engaged as the Administrative Agent’s legal counsel (“Agent Counsel”)
and (b) Berkeley Research Group, LLC ( “Agent Advisor”) has been engaged by Agent as restructuring and
financial advisor. The Loan Parties agree to pay all reasonable fees and documented out of pocket fees, costs and expenses of
Agent Counsel and Agent Advisor promptly (but, in any event, within two (2) Business Days) upon submission of invoices therefor
(which amounts shall also constitute Secured Obligations secured by the Collateral).

 

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6.7.           Accounts.
At all times during the Forbearance Period:

 

(a)            Each
Loan Party shall cause each bank or other depository institution at which any Deposit Account is maintained for the collection
of sales revenue, payments by any Account Debtor and other cash receipts, to transfer to the WF Concentration Account by standing
wire (or alternative funds transfer method), on a daily basis, the full amount of the collected and available balance in each
such Deposit Account maintained by any Loan Party at the beginning of each Business Day (other than an amount up to $5,000 that
can be kept in each account for overdraft protection); and

 

(b)           Neither
the Borrower nor any Loan Party shall make any material modifications to the cash management procedures and controls in effect
as of the Forbearance Effective Date without the prior written consent of the Administrative Agent. Without limiting the foregoing,
neither the Borrower nor any Loan Party shall open any Deposit Account, Commodities Account or Securities Account unless prior
written notice has been provided to the Administrative Agent and, if the Administrative Agent so requires, such account is subject
to a Deposit Account Control Agreement or an Account Control Agreement, as applicable, in form and substance acceptable to the
Administrative Agent prior to the utilization of such account.

 

6.8.           Further
Information. In addition to any notices or information required to be given under the Loan Documents, each Loan Party
will provide the Administrative Agent with (a) written notice within one (1) Business Day of the occurrence of any Forbearance
Termination Event and/or any breach or violation of this Agreement by any of the Borrower or any Loan Party, (b) together with
the delivery of the weekly Cash Flow Forecast, information on the status of written notices regarding any defaults under the Loan
Parties’ leases and (c) such other information as may be reasonably requested by the Administrative Agent from time to time,
promptly upon such request, including, without limitation (i) copies of any bank or other financial institution statements,
(ii) accounts receivable and accounts payable agings and (iii) transactional documentation, including, without limitation,
letters of intent or offers to purchase, lease or license of any portion, all, or substantially all of the assets or ownership
interests of any of the Borrower or any Loan Party, and letters of intent or commitments for any capital investment, loan or other
financing in or to the Borrower.

 

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6.9.           No
Control. No act committed or action taken by the Administrative Agent under this Agreement or the other Loan
Documents will be used, construed, or deemed to hold the Administrative Agent to be in control of any of the Borrower or any
Loan Party, or the governance, management or operations of any of the Borrower or any Loan Party for any purpose, without
limitation, or to be participating in the management of any of the Borrower or any Loan Party or acting as a
 “responsible person” or “owner or operator” or a person in “control” with respect to the
governance, management or operation of any of the Borrower or any Loan Party or their respective businesses (as such terms,
or any similar terms, are used in the Code, Title 11 of the United States Code entitled “Bankruptcy”, or the
Comprehensive Environmental Response, Compensation, and Liability Act of 1980, each as may be amended from time to time, or
any other federal or state statute, at law, in equity, or otherwise) by virtue of the interests, rights, and remedies granted
to or conferred upon the Administrative Agent under this Agreement or the other Loan Documents.

 

Notwithstanding anything
to the contrary set forth in any Loan Document, it is acknowledged and agreed that the failure by any Loan Party to comply with
any covenant set forth in this Section 6 in any respect shall be deemed an immediate Event of Default and, for the avoidance of
doubt, such Loan Party shall not be entitled to any grace or cure period for such non-compliance that may be provided for in any
other Loan Document.

 

7.            Preservation
of Collateral. Each Loan Party shall maintain the Liens and security interests in the Collateral created by the Loan Documents
as first priority, perfected Liens and security interests and shall defend such Liens and security interests against the claims
and demands of all Persons whomsoever except for Liens permitted by Section 6.02 of the Credit Agreement. At any time and from
time to time, upon the request of the Administrative Agent, and at the sole expense of the Loan Parties, each of the Loan Parties
will promptly and duly give, execute, deliver, indorse, file or record any and all amendments, notices (including, without limitation,
notifications to financial institutions and any other Person), contracts, agreements, assignments, certificates, stock powers
or other instruments, obtain any and all governmental approvals and consents and take or cause to be taken any and all steps or
acts that may be necessary or advisable or as the Administrative Agent may reasonably request to create, perfect, establish the
priority of, or to preserve the validity, perfection or priority of, the Liens granted by the Loan Documents or to enable the
Administrative Agent to enforce its rights, remedies, powers and privileges under the Loan Documents with respect to such Liens
or to otherwise obtain or preserve the full benefits of the Loan Documents and the rights, powers and privileges therein granted.

 

    	 	 11	 

     

    

 

8.            Ratification of Loan Documents and Collateral. Except as modified by this Agreement, each Loan Party hereby
acknowledges, ratifies, reaffirms and agrees that each of the Loan Documents to which it is a party and the first priority (subject
only to Liens permitted by Section 6.02 of the Credit Agreement), perfected Liens and security interests created thereby in favor
of the Administrative Agent, for the benefit of the Secured Parties, in the Collateral, are and will remain in full force and effect
and binding on such Person, and are enforceable in accordance with their respective terms and applicable law. By its execution
hereof, each Loan Party (in its individual capacity and in its capacity as member, shareholder or partner of each other Loan Party,
as applicable) acknowledges, ratifies and reaffirms all of the terms and provisions of the Loan Documents and the enforceability
thereof against it, which terms and provisions, except as modified herein, are incorporated by reference as of the Forbearance
Effective Date as if set forth herein including, without limitation, all promises, agreements, warranties, representations, covenants,
releases, and indemnifications contained therein. Without limitation of the foregoing, (i) the Borrower hereby acknowledges, ratifies
and confirms the Credit Agreement and all of its debts and obligations to the Administrative Agent, the Swingline Lender, the Issuing
Bank and the Lenders thereunder and (ii) each Loan Party hereby acknowledges, ratifies and confirms its guaranty of the Secured
Obligations under the Credit Agreement and all of its debts and obligations to the Administrative Agent, the Issuing Bank, the
Swingline Lender, and the Lenders thereunder.

