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fgen-ex109_217.htm

[*] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would likely cause competitive harm to the company if publicly disclosed.

Exhibit 10.9

 

MASTER SUPPLY AGREEMENT

This Master Supply Agreement (the “Agreement”) is entered into and effective as of September 10, 2020 (the “Effective Date”), by and between FibroGen, Inc., a Delaware corporation, having its principal place of business at 409 Illinois Street, San Francisco, California 94158, United States of America (“FibroGen”); and AstraZeneca UK Limited., a company incorporated in England under No. 364842 whose registered office is at 1 Francis Crick Avenue, Cambridge Biomedical Campus CB2 0AA, England (“AstraZeneca”). AstraZeneca and FibroGen may be referred to individually as a “Party”, and collectively as the “Parties”.  AstraZeneca and each of its Affiliates shall collectively be referred to herein as “AstraZeneca”.  FibroGen and each of its Affiliates shall collectively be referred to herein as “FibroGen”.

RECITALS

WHEREAS, FibroGen owns or controls certain technology and intellectual property relating to the compound known as roxadustat (or FG-4592); 

WHEREAS, AstraZeneca and FibroGen are parties to that certain Amended and Restated License, Development and Commercialization Agreement, entered into as of October 16, 2014 and effective as of July 30, 2013 (the “Collaboration Agreement”), under which FibroGen granted AstraZeneca certain rights to joint continued development and commercialization of roxadustat in the Territory (as defined below); and

WHEREAS, as contemplated in the Collaboration Agreement, AstraZeneca and FibroGen now desire to memorialize terms under which FibroGen will supply Product (defined below) to AstraZeneca for AstraZeneca’s use in commercialization, including labeling and packaging of products containing roxadustat, on the terms set forth below.  

AGREEMENT

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

ARTICLE 1
DEFINITIONS

The following capitalized terms, whether used in the singular or plural, shall have the meanings ascribed to them below for purposes of this Agreement:

 

	
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1.1“Affiliate” means, with respect to either Party, any other corporation or business entity that directly, or indirectly through one or more intermediaries, controls, is controlled by or is under common control with such Party.  For purposes of this definition, the term “control” means direct or indirect ownership of more than fifty percent (50%) of the outstanding voting securities or other ownership interests or the power to direct or cause the direction of the management or policies of such entity, whether through the ownership of voting securities, by contract, or otherwise.  

1.2“Annual Net Sales” has the meaning set forth in the Collaboration Agreement. 

1.3“API” means the active pharmaceutical ingredient roxadustat, also known as FG-4592 or AZD9941.

1.4“API Batch(es)” means the quantity of active pharmaceutical ingredients produced per batch(es) actually produced by FibroGen’s then-current manufacturer.   

1.5“Applicable Law(s)” means all laws, rules, and regulations in the Territory applicable to the activities performed under this Agreement.   

1.6“AstraZeneca Sublicensee” means a Sublicensee, as such term is defined in the Collaboration Agreement. 

1.7“Batch(es)” means a specific quantity defined in Exhibit A of Bulk Drug Product that is intended to have uniform character and quality, within specified limits.

1.8“Binding Period” shall have the meaning ascribed in Section 3.1of this Agreement.

1.9“Bulk Drug Product” means drug product containing API, in a formulation consistent with the Specifications (including, but not limited to a tablet formulation) and packaged in accordance with the Specifications, supplied in bulk by FibroGen to AstraZeneca.

1.10“Calendar Year” means each successive period of twelve (12) calendar months commencing on January 1.  

1.11“Certificate of Analysis” means a document certifying that a particular Batch of Product was tested and conforms to the Specifications and the Quality Assurance Agreement. Unless otherwise agreed to in a signed writing by both Parties, the Certificate of Analysis shall be in the English language. 

1.12“Certificate of Compliance” means a document that states a particular Batch of Product was manufactured in compliance with the Quality Assurance Agreement and: (a) lists the manufacturing date, unique Batch number, Product number, and quantity of Product in such Batch; (b) certifies that such Batch was manufactured in accordance with all Applicable Laws, including cGMP; and (c) certifies all excursions and investigations associated with the Batch have been closed and found not to impact the Batch.  The Parties shall from time to time agree upon a format or formats for the Certificate of Compliance to be used under this Agreement. Unless otherwise agreed to in a signed writing by both Parties, the Certificate of Compliance shall be in the English language.

 

		
	
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1.13“cGMP” means the current good manufacturing practices for the manufacture of pharmaceutical products, including but not limited to: (a) the United States Federal Food, Drug, and Cosmetic Act, as amended (21 U.S.C. §321 et seq.) and the regulatory requirements for current good manufacturing practices as promulgated by the FDA thereunder, including without limitation 21 C.F.R. §§ 210, 211, and Part 11 (as applicable to electronic systems used in the manufacture of product); and/or (b) the regulatory requirements for current good manufacturing practices as promulgated by the International Conference on Harmonization (ICH), Guidance for Industry Q7A Good Manufacturing Practice Guidance for Active Pharmaceutical Ingredients; and/or the European Community Directive 2003/94/EC of October 8, 2003; and (c) the EC Guide to Good Manufacturing Practices for Medicinal Intermediate Products; and (d) 2003/94/EEC Directive (as supplemented by Volume 4 of EudraLex published by the European Commission), as amended, if and as implemented in the relevant constituent country; and (e) all additional applicable Regulatory Authority regulations that replace, amend, modify, supplant or complement any of the foregoing; and/or (f) any and all current Good Manufacturing Practices applicable to the manufacture, testing and/or any other processing of pharmaceutical products in other countries and territories worldwide where the respective Finished Products are sold or otherwise marketed from time to time provided that FibroGen is informed about such other Good Manufacturing Practices by AstraZeneca in accordance with Quality Assurance Agreement and FibroGen confirms in writing that it will comply with such other Good Manufacturing Practices within a reasonable time so as not to delay release of the Finished Product by AstraZeneca.

