Document:

Exhibit 10.4

 

LEASE AGREEMENT

 

This SHORT TERM
LEASE (this “Lease”) is entered into as of the 31st day of December, 2020, by and between 14303 INWOOD
ROAD, LP, a Texas limited partnership (“Landlord”) and TUESDAY MORNING PARTNERS, LTD., a Texas limited
partnership (“Tenant”).

 

		1.	Lease Grant and Term. Subject to the terms of this Lease, Landlord leases to Tenant,
and Tenant leases from Landlord, the real property as described in the legal description attached hereto as Exhibit A
(together with any improvements thereon) located at (i) 4400-4404 South Beltwood Parkway, Farmers Branch, Texas; (ii) 14303
Inwood Road, Farmers Branch, Texas; (iii) 14621 Inwood Road, Addison, Texas; (iv) 14639-14645 Inwood Road, Addison, Texas;
and (v) 14601-14603 Inwood Road, Addison, Texas (each of the foregoing, individually, a “Property”
and, collectively, the “Premises”). The term of this Lease (the “Term”) shall
commence on the date first set forth above (the “Commencement Date”) and shall continue until 5:00 p.m. (Central
Standard Time) on the date that is thirty (30) months following the Commencement Date (“Termination Date”).

 

Tenant may also extend the Term
on one (1) occasion for a period of twelve (12) months by delivering in writing an extension notice to Landlord not later
than six (6) months prior to the then scheduled expiration date of the Term, in which event this Lease shall be so extended
as shall the Termination Date.

 

		2.	Permitted Use; Operation. Tenant shall use the Premises as a warehouse and distribution
center, together with any incidental purposes thereto, and for no other purpose. Tenant will ensure that Tenant’s use of
the Premises complies with all laws, ordinances, rules and regulations of governmental authorities, and all matters of record
affecting the Premises, now or hereafter in effect.

 

		3.	Rent Payments. During the Term, Tenant agrees to pay to Landlord a monthly sum equal
to $351,207.79 (the “Fixed Rental”). All Fixed Rental payments shall be due and payable, in advance,
on or before the first day of each succeeding calendar month during the Term. Fixed Rental for any fractional month during the
Term shall be prorated based on the current Fixed Rental for each day of the partial month this Lease is in effect. For the avoidance
of doubt, Tenant has no monetary obligations to Landlord under this Lease unless expressly provided otherwise in this Lease. Tenant
may (i) send Fixed Rental Payments to the following address P.O. Box 471369, Fort Worth, Texas 76147, or (ii) elect
to wire Fixed Rental Payments (or pay via Automated Clearing House), in which case Landlord shall provide wiring instructions to
Tenant. Commencing on the first (1st) anniversary of the Commencement Date and continuing each anniversary date thereafter
during the Term (including any extension thereof), the Fixed Rental amount shall be increased by three percent (3.0%) over the
prior year’s Fixed Rental amount. Notwithstanding anything contained in this Lease to the contrary, this Lease is an absolute
net lease. It is the intention of Landlord and Tenant that the Fixed Rental and other sums and charges provided herein shall be
absolutely net to Landlord and that such amounts shall be paid without setoff, abatement, deduction, reduction, except as otherwise
expressly permitted by this Lease.

 

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		4.	Late Fees; Interest. In the event that a Fixed Rental payment is not received
by Landlord within five (5) days of the date it is due, Tenant may be assessed a late fee by Landlord of 2.5% of the amount
due; provided, however, no such late fee shall be owed unless such late payment continues for a period of five (5) days after
written notice to Tenant (but Tenant shall only be entitled to one such notice in any calendar year, and thereafter during such
calendar year any such payment not paid within five (5) days of its due date shall trigger such late payment without the requirement
of additional notice).

 

		5.	Security Deposit. None.

 

		6.	Maintenance, Repair, and Replacement. Excluding damage by casualty or condemnation,
which are governed elsewhere in this Lease, Tenant, at its sole cost and expense, shall maintain and repair in their current condition,
reasonable wear and tear excepted, the Premises (including the roof, foundation, exterior walls and other structural elements)
and equipment and systems within the Premises (including generators, lighting, electrical, plumbing, hydraulics, mechanical, heating,
ventilating and air conditioning), all driveways, parking areas, landscaping, and other improvements located on the Premises, which
maintenance and repair shall be in Tenant’s reasonable discretion, and may include replacement of such equipment, systems,
or structural elements of the Property if replacement is required in Tenant’s reasonable discretion. During the Term of this
Lease, Landlord shall have no obligations with respect to the maintenance or repair (including replacement) of the Premises, all
of such obligations being assumed by Tenant, except as otherwise expressly provided herein. Landlord may make any repairs to the
Premises upon thirty (30) days advance written notice to Tenant (or such shorter period of time if Landlord reasonably determines
the failure to immediately repair will result in material long-term damage to the Premises (or any part thereof), or would cause
injury or harm to human health, in Landlord’s reasonable judgment), so long as Landlord uses commercially reasonable efforts
to minimize interference with Tenant’s business operations in exercising its rights hereunder. In the event that Landlord
is required to make any repairs to the Premises to correct a condition or state of facts which if not corrected would result in
long-term material damage to the Premises (or any material part thereof), or would cause injury or harm to human health, in Landlord’s
reasonable judgment and Tenant fails to commence and diligently pursue such repair within ten (10) days of receipt of notice
thereof (or with respect to an emergency condition, within five (5) days of receipt of notice thereof), Tenant shall reimburse
Landlord for all of Landlord’s out-of-pocket costs in making such repair within ten (10) days following Landlord’s
invoice therefor. Landlord shall indemnify and hold harmless Tenant for any actual, out-of-pocket costs, expenses or losses which
Tenant incurs due to Landlord’s, its agents or contractors’ negligence or willful misconduct in connection with any
repairs done by Landlord or on behalf of Landlord at the Premises. Notwithstanding anything to the contrary, at the expiration
or earlier termination of this Lease, Tenant shall surrender the Premises to Landlord in the then-existing condition of the Premises.
Tenant and Landlord shall schedule a walk-through inspection of the Premises at least thirty (30) days in advance of the expiration
date of the Premises. Landlord shall have the right to identify which furniture and any other tangible personal property on the
Premises that Landlord requires Tenant to remove at the time Tenant vacates the Premises (provided, that, Landlord agrees that
Tenant shall in no event be obligated to remove, nor incur any costs or expenses related to removal or disposal of, any shelving,
sorting and/or conveyer system(s) located at or in any of the Properties, either prior to or after expiration of the Term,
and Landlord shall be entitled to any salvage value attributable to such shelving, sorting and/or conveyer system(s)). In the event
that Tenant fails to remove such identified property by the expiration or termination of this Lease, then such property shall be
considered abandoned and, at Landlord’s election, be deemed the property of Landlord (except for any tangible personal property
utilized by Tenant pursuant to easements, leases, or licenses, provided that if such property is not removed by the expiration
of the Lease Term, Landlord shall have the right to remove the same at Tenant’s reasonable expense), and Landlord shall have
the option to remove and dispose of the same, and Tenant shall pay the reasonable, out-of-pocket costs of such removal to Landlord
upon demand. Tenant shall execute an “as is” Bill of Sale conveying Tenant’s interest in property that Landlord
has elected to assume at the expiration of the Term, and any other reasonable documentation necessary to transfer ownership thereof.

 

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		7.	Alterations. Tenant shall not make or suffer or allow to be made any alterations,
additions or improvements in or to the Premises (collectively, “Alterations”) without first obtaining Landlord’s
written consent based on plans and specifications (which may be preliminary) submitted by Tenant, which consent shall not be unreasonably
withheld, conditioned or delayed. Notwithstanding the foregoing, without prior consent from Landlord, Tenant shall be permitted
to make interior, non-structural Alterations to a Property (but not structural or exterior portions of the improvements) that do
not adversely affect the roof, or the heating, ventilating, air-conditioning, mechanical, electrical, plumbing or life safety systems
of such Property, provided that the total cost to acquire and install the proposed Alterations at any individual Property is no
more than (i) $250,000 in any one instance and (ii) $500,000 in the aggregate with respect to such Property during any
calendar year.

 

		8.	Signs.

 

		a.	Tenant shall not affix any signs or other advertising materials to the Premises without the prior
written consent of the Landlord, which may be withheld in Landlord’s reasonable discretion. Existing signage is hereby approved.

 

		b.	Landlord shall not affix any signs or other advertising materials to the Premises, except that
Landlord shall have the right to place a “For Lease” sign on the Premises during the last (six) 6 months of the Term
or a “For Sale” sign on the Premises if Landlord desires to sell the Premises.

 

		9.	Utilities, Telephone, and Generator. Tenant is currently in possession of the Premises
and acknowledges that the utilities currently serving the Premises are sufficient for Tenant’s use. Tenant shall pay directly
to the utility provider when due for the consumption of all utilities used in the Premises during the Term. Tenant shall at all
times have the right to access and utilize any generators that service the Premises. In the event any utility shall become unavailable
at the Premises, Landlord shall reasonably cooperate with Tenant to get such utility restored as soon as reasonably practicable.

 

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		10.	Insurance. Tenant shall maintain the insurance policies set forth on Exhibit B
hereto. Landlord will maintain: (i) commercial general liability insurance with limits of $1,000,000 per occurrence and $2,000,000
in the aggregate, and (ii) causes of loss-special form property insurance on the Premises with customary exclusions in the
amount of the full replacement cost thereof, including business interruption insurance or rent loss insurance in amount reasonably
determined by Landlord (“Landlord’s Insurance”). Landlord shall add Tenant as named additional
insured on the policies Landlord is required to carry hereunder. All liability insurance policies must delete the contractual liability
exclusion with respect to personal injury or damage to property. All property insurance policies must waive subrogation against
the Tenant and Tenant related parties. Any insurance carried by Landlord may be in the form of one or more blanket insurance policy(ies)
covering multiple properties. For each month during the Term, Tenant shall make a payment to Landlord (an “Insurance
Payment”) in an amount equal to one-twelfth (1/12) of the Insurance Expenses (as hereinafter defined) for the calendar
year in question as reasonably estimated by Landlord. The Insurance Payments are intended to reimburse Landlord for the actual
Insurance Expenses accruing during the Term for the Premises. For purposes herein, “Insurance Expenses”
shall mean the premiums, commercially reasonable deductibles of not more than $50,000 per occurrence, and other expenses incurred
by Landlord for Landlord’s Insurance, but in no event shall Tenant be required to reimburse Landlord, and Insurance Expenses
shall exclude, environmental coverage, mold coverage, terrorism coverage, pollution coverage and all other special coverages and/or
endorsements that Landlord, in Landlord’s reasonable discretion, may from time to time consider appropriate in connection
with Landlord’s ownership, management or operation of the Premises. When the actual amount of Insurance Expenses for an applicable
calendar year are determined by Landlord, Landlord or Tenant, as applicable, will pay to the other such amounts as may be appropriate
to reconcile Tenant’s payment of estimated Insurance Expenses based on actual Insurance Expenses, within thirty (30) days
after written demand together with commercially reasonable evidence of the final amounts demanded. In the event Landlord shall
fail to carry any of the policies required by this Lease, or fails to carry such policies in the form required hereunder, Tenant
may purchase such policies on behalf of Landlord and Tenant shall not be responsible for payment of any Insurance Expenses related
to such policies for so long as Tenant shall maintain such policies on behalf of Landlord.

