Document:

Document

Exhibit 10.1

COOPERATION AGREEMENT

This cooperation agreement (this “Agreement”) is made and entered into as of June 13, 2022 by and among Groupon, Inc. (the “Company”) and Pale Fire Capital SE, a private company organized under the laws of the Czech Republic (“Pale Fire”), Dusan Senkypl, a citizen of the Czech Republic, and Jan Barta, a citizen of the Czech Republic (collectively, the “Pale Fire Parties”) (each of the Company and the Pale Fire Parties, a “Party” to this Agreement, and collectively, the “Parties”).

RECITALS

WHEREAS, the Company and the Pale Fire Parties have engaged in various discussions and communications concerning the Company’s business, financial performance and strategic plans;

WHEREAS, as of the date hereof, the Pale Fire Parties have a beneficial ownership (as determined under Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended, or the rules or regulations promulgated thereunder (the “Exchange Act”)) interest in the shares of Common Stock, par value $0.0001 per share, of the Company (the “Common Stock”) totaling, in the aggregate, 6,553,910 shares (“Pale Fire Parties’ Current Beneficial Ownership Position”), or approximately 21.9% of the issued and outstanding shares of Common Stock based upon the Company’s Form 10-Q filed on May 9, 2022; and

WHEREAS, as of the date hereof, the Parties have determined to come to an agreement with respect to the composition of the Board of Directors of the Company (the “Board”) and certain other matters, as provided in this Agreement.

NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto, intending to be legally bound hereby, agree as follows:

    1.    Board Composition and Related Matters.

(a)    The Company agrees that, effective immediately following the 2022 Annual Meeting of Stockholders to be held on June 15, 2022 (the “2022 Annual Meeting”), the Board shall increase the size of the Board to nine (9) directors and appoint Dusan Senkypl (the “First New Director”) to the Board.  The Company shall hold the 2022 Annual Meeting as scheduled on June 15, 2022, at 10:00 a.m. Central Time, and conduct the 2022 Annual Meeting without undue delay. The Company further agrees that, effective no later than November 30, 2022, the Board shall appoint Jan Barta (the “Second New Director” and together with the First New Director, the “New Directors” and each a “New Director”) to the Board, and shall increase the size of the Board to ten (10) directors if necessary to accommodate such appointment; provided, that the appointment of the Second New Director shall be subject to the Second New Director submitting to the Company an update to his previously submitted director and officer questionnaire that shall not include any material adverse developments or changes relating to his qualifications for service as a director.

(b)    The Parties acknowledge that the First New Director is being added to the Board immediately following the 2022 Annual Meeting at the Company’s request in order to avoid incurring expenses and delaying the 2022 Annual Meeting due to mechanical issues that would be associated with distributing revised proxy materials and soliciting support for the election of the First New Director at the 2022 Annual Meeting.
1

(c)    It is understood and agreed that concurrently with the First New Director’s appointment to the Board, the Board shall appoint the First New Director to serve on the Executive Committee of the Board (the “Executive Committee”). For so long as the First New Director continues to serve as a member of the Board in accordance with this Agreement, such First New Director shall serve on the Executive Committee or such other committee of the Board established to oversee the implementation of such business plans and strategies approved by the Board (such other committee is herein referred to as the “Operating Committee”). The Second New Director will be permitted to attend and reasonably participate, but not vote, at all regularly scheduled and special meetings of the Executive Committee or Operating Committee. The Second New Director will receive all materials related to each Executive Committee or Operating Committee meeting, contemporaneous with their distribution to the Executive Committee or Operating Committee. Without limiting the foregoing, the Board shall, in accordance with its customary governance processes, give each New Director the same due consideration for membership to any committee of the Board as any other independent director with similar relevant expertise and qualifications.

(d)    The Pale Fire Parties agree that the Board or any committee thereof, in the exercise of its fiduciary duties, may recuse the New Directors from any portion of a Board or committee meeting, and restrict access to information of the Company, to the extent relating to (i) the exercise of any of the Company’s rights or enforcement of any of the obligations under this Agreement, (ii) any action taken in respect of or in response to actions taken or proposed by the Pale Fire Parties or their Affiliates (as defined below), in each case, with respect to the Company or its Affiliates or (iii) any proposed transaction between the Company or any of its Affiliates and the Pale Fire Parties or any of their Affiliates. For the avoidance of doubt, the Pale Fire Parties acknowledge and agree that: (i) consistent with their fiduciary duties as directors of the Company, each New Director is obligated to consider in good faith, to the same extent as any other director of the Company, recusal from any Board or committee meeting in the event there is any other actual or potential conflict of interest between the Pale Fire Parties or the New Directors, on the one hand, and the Company, on the other hand; and (ii) the Board may restrict the New Directors’ access to information of the Company to the same extent it would for any other director of the Company, in accordance with applicable law.

(e)    Until the Termination Date (as defined below) and as long as the Pale Fire Parties beneficially own (as determined under Rule 13d-3 promulgated under the Exchange Act) in the aggregate at least the lesser of (i) 15.0% of the Company’s then-outstanding Common Stock and (ii) 4,494,004 shares of Common Stock (subject to adjustment for stock splits, reclassifications, combinations, recapitalizations and similar adjustments) (the “Ownership Minimum Requirement”), in the event any New Director is no longer able to serve as a director of the Company for any reason, the Pale Fire Parties shall be entitled to designate a candidate for replacement for such New Director (such replacement, a “Replacement Director”), subject to the approval of the Board (which approval shall not be unreasonably withheld). The Board shall make its determination within ten (10) days after any such replacement director candidate submits to the Company a fully completed copy of the Company’s standard director and officer questionnaire, provided that such questionnaire shall be deemed fully completed after the successful completion of a customary background check, to be completed by the Company not more than five (5) days following the Company’s receipt of such questionnaire. If the Board does not approve such Replacement Director to the Board pursuant to this Section 1(e) (it being acknowledged that the Board cannot unreasonably withhold its approval), the Parties shall continue to follow the procedures of this Section 1(e) until a Replacement Director is appointed to the Board. Upon a Replacement Director’s appointment to the Board, the Board and all applicable committees of the Board shall take all necessary actions to appoint such Replacement Director to any applicable committee of the Board of which the replaced director was a member 
2

immediately prior to such director’s resignation or removal or, if the Board or the applicable committee of the Board determines that the Replacement Director does not satisfy the requirements of the NASDAQ Stock Market and applicable law with respect to service on the applicable committee (which determination shall be made reasonably and in good faith), to an alternative committee of the Board. Any Replacement Director shall qualify as an “independent director” under applicable rules of the Securities and Exchange Commission (the “SEC”), the rules of any stock exchange on which the Company is traded and applicable governance policies of the Company. Upon a Replacement Director’s appointment to the Board, such Replacement Director shall be deemed to be a New Director for all purposes under this Agreement.

(f)    In furtherance and not in limitation of Section 4, prior to the Termination Date, the Pale Fire Parties shall not, and shall cause each of their controlled Affiliates and Associates not to, directly or indirectly, (A) nominate or recommend for nomination any person for election at any annual or special meeting of the Company’s stockholders (except as otherwise provided elsewhere in Section 1), (B) submit any proposal for consideration at, or bring any other business before, any annual or special meeting of the Company’s stockholders, or (C) initiate, encourage or participate in any “vote no,” “withhold” or similar campaign with respect to any annual or special meeting of the Company’s stockholders.  Prior to the Termination Date, Pale Fire shall not publicly or privately encourage or support any other stockholder, person or entity to take any of the actions described in this Section 1(f).

(g)    Until the Termination Date, the Board and all applicable committees of the Board shall not (A) increase the size of the Board to more than ten (10) directors or (B) seek to classify the Board, in each case without the prior written consent of the Pale Fire Parties.

(h)    The Pale Fire Parties shall comply, and the Pale Fire Parties shall cause each of their controlled Affiliates and Associates to comply, with the terms of this Agreement and the Pale Fire Parties shall be responsible for any breach of this Agreement by any such controlled Affiliate or Associate.  As used in this Agreement, the terms “Affiliate” and “Associate” shall have the respective meanings set forth in Rule 12b-2 promulgated by the SEC under the Exchange Act and shall include all persons or entities that at any time during the term of this Agreement become Affiliates or Associates of any person or entity referred to in this Agreement; provided, however, that the term “Associate” shall refer only to Associates controlled by the Company or the Pale Fire Parties, as applicable; provided, further, that, for purposes of this Agreement, the Pale Fire Parties and the Company shall not be Affiliates or Associates of one another; provided, further, that with respect to the Pale Fire Parties, the term Affiliate shall not include any portfolio company of the Pale Fire Parties, so long as such portfolio company (a) (i) has not discussed the Company or its business with the Pale Fire Parties, (ii) has not received from the Pale Fire Parties information concerning the Company or its business and (iii) is not acting at the request of, in coordination with or on behalf of the Pale Fire Parties with respect to any actions concerning the Company that the Pale Fire Parties are prohibited from taking pursuant to this Agreement, and (b) is not directly or indirectly competing with the Company, which involves offering or developing similar or competing technologies, products or services to those offered by the Company.

