Document:

EX-10.4

 Exhibit 10.4 

Executive Severance Agreement 

August 15, 2017 
 This Executive
Severance Agreement (this “Agreement”) is between Sears Hometown and Outlet Stores, Inc. (together with its subsidiaries “SHO”) and E. J. Bird (“Executive”). 

Preliminary Statement 
 In accordance
with, and subject to, the terms and conditions of an Offer Letter dated August 15, 2017, Executive has agreed to serve as SHO’s Senior Vice President and Chief Financial Officer (the “Offer Letter”). 

Terms and Conditions 
 Executive and SHO,
intending to be legally bound and for good and valuable consideration, agree as follows: 
 1. Benefits Upon Termination of Employment. 

a. Severance Benefits. If Executive’s employment is involuntarily terminated without Cause or Executive voluntarily terminates
Executive’s employment for Good Reason (as such terms are defined in Section 2 below), Executive will be entitled to the benefits described in Sections 1(a)(i) and (ii) below (collectively, the “Severance Benefits”).
Executive will not be entitled to the Severance Benefits if Executive’s employment terminates for any other reason, including for Cause or due to death or Disability (as defined in Section 2 below). Executive will not be entitled to
Severance Benefits if Executive does not meet all of the other requirements of this Agreement, including those of Section 4(g). 
 i.
Continuation of Salary 
 1. SHO will pay Executive cash severance in an amount equal to twelve (12) months of Executive’s
annual base salary at the rate in effect on the date on which Executive’s employment terminates (the “Date of Termination”). The amount determined in accordance with the preceding sentence (the “Salary Continuation
Amount”) will be paid upon the satisfaction of the following conditions: (A) Executive’s Separation from Service (as defined in Section 2 below) has occurred; and (B) the Revocation Period (as defined in Appendix B to
this Agreement) has expired. If the foregoing conditions have been satisfied, SHO will pay the Salary Continuation Amount in substantially equal installments on each regular salary payroll date for a period of twelve (12) months (the
“Salary Continuation Period”), except as otherwise provided in this Agreement. 
 2. Notwithstanding the foregoing, to the
extent Executive’s termination is as a result of an event that would trigger payments under a then-current and applicable transition pay or severance plan or program (the “Other Severance Program”) under which Executive would
have been eligible for severance pay and benefits for a period longer than the Salary Continuation Period, and provided the severance pay under the Other Severance Program is greater than the Salary Continuation Amount, then the Salary Continuation
Amount and the Salary Continuation Period for purposes of this Agreement will be the greater amount and the longer period provided by the Other Severance Program, except as otherwise provided in this Agreement. 

3. Further and notwithstanding the foregoing, the SHO obligations that may become due under this Section 1(a)(i) will be reduced on a
dollar-for-dollar basis (but not below zero), by the amount, if any, of salary or wages that Executive earns from a subsequent employer (including those arising from self-employment) during the Salary Continuation Period other than all approved

 
external director fees that Executive earns or is otherwise entitled to receive. Executive will not be obligated to seek affirmatively or accept an employment, contractor, consulting or other
arrangement in order to mitigate the Salary Continuation Amount. Further, to the extent Executive does not execute and timely submit the General Release and Waiver (in accordance with Section 4(g) below) by the deadline specified therein,
Salary Continuation Amount payments will terminate, and any entitlement to future Salary Continuation Amount payments will be forfeited, and Executive will be required to reimburse SHO for any portion of the Salary Continuation Amount already paid
to Executive. 
 4. Notwithstanding anything in this Section 1(a)(i) to the contrary, if the Salary Continuation Amount payable to
Executive in accordance with Section 1(a)(i) during the six (6) months after Executive’s Separation from Service would exceed the Section 409A Threshold and if as of the date of the Separation from Service Executive is a
Specified Employee (as such terms are defined in Section 2 below), then payment will be made to Executive on each regular salary payroll date during the first six (6) months of the Salary Continuation Period until the aggregate amount
received equals the Section 409A Threshold. Any portion of the Salary Continuation Amount that is in excess of the Section 409A Threshold and that would otherwise be paid during such six (6) months will instead be paid to Executive in
a lump sum payment on the date that is six (6) months and one (1) day after the date of Executive’s Separation from Service. 

5. All Salary Continuation Amount payments (described under this Section 1(a)(i)) will terminate if Executive is employed by a SHO
Competitor or SHO Vendor (as such terms are defined in Sections 4(c)(ii) and 4(d)(ii) herein, respectively) during the Salary Continuation Period (which for purposes of this Section 1(a)(i)(3) will not exceed twelve (12) months), or in the
event of Executive’s breach of this Agreement (in accordance with Section 10 below). In either case, Executive will be required to reimburse SHO for any portion of the Salary Continuation Amount already paid to Executive. 

ii. Continuation of Benefits. 

1. During the Salary Continuation Period and subject to the next sentence, Executive will be entitled to participate in all benefit plans and
programs (except as specified in this Section 1(a)(ii)) in which Executive was eligible to participate immediately prior to the Date of Termination (subject to the terms and conditions in effect from time to time and the continued availability
and applicability of such plans and programs to former employees who are not active employees of SHO). Executive will not be eligible to participate in the long-term disability plan, health care flexible spending account (except on an after-tax
basis and only through the earlier of the end of Salary Continuation Period or the calendar year in which the Separation from Service occurs), SHO-paid life insurance, any 40l(k) savings plan maintained by SHO (or any other defined contribution plan
sponsored by SHO), or any other plan or benefit that by its terms or in accordance with law is not applicable to former employees who are not active employees of SHO. SHO’s current medical, dental, and vision plans provide COBRA-only coverage
for former employees who are not active employees of SHO. If at the Date of Termination COBRA coverage is the only coverage available under SHO’s then-current medical and dental plans, Executive and Executive’s eligible dependents will be
eligible during the Salary Continuation Period for COBRA coverage under the then-current plans, with Executive’s percentage share of the cost of COBRA premiums to be the same as the percentage share that Executive paid for medical, dental, and
vision plan coverage immediately prior to the Date of Termination. 
 2. If Executive does not timely execute and submit the General Release
and Waiver (in accordance with Section 4(g) herein) by the deadline specified therein, Executive will be required to reimburse SHO for the portion of the cost for the benefits referred to under Section 1(a)(ii)(l) immediately above paid by
SHO during the Salary Continuation Period, and Executive will 

 
instead be eligible for COBRA coverage under the SHO medical, dental, and vision plans as of the Date of Termination. Executive will be responsible for the full cost of COBRA premiums if this
Section 1(a)(ii)(2) is applicable. 
 3. Subject to Section 1(a)(ii)(4) immediately below, if Executive provides services to
another employer and is covered by such employer’s health benefits plan or program, the medical and dental benefits provided by SHO hereunder will be secondary to such employer’s health benefits plan or program in accordance with the terms
of the SHO health benefit plans. 
 4. All of the benefits described in this Section 1(a)(ii) will terminate, and any entitlements to
future such payments will be forfeited, if Executive is employed by a SHO Competitor or a SHO Vendor during the Salary Continuation Period (which for purposes of this Section 1(a)(ii)(4) will not exceed twelve (12) months) or in the event
of Executive’s breach of this Agreement (in accordance with Section 10 below). In either case, Executive will be required to reimburse SHO for any portion of the cost for the benefits referred to under Section 1(a)(ii)(1) immediately
above paid by SHO during the Salary Continuation Period, and Executive will instead be eligible for COBRA continuation coverage under the SHO medical, dental, and vision plans as of Executive’s Severance from Service date. Executive will be
responsible for the full cost of COBRA premiums if this Section 1(a)(ii)(4) is applicable. 
 iii. Other. In addition to the
foregoing Severance Benefits, a lump sum payment will be made to Executive not later than Executive’s next regular salary payroll date following the Date of Termination in an amount equal to the sum of any base salary and any vacation benefits
that have accrued through the Date of Termination but only to the extent not already paid. No vacation will accrue during the Salary Continuation Period. No payment will be made with respect to unused “personal” days. Notwithstanding the
foregoing and anything herein to the contrary, in the event of Executive’s death during the Salary Continuation Period, any unpaid portion of the Salary Continuation Amount payable in accordance with Section 1(a)(i) above will be paid in a
lump sum, within sixty (60) days of death (and no later than amounts would have been paid absent death), to Executive’s estate, and any eligible dependents who are covered dependents as of the date of death will experience a qualifying
event under COBRA as a result of such death. 
 iv. Impact of Termination on Certain Other Plans/Programs. 

1. Annual Incentive Plan. Upon the Date of Termination, Executive’s entitlement to any award under SHO’s Annual Incentive
Plan (the “AIP”) or other applicable annual incentive plan sponsored by SHO will be determined in accordance with the terms and conditions of the AIP or other plan document regarding termination of employment. 

