Document:

Exhibit

Exhibit 10.6

EXECUTION VERSION

PROPERTY MANAGEMENT AND LEASING AGREEMENT
This PROPERTY MANAGEMENT AND LEASING AGREEMENT (this “Agreement”) is made and entered into as of February 10, 2017, among BEHRINGER HARVARD OPPORTUNITY REIT I, INC., a Maryland corporation (“BH Opportunity REIT”), BEHRINGER HARVARD OPPORTUNITY OP I, LP, a Texas limited partnership (“BH OP”), the Existing Owners (as defined below) and LSG-BH I PROPERTY MANAGER LLC, a Delaware limited liability company (“Manager”).   
WHEREAS, BH OP was organized to acquire, own, operate, lease and manage real estate properties on behalf of BH Opportunity REIT; and
WHEREAS, BH Opportunity REIT and BH OP previously entered into that certain Third Amended and Restated Property Management and Leasing Agreement, dated as of May 31, 2016, with Behringer Harvard Opportunity Management Services, LLC, Behringer Harvard Real Estate Services, LLC, Behringer Harvard Cordillera, LLC,  Behringer Harvard Northpoint LP, Behringer Harvard Frisco Square LP, Chase Park Plaza Hotel LLC, and WCW Multifamily Holdings, LLC (collectively, the “Original Managers”); and
WHEREAS, Owner desires to replace the Original Managers with Manager, and to have Manager manage and coordinate the leasing of certain of the real estate properties owned by Owner under the terms and conditions set forth in this Agreement; 
NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound hereby, do hereby agree, as follows:
ARTICLE I

DEFINITIONS
Except as otherwise specified or as the context may otherwise require, the following terms have the respective meanings set forth below for all purposes of this Agreement, and the definitions of such terms are equally applicable both to the singular and plural forms thereof:
1.1    “Account” has the meaning set forth in Section 2.5 hereof.
1.2    “Advisor” means LSG-BH I Advisor LLC, a Delaware limited liability company, or its successor as advisor of BH Opportunity REIT. 

1.3    “Affiliate” means, except as otherwise provided herein, with respect to any Person, any other Person which, at the time of determination, directly or indirectly controls, is controlled by or is under common control with, such Person.  For the purposes of this definition, “control” (including, with correlative meaning, the terms “controlling,” “controlled by” and “under common control with”) means the possession, directly or indirectly, of the power to direct or cause the direction of management and policies of such Person through the ownership of voting securities, by contract or otherwise.  There shall be no presumption that (i) a Person that holds less than a majority ownership interest with respect to any other Person directly or indirectly controls such other Person, and (ii) an individual who is an officer or a director of another Person directly or indirectly controls such other Person.
1.4    “Annual Budget” has the meaning set forth in Section 2.7 hereof.
1.5    “Bankruptcy Code” has the meaning set forth in Section 8.17 hereof.
1.6    “Current Owners” means all existing Owners who are signatories to this Agreement as of the date of this Agreement and who are listed on Schedule A hereto. The Property owned by each Current Owner also is listed on Schedule A hereto. 
1.7    “Delayed Consent Owners” means all existing Owners who are signatories to this Agreement as of the date of this Agreement and who are listed on Schedule B hereto. The Property owned by each Delayed Consent Owner also is listed on Schedule B hereto.
1.8     “Economic Interest Percentage” means the percentage of capital contributed directly or indirectly to the Joint Venture as compared with the total capital contributed to the Joint Venture by all of the owners of the Joint Venture as the percentage shall be calculated in good faith by the Owner.  Any in-kind contribution shall be considered in the calculation of the Economic Interest Percentage and valued at the fair market value of the contribution on the date of contribution as determined by the Owner.
1.9    “Existing Owners” means Current Owners and Delayed Consent Owners. 
1.10    “Gross Revenues” means all amounts actually collected as rents or other charges for the use and occupancy of the Properties, but shall exclude (i) interest and other investment income of Owner, and (ii) proceeds received by Owner from a sale, exchange, condemnation, eminent domain taking, casualty or other disposition of assets of Owner.
1.11    “Improvements” means any buildings, structures and equipment from time to time located on the Properties and all parking and common areas located on the Properties.
1.12    “Intellectual Property Rights” means all rights, titles and interests, whether foreign or domestic, in and to any and all trade secrets, confidential information rights, patents, invention rights, copyrights, service marks, trademarks, know-how, or similar intellectual property rights and all applications and rights to apply for such rights, as well as any and all moral rights, rights of privacy, publicity and similar rights and license rights of any type under 

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the laws or regulations of any governmental, regulatory, or judicial authority, foreign or domestic, and all renewals and extensions thereof.
1.13    “Joint Venture” means an investment in a legal organization formed to provide for the sharing of the risks and rewards in an enterprise co-owned and operated for mutual benefit by two or more Persons and established to acquire or hold Properties.
1.14    “Lease” means, unless the context otherwise requires, any lease or sublease made by Owner as landlord or by its predecessor.
1.15    “Losses” has the meaning set forth in Section 3.6 hereof.
1.16    “Management Fee” has the meaning set forth in Section 5.1 hereof.
1.17    “Manager Indemnified Parties” has the meaning set forth in Section 2.7 hereof.
1.18    “Notice” has the meaning set forth in Section 8.1 hereof.
1.19    “Original Managers” has the meaning set forth in the recitals.
1.20    “Oversight Fee” has the meaning set forth in Section 5.1 hereof.
1.21    “Owner” means, individually and collectively, BH Opportunity REIT, BH OP, and each Existing Owner and any joint venture, limited liability company or other Affiliate of BH Opportunity REIT or BH OP that owns, in whole or in part, on behalf of BH Opportunity REIT, any Property or Properties. 
1.22    “Ownership Agreements” has the meaning set forth in Section 2.4 hereof.
1.23    “Person” means an individual, corporation, association, business trust, estate, trust, partnership, limited liability company or other legal entity.
1.24    “Property” means any interest in real estate now owned by Owner and any interest in real estate hereafter acquired by Owner containing income-producing improvements or on which Owner will construct income-producing improvements.
1.25    “Property Amendment” means an amendment to this Agreement describing a Property and the Owner thereof and any variations to the basic terms and conditions of this Agreement with respect to the Property related thereto, which shall be in substantially the form of Exhibit A attached hereto.
1.26     “Proprietary Properties” means all modeling algorithms, tools, computer programs, know-how, methodologies, processes, technologies, ideas, concepts, skills, routines, subroutines, operating instructions and other materials and aides used in performing the duties set forth in Article II that relate to management advice, services and techniques regarding current and potential Properties, and all modifications, enhancements and derivative works of the foregoing.

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1.27    “Submanager” has the meaning set forth in Section 8.3 hereto. 
1.28    “Texas Tax Code” means the Texas Tax Code as amended by Texas H.B. 3, 79th Leg., 3rd C.S. (2006), and reference to any provision of the Texas Tax Code Act 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 administrative rules as in effect from time to time.
1.29    “Third-Party Leasing Agreement” has the meaning set forth in Section 8.4 hereto. 
1.30    “Third-Party Management Agreement” has the meaning set forth in Section 8.5 hereto.
ARTICLE II

APPOINTMENT AND STATUS OF MANAGER; SERVICES TO BE PERFORMED
2.1    Appointment of Manager.  Owner hereby engages and retains Manager as the manager and as tenant coordinating agent of the Properties, and Manager hereby accepts such appointment on the terms and subject to the conditions hereinafter set forth; it being understood that this Agreement shall cause Manager to be, at law, Owner’s agent upon the terms contained herein. Owner and Manager shall execute a Property Amendment for each Property hereafter acquired setting forth a description of the Property, the individual legal Owner with respect to the Property, and any variations from the terms and conditions set forth in this Agreement with respect to the management and leasing of the Property. By executing a Property Amendment, each Owner will become a signatory and party to this Agreement with respect to such new Property.
2.2    Treatment Under Texas Margin Tax.  For purposes of the Texas margin tax, Manager’s performance of the services specified in this Agreement may cause Manager to conduct part of the active trade or business of Owner, and Manager’s compensation may include both the payment of management fees and the reimbursement of specified costs incurred in Manager’s conduct of the active trade or business of Owner.  If Manager were deemed to conduct part of the active trade or business of Owner for purposes of the Texas Margin Act, then (a) Owner and Manager intend Manager to be, and shall treat Manager as, a “management company” within the meaning of Section 171.0001(11) of the Texas Tax Code, and (b) Owner and Manager will apply Sections 171.1011(m-1) and 171.1013(f)-(g) of the Texas Tax Code to Owner’s reimbursements paid to Manager pursuant to this Agreement of specified costs and allocable wages and compensation.  If applicable, Owner and Manager further recognize and intend that as a result of the relationship created by this Agreement, reimbursements paid to Manager pursuant to this Agreement include (i) “flow‐through funds” that Manager is mandated by law or fiduciary duty to distribute, within the meaning of Section 171.1011(f) of the Texas Tax Code, and (ii) “flow-through funds” that Manager is mandated by contract to distribute, within the meaning of Section 171.1011(g).  If applicable, the terms of this Agreement shall be interpreted in a manner consistent with the characterization of Manager as a “management 

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company” as defined in Section 171.0001(11), and with the characterization of the reimbursements as “flow-through funds” within the meaning of Section 171.1011(f)-(g) of the Texas Tax Code.
2.3    General Duties.  Manager shall devote its commercially reasonable efforts to performing its duties hereunder to manage, operate, maintain and lease the Properties in a diligent, careful and vigilant manner.  The services of Manager are to be of scope and quality not less than those generally performed by professional property managers of other similar properties in that geographic area.  Manager shall make available to Owner the full benefit of the judgment, experience and advice of the members of Manager’s organization and staff with respect to the policies to be pursued by Owner relating to the operation and leasing of the Properties.
2.4    Specific Duties.  In addition to the specific authority granted to Manager by Owner pursuant to Article III of this Agreement, Manager’s duties include the following:
(a)    Lease Obligations.  Manager shall perform all duties of the landlord under all Leases insofar as such duties relate to operation, maintenance, and day-to-day management.  Manager shall also provide or cause to be provided, at Owner’s expense, all services normally provided to tenants of like premises, including where applicable, gas, electricity or other utilities required to be furnished to commercial tenants, repairs and maintenance necessary to preserve the Properties in their respective present conditions (normal wear and tear excepted) and for the operating efficiency thereof, and cleaning and janitorial service.  Manager shall arrange for and supervise the performance of all installations and improvements in space leased to any tenant that are either expressly required under the terms of the Lease of such space or that are customarily provided to commercial tenants.
(b)    Maintenance.  Manager shall cause the Properties to be maintained in a manner consistent with, or substantially similar to, the manner in which similar rental properties in that geographic region are maintained.  Manager’s duties and supervision in this respect shall include cleaning the interior and the exterior of the Improvements and making or supervising the repair, alterations and decoration of the Improvements, subject to and in strict compliance with this Agreement and the Leases.  Construction activities undertaken by Manager, if any, shall be limited to activities related to the management, operation, maintenance, and leasing of the Properties (e.g., repairs, renovations and leasehold improvements), including planning and coordinating the construction of any tenant-paid improvements.
(c)    Leasing Functions.  Manager shall coordinate the leasing of the Properties and shall negotiate and use its commercially reasonable efforts to secure executed Leases from what Manager believes are qualified tenants, and to execute same on behalf of Owner, if requested, for available space in the Properties, such Leases to be in form and on terms approved by Owner and Manager.  Manager shall be responsible for hiring all duly qualified and licensed leasing agents, as necessary for the leasing of the Properties, and for otherwise overseeing and managing the leasing process on behalf of Owner.

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(d)    Notice of Violations.  Manager shall forward to Owner promptly upon receipt all written notices of violation or other written notices from any governmental authority, and board of fire underwriters or any insurance company, and shall make such recommendations regarding compliance with any such notice as Manager believes is appropriate.
(e)    Ownership Agreements.  Manager has received copies of, and will be provided with copies in the future of any changes to or new loan agreements, deeds of trust or mortgages and similar agreements or instruments Articles of Incorporation, Agreements of Limited Partnership, Joint Venture Partnership Agreements and Operating Agreements, each as may be amended from time to time, of Owner, as applicable (the “Ownership Agreements”) and is and will be familiar with the terms thereof.  Manager shall use reasonable care to avoid any act or omission that, in the performance of its duties hereunder, shall in any way conflict with the terms of Ownership Agreements.
(f)    Personnel.  Any personnel hired by Manager to maintain, operate and lease each Property shall be the employees or independent contractors of Manager and not of Owner of such Property, BH OP or BH Opportunity REIT.  Manager shall use due care in the selection and supervision of such employees or independent contractors.  Manager shall be responsible for the preparation of and shall timely file all payroll tax reports and timely make payments of all withholding and other payroll taxes with respect to each employee.
(g)    Utilities and Supplies.  Manager shall enter into or renew contracts for electricity, gas, steam, landscaping, fuel, oil, maintenance and other services as are customarily furnished or rendered in connection with the operation of similar rental property in the area.
(h)    Expenses.  Manager shall analyze all bills received for services, work and supplies in connection with maintaining and operating the Properties, pay all such bills when due, and, if requested by Owner, pay, when due, utility and water charges, sewer rent and assessments, and any other amount payable in respect to the Properties.  All bills shall be paid by Manager within the time required to obtain discounts, if any.  Owner may from time to time request that Manager forward certain bills to Owner promptly after receipt, and Manager shall comply with any such request.  Manager shall pay all bills, assessments, real property taxes, insurance premiums and any other amount payable in respect to the Properties out of the Account (as defined in Section 2.5).  All expenses shall be billed at net cost (i.e., less all rebates, commissions, discounts and allowances, however designated).
(i)    Monies Collected.  Manager shall timely collect all rent and other monies, in the form of a check or money order, from tenants and any sums otherwise due Owner with respect to the Properties in the ordinary course of business.  Owner authorizes Manager to request, demand, collect and provide receipt for all such rent and other monies and to institute legal proceedings in the name of Owner for the collection thereof and for the dispossession of any tenant in default under its Lease.