1.14“Confidential Information” has the meaning given to such term in the Collaboration Agreement.   

1.15“Control” or “Controlled” means possession of the right to grant a license or sublicense as provided for herein without violating (a) any law or governmental regulation applicable to such license or sublicense, or (b) the terms of any agreement or other arrangement with any Third Party that exists as of the Effective Date, or if such right is acquired after the Effective Date, as of the date the Party first gained possession of such right.

1.16“Definitive Price Per Tablet” has the meaning set forth in Section 6.1.1(c).

1.17“Delivery Year” has the meaning set forth in Section 6.5(a)(i) of the Collaboration Agreement.

1.18“Drug Product Blend” means [*] at the Product manufacturer.  For clarity, a “drug product blend” refers to a mixture that contains API, excipients and is lubricated and ready for compression into Bulk Drug Product.

1.19“Executed Batch Records” means the collection of records that provides a traceable history of how a Batch of Product was produced.

1.20“Facility(ies)” means the facility(ies) as described in Section 4.1 hereto.

1.21“FDA” means the United States Food and Drug Administration, or any successor agency thereto, having the administrative authority to regulate the marketing of human pharmaceutical products or biological therapeutic products in the United States.

 

		
	
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1.22“Finished Product” means Bulk Drug Product in finished packaging (performed by AstraZeneca) that is ready to be sold and/or has been sold to the public that includes Bulk Drug Product supplied hereunder.

1.23“Forecast(ing)” shall mean Rolling Forecast and Annual Forecast as defined in Section 3.1 and Section 3.2.1 respectively.

1.24“Generic Product” has the meaning set forth in the Collaboration Agreement.

1.25“Intellectual Property” means all Patents, copyrights, trade secrets, know-how, inventions, and all other intellectual property rights that are owned or Controlled by a Party (whether patentable or not), including all applications and registrations with respect thereto.  

1.26“JOC” means Joint Operations Committee as further defined in Section 2.2.

1.27“Latent Defects” has the definition set forth in Section 5.1.2.

1.28“Manufacturing Process” means the production process for the manufacture of Product.  

1.29“Manufacturing Services” has the meaning set forth in Section 2.1.

1.30“Net Sales” has the meaning set forth in the Collaboration Agreement. 

1.31“Non-Conforming” means with respect to Product, damage to or defect in any packaging, missing or defective documentation and such Product fails to conform to any of the requirements and acceptance criteria of this Agreement including the Specifications, Quality Assurance Agreement, and warranties set forth in Section 11.3, as applicable.

1.32“Order Acknowledgement” has the meaning set forth in Section 3.3.3.

1.33“Package(ing)” means such packaging as specified in the Specification.  

1.34“Patents” has the meaning set forth in Section 1.96 of the Collaboration Agreement.

1.35“Preliminary Price Per Tablet” has the meaning set forth in Section 6.1.1(a) hereof.

1.36“Product” shall mean Bulk Drug Product.  

1.37“Purchase Order” means a written order with a unique numbers submitted by AstraZeneca (or an Affiliate of AstraZeneca) to FibroGen, for FibroGen to manufacture (or have manufactured) and deliver on specified delivery dates, and AstraZeneca to purchase, a specific quantity of Product, as provided in Section 3.1

1.38“Quality Assurance Agreement” has the meaning set forth in Section 9.1 hereof.

 

		
	
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1.39“Quality Matters” has the meaning set forth in Section 8.1 of this Agreement.

1.40“Quantity Shortfall” means the quantity Transferred by Transfer Date by FibroGen to AstraZeneca is [*] of the scheduled Transfer Date.

1.41“Raw Material” means all excipients, components, and Packaging that are required to perform the Manufacturing Services, and shall exclude Finished Product labeling or packaging for sale to end users in the Territory.

1.42“Regulatory Authority(ies)” means the FDA, or any court or government body or other applicable, national, supra-national, multi-national, state, foreign, provincial, regional or local regulatory agency, department, board, commission, bureau, body or other regulatory or administrative government entity, involved in or responsible for regulation of the Product and relevant subject, as the context requires in this Agreement.

1.43“Regulatory Filing” means any or all applications (including marketing authorization applications or new drug applications) submitted to Regulatory Authorities for the purpose of registering the Product, Finished Product, Specifications and/or the Manufacturing Process as required by statute or regulation, and any amendments or supplements thereto, and any other filings required by the Regulatory Authorities relating to the manufacture, testing, sale or distribution of Product and/or Finished Product (as applicable).

1.44“Requested Transfer Date” means the date of delivery AstraZeneca requested in Purchase Order according to the terms of this Agreement, and is subject to Section 3.3.1.

1.45“RoW” has the meaning set forth in the Collaboration Agreement.

1.46“Shelf Life” means [*].

1.47“Shipping Requirements” means AstraZeneca’s methods of packaging, monitoring and shipping any and all Product, or as specified in a given Purchase Order in accordance with this Agreement.