2. Long-Term Incentive Program. Upon the Date of Termination, Executive’s entitlement to any award granted to Executive under
SHO’s Long-Term Incentive Program (the “LTIP) or other applicable long-term incentive program sponsored by SHO will be determined in accordance with the terms and conditions of the applicable award letter and the LTIP or other plan
document regarding termination of employment. 
 3. Stock Plan. Upon the Date of Termination, Executive’s entitlement to any
unvested options, restricted stock, or other award granted to Executive under SHO’s 2012 Amended and Restated Stock Plan or other stock plan sponsored by SHO will be determined in accordance with the terms and conditions of the applicable award
agreement and the stock plan document regarding termination of employment. 

 v. Post-Termination Forfeiture of Severance Benefits. If SHO determines after the Date of
Termination that Executive engaged in activity during employment with SHO that SHO determines constituted Cause, Executive will immediately cease to be eligible for Severance Benefits and will be required to reimburse SHO for any portion of
Severance Benefits received by Executive during the Salary Continuation Period. 
 2. Definitions. For purposes of this Agreement, each capitalized
term herein is either defined in the section, exhibit, or Appendix in which it first appears or in this Section 2. The following capitalized terms will have the definitions as set forth below: 

a. “Cause” means (i) a material breach by Executive (other than a breach resulting from Executive’s
incapacity due to a Disability) of Executive’s duties and responsibilities to SHO, including under the Offer Letter, which breach is demonstrably willful and deliberate on Executive’s part, is committed in bad faith or without reasonable
belief that such breach is in the best interests of SHO, and is not remedied in a reasonable period of time after receipt of written notice from SHO specifying such breach; (ii) Executive’s conviction of a felony involving moral turpitude;
or (iii) Executive’s dishonesty or willful misconduct in connection with Executive’s employment. 
 b.
“Disability” means disability as defined under the SHO long-term disability plan in effect as of the date of execution of this Agreement (regardless of whether Executive is a participant under such plan). 

c. “Good Reason” means, without Executive’s written consent, (i) a reduction of more than ten percent
(10%) in the sum of Executive’s annual base salary and target annual incentive under the AIP from those in effect as of the date of this Agreement; (ii) Executive’s mandatory relocation to an office more than fifty
(50) miles from the primary location at which Executive is required to perform Executive’s duties immediately prior to the date of this Agreement; or (iii) any other action or inaction that constitutes a material breach of the terms
of Executive’s employment with SHO, including under the Offer Letter, by SHO or its successor, including failure of a successor company to assume or fulfill the obligations under this Agreement. In each case, Executive must provide SHO with
written notice of the facts giving rise to a claim that Good Reason exists for purposes of this Agreement within thirty (30) days of the initial existence of such Good Reason event, and SHO will have a right to remedy such event within sixty
(60) days after receipt of Executive’s written notice (the “Sixty (60)-Day Period”). If SHO remedies the Good Reason event within the Sixty (60)-Day Period, the Good Reason event (and Executive’s right to receive any
benefit under this Agreement on account of termination of employment for Good Reason) will cease to exist. If SHO does not remedy the Good Reason event within the Sixty (60)-Day Period, and Executive does not incur a termination of employment within
thirty (30) days following the earlier of: (y) the date SHO notifies Executive that it does not intend to remedy the Good Reason or does not agree that there has been a Good Reason event, or (z) the date on which the Sixty (60)-Day
Period expires, the Good Reason event (or any claim of Good Reason) will cease to exist. Notwithstanding the foregoing, if Executive fails to provide written notice to SHO of the facts giving rise to a claim of Good Reason within thirty
(30) days of the initial existence of such Good Reason event, the Good Reason event (and Executive’s right to receive any benefit under this Agreement on account of termination of employment for Good Reason) will cease to exist as of the
thirty-first (31st) day following the later of its occurrence or Executive’s knowledge thereof. If Executive terminates Executive’s employment under clause (i) of this definition, Executive’s annual base salary rate for
purposes of Section 1 hereof will be Executive’s annual base salary rate in effect prior to the reduction that triggered the applicability of such Good Reason event. 

d. “SHO Affiliate” means any person with whom SHO is considered to be a single employer under Section 414
(b) of the Internal Revenue Code (the “Code”) and all persons with whom SHO would be considered a single employer under Code Section 414 (c), substituting “50%” for the “80%” standard that would
otherwise apply. 

 e. “Section 409A Threshold” means an amount equal to two (2) times
the lesser of (i) Executive’s base salary for services provided to SHO as an employee for the calendar year preceding the calendar year in which Executive has a Separation from Service; or (ii) the maximum amount that may be taken
into account under a qualified plan in accordance with Code Section 40l (a)(17) for the calendar year in which Executive has a Separation from Service. In all events, this amount will be limited to the amount specified under Treasury Regulation
Section 1.409A-1(b)(9)(iii)(A) or any successor thereto. 
 f. “Separation from Service” means a
“Separation from Service” from SHO within the meaning of Code Section 409A (and regulations issued thereunder). Notwithstanding anything herein to the contrary, the fact that Executive is treated as having incurred a Separation from
Service under Code Section 409A and the terms of this Agreement will not be determinative, or in any way affect the analysis, of whether Executive has retired, terminated employment, separated from service, incurred a severance from employment
or become entitled to a distribution, under the terms of any retirement plan (including pension plans and 401(k) savings plans) maintained by SHO. 

g. “Specified Employee” has the meaning set forth under Code Section 409A (and regulations issued thereunder).

 3. Intellectual Property Rights. Executive acknowledges that Executive’s development work or research on any and all inventions or expressions
of ideas that may or may not be eligible for patent, copyright, trademark or trade secret protection, hereafter made or conceived solely or jointly within the scope of employment at SHO, provided such invention or expression of an idea relates to
the business of SHO, or relates to actual or demonstrably anticipated research or development of SHO, or results from any work performed by Executive for or on behalf of SHO, are hereby assigned to SHO, including Executive’s entire rights,
title and interest. Executive will promptly disclose such invention or expression of an idea to Executive’s management and will, upon request, promptly execute a specific written assignment of title to SHO. If Executive currently holds any
inventions or expressions of an idea, regardless of whether they were published or filed with the U.S. Patent and Trademark Office or the U.S. Copyright Office, or is under contract to not so assign, Executive will list them on the last page of this
Agreement. 
 4. Protective Covenants. Executive acknowledges that this Agreement provides for additional consideration beyond what SHO is otherwise
obligated to pay to Executive. In consideration of the opportunity to receive the Severance Benefits, and other good and valuable consideration, Executive agrees to the following: 

a. Non-Disclosure of SHO Confidential Information. Executive acknowledges and agrees to be bound by the following, whether or not
Executive receives any Severance Benefits under this Agreement: 
 i. Non-Disclosure. Subject to Section 11, Executive will not,
during the term of Executive’s employment with SHO or thereafter, other than in the performance of Executive’s duties and obligations to SHO, including under the Offer Letter, during Executive’s employment with SHO, as required by law
or legal process, or as SHO may otherwise consent to or direct in writing, reveal, disclose, sell, use, lecture upon or publish any SHO Confidential Information (as defined in Section 4(a)(iii) below) until such time as the information becomes
publicly known other than as a result of its disclosure, directly or indirectly, by Executive. 

 ii. Proprietary Information. Subject to Section 11, Executive understands that if
Executive possesses any proprietary information of another person or company as a result of prior employment or otherwise, SHO expects and requires that Executive will honor any and all legal obligations that Executive has to that person or company
with respect to proprietary information, and Executive will refrain from any unauthorized use or disclosure of such information. 
 iii.
SHO Confidential Information. For purposes of this Agreement, “SHO Confidential Information” means trade secrets and non-public information which SHO designates as being confidential or which, under the circumstances, should
be treated as confidential, including any information received in confidence from or developed by SHO, its long and short term goals, vendor and supply agreements, databases, methods, programs, techniques, business information, financial
information, marketing and business plans, proprietary software, personnel information and files, client information, pricing, and other information relating to the business of SHO that is not known generally to the public or in the industry. 

iv. Return of SHO Property. All documents and other property that relate to the business of SHO are the exclusive property of SHO, even
if Executive authored or created them. Executive agrees to return all such documents and tangible property to SHO upon termination of employment or at such earlier time as SHO may request that Executive do so. 

v. Conflict of Interest. During Executive’s employment with SHO and during any Salary Continuation Period (which for purposes of
this Section 4(a)(v) will not exceed twelve (12) months), except as may be approved in writing by SHO, neither Executive nor members of Executive’s immediate family (which will refer to Executive, any spouse, and any child) will have
financial investments or other interests or relationships with SHO or any customers, suppliers or competitors which might impair Executive’s independence of judgment on behalf of SHO. Also during Executive’s employment with SHO during any
Salary Continuation Period, Executive agrees not to engage in any activity in competition with SHO and to avoid any outside activity that could adversely affect the independence and objectivity of Executive’s judgment, interfere with the timely
and effective performance of Executive’s duties and responsibilities to SHO, or that could otherwise conflict with the best interests of SHO. 

b. Non-Solicitation of Employees. During Executive’s employment with SHO and for twelve (12) months following the Date of
Termination, whether or not Executive receives any Severance Benefits under this Agreement, Executive will not, directly or indirectly, solicit or encourage any SHO employee to leave the employee’s employment with SHO, or assist in any way with
the hiring of any SHO employee by any future employer or other entity. 
 c. Non-Competition. Executive acknowledges that as a result
of Executive’s position at SHO, Executive has learned or developed, or will learn or develop, SHO Confidential Information and that use or disclosure of SHO Confidential Information is likely to occur if Executive were to render advice or
services to any SHO Competitor. 
 i. Therefore, for twelve (12) months following the Date of Termination, whether or not Executive
receives any Severance Benefits under this Agreement, Executive will not, directly or indirectly, aid, assist, participate in, consult with, render services to, accept a position with, become employed by, or otherwise enter into any relationship
with (other than having a passive ownership interest in or being a customer of) any SHO Competitor. 

 ii. For purposes of this Agreement, “SHO Competitor” means those companies
listed on Appendix A, each of which Executive acknowledges is a SHO Competitor. 
 d. Restriction on Post-Employment Affiliation
with SHO Vendors. Executive acknowledges that as a result of Executive’s position at SHO, Executive has learned or developed, or will learn or develop, SHO Confidential Information and that use or disclosure of SHO Confidential Information
is likely to occur if Executive were to render advice or services to any SHO Vendor (as defined herein). 
 i. Therefore, for twelve
(12) months from the Date of Termination, whether or not Executive receives any Severance Benefits under this Agreement, Executive will not, directly or indirectly, aid, assist, participate in, consult with, render services to, accept a
position with, become employed by, or otherwise enter into any relationship with (other than having a passive ownership interest in or being a customer of) any SHO Vendor. 

ii. For purposes of this Agreement, “SHO Vendor” means, the vendors, if any, listed in Appendix A as well as any other vendor
with combined annual gross sales of services or merchandise to SHO in excess of $200 million. 
 e. Compliance with Protective
Covenants. Executive will provide SHO with such information as SHO may from time to time reasonably request to determine Executive’s compliance with this Section 4. Executive authorizes SHO to contact Executive’s future employers
and other entities with which Executive has any business relationship to determine Executive’s compliance with this Agreement or to communicate the contents of this Agreement to such employers and entities. Executive releases SHO, their agents
and employees, from all liability for any damage arising from any such contacts or communications. 
 f. Necessity and Reasonableness.
Executive agrees that the restrictions set forth herein are necessary to prevent the use and disclosure of SHO Confidential Information and to otherwise protect the legitimate business interests of SHO. Executive further agrees and acknowledges that
the provisions of this Agreement are reasonable. 
 g. General Release and Waiver. In connection with Executive’s termination of
employment with SHO (whether initiated by SHO or Executive in accordance with Section (1)(a) above), Executive will execute a binding general release and waiver of claims in a form to be provided by SHO (the “General Release and
Waiver”), which is incorporated by reference in this Agreement. The General Release and Waiver will be in a form substantially similar to the form attached as Appendix B to this Agreement. If the General Release and Waiver is not
signed within the time articulated therein, or is signed but subsequently revoked, Executive will cease to be entitled to receive Severance Benefits and will be obligated to reimburse SHO for the portion, if any, of the Severance Benefits already
paid to Executive by SHO in its sole discretion prior to the expiration of the Revocation Period. 
 h. Exception Request.
Notwithstanding the foregoing, Executive may request a waiver or a specific exception to the non-competition provisions of this Agreement by written request to the Vice President of Human Resources or Vice President, General Counsel (or the
equivalent) of SHO. Such a request will be given reasonable consideration and may be granted, in whole or in part, or denied by SHO in its absolute discretion. 