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2.5    Banking Accommodations.  Manager shall establish and maintain a separate checking account (the “Account”) for funds relating to the Properties.  All monies deposited from time to time in the Account shall be deemed to be trust funds and shall be and remain the property of Owner and shall be withdrawn and disbursed by Manager for the account of Owner only as expressly permitted by this Agreement.  No monies collected by Manager on Owner’s behalf shall be commingled with funds of Manager.  The Account shall be maintained, and monies shall be deposited therein and withdrawn therefrom, in accordance with the following:
(a)    All sums received from rents and other income from the Properties shall be promptly deposited by Manager in the Account.  Manager shall have the right to designate two or more persons who shall be authorized to draw against the Account, but only for purposes authorized by this Agreement.
(b)    All sums due to Manager hereunder, whether for compensation, reimbursement for expenditures, or otherwise, as herein provided, shall be a charge against the operating revenues of the Properties and shall be paid and/or withdrawn by Manager from the Account prior to the making of any other disbursements therefrom.
(c)    By the 15th day after the end of each month, Manager shall forward to Owner all monies contained in the Account other than a reasonable reserve and any other amounts otherwise provided in the budget for the relevant property which shall remain in the Account.  
(d)    Signs.  Manager shall place and remove, or cause to be placed and removed, such signs upon the Properties as Manager deems appropriate, subject, however, to the terms and conditions of the Leases and to any applicable ordinances and regulations.
2.6    Approval of Leases, Contracts, Etc.  In fulfilling its duties to Owner, Manager may and hereby is authorized to enter into any leases, contracts or agreements on behalf of Owner in the ordinary course of the management, operation, maintenance and leasing of each Property.
2.7    Accounting, Records and Reports.
(a)    Records.  Manager shall maintain all office records and books of account and shall record therein, and keep copies of, each invoice received from services, work and supplies ordered in connection with the maintenance and operation of the Properties.  Such records shall be maintained on a double entry basis.  Owner and persons designated by Owner shall at all reasonable time have access to and the right to audit and make independent examinations of such records, books and accounts and all vouchers, files and all other material pertaining to the Properties and this Agreement, all of which Manager agrees to keep safe, available and separate from any records not pertaining to the Properties, at a place recommended by Manager and approved by Owner.

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(b)    Monthly Reports.  On or before the 15th day after the end of each month during the term of this Agreement, Manager shall prepare and submit to Owner the following reports and statements with respect to each Property:
		
	(i)
	rental collection record;

		
	(ii)
	monthly operating statement;

		
	(iii)
	copy of cash disbursements ledger entries for such period, if requested by Owner upon 15 days’ written notice;

		
	(iv)
	copy of cash receipts ledger entries for such period, if requested by Owner upon 15 days’ written notice;

		
	(v)
	the original copies of all contracts entered into by Manager on behalf of Owner during such period, if requested by Owner upon 15 days’ written notice; and

		
	(vi)
	copy of ledger entries for such period relating to security deposits maintained by Manager, if requested by Owner upon 15 days’ written notice.

(c)    Budgets and Leasing Plans.  Not later than November 15 of each calendar year, Manager shall prepare and submit to Owner for its approval an operating budget and a marketing and leasing plan on each Property for the calendar year immediately following such submission (each, an “Annual Budget”).  In connection with any acquisition of a Property by Owner, Manager shall prepare an Annual Budget for the remainder of the calendar year.  Each Annual Budget shall incorporate financial models and analysis prepared by Manager with respect to that property.  Each Annual Budget shall be in the form of the budget and plan approved by Owner prior to the date thereof.  As often as reasonably necessary during the period covered by any such budget, Manager may submit to Owner for its approval an updated Annual Budget incorporating any changes as shall be necessary to reflect cost over-runs and the like during that period.  If Owner does not disapprove any proposed Annual Budget within 30 days after receipt thereof by Owner, the Annual Budget shall be deemed approved.  If Owner shall disapprove any proposed Annual Budget, it shall so notify Manager within said 30-day period and explain the reasons therefor.  If Owner disapproves of any proposed Annual Budget, Manager shall submit a revised Annual Budget, as applicable, within 10 days of receipt of the notice of disapproval, and Owner shall have 10 days to provide notice to Manager if it disapproves of the revised Annual Budget.  If a proposed Annual Budget is not approved by December 31 of any calendar year,  Manager shall operate the applicable Property pursuant to the proposed Annual Budget for the following calendar year with respect to those portions approved by Owner and in accordance with the prior year’s Annual Budget with respect to those portions not approved by Owner (with the exception of (i) non-recurring expenditures and capital expenditures which shall be deemed 

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removed from the prior year’s Annual Budget, and (ii) actual increases for real estate taxes, which shall be deemed added to the prior year’s Annual Budget).

(d)    Additional Costs.  Manager will not incur any costs other than those included in, and only to the extent provided for (subject to reasonable deviation for changes in market costs), in any Annual Budget except for:

		
	(i)
	tenant improvements and real estate commissions required under a Lease;

		
	(ii)
	maintenance or repair costs under $5,000 per Property;

		
	(iii)
	costs incurred in emergency situations in which action is immediately necessary for the preservation or safety of each Property, or for the safety of occupants or other persons (or to avoid the suspension of any necessary service of each Property);

		
	(iv)
	expenditures for real estate taxes and assessment; and

		
	(v)
	maintenance supplies calling for an aggregate purchase price less than $25,000 per annum for all Properties.

Annual Budgets prepared by Manager shall be for planning and informational purposes only, and Manager shall have no liability to Owner for any failure to meet any Annual Budget.  However, Manager will use commercially reasonable efforts to operate within the approved Annual Budget.

(e)    Legal Requirements.  Manager shall execute and file when due all forms, reports, and returns required by law relating to the employment of its personnel.  Manager shall be responsible for notifying Owner in the event Manager receives notice that any Improvement on a Property or any equipment therein does not comply with the requirements of any statute, ordinance, law or regulation of any governmental body or of any public authority or official thereof having or claiming to have jurisdiction thereover.  Manager shall promptly forward to Owner any complaints, warnings, notices or summonses received by it relating to such matters.  Owner represents that to the best of its knowledge each of its Properties and any equipment thereon will upon acquisition by Owner comply with all such requirements.  Owner authorizes Manager to disclose the ownership of each Property by Owner to any such officials.  Owner agrees to indemnify, protect, defend, save and hold Manager, its Affiliates and their respective stockholders, officers, directors, employees, managers, agents, representatives, successors and assigns (collectively, “Manager Indemnified Parties”) harmless of and from any and all Losses (as defined in Section 3.6(a)) that may be imposed on them or any or all of them by reason of the failure of Owner to correct any present or future violation or alleged violation of any and all present or future laws, ordinances, statutes, or regulations of any 

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public authority or official thereof, having or claiming to have jurisdiction thereover, of which it has actual notice.
2.8    Dealings with Advisor.  Unless Owner specifically informs Manager to the contrary, Advisor may perform under this Agreement any of the obligations or exercise any of the rights of Owner.
ARTICLE III
 
AUTHORITY GRANTED TO MANAGER AND CERTAIN OWNER OBLIGATIONS
3.1    Authority As To Tenants, Etc.  Owner agrees and does hereby give Manager the following exclusive authority and powers (all of which shall be exercised either in the name of Manager, as manager for Owner, or in the name or Owner entered into by Manager as Owner’s authorized agent, and Owner shall assume all expenses in connection with such matters):
(a)    to advertise each Property or any part thereof and to display signs thereon, as permitted by law;
(b)    to lease the Properties to tenants;
(c)    to pay all expenses of leasing each Property, including newspaper and other advertising, signage, banners, brochures, referral commissions, leasing commissions, finder’s fees and salaries, bonuses and other compensation of leasing personnel responsible for the leasing of each Property;
(d)    to cause references of prospective tenants to be investigated, it being understood and agreed by the parties hereto that Manager does not guarantee the creditworthiness or collectability of accounts receivable from tenants, users or lessees; and to negotiate new Leases and renewals and cancellations of existing Leases that shall be subject to Manager obtaining Owner’s approval;
(e)    to collect from tenants all or any of the following:  a late rent administrative charge, a non-negotiable check charge, credit report fee, a subleasing administrative charge and/or broker’s commission; and Manager need not account for such charges and/or commission to Owner;
(f)    to terminate tenancies and to sign and serve in the name of Owner of each Property such notices as are deemed necessary by Manager;
(g)    to institute and prosecute actions to evict tenants and to recover possession of each Property or portions thereof; and
(h)    with Owner’s authorization, to sue for and in the name of Owner and recover rent and other sums due; and to settle, compromise, and release such actions or suits, or reinstate such tenancies.  All expenses of litigation, including attorneys’ fees, 

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filing fees, and court costs that Manager shall incur in connection with the collecting of rent and other sums, or to recover possession of any Property or any portion thereof, shall be deemed to be an operational expense of each Property.  Manager and Owner shall concur on the selection of the attorneys to handle such litigation.
3.2    Operational Authority.  Owner agrees and does hereby give Manager the following exclusive authority and powers (all of which shall be exercised either in the name of Manager, as manager for Owner, or in the name of Owner entered into by Manager as Owner’s authorized agent, and Owner shall assume all expenses in connection with such matters):
(a)    to hire, supervise, discharge, and pay all labor required for the operation and maintenance and leasing of each Property including but not limited to on-site personnel, managers, assistant managers, leasing consultants, engineers, janitors, maintenance supervisors and other employees required for the operation and maintenance of each Property, including personnel spending a portion of their working hours (to be charged on a pro rata basis) at each Property. All expenses of these employees’ employment shall be deemed operational expenses of the Property.
(b)    to make or cause to be made all ordinary repairs and replacements necessary to preserve each Property in its present condition and for the operating efficiency thereof and all alterations required to comply with lease requirements, and to decorate each Property;
(c)    to negotiate and enter into, as Manager of each Property, (i) contracts for all items on budgets that have been approved by Owner, (ii) any emergency services, (iii) repairs for items not exceeding $5,000, (iv) appropriate service agreements and labor agreements for normal operation of each Property, which have terms not to exceed three years, (v) agreements for all budgeted maintenance, minor alterations, and utility services, including, but not limited to, electricity, gas, fuel, water, telephone, window washing, scavenger service, landscaping, snow removal, pest exterminating, decorating and legal services in connection with the Leases and service agreements relating to each Property, and (vi) other services or such of them as Manager may consider appropriate; and
(d)    to purchase supplies and pay all bills.
Manager shall use commercially reasonable efforts to obtain the foregoing services and utilities for each Property under terms that are as cost-effective and otherwise favorable to Manager as possible for the quality of services and utilities required.  Owner hereby appoints Manager as Owner’s authorized Manager for the purpose of executing, as Manager for said Owner, all such contracts.  In addition, Owner agrees to specifically assume in writing all obligations under all such contracts so entered into by Manager, on behalf of Owner of each Property, upon the termination of this Agreement, and Owner shall indemnify, protect, save, defend and hold Manager and the other Manager Indemnified Parties harmless from and against any and all Losses resulting from, arising out of or in any way related to such contracts and that relate to or concern matters occurring after termination of this Agreement, but excluding matters 

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arising out of Manager’s willful misconduct, gross negligence and/or unlawful acts (such unlawfulness having been adjudicated by a court of proper jurisdiction).  Manager shall secure the approval of, and execution of appropriate contracts by, Owner for any non-budgeted and non-emergency/contingency capital items, alterations or other expenditures in excess of $5,000 for any one item, securing for each item at least three written bids, if practicable, or providing evidence satisfactory to Owner that the contract amount is lower than industry standard pricing in the geographic region in which the Property is located, from responsible contractors.  Manager shall have the right from time to time during the term hereof, to contract with and make purchases from Affiliates of Manager, provided that contract rates and prices are competitive with other available sources.  Manager may at any time and from time to time request and receive the prior written authorization of Owner of the Property of any one or more purchases or other expenditures, notwithstanding that Manager may otherwise be authorized hereunder to make such purchases or expenditures.
3.3    Rent and Other Collections.  Owner agrees and does hereby give Manager the exclusive authority and powers (all of which shall be exercised either in the name of Manager, as manager for Owner, or in the name or Owner entered into by Manager as Owner’s authorized agent, and Owner shall assume all expenses in connection with such matters) to collect rents and/or assessments and other items, including tenant payments for real estate taxes, property liability and other insurance, damages and repairs, common area maintenance, tax reduction fees and all other tenant reimbursements, administrative charges, proceeds of rental interruption insurance, parking fees, income from coin operated machines and other miscellaneous income, due or to become due and give receipts therefor and to deposit all such Gross Revenue collected hereunder in the Account.  Manager may endorse any and all checks received in connection with the operation of any Property and drawn to the order of Owner, and Owner shall, upon request, furnish Manager’s depository with an appropriate authorization for Manager to make such endorsement.  Manager shall also have the exclusive authority to collect and handle tenants’ security deposits, including the right to apply such security deposits to unpaid rent, and to comply, on behalf of Owner of each Property, with applicable state or local laws concerning security deposits and interest thereon, if any.  
3.4    Advances.  Manager shall not be required to advance any monies for the care or management of any Property.  Owner agrees to advance all monies necessary therefor.  If Manager shall elect to advance any money in connection with a Property, Owner agrees to reimburse Manager within thirty (30) days and hereby authorizes Manager to deduct such advances from any monies due Owner.  In connection with any insured losses or damages relating to any Property, Manager shall have the exclusive authority to handle all steps necessary regarding any such claim; provided that Manager will not make any adjustments or settlements in excess of $10,000 without Owner’s prior written consent.
3.5    Payment of Expenses.  Owner agrees and does hereby give Manager the exclusive authority and power (all of which shall be exercised either in the name of Manager, as manager for Owner, or in the name or Owner entered into by Manager as Owner’s authorized agent, and Owner shall assume all expenses in connection with such matters) to pay all expenses of each Property from the Gross Revenue collected in accordance with Section 3.3, from the Account.  It 

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is understood that the Gross Revenue will be used first to pay the compensation to Manager as contained in Article V, then operational expenses and then any mortgage indebtedness, including real estate tax and insurance impounds, but only as directed by Owner in writing and only if sufficient Gross Revenue is available for such payments.  Nothing in this Agreement shall be interpreted in such a manner as to obligate Manager to pay from Gross Revenue, any expenses incurred by Owner prior to the commencement of this Agreement, except to the extent Owner advances additional funds to pay such expenses.
3.6    Certain Owner Indemnification Obligations.
(a)    On Termination.  In the event this Agreement is terminated for any reason prior to the expiration of its original term or any renewal term, Owner shall indemnify, protect, defend, save and hold Manager and the other Manager Indemnified Parties harmless from and against any and all charges, claims, causes of action, demands, suits, proceedings, losses, damages, liabilities, taxes, deficiencies, judgments, interest, awards, liens, penalties, fines, costs or expenses of whatever kind, including reasonable attorneys’ fees and the cost of successfully enforcing any right to indemnification hereunder, (collectively, “Losses”), that are imposed on or incurred by Manager by reason of the willful misconduct, gross negligence and/or unlawful acts (such unlawfulness having been adjudicated by a court of proper jurisdiction) of Owner.
(b)    Property Damage, Etc.  Owner agrees to indemnify, defend, protect, save and hold Manager and Manager Indemnified Parties harmless from any and all Losses in connection with or in any way related to each Property and from liability for damage to each Property and injuries to or death of any person whomsoever, and damage to property; provided, however, that such indemnification shall not extend to any such Losses arising out of the willful misconduct, gross negligence and/or unlawful acts (such unlawfulness having been adjudicated by a court of proper jurisdiction) of Manager or any of the other Manager Indemnified Parties.  Manager shall not be liable for any error of judgment or for any mistake of fact or law, or for anything that it may do or refrain from doing, except in cases of willful misconduct, gross negligence and/or unlawful acts (such unlawfulness having been adjudicated by a court of proper jurisdiction).
3.7    Environmental Matters.  Owner hereby warrants and represents to Manager that to the best of Owner’s knowledge, no Property, upon acquisition by Owner, nor any part thereof, will be used to treat, deposit, store, dispose of or place any hazardous substance that may subject Manager to liability or claims under the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42 U.S.C.A. Section 9607) or any constitutional provision, statute, ordinance, law, or regulation of any governmental body or of any order or ruling of any public authority or official thereof, having or claiming to have jurisdiction thereover.  Furthermore, Owner agrees to indemnify, protect, defend, save and hold Manager and all of the other Manager Indemnified Parties from any and all Losses involving, concerning or in any way related to any past, current or future allegations regarding treatment, depositing, storage, disposal or placement by any party other than Manager of hazardous substances on each Property.