 

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		11.	Taxes. During the Term, Tenant shall pay prior to delinquency
all real property taxes and assessments assessed against the Premises; provided, however, (i) upon prior written notice to
Landlord, Tenant shall have the right to contest such taxes and assessments as long as in no event shall Tenant permit the commencement
of foreclosure proceedings against the Premises, and (ii) Tenant may pay any assessments over the longest period of time allowed
by applicable law prior to delinquency. Landlord shall reasonably cooperate with Tenant in connection with any tax contest. Real
property taxes and assessments with respect to the Premises for a billing period during which Tenant’s obligations pursuant
to this Lease expire or terminate as to the Premises shall be adjusted and prorated on a daily basis between Landlord and Tenant,
whether or not such tax or assessment is imposed before or after such expiration or termination of this Lease. Within thirty (30)
days after the expiration of the Term, Landlord shall reimburse Tenant for all real property taxes and assessments paid by Tenant
for the remainder of that calendar year (it being agreed that Tenant may pay all taxes for such year, subject to the aforesaid
reimbursement). This obligation shall survive the expiration of this Lease. Landlord shall have the right, at Landlord’s
expense (y) to seek a reduction in the valuation of the Premises and/or any portion or part thereof assessed for tax purposes
if, within thirty (30) days after delivery of written notice by Landlord to Tenant, Tenant fails to commence a proceeding to secure
such reduction; and/or (z) to participate in any such proceeding commenced by Tenant. Tenant
agrees to indemnify and hold Landlord, its OFFICERS, DIRECTORS, PARTNERS,
EMPLOYEES, AGENTS and the Landlord Parties harmless from and against any costs or expenses (including
reasonable attorneys’ fees) or liabilities in connection with any such tax contest proceeding if such proceeding has been
requested or initiated by Tenant. The foregoing indemnity by Tenant shall not be applicable
if Landlord voluntarily elects to participate in such proceeding. The foregoing indemnity shall expressly survive the expiration
or sooner termination of this Lease. Landlord and Tenant shall use commercially reasonable efforts to have the tax assessor send
tax bills directly to Tenant and Tenant shall provide a copy thereof within ten (10) days after receipt. In the event the
parties are unable to transfer receipt of the tax bill to Tenant, then within ten (10) days after Landlord’s receipt
thereof, Landlord shall deliver to Tenant copies of any tax or assessment statements that it receives with respect to the Premises,
and if Landlord fails to provide any such statement and, as a result of such failure, Tenant does not timely pay taxes, then Landlord
shall be responsible for any fees, penalties, or similar charges with respect to the associated taxes or assessments. Otherwise,
Tenant shall be responsible for any fees, penalties, or similar charges with respect to the associated taxes or assessments.

 

		12.	WAIVER OF SUBROGATION. RELEASE FROM OWN NEGLIGENCE (BUT NOT GROSS NEGLIGENCE OR INTENTIONAL
MISCONDUCT): ANYTHING TO THE CONTRARY IN THIS LEASE NOTWITHSTANDING, NEITHER PARTY, NOR ITS OFFICERS, DIRECTORS, PARTNERS,
EMPLOYEES, AGENTS OR INVITEES (EACH, A "RELEASED PARTY") SHALL BE LIABLE TO THE OTHER PARTY OR TO
ANY INSURANCE COMPANY (BY WAY OF SUBROGATION OR OTHERWISE) INSURING THE OTHER PARTY FOR ANY LOSS OR DAMAGE TO ANY BUILDING STRUCTURE
OR OTHER TANGIBLE PROPERTY (INCLUDING, WITHOUT LIMITATION, EQUIPMENT) ON THE PROPERTY, OR LOSS OF BUSINESS OR RENTAL INCOME IN
CONNECTION WITH THE PROPERTY, EVEN THOUGH SUCH LOSS OR DAMAGE MIGHT HAVE BEEN OCCASIONED BY THE NEGLIGENCE OF ANY RELEASED PARTY
(THIS CLAUSE SHALL NOT APPLY, HOWEVER, TO ANY DAMAGE CAUSED BY THE GROSS NEGLIGENCE OR INTENTIONAL MISCONDUCT OF THE RELEASED PARTY).
EACH PARTY REPRESENTS AND COVENANTS THAT IT SHALL OBTAIN APPROPRIATE WAIVERS OF SUBROGATION IN ITS PROPERTY INSURANCE POLICIES
THAT IT MAY ELECT TO CARRY. THIS SECTION RELEASES A PARTY FOR THE CONSEQUENCES OF ITS OWN NEGLIGENCE (EXCLUSIVE OF
GROSS NEGLIGENCE). PARTIES NAMED HEREIN NOT SIGNING THIS LEASE ARE EXPRESS AND INTENDED THIRD PARTY BENEFICIARIES OF THIS WAIVER
OF SUBROGATION.

 

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		13.	Assignment & Subletting. Except as provided herein, Tenant shall not assign
or in any manner transfer this Lease or any estate or interest hereunder and shall not sublease the Premises or any part thereof
without the prior written consent of Landlord, which shall not be unreasonably withheld, conditioned, or delayed. As part of Tenant’s
request for, and as a condition to, Landlord’s consent to such assignment or sublease, Tenant shall provide Landlord with
financial statements for the proposed transferee and such other information as Landlord may reasonably request. Tenant shall not
be entitled to receive monetary damages based upon a claim that Landlord unreasonably withheld its consent to a proposed transfer
to a third party and Tenant’s sole remedy shall be an action to enforce any such provision through specific performance or
declaratory judgment. Tenant shall reimburse Landlord for its actual reasonable costs and expenses incurred in connection with
such assignment or sublease request.

 

Notwithstanding anything in this
Lease to the contrary, so long as Tenant is not in default under this Lease beyond applicable notice and cure periods, the consent
of the Landlord need not be obtained if the assignment of the Lease is to a: (i) parent, subsidiary or affiliate of Tenant;
(ii) company with which Tenant may merge or consolidate; (iii) corporation that acquires all or substantially all of
the shares of stock or assets of Tenant; or (iv) to any corporation which is the successor corporation in the event of a corporate
reorganization (a “Related Entity”); provided, however, that (i) such Related Entity does not use
the Premises for any other use than the use permitted by this Lease, and (ii) with respect to an assignment to a Related Entity
described in subsections (ii) and (iii), such Related Entity has a tangible net worth equal to or greater than $10,000,000.00.
Landlord agrees that Tenant shall have the right, without Landlord’s consent, to sublease or license a portion of the Premises
to a Related Entity described in subsection (i) above, provided that such Related Entity does not use the Premises for any
other use than the use permitted by this Lease. Tenant shall give Landlord written notice at least ten (10) days prior to
the effective date of the proposed transfer, along with all applicable documentation and other information necessary for Landlord
to determine that the requirements of this Section 13 have been satisfied, including if applicable, the qualification of such
proposed transferee as an affiliate of Tenant or a Related Entity.

 

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		14.	Events of Default & Remedies. Each of the following occurrences shall constitute
an “Event of Default”: (a) Tenant’s failure to pay Fixed Rental, or any other sums due from Tenant
to Landlord under this Lease (provided, however, no such Event of Default shall occur under this subparagraph (a) unless Tenant
fails to pay any such sum within five (5) Business Days after receipt of a written notice of default from Landlord; provided,
however, that such notice shall not be required more than two (2) times in a given calendar year); (b) Tenant’s
failure to perform, comply with, or observe any other agreement or obligation of Tenant under this Lease, which failure is not
cured within thirty (30) days of written notice from Landlord (provided, however, if Tenant commences such cure within such 30-day
period and diligently pursues such cure, Tenant may have such additional time as may be reasonably necessary to effect such cure);
(c) Tenant’s failure to perform any of the obligations of Tenant in the manner set forth in Section 10, and such
failure continues for more than ten (10) days following Tenant’s receipt of Landlord’s written notice to Tenant
of the same; or (d) the admission by Tenant in writing that it cannot meet its obligations as they become due or the making
by Tenant of an assignment for the benefit of its creditors. Any Event of Default shall be considered a breach of this Lease by
Tenant. In addition to any and all other rights or remedies Landlord may have in connection with this Lease, as provided by law
or equity, Landlord shall have the following rights and remedies upon the occurrence of any Event of Default: (a) without
terminating this Lease, to change the locks on the doors to the Premises and to exclude Tenant therefrom; (b) terminate this
Lease and take possession of the Premises and to re-let the Premises for the Landlord’s account (no termination of this Lease
shall relieve the Tenant of the obligation to pay any Fixed Rental or any other amounts due under the terms of this Lease prior
to termination) and recover the Landlord’s Liquidated Damages (as defined below); and (c) Landlord may terminate Tenant’s
right to possession of the Premises without terminating this Lease, reenter and take possession of the Premises and remove all
persons and property therefrom with or without process of law, without being deemed guilty of any manner of trespass and without
prejudice to any remedies for arrears of the Fixed Rental or other amounts due hereunder or existing breaches hereof, and lease,
manage, and operate the Premises and collect the rents, issues, and profits therefrom all for the account of Tenant, and credit
to the satisfaction of Tenant’s obligations under this Lease the net rental received (after deducting therefrom all reasonable
costs and expenses of repossessing, leasing, managing, and operating the Premises). The term “Landlord’s Liquidated
Damages” for purposes of this Section means the worth at the time of award by the court having jurisdiction
thereof of (i) the unpaid Fixed Rental and other charges and adjustments called for under the Lease which had been earned
at the time of termination, (ii) the amount by which the unpaid Fixed Rental and other charges and adjustments called for
under the Lease which would have been earned after termination until the time of award exceeds the amount of such Fixed Rental
loss for the same period which the Tenant proves could have been reasonably avoided, and (iii) the amount by which the unpaid
Fixed Rental and other charges and adjustments called for under this Lease for the balance of the term after the time of such award
exceeds the amount of such Fixed Rental loss for the same period that Tenant proves could be reasonably avoided. The worth at the
time of award of the sums referred to in subsections (i) and (ii) above, is computed by discounting such amount at the
discount rate of the Federal Reserve Bank of San Francisco at the time of award plus one percent (1%). In addition to the foregoing
remedies, Tenant shall be required to pay all expenses reasonably incurred by Landlord in enforcing its rights and remedies under
this Lease, including attorneys’ fees, court costs and interest at the lesser of ten percent (10%) or the maximum rate of
interest allowed by applicable law, and shall pay to Landlord the commercially reasonable costs, losses and expenses incurred by
Landlord in reletting all or any portion of the Premises, including the cost of removing and storing Tenant’s personal property
and other property, repairing the Premises, removing and/or replacing Tenant’s signage, and making the Premises ready for
a new tenant, including the cost of leasehold improvements. Upon any re-letting of the Premises by Landlord, all rent received
by Landlord shall be applied (i) first to the payment of any indebtedness other than rent or other charges due under this
Lease from Tenant, (ii) second to the payment of any reasonable and related costs and expenses of such re-letting (including
brokerage fees and attorney’s fees and costs of alterations and repairs), and (iii) third to the payment of all Fixed
Rental and other charges due and unpaid under this Lease. In no event shall the Tenant be entitled to receive any surplus of any
sums received by Landlord on re-letting the Premises, in excess of the rent and other charges payable under this Lease. In no event
shall Tenant be liable for consequential, punitive, exemplary or other damages (other than actual damages only) in connection with
this Lease. Landlord shall use commercially reasonable efforts to mitigate damages.

 

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		15.	Landlord’s Default. If Landlord defaults under this Lease, Tenant will give
Landlord written notice specifying such default with particularity, and Landlord shall thereupon have thirty (30) days in which
to cure any such default; provided, however, if Landlord commences such cure within such 30-day period and diligently pursues such
cure, Landlord may have such additional time as may be reasonably necessary to effect such cure. Unless and until Landlord fails
to so cure any default after such notice, Tenant shall not have any remedy or cause of action by reason thereof; provided, however,
in the event of a bona fide emergency to person or property, Tenant may cure such default and receive reimbursement for Tenant’s
reasonable third-party costs in affecting such cure within thirty (30) days after invoice. All obligations of Landlord hereunder
will be construed as covenants, not conditions. In no event shall Landlord be liable for consequential, punitive, exemplary or
other damages (other than actual damages only) in connection with this Lease. Tenant shall use commercially reasonable efforts
to mitigate damages. Landlord’s liability for failure to perform any of its obligations hereunder is hereby expressly limited
to Landlord’s interest in and to the Premises. Should Landlord fail to pay any sum required to be paid by Landlord hereunder,
or fail to perform any obligation required to be performed by Landlord hereunder, any judicial proceedings brought by Tenant against
Landlord shall be limited to proceeding against Landlord’s rights and interest in and to the Premises, and no attachment,
execution, or other writ or process shall be sought, issued, or levied upon any assets, properties, or funds of Landlord, other
than against Landlord’s interest in and to the Premises. Tenant hereby waives its statutory lien under Section 91.004
of the Texas Property Code. Notwithstanding anything contained in this Lease to the contrary, the obligations of Landlord under
this Lease (including any actual or alleged breach or default by Landlord) do not constitute personal obligations of Landlord or
the individual partners, directors, officers, members or shareholders of Landlord or against Landlord’s partners or any other
persons or entities having any interest in Landlord, or any of their personal assets for satisfaction of any liability with respect
to this Lease.