 

9.            NO
CLAIMS; RELEASE; COVENANT NOT TO SUE. EACH LOAN PARTY (IN ITS OWN RIGHT AND
ON BEHALF OF ITS PREDECESSORS, LEGAL REPRESENTATIVES, SUCCESSORS AND ASSIGNS) HEREBY EXPRESSLY AND UNCONDITIONALLY ACKNOWLEDGES
AND AGREES THAT, AS OF THE DATE HEREOF, IT HAS NO SETOFFS, COUNTERCLAIMS, ADJUSTMENTS, RECOUPMENTS, DEFENSES, CLAIMS, CAUSES OF
ACTION, ACTIONS OR DAMAGES OF ANY CHARACTER OR NATURE, WHETHER CONTINGENT, NONCONTINGENT, LIQUIDATED, UNLIQUIDATED, FIXED, MATURED,
UNMATURED, DISPUTED, UNDISPUTED, LEGAL, EQUITABLE, SECURED OR UNSECURED, KNOWN OR UNKNOWN, ACTUAL OR PUNITIVE, FORESEEN OR UNFORESEEN,
DIRECT, OR INDIRECT, AGAINST ADMINISTRATIVE Agent, THE SWINGLINE LENDER,
any lender, THE ISSUING BANK, ANY OF their RESPECTIVE AFFILIATES OR ANY OF their RESPECTIVE OFFICERS, DIRECTORS, AGENTS, EMPLOYEES,
ATTORNEYS, consultants to attorneys (INCLUDING, WITHOUT LIMITATION, AGENT COUNSEL AND AGENT ADVISOR) OR REPRESENTATIVES OR ANY
OF THEIR RESPECTIVE PREDECESSORS, SUCCESSORS OR ASSIGNS (COLLECTIVELY, THE “LENDER-RELATED PARTIES”) OR ANY
GROUNDS OR CAUSE FOR REDUCTION, MODIFICATION, SET ASIDE OR SUBORDINATION OF THE SECURED OBLIGATIONS OR ANY LIENS OR SECURITY INTERESTS
GRANTED OR CREATED UNDER OR IN CONNECTION WITH ANY LOAN DOCUMENT IN FAVOR OF THE ADMINISTRATIVE AGENT. IN
PARTIAL CONSIDERATION FOR THE AGREEMENT OF THE ADMINISTRATIVE AGENT, THE SWINGLINE
LENDER, the LENDERs AND THE ISSUING BANK TO ENTER INTO THIS AGREEMENT, EACH LOAN PARTY HEREBY KNOWINGLY AND UNCONDITIONALLY WAIVES
AND FULLY AND FINALLY RELEASES AND FOREVER DISCHARGES THE LENDER-RELATED PARTIES FROM, and covenants not to sue the Lender-related
parties for, ANY AND ALL SETOFFS, COUNTERCLAIMS, ADJUSTMENTS, RECOUPMENTS,
CLAIMS, DEMANDS, CAUSES OF ACTION, ACTIONS, GROUNDS, CAUSES, DAMAGES, REMEDIES, COSTS AND EXPENSES OF EVERY NATURE AND CHARACTER,
WHETHER CONTINGENT, NONCONTINGENT, LIQUIDATED, UNLIQUIDATED, FIXED, MATURED, UNMATURED, DISPUTED, UNDISPUTED, LEGAL, EQUITABLE,
SECURED OR UNSECURED, KNOWN OR UNKNOWN, ACTUAL OR PUNITIVE, FORESEEN OR UNFORESEEN, DIRECT OR INDIRECT, ARISING OUT OF OR FROM
OR RELATED TO ANY LAW, STATUTE, RULE, REGULATION, OR ANY OF THE LOAN DOCUMENTS, WHETHER AT LAW, IN EQUITY, OR OTHERWISE, WHICH
any Loan Party OWNS AND HOLDS as of the date hereof, OR HAS AT ANY TIME prior to the date hereof OWNED OR HELD, SUCH WAIVER, RELEASE
AND DISCHARGE BEING MADE WITH FULL KNOWLEDGE AND UNDERSTANDING OF THE CIRCUMSTANCES AND EFFECTS OF SUCH WAIVER, RELEASE AND DISCHARGE
AND AFTER HAVING CONSULTED LEGAL COUNSEL OF ITS OWN CHOOSING WITH RESPECT THERETO. THIS SECTION IS IN ADDITION TO ANY OTHER RELEASE
OF ANY OF THE LENDER-RELATED PARTIES BY ANY LOAN PARTY AND SHALL NOT IN ANY WAY LIMIT ANY OTHER RELEASE, COVENANT NOT TO SUE,
OR WAIVER BY ANY LOAN PARTY IN FAVOR OF ANY OF THE LENDER-RELATED PARTIES, IT BEING THE INTENT OF THE LOAN PARTIES THAT THIS RELEASE
AND COVENANT NOT TO SUE BE AS BROAD AND INCLUSIVE AS PERMITTED BY APPLICABLE LAW.

 

    	 	 12	 

     

    

 

10.          No Obligation. Each Loan Party hereby acknowledges and understands that upon the expiration or earlier termination
of the Forbearance Period, if the Specified Default has not been waived by written agreement in accordance with the Credit Agreement,
or if there shall at any time exist any other Event of Default, then the Administrative Agent, the Swingline Lender, the Lenders
and the Issuing Bank shall have the right to proceed to exercise any or all available rights and remedies, which may include, without
limitation, foreclosure on the Collateral and/or institution of legal or equitable proceedings. The Administrative Agent, the Swingline
Lender, the Lenders and the Issuing Bank shall have no obligation whatsoever to extend the maturity of the Secured Obligations,
waive any Default or Event of Default, defer any payments, or further forbear from exercising their rights and remedies.

 

11.          No
Implied Waivers. No failure or delay on the part of the Administrative Agent, the Swingline Lender, any Lender or the
Issuing Bank in exercising, and no course of dealing with respect to, any right, power or privilege under this Agreement, the
Credit Agreement or any other Loan 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 Loan Document preclude any other or further
exercise thereof or the exercise of any other right, power or privilege.

 

12.          INDEMNIFICATION.
THE LOAN PARTIES HEREBY EXPRESSLY ACKNOWLEDGE, AGREE AND REAFFIRM THEIR INDEMNIFICATION OBLIGATIONS TO THE INDEMNITEES
SET FORTH IN THE LOAN DOCUMENTS. EACH OF THE LOAN PARTIES FURTHER ACKNOWLEDGES, AGREES AND REAFFIRMS THAT ALL SUCH INDEMNIFICATION
OBLIGATIONS SET FORTH IN THE LOAN DOCUMENTS SHALL SURVIVE THE EXPIRATION OF THE FORBEARANCE PERIOD AND THE TERMINATION OF THIS
AGREEMENT, THE CREDIT AGREEMENT, THE OTHER LOAN DOCUMENTS AND THE PAYMENT IN FULL OF THE OBLIGATIONS.