5. Irreparable Harm. Executive acknowledges that irreparable harm would result from any breach by Executive of the provisions of this Agreement,
including Sections 4(a), 4(b), 4(c) and 4(d), and that monetary damages alone would not provide adequate relief for any 

 
such breach. Accordingly, if Executive breaches or threatens to breach this Agreement, Executive consents to injunctive relief in favor of SHO without the necessity of SHO posting a bond.
Moreover, any award of injunctive relief will not preclude SHO from seeking or recovering any lawful compensatory damages on account of any harm which result from a breach of this Agreement, including a forfeiture of any future payments otherwise
due hereunder, and a return of any payments and benefits already received by Executive under this Agreement. 
 6. Non-Disparagement. Subject to
Section 11, Executive will not take any actions that would reasonably be expected to be detrimental to the interests of SHO nor make derogatory statements, either written or oral to any third party, or otherwise publicly disparage SHO or its
products, services, or present or former employees, officers or directors, and will not authorize others to make such derogatory or disparaging statements on Executive’s behalf. This provision does not, and is not intended to, preclude
Executive from entering into any relationship with a SHO Competitor or SHO Vendor if such relationship is permissible under Section 4(c) or 4(d) and does not, and is not intended to, preclude Executive from providing truthful testimony in
response to legal process or governmental inquiry. 
 7. Cooperation. Executive agrees, without receiving additional compensation, to fully and
completely cooperate with SHO both during and after the period of employment with SHO (including any Salary Continuation Period), with respect to matters that relate to such period of employment, in all investigations, potential litigation or
litigation in which SHO is involved or may become involved other than any such investigations, potential litigation or litigation between SHO and Executive. SHO will reimburse Executive for reasonable travel and out-of-pocket expenses incurred in
connection with any such investigations, potential litigation or litigation, except in the case of litigation between SHO and Executive. 
 8. Future
Enforcement or Remedy. Any waiver, or failure to seek enforcement or remedy for any breach or suspected breach of any provision of this Agreement by SHO or Executive in any instance will not be deemed a waiver of such provision in the future.

 9. Acting as Witness. Subject to Section 11, Executive agrees that both during and after the period of employment with SHO (including any
Salary Continuation Period), Executive will not voluntarily act as a witness, consultant or expert for any person or party in any action against or involving SHO unless subject to judicial enforcement to appear as a fact witness only. 

10. Breach by Executive. In the event of a breach by Executive of any of the provisions of this Agreement, including the non-competition provisions
(Section 4) and the non-disparagement provision (Section 6) of this Agreement, the obligation of SHO to pay Salary Continuation Amount or to provide other Severance Benefits under this Agreement will immediately cease and any Salary Continuation
Amount payments already received and the value of any other Severance Benefits already received will be returned by Executive to SHO. Further, Executive agrees that SHO will be entitled to recovery of its attorneys’ fees and other associated
costs incurred as a result of any attempt to redress a breach by Executive or to enforce its rights and protect its interests under this Agreement. 
 11.
No Prohibition. Subject to the next sentence, nothing in this Agreement will be construed to prohibit Executive from filing a charge with, reporting possible violations to, or participating or cooperating with any governmental agency or
entity, including the Equal Employment Opportunity Commission, the Department of Justice, the Securities and Exchange Commission, Congress, or any agency Inspector General, or making other disclosures that are protected under the whistleblower,
anti-discrimination, or anti-retaliation provisions of federal, state, or local law or regulation. Executive may not disclose SHO Confidential Information that is protected by the attorney-client privilege except as expressly authorized by law.
Executive does not need the prior authorization of SHO to make any such reports or disclosures, and Executive is not required to notify SHO that Executive has made such reports or disclosures. 

 12. Severability. If any provision or provisions of this Agreement is found invalid, illegal, or
unenforceable, in whole or in part, then such provision or provisions will be modified or restricted so as to effectuate as nearly as possible in a valid and enforceable way the provisions hereof, or will be deemed excised from this Agreement, as
the case may require, and this Agreement will be construed and enforced to the maximum extent permitted by law, as if such provision or provisions had been originally incorporated herein as so modified or restricted or as if such provision or
provisions had not been originally incorporated herein, as the case may be. 
 13. Employment-at-Will. This Agreement does not constitute a contract
of employment, and Executive acknowledges that Executive’s employment with SHO is terminable “at-will” by either party at any time with or without cause and with or without notice. 

14. Other Plans, Programs, Policies and Practices. If any provision of this Agreement conflicts with any other plan, programs, policy, practice or other
SHO document, then the provisions of this Agreement will control, except as otherwise precluded by law. Executive will not be eligible for any benefits under any transition or severance plan or program maintained by SHO. 

15. Entire Agreement. This Agreement, including the appendices hereto, contains and comprises the entire understanding and agreement between Executive
and SHO (except for the Offer Letter) and fully supersedes any and all other prior agreements or understandings between Executive and SHO (except for the Offer Letter), in each case with respect to the subject matter contained herein, and may be
amended only by a writing signed by (a) one of the Vice President of Human Resources or the Vice President, General Counsel, and Secretary (or equivalent) of SHO and (b) Executive. 

16. Tax Withholding. Any compensation paid or provided to Executive under this Agreement will be subject to any applicable federal, state or local
income and employment tax withholding requirements. 
 17. Notices. All notices and other communications hereunder will be in writing and will be
given by hand delivery to the other parties or by registered or certified mail, return receipt requested, postage prepaid, addressed as follows: 

If to Executive: At the most recent address on file at SHO. 

If to SHO: 5500 Trillium Blvd, Hoffman Estates, Illinois 60192, Attention to both: VP, Human Resources and VP, General Counsel. 

18. Assignment. SHO may assign its rights under this Agreement to any successor in interest, whether by merger, consolidation, sale of assets, or
otherwise. This Agreement will be binding whether it is between SHO and Executive or between any successor or assignee of SHO and Executive. 
 19.
Section 409A Compliance. To the extent that a payment or benefit under this Agreement is subject to Code Section 409A, it is intended that this Agreement as applied to that payment or benefit comply with the requirements of Code
Section 409A, and the Agreement will be administered and interpreted consistent with this intent. If the Sixty (60)-Day Period following a Separation from Service begins in one calendar year and ends in a second calendar year (a
“Crossover 60-Day Period”) and if there are any payments due Executive under this Agreement that are: (i) conditioned on Executive signing and not revoking a release of claims and (ii) otherwise due to be paid during the
portion of the Crossover 60-Day Period that falls within the first year thereof, then such 

 
payments will be delayed and paid in a lump sum during the portion of the Crossover 60-Day Period that falls within the second year. Executive’s right to receive installment payments
pursuant to this Agreement will be treated as a right to receive a series of separate and distinct payments. 
 20. Construction and Interpretation.
In this Agreement (1) “includes” and “including” are inclusive and mean, respectively, “includes without limitation” and “including without limitation,” (2) “or” is
disjunctive but not necessarily exclusive, (3) “will” expresses an imperative, an obligation, and a requirement, (4) numbered “Section” references refer to sections of this Agreement unless otherwise
specified, (5) section headings are for convenience only and will have no interpretive value, and (6) unless otherwise indicated all references to a number of days will mean calendar (and not business) days and all references to
months or years will mean calendar months or years. 
 21. Counterparts. This Agreement may be executed in one or more counterparts, which together
will constitute a valid and binding agreement. 
 22. Right to Jury. Executive agrees to waive any right to a jury trial on any claim contending that
this Agreement or the General Release and Waiver is illegal or unenforceable in whole or in part, and Executive agrees to try any claims brought in a court or tribunal without use of a jury or advisory jury. Further, should any claim arising out of
Executive’s employment, termination of employment or Salary Continuation Period (if any) be found by a court or tribunal of competent jurisdiction to not be released by the General Release and Waiver, Executive agrees to try such claim to the
court or tribunal without use of a jury or advisory jury. 
 23. Governing Law. This Agreement will be governed under the internal laws of the state
of Illinois without regard to principles of conflicts of laws. Executive agrees that the state and federal courts located in the state of Illinois will have exclusive jurisdiction in any action, lawsuit or proceeding based on or arising out of this
Agreement, and Executive hereby (a) submits to the personal jurisdiction of such courts, (b) consents to the service of process in connection with any action, suit, or proceeding against Executive, and (c) waives any other requirement
(whether imposed by statute, rule of court, or otherwise) with respect to personal jurisdiction, venue or service of process. 

 

			
	EXECUTIVE	 	
		
	/s/ E. J. BIRD	 	
	E. J. Bird	 	
		 	

 

					
	 SEARS HOMETOWN AND OUTLET

STORES, INC.