(i)    While the New Directors serve as directors on the Board, each shall receive compensation (including equity based compensation, if any) for Board and committee meetings attended, an annual retainer, benefits (including expense reimbursements), director and officer insurance and any indemnity and exculpation arrangements on the same basis as all other non-employee directors of the Company.

3

2.    Board Observer Period and Related Agreements.

(a)The Company agrees that, provided the Pale Fire Parties’ beneficial ownership remains at or above the Ownership Minimum Requirement, during the period commencing with the date of this Agreement through the date of his appointment to the Board (the “Observer Period”), the Second New Director shall be an observer to the Board (the “Observer”) who shall be permitted to attend and reasonably participate, but not vote, at all regularly scheduled and special meetings of the Board and the Executive Committee (or, if applicable, the Operating Committee) (whether such meetings are held in person, telephonically or otherwise, each, a “Board Meeting”). Subject to the third sentence of this Section 2(a), during the Observer Period, the Observer shall receive notice of all Board Meetings, all written consents executed by the Board (or applicable committee) at each Board Meeting, all materials prepared for consideration at any Board Meeting, and all minutes related to each Board Meeting, in each case, contemporaneous with their distribution to the Board (or applicable committee) and redacted to omit items pertaining to the meetings or portions thereof from which the Company reserves the right to exclude the Observer pursuant to the third sentence of this Section 2(a). Notwithstanding anything to the contrary contained in this Agreement, the Company reserves the right to exclude the Observer from access to any Board Meeting or portion thereof (and any materials pertaining thereto) (i) that is an executive session or (ii) if, and only to the extent that, the Board (or applicable committee) determines reasonably and in good faith that such exclusion is necessary to preserve the attorney-client privilege or avoid a conflict of interest.

(b)As a condition to attending any portion of any Board Meeting, the Observer shall, from the date the Observer first receives any materials prepared for consideration at any Board Meeting (including any such materials considered in prior meetings of the Board or any Board-related materials) after the date hereof until his appointment to the Board (A) be bound by, and comply with, all of the confidentiality obligations of a director of the Company (including the duty of confidentiality under Delaware law as it applies to a director of a Delaware corporation) with respect to (x) any Company confidential information (including any materials made available to the Observer (including any such materials considered in prior meetings of the Board (or applicable committee))) and (y) any discussions conducted, and any matters or materials considered, in meetings of the Board (or applicable committee) that the Observer attends and (B) comply with all policies, procedures, codes, rules, standards and guidelines applicable to the members of the Board (or applicable committee), in each case of clauses (A) and (B), as if the Observer were a member of the Board (or applicable committee).

(c)During the Observer Period, if the Observer is no longer able or willing to serve as the Observer for any reason, and so long as the Pale Fire Parties’ aggregate beneficial ownership remains at or above the Ownership Minimum Requirement, the Board will give due consideration to a replacement recommended by the Pale File Parties to fill the resulting vacancy. 

3.    Voting Commitment. 

The Pale Fire Parties shall appear in person or by proxy at the 2022 Annual Meeting and vote all shares of Common Stock they are entitled to vote at the 2022 Annual Meeting (A) in favor of the Company’s nominees for election to the Board, (B) in favor of the ratification of the appointment of Deloitte & Touche LLP as the Company’s independent registered public accounting firm for fiscal year 2022, (C) in accordance with the Board’s recommendation with respect to the Company’s “say-on-pay” proposal and (D) in favor of the amendment and restatement of the Groupon, Inc. 2011 Incentive Plan. The Pale Fire Parties further agree that they will appear in person or by proxy at any special meeting of the Company’s stockholders held prior to the Termination Date and vote all shares of Common Stock beneficially owned by 
4

them at such special meeting in accordance with the Board’s recommendation; provided, however, that in the event Institutional Shareholder Services Inc. (“ISS”) or Glass Lewis & Co., LLC (“Glass Lewis”) recommends otherwise with respect to any proposals (other than the election or removal of directors), the Pale Fire Parties shall be permitted to vote in accordance with the ISS or Glass Lewis recommendation; provided, further, that the Pale Fire Parties shall be permitted to vote in their sole discretion with respect to any publicly announced proposals relating to a merger, acquisition, disposition of all or substantially all of the assets of the Company or other business combination involving the Company requiring a vote of stockholders of the Company (each, an “Extraordinary Transaction”).

    4.    Standstill Provisions.

(a)    Prior to the Termination Date, except as otherwise provided in this Agreement, without the prior written consent of the Board, the Pale Fire Parties shall not, and the Pale Fire Parties shall cause each of their controlled Affiliates and Associates not to, in each case directly or indirectly, in any manner:

(i)    engage in any solicitation of proxies or consents or become a “participant” in a “solicitation” (as such terms are defined in Regulation 14A under the Exchange Act) of proxies or consents (including, without limitation, any solicitation of consents that seeks to call a special meeting of stockholders), in each case, with respect to any securities of the Company or any securities convertible or exchangeable into or exercisable for any such securities (collectively, the “securities of the Company”);

(ii)    form, join or in any way participate in any “group” (within the meaning of Section 13(d)(3) of the Exchange Act) with any persons who are not Affiliates of the Pale Fire Parties with respect to any securities of the Company;

(iii)    deposit any securities of the Company in any voting trust or similar arrangement, or subject any securities of the Company to any arrangement or agreement with respect to the voting thereof, other than (A) any such voting trust or arrangement solely for the purpose of delivering to the Company or its designee a proxy, consent or other authority to vote in connection with a solicitation made by or on behalf of the Company or (B) customary brokerage accounts, margin accounts and prime brokerage accounts;

(iv)    seek or submit, or encourage any person or entity to seek or submit, nomination(s) in furtherance of a “contested solicitation” for the appointment, election or removal of directors with respect to the Company or seek, or encourage or take any other action with respect to the appointment, election or removal of any directors (except as otherwise provided in Section 1);

(v)    (A) make any proposal for consideration by stockholders at any annual or special meeting of stockholders of the Company or through any action by written consent of stockholders or referendum of stockholders of the Company, (B) publicly make any offer or proposal (with or without conditions) with respect to any merger, takeover, tender (or exchange) offer, acquisition, recapitalization, restructuring, disposition or other business combination or similar transaction involving the Company and/or any of its subsidiaries, (C) affirmatively solicit a third party to make an offer or proposal (with or without conditions) with respect to any merger, takeover, tender (or exchange) offer, acquisition, recapitalization, restructuring, disposition or other business combination or similar transaction involving the Company and/or any of its subsidiaries, or publicly encourage, initiate or support any third party in making such an offer or proposal, (D) publicly comment on any third party proposal regarding any merger, takeover, tender (or exchange) offer, acquisition, recapitalization, restructuring, disposition, or 
5

other business combination or similar transaction with respect to the Company and/or any of its subsidiaries or (E) call or seek to call a special meeting of stockholders or take or seek to take action by written consent of stockholders (it being acknowledged that clauses (C) and (D) shall not be deemed to limit in any way the Pale Fire Parties’ rights to (i) vote in their sole discretion with respect to any Extraordinary Transaction in accordance with Section 3 or (ii) comment on such vote in accordance with Section 4(b));

(vi)    seek, alone or in concert with others, representation on the Board (except as otherwise provided in Section 1);

(vii)    acquire, offer or propose to acquire, or agree to acquire, whether by purchase, tender or exchange offer, through the acquisition of control of another person, by joining a partnership, limited partnership, syndicate or other group (including any group of persons that would be treated as a single “person” under Section 13(d) of the Exchange Act), through swap or hedging transactions or otherwise, any securities of the Company or any rights decoupled from the underlying securities of the Company that would result in the Pale Fire Parties (together with their Affiliates) owning, controlling or otherwise having any beneficial or other ownership interest in more than 25% of the shares of Common Stock outstanding at such time (as adjusted for any stock splits, reclassifications, combinations, stock dividends or similar actions by the Company);

(viii)    advise, encourage, support or influence any person or entity with respect to the voting or disposition of any securities of the Company at any annual or special meeting of stockholders except in accordance with Section 3; 

(ix) enter into any discussions, negotiations, agreements or understandings with any third party with respect to any of the foregoing, or advise, assist, knowingly encourage or seek to persuade any third party to take any action or make any statement with respect to any of the foregoing; or

(x)    make any request or submit any proposal to amend the terms of this Agreement other than through non-public communications with the Company or the Board that would not be reasonably determined to trigger public disclosure obligations for any Party.

(b)     Except as expressly provided in Section 1(f) and Section 3, the Pale Fire Parties shall be entitled to (i) vote any shares of Common Stock that they beneficially own as the Pale Fire Parties determine in their sole discretion and (ii) subject to Section 15, disclose, publicly or otherwise, how they intend to vote or act with respect to any securities of the Company, any stockholder proposal or other matter to be voted on by the stockholders of the Company and the reasons therefor.