1.48“Specifications” means the applicable Specifications for the Product agreed on by the Parties and as defined in the Quality Assurance Agreement.

1.49“Stockpile” or “Stockpiled” shall have the mean the safety stock as  described in Section 3.4.1.

1.50“Subcontractor” means any independent entity that FibroGen contracts to perform any Manufacturing Services or meet any obligations that are required under the terms and conditions of this Agreement, as further described in Section 4.5.

1.51“Supply Failure” means the failure by FibroGen to Transfer at least [*] of Product ordered by AstraZeneca during any [*] period under this Agreement.

 

		
	
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1.52“Territory” has the meaning set forth in the Collaboration Agreement.

1.53“Third Party” means any party other than AstraZeneca, FibroGen, and their respective Affiliates.

1.54“Total Definitive Price” has the meaning set forth in Section 6.1.1(c).

1.55“Total Preliminary Price” has the meaning set forth in Section 6.1.1(c).

1.56“Transfer” means in the case of FibroGen, to deliver Product to AstraZeneca pursuant to Section 5.3.

1.57“Transfer Date” means the date specified for Transfer of Product in accordance with this Agreement, which shall be specified in the Purchase Order.

ARTICLE 2
SUPPLY ARRANGEMENT

2.1General Supply.  This Agreement establishes the general terms and conditions applicable to FibroGen’s manufacturing and supply of Product to AstraZeneca.  Subject to the terms and conditions of this Agreement, FibroGen hereby agrees, either directly or through one or more Third Party Subcontractors, to manufacture and supply AstraZeneca with the amounts of Product ordered by AstraZeneca in accordance with (and consistent with) its Forecasts and the other ordering terms of this Agreement. Such manufacture and supply of Product (collectively, the “Manufacturing Services”) shall be performed in the manner consistent with industry standards and in compliance with the terms and conditions of the Forecast, this Agreement, the Quality Assurance Agreement, the Specifications, and all Applicable Laws. [*].  If a new Product manufacturer is used by FibroGen, as agreed by the Parties and in accordance with the Quality Agreement (or a new Product Specification is agreed on and/or any other aspect of manufacture, including the facilities, equipment, processes, Raw Materials, Subcontractors, vendors, or record-keeping procedures), [*].  

2.2Joint Operations Committee. AstraZeneca and FibroGen shall establish a joint operations committee (the “Joint Operations Committee” or “JOC”) consisting of [*] appointed by each party meeting quarterly or as otherwise scheduled.  The JOC shall be responsible for reviewing the ongoing relationship of the Parties, reviewing Rolling Forecasts and FibroGen’s planning for purchasing API and intermediates to meet the demands in the Rolling Forecasts, considering and attempting to achieve resolution of any disputes referred to it and addressing such other matters as the Parties may mutually agree.  The JOC must agree [*] in order to act.  For the avoidance of doubt, the JOC is not authorized to amend this Agreement.  

2.3Exclusive Arrangement.  Subject to the terms and conditions of this Agreement, AstraZeneca agrees to purchase from FibroGen, and FibroGen agrees to manufacture and supply to AstraZeneca, subject to Section 17.1 (Term).  FibroGen shall be free to supply Product to any Third Party worldwide, subject to the exclusive rights granted to AstraZeneca pursuant to the Collaboration Agreement. For clarity and pursuant to Section 6.1 of the Collaboration Agreement, FibroGen shall have the right to manufacture Product outside the Territory to fulfill its supply obligations under this Agreement and the Collaboration Agreement.  Subject to the terms of the Collaboration Agreement, FibroGen 

 

		
	
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shall have the right to satisfy its obligations under Article 6 of the Collaboration Agreement through a Third Party contract manufacturer.  In connection with FibroGen’s manufacture of Products for use under the Collaboration Agreement, FibroGen shall have the right to manufacture in the Territory for supply of products under the Astellas Agreements (defined in the Collaboration Agreement).

ARTICLE 3
FORECASTS AND PURCHASE ORDERS

3.1Forecasts. During the [*] for the term of this Agreement, AstraZeneca shall provide FibroGen a good faith monthly rolling forecast of its anticipated Product requirements  comprised of Bulk Drug Product tablets for the next [*], as set forth in Exhibit A, and will commence on [*] (each, a “Rolling Forecast”). Each Rolling Forecast shall set forth the month during which the Requested Transfer Dates shall occur for each delivery of Product. The first [*] of any Rolling Forecast shall be a binding commitment on AstraZeneca (the “Binding Period”). 

3.2The Parties agree that FibroGen shall rely on the Rolling Forecast for FibroGen’s manufacture of API to meet such Rolling Forecast. [*].  In addition, the JOC shall review the Rolling Forecast and planning for purchase of API and intermediates planning.

3.2.1In addition, at least [*], AstraZeneca shall provide a non-binding forecast that covers [*] of AstraZeneca’s best estimates of its anticipated delivery requirements for Products [*]. 

3.3Product Purchase Order(s)

3.3.1If a Purchase Order is not consistent with all of the applicable Rolling Forecasts, then FibroGen shall use reasonable efforts to manufacture such excess amounts but shall not be obligated to supply such amount. 

3.3.2Each Purchase Order complying with the requirements of this Article 3 and consistent with the Rolling Forecast shall, following FibroGen’s Order Acknowledgement of the Purchase Order, be valid and binding and shall be part of and incorporated into this Agreement and subject to all of the terms and conditions of this Agreement.    

3.3.3Each Purchase Order shall specify: 

(a)[*];

(b)[*].