 

13.          Survival.
All promises, representations, warranties, covenants, and agreements made by the Loan Parties in this Agreement or any other Loan
Document will survive the execution and delivery of this Agreement and any Forbearance Termination Date in connection with the
Agreement, and no investigation by the Administrative Agent, any Lender, the Swingline Lender or the Issuing Bank or any closing
will affect any right of the Administrative Agent, the Lenders, the Swingline Lender and the Issuing Bank to rely upon such promises,
representations, warranties, covenants, and agreements.

 

    	 	 13	 

     

    

 

14.          Review
and Construction of Documents. Each Loan Party hereby acknowledges, and represents and warrants to the Administrative
Agent, the Lenders, the Swingline Lender and the Issuing Bank that, such Loan Party has (a) had the opportunity to consult
with legal counsel of its own choice and has been afforded an opportunity to review this Agreement with its legal counsel, (b) reviewed
this Agreement and fully understands the effects thereof and all terms and provisions contained herein, and (c) executed
this Agreement of its own free will and volition. The recitals contained in this Agreement shall be construed to be part of the
operative terms and provisions of this Agreement.

 

15.          ENTIRE AGREEMENT; AMENDMENT. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS AS INCORPORATED HEREIN EMBODY THE
FINAL, ENTIRE AGREEMENT BETWEEN THE PARTIES HERETO REGARDING THE MATTERS CONTAINED HEREIN, INCLUDING THE ADMINISTRATIVE AGENT’S,
THE SWINGLINE LENDER’S, THE LENDERS’ AND THE ISSUING BANK’S FORBEARANCE WITH RESPECT TO THEIR RIGHTS AND REMEDIES
ARISING AS A RESULT OF THE SPECIFIED DEFAULT, 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. The
provisions of this Agreement may be amended or waived only by an instrument in writing signed by the Loan Parties, the Administrative
Agent, the Swingline Lender, the Issuing Bank and Lenders party hereto. The Loan Documents, as modified by this Agreement, continue
to evidence the agreement of the parties with respect to the subject matter thereof.

 

16.          Fees and Expenses. The Borrower shall pay all reasonable and documented out of pocket fees and expenses incurred
by the Administrative Agent, including fees and expenses of Agent Counsel and Agent Advisor, in connection with the preparation,
negotiation and execution of this Agreement, and any acts or actions taken by the Administrative Agent in the collection of amounts
owed by the Loan Parties, or the evaluation, pursuit, or enforcement of its claims, liens, security interest, or any rights or
remedies under the Loan Documents, this Agreement, and applicable law.

 

    	 	 14	 

     

    

 

17.          Notices.
All notices, requests, demands and other communications under this Agreement will be given in accordance with the provisions of
the Credit Agreement, and if to JPMorgan Chase Bank, N.A., as the Administrative Agent, a Lender, the Swingline Lender or the
Issuing Bank, at the following address:

 

JPMorgan Chase Bank, N.A.

2200 Ross Avenue 9th Floor

Dallas, Texas 75201

Attn: Jon Eckhouse

Telecopy: 214-965-2594

E-mail: jon.eckhouse@jpmorgan.com

 

With a copy to:

 

Vinson & Elkins L.L.P.

Trammell Crow Center

2001 Ross Avenue, Suite 3900

Dallas, Texas 75201-2975

Attn: William L. Wallander

E-mail: bwallander@velaw.com

 

18.          Successors and Assigns. This Agreement will be binding upon, and will inure to the benefit of, the parties
hereto and their respective heirs, legal representatives, successors and assigns, provided that no Loan Party may assign any rights
or obligations under this Agreement without the prior written consent of the Administrative Agent, the Swingline Lender, the Issuing
Bank and the Lenders in accordance with the terms of the Credit Agreement.

 

19.          Tolling
of Statutes of Limitation. The parties hereto agree that all applicable statutes of limitations with respect to the Loan
Documents shall be tolled and not begin running until the Forbearance Termination Date.

 

20.          Arms-Length/Good
Faith. This Agreement has been negotiated at arms-length and in good faith by the parties hereto.

 

21.          Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State
of New York and applicable laws of the United States of America.

 

22.          Interpretation.
Wherever the context hereof will so require, the singular shall include the plural, the masculine gender shall include the feminine
gender and the neuter and vice versa. The headings, captions and arrangements used in this Agreement are for convenience only
and shall not affect the interpretation of this Agreement. Except as expressly and contrarily set forth herein, any determination,
agreement, decision, consent, election, discretion, approval, acceptability, acceptance, waiver, designation, authorization, satisfactoriness,
or other similar circumstance or matter of or by the Administrative Agent hereunder or related hereto, without limitation (the
 “Agent Authorizations”), shall be interpreted and construed to mean that each Agent Authorization shall
be in the Administrative Agent’s sole and absolute discretion as to the form and substance of same.

 

23.          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.

 

    	 	 15	 

     

    

 

24.          Counterparts.
This Agreement may be executed and delivered in any number of counterparts, and by different parties hereto on separate counterparts,
each of which when so executed and delivered shall be deemed to be an original and all of which counterparts taken together shall
constitute one and the same instrument; provided, that no party shall be bound by this Agreement until the Loan Parties, the Administrative
Agent, the Swingline Lender, the Issuing Bank and the Required Lenders have executed a counterpart hereof. Execution of this Agreement
via facsimile or other electronic transmission (e.g., “.pdf”) shall be effective, and signatures received via facsimile
or other electronic transmission shall be binding upon the parties hereto and shall be effective as originals.

 

25.          Further
Assurances. Each Loan Party agrees to execute, acknowledge, deliver, file and record such further certificates, instruments
and documents, and to do all other acts and things, as may be reasonably requested by the Administrative Agent as necessary or
advisable to carry out the intents and purposes of this Agreement.

 

26.          Loan
Documents. This Agreement is a Loan Document for all purposes of the Credit Agreement and the other Loan Documents. To
the extent of a conflict or inconsistency between this Agreement and any of the other Loan Documents, this Agreement shall control.