(c)     Notwithstanding anything in Section 4(a) or elsewhere in this Agreement, nothing in this Agreement shall prohibit or restrict the Pale Fire Parties from (i) communicating privately with the Board or any of the Company’s officers regarding any matter, so long as such communications are not intended to, and would not reasonably be expected to, require any public disclosure of such communications, (ii) communicating with stockholders of the Company and others in a manner that does not otherwise violate Section 4(a) or Section 15, or (iii) taking any action necessary to comply with any law, rule or regulation or any action required by any governmental or regulatory authority or stock exchange that has jurisdiction over the Pale Fire Parties.

6

(d)Nothing in Section 4(a) or elsewhere in this Agreement shall be deemed to limit the exercise in good faith by any New Director of such person’s fiduciary duties solely in such person’s capacity as a director of the Company.

5.    Representations and Warranties of the Company.

The Company represents and warrants to the Pale Fire Parties that (a) the Company has the corporate power and authority to execute this Agreement and to bind it thereto, (b) this Agreement has been duly and validly authorized, executed and delivered by the Company, and assuming due execution by each counterparty hereto, constitutes a valid and binding obligation and agreement of the Company, and is enforceable against the Company in accordance with its terms, except as enforcement thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or similar laws generally affecting the rights of creditors and subject to general equity principles, and (c) the execution, delivery and performance of this Agreement by the Company does not and will not (i) violate or conflict with any law, rule, regulation, order, judgment or decree applicable to the Company, or (ii) result in any breach or violation of or constitute a default (or an event which with notice or lapse of time or both would constitute such a breach, violation or default) under or pursuant to, or result in the loss of a material benefit under, or give any right of termination, amendment, acceleration or cancellation of, any organizational document or material agreement to which the Company is a party or by which it is bound.

6.    Representations and Warranties of the Pale Fire Parties.

The Pale Fire Parties represent and warrant to the Company that (a) the authorized signatory of the Pale Fire Parties set forth on the signature page hereto has the power and authority to execute this Agreement and any other documents or agreements to be entered into in connection with this Agreement and to bind the Pale Fire Parties thereto, (b) this Agreement has been duly authorized, executed and delivered by the Pale Fire Parties, and assuming due execution by the Company, is a valid and binding obligation of the Pale Fire Parties, enforceable against the Pale Fire Parties in accordance with its terms except as enforcement thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or similar laws generally affecting the rights of creditors and subject to general equity principles, (c) the execution of this Agreement, the consummation of any of the transactions contemplated hereby, and the fulfillment of the terms hereof, in each case in accordance with the terms hereof, will not conflict with, or result in a breach or violation of the organizational documents of the Pale Fire Parties as currently in effect, (d) the execution, delivery and performance of this Agreement by the Pale Fire Parties do not and will not (i) violate or conflict with any law, rule, regulation, order, judgment or decree applicable to the Pale Fire Parties, or (ii) result in any breach or violation of or constitute a default (or an event which with notice or lapse of time or both would constitute such a breach, violation or default) under or pursuant to, or result in the loss of a material benefit under, or give any right of termination, amendment, acceleration or cancellation of, any organizational document, agreement, contract, commitment, understanding or arrangement to the Pale Fire Parties are a party or by which they are bound, (e) as of the date of this Agreement, the Pale Fire Parties beneficially own (as determined under Rule 13d-3 promulgated under the Exchange Act) the Pale Fire Parties’ Current Beneficial Ownership Position and (f) as of the date hereof, and except as set forth in clause (e) above, the Pale Fire Parties do not currently have, and do not currently have any right to acquire, any interest in any securities or assets of the Company or its Affiliates (or any rights, options or other securities convertible into or exercisable or exchangeable (whether or not convertible, exercisable or exchangeable immediately or only after the passage of time or the occurrence of a specified event) for such securities or assets or any obligations measured by the price or value of any securities of the Company or any of its controlled Affiliates, including any 
7

swaps or other derivative arrangements designed to produce economic benefits and risks that correspond to the ownership of shares of Common Stock or any other securities of the Company, whether or not any of the foregoing would give rise to beneficial ownership (as determined under Rule 13d-3 promulgated under the Exchange Act), and whether or not to be settled by delivery of shares of Common Stock or any other class or series of the Company’s stock, payment of cash or by other consideration, and without regard to any short position under any such contract or arrangement).

7.    Publicity.

In connection with the execution of this Agreement, the Company shall issue a mutually agreeable press release in the form attached hereto as Exhibit A (the “Press Release”) announcing certain terms of this Agreement.  Prior to the issuance of the Press Release and subject to the terms of this Agreement, neither the Company (including the Board and any committee thereof) nor the Pale Fire Parties shall issue any press release or make any public announcement regarding this Agreement or the matters contemplated hereby without the prior written consent of the other Party. Prior to the Termination Date, neither the Company nor the Pale Fire Parties shall make any public announcement or statement that is inconsistent with or contrary to the terms of this Agreement. Notwithstanding the foregoing, the Company acknowledges that the Pale Fire Parties may file this Agreement as an exhibit to their Schedule 13D within two (2) business days of the execution of this Agreement. The Company shall be given a reasonable opportunity to review and comment on any Schedule 13D filing made by the Pale Fire Parties with respect to this Agreement, and the Pale Fire Parties shall give reasonable consideration to any reasonable comments of the Company. The Pale Fire Parties acknowledge and agree that the Company may file this Agreement and file or furnish the Press Release with the SEC as exhibits to a Current Report on Form 8-K and other filings with the SEC. The Pale Fire Parties shall be given a reasonable opportunity to review and comment on any Current Report on Form 8-K or other filing with the SEC made by the Company with respect to this Agreement, and the Company shall give reasonable consideration to any reasonable comments of the Pale Fire Parties.

8.    Specific Performance.

Each of the Pale Fire Parties, on the one hand, and the Company, on the other hand, acknowledges and agrees that irreparable injury to the other Party hereto may occur in the event any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached and that such injury may not be adequately compensable by the remedies available at law (including the payment of money damages). It is accordingly agreed that the Pale Fire Parties, on the one hand, and the Company, on the other hand (the “Moving Party”), shall each be entitled to seek specific enforcement of, and injunctive relief to prevent any violation of, the terms hereof, and the other Party hereto will not take action, directly or indirectly, in opposition to the Moving Party seeking such relief on the grounds that any other remedy or relief is available at law or in equity.  This Section 8 is not the exclusive remedy for any violation of this Agreement.

9.    Termination.

(a)     Unless otherwise mutually agreed to in writing by each Party, this Agreement shall terminate on the earliest to occur of (i) thirty (30) days prior to the nomination deadline pursuant to the Company’s Amended and Restated Bylaws in connection with the Company’s 2023 Annual Meeting of Stockholders and (B) one hundred-twenty (120) days prior to the first anniversary of the date on which the Company first mailed its proxy materials or a notice of availability of proxy materials for the 2022 Annual Meeting (the effective date of such 
8

termination, the “Termination Date”). Upon the Termination Date, this Agreement shall forthwith become null and void, but no termination shall relieve any Party from liability for any breach of this Agreement prior to such termination. Notwithstanding the foregoing, this Section 9 and Sections 10, 12, 13, 17 and 19 shall survive the termination of this Agreement.

10.    Expenses.

All fees, costs and expenses incurred in connection with this Agreement and all matters related hereto will be paid by the Party incurring such fees, costs or expenses. Notwithstanding the foregoing, the Company shall reimburse the Pale Fire Parties for their reasonable documented out of pocket fees and expenses, including legal fees incurred in connection with the negotiation and entry into this Agreement and the matters related thereto, in an amount not to exceed $75,000.

11.    Severability.

If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated. It is hereby stipulated and declared to be the intention of the Parties that the Parties would have executed the remaining terms, provisions, covenants and restrictions without including any of such which may be hereafter declared invalid, void or unenforceable. In addition, the Parties agree to use their best efforts to agree upon and substitute a valid and enforceable term, provision, covenant or restriction for any of such that is held invalid, void or enforceable by a court of competent jurisdiction.