(c)[*];

(d)AstraZeneca’s order number;

(e)AstraZeneca’s and FibroGen’s stock keeping unit (SKU); 

 

		
	
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(f)[*]

3.4[*].  

3.4.1API Stockpile. AstraZeneca may choose to ensure adequate API supply for upside demand (above what is originally forecasted for a time period) by collaborating with FibroGen to initiate an API stockpiling plan. Concurrent with the Forecasts provided in Section 3.1, AstraZeneca may propose a non-binding schedule for quantities of API it would like to have Stockpiled during the applicable time periods. FibroGen will provide feedback at the JOC on what quantities of Stockpiles are practicable for different lead times.  AstraZeneca shall submit orders to FibroGen for any agreed quantities of API for stockpiling purposes.

3.4.2If there is any material conflict between a Purchase Order or an Order Acknowledgement and the terms and conditions of this Agreement, this Agreement prevails, followed by the Purchase Order, and such conflicting terms are rejected and of no effect, unless the Parties mutually agree otherwise in writing.

3.5Shortfalls in Supply.  In the case of an anticipated Quantity Shortfall, FibroGen shall promptly inform AstraZeneca in writing and provide AstraZeneca with a reasonably detailed description of the Quantity Shortfall, and a proposed plan for delivering the remaining amounts of the corresponding Purchase Order. FibroGen shall use reasonable commercial efforts to allocate an amount of its remaining manufacturing capacity to supply the remaining amounts [*] and according to the schedule as agreed by Parties.

3.6Supply Failure. In the case of a Supply Failure, FibroGen and AstraZeneca shall meet and work together reasonably and in good faith to seek a prompt and commercially reasonable solution to the problem causing the Supply Failure. FibroGen shall use reasonable commercial efforts to cure such failure as soon as practicable.  As soon as FibroGen becomes aware FibroGen shall promptly inform AstraZeneca in writing and provide AstraZeneca with a reasonably detailed explanation why there is or will be a Supply Failure and an indication when Transfer of the full Product to be supplied to AstraZeneca pursuant to the applicable Purchase Order is expected. The Parties will discuss the Supply Failure and possible remedies for such Supply Failure at the JOC. [*]. For clarity, a Supply Failure will not be deemed to occur if (and to the extent that) (i) such failure is caused by a force majeure event as set out in Article 18.1, (ii) such failure is due to the Parties’ good faith dispute as to whether the Product conforms to the Specifications, or is Non-Conforming pursuant to Section 5.1 hereof.

ARTICLE 4
OTHER MANUFACTURING OBLIGATIONS

4.1Permits.  FibroGen or its Subcontractors shall be responsible for all permits, licenses, and scheduling related to the manufacturing facilities at which Bulk Drug Product is manufactured by or for FibroGen (the “Facilities”) and for the operation of such Facilities in compliance with all Applicable Law, including cGMP.  FibroGen shall be wholly accountable and liable for the safety, health and environmental aspects of all work performed on its or any of its Subcontractor’s premises.

 

		
	
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4.2Manufacturing Standards.  FibroGen, either directly or through one or more Third Party Subcontractors, shall manufacture all Product in accordance with Applicable Law including all applicable cGMPs and industry standards, and in compliance with the terms and conditions of the applicable Purchase Order, this Agreement, and the Quality Assurance Agreement.

4.3Documentation for Manufacture of Bulk Drug Product. FibroGen shall keep complete, accurate accounts, data and records pertaining to the manufacture of the Bulk Drug Product, including without limitation (a) Executed Batch Records for Product manufactured in accordance with cGMP and (b) any other records required to be maintained under the Collaboration Agreement, Quality Assurance Agreement, or Applicable Laws.  FibroGen shall retain all such records for a period of at least five (5) years following the date of manufacture, or longer if required by the Quality Assurance Agreement or Applicable Laws, and shall provide such records to AstraZeneca upon reasonable advance notice.  FibroGen shall notify AstraZeneca in writing prior to the destruction of any records retained under this Section and, at AstraZeneca’s request, shall transfer such records to AstraZeneca at AstraZeneca’s reasonable expense.

4.4Analytical Testing.  FibroGen, or a designated Subcontractor, shall perform the analytical testing on Raw Materials and Bulk Drug Products as set forth in the Specifications and Quality Agreement, and/or as otherwise agreed to in a signed writing by FibroGen and AstraZeneca.

4.5Subcontracting.  FibroGen has the right to subcontract some or all of the Manufacturing Services to whichever Third Parties it desires to use who meet the quality standards agreed by the Parties, and to the extent that AstraZeneca has genuine concerns and can demonstrate with reasonable documentation to FibroGen the basis for its concern with respect to the performance of the work for which the Subcontractor is to be engaged, the choice of such Subcontractor shall be subject to AstraZeneca’s approval.  In the event that FibroGen retains a Subcontractor, FibroGen shall remain fully liable to AstraZeneca for performance of FibroGen’s obligations under this Agreement and the Quality Assurance Agreement.

4.6Governance.  For any governance issues hereunder required to be resolved by the approval of both Parties, the JOC shall make such determinations.  

4.7Expectations of Third Parties.  FibroGen recognizes AstraZeneca’s commitment to working only with suppliers who embrace standards of ethical behaviour that are consistent with the AstraZeneca’s Global Standard:  Expectations of Third Parties which can be found at: https://www.astrazeneca.com/content/dam/az/Sustainability/2018/Global%20Standard%20Expectations%20of%20Third%20Parties%20final.pdf , as amended from time to time, and in particular those principles headed “Anti-Bribery and Anti-Corruption” (“Supplier Expectations”), which are attached as Exhibit B and hereby incorporated into this Agreement.