		
	By:	 	/s/ PHILIP ETTER
	Philip Etter
	Vice President, Human Resources

 
 

 Appendix A to Executive Severance Agreement 

SHO Competitors 
 The following companies (including
affiliates and subsidiaries within the same controlled group of corporations) are included within the definition of SHO Competitors as referred to under Section 4(c)(ii)(l) of the Executive Severance Agreement between SHO and Executive: 

Ace Hardware 
 Lowe’s Home Improvement 

The Home Depot 
 Menard 

Whirlpool 
 ServiceMaster 

Rent-A-Center, Inc. 
 Aaron’s, Inc. 

ABT 
 Amazon 

Conn’s, Inc. 
 Best Buy 

Sears Holdings Corporation 
 Tractor Supply Co. 

True Value Company 
 Wal-Mart 

Target 
 Caterpillar 

John Deere 
 SHO Vendors 

The following companies (including affiliates and subsidiaries within the same controlled group of corporations) are included within the definition of SHO
Vendors as referred to under Section 4(d) of the Executive Severance Agreement between SHO and Executive: 
 Sears Holdings Corporation 

Bosch 
 Electrolux 

General Electric 
 LG 

Samsung 
 Whirlpool 

MTD 
 Techtronic Industries Company Limited 

Husqvarna 

 Appendix B to Executive Severance Agreement 

GENERAL RELEASE AND WAIVER 

NOTICE 
 YOU MAY CONSIDER THIS GENERAL RELEASE
AND WAIVER FOR UP TO TWENTY ONE (21) DAYS. IF YOU DECIDE TO SIGN IT, YOU MAY REVOKE THIS GENERAL RELEASE AND WAIVER WITHIN SEVEN (7) DAYS AFTER SIGNING IT (THE “REVOCATION PERIOD”). ANY REVOCATION WITHIN THE REVOCATION PERIOD
MUST BE IMMEDIATELY SUBMITTED, IN WRITING, TO PHILIP ETTER, HUMAN RESOURCES, SEARS HOMETOWN AND OUTLETS STORES, INC., 5500 TRILLIUM BOULEVARD, SUITE 501, HOFFMAN ESTATES, IL 60192, AND STATE THAT, “I HEREBY REVOKE MY ACCEPTANCE OF THE GENERAL
RELEASE AND WAIVER.” THE EXECUTIVE SEVERANCE AGREEMENT AND GENERAL RELEASE AND WAIVER SHALL NOT BECOME EFFECTIVE OR ENFORCEABLE UNTIL THE REVOCATION PERIOD HAS EXPIRED. YOU SHOULD CONSIDER CONSULTING WITH AN ATTORNEY BEFORE SIGNING THIS GENERAL
RELEASE AND WAIVER. 
 I, E. J. Bird, acknowledge that there are various state, local, and federal laws that prohibit, among other things, employment
discrimination on the basis of age, gender, race, color, national origin, religion, disability, sexual orientation or veteran status and that these laws are enforced through the Equal Employment Opportunity Commission, Department of Labor and state
or local human rights agencies. Such laws include, without limitation, the following: Title VII of the Civil Rights Act of 1964; the Americans with Disabilities Act; the Age Discrimination in Employment Act; the Older Workers Benefit Protection Act;
the Employee Retirement Income Security Act; 42 U.S.C. Section 1981; and all applicable state and local human and civil rights laws as well as other statutes or laws which regulate employment; and the common law of contracts and torts. I hereby
waive and release all rights I may have under these or any other laws with respect to my employment and termination of employment and acknowledge that none of the SHO Parties (as defined below) has (a) discriminated against me,
(b) breached any contract with me, (c) committed any civil wrong (tort) against me, or (d) otherwise acted unlawfully against me. 
 I also
waive any right to become, and promise not to consent to become, a member of any class or collective in any case in which claims are asserted against any or all of the SHO Parties that are related in any way to my employment or the termination of my
employment with Sears Hometown and Outlet Stores Inc., Sears Holdings Corporation, or any subsidiary of either of them, and that involve claims which have accrued as of the date I sign this General Release and Waiver. If I, with or without my
knowledge, become a member of a class in any proceeding, I will opt out of the class at the first opportunity afforded to me to do so. In this regard, I agree that I will execute, without objection or delay, an “opt-out” form presented to
me either by the court in which such proceeding is pending or by counsel for any or all of the SHO Parties. 

 In consideration of the benefits I will receive that are described in the attached Executive Severance Agreement,
I, E. J. Bird, for myself, my heirs, administrators, representatives, executors, successors and assigns, do hereby release, waive, and forever discharge Sears Hometown and Outlet Stores, Inc., Sears Holdings Corporation, and the current and
former agents, parents, subsidiaries, affiliates, related organizations, employees, officers, directors, shareholders, attorneys, successors, and assigns of each of Sears Hometown and Outlet Stores, Inc. and Sears Holdings Corporation (collectively,
the “SHO Parties”) from any and all liability, actions, charges, causes of action, demands, damages, or claims for relief or remuneration, sums of money, accounts, or expenses (including attorneys’ fees and costs) of any
kind whatsoever, whether known or unknown at this time, arising out of, or connected with, my employment with Sears Hometown and Outlet Stores Inc., Sears Holdings Corporation, or any subsidiary of either of them and the termination of my
employment. The foregoing release, discharge, and waiver includes, but is not limited to, all claims and any obligations or causes of action arising from such claims, including but not limited to, all matters in law, in equity, in contract (oral or
written, express or implied), in tort, or pursuant to statute, including claims under any federal, state or local statute or state or federal constitution, including, but not limited to, Title VII of the Civil Rights Act of 1964, the Civil Rights
Act of 1866 and 1871 (42 U.S.C. § 1981), the Civil Rights Act of 1991, the Age Discrimination in Employment Act, the Fair Labor Standards Act, the Employee Retirement Income Security Act, the Americans with Disabilities Act, the
Rehabilitation Act of 1973, the Worker Adjustment and Retraining Notification Act, the Family and Medical Leave Act, the National Labor Relations Act, the Equal Pay Act, and all other discrimination and employment laws of Illinois and of all
other states and municipalities, to the fullest extent permitted under the law. This General Release and Waiver does not apply to any claims or rights that may arise from events occurring after the date of this General Release and Waiver. Also
excluded from this General Release and Waiver are any claims which cannot be waived by law, including my right to file a charge with or participate in an investigation conducted by the Equal Employment Opportunity Commission, and my rights specified
in paragraph 11 of the Executive Severance Agreement. I do, however, waive all rights (other than my rights specified in paragraph 11 of the Executive Severance Agreement) to any monetary or other relief of any kind flowing out of any agency or
third-party claims or charges, including any charge I might file with any state, local or federal agency. Subject to my rights specified in paragraph 11 of the Executive Severance Agreement, I warrant and represent that I have not filed any
complaint, charge, or lawsuit against the SHO Parties or any of them with any governmental agency or with any court. 
 I have read this General Release and
Waiver and understand all of its terms. 
 I have signed this General Release and Waiver voluntarily with full knowledge of its legal significance and
consequences. 
 I have had the opportunity to seek, and I have been advised in writing of my right to seek, legal counsel prior to signing this General
Release and Waiver. 
 I was given at least twenty-one (21) days to consider signing this General Release and Waiver. Any non-material modification of
this General Release and Waiver Agreement does not restart the twenty-one (21) day consideration period. 

 I understand that if I sign this General Release and Waiver, I can change my mind and revoke it within seven
(7) days after signing. I understand this General Release and Waiver will not be effective until after the seven (7) day revocation period has expired. 

I understand that the delivery of the benefits I will receive that are described in the attached Executive Severance Agreement does not constitute an
admission of liability by the SHO Parties or any of them and that each of the SHO Parties expressly denies any wrongdoing or liability. 

THIS IS A RELEASE. READ BEFORE SIGNING. 

Signed by:
                                         
                                        

E. J. Bird 
 Date:
                        ,Exhibit 10.1

 

SECOND AMENDED AND RESTATED ADVISORY
AGREEMENT

 

THIS SECOND AMENDED AND RESTATED ADVISORY
AGREEMENT, dated as of August 11, 2017, is between and among RW HOLDINGS NNN REIT, INC., a real estate investment trust
organized under the laws of the State of Maryland (the “Company”) RICH UNCLES NNN REIT OPERATOR, LLC (the “Advisor”)
and RICH UNCLES, LLC (the “Sponsor”).

 

WITNESSETH

 

WHEREAS, the Company currently qualifies
as a REIT (as defined below), and invests its funds in investments permitted by the terms of the Prospectus, the Offering Memorandum,
the Articles of Incorporation and the Bylaws of the Company and Sections 856 through 860 of the Code (as defined below);

 

WHEREAS, the Company desires to avail itself
of the experience, knowledge, sources of information, advice, assistance and contacts available to the Advisor and to have the
Advisor undertake the duties and responsibilities hereinafter set forth, on behalf of, and subject to the supervision, of the Board
of Directors of the Company all as provided herein;

 

WHEREAS, the Advisor is willing to undertake
to render such services, subject to the supervision of the Board of Directors, on the terms and conditions hereinafter set forth;
and

 

WHEREAS, the Company and the Advisor have
previously entered into that certain Amended and Restated Advisory Agreement, dated as of January 17, 2017 (the “Prior Agreement”)
and desire to amend and restate the Prior Agreement and to accept the rights and obligations created pursuant hereto in lieu of
the rights and obligations created under the Prior Agreement;

 

NOW, THEREFORE, in consideration of the
foregoing and of the mutual covenants and agreements contained herein, the parties hereto agree as follows:

 

1. Definitions. As used in this Advisory
Agreement (this “Agreement”), the following terms have the definitions hereinafter indicated:

 

Acquisition Expenses. Any and all
expenses incurred by the Company, the Advisor, or any Affiliate of either in connection with the selection, acquisition or making
of any investment, including any Property or other Permitted Investment, whether or not acquired, including, without limitation,
legal fees and expenses, travel and communication expenses, costs of appraisals, nonrefundable option payments on property not
acquired or made, accounting fees and expenses, and title insurance.