12.    Notices.

Any notices, consents, determinations, waivers or other communications required or permitted to be given under the terms of this Agreement must be in writing and will be deemed to have been delivered: (a) upon receipt, when delivered personally; (b) upon confirmation of receipt, when sent by email (provided such confirmation is not automatically generated); or (c) two (2) business days after deposit with a nationally recognized overnight delivery service, in each case properly addressed to the Party to receive the same. The addresses and email addresses for such communications shall be:

If to the Company:

						
	Groupon, Inc.
	600 W. Chicago Ave.
	Chicago, Illinois 60654
	E-mail:	ddrobny@groupon.com
	Attention:	Dane Drobny

With a copy (which will not constitute notice) to:

Winston & Strawn LLP
35 West Wacker Drive
Chicago, Illinois 60601
Email:            sgavin@winston.com
Attention:    Steven J. Gavin
9

If to the Pale Fire Parties:
 
						
	Pale Fire Capital SE
	Žatecká 55/14
	110 00 Prague, Czech Republic
	Email:	dusan@palefire.com
	Attention:	Dušan Šenkypl

With a copy (which will not constitute notice) to:

Olshan Frome Wolosky LLP
1325 Avenue of the Americas
New York, New York 10019
Email:            rnebel@olshanlaw.com
Attention:    Ryan Nebel

    13.    Applicable Law.

This Agreement and all claims and causes of action hereunder, whether in tort or contract, or at law or in equity, shall be governed by and construed and enforced in accordance with the laws of the State of Delaware without reference to the conflict of laws principles thereof that would result in the application of the law of another jurisdiction. Each of the Parties hereto irrevocably agrees that any legal action or proceeding with respect to this Agreement and the rights and obligations arising hereunder, or for recognition and enforcement of any judgment in respect of this Agreement and the rights and obligations arising hereunder brought by the other Party hereto or its successors or assigns, whether in tort or contract or at law or in equity, shall be brought and determined exclusively in the Delaware Court of Chancery and any state appellate court therefrom within the State of Delaware (or, if the Delaware Court of Chancery declines to accept jurisdiction over a particular matter, any federal court within the State of Delaware). Each of the Parties hereto hereby irrevocably submits with regard to any such action or proceeding for itself and in respect of its property, generally and unconditionally, to the personal jurisdiction of the aforesaid courts and agrees that it will not bring any action relating to this Agreement in any court other than the aforesaid courts. Each of the Parties hereto hereby irrevocably waives, and agrees not to assert in any action or proceeding with respect to this Agreement, (a) any claim that it is not personally subject to the jurisdiction of the above-named courts for any reason, (b) any claim that it or its property is exempt or immune from jurisdiction of any such court or from any legal process commenced in such courts (whether through service of notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise) and (c) to the fullest extent permitted by applicable legal requirements, any claim that (i) the suit, action or proceeding in such court is brought in an inconvenient forum, (ii) the venue of such suit, action or proceeding is improper or (iii) this Agreement, or the subject matter hereof, may not be enforced in or by such courts. Without limiting the foregoing, each Party agrees that service of process as provided in Section 12 shall be deemed effective services of process on such Party.

    14.    Counterparts.

This Agreement may be executed in two or more counterparts, each of which shall be considered one and the same agreement and shall become effective when counterparts have been 
10

signed by each of the Parties and delivered to the other Party (including by means of electronic delivery or facsimile).

    15.    Mutual Non-Disparagement.

Subject to applicable law, each of the Parties covenants and agrees that, until the Termination Date, or if earlier, until such time as the other Party or any of its agents, subsidiaries, controlled Affiliates, successors, assigns, partners, members, officers, key employees or directors shall have breached this Section 15, neither it nor any of its respective agents, subsidiaries, controlled Affiliates, successors, assigns, partners, members, officers, key employees or directors shall in any way publicly criticize, disparage, call into disrepute or otherwise defame or slander the other Party or such other Party’s subsidiaries, Affiliates, successors, assigns, officers (including any current officer of a Party or a Party’s subsidiaries who no longer serves in such capacity at any time following the execution of this Agreement), directors (including any current director of a Party or a Party’s subsidiaries who no longer serves in such capacity at any time following the execution of this Agreement), employees or any of its businesses, products or services, in any manner that would reasonably be expected to damage the business or reputation of such other Party, its businesses, products or services or subsidiaries, Affiliates, successors, assigns, officers (or former officers), directors (or former directors) or employees.

16.    No Litigation. 

Prior to the Termination Date, each Party hereby covenants and agrees that it shall not, and shall not permit any of its representatives acting on its behalf to, directly or indirectly, alone or in concert with others, encourage, pursue, threaten or initiate any lawsuit, claim or proceeding before any court (each, a “Legal Proceeding”) against the other Party, except for (a) any Legal Proceeding initiated primarily to remedy a breach of or to enforce this Agreement; (b) counterclaims with respect to any Legal Proceeding initiated by, or on behalf of one Party or its Affiliates against the other Party or its Affiliates; (c) any Legal Proceeding initiated primarily to exercise a Party’s statutory appraisal rights; or (d) any Legal Proceeding initiated primarily by the Pale Fire Parties to receive damages or settlement proceeds in their capacities as stockholders of the Company in connection with a class action proceeding brought by a named plaintiff other than the Pale Fire Parties; provided, however, that the foregoing shall not prevent any Party or any of its representatives from responding to oral questions, interrogatories, requests for information or documents, subpoenas, civil investigative demands or similar processes (each, a “Legal Requirement”) in connection with any Legal Proceeding if such Legal Proceeding has not been initiated by, on behalf of or at the direct or indirect suggestion of such Party or any of its representatives acting on its behalf; provided, further, that in the event any Party or any of its representatives receives such a Legal Requirement, such Party shall give prompt written notice of such Legal Requirement to the other Party (except where such notice would be legally prohibited or not practicable). Each Party represents and warrants that, as of the date of this Agreement, it has not filed any lawsuit against the other Party.

17.     Confidentiality.

Each New Director and the Observer may provide any confidential or non-public information of the Company which such person learns in his capacity as a director of the Company or as an observer at any Board Meeting, respectively, including discussions or matters considered in meetings of the Board or Board committees (collectively and individually, “Company Confidential Information”), to the Pale Fire Parties, their Affiliates, Associates, employees and legal counsel (collectively, including the Pale Fire Parties, the “Pale Fire Representatives”), in each case, solely to the extent such Pale Fire Representatives need to know 
11

such information to assist the New Directors in the performance of their duties or in connection with the Pale Fire Parties’ investment in the Company; provided, however, that the Pale Fire Parties (i) shall inform such other Pale Fire Representatives of the confidential nature of any such Company Confidential Information and (ii) shall, and shall cause any other Pale Fire Representatives to, refrain from (x) disclosing any Company Confidential Information (whether to any company in which the Pale Fire Parties have an investment or otherwise), by any means, or (y) using any Company Confidential Information in any way other than to assist the New Directors in the performance of their duties or in connection with the Pale Fire Parties’ investment in the Company.  The New Directors, Observer and the Pale Fire Parties shall not, without the prior written consent of the Company, otherwise disclose any Company Confidential Information to any third party (excluding, for the avoidance of doubt, the Company and its directors, officers, employees, agents, advisors and legal counsel) except as expressly permitted by this Section 17. The obligations set forth in this Section 17 shall expire twelve (12) months after the date on which neither the First New Director nor the Second New Director serves as a director of the Company; provided, that each Pale Fire Representative shall maintain in accordance with the confidentiality obligations set forth herein any Company Confidential Information constituting trade secrets for such longer time as such information constitutes a trade secret of the Company.   

    18.    Securities Laws.

The Pale Fire Parties acknowledge that they understand their obligations under the U.S. securities laws. Subject to compliance with such laws, the Pale Fire Parties shall in any event be free to trade or engage in such transactions during periods when the members of the Board are permitted to do so, and the Company shall notify the Pale Fire Parties reasonably in advance when such “open window” trading periods begin and end. The Company acknowledges that none of the provisions herein shall in any way limit the activities of the Pale Fire Parties in their respective ordinary course of businesses if such activities do not violate applicable securities laws or the obligations specifically agreed to under this Agreement. In addition, nothing contained in this Agreement shall restrict the ability of the Pale Fire Parties from purchasing, selling or otherwise trading securities of the Company pursuant to any Rule 10b5-1 trading plan adopted in accordance with applicable law. For the avoidance of doubt, it is understood and agreed that any restrictions contained in any policies, procedures, processes, codes, rules, standards and guidelines applicable to other directors of the Company (collectively, the “Company Policies”) that are applicable to the New Directors (in their capacities as such), including any restrictions on pledging or making purchases on margin, or entering into derivative or hedging arrangements (including options) with respect to, securities of the Company, or otherwise trading the Company’s securities during open window trading periods shall be deemed to apply to Pale Fire (and any of its affiliated entities). It is understood and agreed that, consistent with the Company Policies, Pale Fire (and any of its affiliated entities) shall not be free to trade in the Company’s securities during “open window” trading periods without the prior approval of the Company, and shall be prohibited from trading during blackout periods established by the Company and generally applicable to all of the Company’s directors.  