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3.8    Legal Status of Properties.  Owner represents that, to the best of its knowledge, each Property and any equipment thereon does comply, or when acquired by Owner, will comply with all legal requirements and authorizes Manager to disclose the identity of the Owner of each Property to any such officials and agrees to indemnify, protect, defend, save and hold Manager and the other Manager Indemnified Parties harmless of and from any and all Losses that may be imposed on them or any of them by reason of the failure of Owner to correct any present or future violation or alleged violation of any and all present or future laws, ordinances, statutes, or regulations of any public authority or official thereof, having or claiming to have jurisdiction thereover, of which it has actual notice.  In the event it is alleged or charged that any Improvement or any equipment on a Property or any act or failure to act by Owner with respect to the Property or the sale, rental, or other disposition thereof fails to comply with, or is in violation of, any of the requirements of any constitutional provision, statute, ordinance, law, or regulation of any governmental body or any order or ruling of any public authority or official thereof having or claiming to have jurisdiction thereover, and Manager, in its sole and absolute discretion, considers that the action or position of Owner, with respect thereto may result in damage or liability to Manager, Manager shall have the right to cancel this Agreement at any time by written notice to Owner of its election so to do, which cancellation shall be effective upon the service of such notice.  Such cancellation shall not release the indemnities of Owner set forth in this Agreement and shall not terminate any liability or obligation of Owner to Manager for any payment, reimbursement, or other sum of money then due and payable to Manager hereunder.
3.9    Extraordinary Payments.  Owner agrees to give adequate advance written notice to Manager if Owner desires that Manager make any extraordinary payment, out of Gross Revenue, to the extent funds are available after the payment of Manager’s compensation as provided for herein and all operational expenses, of mortgage indebtedness, general taxes, special assessments, or fire, boiler or any other insurance premiums.
ARTICLE IV
 
EXPENSES
4.1    Owner’s Expenses.  Except as otherwise specifically provided, all costs and expenses incurred hereunder by Manager in fulfilling its duties to Owner shall be for the account of and on behalf of Owner.  Such costs and expenses shall include the wages and salaries and other employee-related expenses of all on-site and off-site employees of Manager who are engaged in the operation, management, maintenance and leasing or access control of the Properties, including taxes, insurance and benefits relating to such employees, costs of technology related to the Properties, including computers, telephone systems and property management and accounting software and any upgrades or conversions thereof, and legal, travel and other out-of-pocket expenses that are directly related to the management of specific Properties.  All costs and expenses for which Owner is responsible under this Agreement shall be paid by Manager out of the Account.  In the event the Account does not contain sufficient funds to pay all said expenses, Owner promptly shall fund all sums necessary to meet such additional costs and expenses.

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4.2    Manager’s Expenses.  Manager shall, out of its own funds, pay all of its general overhead and administrative expenses.
ARTICLE V

MANAGER’S COMPENSATION
5.1    Management Fees.  Owner shall pay Manager property management and leasing fees in an amount equal to four and one-half percent (4.5%) of Gross Revenues (the “Management Fee”) on a monthly basis from the rental income received from the Properties over the term of this Agreement.  Certain of these Properties may be owned by Joint Ventures.  When Manager is not paid by the Joint Venture directly in respect of its services, the compensation to be paid by the Owner to Manager will be calculated by multiplying the Management Fee by the Economic Interest Percentage owned directly or indirectly by the Owner in that Property.  In the event that Owner contracts directly with a third-party property manager not affiliated with Manager in respect of a Property for which the Owner, in its sole discretion, has the ability to appoint or hire Manager as property manager, Owner shall pay Manager an oversight fee (“Oversight Fee”) equal to one-half of one percent (0.50%) of Gross Revenues of such Property to compensate Manager for transition services to coordinate and align the systems and policies of the third-party property manager with those of Manager.  In no event will Owner pay both a Management Fee and an Oversight Fee to Manager with respect to any Property.  If Manager subcontracts its responsibilities hereunder to another Person, Manager shall be solely responsible for the payment to the applicable third party.  Manager’s compensation under this Section 5.1 shall apply to all renewals, extensions or expansions of Leases that Manager has originally negotiated.  In the event Manager assists with planning and coordinating the construction of any tenant-paid finish-out or improvements, Manager shall be entitled to receive from any such tenant an amount equal to not greater than five percent (5.0%) of the cost of such tenant improvements.  The Management Fee includes the reimbursement of the specified cost incurred by Manager of engaging another person or entity to perform Manager’s responsibilities hereunder; provided, however, that Manager shall be responsible for payment of all amounts to these third parties.  Nothing herein shall prevent Manager from entering fee-splitting arrangements with third parties with respect to the Management Fee.
5.2    Leasing Fees.  In addition to the compensation paid to Manager under Section 5.1, Manager shall be entitled to receive a separate fee for the Leases of new tenants and renewals of Leases with existing tenants in an amount not to exceed the fee customarily charged in arm’s length transactions by others rendering similar services in the same geographic area for similar properties as determined by a survey of brokers and agents in such area.
5.3    Audit Adjustment.  If any audit of the records, books or accounts relating to the Properties discloses an overpayment or underpayment of Management Fees, Owner or Manager shall promptly pay to the other party the amount of such overpayment or underpayment, as the case may be.  If such audit discloses an overpayment of Management Fees for any fiscal year of more than the correct Management Fees for such fiscal year, Manager shall bear the cost of such audit.

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ARTICLE VI

INSURANCE AND INDEMNIFICATION
6.1    Insurance to be Carried.
(a)    Manager shall obtain and keep in full force and effect insurance on the Properties against such hazards as Owner and Manager shall deem appropriate, but in any event insurance sufficient to comply with the Leases and Ownership Agreements shall be maintained.  All liability policies shall provide sufficient insurance satisfactory to both Owner and Manager and shall contain waivers of subrogation for the benefit of Manager.
(b)    Manager shall obtain and keep in full force and effect, in accordance with the laws of the state in which each Property is located, employer’s liability insurance applicable to and covering all employees of Manager at the Properties and all persons engaged in the performance of any work required hereunder, and Manager shall furnish Owner certificates of insurers naming Owner as a co-insured and evidencing that such insurance is in effect.  If any work under this Agreement is subcontracted as permitted herein, Manager shall include in each subcontract a provision that the subcontractor shall also furnish Owner with such a certificate.
6.2    Insurance Expenses.  Premiums and other expenses of such insurance, as well as any applicable payments in respect of deductibles shall be borne by Owner.
6.3    Cooperation with Insurers.  Manager shall cooperate with and provide reasonable access to the Properties to representatives of insurance companies and insurance brokers or agents with respect to insurance that is in effect or for which application has been made.  Manager shall use commercially reasonable efforts to comply with all requirements of insurers.
6.4    Accidents and Claims.  Manager shall promptly investigate and shall report in detail to Owner all accidents, claims for damage relating to ownership, operation or maintenance of the Properties, and any damage or destruction to the Properties and the estimated costs of repair thereof, and shall prepare for approval by Owner all reports required by an insurance company in connection with any such accident, claim, damage, or destruction.  Such reports shall be given to Owner promptly, and any report not so given within ten (10) days after the occurrence of any such accident, claim, damage or destruction shall be noted in the monthly operating statement delivered to Owner pursuant to Section 2.6(b).  Manager is authorized to settle any claim against an insurance company arising out of any policy and, in connection with such claim, to execute proofs of loss and adjustments of loss and to collect and receipt for loss proceeds.
6.5    Indemnification.  
(a)    Indemnification of Manager. Owner shall indemnify, defend, protect, save and hold harmless Manager and the other Manager Indemnified Parties, from and against 

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any and all Losses in connection with or in any way related to (i) any Contract, (ii) each Property, including any past, current or future allegations regarding treatment, depositing, storage, disposal or placement by any Person other than Manager of hazardous substances on the Property, and from liability for damage to each Property and injuries to or death of any person whomsoever, and damage to Property, (iii) the willful misconduct, gross negligence or unlawful acts (such unlawfulness having been adjudicated by a court of proper jurisdiction) of Owner, or the failure of Owner to correct any present or future violation or alleged violation of any and all present or future laws, ordinances, statutes or regulations of any public authority or official thereof, having or claiming to have jurisdiction thereover, of which it has actual notice, and (iv) any matter, act or omission occurring prior to the date hereof relating to, in connection with, or in respect of, Owner or any of its Affiliates or any of their respective businesses, assets or properties (including any claim or litigation asserted or instigated by a third party); provided, however, that the indemnification and exculpation shall not extend to any such Losses arising out of the willful misconduct, gross negligence or unlawful acts (the unlawfulness having been adjudicated by a court of proper jurisdiction) of Manager, its agents, servants, or employees; provided further, however, that to the extent that Manager recovers insurance proceeds with respect to any matter for which a Manager Indemnified Party is entitled to indemnification, then the amount payable to such Manager Indemnified Party under this Section 6.5 in respect of such matter shall be reduced by the amount of such recovered insurance proceeds.  Manager shall not be liable for any error of judgment or for any mistake of fact or law, or for any thing that it may do or refrain from doing, except in cases of willful misconduct, gross negligence or unlawful acts (the unlawfulness having been adjudicated by a court of proper jurisdiction). In addition, Owner shall advance funds to any Manager Indemnified Party for reasonable legal fees and other reasonable costs and expenses incurred as a result of any claim, suit, action or proceeding for which indemnification is being sought; provided, however, that such Manager Indemnified Party undertakes to repay the advanced funds to Owner, together with the applicable legal rate of interest thereon, in cases in which such Manager Indemnified Party is found pursuant to a final and non-appealable order or judgment to not be entitled to indemnification.
 
(b)Indemnification of Owner.  Manager shall indemnify, defend, protect, save and hold harmless Owner, its Affiliates and their respective stockholders, officers, directors, employees, managers, agents, representatives, successors and assigns, from any and all claims or liability for any injury or damage to any person or property whatsoever for which Manager is responsible occurring in, on, or about the Properties, including the Improvements, when the injury or damage shall be caused by the willful misconduct, gross negligence or unlawful acts (the unlawfulness having been adjudicated by a court of proper jurisdiction) of Manager, its agents, servants or employees, except to the extent that Owner recovers insurance proceeds with respect to such matter.

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ARTICLE VII

TERM AND TERMINATION
7.1    Term.  This Agreement shall commence on the date first above written and shall continue until the fifth anniversary of such date and thereafter for successive one (1) year renewal periods, unless on or before the date that is ninety (90) days prior to the expiration of any such period, either party shall notify the other party in writing that it elects to have this Agreement terminated, in which case this Agreement shall be thereby terminated on the date last above mentioned.  Notwithstanding the foregoing, this Agreement shall automatically terminate as to any specific Property upon its sale or other transfer of ownership to a Person other than Owner or an Affiliate of Owner and shall terminate in its entirety upon the sale of the final Property subject to this Agreement.  Any termination of this Agreement shall not affect (a) any rights or obligations accrued to any party prior to termination (subject to any offsetting claims for damages), including payment of property management fees earned to the date of termination, or (b) the provisions of Sections 2.7, 3.6, 3.7, 3.8, 6.5, 8.4 and 8.5, which shall survive any such termination.  In addition, any party may terminate this Agreement immediately upon the occurrence of a decree or order rendered by a court having jurisdiction (i) adjudging Manager as bankrupt or insolvent, (ii) approving as properly filed a petition seeking reorganization, readjustment, arrangement, composition or similar relief for Manager under the federal bankruptcy laws or any similar applicable law or practice, or (iii) appointing a receiver or liquidator or trustee or assignee in bankruptcy or insolvency of Manager or a substantial part of the property of Manager, or for the winding up or liquidation of its affairs.
7.2    Manager’s Obligations Upon Termination.  Upon the termination of this Agreement, including termination as to any specific Property upon its sale or other transfer of ownership to a Person other than Owner or an Affiliate of Owner, Manager shall have the following duties:
(a)    Manager shall deliver to Owner or its designee, all books and records with respect to the applicable Property or Properties.
(b)    Manager shall transfer and assign to Owner, or its designee, all service contracts and personal property relating to or used in the operation and maintenance of the applicable Property or Properties, except personal property paid for and owned by Manager.  Manager shall also, for a period of sixty (60) days immediately following the date of such termination, make itself available to consult with and advise Owner, or its designee, regarding the operation, maintenance and leasing of the applicable Property or Properties.
(c)    Manager shall render to Owner an accounting of all funds of Owner in its possession and shall deliver to Owner a statement of all Management Fees claimed to be due to Manager and shall cause funds of Owner held by Manager relating to the applicable Property or Properties to be paid to Owner or its designee.

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(d)    All provisions of this Agreement that require Manager to protect, defend, save, hold and indemnify or to reimburse Owner shall survive any expiration or termination of this Agreement and, if Owner is or becomes involved in any claim, proceeding or litigation by reason of having been Owner, such provisions shall apply as if this Agreement were still in effect.
7.3    Owner’s Obligations Upon Termination.  Upon the termination of this Agreement, Owner shall cooperate with Manager and take all reasonable steps to make an orderly transition of the Manager’s services to Owner, including without limitation:
(a)Owner shall pay or reimburse Manager for any sums of money due it under this Agreement for services and expenses prior to the termination of this Agreement.  The parties understand and agree that Manager may withhold funds for 60 days after the end of the month in which this Agreement is terminated to pay bills previously incurred but not yet invoiced and to close accounts. Should the funds withheld be insufficient to meet the obligation of Manager to pay bills previously incurred, Owner will, upon demand, advance sufficient funds to Manager to ensure fulfillment of Manager’s obligation to do so, within 10 days of receipt of notice and an itemization of such unpaid bills.
 
(b)Owner shall assume in writing all obligations under all Contracts entered into by Manager, on behalf of Owner of the Property, upon the termination of this Agreement.
 
(c)All provisions of this Agreement that require Owner to protect, defend, save, hold and indemnify or to reimburse Manager shall survive any expiration or termination of this Agreement, and, if Manager is or becomes involved in any claim, proceeding or litigation by reason of having been Manager, such provisions shall apply as if this Agreement were still in effect.