 

Acquisition Fees. Any and all fees
and commissions, exclusive of Acquisition Expenses, paid by any Person or entity to any other Person or entity (including any fees
or commissions paid by or to any Affiliate of the Company or the Advisor) in connection with making an investment including making
or investing in Properties or the purchase, development or construction of a Property, including, without limitation, real estate
commissions, acquisition fees, finder’s fees, selection fees, consulting fees, points, or any other fees or commissions of
a similar nature. Excluded shall be development fees and construction fees paid to any Person or entity not Affiliated with the
Advisor in connection with the actual development and construction of any Property. Further, Acquisition Fees will not be paid
in connection with temporary short-term investments acquired for purposes of cash management.

 

     

     

    

 

Advisor. Rich Uncles NNN REIT Operator,
LLC, a Delaware limited liability company, any successor Advisor to the Company, or any Person or entity to which Rich Uncles NNN
REIT Operator, LLC, or any successor advisor subcontracts substantially all of its functions. The Advisor will have responsibility
for the day-to-day operations of the Company.

 

Affiliate or Affiliated (or any derivation
thereof). An affiliate of another Person, which is defined as: (i) any Person directly or indirectly owning, controlling, or
holding, with power to vote 10% or more of the outstanding voting securities of such other Person; (ii) any Person 10% or more
of whose outstanding voting securities are directly or indirectly owned, controlled or held, with power to vote, by such other
Person; (iii) any Person directly or indirectly controlling, controlled by, or under common control with such other Person; (iv)
any executive officer, director, trustee or general partner of such other Person; and (v) any legal entity for which such Person
acts as an executive officer, director, trustee or general partner.

 

Applicable Class. The Class C Shares
and the Class S Shares, each as a separate class of common stock of the Company.

 

Articles of Incorporation. The Articles
of Incorporation of the Company as filed with the Secretary of State of Maryland, as amended and/or restated from time to time.

 

Asset Management Fee. The fee payable
to the Advisor for day-to-day professional management services in connection with the Company and its investments in Properties
pursuant to this Agreement.

 

Assets. The Company’s investments
in Properties plus cash and cash equivalents.

 

Board of Directors or Board. The
Board of Directors of the Company.

 

Bylaws. The bylaws of the Company,
as the same are in effect and may be amended from time to time.

 

Cause. With respect to the termination
of this Agreement, fraud, criminal conduct, willful misconduct or willful or grossly negligent breach of fiduciary duty by the
Advisor, breach of this Agreement, or the bankruptcy of the Sponsor.

 

Class C Shares. The up to 100,000,000
Class C Shares of common stock of the Company offered for sale pursuant to the Prospectus.

 

Class S Shares. The up to 100,000,000
Class S Shares of common stock of the Company offered for sale pursuant to the Offering Memorandum.

 

Code. Internal Revenue Code of 1986,
as amended from time to time, or any successor statute thereto. Reference to any provision of the Code shall mean such provision
as in effect from time to time, as the same may be amended, and any successor provision thereto, as interpreted by any applicable
regulations as in effect from time to time.

 

    2 

     

    

 

Company. Rich Uncles NNN REIT, Inc.,
a real estate investment trust organized under the laws of the State of Maryland.

 

Competitive Real Estate Commission.
A real estate or brokerage commission for the purchase or sale of property, which is reasonable, customary, and competitive in
light of the size, type, and location of the property.

 

Contract Purchase Price. The amount
actually paid or allocated (as of the date of purchase) to the purchase, development, construction or improvement of property,
exclusive of Acquisition Fees and Acquisition Expenses.

 

Contract Sales Price. The total consideration
received by the Company for the sale of Property which is owned or held by the Company.

 

Director. A member of the Board of
Directors of the Company.

 

Distributions. Any distribution of
money or other property by the Company to owners of Securities, including distributions that may constitute a return of capital
for federal income tax purposes.

 

Highest Prior NAV per Share. The
highest previous offering price for the Applicable Class of the Company’s shares, after adjustment to reflect all return
of capital distributions.

 

Independent Director. A Director
who is not and within the last two years has not been directly or indirectly associated with the Advisor by virtue of (i) ownership
of an interest in the Sponsor, the Advisor or any of their Affiliates, (ii) employment by the Sponsor, the Advisor or any of their
Affiliates, (iii) service as an officer or director of the Sponsor, the Advisor or any of their Affiliates, (iv) performance of
services, other than as a Director, for the Company, (v) service as a director or trustee of more than three real estate investment
trusts sponsored by the Sponsor or advised by the Advisor, or (vi) maintenance of a material business or professional relationship
with Sponsor or the Advisor or any of their Affiliates. A business or professional relationship is considered material if the gross
revenue derived by the Director from the Sponsor, the Advisor or any of their Affiliates exceeds 5% of either the Director’s
annual gross revenue during either of the last two years or the Director’s net worth on a fair market value basis. An indirect
relationship shall include circumstances in which a Director’s spouse, parents, children, siblings, mothers- or fathers-in-law,
sons- or daughters-in-law, or brothers- or sisters-in-law are or have been associated with the Sponsor, the Advisor, any of their
Affiliates, or the Company. When this Agreement refers to approval by the Independent Directors, such approval may be made by the
conflicts committee of the Company’s Board of Directors if such committee is comprised solely of all of the Independent Directors
on the Company’s Board of Directors.

 

Joint Ventures. The joint venture
or general partnership arrangements in which the Company is a co-venturer or general partner which are established to acquire Properties.

 

Large Investors. Investors in any
of the Offerings who have aggregate subscriptions or purchases for at least $1,000,000, excluding commissions, in the Offerings
and one or more other securities offerings sponsored by the Sponsor; provided, that a “Large Investor” may include,
in the sole discretion of the Company, clients of one or more financial advisors each of whose clients collectively meet this definition
of “Large Investor.”

 

    3 

     

    

 

Net Asset Value or NAV. The total
value of all Assets minus the total value of all liabilities. For the purposes of determining Net Asset Value, the Properties shall
be valued as of the date specified by the Board of Directors.

 

NAV Per Share. As of any date, the
NAV as established by our Board of Directors divided by the number of such class of Shares outstanding as of the date of such determination.

 

Offerings. The offering of Class
C Shares under the Prospectus and the offering of Class S Shares under the Offering Memorandum.

 

Offering Memorandum. Any document
by whatever name known, utilized for the purpose of offering and selling securities to investors who are non-U.S. persons under
Regulation S of the Securities Act of 1933, as amended.

 

Operating Partnership. Rich Uncles
NNN Operating Partnership, LP.

 

Organizational and Offering Expenses.
With respect to an Applicable Class, any and all costs and expenses incurred by the Company, the Advisor, the Sponsor or any of
their Affiliates in connection with the formation, qualification and registration of the Company and the marketing and distribution
of shares of such Applicable Class, including, without limitation, the following: legal, and accounting fees; printing, amending,
supplementing, mailing and distributing costs; filing, registration and qualification fees and taxes; telegraph and telephone costs;
all advertising and marketing expenses; and the total direct costs paid by the Advisor for persons employed by the Company who
respond to prospective investor inquiries. All such Organizational and Offering Expenses shall be paid for by the Sponsor subject
to the reimbursement provided by Section 10(a)(i) below, and such expenses shall include advertising, investor relations payroll
allocable to services provided in connection with the Offering, and any other expenses or costs incurred for marketing efforts
such as “open houses” and other Offering-related activities.

 

Person. An individual, corporation,
partnership, estate, trust (including a trust qualified under Section 401(a) or 501(c)(17) of the Code), a portion of a trust permanently
set aside for or to be used exclusively for the purposes described in Section 642(c) of the Code, association, private foundation
within the meaning of Section 509(a) of the Code, joint stock company or other entity, or any government or any agency or political
subdivision thereof.

 

Preferred Return. At any time, with
respect to the Class C Shares or the Class S Shares, as applicable, a 6.5.% cumulative, non-compounded return on Highest Prior
NAV per share for such Applicable Class.

 

Preliminary NAV. The Net Asset Value
of the Company calculated annually by the directors, including a majority of the Independent Directors, for the purpose of determining
whether the Advisor is entitled to receive a Subordinated Participation Fee for an annual period. The Preliminary NAV consists
of (i) the value of the Company’s real estate assets and liabilities reported by an independent valuation firm, as it may
be adjusted by the directors, (ii) plus all other assets held (iii) minus all accrued liabilities of the Company.

 

    4 

     

    

 

Property or Properties. Interests
in (i) the real properties, including the buildings and equipment located thereon: or (ii) the real properties only; or (iii) the
buildings only, including equipment located therein; any of which are acquired by the Company, either directly or indirectly through
Joint Ventures, or other partnerships, or other legal entities.

 

Prospectus. Any document by whatever
name known, utilized for the purpose of offering and selling securities to the public.

 

REIT. A “real estate investment
trust” as defined pursuant to Sections 856 through 860 of the Code.

 

Sale or Sales. (i) Any transaction
or series of transactions whereby: (A) the Company sells, grants, transfers, conveys or relinquishes its ownership of any Property
or portion thereof, including the lease of any Property or other asset consisting of the building only, and including any event
with respect to any Property which gives rise to a significant amount of insurance proceeds or condemnation awards; (B) the Company
sells, grants, transfers, conveys or relinquishes its ownership of all or substantially all of the interest of the Company in any
Joint Venture in which it is a co-venturer or partner; (C) any Joint Venture in which the Company as a co-venturer or partner sells,
grants, transfers, conveys or relinquishes its ownership of any Property or other Permitted Investment or portion thereof, including
any event with respect to any Property or other Permitted Investment which gives rise to insurance claims or condemnation awards;
or (D) the Company sells, grants, conveys or relinquishes its interest in any Property or other Permitted Investment, or portion
thereof, including any event with respect to any Property or other Permitted Investment, which gives rise to a significant amount
of insurance proceeds or similar awards.

 

Securities. Any class of shares of
common stock or preferred stock, as such terms are defined in the Company’s Articles of Incorporation, any other Company
stock, shares or other evidences of equity or beneficial or other interests, voting trust certificates, bonds, debentures, notes
or other evidences of indebtedness, secured or unsecured, convertible, subordinated or otherwise, or in general any instruments
commonly known as “securities” or any certificates of interest, shares or participations in, temporary or interim certificates
for, receipts for, guarantees of, or warrants, options or rights to subscribe to, purchase or acquire, any of the foregoing.