    19.    Entire Agreement; Amendment and Waiver; Successors and Assigns; Third Party Beneficiaries; Term.

The Company and Pale Fire hereby agree to terminate the Confidentiality Agreement dated June 3, 2022, by and between such parties, effective upon the execution of this Agreement. This Agreement contains the entire understanding of the Parties with respect to its subject matter. There are no restrictions, agreements, promises, representations, warranties, covenants or undertakings between the Parties other than those expressly set forth herein. No modifications of this Agreement can be made except in writing signed by an authorized representative of each the 
12

Company and the Pale Fire Parties. No failure on the part of any Party to exercise, and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of such right, power or remedy by such Party preclude any other or further exercise thereof or the exercise of any other right, power or remedy. All remedies hereunder are cumulative and are not exclusive of any other remedies provided by law. The terms and conditions of this Agreement shall be binding upon, inure to the benefit of, and be enforceable by the Parties hereto and their respective successors, heirs, executors, legal representatives, and permitted assigns. No Party shall assign this Agreement or any rights or obligations hereunder without, with respect to the Pale Fire Parties, the prior written consent of the Company, and with respect to the Company, the prior written consent of the Pale Fire Parties. This Agreement is solely for the benefit of the Parties and is not enforceable by any other persons or entities. 

[The remainder of this page intentionally left blank]
13

IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the duly authorized signatories of the Parties as of the date first written above.

									
			
	COMPANY:

Groupon, Inc.

		
	By:		/s/ Damien Schmitz
		 	Name: Damien Schmitz
		 	Title: Interim Chief Financial Officer
	

									
			
	PALE FIRE PARTIES:

Pale Fire Capital SE

		
	By:		/s/ Dusan Senkypl
		 	Name: Dusan Senkypl
		 	Title: Chairman of the Board
	

									
			
	
		
			/s/ Dusan Senkypl
		 	Dusan Senkypl
		 	
	
			
	
		
			/s/ Jan Barta
		 	Jan Barta
		 	
	

Exhibit A

Press Release

[See Exhibit 99.1 filed with this Form 8-K on June 13, 2022]Exhibit 10.1

 

VOTING AND SUPPORT AGREEMENT

 

This VOTING AND SUPPORT AGREEMENT (this “Agreement”)
is entered into as of June 12, 2022, by and among Steel Connect, Inc., a Delaware corporation (the “Company”), Steel
Partners Holdings L.P., a Delaware limited partnership (“Parent”), Handy & Harman Ltd., a Delaware corporation
(“Handy”), WHX CS Corp., a Delaware corporation (“WHX”), Steel Partners, Ltd., a Delaware corporation
(“SPL”), SPH Group LLC, a Delaware limited liability company (“SPH”), SPH Group Holdings LLC, a
Delaware limited liability company (“SPH Holdings”), Steel Partners Holdings GP Inc., a Delaware corporation (“GP”),
Steel Excel Inc., a Delaware corporation (“SXL”), Warren G. Lichtenstein, an individual (“Lichtenstein”),
and Jack L. Howard, an individual (“Howard”, and together with Handy, WHX, SPL, SPH, SPH Holdings, GP, SXL and Lichtenstein,
the “Stockholders” and each a “Stockholder”).

 

WHEREAS, Parent, SP Merger Sub, Inc., a Delaware
corporation and a direct wholly-owned subsidiary of Parent (“Merger Sub”), and the Company have, concurrently with
the execution of this Agreement, entered into an Agreement and Plan of Merger, dated as of the date hereof (as may be amended, supplemented
or otherwise modified from time to time in accordance with its terms, the “Merger Agreement”), which provides, among
other things, for the merger of Merger Sub with and into the Company, with the Company continuing as the surviving corporation and a subsidiary
of Parent (the “Merger”), upon the terms and subject to the conditions set forth in the Merger Agreement;

 

WHEREAS, as of the date hereof, each of the Stockholders
is the record owner and/or Beneficial Owner of the number of outstanding shares of Common Stock as set forth in Amendment No. 28
to the Schedule 13D filed by the Stockholders with the U.S. Securities and Exchange Commission on June 1, 2022 (the “Schedule
13D/A”), which is incorporated herein by reference;

 

WHEREAS, as a condition and inducement to the
willingness of the Company to enter into the Merger Agreement and consummate the transactions contemplated thereby, including the Merger,
the Company has required that each Stockholder agree, and each Stockholder has agreed, upon the terms and subject to the conditions set
forth herein, to enter into this Agreement and abide by the covenants and obligations set forth herein; and

 

WHEREAS, each Stockholder acknowledges that Parent,
the Company and Merger Sub are entering into the Merger Agreement in reliance on the representations, warranties, covenants and other
agreements of each Stockholder set forth in this Agreement.

 

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

 

Article
I

 

DEFINED TERMS

 

Section 1.1
Defined Terms. The following terms, as used
in this Agreement, shall have the meanings set forth below. Terms used but not otherwise defined herein shall have the meanings ascribed
thereto in the Merger Agreement.

 

(a)
 “Additional Shares” means, with respect to each Stockholder, the Common Stock,
Preferred Stock or other voting capital stock of the Company that such Stockholder acquires Beneficial Ownership of after the date of
this Agreement.

 

     

     

    

 

(b)
“Beneficial Ownership” by a person of any security includes ownership by any person
who, directly or indirectly, through any Contract, arrangement, understanding, relationship or otherwise (whether or not in writing),
has or shares: (i) voting power which includes the power to vote, or to direct the voting of, such security; and/or (ii) investment power
which includes the power to dispose, or to direct the disposition, of such security; and shall otherwise be interpreted in accordance
with the term “beneficial ownership” as defined in Rule 13d-3 adopted by the SEC under the Exchange Act. Without duplicative
counting of the same securities by the same holder, securities Beneficially Owned by a person will include securities Beneficially Owned
by all Affiliates of such person and all other persons with whom such person would constitute a “group” within the meaning
of Section 13(d) of the Exchange Act. The terms “Beneficially Own,” “Beneficially Owned” and “Beneficial
Owner” shall have correlative meanings.

 

(c)
“Common Stock” means the shares of common stock, par value $0.01 per share, of
the Company, and will also include for purposes of this Agreement all shares or other voting securities into which shares of Common Stock
or such other shares or voting securities may be reclassified, sub-divided, consolidated or converted and any rights and benefits arising
therefrom, including any dividends or distributions of securities which may be declared in respect of the shares of common stock and entitled
to vote in respect of the matters contemplated by Article II.

 

(d)
“Contemplated Transactions” shall have the meaning set forth in Section 2.1(a).

 

(e)
“Covered Securities” means the Existing Shares and any Additional Shares.

 

(f)  
“Existing Shares” means, with respect to each Stockholder, the shares of Common
Stock and/or Preferred Stock Beneficially Owned by such Stockholder on the date hereof as listed the Schedule 13D/A.

 

(g)
“Preferred Stock” means the shares of Series C preferred stock, par value $0.01
per share, of the Company, and will also include for purposes of this Agreement all shares or other voting securities into which shares
of Preferred Stock or such other shares or voting securities may be reclassified, sub-divided, consolidated or converted and any rights
and benefits arising therefrom, including any dividends or distributions of securities which may be declared in respect of the shares
of preferred stock and entitled to vote in respect of the matters contemplated by Article II.

 

(h) “Transfer”
means, directly or indirectly, to (i) issue, sell, short, transfer, offer, exchange, assign, pledge, encumber, subject to an
Encumbrance, hypothecate or otherwise dispose of (by merger, by tendering into any tender or exchange offer, by testamentary
disposition, by operation of law or otherwise), either voluntarily or involuntarily, any Covered Securities; (ii) enter into any
Contract, option or other agreement with respect to any transactions described in clause (i); or (iii) enter into any swap, hedge,
derivative or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of the
Covered Securities, whether settled by delivery of Covered Securities, other securities, in cash or otherwise. For purposes of this
Agreement, the term “Transfer” shall include the transfer (including by way of sale, disposition, operation of
law (including by merger) or any other means) of an Affiliate of any Stockholder or any Stockholder’s interest in an Affiliate
which Beneficially Owns any Covered Securities. The terms “Transferring”, “Transferee”,
“Transferred” or similar words shall have correlative meanings to Transfer.