7.4    Effectiveness.  This Agreement shall be effective as of the date hereof; provided, however, that with respect to each Delayed Consent Owner, this Agreement shall be effective with respect to such Delayed Consent Owner as of the date the applicable approval or consent pertaining to the Property or Properties owned by such Delayed Consent Owner has been received or waived by Manager.
ARTICLE VIII
 
MISCELLANEOUS
8.1    Notices.  All notices, consents, approvals, waivers or other communications (each, a “Notice”) required or permitted hereunder, except as herein otherwise specifically provided, shall be in writing and shall be:  (a) delivered personally or by commercial messenger; (b) sent via a recognized overnight courier service; (c) sent by registered or certified mail, postage pre-paid and return receipt requested; or (d) sent by facsimile transmission, provided confirmation of 

19

receipt is received by sender and the original Notice is sent or delivered contemporaneously by an additional method provided in this Section 8.1; in each case so long as such Notice is addressed to the intended recipient thereof as set forth below.  Any party may change its address specified above by giving each party Notice of such change in accordance with this Section 8.1.  Any Notice shall be deemed given upon actual receipt (or refusal of receipt). 
	
		
	Owner:
	Behringer Harvard Opportunity OP I, LP 
c/o Behringer Harvard Opportunity REIT I, Inc. 
1985 Cedar Bridge Avenue, Suite 1 
Lakewood, New Jersey 08701 
Attention:  Joseph E. Teichman, Esq.
                  General Counsel and Secretary

	With a copy to:
	Steven J. Kaplan 
Steven J. Kaplan, P.C. 
5910 Stoneshire Court 
Dallas, Texas 75248
Robert H. Bergdolt, Esq. 
DLA Piper LLP 
4141 Parklake Avenue 
Suite 300 
Raleigh, North Carolina 27612-2350

	Manager:
	LSG-BH I Property Manager LLC 
1985 Cedar Bridge Avenue, Suite 1 
Lakewood, New Jersey 08701 
Attention:  Joseph E. Teichman, Esq.
                  General Counsel and Secretary

	With a copy to:
	Proskauer Rose LLP
Eleven Times Square 
New York, New York 10036 
Attention:  Peter M. Fass, Esq.
                  James M. Gerkis, Esq.

8.2    Governing Law; Venue.  This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York, and any action brought to enforce the agreements made hereunder or any action which arises out of the relationship created hereunder shall be brought exclusively in any of the federal or state courts located in the Borough of Manhattan in New York City.
8.3    Assignment.  Manager may assign or delegate partially or in full its duties and rights under this Agreement and the fees and compensation related thereto to a duly qualified and licensed Affiliate of Manager without the approval of Owner.  Any other assignment or delegation by Manager of its duties and rights under this Agreement may be made only with the prior written consent of Owner.  Owner acknowledges and agrees that any or all of the duties of Manager as contained herein may be assigned or delegated by Manager and performed by a duly qualified and licensed Person (“Submanager”) with whom Manager contracts for the purpose of performing such duties.  Owner specifically grants Manager the authority to enter into such a contract with a Submanager; provided that, unless Owner otherwise agrees in writing with such 

20

Submanager, Owner shall have no liability or responsibility to any such Submanager for the payment of the Submanager’s fee or for reimbursement to the Submanager of its expenses or to indemnify the Submanager in any manner for any matter; and provided further that Manager shall require such Submanager to agree, in the written agreement setting forth the duties and obligations of such Submanager, to indemnify Owner for all Losses incurred by Owner as a result of the willful misconduct or gross negligence of the Submanager, except that such indemnity shall not be required to the extent that Owner recovers issuance proceeds with respect to such matter.  Any contract entered into between Manager and a Submanager pursuant to this Section 8.3 shall be consistent with the provisions of this Agreement, except to the extent Owner otherwise specifically agrees in writing.  This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns.
8.4    Third-Party Leasing Services.  Manager acknowledges that from time to time Owner may determine that it is in the best interests of Owner to retain a third party to provide certain leasing services with respect to certain Properties and to compensate such third party for such leasing services.  Upon the prior written consent of Manager, Owner shall have the authority to enter into such a contract for leasing services with a third party (a “Third-Party Leasing Agreement”); provided, however, that Manager shall have no liability or responsibility to Owner for any of the duties and obligations undertaken by such party, and Owner agrees to indemnify the Manager Indemnified Parties for all Losses incurred by Manager as a result of acts of such third party pursuant to the Third-Party Leasing Agreement.  To the extent that leasing services are specifically required to be performed by a third party pursuant to such Third-Party Leasing Agreement, Manager shall have no obligation to perform such leasing services and Owner shall have no obligation to Manager for leasing fees pursuant to Section 5.2.
8.5    Third-Party Management Services.  Manager acknowledges that from time to time Owner may acquire interests in Properties in which Owner does not control the determination of the party that is engaged to provide property management and other services to be provided by Manager with respect to all Properties acquired by Owner hereunder.  Upon the prior written consent of Manager, Owner shall have the authority to acquire such interests in Properties for which a third party provides some or all of the services otherwise required to be performed by Manager hereunder (a “Third-Party Management Agreement”); provided, however, that Manager shall have no liability or responsibility to Owner for any of the duties and obligations undertaken by such third party, and Owner shall indemnify and hold harmless the Manager Indemnified Parties, from and against all Losses incurred by any of them as a result of the acts of such third party pursuant to the Third-Party Management Agreement.  To the extent that property management and other services are specifically required to be performed by a third party pursuant to such Third-Party Management Agreement, Manager shall have no obligation to perform such services and Owner shall have no obligation to Manager for compensation for such services pursuant to Article V.  Manager hereby consents to any Third-Party Management Agreements existing as of the date hereof, which are described on Schedule C attached hereto.  
8.6    No Waiver.  The failure of Owner to seek redress for violation or to insist upon the strict performance of any covenant or condition of this Agreement shall not constitute a waiver thereof for the future.

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8.7    Amendments.  Except as this Agreement is amended by a Property Amendment, this Agreement may be amended or supplemented only by an instrument in writing signed by the parties hereto.
8.8    Headings.  The headings of the various subdivisions of this Agreement are for reference only and shall not define or limit any of the terms or provisions hereof.
8.9    Counterparts.  This Agreement may be executed with counterpart signatures in two or more counterparts, each of which shall be deemed an original, and it shall not be necessary in making proof of this Agreement to produce or account for more than one such counterpart.
8.10    Entire Agreement.  This Agreement (including the Property Amendments) contains the entire understanding and all agreements between Owner and Manager respecting the management of the Properties.  There are no representations, agreements, arrangements or understandings, oral or written, between Owner and Manager relating to the management of the Properties that are not fully expressed herein.
8.11    Disputes.  If there shall be a dispute between Owner and Manager relating to this Agreement resulting in litigation, the prevailing party in such litigation shall be entitled to recover from the other party to such litigation such amount as the court shall fix as reasonable attorneys’ fees.
8.12    Activities of Manager.  The obligations of Manager pursuant to the terms and provisions of this Agreement shall not be construed to preclude Manager from engaging in other activities or business ventures, whether or not such other activities or ventures are in competition with Owner or the business of Owner.
8.13    Independent Contractor.  Manager and Owner shall not be construed as joint venturers or partners of each other pursuant to this Agreement, and neither shall have the power to bind or obligate the other except as set forth herein.  In all respects, the status of Manager to Owner under this Agreement is that of an independent contractor.
8.14    No Third-Party Rights.  Nothing expressed or referred to in this Agreement will be construed to give any Person other than the parties to this Agreement any legal or equitable right, remedy or claim under or with respect to this Agreement or any provision of this Agreement, except such rights as shall inure to any Person entitled to indemnification under Sections 2.7, 3.6, 3.7, 3.8, 6.5, 8.4 and 8.5 and to a successor or permitted assignee pursuant to Section 8.3.
8.15    Ownership of Proprietary Property.  Manager retains ownership of and reserves all Intellectual Property Rights in the Proprietary Property.  To the extent that Owner has or obtains any claim to any right, title or interest in the Proprietary Property, including without limitation in any suggestions, enhancements or contributions that Owner may provide regarding the Proprietary Property, Owner hereby assigns and transfers exclusively to Manager all right, title and interest, including without limitation all Intellectual Property Rights, free and clear of 

22

any liens, encumbrances or licenses in favor of Owner or any other party, in and to the Proprietary Property.  In addition, at Manager’s expense, Owner will perform any acts that may be deemed desirable by Manager to evidence more fully the transfer of ownership of right, title and interest in the Proprietary Property to Manager, including but not limited to the execution of any instruments or documents now or hereafter requested by Manager to perfect, defend or confirm the assignment described herein, in a form determined by Manager.
8.16    The Lightstone Name. The Manager and its Affiliates have or may have a proprietary interest in the name “Lightstone”.  The Manager hereby grants to Owner, to the extent of any proprietary interest the Manager may have in the name “Lightstone”, a non-transferable, non-assignable, non-exclusive, royalty-free right and license to use the name “Lightstone” during the term of this Agreement. Owner agrees that the Manager and its Affiliates will have the right to approve any use by Owner of the name “Lightstone”, such approval not to be unreasonably withheld or delayed. Accordingly, and in recognition of this right, if at any time Owner ceases to retain the Manager or one of its Affiliates to perform services for Owner, Owner will, promptly after receipt of a written request from the Manager, cease to conduct business under or use the name “Lightstone” or any derivative thereof and Owner shall change its name and the names of any of its subsidiaries to a name that does not contain the name “Lightstone” or any other word or words that might, in the reasonable discretion of the Manager, be susceptible of indication of some form of relationship between Owner and the Manager or any its Affiliates. At such time, Owner also will make any changes to any trademarks, servicemarks or other marks necessary to remove any references to the word “Lightstone”.  Consistent with the foregoing, it is specifically recognized that the Manager or one or more of its Affiliates has in the past and may in the future organize, sponsor or otherwise permit to exist other investment vehicles (including vehicles for investment in real estate) and financial and service organizations having the name “Lightstone” as a part of their name, all without the need for any consent (and without the right to object thereto) by Owner. Neither the Manager nor any of its Affiliates makes any representation or warranty, express or implied, with respect to the name “Lightstone” licensed hereunder or the use thereof (including, without limitation, as to whether the use of the name “Lightstone” will be free from infringement of the intellectual property rights of third parties). Notwithstanding the preceding, the Manager represents and warrants that it is not aware of any pending claims or litigation or of any claims threatened in writing regarding the use or ownership of the name “Lightstone”.
8.17    Non-Solicitation.  During the period commencing on the date on which this Agreement is entered into and ending one year following the termination of this Agreement, Owner shall not, without Manager’s prior written consent, directly or indirectly, (a) solicit or encourage any person to leave the employment or other service of Manager or its affiliates, or (b) hire, on behalf of Owner or any other person or entity, any person who has within the prior year left his or her employment with Manager or its affiliates.  During the period commencing on the date hereof through and ending one year following the termination of this Agreement, Owner shall not, whether for its own account or for the account of any other person, firm, corporation or other business organization, intentionally interfere with the relationship of Manager or its affiliates with, or endeavor to entice away from Manager or its affiliates, any person who during the term of the Agreement is, or during the preceding one-year period was, a customer of 

23

Manager its affiliates.  Notwithstanding the foregoing, the obligations of Owner under this section shall be waived and shall not apply in the following circumstances:
(i)     (A) Manager files for a voluntary petition under Title 11 of the United States Code, 11 U.S.C. §101, et seq., as amended from time to time, or any successor statute or statutes (the “Bankruptcy Code”) Code or any other Federal or state bankruptcy, receivership or insolvency law; or (B) an involuntary petition is filed against Manager under the Bankruptcy Code or any other Federal or state bankruptcy, receivership or insolvency law, and such petition or proceeding has not been dismissed or terminated within sixty (60) days of such filing; or
(ii)    in the event Manager either (A) terminates this Agreement pursuant to Section 7.1 because Manager is no longer in the business of providing property management services or (B) materially breaches its obligations to provide the services set forth herein, and such material breach continues uncured for fifteen (15) business days after the date Owner has given Manager written notice of such material breach pursuant to Section 8.1.
8.18    Rules of Construction.  The headings herein are for convenience only, do not constitute a part of this Agreement.  The recitals constitute an integral part of this Agreement and hereby are incorporated by reference in this Section 8.18.  This Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Agreement. Whenever the words “include”, “includes”, “including” or “such as” are used in this Agreement, they shall be deemed to be followed by the words “, but not limited to,”, whether or not they are in fact followed by those words or words of like import.
[The remainder of this page has been intentionally left blank]

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IN WITNESS WHEREOF, the parties have executed this Third Amended and Restated Property Management and Leasing Agreement as of the date first above written.
BEHRINGER HARVARD OPPORTUNITY REIT I, INC.
		
	By:
	/s/ Steven j. Kaplan     
Name: Steven J. Kaplan 
Title: Chairman of the Board

BEHRINGER HARVARD OPPORTUNITY OP I, LP
		
	By:
	BHO, Inc., 
its general partner

		
	By:
	/s/ Thomas P. Kennedy     
Name: Thomas P. Kennedy 
Title: President

[Signature Page to the Property Management and Leasing Agreement]

	
			
	 
	LSG-BH I PROPERTY MANAGER LLC

	 
	 

	 
	 

	 
	By:
	 /s/ David Lichtenstein

	 
	Name: David Lichtenstein

	 
	Title: Authorized Signatory

[Signature Page to the Property Management and Leasing Agreement]

BEHRINGER HARVARD NORTHPOINT LP

By:    Behringer Harvard Northpoint GP, LLC,
its general partner

By: s/ Thomas P. Kennedy            
Name:  Thomas P. Kennedy
Title:  President

BEHRINGER HARVARD CORDILLERA, LLC

By: s/ Thomas P. Kennedy                
Name:  Thomas P. Kennedy
Title:  President

CHASE PARK PLAZA HOTEL, LLC

By: s/ Thomas P. Kennedy                
Name:  Thomas P. Kennedy
Title:  President
 

WCW MULTIFAMILY HOLDINGS LLC

By: s/ Thomas P. Kennedy                
Name:  Thomas P. Kennedy
Title:  President

BEHRINGER HARVARD FRISCO SQUARE LP

By:  BP-FS GP, LLC,
its general partner

By: s/ Thomas P. Kennedy                
Name:  Thomas P. Kennedy
Title:  President

[Signature Page to the Property Management and Leasing Agreement]

 SCHEDULE A

Current Owners and Properties

	
		
	Owner
	Property

	Chase Park Plaza Hotel, LLC
	Chase Park

	Behringer Harvard Cordillera, LLC
	Cordillera

	WCW Multifamily Holdings LLC
	Ablon at Frisco Square

 

SCHEDULE B

Delayed Consent Owners and Properties

	
		
	Owner
	Property

	Behringer Harvard Northpoint LP
	Northpoint

	Behringer Harvard Frisco Square LP
	Frisco Square

SCHEDULE C

Existing Third-Party Management Agreements

Frisco Square Multifamily & Ablon at Frisco Square – Portico
Chase Park & Cordillera – Pyramid

EXHIBIT A
Form of Property Amendment

Reference is hereby made to the Property Management and Leasing Agreement dated as of [   ], 2017, among BEHRINGER HARVARD OPPORTUNITY REIT I, INC., a Maryland corporation, BEHRINGER HARVARD OPPORTUNITY OP I, LP, a Texas limited partnership, the Existing Owners, LSG-BH I PROPERTY MANAGER LLC, a Delaware limited liability company, and the other parties thereto (as the same may be amended or amended and restated from time to time, the “Management Agreement”). Capitalized terms used herein and not otherwise defined shall have the meanings assigned to them in the Management Agreement. 
	