 

		16.	Mechanics’ Liens. Tenant shall fully and promptly pay all sums necessary for
the costs or repairs, alterations, improvements, charges or other work done by Tenant on the Premises. Tenant shall indemnify and
hold Landlord harmless from and against any and all such costs and liabilities incurred by Tenant, and against any and all mechanics’,
materialmen’s, or laborers’ liens arising out of or from such work or the cost thereof which may be asserted, claimed
or charged against the Premises. This obligation shall survive the termination of this Lease.

 

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		17.	Holding Over. If Tenant fails to vacate the Premises at the Termination Date, then
Tenant shall be a tenant at sufferance and Tenant shall pay as a daily Fixed Rental an amount equal to 1.2 times the daily Fixed
Rental payable during the last month of the Term. In no event shall Tenant be liable for damages in connection with any holdover
unless such holdover continues for a period of more than sixty (60) days. If Landlord is unable to deliver possession of the Premises
to a new tenant, or to perform improvements for a new tenant, as a result of Tenant’s holdover and Tenant fails to vacate
the Premises within sixty (60) days after Landlord notifies Tenant of Landlord’s inability to deliver possession, or perform
improvements, Tenant shall be liable to Landlord for all reasonable damages that Landlord suffers from the holdover.

 

		18.	Notices. Any notice or other communication required or permitted to be given hereunder
shall be in writing and deemed to be delivered, whether actually received or not, (a) if hand delivered or post marked by
the U.S. Postal Service, postage prepaid, registered or certified mail, return receipt requested, upon deposit with the carrier,
(b) if sent by courier or express mail where evidence of delivery is retained, upon deposit, or (c) sent via electronic
mail as long as such notice is also simultaneously sent by one of the other methods approved hereunder. Any notice executed and
delivered by either party’s legal counsel (or any other authorized agent of such party) shall be fully effective as if the
same had been executed and delivered by such party. Landlord and Tenant may execute this Lease by electronic counterparts or PDF
counterparts delivered electronically, each of which shall be deemed an original for all purposes.

 

		19.	Indemnification.

 

		a.	Subject to Section 12 above, Tenant shall indemnify, defend and hold Landlord harmless from
any claim for injury to person or damage to property accruing during the Term of this Lease and occurring within, on or about the
Premises or arising from the negligence or intentional misconduct of Tenant, its agents, officers, employees, or contractors. For
the avoidance of doubt, this Section 19(a) does not cover an environmental claim.

 

		b.	Tenant agrees that Tenant shall not knowingly receive, accept, store, dispose or release any hazardous
or toxic substances on or in the Premises in violation of environmental laws, or transport any hazardous or toxic substances to
or from the Premises in violation of environmental laws, except materials used in Tenant’s ordinary course of business, and
any such materials will be stored, used, and disposed of in compliance with all environmental laws. Tenant shall indemnify, defend
and hold Landlord harmless from any claim relating to the environmental condition of the Premises accruing during the Term of this
Lease and caused by Tenant or its agents, employees, contractors, or invitees (each, a “Tenant Party”).
For the avoidance of doubt, Tenant shall have no liability to Landlord for any environmental condition of the Premises (or a related
claim) that (a) was not caused by a Tenant Party, or (b) existed or accrued prior to the Commencement Date, even if caused
by a Tenant Party, except to the extent a Tenant Party exacerbates such pre-existing condition.

 

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These indemnity obligations shall
survive the termination of this Lease as to claims that accrued during the Term of this Lease. For Landlord’s indemnification
rights to remain effective, Landlord must notify Tenant in writing within sixty (60) days of receiving notice of the claim.

 

		20.	Casualty. In the event of a casualty involving the Premises that will take more than
ninety (90) days to repair, as reasonably estimated by Landlord (the “Landlord’s Rebuild Estimate”),
then Landlord or Tenant may terminate this Lease within thirty (30) days after delivery of Landlord’s Rebuild Estimate. Landlord
shall provide Landlord’s Rebuild Estimate within thirty (30) days of the date of the applicable casualty. If neither party
elects to terminate this Lease as provided above or if neither party has the right to terminate this Lease as provided above, then
Landlord shall promptly commence to restore the Premises to substantially the same condition that existed prior to the fire or
other casualty (“Landlord’s Repair Obligation”), exclusive of any Alterations, additions, improvements,
fixtures and equipment installed by or on behalf of Tenant (whether before or after the Commencement Date). Notwithstanding the
foregoing, Landlord shall not be required to fulfill its Landlord’s Repair Obligations to the extent that any lender requires
that Landlord’s insurance proceeds be applied to the payment of the mortgage debt or if the casualty is not a claim covered
by insurance or if Landlord’s insurance proceeds are insufficient to satisfy the cost of the repair work, and in such event
Landlord shall have the right to terminate this Lease upon notice to Tenant. Notwithstanding the foregoing, if Landlord’s
Repair Obligation has not been substantially completed within forty-five (45) days after the estimated restoration date set forth
in Landlord’s Rebuild Estimate (the last day of such 45-day period being the “Casualty Termination Date”),
Tenant shall have the right to terminate this Lease effective upon thirty (30) days’ prior written notice to Landlord delivered
within sixty (60) days after the Casualty Termination Date; provided, however, that such termination shall be null and void if
Landlord completes the Landlord’s Repair Obligations prior to the expiration of such sixty (60) day period. In the event
that this Lease is terminated as set forth herein, the Fixed Rental shall be apportioned as of the date of the damage and, provided
Tenant is not in default, Tenant shall be entitled to a refund from Landlord of amounts for the Fixed Rental or other charges prepaid
by Tenant to Landlord for the period arising after the date of the casualty. Tenant will have no claim to insurance proceeds with
respect to insurance policies maintained by Landlord, condemnation award or proceeds in lieu of condemnation; provided that in
the event of a casualty, Tenant shall be permitted to retain any insurance proceeds payable under any policy carried by Tenant.
In the event the Premises are untenantable in whole or in part and neither party terminates as provided herein, then Fixed Rental
shall be equitably abated to reflect the portion of the Premises not tenantable.

 

		21.	Condemnation. In the event that Landlord or Tenant receives notice of any pending
or threatened condemnation or any public or quasi-public taking, use under law, eminent domain or private purchase in lieu thereof
(a “Taking”) of any portion of the industrial building(s) located on the Premises, then such party
shall promptly notify the other in writing. If (i) any portion of the industrial building(s) location on the Premises
or (ii) ten percent (10%) or more of the Premises will be taken during the Term of this Lease, then Landlord or Tenant shall
have the right, exercisable by delivery of written notice to the other, to terminate this Lease (or any portion hereof). All compensation
awarded for a Taking shall be the property of Landlord. The right to receive compensation or proceeds is expressly waived by Tenant;
provided, however, Tenant may file a separate claim for Tenant’s furniture, fixtures, equipment
and other personal property, loss of goodwill and Tenant’s reasonable relocation expenses, to the extent it will not reduce
Landlord’s award. Tenant hereby waives any right it may have pursuant to any applicable Laws and agrees that the provisions
hereof shall govern the parties’ rights in the event of any Taking.

 

    10

     

    

 

		22.	Miscellaneous.

 

		a.	Nothing herein contained shall be deemed or construed by the parties hereto, nor by any third party,
as creating the relationship of principal and agent or of partnership or of joint venture between Landlord and Tenant, it being
understood and agreed that neither the method of computation of Fixed Rental, nor any other provisions contained herein, nor any
acts of the parties hereto, shall be deemed to create any relationship between the parties hereto other than the relationship of
landlord and tenant.

 

		b.	Within thirty (30) days after the request of the other, at any time and from time to time, both
Landlord and Tenant agree to execute, acknowledge and deliver an estoppel certificate certifying that (i) this Lease is in
full force and effect, (ii) the date through which Fixed Rental and other charges due hereunder have been paid and (iii) to
such party’s knowledge, that no default by Landlord or Tenant, as appropriate, has occurred hereunder or specifying the nature
of any such default.

 

		c.	Each of the parties represents and warrants that there are no unpaid claims for brokerage commission
or finder’s fees in connection with the execution of this Lease, and each agrees to indemnify the other against, and hold
it harmless from, all liabilities arising from any such claim (including without limitation, the cost of legal fees in connection
therewith). This obligation shall survive the termination of this Lease.

 

		d.	The laws of the state in which the Premises is located shall govern the interpretation, validity,
performance and enforcement of this Lease (without reference to choice of law principles).

 

		e.	Each provision of this Lease shall be construed in such manner as to give such provision the fullest
legal force and effect possible. To the extent any provision herein (or part of such provision) is held to be unenforceable or
invalid when applied to a particular set of facts, or otherwise, the unenforceability or invalidity of such provision (or part
thereof) shall not affect the enforceability or validity of the remaining provisions hereof (or of the remaining parts of such
provision), which shall remain in full force and effect, nor shall such unenforceability or invalidity render such provision (or
part thereof) would be held legally enforceable and/or valid.

 

    11

     

    

 

		f.	Notwithstanding anything to the contrary, in no event shall Landlord or Tenant be liable for consequential,
punitive, exemplary or other damages (above and beyond actual damages only) in connection with this Lease.

 

		g.	In the event of litigation hereunder, the prevailing party shall be entitled to an award of its
reasonable attorney’s fees. Landlord and Tenant agree that should any suit, action or proceeding arising out of this Lease
be instituted by any party hereto, such suit, action or proceeding shall be instituted only in a state or federal court in the
county in which the Premises are located or, if no such court is located in that county, then in the state or federal court that
is closest to the Premises (the “Approved Jurisdiction”). Landlord and Tenant each consent to the in
personam jurisdiction of any state or federal court in the Approved Jurisdiction, and waive any objection to the venue of any
such suit, action or proceeding. This Section 22(h) shall survive the expiration or termination of this Lease.

 

		23.	Delivery of the Premises. Tenant acknowledges and agrees the Premises are delivered
by Landlord and accepted by Tenant in its present “AS IS, WHERE IS, WITH ALL FAULTS” condition as of
the Commencement Date. Tenant acknowledges that it has been provided access and ample opportunity to inspect the Premises and
its existing condition, improvements and systems and, except as expressly provided otherwise in this Lease, is not relying upon
any warranty or representation of Landlord or its agents regarding the condition, adequacy or suitability of the same for Tenant’s
intended purpose, LANDLORD HEREBY EXPRESSLY DISCLAIMING ANY SUCH WARRANTY. Landlord shall have no liability or obligation
to any Tenant Party for any pre-existing environmental condition existing as of the Effective Date, except to the extent Landlord,
its affiliates, agents or contractors exacerbate such condition.

 

		24.	No Contractual or Statutory Lien. Landlord hereby waives any contractual or statutory
lien on the goods, wares, or equipment of Tenant located at the Premises.

 

		25.	Attornment. Tenant shall, in the event any proceedings are brought for the foreclosure
of, or in the event of the exercise of the power of sale under any mortgagee made by Landlord covering any part of the Premises,
attorn to the purchaser upon any such foreclosure or sale and recognize such purchaser as Landlord under this Lease.