 

		
	
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4.8Anti-Bribery and Anti-Corruption.  Each Party represents and warrants to the other Party that neither it nor any of its employees, agents or other representatives has or will perform any of the following acts, either directly or through a Third Party, in connection with this Agreement: (i) pay, offer or promise to pay, or authorize the payment of, any money; (ii) give or promise to give, or authorize the giving of, any services or anything else of value; or (iii) enter into any other transactions, to or with any official or employee of any governmental authority or instrumentality, or of a public international organization, or of any agency or subdivision thereof, or to any political party or official thereof or to any candidate for political office, in each case for the purpose of: (1) influencing any act or decision of that person in his/her official capacity, including a decision to fail to perform his/her official functions with such governmental agency or instrumentality or such public international organization or such political party; (2) inducing such person to use his/her influence with such governmental agency or instrumentality or such public international organization or such political party to affect or influence any act or decision thereof; or (3) securing any improper advantage, for the prevention of fraud, bribery and corruption, racketeering, money laundering or terrorism, and product safety, including the US Foreign Corrupt Practices Act, the UK Bribery Act, the US Drug Quality and Security Act (“DQSA”) and the European Parliament Falsified Medicines Directive (Directive 2011/62/EU) (“FMD”).

4.9Trade Controls:  Each Party represents, warrants and undertakes that it is not on any applicable official national or international sanctioned party lists and that performance of this Agreement will not violate applicable embargo regulations.  Each Party has the right, at such Party’s sole expense, to conduct screening checks of the other Party, including verification of such other Party’s identity, including full name, country location and address, against official national and international sanctioned party lists and embargo regulations.

4.10Destruction of Waste.  FibroGen shall cause all waste generated on mutually acceptable timelines, during the Term and upon termination of this Agreement or a Purchase Order, to be destroyed. Such waste shall be secured pending destruction. FibroGen or its Subcontractors shall keep a record of destruction of any waste and promptly issue certificates of destruction.  The records shall be kept for a period of at least two years and made available to AstraZeneca on written request.

4.11Standard Operating Procedures. FibroGen shall procure that any Subcontractors shall maintain standard operating procedures and full records detailing production amounts and the dispersal of produced Products to ensure that Product security features of the Products are secured and controlled. The records and standard operating procedures shall be kept for a period of at least two (2) years and made available to AstraZeneca on request.

4.12Subcontractors FibroGen shall include in all of its contracts with its subcontractors for the supply of Products carrying AstraZeneca’s name, insignia, symbol, trademark, trade name, logotype or similar, provisions similar to this Article 4.

4.13Security Measures.  Products shall be delivered by FibroGen in a secure manner appropriate to the transportation route and destination and according to the Specifications. [*].

 

		
	
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4.14Security Breaches. Each Party will ensure that all FibroGen Materials, including  Product, while under their respective supervision and control (or that of its Affiliates or authorized subcontractors) are under appropriately secure conditions with procedures in place to (a) protect the materials against diversion and theft, detect counterfeit and take measures therefrom, and (b) include mechanisms for full accounting and reconciliation of such FibroGen Materials, including  Product, in each case, as may be more fully set forth under the Quality Agreement.  Each Party will promptly notify the other should any breach or discrepancy thereof occur, and each Party will work cooperatively with the other to amicably resolve any such breach or discrepancy thereof, as directed by the Parties’ Joint Product Security Advisory Committee. Any incident of breach of the security of the Products, machinery, other tools of production or information pertaining to this Agreement or the relevant Purchase Order shall be reported to the other Party within [*] of such incident. Each Party shall provide all reasonable assistance to the other Party during any investigation that such other Party may initiate in relation to such incident.

4.15Improvement Plan.  Either Party shall have the right to audit the other Party, its Affiliates and authorized Subcontractors to ensure adherence to this Article 4, and each Party may request that the Parties agree on an improvement plan containing measures to be taken by such other Party to address any concerns that emerge. 

ARTICLE 5
ACCEPTANCE/REJECTION; TRANSFER

5.1Evaluation of Product.

5.1.1Documentation and Product Review. Each shipment of Product Transferred to AstraZeneca shall be accompanied by (a) the Batch Records including a Certificate of Analysis and a Certificate of Compliance, and (b) an invoice. Within [*], AstraZeneca shall determine whether the deliverables (comprised of such Batch containing Product, packaging, and relevant Batch Records) are conforming or Non-Conforming pursuant to the Specifications, the Quality Agreement and this Agreement. Upon failure of AstraZeneca to respond by [*], the Batch shall be deemed accepted and, AstraZeneca shall have no right to reject such Batch and such Product shall be deemed “Accepted”. If, however, within [*], AstraZeneca makes a determination that there is Non-Conforming Product, AstraZeneca shall promptly notify FibroGen of such determination that a Batch does not conform to the Specifications or is otherwise Non-Conforming, and provide a sample of the alleged Non-Conforming Product if reasonably appropriate (a “Complaint”), then FibroGen shall conduct an appropriate investigation in its discretion to determine whether FibroGen agrees with AstraZeneca that Product is Non-Conforming Product and to determine the cause of any nonconformity. 