 

Sponsor. Rich Uncles, LLC and any
Person directly or indirectly instrumental in organizing, wholly or in part, the Company or any Person who will control, manage
or participate in the management of the Company, and any Affiliate of such Person. Not included is any Person whose only relationship
with the Company is that of an independent property manager of the Company’s Properties and whose only compensation is as
such. Sponsor does not include independent third parties such as attorneys and accountants whose only compensation is for professional
services. A Person may also be deemed a Sponsor of the Company by:

 

    5 

     

    

 

(a) taking the initiative, directly or indirectly,
in founding or organizing the business or enterprise of the Company, either alone or in conjunction with one or more other Persons;

 

(b) receiving a material participation in
the Company in connection with the founding or organizing of the business of the Company, in consideration of services or property,
or both services and property;

 

(c) having a substantial number of relationships
and contacts with the Company;

 

(d) possessing significant rights to control
the Company’s Properties;

 

(e) receiving fees for providing services
to the Company which are paid on a basis that is not customary in the industry; or

 

(f) providing goods or services to the Company
on a basis which was not negotiated at arm’s length with the Company.

 

Stockholders. The registered holders
of the Company’s Securities.

 

Subordinated Participation Fee. The
Subordinated Participation Fee as defined in Paragraph 9(f).

 

Termination Date. The date of termination
of this Agreement whether pursuant to (i) the non-renewal of this Agreement under Paragraph 15 below or (ii) written notice of
termination under Paragraph 16 below.

 

Total Investment Value. For any given
period, the total of the aggregate book value of all of the Company’s assets invested, directly or indirectly, in Properties
before reserves for depreciation, bad debts or similar non-cash items.

 

2. Appointment. The Company hereby
appoints the Advisor to serve as its advisor on the terms and conditions set forth in this Agreement, and the Advisor hereby accepts
such appointment.

 

3. Duties of the Advisor. Subject to
Sections 4 and 7 of this Agreement, the Advisor undertakes to use its best efforts to present to the Company potential investment
opportunities and to provide a continuing and suitable investment program consistent with the investment objectives and policies
of the Company as determined and adopted from time to time by the Directors. In performance of this undertaking, subject to the
supervision of the Directors and consistent with the provisions of the Prospectus, the Offering Memorandum, the Articles of Incorporation
and the Bylaws of the Company, the Advisor shall, either directly or by engaging an Affiliate:

 

(a) accept and execute any and all delegated
duties from the Company as a general partner of Operating Partnership;

 

(b) find, present and recommend to the Company
real estate investment opportunities consistent with its investment policies and objectives;

 

    6 

     

    

 

(c) structure the terms and conditions of
the Company’s investments, sales and co-ownerships;

 

(d) acquire real estate investments on behalf
of the Company in compliance with its investment objectives and policies;

 

(e) arrange for financing and refinancing
of the Company’s real estate investments;

 

(f) enter into leases and service contracts
for the Company’s properties;

 

(g) review and analyze the Company’s
operating and capital budgets;

 

(h) assist the Company in obtaining insurance;

 

(i) generate an annual budget for the Company;

 

(j) review and analyze financial information
for each of the Company’s assets and the overall portfolio;

 

(k) formulate and oversee the implementation
of strategies for the administration, promotion, management, operation, maintenance, improvement, financing and refinancing, marketing,
leasing and disposition of the Company’s real estate investments;

 

(l) perform investor-relations services;

 

(m) maintain the Company’s accounting
and other records and assist in filing all reports required to be filed with the SEC, the Internal Revenue Service and other regulatory
agencies;

 

(n) engage and supervise the performance
of the Company’s agents, including registrar and transfer agents;

 

(o) perform administrative and operational
duties reasonably requested by the Company;

 

(p) perform any other services reasonably
requested by the Company; and

 

(q) do all things necessary to assure its
ability to render the services described in this Agreement.

 

4. Authority of Advisor.

 

(a) Pursuant to the terms of this Agreement
(including the restrictions included in this Paragraph 4 and in Paragraph 7), and subject to the continuing and exclusive authority
of the Directors over the management of the Company, the Directors hereby delegate to the Advisor the authority to (1) locate,
analyze and select investment opportunities, (2) structure the terms and conditions of transactions pursuant to which investments
will be made or acquired for the Company, (3) acquire Properties in compliance with the investment objectives and policies of the
Company, (4) arrange for financing or refinancing with respect to Properties, (5) enter into leases and service contracts for the
Company’s Property, and perform other property management services, (6) oversee non-Affiliated property managers and other
non-Affiliated Persons who perform services for the Company; and (7) undertake accounting and other record-keeping functions at
the Property level.

 

    7 

     

    

 

(b) Notwithstanding the foregoing, any investment
in Properties, including any acquisition of Property by the Company (as well as any financing acquired by the Company in connection
with such acquisition), will require the prior approval of the Directors (including a majority of the Independent Directors), provided,
that a majority of the Directors, including a majority of the Independent Directors may establish de minimis acquisition standards
not requiring approval of the Directors for transactions other than transactions with a Director, the Sponsor, the Advisor or their
Affiliates.

 

(c) If a transaction requires approval by
the Independent Directors, the Advisor will deliver to the Independent Directors all documents required by them to properly evaluate
the proposed investment in the Property.

 

(d) The prior approval of a majority of
the Independent Directors and a majority of the Directors not otherwise interested in the transaction will be required for each
transaction with the Advisor or any of its Affiliates.

 

(e) The Directors may, at any time upon
the giving of notice to the Advisor, modify or revoke the authority set forth in this Paragraph 4. If and to the extent the Directors
so modify or revoke the authority contained herein, the Advisor shall henceforth submit to the Directors for prior approval such
proposed transactions involving investments which thereafter require prior approval, provided, however, that such modification
or revocation shall be effective upon receipt by the Advisor and shall not be applicable to investment transactions to which the
Advisor has committed the Company prior to the date of receipt by the Advisor of such notification.

 

5. Bank Accounts. The Advisor may establish
and maintain one or more bank accounts in its own name for the account of the Company or in the name of the Company and may collect
and deposit into any such account or accounts, and disburse from any such account or accounts, any money on behalf of the Company,
under such terms and conditions as the Directors may approve, provided that no funds shall be commingled with the funds of the
Advisor; and the Advisor shall from time to time render appropriate accountings of such collections and payments to the Directors
and to the auditors of the Company.

 

6. Records; Access. The Advisor shall
maintain appropriate records of all its activities hereunder and make such records available for inspection by the Directors and
by counsel, auditors and authorized agents of the Company, at any time or from time to time during normal business hours. The Advisor
shall at all reasonable times have access to the books and records of the Company.

 

7. Limitations on Activities. Anything
else in this Agreement to the contrary notwithstanding, the Advisor shall refrain from taking any action which, in its sole judgment
made in good faith, would (a) adversely affect the status of the Company as a REIT, (b) subject the Company to regulation under
the Investment Company Act of 1940, (c) subject the Advisor to regulation under the Investment Advisers Act of 1940, or (d) violate
any law, rule, regulation or statement of policy of any governmental body or agency having jurisdiction over the Company or its
Securities, or otherwise not be permitted by the Articles of Incorporation or Bylaws of the Company, except if such action shall
be ordered by the Directors, in which case the Advisor shall notify promptly the Directors of the Advisor’s judgment of the
potential impact of such action and shall refrain from taking such action until it receives further clarification or instructions
from the Directors. In such event the Advisor shall have no liability for acting in accordance with the specific instructions of
the Directors so given. Notwithstanding the foregoing, the Advisor, its Directors, officers, employees and stockholders, and stockholders,
Directors and officers of the Advisor’s Affiliates shall not be liable to the Company or to the Directors or Stockholders
for any act or omission by the Advisor, its Directors, officers or employees, or stockholders, Directors or officers of the Advisor’s
Affiliates except as provided in Paragraphs 20 and 21 of this Agreement.

 

    8 

     

    

 

8. Relationship with Directors. Directors,
officers and employees of the Advisor or an Affiliate of the Advisor or any corporate parents of an Affiliate, or Directors, officers
or stockholders of any director, officer or corporate parent of an Affiliate may serve as a Director and as officers of the Company,
except that no director, officer or employee of the Advisor or its Affiliates who also is a Director or officer of the Company
shall receive any compensation from the Company for serving as a Director or officer of the Company other than reasonable reimbursement
for travel and related expenses incurred in attending meetings of the Directors of the Company.

 

9. Fees and Limitation on Loans from Affiliates.

 

(a) Asset Management Fee. For each
Applicable Class, the Company shall pay to the Advisor or an Affiliate of the Advisor as compensation for the advisory services
rendered to the Company under Paragraph 3 above, a monthly fee (the “Asset Management Fee”) in an amount equal to the
pro rata portion of 0.1% of the Company’s Total Investment Value, as of the end of the preceding month; provided, however,
that the Advisor shall cause an amount equal to one-third of the pro rata portion of its Asset Management Fee attributable
to Large Investors (without giving effect to any waiver or deferral of such fees by the Advisor) to be rebated to the Large Investors,
on a pro rata basis based on each such Large Investor’s pro rata investment in the Company. The Asset Management Fee shall
be payable monthly on the last day of such month, or the first business day following the last day of such month. The Asset Management
Fee, which must be reasonable in the determination of the Company’s Independent Directors at least annually, may or may not
be taken, in whole or in part as to any year, in the sole discretion of the Advisor. All or any portion of the Asset Management
Fee not taken as to any fiscal year shall be deferred without interest and may be taken in such other fiscal year as the Advisor
shall determine. Additionally, to the extent the Advisor elects, in its sole discretion, to defer all or any portion of its monthly
Asset Management Fee, the Advisor agrees that it will waive, not defer, that portion of its monthly Asset Management Fee that is
up to 0.025% of the Company’s Total Investment Value.

 

(b) Acquisition Fees. For each Applicable
Class, the Company shall pay to the Advisor a fee in an amount equal to 3.0% of the Company’s pro rata share of the Contract
Purchase Price of an investment in a Property attributable to such Applicable Class, as Acquisition Fees. The total of all Acquisition
Fees and Acquisition Expenses shall be reasonable, and shall not exceed 6.0% of the Contract Purchase Price of the Property unless
a majority of the directors (including a majority of the Independent Directors) not otherwise interested in the transaction determine
the transaction to be commercially competitive, fair and reasonable to the Company.