 

		26.	Priority of Lease. Upon written request of Landlord or the holder or of a proposed
holder of any mortgage now or hereafter covering or to cover any part of the Premises, Tenant will subordinate its rights under
this Lease to the lien of such mortgage and to all advances made or to be made upon the security thereof, and Tenant shall, within
ten (10) business days after written demand therefor, execute, acknowledge, and deliver an instrument, in the form customarily
used by such encumbrance holder, and reasonably satisfactory to Tenant, effecting such subordination; provided, however, as a condition
to such subordination, Landlord shall cause such lienholder to sign a commercially reasonable subordination and non-disturbance
agreement.

 

    12

     

    

 

		27.	OFAC. Landlord hereby represents and warrants to Tenant that Landlord is not acting,
directly or indirectly for, or on behalf of, any person, group, entity or nation named by any Executive Order of the President
of the United States of America (including the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions
With Persons Who Commit, Threaten to Commit, or Support Terrorism) or the United States Treasury Department, as a terrorist, “Specially
Designated National and Blocked Person,” or other banned or blocked person, entity, or nation pursuant to any law that is
enforced or administered by the United States Office of Foreign Assets Control, and is not engaging in this transaction, directly
or indirectly, on behalf of, or instigating or facilitating this transaction, directly or indirectly, on behalf of, any such person,
group, entity or nation.

 

[Remainder of Page Intentionally Blank]

 

    13

     

    

 

 

EXECUTED on
the dates set forth below to be effective as of the date first above written.

 

	 	TENANT:
	 	 
	 	TUESDAY MORNING PARTNERS, LTD.,
	 	a Texas limited partnership
	 	 
	 	By: 	Days of the Week, Inc.,
	 	 	a Delaware corporation,
	 	 	its General Partner

 

	 	 	By:	/s/ Steven R. Becker
	 	 	Name: 	Steven R. Becker
	 	 	Title: 	Chief Executive Officer

 

	 	Address:
	 	 
	 	6250 LBJ Freeway
	 	Dallas, Texas 75240
	 	Attention: Jim Spisak
	 	E-Mail: jspisak@tuesdaymorning.com &
	 	legal@tuesdaymorning.com
	 	 
	 	With a copy to:
	 	 
	 	Haynes and Boone LLP
	 	2323 Victory Avenue, Suite 700
	 	Dallas, Texas 75219
	 	Attention: Brack Bryant
	 	E-mail: brack.bryant@haynesboone.com

 

Signature Page to Lease

 

    

     

    

 

	 	LANDLORD:
	 	 
	 	14303 INWOOD ROAD, LP,
	 	a Texas limited partnership
	 	 
	 	By: 	14303 Inwood Road GP, LLC
	 	 	a Texas limited liability company,
	 	 	its General Partner

 

	 	 	By:	 /s/ Michael C. O’Malley
	 	 	Name: 	Michael C. O’Malley
	 	 	Title: 	Manager

 

	 	Address:
	 	 
	 	14303 Inwood Road, LP
	 	3800 N. Lamar Blvd, Suite 350
	 	Austin, Texas 78756
	 	Attention: Brett Zimmerman
	 	Email: bzimmerman@pennybackercap.com
	 	 
	 	With a copy to:
	 	 
	 	Jackson Walker L.L.P.
	 	100 Congress Ave., Suite 1100
	 	Austin, Texas 78701
	 	Attention: Kati Orso
	 	E-mail: korso@jw.com

 

Signature Page to Lease

 

    

     

    

 

EXHIBIT A

 

LEGAL DESCRIPTION

 

14303
INWOOD ROAD:

 

Being
all of Lot 1, Block A of Tuesday Morning Addition, an addition to the City of Farmers Branch, Dallas County, Texas, according to
the Plat recorded in Volume 2003011, Page 312, Deed Records, Dallas County, Texas.

 

4400-4404
BELTWOOD & 14621 INWOOD ROAD:

 

BEING
all of Tuesday Morning Beltwood Addition, Lot 1, Block A, a portion of Block E, Beltwood Business Park, Second Installment, an
addition to the City of Farmers Branch, Dallas County, Texas according to the plat recorded in Instrument No. 200600276647
Official Public Records, Dallas County, Texas and being part of Lots 1, 2 and 3 of Inwood Park North, an addition to the City of
Addison, according to the plat recorded in Volume 79234, Page 1 Deed Records, Dallas County, Texas (D.R.D.C.T.) and being
more particularly described as follows:

 

BEGINNING
at a 1/2 iron rod with orange cap stamped “P&C 100871” found for corner in the East line of said Tuesday Morning
Addition at the Northwest corner of said Inwood Addition and the Southwest corner of Lot 1, Miniwood Addition, an addition to the
Town of Addison according to the plat recorded in Volume 82194, Page 2965 D.R.D.C.T.;

 

THENCE
North 80°45’00” East, with the common line between said Inwood Addition and Miniwood Addition, a distance of 570.00
feet to 1/2 inch iron rod with yellow plastic cap stamped “KADLECK 3952” found for corner at the Northwest corner of
a tract of land described by deed as Tract II to Friday Morning Inc as recorded in Volume 91213, Page 2336 D.R.D.C.T.;

 

THENCE
along said Friday Morning Tract II the following calls:

 

South
09°15’00” East, a distance of 97.87 feet to a 1/2 inch iron rod found for corner;

 

South
16°49’00” East, a distance of 216.67 feet to a 1/2 inch iron rod found for corner in the North line of a 50 foot
Access, Utility and Drainage Easement;

 

North
89°49’46” East, with the North line of said Easement, a distance of 224.48 feet to an “x” cut in concrete
found for corner in the West line of Inwood Road (a 60 foot public right-of-way);

 

THENCE
South 16°49’00” East, with said West line of Inwood Road, a distance of 52.19 feet to a 1/2 iron rod with orange
cap stamped “P&C 100871” found for corner in said West line of Inwood Road, said rod being the Northeast corner
of Tract I of said Friday Morning tract;

 

THENCE
along said Friday Morning Tract II the following calls:

 

    Ex. A-1

     

    

 

South
89°49’46” West, with the South line of said Easement a distance of 203.61 feet to a 1/2 inch iron rod found for
corner;

 

South
00°10’14” East. departing said South line a distance of 98.81 feet to an “x” cut in concrete found
for corner;

 

North
89°49’46” East, a distance of 10.00 feet to a 1/2 iron rod with orange cap stamped “P&C 100871”
set for corner:

 

South
16°49’00” East, a distance of 216.00 feet to an “x” cut in concrete found for corner in the South line
of said Inwood Addition and the North line of a Texas Utilities Electric Co tract;

 

THENCE
South 89°49’46” West with the South line of said Inwood Addition and the North line of said Texas Utilities tract,
a distance of 748.22 feet to a 1/2 iron rod with orange cap stamped “P&C 100871” set for corner, said corner being
the Southwest corner of said Inwood Addition and the Southeast corner of aforementioned Tuesday Morning Addition;

 

THENCE
along said Tuesday Morning Addition the following calls:

 

North
87°15’17” West, a distance of 800.81 feet to a 1/2 iron rod with orange cap stamped “P&C 100871”
found for corner in the East line of Gillis Road (a 60 foot public right-of-way);

 

North
00°09’17” West, with said East line, a distance of 335.45 feet to a 1/2 iron rod with orange cap stamped “P&C
100871” found for corner;

 

North
46°17’43” East, a distance of 20.67 feet to a 1/2 iron rod with orange cap stamped “P&C 100871”
found for corner in the South line of Beltwood Parkway South (a 60 foot public right-of-way);

 

South
87°15’17” East, a distance of 380.22 feet to a 1/2 iron rod with orange cap stamped “P&C 100871”
found for corner and the beginning of a curve to the left with a radius of 100.00 feet and a chord which bears North 46°17’23”
East for 144.97 feet;

 

Along
said curve to the left through a central angle of 92°54’39” and an arc length of 162.16 feet to a 1/2 iron rod
with orange cap stamped “P&C 100871” found for corner in the East line of Beltway Parkway East (a 60 foot public
right-of-way);

 

North
00°09’17” West, with said East line, a distance of 394.80 feet to a 1/2 iron rod with orange cap stamped “P&C
100871” found for corner, said rod being the Southwest corner of Lot 2, Block A of Dallas Semiconductor Business Park II
an addition to the City of Farmers Branch recorded in Volume 2004084, Page 51 D.R.D.C.T.;

 

South
89°57’34” East, a distance of 300.00 feet to a 1/2 iron rod with orange cap stamped “P&C 100871”
found for corner, said rod being the Southeast corner of said Semiconductor Addition;

 

    Ex. A-2

     

    

 

South 00°09’17”
East, for a distance of 294.59 to the POINT OF BEGINNING and containing 19.512 acres, or 849,826 square feet of land, more or less.

 

14601,
14603 AND 14639-14647 INWOOD ROAD:

 

TRACT
I:

 

BEING
a 1.556 acre (67,759 square foot) tract of land situated in the Josiah Pancoast Survey, Abstract No. 1146, Dallas County,
Texas and being part of Lot 1 and part of Lot 2 of Inwood Park North, an addition to the Town of Addison, Dallas County, Texas,
according to the plat recorded in Volume 79234, Page 1 Deed Records, Dallas County, Texas, and being more particularly described
as follows:

 

BEGINNING
at a 1/2 inch iron rod with orange plastic cap stamped “P&C 100871” set for corner in the southwesterly line of
Inwood Road (a 60 foot public right-of-way), said rod being South 16°49’00” East, a distance of 26.09 feet from
the northeast corner of said Lot 1 and the southeast corner of Lot 3 of said Inwood Park North Addition;

 

THENCE
South 16°49’00” East, along said southwesterly line of Inwood Road and the northeasterly line of said Lot 1, for
a distance of 319.14 feet to a 1/2 inch iron rod with orange plastic cap stamped “P&C 100871” set for corner, said
rod being the southeast corner of said Lot 1 and in the north line of a Texas Utilities Electric Company right-of-way;

 

THENCE
South 89°49’46” West, departing said southwesterly line of Inwood Road and along the south line of said Lot 1 and
said north line of Texas Utilities Electric Company right-of-way, passing the southwest corner of said Lot 1 and the southeast
corner of aforementioned Lot 2 at a distance of 200.40 feet, continuing for a total distance of 223.15 feet to a 1/2 inch iron
rod with orange plastic cap stamped “P&C 100871” set for corner;

 

THENCE
North 16°49’00” West, departing the south line of said Lot 2 and traveling over and across said Lot 2, for a distance
of 216.00 feet to an “x” cut in concrete set for corner;

 

THENCE
South 89°49’46” West for a distance of 10.00 feet to an “x” cut in concrete set for corner;

 

THENCE
North 00°10’14” West for a distance of 98.81 feet to a 1/2 inch iron rod found for a corner in the south line of
a 50 foot access, utility and drainage easement as shown on aforementioned plat of Inwood Park North Addition;

 

THENCE
North 89°49’46” East, along said south line of 50 foot access, utility and drainage easement, for a distance of
203.61 feet to the POINT OF BEGINNING and containing 1.556 acres, or 67,759 square feet of land, more or less.