5.1.2Latent Defects. The Parties recognize that some Product may be Non-Conforming, but that such nonconformity cannot reasonably be discovered [*] (“Latent Defects”).  If Bulk Product contains a Latent Defect and AstraZeneca promptly notifies FibroGen of the details of such Latent Defect within [*], AstraZeneca shall have the right to bring a Complaint to FibroGen for Non-Conforming Product, together with a sample of the Product containing the alleged Latent Defect unless not reasonably possible and this Section 5.1 shall apply.

 

		
	
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5.1.3Cooperation in Investigations; Disposition of Non-Conforming Product. In the event that the Parties do not agree on whether a Product is Non-Conforming, the Parties shall promptly meet in good faith to determine the origin of the Non-Conformance, including by review of any applicable reserve samples of the applicable Batch of Product retained at FibroGen and through Sections 5.1 and 5.2 hereof, which shall apply if there is a dispute between the Parties regarding whether the Product is Non-Conforming and procedures used to generate and test the Product.  If, [*] of such discussion (or such other time period that the Parties might agree), the Parties are still unable to agree on whether or not such Product is Non-Conforming, the Parties shall submit the Product in question to a mutually agreed independent Third Party expert nominated by the JOC that has the capability of testing the Product to determine (a) whether or not is Non-Conforming; and if possible (b) whether FibroGen (or its Subcontractors) or AstraZeneca (or its subcontractors) caused the Non-Conformance. [*]. If the Third Party expert accepts only the instruction to determine whether or not it is Non-Conforming, then the Parties will proceed with the instruction and the remainder of this Section will apply to the Third Party expert’s decision. The determination by such independent Third Party expert is final, absent a clear error in numerical calculation or analysis.  [*].  For the avoidance of doubt, where the independent Third Party expert does not determine the cause of, or which Party caused the Non-Conformance, then AstraZeneca and FibroGen shall have good faith discussions to agree on how the unknown cause of the Non-Conformance shall be resolved. 

5.2Remedy for Non-Conforming Product.  

5.2.1If FibroGen agrees with AstraZeneca, or if the independent Third Party expert retained under Section 5.1.3 determines, that certain units of Product are Non-Conforming and such non-conformance is reasonably believed to have been caused by FibroGen (or its Subcontractors), [*].  If the independent Third Party expert reasonably believes that such Non-Conforming Products was caused by AstraZeneca (or its subcontractors), [*]. If the independent Third Party expert cannot reasonably determine or reasonably attribute the cause of the non-conformity, the Parties agree to collaboratively and equally share [*].   

5.2.2FibroGen shall cooperate with AstraZeneca in determining the cause of any Non-Conformance, including quality problems involving a Product, identifying corrective/preventive actions and ensuring the implementation and effectiveness thereof.

5.3Transfer Terms and Instructions; Storage.  Pursuant to the Collaboration Agreement, Transfer of Bulk Drug Product shall be made Ex Works (EXW Incoterms 2010) at Facility, and title with all risk of loss shall transfer to AstraZeneca upon such Transfer. If the Purchase Order does not specify disposition of Product, FibroGen will store such Product in accordance with the storage requirements (as defined in the Specifications and the MBR, as applicable, and this Agreement) until such time as AstraZeneca requests shipment or other disposition or use of such Product, and Transfer of such items to AstraZeneca shall occur upon placement into storage. AstraZeneca shall be solely responsible for arranging for customs, transportation and importation of Bulk Drug Product into the destination country (or, if applicable, intermediary countries along the shipping route).  AstraZeneca shall bear the costs of such carrier, including the costs of insurance of the shipment, and all customs, duties, sales taxes and other governmental charges related to the transportation, storage, and importation and sale of Bulk Drug Product and Finished Product. FibroGen shall Transfer each shipment of Bulk Drug Product by the confirmed Transfer Date, and, if reasonably requested by FibroGen, FibroGen may 

 

		
	
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Transfer and AstraZeneca shall pick up Purchase Orders as they are ready for collection and in accordance with this Agreement.

5.3.1Storage. If AstraZeneca fails to take possession of Bulk Drug Product on any scheduled Transfer Date FibroGen shall, through its manufacturer, store such Bulk Drug Product and have the right to invoice AstraZeneca following such scheduled Transfer Date for reasonable administration, handling and storage costs incurred.  FibroGen will store API for the manufacture of Bulk Drug Product to meet AstraZeneca’s Rolling Forecasts.  

5.3.2However, for any API which FibroGen was planning to use for Bulk Drug Product that is removed from a Rolling Forecast or not ultimately ordered pursuant to Article 3 (“Excess API”), and provided that FibroGen’s aggregate third party storage costs of such Excess API are expected to exceed [*] USD during any [*] month period, FibroGen will so notify AstraZeneca and provide to AstraZeneca reasonable written documentation of the storage costs and Excess API volume relevant to the Rolling Forecast, and then FibroGen may elect to transfer the storage of such Excess API to a mutually approved AstraZeneca facility. Such storage into the AstraZeneca facility are for the benefit of both Parties in mitigating further warehousing costs and thus, such AstraZeneca’s storage services (which includes storage services by AstraZeneca’s third parties) will be provided [*].  Notwithstanding such storage arrangement, Excess API that is warehoused in an AstraZeneca (or AstraZeneca’s Third Party) facility is and shall continue to be FibroGen’s exclusive property, and FibroGen may freely move or transfer any such product from the AstraZeneca facility (or AstraZeneca Third Party facility) at any time.  For clarity, storage of Excess API under this Section is at a convenience to AstraZeneca and does not affect or extend the Excess API ownership or the Product’s Transfer Date.  