 

    9 

     

    

 

(c) Financing Coordination Fee. Other
than with respect to any mortgage or other financing related to a Property concurrent with its acquisition, if the Advisor or any
of its Affiliates provides a substantial amount of the services (as determined by a majority of the Independent Directors) in connection
with the post-acquisition financing or refinancing of any debt that the Company obtains relative to a Property, then the Company
shall pay to the Advisor or such Affiliate a financing coordination fee equal to 1.0% of the amount of such financing.

 

(d) Property Management Fee. If the
Advisor or any of its Affiliates provides a substantial amount of property management services (as determined by a majority of
the Independent Directors) for the Company’s Properties, then the Company shall pay to the Advisor or such Affiliate a property
management fee equal to 1.5% of the gross revenues from the Properties managed and owned by the Company. The Company also will
reimburse the Advisor and any of its Affiliates for property-level expenses that such Person pays or incurs on behalf of the Company,
including salaries, bonuses and benefits of Persons employed by such Person, except for the salaries, bonuses and benefits of Persons
who also serve as one of the Company’s executive officers or as an executive officer of such Person. The Advisor or its Affiliates
may subcontract the performance of its property management duties to third parties and pay all or a portion of its property management
fee to the third parties with whom it contracts for these services.

 

(e) Leasing Commissions. If any Property
of the Company becomes unleased and the Advisor or any of its Affiliates provides a substantial amount of the services (as determined
by a majority of the Independent Directors) in connection with the Company’s leasing of such Property to unaffiliated third
parties, then the Company shall pay to the Advisor (or such Affiliate) leasing commissions equal to 6.0% of the rents due under
such lease for the first ten years of the lease term; provided, however (i) if the term of the lease is less than ten years, such
commission percentage will apply to the full term of the lease and (ii) any rents due under a renewal of a lease of an existing
tenant upon expiration of the initial lease agreement (including any extensions provided for thereunder) shall accrue a commission
of 3.0% in lieu of the aforementioned 6.0% commission. To the extent that an unaffiliated real estate broker assists in such leasing
services, any compensation paid by the Company to the Advisor or any of its Affiliates will be reduced by the amount paid to such
unaffiliated real estate broker.

 

(f) Disposition Fee. For substantial
assistance in connection with the sale of any Property, the Company shall pay to its Advisor or one of its Affiliates 3.0% of the
Contract Sales Price of each Property; provided, however, that if, in connection with such disposition, commissions are paid to
third parties unaffiliated with the Advisor or any of its Affiliates, the disposition fees paid to the Advisor, the Sponsor, their
Affiliates and unaffiliated third parties may not in the aggregate exceed the lesser of the Competitive Real Estate Commission
or 6% of the Contract Sales Price.

 

    10 

     

    

 

(g) Subordinated Participation Fee.
For each Applicable Class, the Company shall pay to the Advisor or one of its Affiliates a subordinated participation fee calculated
as of December 31 of each year and paid (if at all) in the immediately following January. The subordinated participation fee is
only due if the Preferred Return is achieved and is equal to the sum of:

 

(i) 30% of the product of (a) the difference
of (x) the Preliminary NAV per share minus (y) the Highest Prior NAV per share of such Applicable Class, multiplied by
(b) the number of shares outstanding of such Applicable Class as of December 31 of the relevant annual period, but only if this
results in a positive number, plus

 

(ii) 30% of the product of: (a) the amount
by which aggregate cash distributions to holders of such Applicable Class during the annual period, excluding return of capital
distributions, divided by the weighted average number of shares of common stock outstanding for the annual period, exceed the Preferred
Return, multiplied by (b) the weighted average number of shares of such Applicable Class outstanding for the annual period
calculated on a monthly basis; provided, however, that the Advisor shall cause an amount equal to one-third of the pro rata portion
of its Subordinated Participation Fee attributable to Large Investors to be rebated to the Large Investors, on a pro rata
basis based on each such Large Investor’s pro rata investment in the Company.

 

The Subordinated Participation Fee may be
paid in the form of shares of the Company’s common stock determined using a price equal to the NAV Per Share of the Class
C Shares as of December 31 of the prior year (i.e., after deduction of the Subordinated Participation Fee from the Preliminary
NAV).

 

(h) Liquidation Fee. The Company
shall pay the Advisor or one of its Affiliates a Liquidation Fee calculated from the value per share resulting from a liquidation
event, including but not limited to a sale of all of the Properties, a public listing, or a merger with a public or non-public
company, equal to 30.0% of the increase, if any, in the resultant value per share as compared to the Highest Prior NAV per Share
, multiplied by the number of outstanding shares of the Company’s common stock as of the liquidation date, subordinated to
payment to the Company’s stockholders of the Preferred Return, pro-rated for the year in which the liquidation event occurs;
provided, however, that our Advisor shall cause an amount equal to one-third of the pro rata portion of its Liquidation Fee attributable
to Large Investors to be rebated to the Large Investors, on a pro rata basis based on each such Large Investor’s pro rata
investment in the Company.

 

(i) Loans from Affiliates. The Company
may not borrow money from the Advisor or any Affiliate of the Advisor, unless a majority of the Directors (including a majority
of the Independent Directors) not otherwise interested in such transaction approve the transaction as being fair, competitive,
and commercially reasonable and no less favorable to the Company than loans between unaffiliated parties under the same circumstances.

 

    11 

     

    

 

10. Expenses.

 

(a) In addition to the compensation paid
to the Advisor pursuant to Paragraph 9 hereof, for each Applicable Class, the Company shall pay directly or reimburse the Advisor
for all of the expenses paid or incurred by the Advisor in connection with the services it provides to the Company pursuant to
this Agreement, including, but not limited to:

 

(i) the Company’s Organizational and
Offering Expenses (including any Organizational and Offering Expenses reimbursed to the Sponsor), but not to exceed 3.0% of the
gross proceeds raised from the applicable Offering;

 

(ii) the Acquisition Expenses incurred in
connection with the selection and acquisition of Properties;

 

(iii) the actual cost of goods and materials
used by the Company and obtained from entities not Affiliated with the Advisor, other than Acquisition Expenses;

 

(iv) interest and other costs for borrowed
money, including discounts, points and other similar fees;

 

(v) taxes and assessments on income or Property
and taxes as an expense of doing business;

 

(vi) costs associated with insurance required
or deemed necessary by the Directors in connection with the business of the Company or by the Directors;

 

(vii) expenses of managing and operating Properties
owned by the Company, whether payable to an Affiliate of the Company or a non-Affiliated Person;

 

(viii) all expenses in connection with payments
to the Directors and meetings of the Directors and Stockholders;

 

(ix) expenses associated with listing or with
the issuance and distribution of shares of such Applicable Class, such as advertising expenses, taxes, legal and accounting fees,
and listing and registration fees;

 

(x) expenses connected with payments of Distributions
in cash or otherwise made or caused to be made by the Directors to the Stockholders;

 

(xi) expenses of organizing, revising, amending,
converting, modifying, or terminating the Company or the Articles of Incorporation;

 

(xii) expenses of maintaining communications
with Stockholders, including the cost of preparation, printing, and mailing annual reports and other Stockholder reports, proxy
statements and other reports required by governmental entities;

 

(xiii) expenses related to negotiating and
servicing loans;

 

    12 

     

    

 

(xiv) administrative service expenses (including
personnel costs; provided, however, that no reimbursement shall be made for costs of personnel to the extent that such personnel
perform services in transactions for which the Advisor receives a separate fee; and

 

(xv) audit, accounting and legal fees.

 

(b) Expenses incurred by the Advisor on
behalf of the Company and payable pursuant to this Paragraph 10 shall be reimbursed no less often than monthly to the Advisor.
The Advisor shall prepare a statement documenting the expenses of the Company during each quarter, and shall deliver such statement
to the Company within 45 days after the end of each quarter.

 

11. Limitation on Payments. Notwithstanding
any other provision of this Agreement, the Advisor shall not be entitled to receive, and the Company shall not pay to the Advisor,
any of its Affiliates or any third party, any amounts that would result in the Company violating the Articles of Incorporation,
including, without limitation, the provisions of Section 6.4 (or any successor provision) to the Articles of Incorporation. If
the Advisor or any of its Affiliates receive any payments that would cause any provision of the Articles of Incorporation to be
violated, and the receipt of such payment is not approved in the manner, if any, provided in the Articles of Incorporation that
would result in such payment being permitted, then the Advisor or such Affiliate shall promptly, upon request by the Company reimburse
the Company the amount by which the aggregate amount received by the Advisor or its Affiliates exceed the amounts permitted by
the Articles of Incorporation.

 

12. Other Services. Should the Directors
request that the Advisor or any director, officer or employee thereof render services for the Company other than set forth in Section
3, such services shall be separately compensated at such rates and in such amounts as are agreed by the Advisor and the Independent
Directors of the Company, subject to the limitations contained in the Articles of Incorporation, and shall not be deemed to be
services pursuant to the terms of this Agreement.

 

13. Other Activities of the Advisor. 

 

(a) Nothing herein contained shall prevent
the Advisor from engaging in other activities, including, without limitation, the rendering of advice to other Persons (including
other REITs) and the management of other programs advised, sponsored or organized by the Advisor or its Affiliates; nor shall this
Agreement limit or restrict the right of any director, officer, employee, or stockholder of the Advisor or its Affiliates to engage
in any other business or to render services of any kind to any other partnership, corporation, firm, individual, trust or association.
The Advisor may, with respect to any investment in which the Company is a participant, also render advice and service to each and
every other participant therein. The Advisor shall report to the Directors the existence of any condition or circumstance, existing
or anticipated, of which it has knowledge, which creates or could create a conflict of interest between the Advisor’s obligations
to the Company and its obligations to or its interest in any other partnership, corporation, firm, individual, trust or association.
The Advisor or its Affiliates shall disclose to the Directors knowledge of such condition or circumstance in accordance with Section
13(d) hereof. If the Sponsor, Advisor, Director or Affiliates thereof have sponsored other investment programs with similar investment
objectives which have investment funds available at the same time as the Company, it shall be the duty of the Directors (including
the Independent Directors) to adopt the methods, if any, set forth in the Prospectus and the Offering Memorandum or another reasonable
method by which properties are to be allocated to the competing investment entities and to use their best efforts to apply such
method fairly to the Company.