 

27.          WAIVER OF JURY TRIAL. EACH OF THE LOAN PARTIES HEREBY WAIVES ITS RIGHT TO A JURY TRIAL WITH RESPECT TO ANY
ACTION OR CLAIM ARISING OUT OF ANY DISPUTE IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS, ANY RIGHTS OR
OBLIGATIONS HEREUNDER OR THEREUNDER OR THE PERFORMANCE OF SUCH RIGHTS AND OBLIGATIONS. EACH OF THE LOAN PARTIES (A) CERTIFIES
THAT NO REPRESENTATIVE OR ATTORNEY OF THE ADMINISTRATIVE AGENT, THE SWINGLINE LENDER, THE ISSUING BANK OR ANY LENDER HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES
THAT THE ADMINISTRATIVE AGENT, THE SWINGLINE LENDER, THE LENDERS AND THE ISSUING BANK HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT
BY, AMONG OTHER THINGS, THE WAIVER AND CERTIFICATIONS CONTAINED HEREIN.

 

[Signatures Follow]

 

    	 	 16	 

     

    

 

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement as of the date first above written.

 

	BORROWER:	TUESDAY MORNING, INC.
	 	 	 
	 	By:	/s/ Steven R. Becker
	 	Name:	Steven R. Becker
	 	Title: 	Chief Executive Officer and President

 

	GUARANTORS:	TUESDAY MORNING CORPORATION
	 	 	 
	 	By:	/s/ Steven R. Becker
	 	Name:	Steven R. Becker
	 	Title: 	Chief Executive Officer and President

 

		TMI HOLDINGS, INC.
	 	 	 
	 	By:	/s/ Steven R. Becker
	 	Name:	Steven R. Becker
	 	Title: 	Chief Executive Officer and President

 

		FRIDAY MORNING, LLC
	 	 	 
	 	By:	Tuesday Morning, Inc., as Sole Member
	 	 	 
	 	By:	/s/ Steven R. Becker
	 	Name:	Steven R. Becker
	 	Title: 	Chief Executive Officer and President

 

		DAYS OF THE WEEK, INC.
	 	 	 
	 	By:	/s/ Steven R. Becker
	 	Name:	Steven R. Becker
	 	Title: 	Chief Executive Officer 

 

		NIGHTS OF THE WEEK, INC.
	 	 	 
	 	By:	/s/ Steven R. Becker
	 	Name:	Steven R. Becker
	 	Title: 	Chief Executive Officer 

 

		TUESDAY MORNING PARTNERS, LTD.
	 	 	 
	 	By:	Days of the Week, Inc., as General Partner
	 	 	 
	 	By:	/s/ Steven R. Becker
	 	Name:	Steven R. Becker
	 	Title: 	Chief Executive Officer 

 

[Signature
Page to Limited Forbearance Agreement – Tuesday Morning, Inc.]

 

     

     

    

 

		JPMORGAN
CHASE BANK, N.A.,
	 	as Administrative Agent, the Swingline Lender, the Issuing Bank, and a Lender
	 	 	 
	 	By:	/s/ Jon
    Eckhouse
	 	Name:	 Jon Eckhouse
	 	Title: 	Authorized Officer

 

[Signature Page to Limited Forbearance Agreement
 – Tuesday Morning, Inc.]

 

     

     

    

 

		WELLS
FARGO BANK, NA.,
	 	as a Lender
	 	 	 
	 	By:	/s/
    Jai Alexander
	 	Name: 	Jai Alexander
	 	Title: 	Director

 

[Signature Page to Limited Forbearance Agreement
 – Tuesday Morning, Inc.]

 

     

     

    

 

		BANK
OF AMERICA, N.A.,
	 	as a Lender
	 	 	 
	 	By:	/s/ Andrew Cerussi
	 	Name: 	Andrew Cerussi
	 	Title: 	Senior Vice President

 

[Signature Page to Limited Forbearance Agreement
 – Tuesday Morning, Inc.]

 

     

     

    

 

Schedule 2.01

 

Revolver Commitments 

 

	Lender	Revolving Commitment
	JPMorgan Chase Bank, N.A.	72,222,222.22
	Wells Fargo Bank, National Association	28,888,888.89
	Bank of America, N.A.	28,888,888.89
	Total	$130,000,000

 

     

     

    

 

Schedule 6.2(e)

 

Form of Borrowing Base CertificateEVEREST
RE GROUP, LTD.

2020 STOCK INCENTIVE PLAN

Section 1.   Establishment and
Purpose

The purpose of the Everest Re
Group, Ltd. 2020 Stock Incentive Plan (the “Plan”) is to benefit the
Corporation, its Subsidiaries, and its shareholders by encouraging high levels
of performance by individuals who are key to the success of the Corporation and
its Subsidiaries and to enable the Corporation and its Subsidiaries to attract,
motivate and retain talented and experienced individuals essential to their
success. This is to be accomplished by providing such eligible individuals an
opportunity to obtain or increase their proprietary interest in the
Corporation’s performance and by providing such individuals with additional
incentives to remain with the Corporation and its Subsidiaries.

Section 2.   Definitions

The following terms,
used herein, shall have the meaning specified:

(a)  “Award”  means any award
or benefit granted under the terms of the Plan.

(b)  “Award Agreement” means
an agreement described in Section 6 hereof entered into between the Corporation
and a Participant, setting forth the terms and conditions applicable to the
Award granted to the Participant.

(c)  “Board of Directors”
means the Board of Directors of the Corporation as it may be comprised from
time to time.

(d)  “Code”  means the
Internal Revenue Code of 1986, and any successor statute, and the regulations
promulgated thereunder, as it or they may be amended from time to time.

(e)  “Committee”  means the
Committee as defined in Section 8.

(f)  “Corporation”  means
Everest Re Group, Ltd., and any successor corporation.

(g)  “Effective Date” means
the Effective Date as defined in Section 15.

(h)  “Employee”  means
officers and other key employees of the Corporation or a Subsidiary, and
excludes directors who are not also employees of the Corporation or a
Subsidiary. “Employee” includes consultants and advisors that provide bona
fide services to the Corporation or a Subsidiary, provided that such
services are not in connection with the offer or sale of securities of the
Corporation or a Subsidiary in a capital-raising transaction.

(i)   “Exchange Act” means
the Securities Exchange Act of 1934, and any successor statute, as it may be
amended from time to time.

(j)   “Exercise Price” means
a purchase or exercise price established by the Committee at the time an Option
or an SAR is granted.