					
	Property Description:
	 

	 
	 

	 

	 
	 

	Legal Name of Owner:
	 

	 

	Jurisdiction of Organization/Incorporation:
	 

	 

	Services to be Provided (if other than in Management Agreement):

	 

	 
	 

	 
	 

	 
	 

	 
	 

	 
	 

	 

	Alterations to basic terms and conditions of Management Agreement (if any):

	 

	 
	 

	 
	 

	 
	 

	 
	 

	 
	 

 The undersigned hereby agrees that upon the execution of this Property Amendment, it shall become a party to the Management Agreement as an Owner and shall be fully bound by, and subject to, all the agreements, covenants, terms and conditions of the Management Agreement as an Owner as though an original party thereto.

A-1

	
						
	 Manager:
	LSG-BH I Property Manager LLC

	 
	 

	 
	 

	 
	By:
	 

	 
	 

	 
	 

	 
	 

	 
	 

	Owner:
	 
	 

	 
	 

	 
	 

	 
	By:
	 
	 

	 
	 
	Name:
	 

	 
	 
	Title:
	 

 

A-2EXHIBIT
10.1

 

SECURITIES
PURCHASE AGREEMENT

 

This
SECURITIES PURCHASE AGREEMENT (the “Agreement”) is dated as of the 21st day of March 2017, by and between Imprimis
Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and each individual or entity named on the Schedule
of Buyers attached hereto (each such individual or entity, individually, a “Buyer” and all of such individuals
or entities, collectively, the “Buyers”).

 

RECITALS

 

A.
The Company has authorized the sale and issuance of up to an aggregate of 1,312,000 shares (the “Shares”) of
its common stock, par value $0.001 per share (the “Common Stock”), subject to adjustment by the Company’s
Board of Directors, or a committee thereof, for a purchase price of $2.40 per share.

 

B.
The offering and sale of the Shares (the “Offering”) are being made pursuant to (a) an effective Registration
Statement on Form S-3 (including the Prospectus contained therein (the “Base Prospectus”), File No. 333-198675,
the “Registration Statement”) filed by the Company with the Securities and Exchange Commission (the “Commission”)
and (b) a Prospectus Supplement (the “Prospectus Supplement” and together with the Base Prospectus, the “Prospectus”)
containing certain supplemental information regarding the Shares and terms of the Offering that will be filed with the Commission
and delivered to the Investor (or made available to the Investor by the filing by the Company of an electronic version thereof
with the Commission).

 

C.
Each Buyer acknowledges that the Offering is not being underwritten by National Securities Corporation, the placement agent named
in the Prospectus Supplement (the “Placement Agent”), and that there is no minimum offering amount.

 

AGREEMENT

 

NOW,
THEREFORE, in consideration of the premises and the mutual covenants of the parties hereinafter expressed and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto, each intending to be legally bound,
agree as follows:

 

ARTICLE
I

RECITALS,
EXHIBITS, SCHEDULES

 

The
foregoing recitals are true and correct and, together with the Schedules and Exhibits referred to hereafter, are hereby incorporated
into this Agreement by this reference.

 

    	 

    	 

    

 

ARTICLE
II

DEFINITIONS

 

For
purposes of this Agreement, except as otherwise expressly provided or otherwise defined elsewhere in this Agreement, or unless
the context otherwise requires, the capitalized terms in this Agreement shall have the meanings assigned to them in this Article
as follows:

 

2.1
“Affiliate” means any Person that, directly or indirectly through one or more intermediaries, controls or is
controlled by or is under common control with a Person as such terms are used in and construed under Rule 405 under the Securities
Act.

 

2.2
“Assets” means all of the properties and assets of the Company and its Operating Subs, whether real, personal
or mixed, tangible or intangible, wherever located, whether now owned or hereafter acquired.

 

2.3
“Claims” means any Proceedings, Judgments, Obligations, known threats, losses, damages, deficiencies, settlements,
assessments, charges, costs and expenses of any nature or kind.

 

2.4
“Consent” means any consent, approval, order or authorization of, or any declaration, filing or registration
with, or any application or report to, or any waiver by, or any other action (whether similar or dissimilar to any of the foregoing)
of, by or with, any Person, which is necessary in order to take a specified action or actions, in a specified manner and/or to
achieve a specific result.

 

2.5
“Contract” means any written or oral contract, agreement, order or commitment of any nature whatsoever, including,
any sales order, purchase order, lease, sublease, license agreement, services agreement, loan agreement, mortgage, security agreement,
guarantee, management contract, employment agreement, consulting agreement, partnership agreement, shareholders agreement, buy-sell
agreement, option, warrant, debenture, subscription, call or put.

 

2.6
“Encumbrance” means any lien, security interest, pledge, mortgage, easement, leasehold, assessment, tax, covenant,
restriction, reservation, conditional sale, prior assignment, or any other encumbrance, claim, burden or charge of any nature
whatsoever.

 

2.7
“Environmental Requirements” means all Laws and requirements relating to human, health, safety or protection
of the environment or to emissions, discharges, releases or threatened releases of pollutants, contaminants, or Hazardous Materials
in the environment (including, without limitation, ambient air, surface water, ground water, land surface or subsurface strata),
or otherwise relating to the treatment, storage, disposal, transport or handling of any Hazardous Materials.

 

2.8
“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated
thereunder.

 

2.9
“GAAP” means generally accepted accounting principles, methods and practices set forth in the opinions and
pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants, and statements and
pronouncements of the Financial Accounting Standards Board, the SEC or of such other Person as may be approved by a significant
segment of the U.S. accounting profession, in each case as of the date or period at issue, and as applied in the U.S. to U.S.
companies.

 

    	2 

    	 

    

 

2.10
“Governmental Authority” means any foreign, federal, state or local government, or any political subdivision
thereof, or any court, agency or other body, organization, group, stock market or exchange exercising any executive, legislative,
judicial, quasi-judicial, regulatory or administrative function of government.

 

2.11
“Hazardous Materials” means: (i) any petroleum or petroleum products, radioactive materials, asbestos in any
form that is or could become friable, urea formaldehyde foam insulation and transformers or other equipment that contain dielectric
fluid containing levels of polychlorinated biphenyls (PCB’s); (ii) any chemicals, materials, substances or wastes which
are now or hereafter become defined as or included in the definition of “hazardous substances,” “hazardous wastes,”
“hazardous materials,” “extremely hazardous wastes,” “restricted hazardous wastes,” “toxic
substances,” “toxic pollutants” or words of similar import, under any Law; and (iii) any other chemical, material,
substance, or waste, exposure to which is now or hereafter prohibited, limited or regulated by any Governmental Authority.

 

2.12
“Judgment” means any order, writ, injunction, fine, citation, award, decree, or any other judgment of any nature
whatsoever of any Governmental Authority.

 

2.13
“Law” means any provision of any law, statute, ordinance, code, constitution, charter, treaty, rule or regulation
of any Governmental Authority applicable to the Company.

 

2.14
“Leases” means all leases for real or personal property.

 

2.15
“Material Adverse Effect” means with respect to the event, item or question at issue, that such event, item
or question would not have or reasonably be expected to result in: (i) a material adverse effect on the legality, validity or
enforceability of this Agreement; (ii) a material adverse effect on the results of operations, Assets, business or condition (financial
or otherwise) of the Company and its subsidiaries, taken as a whole; or (iii) a material adverse effect on the Company’s
or its subsidiaries’ ability to perform, on a timely basis, its or their respective Obligations under this Agreement.

 

2.16
“Material Contract” means any Contract to which the Company is a party or by which it is bound which has been
filed or is required to have been filed as an exhibit to the SEC Filings pursuant to Item 601(b)(4) or Item 601(b)(10) of Regulation
S-K promulgated by the SEC.

 

2.17
“Obligation” means any debt, liability or obligation of any nature whatsoever, whether secured, unsecured,
recourse, nonrecourse, liquidated, unliquidated, accrued, absolute, fixed, contingent, ascertained, unascertained, known, unknown
or obligations under executory Contracts.

 

2.18
“Operating Sub” shall have the meaning given in Section 6.1.

 

2.19
“Ordinary Course of Business” means the ordinary course of business consistent with past custom and practice
(including with respect to quantity, quality and frequency).

 

    	3 

    	 

    

 

2.20
“Permit” means any license, permit, approval, waiver, order, authorization, right or privilege of any nature
whatsoever, granted, issued, approved or allowed by any Governmental Authority.

 

2.21
“Person” means any individual, sole proprietorship, joint venture, partnership, company, corporation, association,
cooperation, trust, estate, Governmental Authority, or any other entity of any nature whatsoever.

 

2.22
“Principal Trading Market” shall mean the Nasdaq Global Select Market, the Nasdaq Global Market, the Nasdaq
Capital Market, the OTC Markets, including the Bulletin Board and Pink Sheets, the NYSE Euronext or the New York Stock Exchange,
whichever is at the time the principal trading exchange or market for the Common Stock.

 

2.23
“Proceeding” means any demand, claim, suit, action, litigation, investigation, audit, study, arbitration, administrative
hearing, or any other proceeding of any nature whatsoever.

 

2.24
“Real Property” means any real estate, land, building, structure, improvement, fixture or other real property
of any nature whatsoever, including, but not limited to, fee and leasehold interests.

 

2.25
“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

2.26
“Tax” means (i) any foreign, federal, state or local income, profits, gross receipts, franchise, sales, use,
occupancy, general property, real property, personal property, intangible property, transfer, fuel, excise, accumulated earnings,
personal holding company, unemployment compensation, social security, withholding taxes, payroll taxes, or any other tax of any
nature whatsoever, (ii) any foreign, federal, state or local organization fee, qualification fee, annual report fee, filing fee,
occupation fee, assessment, rent, or any other fee or charge of any nature whatsoever, or (iii) any deficiency, interest or penalty
imposed with respect to any of the foregoing.

 

2.27
“Tax Return” means any tax return, filing, declaration, information statement or other form or document required
to be filed in connection with or with respect to any Tax.

 

ARTICLE
III

INTERPRETATION

 

In
this Agreement, unless the express context otherwise requires: (i) the words “herein,” “hereof” and “hereunder”
and words of similar import refer to this Agreement as a whole and not to any particular provision of this Agreement; (ii) references
to the words “Article” or “Section” refer to the respective Articles and Sections of this Agreement, and
references to “Exhibit” or “Schedule” refer to the respective Exhibits and Schedules annexed hereto; (iii)
references to a “party” mean a party to this Agreement and include references to such party’s permitted successors
and permitted assigns; (iv) references to a “third party” mean a Person not a party to this Agreement; (v) the terms
“dollars” and “$” means U.S. dollars; (vi) wherever the word “include,” “includes”
or “including” is used in this Agreement, it will be deemed to be followed by the words “without limitation.”

 

    	4 

    	 

    

 

ARTICLE
IV

PURCHASE
AND SALE

 

4.1
Sale and Issuance of Shares. Subject to the terms and conditions of this Agreement, each Buyer agrees, severally and not
jointly, to purchase, and the Company agrees to sell and issue to each Buyer, the number of Shares set forth in the column designated
“Number of Shares” opposite such Buyer’s name on the Schedule of Buyers at a cash purchase price of $2.40 per
Share (the “Purchase Price”). The Company’s agreement with each Buyer is a separate agreement, and the
sale and issuance of the Shares to each Buyer is a separate sale and issuance.

 

4.2
Closing. At 11:00 a.m., New York City time, on or before March 27, 2017, or at such other time on such other date as may
be agreed upon by the Company and the Placement Agent (such date of delivery and payment is hereinafter referred to as the “Closing
Date”), at the office of Golenbock Eiseman Assor Bell & Peskoe LLP, 711 Third Avenue, New York, New York 10017 (or
at such other place as agreed upon by the Placement Agent and the Company), each Buyer shall wire an amount equal to the Purchase
Price multiplied by the number of Shares being purchased by such Buyer to an account designated by the Company and the Company
shall deliver the Shares to the Buyers, which delivery shall be made through the facilities of The Depository Trust Company. The
Shares shall be registered in such name or names and shall be in such denominations in accordance with the instructions delivered
by each Buyer to the Company at least one business day before the Closing Date.

 

ARTICLE
V

BUYERS’
REPRESENTATIONS AND WARRANTIES

 

Each
Buyer severally represents and warrants to the Company, that:

 

5.1
Investment Purpose. The Buyer is acquiring the Shares for its own account for investment only and not with a view towards,
or for resale in connection with, the public sale or distribution thereof, except pursuant to sales registered or exempted under
the Securities Act.

 

5.2
Accredited Investor/Institutional Account Status. The Buyer is an “accredited investor” as that term is defined
in Rule 501(a) of Regulation D, as promulgated under the Securities Act. Furthermore, the Buyer is either (i) a bank, savings
and loan association, insurance company or registered investment company; (ii) an investment adviser registered either with the
Commission under Section 203 of the Investment Advisers Act or with a state securities commission (or any agency or office performing
like functions); or (iii) any other person (whether a natural person, corporation, partnership, trust or otherwise) with total
assets of at least $50 million.

 

    	5 

    	 

    

 

5.3
Information. The Buyer and its advisors, if any, have been furnished with all materials relating to the business, finances
and operations of the Company and other information the Buyer deemed material to making an informed investment decision regarding
its purchase of the Shares, which have been requested by such Buyer. The Buyer acknowledges that it has received and reviewed
a copy of the Base Prospectus and the SEC Documents. The Buyer and its advisors, if any, have been afforded the opportunity to
ask questions of the Company and its management. The Buyer understands that its investment in the Shares involves a high degree
of risk. Neither such inquiries, nor any other due diligence investigations conducted by any Buyer or its advisors, if any, or
its representatives, shall modify, amend or affect each Buyer’s right to rely on the Company’s and Operating Subs’
representations and warranties contained in Article VI below. The Buyer is in a position regarding the Company, which, based upon
employment, family relationship or economic bargaining power, enabled and enables such Buyer to obtain information from the Company
in order to evaluate the merits and risks of this investment. The Buyer has sought such accounting, legal and tax advice as it
has considered necessary to make an informed investment decision with respect to its acquisition of the Shares. Without limiting
the foregoing, the Buyer has carefully considered the potential risks relating to the Company and a purchase of the Shares, and
fully understands that the Shares are a speculative investment that involves a high degree of risk of loss of the Buyer’s
entire investment.