ARTICLE 6
PAYMENTS; INVOICING 

6.1Payments for Transfer of Bulk Drug Product.  Pursuant to Section 6.5(a) of the Collaboration Agreement, FibroGen will supply to AstraZeneca (or its designated Affiliate or AstraZeneca Sublicensee) Bulk Drug Product for commercial use at a transfer price equal to [*] during the Calendar Year in which such Bulk Drug Product is Transferred.  

6.1.1Invoicing at Transfer and Annual True Up.  

(a)The Parties shall agree on an initial preliminary transfer price per tablet for each strength (the respective “Preliminary Price Per Tablet”), which shall be equal to [*] multiplied by the “Estimated Average Selling Price Per Tablet”, which is defined as the fraction (A)/(B), where (A) shall be the estimated [*] for such strength in the Territory for the following Delivery Year and (B) shall be the estimated [*] in the Territory during such Delivery Year (all estimations and currency exchanges to be made by the Parties in good faith), provided that for the first Delivery Year, AstraZeneca will provide the estimated Preliminary Price Per Tablet fifteen (15) days before the first order of Product.  For any currency conversions used by AstraZeneca, AstraZeneca will include with any applicable reports the exchange rates used for such sales. For all subsequent years, the Preliminary Price Per Tablet will be defaulted to equal the most recent Definitive Price Per Tablet. In any given Delivery Year, where an event can be anticipated which means this is not 

 

		
	
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appropriate, the Preliminary Price Per Tablet can revert to the original calculation (i.e. [*]).  For clarity, in each Delivery Year, there will be a Preliminary Price Per Tablet calculation for every tablet strength.

(b)FibroGen will invoice AstraZeneca upon Transfer of each shipment of Bulk Drug Product [*]. AstraZeneca will pay within [*] after its receipt of such invoice.  

(c)Within [*] following the end of each Delivery Year, the Parties will calculate the definitive transfer price per tablet for each strength (“Definitive Price Per Tablet”) for such year, which shall be equal to [*] multiplied by the fraction (A)/(B), where (A) shall be the actual [*] for such strength during the Delivery Year and (B) shall be the actual [*] in the Territory during such Delivery Year (excluding [*]). For clarity, in each Delivery Year, there will be a Definitive Price Per Tablet calculation for every tablet strength ordered by AstraZeneca. 

(d)For each strength of Bulk Drug Product, a reconciliation is performed by calculating the difference between the most recent Preliminary Price Per Tablet and the Definitive Price Per Tablet for the previous calendar year multiplied by the number of tablets of Bulk Drug Product (a) Transferred the previous Delivery Year; (b) held in AstraZeneca’s inventory at the beginning of the previous Delivery Year; plus (c) Transferred in the current Delivery Year prior to the reconciliation (thus marking to market all such product) (the “Total Reconciliation Amount”).  If the Definitive Price Per Tablet exceeds the Preliminary Price Per Tablet, then AstraZeneca shall pay the Total Reconciliation Amount to FibroGen within [*] after its receipt of an invoice from FibroGen for such amount. If the Preliminary Price Per Tablet exceeds the Definitive Price Per Tablet, FibroGen shall issue a credit note to AstraZeneca for the Total Reconciliation Amount. AstraZeneca shall be entitled to set off the amount due under the credit note against any subsequent payments owed by AstraZeneca to FibroGen under the Collaboration Agreement (or, in the absence of any such subsequent payments, such credit note shall be settled by FibroGen within [*] after its receipt thereof).

(e)Quarterly Reporting. Within fifteen (15) calendar days following the end of each Calendar Quarter, AstraZeneca shall report to FibroGen an estimate of its aggregate Net Sales and the number of tablets sold of Drug Product for each strength in the Territory. 

6.2Additional Costs. Additional services or change orders must be agreed on in advance by the Parties and invoiced separately.   

6.4Taxes and fees.  All taxes including sales and use taxes, VAT, duties, surcharges, withholding taxes, and other amounts (excluding taxes based on net income and franchise taxes) assessed in respect of Product and as applicable, Final Product or in connection with the sale or delivery of Product and Final Product hereunder, whether assessed prior to or upon provision or sale, and whether assessed on AstraZeneca or FibroGen, are the responsibility of AstraZeneca, and either AstraZeneca shall reimburse FibroGen for all such sales and use taxes, VAT, duties, surcharges, withholding taxes or other amounts paid by FibroGen or such sums will be added to invoices directed at AstraZeneca. If any deduction or withholding in respect of tax or otherwise is required by the applicable treaty to be made from any of the sums payable hereunder, AstraZeneca shall be obliged to pay to FibroGen such greater sum as will leave FibroGen, after deduction or 

 

		
	
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withholding as is required to be made, with the same amount as it would have been entitled to receive in the absence of any such requirement to make a deduction or withholding.  

6.5Adjustment for Generic Entry. Pursuant to Section 6.5(c) of the Collaboration Agreement, if at any time FibroGen’s net margin percentage on any Bulk Drug Product supplied to AstraZeneca falls [*] after a Generic Product (defined in the Collaboration Agreement) is sold in any country in the Territory, FibroGen shall have the right to renegotiate the manufacturing and supply payment terms under this Agreement and the Quality Assurance Agreement.  Upon FibroGen’s request, the Parties shall renegotiate reasonable terms in good faith, taking into account also the overall profitability of such Finished Product to AstraZeneca.