(k)  “Fair Market Value”
means, unless otherwise provided in the Award Agreement, the average of the
highest and lowest sale price of the Stock as reported on the Composite Transaction
Tape of the New York Stock Exchange (or on such other exchange, if any, on
which the Stock is traded) on the relevant date, or if no sale of the Stock is
reported for such date, the next preceding day for which there is a reported
sale. If the Stock is not traded on any such exchange, Fair Market Value shall
be as determined in the Award Agreement, or as may be determined in good faith
by the Committee.

(l)   “Incentive Stock Option”
means an option that is intended to satisfy the requirements applicable to an
“incentive stock option” described in Section 422(b) of the Code.

   

 1 

 

(m) “Insider”
means any person who is subject to “Section 16.”

(n)  “Option” 
means an Award granted under the Plan that entitles the Participant, for a
certain period of time, to purchase shares of Stock at an Exercise Price
established by the Committee.

(o)  “Participant” means any
Employee who has been granted an Award pursuant to this Plan.

(p)  “Section 16” means
Section 16 of the Exchange Act, and any successor statutory provision, and the
rules promulgated thereunder, as it or they may be amended from time to time.

(q)  “Stock” means shares of
common stock (class of common shares) of the Corporation, par value $.01
per share, or any security of the Corporation issued in substitution, exchange
or lieu thereof.

(r)  “Subsidiary” means any
corporation in which the Corporation, directly or indirectly, controls 50% or
more of the total combined voting power of all classes of such corporation’s
stock.

(s)  “Ten-percent Shareholder”
means any person who owns, directly or indirectly, on the relevant date
securities representing more than ten percent (10%) of the total combined
voting power of all classes of stock of the Corporation or of its parent or
Subsidiary. For purposes of applying the foregoing ten percent (10%)
limitation, the rules of Code Section 424(d) shall apply.

Section 3.   Eligibility

Persons eligible for Awards shall
consist of Employees who hold positions of significant responsibilities with
the Corporation and/or a Subsidiary or whose performance or potential
contribution, in the judgment of the Committee, will benefit the future success
of the Corporation and/or a Subsidiary.

Section 4.   Awards

The Committee may
grant any of the types of Awards enumerated in paragraphs (a) through (d) of
this Section 4, either singly, in tandem or in combination with other types of
Awards, as the Committee may in its sole discretion determine:

(a)  Non-qualified Stock
Options. The grant of an Option entitles the Participant to purchase a
specific number of shares of Stock at an Exercise Price established by the
Committee. Any Option granted under this Section 4 may either be an incentive
stock option or a non-qualified stock option. A Non-qualified Stock Option is
an Option that is not intended to be an “incentive stock option” as described
in section 422(b) of the Code. All Non-qualified Stock Options granted under
the Plan shall expire not later than ten (10) years after grant, and shall have
an Exercise Price equal to 100% of the Fair Market Value of the Stock on the
date the option is granted.

(b)  Incentive
Stock Options. An Incentive Stock Option is an Option that is intended to
satisfy the requirements applicable to an “incentive stock option” as described
in section 422(b) of the Code. All Incentive Stock Options granted under the
Plan shall be subject to the following:

(i)   The aggregate fair market
value (determined at the time of the grant of the Award) of the shares of Stock
subject to Incentive Stock Options which are exercisable by one person for the
first time during a particular calendar year shall not exceed $100,000.

(ii)  No Incentive Stock Option may
be granted under this Plan on or after the tenth anniversary of the date this
Plan is adopted, or the date this Plan is approved by shareholders, whichever
is earlier.

(iii) No Incentive Stock Option may be exercisable
more than:

A.  in the case of an Employee who
is not a Ten-Percent Shareholder on the date that the option is granted, ten
(10) years after the date the option is granted, and

B.   in the case of an Employee who
is a Ten-Percent Shareholder on the date the option is granted, five (5) years
after the date the option is granted.

   

 2 

 

(iv) The exercise price of any
Incentive Stock Option shall be no less than:

A. in the case of an
Employee who is not a Ten-Percent Shareholder on the date that the option is
granted, the Fair Market Value of the Stock subject to the option on such date;
and

B. in the case of an
Employee who is a Ten-Percent Shareholder on the date that the option is
granted, 110% of the Fair Market Value of the Stock subject to the option on
such date.

(v)  No Incentive Stock Option
shall be granted to an individual who is an Employee by virtue of being a
consultant or advisor.

(c)  Stock
Appreciation Rights. A stock appreciation right (“SAR”) is a right to
receive, upon surrender of the right, an amount payable in cash or in shares of
Stock, which may be Restricted Stock.

(i)   The amount payable with
respect to each SAR shall be equal in value to the excess, if any, of the Fair
Market Value of a specified number of shares of Stock on the exercise date (or
on such other date or dates set forth in the Award Agreement) over the Exercise
Price relative to such shares, as may be established by the Committee. All SARs
granted under the Plan shall expire not later than ten (10) years after grant,
and shall have an Exercise Price equal to 100% of the Fair Market Value of the
Stock on the date the SAR is granted.

(ii)  In the case of an SAR granted
with respect to an Incentive Stock Option to an Employee who is a Ten-Percent
Shareholder on the date of such Award, the Exercise Price shall not be less
than 110% of the Fair Market Value of a share of Stock on the date the Award is
made.

(d)  Restricted
Stock and Stock Awards.

(i)   Restricted Stock is Stock
that is issued to a Participant and is subject to a substantial risk of
forfeiture or other restrictions on transfer and/or such other restrictions on
incidents of ownership as the Committee may determine, where such restrictions
will lapse upon achievement of one or more goals relating to the completion of
services by the Participant or achievement of other objectives as may be
determined by the Committee. A certificate for the shares of Restricted Stock,
which certificate shall be registered in the name of the Participant, shall
bear an appropriate restrictive legend and shall be subject to appropriate
stop-transfer orders; provided, that the certificates representing shares of
Restricted Stock shall be held in custody by the Corporation until the
restrictions relating thereto otherwise lapse, and; provided further, that the
Participant shall deliver to the Corporation a stock power endorsed in blank
relating to the Restricted Stock as soon as practicable following the date of grant.

(ii)  Stock Awards shall be any
compensation grant to a Participant that provides for payment to a Participant
in shares of Stock.

(iii) Restricted Stock and Stock
Awards may be issued at the time of grant, upon the exercise of an SAR, Option
or other right, as payment of a bonus, as payment of any other compensation
obligations, upon the occurrence of a future event, at a specified time in the
future or as otherwise determined by the Committee. The period during which
Restricted Stock is subject to restrictions may commence prior to the actual
transfer of Restricted Stock to a Participant if so specified in the Award
Agreement.