 

    2

     

    

 

Article
II

 

VOTING; GRANT AND APPOINTMENT OF PROXY

 

Section 2.1
Voting. From and after the date hereof until
the Expiration Time (as defined herein), each Stockholder irrevocably and unconditionally hereby agrees that at the Company Meeting or
any other annual or special meeting of the stockholders of the Company, however called, including any adjournment, recess or postponement
thereof, or in connection with any written consent of the Company’s stockholders and in any other circumstance upon which a vote,
consent or approval of all or some of the stockholders of the Company is sought, in each case, with respect to which any of the matters
described in clauses (a) through (e) of this Section 2.1 is to be considered, each Stockholder shall, and shall cause any holder
of record of its Covered Securities to, unless the Board or any Independent Committee has made a Change in Recommendation that has not
been rescinded or otherwise withdrawn, (i) appear, in person or by proxy, at each such meeting or cause its representative(s) to appear
at such meeting or otherwise cause its Covered Securities to be counted as present thereat for purposes of determining whether a quorum
is present and respond to each request by the Company for written consent, if any, and (ii) vote or cause to be voted, in person or by
proxy, or deliver or cause to be delivered a written consent covering, all of such Stockholder’s Covered Securities:

 

(a)
in favor of the adoption and approval of the Merger Agreement, and the other transactions contemplated
thereby, including the Merger (the “Contemplated Transactions”);

 

(b)
in favor of any Alternative Acquisition Agreement approved by the Company Board (acting on the recommendation
of the Special Committee, or the Special Committee in accordance with the provisions of Section 5.4(d)(ii) of the Merger Agreement;

 

(c) against
any action, proposal, agreement or transaction that is intended, that could reasonably be expected, or the effect of which could
reasonably be expected, to change in any manner the voting rights of any class of shares of the Company or materially impede,
interfere with, delay, postpone, frustrate, discourage or adversely affect the timely consummation of the Contemplated Transactions
or any Alternative Acquisition Agreement approved as described in Section 2.1(b), or the performance by such Stockholder of its
obligations under this Agreement, including, without limitation: (i) any extraordinary corporate transaction, such as a merger,
consolidation or other business combination involving the Company or any of its Subsidiaries (other than the Merger) unless such
transaction is previously approved in writing by Parent; (ii) a sale, lease or transfer of a material amount of assets of the
Company or any of its Subsidiaries (other than the Merger or any transactions contemplated by the Merger Agreement (or any
Alternative Acquisition Agreement approved as described in Section 2.1(b))) or a reorganization, recapitalization or liquidation of
the Company or any of its Subsidiaries that is prohibited by the Merger Agreement (or any Alternative Acquisition Agreement approved
as described in Section 2.1(b)) unless such transaction is previously approved in writing by Parent; (iii) an election of new
members to the Board, other than nominees to the Board who are serving as directors of the Company on the date of this Agreement,
except if previously approved in writing by Parent; or (iv) any material change in the present capitalization or dividend policy of
the Company or any amendment or other change to the Company’s Certificate of Incorporation or Bylaws;

 

(d)
against any action, proposal, transaction or agreement that could reasonably be expected to result
in (i) a breach in any respect of any covenant, representation or warranty or any other obligation or agreement of the Company contained
in the Merger Agreement (or in any Alternative Acquisition Agreement approved as described in Section 2.1(b)), or of any Stockholder contained
in this Agreement or the Merger Agreement, or (ii) any of the conditions to the consummation of the Merger under the Merger Agreement
(or the transactions contemplated by any Alternative Acquisition Agreement approved as described in Section 2.1(b)) not being fulfilled;
and

 

(e)
in favor of any other action, proposal, transaction or agreement necessary to consummate the Merger
and the transactions contemplated by the Merger Agreement (or the transactions contemplated by any Alternative Acquisition Agreement approved
as described in Section 2.1(b)).

 

    3

     

    

 

Section 2.2
Grant of Irrevocable Proxy; Appointment of Proxy.

 

(a)
Effective immediately upon the execution of the Merger Agreement and until the Expiration Time, each
Stockholder hereby irrevocably and unconditionally grants a proxy to, and appoints, the Company, as its sole and exclusive proxies and
attorney-in-fact (with full power of substitution and resubstitution), for and in such Stockholder’s name, place and stead, to vote
or cause to be voted (including by execution and delivery of proxies or acting by written consent, if applicable) the Covered Securities
in accordance with Section 2.1 hereof at the Company Meeting or other annual or special meeting of the stockholders of the Company,
however called, including any postponement or adjournment thereof, or in connection with any action sought to be taken by written consent
of the stockholders of the Company without a meeting.

 

(b)
Each Stockholder represents that any proxies heretofore given in respect of such Stockholder’s
Covered Securities, if any, are revocable, and hereby revokes all such proxies.

 

(c)
Each Stockholder affirms that the irrevocable proxy and power of attorney set forth in this Section
2.2 is given in connection with the execution of the Merger Agreement, and that such irrevocable proxy is given to secure the performance
of the duties of such Stockholder under this Agreement and is granted in accordance with the provisions of Section 212 of the DGCL. Each
Stockholder further (x) affirms that such irrevocable proxy is (i) coupled with an interest by reason of the Merger Agreement and, (ii)
executed and intended to be (and is) irrevocable in accordance with the provisions of Section 212 of the DGCL prior to the Expiration
Time and (y) ratifies and confirms all that the proxy holders appointed hereunder may lawfully do or cause to be done in compliance with
the express terms hereof. If for any reason the proxy granted herein is not valid, then each Stockholder agrees to vote such Stockholder’s
Covered Securities in accordance with Section 2.1 hereof prior to the Expiration Time. The parties hereto agree that the foregoing
is a voting agreement.

 

Section 2.3 Restrictions
on Transfers.

 

(a)
Each Stockholder hereby agrees that, from the date hereof until the Expiration Time, such Stockholder
shall not, without the prior written consent of the Independent Committee, directly or indirectly, (i) Transfer (or cause or permit the
Transfer of), either voluntarily or involuntarily, or enter into any Contract, option or other arrangement or understanding with respect
to the Transfer of, any Covered Securities or any interest therein, including, without limitation, any swap transaction, option, warrant,
forward purchase or sale transaction, futures transaction, cap transaction, floor transaction, collar transaction or any other similar
transaction (including any option with respect to any such transaction) or combination of any such transactions, in each case involving
any Covered Securities, (ii) deposit any Covered Securities into a voting trust or enter into a voting agreement or arrangement or grant
any proxy or power of attorney with respect thereto that is inconsistent with this Agreement, (iii) convert or exchange, or take any action
which would result in the conversion or exchange, of any Covered Securities, (iv) take any action that would make any representation or
warranty of such Stockholder set forth in this Agreement untrue or incorrect or have the effect of preventing, disabling, or materially
delaying such Stockholder from performing any of its obligations under this Agreement, or (v) agree (whether or not in writing) to take
any of the actions referred to in the foregoing clauses (i), (ii) (iii) or (iv). Any purported Transfer in violation of this Section
2.3 shall be void and of no force or effect and each Stockholder acknowledges that the Company will not register or permit the registration
of or otherwise facilitate or effect any such Transfer.

 

(b)
This Agreement and the obligations hereunder shall attach to the Covered Securities and shall be
binding upon any person to which legal or Beneficial Ownership shall pass, whether by operation of Law or otherwise, including, each Stockholder’s
successors or assigns. Each Stockholder covenants and agrees that it will not request that the Company register the Transfer (book-entry
or otherwise) of any certificate or uncertificated interest representing any or all of the Covered Shares, unless such Transfer is made
in compliance with this Agreement.

 

    4

     

    

 

Article
III

 

REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE STOCKHOLDERS

 

Section 3.1
Representations and Warranties. Each Stockholder
represents and warrants to the Company as of the date hereof:

 

(a)
if not a natural person, such Stockholder is a corporation or limited liability company duly organized,
validly existing and in good standing (to the extent the relevant jurisdiction recognizes such concept of good standing) under the laws
of the jurisdiction of its incorporation and has the requisite corporate power and authority to own, lease and operate its properties
and to carry on its business as it is now being conducted;

 

(b)
such Stockholder has full legal right, power, capacity and authority to execute and deliver this
Agreement, to perform such Stockholder’s obligations hereunder and to consummate the transactions contemplated hereby;

 

(c) this
Agreement has been duly executed and delivered by such Stockholder and the execution, delivery and performance of this Agreement by
such Stockholder and the consummation of the transactions contemplated hereby have been duly authorized by all necessary action on
the part of such Stockholder and no other actions or proceedings on the part of such Stockholder are necessary to authorize this
Agreement or to consummate the transactions contemplated hereby;

 

(d)
assuming due authorization, execution and delivery by the other parties hereto, this Agreement constitutes
a legal, valid and binding agreement of such Stockholder, enforceable against such Stockholder in accordance with its terms, except as
enforcement may be limited by the Bankruptcy and Equity Exceptions;

 

(e)
(i) such Stockholder (A) is the Beneficial Owner of and, immediately prior to the Closing, will be
the Beneficial Owner of, and has and will have good and valid title to, its Existing Shares, free and clear of Liens other than as created
by this Agreement, and (B) owns, of record and/or Beneficially, or controls all of its Covered Securities; (ii) its Covered Securities
are not subject to any voting trust agreement or other Contract to which such Stockholder is a party restricting or otherwise relating
to the voting or Transfer of the Covered Securities other than this Agreement; (iii) such Stockholder has not Transferred any interest
in any of its Covered Securities; (iv) as of the date hereof, other than the Existing Shares set forth in the Schedule 13D/A, such Stockholder
does not Beneficially Own or own of record, any shares of Common Stock; and (v) such Stockholder has not appointed or granted any proxy
or power of attorney that is still in effect with respect to any of the Existing Shares and with respect to any of the Covered Securities
Beneficially Owned at all times through the Closing Date and with no limitations, qualifications or restrictions on such rights, except
as contemplated by this Agreement;

 