 

    Ex. A-3

     

    

 

TRACT
II:

 

BEING
a 1.631 acre (71,041 square foot) tract of land situated in the Josiah Pancoast Survey, Abstract No. 1146, Dallas County,
Texas and being part of Lot 3 of Inwood Park North, an addition to the Town of Addison, Dallas County, Texas, according to the
plat recorded in Volume 79234, Page 1 Deed Records, Dallas County, Texas, and being more particularly described as follows:

 

BEGINNING
at a 1/2 inch iron rod with orange plastic cap stamped “P&C 100871” set for corner in the southwesterly line of
Inwood Road (a 60 foot public right-of-way), said rod being the northeast corner of said Lot 3 and the southeast corner of Lot
2, Block A of Inwood Auto/Beverage Addition, an addition to the Town of Addison, Dallas County, Texas, according to the plat recorded
in Instrument No. 200600248924 Official Public Records, Dallas County, Texas;

 

THENCE
South 16°49’00” East, along said southwesterly line of Inwood Road and the northeasterly line of said Lot 3, for
a distance of 351.14 feet to an “x” cut in concrete set for corner, said “x” being the northeast corner
of a 50 foot access, utility and drainage easement as shown on aforementioned plat of Inwood Park North Addition, said “x”
also being North 16°49’00” West, a distance of 26.09 feet from the southeast corner of said Lot 3 and the northeast
corner of Lot 1 of said Inwood Park North Addition;

 

THENCE
South 89°49’46” West, departing said southwesterly line of Inwood Road and along the north line of said 50 foot
access, utility and drainage easement, over and across said Lot 3 and parallel with the south line of said Lot 3, for a distance
of 224.48 feet to a 1/2 inch iron rod found for corner;

 

THENCE
North 16°49’00” West, departing said northerly line of 50 foot access, utility and drainage easement, for a distance
of 216.67 feet to a 1/2 inch iron rod found for corner;

 

THENCE
North 09°15’00” West for a distance of 97.87 feet to a 1/2 inch iron rod with yellow plastic cap stamped “KADLECK
3952” found for corner in the northerly line of said Lot 3 and the southerly line of aforementioned Lot 2 of Inwood Auto/Beverage
Addition;

 

THENCE North 80°45’00”
East, along said northerly line of Lot 3, and the southerly line of said Lot 2 of Inwood Auto/Beverage Addition, for a distance
of 203.96 feet to the POINT OF BEGINNING and containing 1.631 acres, or 71,041 square feet of land, more or less.

 

    Ex. A-4

     

    

 

EXHIBIT B

 

TENANT INSURANCE REQUIREMENTS

 

Tenant, at its sole
cost and expense, shall procure and maintain throughout the Term of the Lease the following policies of insurance (which may be
part of umbrella policies):

 

(a)            property
insurance causing Tenant's leasehold improvements and business personal property (sometimes also referred to as "fixtures
and contents") at the Premises to be insured under the broadest available special form of property coverage, sometimes referred
to as "all-risk" coverage (such as the form identified as CP 10 30, and any successor form, published by Insurance
Services Office, Inc.), such insurance coverage (i) to be in the full amount of the replacement cost of all insured
property, (ii) to include coverage for the loss of business income, in an amount deemed reasonable by Tenant, (iii) to
contain no deductible or self-insured retention in excess of $100,000.00, (iv) to contain no coinsurance penalty clause,
and (v) to include a waiver of subrogation in favor of Landlord; and

 

(b)            combination
of commercial general liability and umbrella insurance insuring both Landlord and Tenant against all claims, demands or actions
for bodily injury, property damage, personal and advertising injury arising out of or in connection with Tenant's use or occupancy
of the Premises, or by the condition of the Premises, with a limit of not less than $10,000,000 per occurrence and aggregate (and
no offset for occurrences on property other than the Premises), and with coverage for contractual liability naming Landlord as
Additional Insured, and to include a waiver subrogation in favor of the Landlord; and

 

(c)            worker's
compensation insurance insuring against and satisfying Tenant's obligations and liabilities under the worker's compensation laws
of the state where the Premises is located, together with employer's liability insurance in an amount not less than $1,000,000.00
each accident, $1,000,000.00 disease policy limit, and $1,000,000.00 disease each employee; the full limits of insurance are to
apply per location, and include a waiver of subrogation in favor of Landlord; and

 

(d)            automobile
liability insurance covering all owned, non-owned, and hired vehicles with a $1,000,000 per accident limit for bodily injury and
property damage; and

 

(e)            during
any period when construction work is being done in or on the Premises, such additional insurance as Landlord may reasonably require;
and

 

(f)             business
interruption insurance in the unallocated amount of at least $10,000,000; and

 

(g)            All
policies must be written by insurance companies whose rating in the most recent Best’s Rating Guide, is not less than A(-):
VII; and

 

(h)            Certificates
of Insurance evidencing the required coverages must be delivered to the Landlord prior to the commencement of the Lease.

 

    Ex. B-1Exhibit 10.5

 

FORM OF INDEMNIFICATION AGREEMENT

 

This Indemnification
Agreement (the “Agreement”), dated as of _____________, 20__, is made by and between Tuesday Morning Corporation, a
Delaware corporation (the "Corporation"), and __________ (the "Indemnitee").

 

RECITALS

 

A.        The
Corporation recognizes that competent and experienced persons are increasingly reluctant to serve or to continue to serve as directors
or officers of corporations unless they are protected by comprehensive liability insurance and indemnification, due to increased
exposure to litigation costs and risks resulting from their service to such corporations, and due to the fact that the exposure
frequently bears no reasonable relationship to the compensation of such directors and officers;

 

B.        The
statutes and judicial decisions regarding the duties of directors and officers are often difficult to apply, ambiguous, or conflicting,
and therefore fail to provide such directors and officers with adequate, reliable knowledge of legal risks to which they are exposed
or information regarding the proper course of action to take;

 

C.         The
Corporation and Indemnitee recognize that plaintiffs often seek damages in such large amounts and the costs of litigation may be
so enormous (whether or not the case is meritorious), that the defense and/or settlement of such litigation is often beyond the
personal resources of directors and officers and the exposure from such litigation frequently bears no reasonable relationship
to the compensation of such directors and officers;

 

D.        The
Corporation believes that it is unfair for its directors and officers to assume the risk of huge judgments and other expenses which
may occur in cases where the director or officer was not culpable;

 

E.        The
Corporation, after reasonable investigation, has determined that the liability insurance coverage presently available to the Corporation
may be inadequate in certain circumstances to cover all possible exposure for which Indemnitee should be protected. The Corporation
believes that the interests of the Corporation and its stockholders would best be served by a combination of such insurance and
the indemnification by the Corporation of the directors and officers of the Corporation;

 

F.         The
Corporation's Bylaws require the Corporation to indemnify its directors and officers to the fullest extent not prohibited by the
Delaware General Corporation Law ("DGCL"). The Bylaws expressly provide that the indemnification provisions set forth
therein are not exclusive, and contemplate that agreements may be entered into between the Corporation and its directors and officers
with respect to indemnification;

 

     

     

    

 

G.        Section 145
of the DGCL, empowers the Corporation to indemnify its officers, directors, employees and agents by agreement and to indemnify
persons who serve, at the request of the Corporation, as the directors, officers, employees or agents of other corporations or
enterprises, and expressly provides that the indemnification provided by Section 145 is not exclusive;

 

H.        Section 102(b)(7) of
the DGCL allows a corporation to include in its certificate of incorporation a provision limiting or eliminating the personal liability
of a director for monetary damages in respect of claims by the corporation or its stockholders for breach of certain fiduciary
duties, and the Corporation has so provided in its Certificate of Incorporation that each Director shall be exculpated from such
liability to the maximum extent permitted by the DGCL;

 

I.          The
Corporation desires to provide the Indemnitee with specific contractual assurances of the Indemnitee's rights to full indemnification
against litigation risks and reasonable expenses (regardless, among other things, of any amendment to or revocation of the Certificate
of Incorporation and Bylaws or any change in control or business combination transaction relating to the Corporation or the composition
of its Board of Directors) in accordance with the terms hereof and, to the extent insurance is available as provided herein, the
coverage of the Indemnitee under the Corporation's directors' and officers' liability insurance policies;

 

J.         The
Board of Directors has determined that contractual indemnification as set forth herein is not only reasonable and prudent but also
promotes the best interests of the Corporation and its stockholders;

 

K.        The
Corporation desires and has requested Indemnitee to serve or continue to serve as a director or officer of the Corporation free
from undue concern for unwarranted claims for damages arising out of or related to such services to the Corporation;

 

L.         Indemnitee
is willing to serve, continue to serve or to provide additional service for or on behalf of the Corporation on the condition that
he is furnished the indemnity provided for herein; and

 

M.       This
Agreement is a supplement to and in furtherance of the Bylaws of the Corporation and any resolutions adopted pursuant thereto,
and shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder except as otherwise
expressly provided herein.

 

AGREEMENT

 

NOW, THEREFORE, in consideration
of the mutual covenants and agreements set forth below, and other good and valuable consideration, the receipt and adequacy of
which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

 

    2

     

    

 

Section 1.           Certain
Definitions. For purposes of this Agreement, the following definitions shall apply:

 

(a)           The
term "Proceeding" shall be broadly construed and shall include, without limitation, the investigation, preparation, prosecution,
defense, settlement, arbitration and appeal of, and the giving of testimony in, any threatened, pending or completed claim, action,
suit, proceeding, or arbitration, whether civil, criminal, administrative, investigative, appellate or arbitral, and whether formal
or informal, and which shall include any proceeding by or in the right of the Corporation.

 

(b)           The
phrase "by reason of the fact that Indemnitee is or was a director or officer of the Corporation, or is or was serving at
the Corporation's request as a director, officer, employee or agent of any Other Enterprise", or any substantially similar
phrase, shall be broadly construed and shall include, without limitation, any actual or alleged act or omission to act.

 

(c)           The
term "Expenses" shall be broadly and reasonably construed and shall include, without limitation, all direct and indirect
expenses, costs or charges of any type or nature whatsoever (including, without limitation, all attorneys' fees and related disbursements,
appeal bonds, other out-of-pocket costs and reasonable compensation for time spent by Indemnitee for which Indemnitee is not otherwise
compensated by the Corporation or any third party, provided that the rate of compensation and estimated time involved is approved
by the Corporation's Board of Directors, which approval shall not be unreasonably withheld, conditioned or delayed), actually and
reasonably incurred by Indemnitee in connection with the investigation, preparation, prosecution, defense, settlement, arbitration
or appeal of, or the giving of testimony in, a Proceeding or establishing or enforcing a right to indemnification under this Agreement,
the Corporation's Certificate of Incorporation or Bylaws, Section 145 of the DGCL or otherwise.

 

(d)           The
terms "judgments, fines and amounts paid in settlement" shall be broadly construed and shall include, without limitation,
all direct and indirect payments of any type or nature whatsoever (including, without limitation, all penalties and amounts required
to be forfeited or reimbursed to the Corporation), as well as any penalties or excise taxes assessed on a person with respect to
an employee benefit plan.

 

(e)           The
term "Corporation" shall include, without limitation and in addition to the resulting corporation, any constituent corporation
or any Other Enterprise (including any constituent of a constituent) absorbed in a consolidation or merger which, if its separate
existence had continued, would have had power and authority to indemnify its directors, officers, and employees or agents, so that
any person who is or was a director or officer of such constituent corporation or Other Enterprise, or is or was serving at the
request of such constituent corporation as a director, officer, employee or agent of any Other Enterprise, shall stand in the same
position under the provisions of this Agreement with respect to the resulting or surviving corporation as he or she would have
with respect to such constituent corporation or Other Enterprise as if its separate existence had continued.

 

(f)            The
term "Other Enterprise" shall include, without limitation, any other corporation, partnership, joint venture, trust or
employee benefit plan.

 

    3

     

    

 

(g)          The
phrase "serving at the request of the Corporation", or any substantially similar phrase, shall include, without limitation,
any service as a director or officer of the Corporation which involves services as a director, officer, employee or agent with
respect to any Other Enterprise, including any employee benefit plan.

 

(h)          A
person who acted in good faith and in a manner such person reasonably believed to be in the interest of the participants and beneficiaries
of an employee benefit plan shall be deemed to have acted in a manner "not opposed to the best interests of the Corporation"
as referred to in this Agreement.

 

(i)           The
term "defense" shall include investigations of any Proceeding, appeals of any Proceeding and defensive assertion of any
cross-claim or counterclaim.

 

(j)           The
term "Independent Counsel" means a law firm, or a member of a law firm, that is experienced in matters of corporation
law and neither presently is, nor in the past five years has been, retained to represent: (i) the Corporation or Indemnitee
in any matter material to either such party (other than with respect to matters concerning Indemnitee under this Agreement, or
of other indemnitees under similar indemnification agreements), or (ii) any other party to the Proceeding giving rise to a
claim for indemnification hereunder. Notwithstanding the foregoing, the term "Independent Counsel" shall not include
any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing
either the Corporation or Indemnitee in an action to determine Indemnitee's rights under this Agreement. The Corporation agrees
to pay the reasonable fees of the Independent Counsel arising out of or relating to this Agreement or its engagement pursuant hereto.