 

    13 

     

    

 

(b) The Advisor shall be required to use
its best efforts to present a continuing and suitable investment program to the Company which is consistent with the investment
policies and objectives of the Company, but neither the Advisor nor any Affiliate of the Advisor shall be obligated generally to
present any particular investment opportunity to the Company even if the opportunity is of character which, if presented to the
Company, could be taken by the Company.

 

(c) In the event that the Advisor or its
Affiliates is presented with a potential investment which might be made by the Company and by another investment entity which the
Advisor or its Affiliates advises or manages, the Advisor and its Affiliates shall consider the investment portfolio of each entity,
cash flow of each entity, the effect of the acquisition on the diversification of each entity’s portfolio, rental payments
during any renewal period, the estimated income tax effects of the purchase on each entity, the policies of each entity relating
to leverage, the funds of each entity available for investment and the length of time such funds have been available for investment.
In the event that an investment opportunity becomes available which is suitable for both the Company and a public or private entity
which the Advisor or its Affiliates are Affiliated, then the entity which has had the longest period of time elapse since it was
offered an investment opportunity will first be offered the investment opportunity. For purposes of this conflict resolution procedure,
an investment opportunity will be considered “offered” to the Company when an opportunity is presented to the Board
of Directors for its consideration.

 

(d) The Advisor shall inform the conflicts
committee of the Company’s Board of Directors each quarter of the investments that have been purchased by other Rich Uncles-sponsored
programs and Rich Uncles-advised investors for whom the Advisor or one of its Affiliates serves as an advisor so that the conflicts
committee can evaluate whether the Company is receiving its fair share of opportunities.

 

14. Relationship of Advisor and Company.
The Company and the Advisor are not partners or joint venturers with each other, and nothing in this Agreement shall be construed
to make them such partners or joint venturers or impose any liability as such on either of them.

 

15. Term; Termination of Agreement.
This Agreement shall continue in force for one year from the date of this Agreement, subject to an unlimited number of successive
one-year renewals upon mutual consent of the parties. It is the duty of the Directors to evaluate the performance of the Advisor
annually before renewing the Agreement, and such renewal shall have a term of no more than one year.

 

16. Termination by Either Party. This
Agreement shall be terminable by a majority of the Independent Directors, or the Advisor, in either case on 60 days’ written
notice and with or without Cause; provided, however, that if this Agreement is terminated by the Independent Directors without
Cause or by the Advisor at a time when no Cause for termination exists, then the Advisor shall be entitled to the value of its
Liquidation Fee as provided under Paragraph 9(h) above determined based on the NAV Per Share at the date of termination. In the
event of the termination of this Agreement, the Advisor will cooperate with the Company and take all reasonable steps requested
to assist the Directors in making an orderly transition of the advisory function.

 

    14 

     

    

 

17. Assignment to an Affiliate. This
Agreement may be assigned by the Advisor to an Affiliate with the approval of a majority of the Directors (including a majority
of the Independent Directors). The Advisor may assign any rights to receive fees or other payments under this Agreement without
obtaining the approval of the Directors. This Agreement shall not be assigned by the Company without the consent of the Advisor,
except in the case of an assignment by the Company to a corporation or other organization which is a successor to all of the assets,
rights and obligations of the Company, in which case such successor organization shall be bound hereunder and by the terms of said
assignment in the same manner as the Company is bound by this Agreement.

 

18. Subcontracts with Affiliates. The
Advisor may subcontract with an Affiliate for a portion of the services and duties to be performed under this Agreement without
obtaining the approval of the Directors to the extent such services or duties are primarily administrative in nature. The Advisor
may further subcontract any rights to receive fees or other payments for such services or duties under this Agreement without obtaining
the approval of the Directors.

 

19. Payments to and Duties of Advisor Upon
Termination.

 

(a) After the Termination Date, the Advisor
shall not be entitled to compensation for further services hereunder except it shall be entitled to receive from the Company within
30 days after the effective date of such termination all unpaid reimbursements of expenses and all earned but unpaid fees payable
to the Advisor prior to termination of this Agreement, exclusive of disputed items arising out of possible unauthorized transactions.

 

(b) The Advisor shall be entitled to receive
all accrued but unpaid compensation and expense reimbursements in cash within 30 days of the Termination Date.

 

(c) The Advisor shall promptly upon termination:

 

(i) pay over to the Company all money collected
and held for the account of the Company pursuant to this Agreement, after deducting any accrued compensation and reimbursement
for its expenses to which it is then entitled;

 

(ii) deliver to the Directors a full accounting,
including a statement showing all payments collected by it and a statement of all money held by it, covering the period following
the date of the last accounting furnished to the Directors;

 

(iii) deliver to the Directors all assets,
including Properties, and documents of the Company then in the custody of the Advisor; and

 

(iv) cooperate with the Company to provide
an orderly management transition.

 

    15 

     

    

 

20. Indemnification by the Company. The
Company shall indemnify and hold harmless the Advisor and its Affiliates, including their respective officers, directors, partners
and employees, from all liability, claims, damages or losses arising in the performance of their duties hereunder, and related
expenses, including reasonable attorneys’ fees, to the extent such liability, claims, damages or losses and related expenses
are not fully reimbursed by insurance, subject to any limitations imposed by the laws of the State of Maryland or the Articles
of Incorporation of the Company. Notwithstanding the foregoing, the Advisor shall not be entitled to indemnification or be held
harmless pursuant to this Paragraph 20 for any activity for which the Advisor shall be required to indemnify or hold harmless the
Company pursuant to Paragraph 21. Any indemnification of the Advisor may be made only out of the net assets of the Company and
not from Stockholders.

 

21. Indemnification by Advisor. The
Advisor shall indemnify and hold harmless the Company from contract or other liability, claims, damages, taxes or losses and related
expenses including attorneys’ fees, to the extent that such liability, claims, damages, taxes or losses and related expenses
are not fully reimbursed by insurance and are incurred by reason of the Advisor’s bad faith, fraud, misconduct, or gross
negligence, but the Advisor shall not be held responsible for any action of the Board of Directors in following or declining to
follow any advice or recommendation given by the Advisor.

 

22. Notices. Any notice, report or
other communication required or permitted to be given hereunder shall be in writing unless some other method of giving such notice,
report or other communication is required by the Articles of Incorporation, the Bylaws, or accepted by the party to whom it is
given, and shall be given by being delivered by hand or by overnight mail or other overnight delivery service to the addresses
set forth herein:

 

	To the Directors and to the Company:	
        RW Holdings NNN REIT, Inc. 

        3080 Bristol Street, Suite 550 

        Costa Mesa, CA 92626 

        Attn: Jean Ho

	 	 
	To the Advisor:	
        Rich Uncles NNN REIT Operator, LLC 

        3080 Bristol Street, Suite 550 

        Costa Mesa, CA 92626 

        Attn: Harold Hofer

 

Either party may at any time give notice in writing to the other
party of a change in its address for the purposes of this Paragraph 22.

 

23. Modification. This Agreement shall
not be changed, modified, terminated, or discharged, in whole or in part, except by an instrument in writing signed by both parties
hereto, or their respective successors or assignees.

 

24. Severability. The provisions of
this Agreement are independent of and severable from each other, and no provision shall be affected or rendered invalid or unenforceable
by virtue of the fact that for any reason any other or others of them may be invalid or unenforceable in whole or in part.

 

    16 

     

    

 

25. Construction. The provisions of
this Agreement shall be interpreted, construed and enforced in all respects in accordance with the laws of the State of Maryland
applicable to contracts to be made and performed entirely in said state.

 

26. Entire Agreement. This Agreement
contains the entire agreement and understanding among the parties hereto with respect to the subject matter hereof, and supersedes
all prior and contemporaneous agreements, understandings, inducements and conditions, express or implied, oral or written, of any
nature whatsoever with respect to the subject matter hereof. The express terms hereof control and supersede any course of performance
and/or usage of the trade inconsistent with any of the terms hereof. The Prior Agreement is hereby amended and restated its entirety
as set forth herein. All provisions of, rights granted and covenants made in the Prior Agreement are hereby waived, released and
superseded in their entirety and shall have no further force and effect.

 

27. Indulgences, Not Waivers. Neither
the failure nor any delay on the part of a party to exercise any right, remedy, power or privilege under this Agreement shall operate
as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further
exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege
with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence.
No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver.

 

28. Gender. Words used herein regardless
of the number and gender specifically used, shall be deemed and construed to include any other number, singular or plural, and
any other gender, masculine, feminine or neuter, as the context requires.

 

29. Headings Not to Affect Interpretation.
The headings of paragraphs and subparagraphs contained in this Agreement are for convenience only and they neither form a part
of this Agreement nor are they to be used in the construction or interpretation hereof.

 

30. Execution in Counterparts. This
Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original as against any party whose
signature appears thereon, and all of which shall together constitute one and the same instrument. This Agreement shall become
binding when one or more counterparts hereof, individually or taken together, shall bear the signatures of all of the parties reflected
hereon as the signatories.

 

[Remainder of Page Intentionally Left
Blank]

 

    17 

     

    

 

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

 

	 	RW Holdings NNN REIT, Inc.
	 	 
	 	By:	/s/ Jean Ho
	 	
        Name:

        Title:
	
        Jean Ho

        Chief Financial Officer

	 	 	 
	 	Rich Uncles NNN REIT Operator, LLC
	 	 	 
	 	By:	/s/ Harold Hofer
	 	
        Name: 

        Title:
	
        Harold Hofer

        Manager

	 	 	 
	 	Rich Uncles, LLC
	 	 	 
	 	By:	/s/ Harold Hofer
	 	
        Name:

        Title:
	
        Harold Hofer

        Manager

 

[SIGNATURE PAGE TO SECOND AMENDED AND RESTATED
ADVISORY AGREEMENT]

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