(e)  Performance Stock Awards.
Performance Stock is the grant of Restricted Stock or Stock Award as described
in subsection  4(d), above, that, in addition to being subject to any
other such conditions, restrictions and contingencies determined by the
Committee, is subject to a substantial risk of forfeiture contingent upon the
achievement of performance objectives during a specified period and that is
subject to a risk of forfeiture or other restrictions that will lapse upon the
achievement of one or more goals relating to completion of service by the
Participant or achievement of performance or other objectives, as determined by
the Committee.

(f)  Payment of
Option Exercise Price. The payment of the Exercise Price of an Option
granted under this Section 4 shall be subject to the following:

(i)   Subject to the following
provisions of this subsection 4(f), the full Exercise Price for shares of stock
purchased on the exercise of an Option shall be paid at the time of such
exercise.

   

 3 

 

(ii)  The
Exercise Price of the Stock subject to the Option may be paid in cash. At the
discretion of the Committee, the purchase price may also be paid by the tender,
by actual delivery of shares or by attestation, of Stock owned for at least six
months by the holder of the option (the value of such Stock shall be its Fair
Market Value on the date of exercise), through a combination of Stock and cash,
or through such other means as the Committee determines are consistent with the
Plan’s purpose and applicable law. No fractional shares of Stock will be issued
or accepted.

(iii) In accordance with a cashless
exercise program under which, if so instructed by the Participant, shares of
Common Stock may be issued directly to the Participant’s broker or dealer upon
receipt of the purchase price in cash from the broker or dealer.

(g)  General
Provisions for Awards. 

(i)   Except
for either adjustments pursuant to Section 9 (relating to the adjustment of
Shares), or reductions of the Exercise Price approved by the Corporation’s
shareholders, the Exercise Price for any outstanding Option or SAR may not be
decreased after the date of grant nor may an outstanding Option or SAR granted
under the Plan be surrendered to the Corporation as consideration for the grant
of a replacement Option or SAR with a lower Exercise Price. Except as approved
by Corporation’s shareholders, in no event shall any Option or SAR granted under
the Plan be surrendered to Corporation in consideration for a cash payment or
the grant of any other Award if, at the time of such surrender, the Exercise
Price of the Option or SAR is greater than the then current Fair Market Value
of a Share. In addition, no repricing of an Option or SAR shall be permitted
without the approval of Corporation’s shareholders if such approval is required
under the rules of any stock exchange on which Stock is listed.

Section 5.   Shares of Stock and
Other Stock-Based Awards Available Under Plan

(a)  The Stock which may be issued
pursuant to an Award under the Plan may be shares currently authorized but
unissued or currently held or subsequently acquired by the Corporation as
treasury shares, including shares purchased in the open market or in private
transactions.

(b)  Subject to the adjustment
provisions of Section 9 hereof, the maximum number of shares that may be
delivered to Participants and their beneficiaries under the Plan shall be equal
to the sum of: (i) 1,400,000 shares of Stock; and (ii) any shares granted
previously under the Corporation’s 2010 Stock Incentive Plan, as amended (the
“Prior Plan”) that are forfeited, expire or are canceled after the Effective
Date without delivery of shares or which result in the forfeiture of the shares
back to the Corporation to the extent that such shares would have been added
back to the reserve under the terms of the Prior Plan, but not including shares
that remained available for grant pursuant to the Prior Plan that were not previously
granted.

(c)  Subject to the
adjustment provisions of Section 9 hereof, the following additional maximums
are imposed on the Plan:

(i)   The maximum number of shares
of Stock that may be issued pursuant to Options intended to be Incentive Stock
Options shall be 1,000,000 shares.

(ii)  The aggregate maximum number
of shares of Stock that may be covered by Awards granted to any one individual
pursuant to Section 4 relating to Options and SARs shall be 350,000 shares
during any one calendar-year period.

(iii) For
Restricted Stock, Stock Awards and Performance Stock Awards, no more than
350,000 shares of Stock may be delivered pursuant to such Awards granted to any
one Participant during any one calendar-year period (regardless of whether
settlement of the Award is to occur prior to, at the time of, or after the time
of vesting).

   

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(d)  To
the extent that any shares of Stock covered by an Award are not delivered to a
Participant or beneficiary because the Award is forfeited or canceled, or the
shares of Stock are not delivered because the Award is settled in cash, such
shares shall be deemed to not have been delivered for purposes of determining
the maximum number of shares of Stock available for delivery under the Plan. Shares subject to an Award under the Plan
(or the Prior Plan) may not again be made available for issuance if such shares
are: (i) shares used to satisfy the applicable tax withholding
obligation; (ii) shares tendered as payment for an option exercise; (iii)
shares repurchased by the Corporation using stock option exercise proceeds; or
(iv) shares that were subject to a
share-settled SAR and were not issued or delivered upon the net settlement of
such SAR.

(e)  For the purposes
of computing the total number of shares of Stock granted under the Plan, the
following rules shall apply to Awards payable in Stock:

(i)   Each Option shall be deemed
to be the equivalent of the maximum number of shares of Stock that may be
issued upon exercise of the particular Option;

(ii)  Where one or more types of
Awards (both of which are payable in Stock) are granted in tandem with each
other, the number of shares of Stock shall be deemed to be the greater of the
number of shares that would be counted if one or the other Award alone was
outstanding.

Additional rules for determining
the number of shares of Stock granted under the Plan may be adopted by the
Committee, as it deems necessary and appropriate.

Section 6.   Award Agreements

Each Award
under the Plan shall be evidenced by an Award Agreement setting forth the number
of shares of Stock and/or SARs subject to the Award and such other terms and
conditions applicable to the Award, as determined by the Committee, not
inconsistent with the terms of the Plan. The Committee may, but need not
require that the Participant sign a copy of such document. Such document is
referred to as the Award Agreement regardless of whether any Participant
signature is required. In the event that the Committee requires that the
Participant execute and return the Award Agreement, no person shall have any
rights under the Award unless and until the Participant to whom such Award
shall have been granted shall have executed and delivered to the Corporation
the Award Agreement; provided, however, the execution and delivery of such an
Award Agreement shall not be a precondition to the granting of such Award. By
executing the Award Agreement, or submitting an option exercise form (whether
or not the Award Agreement required execution) a Participant shall be deemed to
have accepted and consented to any action taken under the Plan by the
Committee, the Board of Directors or their delegates.