 

5.4
No Governmental Review. The Buyer understands that no United States Federal or state Governmental Authority has passed
on or made any recommendation or endorsement of the Shares, or the fairness or suitability of the investment in the Shares, nor
have such Governmental Authorities passed upon or endorsed the merits of the offering of the Shares.

 

5.5
Authorization, Enforcement. This Agreement has been duly and validly authorized, executed and delivered on behalf of the
Buyer and is a valid and binding agreement of the Buyer, enforceable in accordance with its terms, except as such enforceability
may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and
other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies.

 

5.6
General Solicitation. The Buyer is not purchasing the Shares as a result of any advertisement, article, notice or other
communication regarding the Shares published in any newspaper, magazine or similar media or broadcast over television or radio
or presented at any seminar or any other general solicitation or general advertisement. The Buyer represents that it has a relationship
with the Placement Agent preceding its decision to purchase the Shares from the Company.

 

ARTICLE
VI

REPRESENTATIONS
AND WARRANTIES OF THE COMPANY

 

Except
as set forth and disclosed in the Company’s disclosure schedules (“Disclosure Schedules”) attached to
this Agreement and made a part hereof, the Company and Operating Sub each hereby makes the following representations and warranties
to the Buyers. The Disclosure Schedules shall be arranged in sections corresponding to the numbered and lettered sections and
subsections contained in this Article VI and certain other sections of this Agreement, and the disclosures in any section
or subsection of the Disclosure Schedules shall qualify other sections and subsections in this Article VI only to the extent
it is readily apparent from a reading of the disclosure that such disclosure is applicable to such other sections and subsections.

 

    	6 

    	 

    

 

6.1
Subsidiaries. Except for those subsidiaries set forth in Schedule 6.1 (each an “Operating Sub”),
the Company has no subsidiaries and the Company does not own, directly or indirectly, any outstanding voting securities of or
other interests in, or have any control over, any other Person. Except as set forth in Schedule 6.1, the Company wholly-owns
each Operating Sub. With respect to each Operating Sub, all representations and warranties in this Article VI and elsewhere in
this Agreement shall be deemed repeated and re-made from and by each Operating Sub, as if such representations and warranties
were independently made by each Operating Sub, in this Agreement (but modified as necessary in order to give effect to the intent
of the parties that such representation and warranty is being made by the Operating Sub, rather than the Company, as applicable).
In addition, each representation and warranty contained in this Article VI or otherwise set forth in this Agreement shall be deemed
to mean and be construed to include the Company and each of its subsidiaries, as applicable, regardless of whether each of such
representations and warranties in Article VI specifically refers to the Company’s subsidiaries or not.

 

6.2
Organization. The Company and its subsidiaries are corporations, duly organized, validly existing and in good standing
under the Laws of the jurisdiction in which they are incorporated. The Company has the full corporate power and authority and
all necessary certificates, licenses, approvals and Permits to: (i) enter into and execute this Agreement and to perform all of
its obligations hereunder; and (ii) own and operate its Assets and properties and to conduct and carry on its business as and
to the extent now conducted. The Company is duly qualified to transact business and is in good standing as a foreign corporation
in each jurisdiction where the character of its business or the ownership or use and operation of its Assets or properties requires
such qualification, except to the extent that failure to so qualify will not result in a Material Adverse Effect.

 

6.3
Authority and Approval of Agreement; Binding Effect. The execution and delivery by the Company of this Agreement, and the
performance by the Company of all of its obligations hereunder, including the issuance of the Shares, have been duly and validly
authorized and approved by the Company and its board of directors pursuant to all applicable Laws and no other corporate action
or Consent on the part of the Company, its board of directors, stockholders or any other Person is necessary or required by the
Company to execute this Agreement, consummate the transactions contemplated herein, perform all of Company’s obligations
hereunder, or to issue the Shares. This Agreement has been duly and validly executed by the Company (and the officer executing
this Agreement is duly authorized to act and execute same on behalf of the Company) and constitute the valid and legally binding
agreement of the Company, enforceable against the Company in accordance with its terms, except as such enforceability may be limited
by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar
laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies.

 

6.4
Capitalization. Immediately prior to the Closing, the authorized capital stock of the Company will consist of 90,000,000
shares of Common Stock, of which 18,627,915 shares of Common Stock are issued and outstanding. All of such outstanding shares
have been validly issued and are fully paid and nonassessable. The Common Stock is currently quoted on the Nasdaq Capital Market
under the trading symbol “IMMY.” The Company has received no notice, either oral or written, with respect to the continued
eligibility of the Common Stock for quotation on the Principal Trading Market, and the Company has maintained all requirements
on its part for the continuation of such quotation. Except as set forth on Schedule 6.4, no shares of Common Stock are
subject to preemptive rights or any other similar rights or any Encumbrances suffered or permitted by the Company. Except as set
forth on Schedule 6.4, as of the date hereof: (i) there are no outstanding options, warrants, scrip, rights to subscribe
to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, any shares of capital
stock of the Company or any of its subsidiaries, or Contracts, commitments, understandings or arrangements by which the Company
or any of its subsidiaries is or may become bound to issue additional shares of capital stock of the Company or any of its subsidiaries,
or options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities
or rights convertible into, any shares of capital stock of the Company or any of its subsidiaries; (collectively, “Derivative
Securities”); (ii) there are no outstanding debt securities, notes, credit agreements, credit facilities or other Contracts
or instruments evidencing indebtedness of the Company or any of its subsidiaries, or by which the Company or any of its subsidiaries
is or may become bound; (iii) there are no outstanding registration statements with respect to the Company or any of its securities
(other than registration statements on Form S-8); (iv) there are no agreements or arrangements under which the Company or any
of its subsidiaries is obligated to register the sale of any of their securities under the Securities Act (except pursuant to
this Agreement); (v) there are no financing statements securing obligations filed in connection with the Company or any of its
Assets; (vi) there are no securities or instruments containing anti-dilution or similar provisions that will be triggered by this
Agreement or any related agreement or the consummation of the transactions described herein or therein; and (vii) there are no
outstanding securities or instruments of the Company which contain any redemption or similar provisions, and there are no Contracts
by which the Company is or may become bound to redeem a security of the Company. Except as set forth on Schedule 6.4, there
are no stockholders agreements, voting agreements or other similar agreements with respect to the Company’s capital stock
to which the Company is a party or, to the knowledge of the Company, between or among any of the Company’s stockholders.

 

    	7 

    	 

    

 

6.5
No Conflicts; Consents and Approvals. The execution, delivery and performance of this Agreement and the consummation of
the transactions contemplated hereby will not: (i) constitute a violation of or conflict with any provision of the Company’s
or any Operating Sub’s certificate or articles of incorporation, bylaws or other organizational or charter documents; (ii)
constitute a violation of, or a default or breach under (either immediately, upon notice, upon lapse of time, or both), or conflict
with, or give to any other Person any rights of termination, amendment, acceleration or cancellation of, any provision of any
Material Contract; (iii) constitute a violation of, or a default or breach under (either immediately, upon notice, upon lapse
of time, or both), or conflict with, any Judgment; (iv) assuming the accuracy of the representations and warranties of the Buyers
set forth in Article V above, constitute a violation of, or conflict with, any Law (including United States federal and state
securities Laws and the rules and regulations of any market or exchange on which the Common Stock is quoted); or (v) result in
the loss or adverse modification of, or the imposition of any fine, penalty or other Encumbrance with respect to, any Permit granted
or issued to, or otherwise held by or for the use of, Company or any of Company’s Assets. The Company is not in violation
of its articles of incorporation, bylaws or other organizational or governing documents and the Company is not in default or breach
(and no event has occurred which with notice or lapse of time or both could put the Company in default or breach) under, and the
Company has not taken any action or failed to take any action that would give to any other Person any rights of termination, amendment,
acceleration or cancellation of, any Material Contract. Except as specifically contemplated by this Agreement, the Company is
not required to obtain any Consent of, from, or with any Governmental Authority, or any other Person, in order for it to execute,
deliver or perform any of its obligations under this Agreement in accordance with the terms hereof, or to issue and sell the Shares
in accordance with the terms hereof. All Consents which the Company is required to obtain pursuant to the immediately preceding
sentence have been obtained or effected on or prior to the date hereof.

 

6.6
Issuance of Shares. The Shares are duly authorized and, upon issuance in accordance with the terms hereof, shall be duly
issued, fully paid and non-assessable, and free from all Encumbrances with respect to the issue thereof, and, assuming the accuracy
of the representations and warranties of the Buyers set forth in Article V above, will be issued in compliance with all applicable
United States Federal and state securities Laws.

 

6.7
SEC Documents; Financial Statements. The Common Stock is registered pursuant to Section 12 of the Exchange Act and the
Company has timely filed all reports, schedules, forms, statements and other documents required to be filed by it with the Commission
under the Exchange Act (all of the foregoing filed within the two (2) years preceding the date hereof or amended after the date
hereof and all exhibits included therein and financial statements and schedules thereto and documents incorporated by reference
therein, being hereinafter referred to as the “SEC Documents”). The Company is current with its filing obligations
under the Exchange Act and all SEC Documents have been filed on a timely basis or the Company has received a valid extension of
such time of filing and has filed any such SEC Document prior to the expiration of any such extension. The Company represents
and warrants that true and complete copies of the SEC Documents are available on the SEC’s website (www.sec.gov)
at no charge to Buyers, and Buyers acknowledge that each of them may retrieve all SEC Documents from such website and each Buyer’s
access to such SEC Documents through such website shall constitute delivery of the SEC Documents to Buyers. As of their respective
dates, the SEC Documents complied in all material respects with the requirements of the Exchange Act, and none of the SEC Documents,
at the time they were filed with the SEC, contained any untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which
they were made, not misleading. None of the statements made in any such SEC Documents is, or has been, required to be amended
or updated under applicable Law (except as such statements have been amended or updated in subsequent filings prior to the date
hereof, which amendments or updates are also part of the SEC Documents). As of their respective dates, the financial statements
of the Company included in the SEC Documents (“Financial Statements”) complied in all material respects with
applicable accounting requirements and the published rules and regulations of the SEC with respect thereto (except as such Financial
Statements have been amended or updated in subsequent filings prior to the date hereof, which amendments or updates are also part
of the SEC Documents). All of the Financial Statements have been prepared in accordance with GAAP, consistently applied, during
the periods involved (except: (i) as may be otherwise indicated in such Financial Statements or the notes thereto; or (ii) in
the case of unaudited interim statements, to the extent they may exclude footnotes or may be condensed or summary statements),
and fairly present in all material respects the consolidated financial position of the Company as of the dates thereof and the
consolidated results of its operations and cash flows for the periods then ended (subject, in the case of unaudited statements,
to normal year-end audit adjustments). To the knowledge of the Company and its officers, no other information provided by or on
behalf of the Company to the Buyers which is not included in the SEC Documents contains any untrue statement of a material fact
or omits to state any material fact necessary in order to make the statements therein, in the light of the circumstance under
which they are or were made, not misleading.

 

    	8 

    	 

    

 

6.8
Absence of Certain Changes. Since the date the last of the SEC Documents was filed with the SEC, none of the following
have occurred:

 

(a)
There has been no event or circumstance of any nature whatsoever that has resulted in, or could reasonably be expected to result
in, a Material Adverse Effect; or

 

(b)
Except for this Agreement, there has been no transaction, event, action, development, payment, or other matter of any nature whatsoever
entered into by the Company that requires disclosure in an SEC Document which has not been so disclosed.

 

6.9
Absence of Litigation or Adverse Matters. Except as disclosed in the SEC Documents: (i) there is no Proceeding before or
by any Governmental Authority or any other Person, pending, or the best of Company’s knowledge, threatened or contemplated
by, against or affecting the Company, its business or Assets; (ii) there is no outstanding Judgments against or affecting the
Company, its business or Assets; and (iii) the Company is not in breach or violation of any Material Contract.

 

6.10
Liabilities of the Company. The Company does not have any Obligations of a nature required by GAAP to be disclosed on a
consolidated balance sheet of the Company, except: (i) as disclosed in the Financial Statements; or (ii) incurred in the Ordinary
Course of Business since the date of the last Financial Statements filed by the Company with the SEC that have not had, and would
not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

 

6.11
Title to Assets. The Company has good and marketable title to, or a valid license or leasehold interest in, all of its
Assets which are material to the business and operations of the Company as presently conducted, free and clear of all Encumbrances
or restrictions on the transfer or use of same, other than restrictions on transfer or use arising under a license or Lease with
respect to such Assets that, individually or in the aggregate, would not have, or be reasonably expected to, materially interfere
with the purposes for which they are currently used and for the purposes for which they are proposed to be used. Except as would
not have a Material Adverse Effect, the Company’s Assets are in good operating condition and repair, ordinary wear and tear
excepted, and are free of any latent or patent defects which might impair their usefulness, and are suitable for the purposes
for which they are currently used and for the purposes for which they are proposed to be used.

 

6.12
Real Estate.

 

(a)
Real Property Ownership. The Company does not own any Real Property.

 

    	9 

    	 

    

 

(b)
Real Property Leases. Except pursuant to the Leases described in the SEC Documents (the “Company Leases”),
the Company does not lease any Real Property. With respect to each of the Company Leases, except as set forth on Schedule 6.12,
(i) the Company has been in peaceful possession of the property leased thereunder and neither the Company nor, to the Company’s
knowledge, the landlord is in default thereunder; (ii) no waiver, indulgence or postponement of any of the Obligations thereunder
has been granted by the Company or landlord thereunder; and (iii) there exists no event, occurrence, condition or act known to
the Company which, upon notice or lapse of time or both, would be or could become a default thereunder or which could result in
the termination of the Company Leases, or any of them, or have a Material Adverse Effect on the business of the Company, its Assets
or its operations or financial results. The Company has not violated nor breached any provision of any such Company Leases, and
all Obligations required to be performed by the Company under any of such Company Leases have been fully, timely and properly
performed. If requested by any of the Buyers, the Company has delivered to such Buyers true, correct and complete copies of all
Company Leases, including all modifications and amendments thereto, whether in writing or otherwise. The Company has not received
any written or oral notice to the effect that any of the Company Leases will not be renewed at the termination of the term of
such Company Leases, or that any of such Company Leases will be renewed only at higher rents.

 

6.13
Material Contracts. An accurate, current and complete copy of each of the Material Contracts has been furnished to Buyers
and/or is readily available as part of the SEC Documents, and each of the Material Contracts constitutes the entire agreement
of the respective parties thereto relating to the subject matter thereof. Each of the Material Contracts is in full force and
effect and is a valid and binding Obligation of the parties thereto in accordance with the terms and conditions thereof. To the
knowledge of the Company and its officers, all Obligations required to be performed under the terms of each of the Material Contracts
by any party thereto have been fully performed by all parties thereto, and no party to any Material Contracts is in default with
respect to any term or condition thereof, nor has any event occurred which, through the passage of time or the giving of notice,
or both, would constitute a default thereunder or would cause the acceleration or modification of any Obligation of any party
thereto or the creation of any Encumbrance upon any of the Assets of the Company. Further, the Company has received no notice,
nor does the Company have any knowledge, of any pending or contemplated termination of any of the Material Contracts and, no such
termination is proposed or has been threatened, whether in writing or orally.