(f)  
except for (i) the applicable requirements of the Exchange Act and (ii) as provided in the Merger
Agreement, (A) no filing with, and no permit, authorization, consent or approval of, any Governmental Entity is necessary on the part
of such Stockholder for the execution, delivery and performance of this Agreement by such Stockholder or the consummation by such Stockholder
of the transactions contemplated by this Agreement and the Merger Agreement, and (B) neither the execution, delivery or performance of
this Agreement by such Stockholder nor the consummation by such Stockholder of the transactions contemplated hereby, nor compliance by
such Stockholder with any of the provisions hereof shall (1) if such Stockholder is an entity, conflict with or violate any provision
of the organizational documents of such Stockholder, (2) result in any breach or violation of, or constitute a default (or an event which,
with notice or lapse of time or both, would become a default) under, or give to others any rights of termination, amendment, acceleration
or cancellation of, or result in the creation of any Encumbrance on property or assets of such Stockholder pursuant to any Contract to
which such Stockholder is a party or by which such Stockholder or any property or asset of such Stockholder is bound or affected, or (3)
violate any Law or Order applicable to such Stockholder or any of such Stockholder’s properties or assets;

 

    5

     

    

 

(g)
there is no Proceeding pending against such Stockholder or, to the knowledge of such Stockholder,
any other Person or, to the knowledge of such Stockholder, threatened against such Stockholder or any other Person that restricts or prohibits
(or, if successful, would, or could reasonably be expected to, restrict or prohibit) the performance by such Stockholder of its obligations
under this Agreement or challenges the validity of this Agreement; and

 

(h)
 except for this Agreement, no Stockholder has taken any action that would constitute a breach hereof,
make any representation or warranty of such Stockholder set forth in this Article III untrue or incorrect or have the effect of
preventing or delaying or impeding the ability of such Stockholder from performing any of his, her or its obligations under this Agreement.

 

Section 3.2
Other Covenants. Each Stockholder hereby:

 

(a)
agrees and covenants, prior to the Expiration Time, not to knowingly take any action, directly or
indirectly, that could reasonably be expected to (i) result in a breach hereof, (ii) make any representation or warranty of such Stockholder
contained herein untrue or incorrect or (iii) have the effect of preventing, delaying, impeding or interfering with or adversely affecting
the ability of such Stockholder from performing any of its obligations under this Agreement;

 

(b)
irrevocably waives, and agrees not to exercise, any rights of appraisal or any dissenters’
rights under applicable Law at any time with respect to the Merger that such Stockholder may have with respect to any and all of such
Stockholder’s Covered Securities, whether held of record or Beneficially Owned (including any appraisal or dissenters’ rights
pursuant to Section 262 of the DGCL) prior to the Expiration Time; and

 

(c)
agrees and covenants to (i) permit the Company to publish and disclose in any press release or in
the Proxy Statement (including all documents and schedules filed with the SEC in accordance therewith) or other disclosure document required
in connection with the Merger Agreement or the Contemplated Transactions, such Stockholder’s identity and Beneficial Ownership of
Covered Securities and the nature of such Stockholder’s commitments, arrangements and understandings under this Agreement (“Stockholder
Information”) and (ii) cooperate with the Company in connection with such filings, including providing Stockholder Information
requested by the Company and notifying the Company if and to the extent such Stockholder becomes aware that any such Stockholder Information
is or shall have become false or misleading.

 

Section 3.3
Stock Dividends, etc. In the event of a reclassification,
recapitalization, reorganization, stock split (including a reverse stock split) or combination, exchange or readjustment of shares or
other similar transaction, or if any stock dividend, subdivision or distribution (including any dividend or distribution of securities
convertible into or exchangeable for shares of Common Stock) is declared, in each case affecting the Covered Securities, the terms “Existing
Shares,” “Additional Shares” and “Covered Shares” shall be deemed to refer to and include
such shares as well as all such stock dividends and distributions and any securities of the Company into which or for which any or all
of such shares may be changed or exchanged or which are received in such transaction.

 

Article
IV

 

TERMINATION

 

Section 4.1 Termination.
This Agreement, and the obligations of the Stockholders hereunder (including, without limitation, Section 2.2 hereof), shall
terminate and be of no further force or effect immediately upon the earliest to occur (the “Expiration Time“) of
(a) the Effective Time, (b) the later of the date of valid termination of (x) the Merger Agreement or (y) any Alternative
Acquisition Agreement approved as described in Section 2.1(b), in accordance with its respective terms, and (c) at any time upon the
written agreement of the Company (acting at the direction of the Special Committee) and Parent; provided, that, for
the avoidance of doubt, to the extent the termination of the Merger Agreement is contested, no party shall be released from
liability for violating the terms of this Agreement if a court of competent jurisdiction finally determines that the Merger
Agreement had not, in fact, been validly terminated and, therefore, this Agreement had not been validly terminated. Notwithstanding
the preceding sentence, this Article IV and Article V hereof shall survive any termination of this Agreement. Nothing
in this Article IV shall relieve or otherwise limit any party’s liability for any breach of this Agreement prior to the
termination of this Agreement.

 

    6

     

    

 

Article
V

 

MISCELLANEOUS

 

Section 5.1
Notices. All notices, requests and other communications
to any party under, or otherwise in connection with, this Agreement shall be in writing and shall be deemed to have been duly given on
the date of delivery (a) if delivered in person; (b) if transmitted by electronic mail (“e-mail”) (but only if confirmation
of receipt of such e-mail is requested and received; provided that each notice Party shall use reasonable best efforts to confirm
receipt of any such email correspondence promptly upon receipt of such request); or (c) if transmitted by national overnight courier,
in each case as addressed as follows (or at such other address for a party as shall be specified in a notice given in accordance with
this Section 5.1):

 

(a)
If to any Stockholder:

 

Steel Partners Holdings L.P.

590 Madison Avenue

New York, New York 10022

Attention: ***

Email: ***

 

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

 

Greenberg Traurig, LLP

333 SE 2nd Avenue, Suite 4400

Miami, FL 33131

Attention: Alan I. Annex and Brian H. Blaney

Email: annexa@gtlaw.com and blaneyb@gtlaw.com

 

(b)
If to the Company:

 

Steel Connect, Inc.

2000 Midway Lane

Smyrna, Tennessee, 37167

Attention: ***

Email: ***

 

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

 

Dentons US LLP

22 Little West 12th Street

New York, New York 10014

Attention: Victor H. Boyajian, Ira L. Kotel, and Ilan Katz

Email: Victor.boyajian@us.dentons.com;

ira.kotel@dentons.com; and ilan.katz@dentons.com

 

And

 

White & Case LLP

1221 Avenue of the Americas

New York, New York 10020-1095

Attention: Colin J. Diamond, Andrew J. Ericksen, Adam Cieply

Email: cdiamond@whitecase.com; aj.ericksen@whitecase.com; and 

adam.cieply@whitecase.com

 

    7

     

    

 

Section 5.2
Capacity. Notwithstanding anything to the
contrary in this Agreement, (i) each Stockholder is entering into this Agreement, and agreeing to become bound hereby, solely in its capacity
as a Beneficial Owner of its Covered Securities owned by it and not in any other capacity (including, without limitation, in any capacity
as a director of the Board or officer of the Company) and (ii) nothing in this Agreement shall obligate such Stockholder or its Representatives
to take, or forbear from taking, in its capacity as a director of the Board or officer of the Company, any action which is inconsistent
with its or his fiduciary duties under applicable Law.

 

Section 5.3
Severability. Each party hereto agrees that,
should any court or other competent authority hold any provision of this Agreement or part of this Agreement to be null, void or unenforceable,
or order any party to take any action inconsistent herewith or not to take an action consistent with the terms of, or required by, this
Agreement, the validity, legality and enforceability of the remaining provisions and obligations contained or set forth in this Agreement
shall not in any way be affected or impaired, unless the foregoing inconsistent action or the failure to take an action constitutes a
material breach of this Agreement or makes this Agreement impossible to perform, in which case this Agreement shall terminate. Upon such
determination that any term or other provision is null, void or unenforceable, the parties hereto shall negotiate in good faith to modify
this Agreement so as to effect the original intent of the parties hereto as closely as possible in a mutually acceptable manner.

 

Section 5.4
Entire Agreement. This Agreement and the Merger
Agreement, including the Company Disclosure Letter and the exhibits thereto, together with the other instruments referred to therein,
constitute the entire agreement and supersedes all prior agreements and understandings, both written and oral, among the parties, or any
of them, with respect to the subject matter hereof and thereof.

 

Section 5.5 Specific
Performance. The parties agree that irreparable damage, for which monetary damages
would not be an adequate remedy, would occur in the event that any of the provisions of this Agreement were not performed in
accordance with their specific terms or were otherwise breached by the parties. Each Stockholder acknowledges and agrees that (a)
the Company shall be entitled to seek an injunction, specific performance, or other equitable relief, to prevent breaches of this
Agreement and to enforce specifically the terms and provisions hereof, without proof of damages, prior to the Expiration Time, this
being in addition to any other remedy to which the Company may be entitled at law or in equity, and (b) the right of specific
enforcement is an integral part of the transactions contemplated by this Agreement and without that right, the Company would not
have entered into the Merger Agreement. Each Stockholder agrees that it will not oppose the granting of specific performance and
other equitable relief on the basis that the other parties have an adequate remedy at law or that an award of specific performance
is not an appropriate remedy for any reason at law or in equity. Each Stockholder acknowledges and agrees that if the Company seeks
an injunction to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement, it shall
not be required to provide any bond or other security in connection with any such injunction.