(a)  Award Agreements
shall include the following terms:

(i)   Non-assignability.
Unless otherwise specifically provided for by the Committee, a provision that
no Award shall be assignable or transferable except by will or by the laws of
descent and distribution and that, during the lifetime of a Participant, the
Award shall be exercised, if exercisable, only by such Participant or by his or
her guardian or legal representative.

(ii)  Termination of Employment.
A provision describing the treatment of an Award in the event of the
retirement, disability, death or other termination of a Participant’s
employment with the Corporation or a Subsidiary, including but not limited to
terms relating to the vesting, time for exercise, forfeiture or cancellation of
an Award in such circumstances. Participants who terminate employment prior to
the satisfaction of applicable conditions and restrictions associated with
their Award(s) may be entitled to such Award(s) as and to the extent determined
by the Committee. A provision that for purposes of the Plan (A) a transfer of
an Employee from the Corporation to a Subsidiary or affiliate of the
Corporation, whether or not incorporated, or vice versa, or from one Subsidiary
or affiliate of the Corporation to another, and (B) a leave of absence, duly
authorized in writing by the Corporation, shall not be deemed a termination of
employment, except as otherwise required by applicable law, as determined by
the Committee, in order to preserve the status of an option as an Incentive
Stock Option.

   

 5 

 

(iii) Rights
as a Shareholder. A provision that a Participant shall have no rights as a
shareholder with respect to any Stock covered by an Award until the date the
Participant becomes the holder of record. Except as provided in Section 9
hereof, no adjustment shall be made for dividends or other rights, unless the
Award Agreement specifically requires such adjustment.

(iv) Withholding. A
provision requiring the withholding of applicable taxes required by law from
all amounts paid to the holder of an Award in satisfaction of such Award. In
the case of an Award paid in cash, the withholding obligation shall be
satisfied by withholding the applicable amount and paying the net amount in
cash to the Participant. In the case of Awards paid in shares of Stock, a
Participant may satisfy the withholding obligation by paying the amount of any
taxes in cash or, with the approval of the Committee, shares of Stock may be deducted
from the payment to satisfy the obligation in full or in part. The amount of
the withholding and the number of shares of Stock to be deducted shall be
determined by the Committee with reference to the Fair Market Value of the
Stock when the withholding is required to be made; provided, however,
the amount of Stock so deducted shall not exceed the minimum required
withholding obligation.

(v)  Treatment of Option.
Each Award of an option shall state whether or not it is intended to constitute
an Incentive Stock Option.

(vi) Minimum Exercise. No
option may be exercised for less than the lesser of 50 shares of Stock or the
full number of shares of Stock for which the option is then exercisable.

(b)  Other Terms. Award
Agreements may include such other terms as the Committee may determine are
necessary, and appropriate to effect an Award to the Participant, including,
but not limited to, the term of the Award, vesting provisions, any requirements
for continued employment with the Corporation or a Subsidiary, any other
restrictions or conditions (including performance requirements) on the Award
and the method by which restrictions or conditions lapse, the effect on the
Award of a change of control of the Corporation or an employing
Subsidiary, the price, amount or value of Awards, and the terms, if any,
pursuant to which a Participant may elect to defer the receipt of cash or Stock
under an Award. Notwithstanding the foregoing, any benefits granted under the
Plan (or the Prior Plan) under any Award may not become exercisable, vest or be
settled, in whole or in part, prior to the one-year anniversary of
the date of grant except (i) with regard to death, disability, termination of
employment and/or change of control, and (ii) up to 5% of the aggregate number
of shares authorized for issuance under the Plan under Section 5 above may be
issued pursuant to Awards subject to any, or no, vesting conditions, as the
Committee determines appropriate. 

Section 7.   Amendment and
Termination

The Board of Directors may at any
time amend, suspend or discontinue the Plan, in whole or in part; provided that
no amendment by the Board of Directors shall increase any limitations set forth
in Section 5 nor shall it permit any options to be awarded at exercise prices
below Fair Market Value. The Committee may at any time alter or amend any or
all Award Agreements under the Plan to the extent permitted by law, but no such
alteration or amendment shall impair the rights of any holder of an Award
without the holder’s consent. Adjustments pursuant to Section 9 shall not be
subject to the foregoing limitations of this Section 7.

Section 8.   Administration

(a)  The Plan and all Awards
granted pursuant thereto shall be administered by a committee of the Board of
Directors (the “Committee”), which Committee shall consist of not less than two
(2) members of such Board of Directors who are not employees of the Corporation
or any Subsidiary. The members of the Committee shall be designated by the
Board of Directors. If the Committee does not exist, or for any other reason
determined by the Board, the Board may take any action under the Plan that
would otherwise be the responsibility of the Committee.

   

 6 

 

(b)  The
Committee shall have the authority and discretion to interpret and administer
the Plan, to establish, amend and rescind any rules and regulations relating to
the Plan and to determine the terms and provisions of any Award Agreement made
pursuant to the Plan. All questions of interpretation with respect to the Plan,
the number of shares of Stock or other security, SARs, or rights granted and
the terms of any Award Agreements, including the timing, pricing, and amounts
of Awards, shall be determined by the Committee, and its determination shall be
final and conclusive upon all parties in interest. In the event of any conflict
between an Award Agreement and this Plan, the terms of this Plan shall govern.

(c)  Except to the extent
prohibited by applicable law or the applicable rules of a stock exchange, the
Committee may delegate to the officers or employees of the Corporation and its
Subsidiaries the authority to execute and deliver such instruments and
documents, to do all such acts and things, and to take all such other steps
deemed necessary, advisable or convenient for the effective administration of the
Plan in accordance with its terms and purpose, except that the Committee may
not delegate any discretionary authority with respect to substantive decisions
or functions regarding the Plan or Awards thereunder as these relate to
Insiders, including, but not limited to, decisions regarding the timing,
eligibility, pricing, amount or other material terms of such Awards. Any such
delegation may be revoked by the Committee at any time.

(d)  To the extent that the
Committee determines that the restrictions imposed by the Plan preclude the
achievement of the material purposes of the Awards in jurisdictions outside the
United States, the Committee will have the authority and discretion to modify
those restrictions as the Committee determines to be necessary or appropriate
to conform to applicable requirements or practices of jurisdictions outside of
the United States.