 

(k)          The
term "Change of Control" means (i) an acquisition by any person (within the meaning of Section 13(d)(3) or
14(d)(2) of the Securities Exchange Act of 1934, as amended (the "Exchange Act")) of beneficial ownership of fifteen
percent (15%) or more of the combined voting power of the Corporation's then outstanding voting securities; (ii) during any
period of two consecutive years, individuals who at the beginning of such period constitute the Board of Directors of the Corporation
and any new director whose election by the Board of Directors or nomination for election by the Corporation's stockholders was
approved by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors at the beginning
of the period or whose election or nomination for election was previously so approved (other than directors elected to the Board
of Directors as part of a threatened or actual proxy contest, including by reason of an agreement intended to avoid or settle any
threatened or actual proxy contest), cease for any reason to constitute a majority thereof; (iii) the consummation of a merger
or consolidation involving the Corporation if the stockholders of the Corporation, immediately before such merger or consolidation,
do not own, immediately following such merger or consolidation, more than eighty percent (80%) of the combined voting power of
the outstanding voting securities of the resulting entity in substantially the same proportion as their ownership of voting securities
immediately before such merger or consolidation; (iv) the consummation of the sale or other disposition of all or substantially
all of the assets of the Corporation; (v) approval by the stockholders of the Corporation of a complete liquidation or dissolution
of the Corporation; (vi) the Corporation shall file or have filed against it, and such filing shall not be dismissed, any
bankruptcy or insolvency proceedings, or a trustee, administrator or creditors committee shall be appointed to manage or supervise
the affairs of the Corporation; or (vii) the occurrence of any other event of a nature that would be required to be reported
in response to either Item 5.01 of Form 8-K or Item 6(e) of Schedule 14A of Regulation 14A (or a response to any similar
item on any similar schedule or form promulgated under the Exchange Act), whether or not the Corporation is then subject to such
reporting requirement. Notwithstanding the foregoing, a Change of Control shall not be deemed to occur solely because fifteen percent
(15%) or more of the then outstanding voting securities is acquired by (i) a trustee or other fiduciary holding securities
under one or more employee benefit plans maintained by the Corporation or any of its subsidiaries or (ii) any entity that,
immediately prior to such acquisition, is owned directly or indirectly by the stockholders of the Corporation in the same proportion
as their ownership of shares in the Corporation immediately prior to such acquisition.

 

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Section 2.           Indemnification.

 

(a)           Subject
to Sections 4, 6 and 8 of this Agreement, to the fullest extent not prohibited by the laws of the State of Delaware, as the same
now exists or may hereafter be amended (but only to the extent any such amendment permits the Corporation to provide broader indemnification
rights than such law permitted the Corporation to provide prior to such amendment), the Corporation shall indemnify, defend and
hold harmless, Indemnitee if Indemnitee was or is a party or is threatened to be made a party to, or a witness of, or is otherwise
involved in, any Proceeding by reason of the fact that Indemnitee is or was or has agreed to serve as a director or officer of
the Corporation, or is or was serving at the Corporation's request as a director, officer, employee or agent of any Other Enterprise,
or by reason of any action taken or alleged to have been taken, or omitted to be taken or alleged to be omitted to be taken, in
such capacity.

 

(b)          Subject
to Sections 4, 6 and 8 of this Agreement, to the fullest extent not prohibited by the laws of the State of Delaware, as the same
now exists or may hereafter be amended (but only to the extent any such amendment permits the Corporation to provide broader indemnification
rights than such law permitted the Corporation to provide prior to such amendment), the indemnification provided by this Section 2
shall be from and against Expenses, judgments, fines and amounts paid in settlement actually and reasonably incurred by Indemnitee
or on Indemnitee's behalf in connection with such Proceeding, but shall only be provided if Indemnitee acted in good faith and
in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Corporation, and, with respect
to any criminal Proceeding, had no reasonable cause to believe Indemnitee's conduct was unlawful.

 

(c)           Indemnitee
shall be deemed to have met the applicable standard of conduct under the laws of the State of Delaware for entitlement to indemnification
if Indemnitee’s action or inaction that is the subject of the Proceeding is based on reliance in good faith upon the records
of the Corporation or upon such information, opinions, reports or statements presented to the Corporation by any of the Corporation's
officers or employees, or Committees of the Board or Directors, or by any other person (including, without limitation, legal counsel,
investment bankers, accountants, auditors or appraisers) as to matters the Indemnitee reasonably believes are within such other
person's professional or expert competence and who has been selected with reasonable care by or on behalf of the Corporation. The
provisions of this subsection (c) shall not be deemed to be exclusive or limit in any way the other circumstances in which
the Indemnitee may be deemed to have met the applicable standard of conduct under the laws of the State of Delaware for entitlement
to indemnification.

 

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(d)          In
the case of any Proceeding by or in the right of the Corporation to procure a judgment in its favor by reason of the fact that
Indemnitee is or was a director or officer of the Corporation, or is or was serving at the Corporation's request as a director,
officer, employee or agent of any Other Enterprise, Indemnitee shall be indemnified against all Expenses actually and reasonably
incurred by the Indemnitee, or on the Indemnitee’s behalf, in connection with such Proceeding if the Indemnitee acted in
good faith and in a manner the Indemnitee reasonably believed to be in or not opposed to the best interests of the Company; provided,
however, that if applicable law so requires, no indemnification shall be made in respect of any claim, issue or matter as to
which Indemnitee shall have been adjudged to be liable to the Corporation unless, and only to the extent that a Delaware Court
of Chancery ("Delaware Court") or the court in which such Proceeding was brought shall determine upon application that
such indemnification may be made.

 

(e)          The
termination of any Proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent,
shall not, of itself, create a presumption that Indemnitee did not act in good faith and in a manner which Indemnitee reasonably
believed to be in or not opposed to the best interests of the Corporation, and, with respect to any criminal Proceeding, had reasonable
cause to believe that Indemnitee's conduct was unlawful.

 

Section 3.           Successful
Defense; Partial Indemnification. To the extent that Indemnitee has been successful on the merits or otherwise in defense of
any Proceeding referred to in Section 2 hereof or in defense of any claim, issue or matter therein, Indemnitee shall
be indemnified against Expenses actually and reasonably incurred in connection therewith. For purposes of this Agreement and without
limiting the foregoing, if any Proceeding is disposed of, on the merits or otherwise (including a disposition without prejudice),
without (i) the disposition being adverse to Indemnitee, (ii) an adjudication that Indemnitee was liable to the Corporation,
(iii) a plea of guilty or nolo contendere by Indemnitee, (iv) an adjudication that Indemnitee did not act in good faith
and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Corporation, and (v) with
respect to any criminal Proceeding, an adjudication that Indemnitee had reasonable cause to believe Indemnitee's conduct was unlawful, Indemnitee
shall be considered for the purposes hereof to have been wholly successful with respect thereto.

 

Notwithstanding any other
provision of this Agreement, to the extent that Indemnitee is, by reason of his service to the Corporation, a witness in any Proceeding
to which Indemnitee is not a party, such Indemnitee shall be indemnified against all Expenses actually and reasonably incurred
by or on behalf of such Indemnitee in connection therewith.

 

If Indemnitee is entitled
under any provision of this Agreement to indemnification by the Corporation for some or a portion of the Expenses, judgments, fines
or amounts paid in settlement actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection with any Proceeding,
or in defense of any claim, issue or matter therein, and any appeal therefrom but not, however, for the total amount thereof, the
Corporation shall nevertheless indemnify Indemnitee for the portion of such Expenses, judgments, fines or amounts paid in settlement
to which Indemnitee is entitled. Any necessary determination regarding allocation or apportionment of Expenses between successful
and unsuccessful claims, issues or matters shall be made by the person, persons or entity empowered or selected under Section 4(a) to
determine whether Indemnitee is entitled to indemnification.

 

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Section 4.           Determination
That Indemnification Is Proper.

 

(a)          Any
indemnification hereunder shall (unless otherwise ordered by a court) be made by the Corporation unless a determination is made
that indemnification of such person is not proper in the circumstances because he or she has not met the applicable standard of
conduct set forth in Section 2(b) hereof. Any such determination shall be made (i) by a majority vote of the directors
who are not parties to the Proceeding in question ("disinterested directors"), even if less than a quorum, (ii) by
a majority vote of a committee of disinterested directors designated by majority vote of disinterested directors, even if less
than a quorum, (iii) by a majority vote of a quorum of the outstanding shares of stock of all classes entitled to vote on
the matter, voting as a single class, which quorum shall consist of stockholders who are not at that time parties to the Proceeding
in question, (iv) by Independent Counsel, or (v) by a court of competent jurisdiction; provided, however,
that following a Change of Control of the Corporation, any determinations, whether arising out of acts, omissions or events occurring
prior to or after the Change of Control of the Corporation, shall be made by Independent Counsel selected in the manner described
in Section 4(c). Such Independent Counsel shall determine as promptly as practicable whether and to what extent Indemnitee
would be permitted to be indemnified under applicable law and shall render a written opinion to the Corporation and to Indemnitee
to such effect.

 

(b)          If
the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 4(a) hereof
and no Change of Control has occurred, the Independent Counsel shall be selected as provided in this Section 4(b). In such
case, the Independent Counsel shall be selected by the Board of Directors and the Corporation shall give prompt written notice
to the Indemnitee advising the Indemnitee of the Independent Counsel so selected. Indemnitee may, within ten (10) days after
such written notice of selection shall have been given, deliver to the Corporation, as the case may be, a written objection to
such selection; provided, however, that such objection may be asserted only on the ground that the Independent Counsel so selected
does not meet the requirements of "Independent Counsel" as defined in Section 1 of this Agreement, and the objection
shall set forth with particularity the factual basis of such assertion. Absent a proper and timely objection, the person so selected
shall act as Independent Counsel. If a written objection is made in proper form, the Independent Counsel selected may not serve
as Independent Counsel unless and until such objection is withdrawn or a court has determined that such objection is without merit.
If, within twenty (20) days after submission by Indemnitee of a written request for indemnification pursuant to Section 6(a) hereof,
no Independent Counsel shall have been selected and not objected to, either the Corporation or Indemnitee may petition the Delaware
Court or a court of competent jurisdiction for resolution of any objection which shall have been made by the Indemnitee to the
Corporation's selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by the court
or by such other person as the court shall designate, and the person with respect to whom all objections are so resolved or the
person so appointed shall act as Independent Counsel under Section 4(a) hereof. The Corporation shall pay any and all
reasonable fees and expenses of Independent Counsel incurred by such Independent Counsel in connection with acting pursuant to
Section 4(a) hereof, and the Corporation shall pay all reasonable fees and expenses incident to the procedures of this
Section 4(b) regardless of the manner in which such Independent Counsel was selected or appointed.

 

    7

     

    

 

(c)          Notwithstanding
anything to the contrary herein, if a Change of Control has occurred, the Independent Counsel shall be selected by Indemnitee (unless
Indemnitee shall request that such selection be made by the Board of Directors) and Indemnitee shall give prompt written notice
to the Corporation advising it of the identity of the Independent Counsel so selected. The Corporation may, within ten (10) days
after such written notice of selection shall have been given, deliver to the Indemnitee, as the case may be, a written objection
to such selection; provided, however, that such objection may be asserted only on the ground that the Independent Counsel so selected
does not meet the requirements of "Independent Counsel" as defined in Section 1 of this Agreement, and the objection
shall set forth with particularity the factual basis of such assertion. Absent a proper and timely objection, the person so selected
shall act as Independent Counsel. If a written objection is made in proper form, the Independent Counsel selected may not serve
as Independent Counsel unless and until such objection is withdrawn or a court has determined that such objection is without merit.
If, within twenty (20) days after submission by Indemnitee of a written request for indemnification pursuant to Section 6(a) hereof,
no Independent Counsel shall have been selected and not objected to, either the Corporation or Indemnitee may petition the Delaware
Court or a court of competent jurisdiction for resolution of any objection which shall have been made by the Corporation to the
Indemnitee's selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by the court
or by such other person as the court shall designate, and the person with respect to whom all objections are so resolved or the
person so appointed shall act as Independent Counsel under Section 4(a) hereof. The Corporation shall pay any and all
reasonable fees and expenses of Independent Counsel incurred by such Independent Counsel in connection with acting pursuant to
Section 4(a) hereof, and the Corporation shall pay all reasonable fees and expenses incident to the procedures of this
Section 4(c) regardless of the manner in which such Independent Counsel was selected or appointed.