 

6.14
Compliance with Laws. Except as would not have a Material Adverse Effect, the Company is and at all times has been in material
compliance with all Laws. The Company has not received any notice that it is in violation of, has violated, or is under investigation
with respect to, or has been threatened to be charged with, any violation of any Law.

 

6.15
Intellectual Property. The Company owns or possesses adequate and legally enforceable rights or licenses to use all trademarks,
trade names, service marks, service mark registrations, service names, patents, patent rights, copyrights, inventions, licenses,
approvals, governmental authorizations, trade secrets and all other intellectual property rights necessary to conduct its business
as now conducted. The Company does not have any knowledge of any infringement by the Company of trademark, trade name rights,
patents, patent rights, copyrights, inventions, licenses, service names, service marks, service mark registrations, trade secret
or other intellectual property rights of others, and, to the knowledge of the Company, there is no Claim being made or brought
against, or to the Company’s knowledge, being threatened against, the Company regarding trademark, trade name, patents,
patent rights, invention, copyright, license, service names, service marks, service mark registrations, trade secret or other
intellectual property infringement; and the Company is unaware of any facts or circumstances which might give rise to any of the
foregoing.

 

    	10 

    	 

    

 

6.16
Labor and Employment Matters. The Company is not involved in any labor dispute or, to the knowledge of the Company, is
any such dispute threatened. To the knowledge of the Company and its officers, none of the Company’s employees is a member
of a union and the Company believes that its relations with its employees are good. To the knowledge of the Company and its officers,
the Company has complied in all material respects with all Laws relating to employment matters, civil rights and equal employment
opportunities.

 

6.17
Employee Benefit Plans. The Company is in compliance in all material respects with all presently applicable provisions
of the Employee Retirement Income Security Act of 1974, as amended, including the regulations and published interpretations thereunder
(“ERISA”); no “reportable event” (as defined in ERISA) has occurred with respect to any “pension
plan” (as defined in ERISA) for which the Company would have any liability; the Company has not incurred and does not expect
to incur liability under (i) Title IV of ERISA with respect to termination of, or withdrawal from, any “pension plan”
or (ii) Sections 412 or 4971 of the Internal Revenue Code of 1986, as amended, including the regulations and published interpretations
thereunder (the “Code”); and each “pension plan” for which the Company would have any liability
that is intended to be qualified under Section 401(a) of the Code is so qualified in all material respects and nothing has occurred,
whether by action or by failure to act, which would cause the loss of such qualification. To the Company’s knowledge, the
Company has promptly paid and discharged all Obligations arising under ERISA of a character which if unpaid or unperformed might
result in the imposition of an Encumbrance against any of its Assets or otherwise have a Material Adverse Effect.

 

6.18
Tax Matters. The Company has made and timely filed all Tax Returns required by any jurisdiction to which it is subject,
and each such Tax Return has been prepared in compliance with all applicable Laws, and all such Tax Returns are true and accurate
in all respects. Except and only to the extent that the Company has set aside on its books provisions reasonably adequate for
the payment of all unpaid and unreported Taxes, the Company has timely paid all Taxes shown or determined to be due on such Tax
Returns, except those being contested in good faith, and the Company has set aside on its books provision reasonably adequate
for the payment of all Taxes for periods subsequent to the periods to which such Tax Returns apply. There are no unpaid Taxes
in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company know of
no basis for any such claim. The Company has withheld and paid all Taxes to the appropriate Governmental Authority required to
have been withheld and paid in connection with amounts paid or owing to any Person. There is no Proceeding or Claim for refund
now in progress, pending or, to the Company’s knowledge, threatened against or with respect to the Company regarding Taxes.

 

6.19
Insurance. The Company is covered by valid, outstanding and enforceable policies of insurance which were issued to it by
reputable insurers of recognized financial responsibility, covering its properties, Assets and businesses against losses and risks
normally insured against by other corporations or entities in the same or similar lines of businesses as the Company is engaged
and in coverage amounts which are prudent and typically and reasonably carried by such other corporations or entities (the “Insurance
Policies”). Such Insurance Policies are in full force and effect, and all premiums due thereon have been paid. None
of the Insurance Policies will lapse or terminate as a result of the transactions contemplated by this Agreement. The Company
has complied with the provisions of such Insurance Policies. The Company has not been refused any insurance coverage sought or
applied for and the Company does not have any reason to believe that it will not be able to renew its existing Insurance Policies
as and when such Insurance Policies expire or to obtain similar coverage from similar insurers as may be necessary to continue
its business at a cost that would not materially and adversely affect the condition, financial or otherwise, or the earnings,
business or operations of the Company.

 

    	11 

    	 

    

 

6.20
Permits. The Company possesses all Permits necessary to conduct its business, and the Company has not received any notice
of, or is otherwise involved in any Proceedings relating to, the revocation or modification of any such Permits. All such Permits
are valid and in full force and effect and the Company is in material compliance with the respective requirements of all such
Permits.

 

6.21
Business Location. The Company has no office or place of business other than as identified in the SEC Documents and the
Company’s principal executive offices are located in San Diego, California. All books and records of the Company and other
material Assets of the Company are held or located at the offices and places of business identified in the SEC Documents.

 

6.22
Environmental Laws. The Company is and has at all times been in compliance in all material respects with any and all applicable
Environmental Requirements, and there are no pending Claims against the Company relating to any Environmental Requirements, nor
to the best knowledge of the Company, is there any basis for any such Claims.

 

6.23
Illegal Payments. Neither the Company, nor any director, officer, agent, employee or other Person acting on behalf of the
Company has, in the course of his actions for, or on behalf of, the Company: (i) used any corporate funds for any unlawful contribution,
gift, entertainment or other unlawful expenses relating to political activity; (ii) made any direct or indirect unlawful payment
to any foreign or domestic government official or employee from corporate funds; (iii) violated or is in violation of any provision
of the U.S. Foreign Corrupt Practices Act of 1977, as amended; or (iv) made any bribe, rebate, payoff, influence payment, kickback
or other unlawful payment to any foreign or domestic government official or employee.

 

6.24
Related Party Transactions. Except as disclosed in the SEC Documents, and except for arm’s length transactions pursuant
to which the Company makes payments in the Ordinary Course of Business upon terms no less favorable than the Company could obtain
from third parties, none of the officers, directors or employees of the Company, nor any stockholders who own, legally or beneficially,
five percent (5%) or more of the issued and outstanding shares of any class of the Company’s capital stock (each a “Material
Shareholder”), is presently a party to any transaction with the Company (other than for services as employees, officers
and directors), including any Contract providing for the furnishing of services to or by, providing for rental of real or personal
property to or from, or otherwise requiring payments to or from, any officer, director or such employee or Material Shareholder
or, to the best knowledge of the Company, any other Person in which any officer, director, or any such employee or Material Shareholder
has a substantial or material interest in or of which any officer, director or employee of the Company or Material Shareholder
is an officer, director, trustee or partner. There are no Claims or disputes of any nature or kind between the Company and any
officer, director or employee of the Company or any Material Shareholder, or, to the Company’s knowledge, between any of
them, relating to the Company and its business.

 

    	12 

    	 

    

 

6.25
Internal Accounting Controls. Except as set forth in the SEC Documents, the Company and each of its subsidiaries maintain
a system of internal accounting controls sufficient to provide reasonable assurance that: (i) transactions are executed in accordance
with management’s general or specific authorizations; (ii) transactions are recorded as necessary to permit preparation
of financial statements in conformity with GAAP and to maintain asset accountability; (iii) access to Assets is permitted only
in accordance with management’s general or specific authorization; and (iv) the recorded accountability for Assets is compared
with the existing Assets at reasonable intervals and appropriate action is taken with respect to any differences.

 

6.26
Acknowledgment Regarding Buyers’ Purchase of the Shares. The Company acknowledges and agrees that each Buyer is acting
solely in the capacity of an arm’s length purchaser with respect to this Agreement and the transactions contemplated hereby.
The Company further acknowledges that no Buyer is acting as a financial advisor or fiduciary of the Company (or in any similar
capacity) with respect to this Agreement and the transactions contemplated hereby and any advice given by any Buyer or any of
its representatives or agents in connection with this Agreement and the transactions contemplated hereby is merely incidental
to such Buyer’s purchase of the Shares. The Company further represents to each Buyer that the Company’s decision to
enter into this Agreement has been based solely on the independent evaluation by the Company and its representatives.

 

6.27
Listing and Maintenance Requirements. The Company’s Common Stock is registered pursuant to Section 12 of the Exchange
Act, and the Company has taken no action designed to, or which to the best of its knowledge is likely to have the effect of, terminating
the registration of the Common Stock under the Exchange Act, nor has the Company received any notification that the SEC is contemplating
terminating such registration.

 

6.28
Brokerage Fees. Except for the Placement Agent, there is no Person acting on behalf of the Company who is entitled to or
has any claim for any financial advisory, brokerage or finder’s fee or commission in connection with the execution of this
Agreement or the consummation of the transactions contemplated hereby. The Company has agreed to pay the Placement Agent a cash
amount equal to 6% of the gross proceeds from the sale of the Shares.

 

6.29
Filing and Effectiveness of Registration Statement. The Company meets the requirements for the use of Form S-3 and the
Registration Statement, including the Base Prospectus, and such amendments thereto as may have been required to the date of this
Agreement, has been prepared by the Company under the provisions of the Securities Act and the rules and regulations (collectively
referred to as the “Rules and Regulations”) of the Commission thereunder, has been filed with the Commission,
and has been declared effective by the Commission, and the Offering of the Shares complies with Rule 415 under the Securities
Act. The Prospectus Supplement to the Base Prospectus relating to the Shares and the Offering thereof will be filed promptly by
the Company with the Commission in accordance with Rule 424(b) of the Rules and Regulations.

 

    	13 

    	 

    

 

6.30
Compliance with Securities Act Requirements. (i) (A) At the time the Registration Statement initially became effective
(the “Effective Date”), (B) at the time of each amendment thereto for the purposes of complying with Section
10(a)(3) of the Securities Act (whether by post-effective amendment, incorporated report or form of prospectus) and (C) on the
Closing Date, the Registration Statement conformed and will conform in all material respects to the requirements of the Securities
Act and the Rules and Regulations and did not and will not include any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements therein not misleading; and (ii) (A) on the date
hereof, (B) at the time of filing the Base Prospectus and the Prospectus Supplement and (C) on the Closing Date, the Prospectus
will conform in all material respects to the requirements of the Securities Act and the Rules and Regulations, and will not include
any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading. The preceding sentence does not apply to statements
in or omissions from any such document based upon written information furnished to the Company by the Placement Agent, if any,
specifically for use therein.

 

6.31
Documents Incorporated by Reference. The documents that are incorporated by reference in the Base Prospectus and the Prospectus
Supplement or from which information is so incorporated by reference, when they became or become effective or were or are filed
with the Commission, as the case may be, complied or will comply in all material respects with the requirements of the Securities
Act or the Exchange Act, as applicable, and the Rules and Regulations; and any documents so filed and incorporated by reference
subsequent to the Effective Date shall, when they are filed with the Commission, comply in all material respects with the requirements
of the Securities Act or the Exchange Act, as applicable, and the Rules and Regulations.

 

ARTICLE
VII

COVENANTS

 

7.1
Filing of Prospectuses. The Company has filed or will file the Prospectus pursuant to and in accordance with Rule 424(b)
not later than the third business day following the earlier of the date it is first used or the date of this Agreement.

 

7.2
Continued Compliance with Securities Laws. If, at any time when a prospectus relating to the Shares is (or but for the
exemption in Rule 172 under the Act would be) required to be delivered under the Securities Act in connection with sales by the
Company to any Buyers (the “Prospectus Delivery Period”), any event occurs as a result of which the Prospectus
as then amended or supplemented would include an untrue statement of a material fact or omit to state any material fact necessary
to make the statements therein, in the light of the circumstances under which they were made, not misleading, or if it is necessary
at any time to amend the Registration Statement or supplement the Prospectus to comply with the Securities Act, the Company will
promptly notify the Placement Agent of such event and will promptly prepare and file with the Commission and furnish, at its own
expense, to the Placement Agent an amendment or supplement which will correct such statement or omission or an amendment which
will effect such compliance. During the Prospectus Delivery Period, the Company will file all documents required to be filed with
the Commission pursuant to Sections 13, 14 or 15 of the Exchange Act in the manner and within the time periods required by the
Exchange Act.

 

    	14 

    	 

    

 

7.3
Furnishing of Prospectuses. The Company will furnish to the Placement Agent copies of the Registration Statement, including
all exhibits, the Base Prospectus and Prospectus Supplement relating to the Shares, in each case as soon as available and in such
quantities as the Placement Agent reasonably request.

 

7.4
Use of Proceeds. The Company will use the net proceeds received in connection with the Offering of the Shares in the manner
described in the “Use of Proceeds” section of the Prospectus.

 

7.5
Absence of Manipulation. The Company will not take, directly or indirectly, any action designed to or that would constitute
or that might reasonably be expected to cause or result in, stabilization or manipulation of the price of any securities of the
Company to facilitate the sale or resale of the Shares.

 

7.6
Compliance with Sarbanes-Oxley Act. The Company will comply in all material respects with all applicable securities and
other laws, rules and regulations, including, without limitation, the Sarbanes-Oxley Act.

 

ARTICLE
VIII

CONDITIONS
PRECEDENT TO THE COMPANY’S OBLIGATIONS TO SELL

 

The
obligation of the Company hereunder to issue and sell the Shares to a Buyer at the Closing is subject to the satisfaction, at
or before the Closing Date, of each of the following conditions, provided that these conditions are for the Company’s sole
benefit and may be waived by the Company at any time in its sole discretion:

 

8.1
The Buyer shall have executed and delivered this Agreement to the Company.

 

8.2
The Buyer shall have paid the Purchase Price to the Company.

 

8.3
The Buyer’s representations and warranties shall be true and correct in all material respects as of the date when made and
as of the Closing Date as though made at that time (except for representations and warranties that speak as of a specific date),
and the Buyer shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions
required by this Agreement to be performed, satisfied or complied with by the Buyer at or prior to the applicable Closing Date.

 

8.4
The Company shall have obtained all governmental, regulatory or third party consents and approvals necessary for the sale of the
Shares.

 

    	15 

    	 

    

 

8.5
No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed
by any court or governmental authority of competent jurisdiction that prohibits the consummation of any of the transactions contemplated
by this Agreement.

 

8.6
Since the date of execution of this Agreement, no event or series of events shall have occurred that resulted, or could reasonably
be expected to result, in a Material Adverse Effect.

 

8.7
Trading in the Common Stock shall not have been suspended by the SEC or any Principal Trading Market (except for any suspensions
of trading of not more than one trading day solely to permit dissemination of material information regarding the Company) at any
time since the date of execution of this Agreement.