 

Section 5.6
Amendments: Waivers. At any time prior to
the Expiration Time, any provision of this Agreement may be amended or waived if, and only if, such amendment or waiver is in writing
and signed, in the case of an amendment, by the Company, each Stockholder and Parent, or in the case of a waiver, by the party against
whom the waiver is to be effective. Notwithstanding the foregoing, no failure or delay by a party hereto in exercising any right hereunder
shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise of any other
right hereunder.

 

Section 5.7
Governing Law: Venue: Waiver of Jury Trial.

 

(a)
THIS AGREEMENT, AND ALL CLAIMS OR CAUSES OF ACTION (WHETHER IN CONTRACT OR TORT) THAT MAY BE BASED
UPON, ARISE OUT OF RELATE TO THIS AGREEMENT, OR THE NEGOTIATION, EXECUTION OR PERFORMANCE OF THIS AGREEMENT, SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT GIVING EFFECT TO THE PRINCIPLES OF CONFLICTS OF LAW THEREOF.

 

(b) THE
PARTIES IRREVOCABLY SUBMIT TO THE JURISDICTION OF THE COURT OF CHANCERY OF THE STATE OF DELAWARE OR, IF THE COURT OF CHANCERY OF THE
STATE OF DELAWARE OR THE DELAWARE SUPREME COURT DETERMINES THAT, NOTWITHSTANDING SECTION 111 OF THE DGCL, THE COURT OF CHANCERY DOES
NOT HAVE OR SHOULD NOT EXERCISE SUBJECT MATTER JURISDICTION OVER SUCH MATTER, THE SUPERIOR COURT OF THE STATE OF DELAWARE AND THE
FEDERAL COURTS OF THE UNITED STATES OF AMERICA LOCATED IN THE STATE OF DELAWARE SOLELY IN CONNECTION WITH ANY DISPUTE THAT ARISES IN
RESPECT OF THE INTERPRETATION AND ENFORCEMENT OF THE PROVISIONS OF THIS AGREEMENT AND THE DOCUMENTS REFERRED TO IN THIS AGREEMENT OR
IN RESPECT OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, AND WAIVE, AND AGREE NOT TO ASSERT, AS A DEFENSE IN ANY ACTION, SUIT
OR PROCEEDING FOR INTERPRETATION OR ENFORCEMENT OF THIS AGREEMENT OR ANY SUCH DOCUMENT THAT IT IS NOT SUBJECT THERETO OR THAT SUCH
ACTION, SUIT OR PROCEEDING MAY NOT BE BROUGHT OR IS NOT MAINTAINABLE IN SAID COURTS OR THAT VENUE THEREOF MAY NOT BE APPROPRIATE OR
THAT THIS AGREEMENT OR ANY SUCH DOCUMENT MAY NOT BE ENFORCED IN OR BY SUCH COURTS, AND THE PARTIES IRREVOCABLY AGREE THAT ALL CLAIMS
WITH RESPECT TO SUCH ACTION, SUIT OR PROCEEDING SHALL BE HEARD AND DETERMINED EXCLUSIVELY BY SUCH A DELAWARE STATE OR FEDERAL
COURT. THE PARTIES CONSENT TO AND GRANT ANY SUCH COURT JURISDICTION OVER THE PERSON OF SUCH PARTIES AND OVER THE SUBJECT MATTER OF
SUCH DISPUTE AND AGREE THAT MAILING OF PROCESS OR OTHER PAPERS IN CONNECTION WITH SUCH ACTION, SUIT OR PROCEEDING IN ANY MANNER AS
MAY BE PERMITTED BY LAW SHALL BE VALID AND SUFFICIENT SERVICE THEREOF.

 

    8

     

    

 

(c)
EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY
TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY
MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED BY THIS AGREEMENT. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (I) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY
HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER;
(II) SUCH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THE FOREGOING WAIVER; (III) SUCH PARTY MAKES THE FOREGOING WAIVER VOLUNTARILY;
AND (IV) SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVER AND CERTIFICATIONS IN THIS
SECTION 5.7.

 

Section 5.8
No Third Party Beneficiaries. There are no
third party beneficiaries of this Agreement and nothing in this Agreement, express or implied, is intended to confer on any person other
than the parties hereto (and their respective successors, heirs and permitted assigns), any rights, remedies, obligations or liabilities,
except as specifically set forth in this Agreement.

 

Section 5.9
Assignment: Binding Effect. Neither this Agreement
nor any of the rights, interests or obligations hereunder shall be assigned by any of the parties hereto (whether by operation of law
or otherwise) without the prior written consent of the other parties, except that Parent may assign this Agreement (in whole but not in
part) in connection with a permitted assignment of the Merger Agreement by Parent, as applicable. Subject to the preceding sentence, this
Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns
and, in the case of any Stockholder that is an individual, his, her or its estate, heirs, beneficiaries, personal representatives and
executors.

 

Section 5.10 No
Presumption Against Drafting Party. Each of the parties to this Agreement acknowledges
that it has been represented by counsel of its choice throughout all negotiations that have preceded the execution of this Agreement
and that it has executed the same with the advice of said counsel. Each party and its counsel cooperated in the drafting and
preparation of this Agreement and the documents referred to in this Agreement, and any and all drafts relating thereto exchanged
between the parties shall be deemed the work product of the parties and may not be construed against any party by reason of its
preparation. Accordingly, any rule of Law or any legal decision that would require interpretation of any ambiguities in this
Agreement against any party that drafted it is of no application and is expressly waived.

 

Section 5.11 Counterparts.
This Agreement may be executed in counterparts, including via facsimile or email in “portable document format” (“.pdf’)
form, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each
of the parties and delivered to the other parties, it being understood that all parties need not sign the same counterpart.

 

Section 5.12 Special
Committee. All amendments or waivers of any provision of this Agreement by the Company
and all decisions or determinations contemplated by this Agreement to be made by the Company shall be made by the Special Committee
and no amendment or waiver of any provision of this Agreement by the Company and no decision or determination contemplated by this
Agreement to be made by the Company shall be made, or action taken, by the Company or the Board with respect to this Agreement
without first obtaining the approval of the Special Committee. The Special Committee, and only the Special Committee, may pursue any
action or litigation with respect to breaches of this Agreement on behalf of the Company.

 

[Remainder of page intentionally left blank]

 

    9

     

    

 

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

 

	 	STOCKHOLDERS
	 	 
	 	Steel Partners Holdings L.P.
	 	 	 
	 	By:	Steel Partners Holdings GP Inc., its general partner
	 	 	 
	 	By:	/s/ Jack L. Howard
	 	Name:	Jack L. Howard
	 	Title:	President
	 	 
	 	Handy & Harman Ltd.
	 	 	 
	 	By:	/s/ Jason Wong
	 	Name: 	Jason Wong
	 	Title:	Senior Vice President
	 	 
	 	WHX CS Corp.
	 	 	                 
	 	By:	/s/ Jason Wong
	 	Name:	Jason Wong
	 	Title:	Senior Vice President
	 	 
	 	Steel Partners, Ltd.
	 	 	 
	 	By:	/s/ Jack L. Howard
	 	Name:	Jack L. Howard
	 	Title:	President
	 	 
	 	SPH Group LLC
	 	 	 
	 	By:	Steel Partners Holdings GP Inc., its managing member
	 	 	 
	 	By:	/s/ Jack L. Howard
	 	Name:	Jack L. Howard
	 	Title:	President
	 	 
	 	SPH Group Holdings LLC
	 	 	 
	 	By:	/s/ Jack L. Howard
	 	Name:	Jack L. Howard
	 	Title:	President

 

     

     

    

 

	 	Steel Partners Holdings GP Inc.
	 	 	 
	 	By:	/s/ Jack L. Howard
	 	Name:	Jack L. Howard
	 	Title:	President
	 	 
	 	Steel Excel Inc.
	 	 	 
	 	By:	/s/ Jason Wong
	 	Name:	Jason Wong
	 	Title:	Senior Vice President
	 	 
	 	Warren G. Lichtenstein
	 	 	 
	 	/s/ Warren G. Lichtenstein
	 	 	 
	 	Jack L. Howard
	 	 	 
	 	/s/ Jack L. Howard
	 	 
	 	COMPANY
	 	 
	 	Steel Connect Inc.
	 	 	 
	 	By:	/s/ Jason Wong
	 	Name:	Jason Wong
	 	Title:	Chief Financial Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00345-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00345-of-00352.parquet"}]]