 

Section 5.          Advance
Payment of Expenses; Notification and Defense of Claim.

 

(a)          Any
Expenses incurred by Indemnitee in defending a Proceeding, or in connection with an enforcement action pursuant to Section 6(b),
shall be paid by the Corporation to Indemnitee in advance of the final disposition of such Proceeding as soon as practicable but
in any event no later than twenty (20) days after receipt by the Corporation of (i) a statement or statements from Indemnitee
requesting such advance or advances from time to time (which shall include invoices received by Indemnitee in connection with such
Expenses; provided, however, that Indemnitee shall not be required to provide any documentation or information to the extent that
the provision thereof would jeopardize the attorney-client privilege), and (ii) an undertaking by or on behalf of Indemnitee
to repay such amount or amounts, only if, and to the extent that, there is a final judicial determination (as to which all rights
of appeal therefrom have been exhausted or lapsed) that Indemnitee is not entitled to be indemnified by the Corporation as authorized
by this Agreement, Bylaws, applicable law or otherwise. Such undertaking shall be accepted without reference to the financial ability
of Indemnitee to make such repayment. Advances shall be unsecured and interest-free. Notwithstanding the foregoing, the obligation
of the Corporation to advance Expenses pursuant to this Section 5, its Certificate of Incorporation, its Bylaws or otherwise,
shall be subject to the condition that, if, when and to the extent that the Corporation determines, in accordance with the procedures,
indemnification and evidentiary standards, presumptions, burdens of proof and other applicable provisions set forth herein, that
Indemnitee would not be permitted to be indemnified under applicable law, the Corporation may terminate further advances of Expenses
and shall be reimbursed within sixty (60) days of such determination, by Indemnitee (who hereby agrees to reimburse the Corporation)
for such amounts previously paid by the Corporation pursuant to this Section 5; provided, however, that if Indemnitee has
commenced or thereafter commences legal proceedings in a court of competent jurisdiction to secure a determination that Indemnitee
should be indemnified under applicable law, any determination made by the Corporation that Indemnitee would not be permitted to
be indemnified under applicable law shall not be binding and the Corporation shall continue to advance Expenses as provided herein
and Indemnitee shall not be required to reimburse the Corporation for any advance of Expenses until a final judicial determination
is made with respect thereto (as to which all rights of appeal therefrom have been exhausted or lapsed).

 

    8

     

    

 

(b)          Promptly
after receipt by Indemnitee of written notice of the commencement of any Proceeding, Indemnitee shall, if a claim thereof
is to be made against the Corporation hereunder, notify the Corporation of the commencement thereof. The failure to promptly notify
the Corporation of the commencement of the Proceeding, or Indemnitee's request for indemnification, will not relieve the Corporation
from any liability that it may have to Indemnitee hereunder, except to the extent the Corporation is prejudiced in its defense
of such Proceeding as a result of such failure.(c)      Notwithstanding
any other provision of this Agreement to the contrary, to the extent that Indemnitee is, by reason of Indemnitee's corporate status
with respect to the Corporation or any Other Enterprise which Indemnitee is or was serving or has agreed to serve at the request
of the Corporation, a witness or otherwise participates in any Proceeding at a time when Indemnitee is not a party in the Proceeding,
the Corporation shall indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee's
behalf in connection therewith.

 

Section 6.           Procedure
for Indemnification.

 

(a)          To
obtain indemnification (other than as provided otherwise herein) under this Agreement, Indemnitee shall promptly submit to
the Corporation a written request, including therein or therewith such documentation and information as is reasonably available
to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification. The
Corporation shall, promptly upon receipt of such a request for indemnification, advise the Board of Directors in writing that Indemnitee
has requested indemnification.

 

    9

     

    

 

(b)          The
determination whether to grant Indemnitee's indemnification request (whether made by the Board of Directors or one of its committees, Independent
Counsel, or the Corporation's stockholders) shall be made promptly, and in any event within sixty (60) days following receipt of
a request for indemnification pursuant to Section 6(a). The right to indemnification as granted by Section 2 of this
Agreement shall be enforceable by Indemnitee in any court of competent jurisdiction if the Corporation denies such request, in
whole or in part, or fails to respond within such sixty-day (60) period. It shall be a defense to any such action (other than an
action brought to enforce a claim for the advance of Expenses under Section 5 hereof where the required undertaking, if any,
has been received by the Corporation) that Indemnitee has not met the standard of conduct set forth in Section 2 hereof, but
the burden of proving such defense by clear and convincing evidence shall be on the Corporation. Neither the failure of the Corporation
(including its Board of Directors or one of its committees, its Independent Counsel, and its stockholders) to have made a determination
prior to the commencement of such action that indemnification of Indemnitee is proper in the circumstances because Indemnitee has
met the applicable standard of conduct set forth in Section 2 hereof, nor the fact that there has been an actual determination
by the Corporation (including its Board of Directors or one of its committees, its Independent Counsel, and its stockholders) that
Indemnitee has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that Indemnitee
has or has not met the applicable standard of conduct. The Indemnitee's Expenses incurred in connection with successfully establishing
Indemnitee's right to indemnification, in whole or in part, in any such Proceeding or otherwise shall also be indemnified by the
Corporation.

 

(c)          The
Indemnitee shall be presumed to be entitled to indemnification under this Agreement upon submission of a request for indemnification
pursuant to this Section 6, and the Corporation shall have the burden of proof in overcoming that presumption in reaching
a determination contrary to that presumption. Such presumption shall be used as a basis for a determination of entitlement to indemnification
unless the Corporation overcomes such presumption by clear and convincing evidence.

 

(d)          The
knowledge and/or actions, or failure to act, of any director, officer, agent or employee of the Corporation shall not be imputed
to Indemnitee for purposes of determining the right to indemnification under this Agreement.

 

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Section 7.           Insurance
and Subrogation.

 

(a)           The
Corporation represents that it currently has in effect the following policy or policies of director and officer liability insurance
(the "Insurance Policies") which names or covers Indemnitee as an insured:

 

	Insurer	Policy No.	Limit	Retention
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

 

(b)          So
long as Indemnitee shall continue to serve as a director or officer of the Corporation, or shall continue at the request of the
Corporation to serve as a director or officer, employee or agent of any Other Enterprise, and thereafter so long as Indemnitee
shall be subject to any possible claim or is a party or is threatened to be made a party to any Proceeding, by reason of the fact
that Indemnitee is or was a director or officer of the Corporation, or is or was serving in any of said other capacities at the
request of the Corporation, the Corporation shall be required to maintain the Insurance Policies in effect or to obtain policies
of directors' and officers' liability insurance from established and reputable insurers with coverage in at least the amount or
amounts as prescribed by the Insurance Policies and which provides the Indemnitee with substantially the same rights and benefits
as the Insurance Policies, and which coverage, rights and benefits shall, in any event, be as favorable to Indemnitee as are accorded
to the most favorably insured of the Corporation's directors or officers, as the case may be ("Comparable D&O Insurance")
unless, in the reasonable business judgment of the Board of Directors of the Corporation as it may exist from time to time, either
(i) the premium cost for such Insurance Policies or Comparable D&O Insurance is materially disproportionate to the amount
of coverage provided, or (ii) the coverage provided by such Insurance Policies or Comparable D&O Insurance is so limited
by exclusions that there is insufficient benefit provided by such director and officer liability insurance; provided, however,
that in the event that the Board of Directors makes such a determination, the Corporation shall provide notice to Indemnitee no
less than ninety (90) days prior to the lapse or termination of coverage under the Insurance Policies or Comparable D&O Insurance.

 

(c)           If,
at the time of the receipt of a notice of a claim pursuant to the terms hereof, the Corporation has director and officer liability
insurance in effect, the Corporation shall give prompt notice of the commencement of such claim, and any Proceeding in which such
claim is asserted, to the insurers in accordance with the procedures set forth in the respective policies. The Corporation shall
thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable
as a result of such claim or Proceeding in accordance with the terms of such policies. The failure or refusal of any such insurer
to pay any such amount shall not affect or impair the obligations of the Corporation under this Agreement.

 

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(d)           In
the event of any payment by the Corporation under this Agreement, the Corporation shall be subrogated to the extent of such payment
to all of the rights of recovery of Indemnitee with respect to any insurance policy, who shall execute all papers required and
take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Corporation
to bring suit to enforce such rights in accordance with the terms of such insurance policy. The Corporation shall pay or reimburse
all Expenses actually and reasonably incurred by Indemnitee in connection with such subrogation.

 

(e)          The
Corporation shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder (including,
but not limited to, Expenses, judgments, fines, ERISA excise taxes or penalties, and amounts paid in settlement) if and to the
extent that Indemnitee has otherwise actually received such payment under the Corporation's Certificate of Incorporation or Bylaws,
or any insurance policy, contract, agreement or otherwise.

 

(f)           Notwithstanding
that the Indemnitee may have certain rights to indemnification, advancement of expenses and/or insurance provided by Other Enterprises,
the Company: (a) shall be the indemnitor of first resort with respect to which indemnification is required pursuant to this
Agreement (i.e., its obligations to the Indemnitee are primary and any obligation of the Other Enterprises to advance expenses
or to provide indemnification for the same expenses or liabilities incurred by the Indemnitee are secondary); and (b) shall
be required to advance the full amount of expenses incurred by the Indemnitee and shall be liable for the full amount of all Expenses,
without regard to any rights the Indemnitee may have against any of the Other Enterprises. No advancement or payment by the Other
Enterprises on behalf of the Indemnitee with respect to any claim for which the Indemnitee has sought payment from the Company
shall affect the immediately preceding sentence, and the Other Enterprises shall have a right of contribution and/or be subrogated
to the extent of such payment to all of the rights of recovery of the Indemnitee against the Company. The Company and the Indemnitee
agree that the Other Enterprises are express third party beneficiaries of the terms of this Section 7(f).

 

Section 8.           Limitation
on Indemnification. Notwithstanding any other provision herein to the contrary, the Corporation shall not be obligated pursuant
to this Agreement:

 

(a)           Claims
Initiated by Indemnitee. To indemnify or advance expenses to Indemnitee with respect to a Proceeding (or part thereof) initiated
by Indemnitee, except with respect to a Proceeding brought to establish or enforce a right to indemnification (which shall be governed
by the provisions of Sections 6(b) and 8(b) of this Agreement), unless such Proceeding (or part thereof) was authorized
or consented to by the Board of Directors of the Corporation or the Proceeding was commenced following a Change of Control.

 

(b)           Action
for Indemnification. To indemnify Indemnitee for any Expenses incurred by Indemnitee with respect to any Proceeding instituted
by Indemnitee to enforce or interpret this Agreement, unless Indemnitee is successful in establishing Indemnitee's right to indemnification
in such Proceeding, in whole or in part, or unless and to the extent that the Delaware Court or the court in such Proceeding shall
determine that, despite Indemnitee's failure to establish his or her right to indemnification, Indemnitee is entitled to indemnity
for such Expenses; provided, however, that nothing in this Section 8(b) is intended to limit the Corporation's obligation
with respect to the advancement of Expenses to Indemnitee in connection with any such Proceeding instituted by Indemnitee to enforce
or interpret this Agreement, as provided in Section 5 hereof.