 

ARTICLE
IX

CONDITIONS
PRECEDENT TO A BUYER’S OBLIGATIONS TO PURCHASE

 

The
obligation of a Buyer hereunder to purchase the Shares at the Closing is subject to the satisfaction, at or before the Closing
Date, of each of the following conditions (in addition to any other conditions precedent elsewhere in this Agreement), provided
that these conditions are for the Buyer’s sole benefit and may be waived by the Buyer at any time in its sole discretion:

 

9.1
The Company shall have executed and delivered this Agreement to the Placement Agent.

 

9.2
The Company shall have delivered to Buyer the number of Shares that such Buyer is purchasing.

 

9.3
The representations and warranties of the Company and each of the Operating Subs shall be true and correct in all material respects
(except to the extent that any of such representations and warranties are already qualified as to materiality in Article VI above,
in which case, such representations and warranties shall be true and correct in all respects without further qualification) as
of the date when made and as of the Closing Date as though made at that time (except for representations and warranties that speak
as of a specific date) and the Company and each of the Operating Subs shall have performed, satisfied and complied in all material
respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with
by the Company and the Operating Subs at or prior to the Closing Date. The Placement Agent shall have received a certificate,
executed by the Chief Executive Officer or Chief Financial Officer of the Company, dated as of the Closing Date, to the foregoing
effect.

 

9.4
The Company shall have delivered to the Placement Agent a certificate evidencing the formation and good standing of the Company
and each Operating Sub in its jurisdiction of formation issued by the Secretary of State (or comparable office) of such jurisdiction
of formation as of a date within ten (10) days of the Closing Date.

 

9.5
The Company shall have delivered to the Placement Agent a certificate or other reasonably acceptable evidence evidencing the Company’s
qualification as a foreign corporation and good standing issued by the Secretary of State (or comparable office) of each jurisdiction
in which the Company conducts business and is required to so qualify, as of a date within twenty (20) days of the Closing Date.

 

    	16 

    	 

    

 

9.6
The Company shall have delivered to the Placement Agent a certificate, in the form acceptable to the Placement Agent, executed
by the Secretary of the Company dated as of the Closing Date, as to (i) the resolutions consistent with Section 6.3 as adopted
by the Company’s board of directors, and (ii) the Certificate of Incorporation and the Bylaws of the Company, each in effect
at the Closing.

 

9.7
The Company shall have delivered to the Placement Agent an opinion of counsel to the Company, as of the Closing Date, in a form
satisfactory to the Placement Agent and its counsel.

 

9.8
No event shall have occurred which could reasonably be expected to have a Material Adverse Effect.

 

ARTICLE
X

MATTERS
RELATING TO THE BUYERS

 

10.1
Independent Nature of Buyers’ Obligations and Rights. The obligations of each Buyer under this Agreement are several
and not joint with the obligations of any other Buyer, and no Buyer shall be responsible in any way for the performance of the
obligations of any other Buyer under this Agreement. The decision of each Buyer to purchase the Shares pursuant to this Agreement
has been made by each such Buyer independently of any other Buyer and independently of any information, materials, statements
or opinions as to the business, affairs, operations, assets, properties, liabilities, results of operations, condition (financial
or otherwise) or prospects of the Company or of its subsidiaries, if any, which may have been made or given by any other Buyer
or any of their respective officers, directors, principals, employees, agents, counsel or representatives (collectively, including
the Buyer in question, the “Buyer Representatives”). No Buyer Representative shall have any liability to any
other Buyer or the Company relating to or arising from any such information, materials, statements or opinions, if any. Each Buyer
acknowledges that no other Buyer has acted as agent for such Buyer in connection with making its investment hereunder and that
no Buyer will be acting as agent of such other Buyer in connection with monitoring its investment in the Shares or enforcing its
rights under this Agreement. Each Buyer shall be entitled to independently protect and enforce its rights, including, without
limitation, the rights arising out of this Agreement, and it shall not be necessary for any other Buyer to be joined as an additional
party in any Proceeding for such purpose. The Company and each of the Buyers acknowledge that, for reasons of administrative convenience
the Company has elected to provide each of the Buyers with the same Agreement for the purpose of closing a transaction with multiple
Buyers and not because it was required or requested to do so by any Buyer. In furtherance of the foregoing, and not in limitation
thereof, the Company and the Buyers acknowledge that nothing contained in this Agreement, and no action taken by any Buyer pursuant
thereto, shall be deemed to constitute any two or more Buyers as a partnership, an association, a joint venture or any other kind
of entity, or create a presumption that the Buyers are in any way acting in concert or as a group with respect to such obligations
or the transactions contemplated by this Agreement.

 

    	17 

    	 

    

 

10.2
Equal Treatment of Buyers. No consideration shall be offered or paid to any Buyer to amend or consent to a waiver or modification
of any provision of any of this Agreement, unless the same consideration is also offered to all of the other Buyers parties to
this Agreement.

 

ARTICLE
XI

TERMINATION

 

11.1
Termination. This Agreement may be terminated prior to Closing (i) by written agreement of a Buyer (as to itself but no
other Buyer) and the Company or (ii) by either the Company or a Buyer (as to itself but no other Buyer) upon written notice to
the other, if the Closing shall not have taken place by March 31, 2017; provided, that the right to terminate this Agreement under
this Section 11.1 shall not be available to any party whose failure to comply with its obligations under this Agreement
has been the cause of or resulted in the failure of the Closing to occur on or before such time.

 

11.2
Consequences of Termination. No termination of this Agreement shall release any party from any liability for breach by
such party of the terms and provisions of this Agreement.

 

ARTICLE
XII

MISCELLANEOUS

 

12.1
Notices. All notices of request, demand and other communications hereunder shall be addressed to the parties as follows:

 

	If
    to the Company:	Imprimis
    Pharmaceuticals, Inc.
	 	12264
    El Camino Real, Suite 350
	 	San
    Diego, California 92130
	 	Attention:
    Mark L. Baum
	 	Email:
    mark@imprimispharma.com
	 	Facsimile:
    (858) 345-1743
	 	 
	With
    a copy to:	Golenbock
    Eiseman Assor Bell & Peskoe LLP
	 	711
    Third Avenue
	 	New
    York, New York 10017
	 	Attention:
    Andrew D. Hudders
	 	Email:
    ahudders@golenbock.com
	 	Facsimile:
    (212) 818-8881
	 	 
	If to the Buyers:	To
    each Buyer based on the information set forth in the Schedule of Buyers attached hereto

 

unless
the address is changed by the party by like notice given to the other parties. Notice shall be in writing and shall be deemed
delivered: (i) if mailed by certified mail, return receipt requested, postage prepaid and properly addressed to the address below,
then three (3) business days after deposit of same in a regularly maintained U.S. Mail receptacle; or (ii) if mailed by Federal
Express, UPS or other nationally recognized overnight courier service, next business morning delivery, then one (1) business day
after deposit of same in a regularly maintained receptacle of such overnight courier; or (iii) if hand delivered, then upon hand
delivery thereof to the address indicated on or prior to 5:00 p.m., New York time, on a business day. Any notice hand delivered
after 5:00 p.m., New York time, shall be deemed delivered on the following business day. Notwithstanding the foregoing, notice,
consents, waivers or other communications referred to in this Agreement may be sent by facsimile, e-mail, or other method of delivery,
but shall be deemed to have been delivered only when the sending party has confirmed (by reply e-mail or some other form of written
confirmation from the receiving party) that the notice has been received by the other party.

 

    	18 

    	 

    

 

12.2
Entire Agreement. This Agreement, including the Schedules attached hereto and the documents delivered pursuant hereto set
forth all the promises, covenants, agreements, conditions and understandings between the parties hereto with respect to the subject
matter hereof and thereof, and supersede all prior and contemporaneous agreements, understandings, inducements or conditions,
expressed or implied, oral or written, except as contained herein; provided, however, except as explicitly stated herein, nothing
contained in this Agreement shall (or shall be deemed to) (i) have any effect on any agreements any Buyer has entered into with,
or any instruments any Buyer has received from, the Company prior to the date hereof with respect to any prior investment made
by such Buyer in the Company or (ii) waive, alter, modify or amend in any respect any obligations of the Company, or any rights
of or benefits to any Buyer or any other Person, in any agreement entered into prior to the date hereof between or among the Company
and any Buyer, or any instruments any Buyer received from the Company prior to the date hereof, and all such agreements and instruments
shall continue in full force and effect..

 

12.3
Successors and Assigns. This Agreement, and any and all rights, duties and obligations hereunder, shall not be assigned,
transferred, delegated or sublicensed by the Company without the prior written consent of each Buyer. Subject to the foregoing
and except as otherwise provided herein, the provisions of this Agreement shall inure to the benefit of, and be binding upon,
the successors, assigns, heirs, executors and administrators of the parties hereto.

 

12.4
Binding Effect. This Agreement shall be binding upon the parties hereto, their respective successors and permitted assigns.

 

12.5
Amendment. Except as specifically set forth herein, neither the Company nor any Buyer makes any representation, warranty,
covenant or undertaking with respect to such matters. For clarification purposes, the Recitals are part of this Agreement. No
provision of this Agreement may be amended other than by an instrument in writing signed by the Company and the Required Buyers.
Any amendment to any provision of this Agreement made in conformity with the provisions of this Section 12.5 shall be binding
on all Buyers, provided that no such amendment shall be effective to the extent that it imposes any obligation or liability on
any Buyer without such Buyer’s prior written consent (which may be granted or withheld in such Buyer’s sole discretion).
No waiver shall be effective unless it is in writing and signed by an authorized representative of the waiving party, provided
that the Required Buyers may waive any provision of this Agreement, and any waiver of any provision of this Agreement made in
conformity with the provisions of this Section 12.5 shall be binding on all Buyers, provided that no such waiver shall be effective
to the extent that it imposes any obligation or liability on any Buyer without such Buyer’s prior written consent (which
may be granted or withheld in such Buyer’s sole discretion). No consideration shall be offered or paid to any Person to
amend or consent to a waiver or modification of any provision of any of this Agreement unless the same consideration also is offered
to all of the parties to this Agreement. The Company has not, directly or indirectly, made any agreements with any Buyers relating
to the terms or conditions of the transactions contemplated by this Agreement except as set forth in this Agreement. Without limiting
the foregoing, the Company confirms that, except as set forth in this Agreement, no Buyer has made any commitment or promise or
has any other obligation to provide any financing to the Company or otherwise. As a material inducement for each Buyer to enter
into this Agreement, the Company expressly acknowledges and agrees that no due diligence or other investigation or inquiry conducted
by a Buyer, any Buyer Representative shall affect such Buyer’s right to rely on, or shall modify or qualify in any manner
or be an exception to any of, the Company’s representations and warranties contained in this Agreement. “Required
Buyers” means Buyers holding a majority of the Shares sold pursuant to this Agreement.

 

    	19 

    	 

    

 

12.6
Gender and Use of Singular and Plural. All pronouns shall be deemed to refer to the masculine, feminine, neuter, singular
or plural, as the identity of the party or parties or their personal representatives, successors and assigns may require.

 

12.7
Execution. This Agreement may be executed in one or more counterparts, all of which taken together shall be deemed and
considered one and the same Agreement, and same shall become effective when counterparts have been signed by each party and each
party has delivered its signed counterpart to the other party. A digital reproduction, portable document format (“.pdf”)
or other reproduction of this Agreement may be executed by one or more parties hereto and delivered by such party by electronic
signature (including signature via DocuSign or similar services), electronic mail or any similar electronic transmission
device pursuant to which the signature of or on behalf of such party can be seen. Such execution and delivery shall be considered
valid, binding and effective for all purposes.

 

12.8
Headings. The article and section headings contained in this Agreement are inserted for convenience only and shall not
affect in any way the meaning or interpretation of the Agreement.

 

12.9
Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall
be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the
principles of conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement
and defense of the transactions contemplated by this Agreement (whether brought against a party hereto or its respective affiliates,
directors, officers, shareholders, employees or agents) shall be commenced exclusively in the state and Federal courts sitting
in the State of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and Federal courts
sitting in the State of New York, for the adjudication of any dispute hereunder or in connection herewith or with any transaction
contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding,
any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought
in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Nothing contained herein shall be deemed
to limit in any way any right to serve process in any manner permitted by law. Each party hereby irrevocably waives any right
it may have, and agrees not to request, a jury trial for the adjudication of any dispute hereunder or in connection with or arising
out of this Agreement or any transaction contemplated hereby. If either party shall commence an action or proceeding to enforce
any provisions of this Agreement, then the prevailing party in such action or proceeding shall be reimbursed by the other party
for its reasonable attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution
of such action or proceeding.

 

    	20 

    	 

    

 

12.10
Further Assurances. The parties hereto will execute and deliver such further instruments and do such further acts and things
as may be reasonably required to carry out the intent and purposes of this Agreement.

 

12.11
Survival. The representations and warranties contained herein shall survive the Closing. Each Buyer shall be responsible
only for its own representations, warranties and covenants hereunder.

 

12.12
Joint Preparation. The preparation of this Agreement has been a joint effort of the parties and the resulting documents
shall not, solely as a matter of judicial construction, be construed more severely against one of the parties than the other.

 

12.13
Severability. If any one of the provisions contained in this Agreement, for any reason, shall be held invalid, illegal
or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of this
Agreement, and this Agreement shall remain in full force and effect and be construed as if the invalid, illegal or unenforceable
provision had never been contained herein.

 

12.14
No Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted
successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

12.15
WAIVER OF JURY TRIAL. THE BUYERS AND THE COMPANY, AFTER CONSULTING OR HAVING HAD THE OPPORTUNITY TO CONSULT WITH COUNSEL,
EACH KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES, IRREVOCABLY, THE RIGHT TO TRIAL BY JURY WITH RESPECT TO ANY LEGAL PROCEEDING
BASED HEREON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER AGREEMENT EXECUTED OR CONTEMPLATED TO
BE EXECUTED IN CONJUNCTION WITH THIS AGREEMENT, OR ANY COURSE OF CONDUCT OR COURSE OF DEALING IN WHICH THE BUYERS AND THE COMPANY
ARE ADVERSE PARTIES. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE BUYERS TO PURCHASE THE SHARES.

 

[SIGNATURES
ON THE FOLLOWING PAGE]

 

    	21 

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date and year set forth above.

 

	 	“COMPANY”
	 	IMPRIMIS PHARMACEUTICALS, INC.,
	 	a Delaware corporation
	 	 	 
	 	By:	/s/ Mark L. Baum
	 	 	Mark L. Baum,
	 	 	Chief Executive
    Officer
	 	 	 
	 	BUYERS:
	 	See Signature pages for each Buyer attached

 

 

Company Signature Page to Securities Purchase Agreement

 

    	 

    

    

 

SCHEDULE
OF BUYERS

 

	Buyer	 	Purchase
    Price ($)	 	Number
    of Shares
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	TOTAL

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