Section 9.   Adjustment
Provisions

(a)  In the event of any change in
the outstanding shares of Stock by reason of a stock dividend or split,
recapitalization, merger or consolidation (whether or not the Corporation is a
surviving corporation), reorganization, combination or exchange of shares or
other similar corporate changes or an extraordinary dividend paid in cash or
property, the number of shares of Stock (or other securities) then remaining
subject to this Plan, and the maximum number of shares that may be issued to
anyone pursuant to this Plan, including those that are then covered by
outstanding Awards, shall (i) in the event of an increase in the number of
outstanding shares, be proportionately increased and the price for each share
then covered by an outstanding Award shall be proportionately reduced, and (ii)
in the event of a reduction in the number of outstanding shares, be
proportionately reduced and the price for each share then covered by an
outstanding Award shall be proportionately increased.

(b)  In the event the adjustments
described in clauses (i) and (ii) of paragraph (a) of this Section 9 are
inadequate to ensure equitable treatment of any Award holder, then, to the
extent permissible under applicable law, the Committee shall make any further
adjustments as it deems necessary to ensure equitable treatment of any holder
of an Award as the result of any transaction affecting the securities subject
to the Plan or as is required or authorized under the terms of any applicable
Award Agreement.

(c)  The existence of the Plan and
the Awards granted hereunder shall not affect or restrict in any way the right
or power of the Board of Directors or the shareholders of the Corporation to
make or authorize any adjustment, recapitalization, reorganization or other
capital structure of its business, any merger or consolidation of the
Corporation, any issue of bonds, debentures, preferred or prior preference
stock ahead of or affecting the Stock or the rights thereof, the dissolution or
liquidation of the Corporation or any sale or transfer of all or any part of
its assets or business, or any other corporate act or proceeding.

Section 10. Change of Control

(a)  In the event of
a “Change of Control” of the Corporation (defined below), in addition to
any action required or authorized by the terms of an Award Agreement, the
Committee may, in its sole discretion, recommend that the Board of Directors
take any of the following actions as a result, or in anticipation, of any such
event to assure fair and equitable treatment of Participants:

(i)   Accelerate time periods for
purposes of vesting in, or realizing gain from, any outstanding Award made pursuant
to this Plan;

   

 7 

 

(ii)  Offer
to purchase any outstanding Award made pursuant to this Plan from the holder
for its equivalent cash value, as determined by the Committee, as of the date
of the change of control; or

(iii) Make adjustments or
modifications to outstanding Awards as the Committee deems appropriate to
maintain and protect the rights and interests of Participants following such
change of control.

Any such action approved by the
Board of Directors shall be conclusive and binding on the Corporation and all
Participants.

(b)  For purposes of
this Section, a Change of Control shall mean the occurrence of any of the
following:

(i)   A tender offer or exchange
offer whereby the effect of such offer is to take over and control the affairs
of the Corporation, and such offer is consummated for the ownership of
securities of the Corporation representing twenty-five percent (25%) or more of
the combined voting power of the Corporation’s then outstanding voting
securities.

(ii)  The Corporation is merged or
consolidated with another corporation and, as a result of such merger or
consolidation, less than seventy-five percent (75%) of the outstanding voting
securities of the surviving or resulting corporation shall then be owned in the
aggregate by the former shareholders of the Corporation, other than affiliates
within the meaning of the Exchange Act or any party to such merger or
consolidation.

(iii) The Corporation transfers
substantially all of its assets to another corporation or entity that is not a
wholly-owned subsidiary of the Corporation.

(iv) Any person (as such term is
used in Sections 3(a)(9) and 13(d)(3) of the Exchange Act) is or becomes the
beneficial owner, directly or indirectly, of securities of the Corporation
representing twenty-five percent (25%) or more of the combined voting power of
the Corporation’s then outstanding securities, and the effect of such ownership
is to take over and control the affairs of the Corporation.

(v)  As the result of a tender
offer, merger, consolidation, sale of assets, or contested election, or any
combination of such transactions, the persons who were members of the Board of
Directors of the Corporation immediately before the transaction, cease to
constitute at least a majority thereof. 

Section 11. General Restrictions

Delivery of shares of Stock or
other amounts under the Plan shall be subject to the following:

(a)  Notwithstanding any other
provision of the Plan, the Corporation shall have no liability to deliver any
shares of Stock under the Plan or make any other distribution of benefits under
the Plan unless such delivery or distribution would comply with all applicable
laws (including, without limitation, the requirements of the Securities Act of
1933), and the applicable requirements of any securities exchange or similar
entity.

(b)  To the extent that the Plan
provides for issuance of stock certificates to reflect the issuance of shares
of Stock, the issuance may be effected on a non-certificated basis, to the
extent not prohibited by applicable law or the applicable rules of any stock
exchange.

Section 12. Unfunded Plan

The Plan shall be unfunded. Neither
the Corporation, a Subsidiary, nor the Board of Directors shall be required to
segregate any assets that may at any time be represented by Awards made
pursuant to the Plan. Neither the Corporation, a Subsidiary, the Committee, nor
the Board of Directors shall be deemed to be a trustee of any amounts to be
paid under the Plan.

Section 13. Limits of Liability

(a)  Any liability of the
Corporation or a Subsidiary to any Participant with respect to an Award shall
be based solely upon contractual obligations created by the Plan and the Award
Agreement.

   

 8 

 

(b)  Neither
the Corporation nor a Subsidiary, nor any member of the Board of Directors or
of the Committee, nor any other person participating in any determination of
any question under the Plan, or in the interpretation, administration or
application of the Plan, shall have any liability to any party for any action
taken or not taken in good faith under the Plan except as may be expressly
provided by statute.

Section 14. Rights of Employees

(a)  Status as an eligible Employee
shall not be construed as a commitment that any Award will be made under this
Plan to such eligible Employee or to eligible Employees generally.

(b)  Nothing contained in this Plan
or in any Award Agreement (or in any other documents related to this Plan or to
any Award or Award Agreement) shall confer upon any Employee or Participant any
right to continue in the employ or other service of the Corporation or a
Subsidiary or constitute any contract or limit in any way the right of the
Corporation or a Subsidiary to change such person’s compensation or other
benefits or to terminate the employment or other service of such person with or
without cause.

Section 15. History and Duration  

The Board of Directors adopted the
Plan subject to the approval of the shareholders of the Corporation at the
Corporation’s 2020 annual meeting of its shareholders on May 11, 2020. The date of such
shareholder approval shall be the “Effective Date” of the Plan. The Plan shall
remain in effect as long as any Awards under the Plan have been exercised or
terminated under the terms of the Plan and applicable Award Agreements,
provided that Awards under the Plan may only be granted within ten years of the
Effective Date of the Plan.

   

 9

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