 

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(c)           Claims
Prohibited by Law. To indemnify Indemnitee if a final decision by a court of competent jurisdiction determines that such indemnification
is prohibited by applicable law.

 

(d)          Certain
Statutory Violations. To indemnify Indemnitee on account of any Proceeding with respect to which final judgment is rendered
against Indemnitee for (i) payment or an accounting of profits arising from the purchase or sale by Indemnitee of securities
in violation of Section 16(b) of the Exchange Act or any similar successor statute, or (ii) any reimbursement of
the Corporation by the Indemnitee of any bonus or other incentive-based or equity-based compensation or of any profits realized
by the Indemnitee from the sale of securities of the Corporation, as required in each case under the Exchange Act (including any
such reimbursements pursuant to Section 304 of the Sarbanes-Oxley Act of 2002 (the "Sarbanes-Oxley Act"), Section 10D
of the Exchange Act added by the Dodd-Frank Wall Street Reform and Consumer Protection Act or any rules or regulations implementing
the foregoing, or the payment to the Corporation of profits arising from the purchase and sale by Indemnitee of securities in violation
of Section 306 of the Sarbanes-Oxley Act).

 

(e)           Non-compete
and Non-disclosure. To indemnify Indemnitee in connection with Proceedings or claims involving the enforcement of non-compete
and/or non-disclosure agreements or the non-compete and/or non-disclosure provisions of employment, consulting or similar agreements
the Indemnitee may be a party to with the Corporation, or any subsidiary of the Corporation or any Other Enterprise.

 

Section 9.           Mutual
Acknowledgement. Both the Corporation and the Indemnitee acknowledge that in certain instances, federal law or applicable public
policy may prohibit the Corporation from indemnifying its directors, officers, employees, agents or fiduciaries under this Agreement
or otherwise. The Indemnitee understands and acknowledges that the Corporation has undertaken or may be required in the future
to undertake with the Securities and Exchange Commission to submit the question of indemnification to a court in certain circumstances
for a determination of the Corporation’s right under public policy to indemnify the Indemnitee.

 

Section 10.         Certain
Settlement Provisions. The Corporation shall have no obligation to indemnify Indemnitee under this Agreement for (a) amounts
paid in settlement of any Proceeding without the Corporation's prior written consent, which shall not be unreasonably withheld,
conditioned or delayed, or (b) any judicial award if the Company was not given a reasonable and timely opportunity, at its
expense, to participate in the defense of such action; provided, however, that if a Change of Control has occurred,
the Corporation shall be liable for indemnification of Indemnitee for amounts paid in settlement if the Independent Counsel has
approved the settlement. The Corporation shall not settle any Proceeding in any manner that would impose any fine or other obligation
on Indemnitee without Indemnitee's prior written consent, which shall not be unreasonably withheld, conditioned or delayed.

 

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Section 11.         Savings
Clause. If any provision or provisions of this Agreement shall be invalidated on any ground by any court of competent jurisdiction,
then the Corporation shall nevertheless indemnify Indemnitee as to Expenses, judgments, fines and amounts paid in settlement with
respect to any Proceeding, including an action by or in the right of the Corporation, to the full extent permitted by any applicable
portion of this Agreement that shall not have been invalidated and to the full extent permitted by applicable law.

 

Section 12.         Contribution.
In order to provide for just and equitable contribution in circumstances in which the indemnification provided for herein is held
by a court of competent jurisdiction to be unavailable to Indemnitee in whole or in part, it is agreed that, in such event, the
Corporation shall, to the fullest extent permitted by law, contribute to the payment of Indemnitee's Expenses, judgments, fines
and amounts paid in settlement with respect to any Proceeding, or any claims, issues or matters in such Proceeding, in an amount
that is just and equitable in the circumstances, taking into account, among other things, the relative benefits received by the
Company and all officers, directors or employees of the Company, other than Indemnitee, who are jointly liable with Indemnitee
(or would be if joined in such action, suit or proceeding), on the one hand, and Indemnitee, on the other hand, from the transaction
from which such action, suit or proceeding arose; provided, however, that the proportion determined on the basis
of relative benefit may, to the extent necessary to conform to law, be further adjusted by reference to the relative fault of the
Company and all officers, directors or employees of the Company other than Indemnitee who are jointly liable with Indemnitee (or
would be if joined in such action, suit or proceeding), on the one hand, and Indemnitee, on the other hand, in connection with
the events that resulted in such expenses, judgments, fines or settlement amounts, as well as any other equitable considerations
which applicable law may require to be considered. The relative fault of the Company and all officers, directors or employees of
the Company, other than Indemnitee, who are jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding),
on the one hand, and Indemnitee, on the other hand, shall be determined by reference to, among other things, the degree to which
their actions were motivated by intent to gain personal profit or advantage, the degree to which their liability is primary or
secondary and the degree to which their conduct is active or passive..

 

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Section 13.         Form and
Delivery of Communications. All notices and other communications given or made pursuant to this Agreement shall be in writing
and shall be deemed effectively given: (i) upon personal delivery to the party to be notified, (ii) if sent via facsimile,
upon confirmation of facsimile transfer or, if sent via electronic mail, upon confirmation of delivery when directed to the relevant
electronic mail address, if sent during normal business hours of the recipient, or if not sent during normal business hours of
the recipient, then on the recipient’s next business day, (iii) five (5) days after having been sent by registered
or certified mail, return receipt requested, postage prepaid, or (iv) one (1) day after deposit with a nationally recognized
overnight courier, specifying next day delivery, with written verification of receipt. All communications shall be sent to the
address, facsimile number or electronic mail address set forth below, or to such other address, facsimile number or electronic
mail address as may have been furnished hereafter to Indemnitee by the Corporation or to the Corporation by Indemnitee, as the
case may be.

 

If to the Corporation:

	 	 	 
	 	 	 
	 	 	 
	 	Attn: General Counsel	 
	 	Facsimile: [•]	 
	 	Electronic Mail Address:                    	[•]
	 	 	 
	If to Indemnitee:	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

Section 14.         Nonexclusivity.
Except as expressly provided herein, the provisions for indemnification, advancement of Expenses and contribution set forth in
this Agreement shall not be deemed exclusive of any other rights which Indemnitee may have under any provision of law, the Corporation's
Certificate of Incorporation or Bylaws, in any court in which a Proceeding is brought, the vote of the Corporation's stockholders
or disinterested directors, other agreements or otherwise, and Indemnitee's rights hereunder shall continue after Indemnitee has
ceased acting as a director or officer of the Corporation, or ceased serving at the Corporation's request as a director, officer,
employee or agent of any Other Enterprise, and shall inure to the benefit of the heirs, executors, administrators and legal representatives
of Indemnitee. However, no amendment or alteration of the Corporation's Certificate of Incorporation or Bylaws or any other agreement
shall adversely affect the rights provided to Indemnitee under this Agreement.

 

Section 15.         Enforcement.
The Corporation shall be precluded from asserting in any judicial Proceeding that the procedures and presumptions of this Agreement
are not valid, binding and enforceable. The Corporation agrees that its obligations set forth in this Agreement are unique and
special, and that failure of the Corporation to comply with the provisions of this Agreement will cause irreparable and irremediable
injury to Indemnitee, for which a remedy at law will be inadequate. As a result, in addition to any other right or remedy Indemnitee
may have at law or in equity with respect to breach of this Agreement, Indemnitee shall be entitled to injunctive or mandatory
relief directing specific performance by the Corporation of its obligations under this Agreement.

 

Section 16.         Interpretation
of Agreement. It is understood that the parties hereto intend this Agreement to be interpreted and enforced so as to provide
indemnification of, and advancement of Expenses and contribution to, Indemnitee to the fullest extent now or hereafter permitted
by law in accordance with the provisions of this Agreement.

 

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Section 17.         Entire
Agreement. This Agreement and the documents expressly referred to herein constitute the entire agreement between the parties
hereto with respect to the matters covered hereby, and any other prior or contemporaneous oral or written understandings or agreements
with respect to the matters covered hereby are expressly superseded by this Agreement.

 

Section 18.         Modification
and Waiver. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both
of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any
other provision hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.

 

Section 19.         Successor
and Assigns. All of the terms and provisions of this Agreement shall be binding upon, shall inure to the benefit of and shall
be enforceable by the parties hereto and their respective successors, assigns, heirs, executors, administrators and legal representatives.
The Corporation shall require and cause any direct or indirect successor (whether by purchase, merger, consolidation or otherwise)
to all or substantially all of the business or assets of the Corporation, by written agreement in form and substance reasonably
satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that
the Corporation would be required to perform if no such succession had taken place. This Agreement shall continue in effect regardless
of whether Indemnitee continues to serve as a director, officer, employee, agent of fiduciary (as applicable) of the Corporation
or of any Other Enterprise.

 

Section 20.         Service
of Process and Venue. For purposes of any Proceedings to enforce this Agreement, the Corporation and Indemnitee hereby irrevocably
and unconditionally (i) agree that any Proceeding arising out of or in connection with this Agreement shall be brought only
in the Delaware Court, and not in any other state or federal court in the United States of America or any court in any other country,
(ii) consent to submit to the exclusive jurisdiction of the Delaware Court for purposes of any Proceeding arising out of or
in connection with this Agreement, (iii) in the case of the Corporation, irrevocably appoint, to the extent such party is
not otherwise subject to service of process in the State of Delaware, CT Corporation as its agent in the State of Delaware as such
party's agent for acceptance of legal process in connection with any such Proceeding against such party with the same legal force
and validity as if served upon such party personally within the State of Delaware, (iv) waive any objection to the laying
of venue of any such Proceeding in the Delaware Court, and (iv) waive, and agree not to plead or to make, any claim that any
such Proceeding brought in the Delaware Court has been brought in an improper or inconvenient forum.

 

Section 21.         Governing
Law. This Agreement shall be governed exclusively by and construed according to the laws of the State of Delaware, as applied
to contracts between Delaware residents entered into and to be performed entirely within Delaware. If a court of competent jurisdiction
shall make a final determination that the provisions of the law of any state other than Delaware govern indemnification of, or
advancement of Expenses or contribution to, its officers and directors by the Corporation, then the indemnification, advancement
of Expenses and contribution provided under this Agreement shall in all instances be enforceable to the fullest extent permitted
under such law, notwithstanding any provision of this Agreement to the contrary.

 

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Section 22.         Employment
Rights. Nothing in this Agreement is intended to create in Indemnitee any right to employment or continued employment.

 

Section 23.         Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original and all of which together
shall be deemed to be one and the same instrument, notwithstanding that both parties are not signatories to the original or same
counterpart.

 

Section 24.         Headings.
The section and subsection headings contained in this Agreement are for reference purposes only and shall not affect in any way
the meaning or interpretation of this Agreement.

 

Section 25.        Section 409A.
It is intended that any indemnification payment or advancement of Expenses made hereunder shall be exempt from Section 409A
of the Internal Revenue Code of 1986, as amended, and the guidance issued thereunder ("Section 409A") pursuant to
Treasury Regulation Section 1.409A-1(b)(10). Notwithstanding the foregoing, if any indemnification payment or advancement
of Expenses made hereunder shall be determined to be "nonqualified deferred compensation" within the meaning of Section 409A,
then (i) the amount of the indemnification payment or advancement of Expenses during one taxable year shall not affect the
amount of the indemnification payments or advancement of Expenses during any other taxable year, (ii) the indemnification
payments or advancement of Expenses must be made on or before the last day of the Indemnitee's taxable year following the year
in which the expense was incurred, and (iii) the right to indemnification payments or advancement of Expenses hereunder is
not subject to liquidation or exchange for another benefit.

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF, this
Agreement has been duly executed and delivered by the parties hereto to be effective as of the date first above written.

 

	 	TUESDAY MORNING CORPORATION
	 	 
	 	 
	 	By	                    
	 	Name:
	 	Title:
	 	 
	 	INDEMNITEE:
	 	 
	 	 
	 	By	 
	 	Name:

 

    18

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