ARTICLE 7
REGULATORY OBLIGATIONS

7.1Regulatory Matters Generally.  The Parties’ respective rights and obligations with respect to Regulatory Filings, communications with Regulatory Authorities, Finished Product recalls, and other regulatory matters relating to Product and/or Finished Product (as applicable) are set forth in the Collaboration Agreement and/or the Quality Assurance Agreement.

ARTICLE 8
SAFETY; ADVERSE EVENT REPORTING

8.1Safety.  In accordance with the safety or pharmacoviligence agreement, each Party shall promptly notify the other of any information or notice of which it becomes aware concerning the Product and Finished Product, including, without limitation, any threatened or pending action by any Regulatory Authority. 

8.2Adverse Event Reporting/Handling.  Reporting shall be set forth in the safety or pharmacovigilance agreement. 

ARTICLE 9
QUALITY ASSURANCE 

9.1Quality Assurance Agreement. The Parties shall agree upon and execute a quality assurance agreement to cover the manufacture, supply and production of Bulk Drug Product(s) by FibroGen to AstraZeneca and other responsibilities of the Parties with respect to Finished Product pursuant to the requirements set forth in the Collaboration Agreement (“Quality Assurance Agreement”), as may be amended from time to time by a signed writing of the Parties.  The Quality Assurance Agreement shall set forth the responsibilities of the Parties with respect to quality assurance, document retention, notification obligations, audit and inspection rights, and similar matters with respect to the manufacture of Product and Finished Product (as applicable) including Finished Product recalls and withdrawals, returned goods, and authorization for Finished Product recalls, and other such matters as described in Exhibit K of the Collaboration Agreement (“Quality Matters”). The Parties agree that the Quality Assurance Agreement shall be amended prior to the inclusion of Finished Product intended to be manufactured for markets other than Territory.  AstraZeneca agrees to 

 

		
	
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provide FibroGen with written notification at least [*] prior to AstraZeneca’s filing of Regulatory Filings (including marketing authorization applications) in such other markets. A breach of the Quality Assurance Agreement constitutes a breach of this Agreement. If there is any inconsistency between the Quality Assurance Agreement and this Agreement, the Quality Assurance Agreement shall take precedence for all quality matters and this Agreement for all other matters.

9.2Quality Control.  FibroGen shall ensure that all Product manufactured for supply to AstraZeneca pursuant to this Agreement is subject to quality control testing in conformance with cGMP regulatory standards.

9.3Responsibility for Quality Assurance and Quality Control.  Responsibility for quality assurance and quality control of Bulk Drug Product shall be allocated between AstraZeneca and FibroGen as set forth in the Quality Assurance Agreement.

9.4Audits. AstraZeneca shall carry out audits pursuant to the Quality Assurance Agreement.

9.5Shelf-Life.  FibroGen shall only supply Bulk Drug Product that has used up [*] at Transfer (unless otherwise agreed in advance with AstraZeneca).

ARTICLE 10
OWNERSHIP OF INTELLECTUAL PROPERTY AND MATERIALS

10.1Intellectual Property.  This Agreement shall not affect the ownership of any Intellectual Property owned by or licensed to either Party or any rights granted in the Collaboration Agreement with respect to such Intellectual Property.

ARTICLE 11
REPRESENTATIONS AND WARRANTIES

11.1AstraZeneca.  AstraZeneca hereby represents and warrants to FibroGen that, as of the Effective Date:

11.1.1Power and Authority.  AstraZeneca is duly formed and validly existing under the laws of its jurisdiction of formation and has all requisite corporate power and authority to execute and enter into this Agreement and to perform its obligations hereunder.

11.1.2Execution, Delivery and Performance of the Agreement.  AstraZeneca has taken all necessary corporate action on its part to authorize the execution and delivery of this Agreement and the performance of its obligations under this Agreement.  This Agreement has been duly executed and delivered on behalf of AstraZeneca, and constitutes a legal, valid, binding obligation, enforceable against AstraZeneca and its successors and assigns in accordance with its terms and conditions.  

 

		
	
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11.2FibroGen.  FibroGen hereby represents and warrants to AstraZeneca that, as of the Effective Date:

11.2.1Power and Authority.  As of the Effective Date, FibroGen is duly formed and validly existing under the laws of its jurisdiction of formation and has all requisite corporate power and authority to execute and enter into this Agreement and to perform its obligations hereunder.

11.2.2Execution, Delivery and Performance of Agreement.  FibroGen has taken all necessary corporate action on its part to authorize the execution and delivery of this Agreement and the performance of its obligations under this Agreement.  This Agreement has been duly executed and delivered on behalf of FibroGen, and constitutes a legal, valid, binding obligation, enforceable against FibroGen in accordance with its terms.  The execution, delivery and performance of this Agreement does not breach, conflict with, violate, contravene or constitute a default under any contracts, arrangements or commitments to which FibroGen is a party or by which it is bound nor does the execution, delivery and performance of this Agreement by FibroGen violate any order, law or regulation of any court or Regulatory Authority having authority over it.

11.2.3Confidential Information.  FibroGen has the right to supply to AstraZeneca the Confidential Information that is supplied by FibroGen to AstraZeneca.

11.2.4Debarment. FibroGen does not and shall not employ, contract with or retain any person directly or indirectly to perform Manufacturing Services under this Agreement or any Purchase Order if such person is debarred under 21 U.S.C. 335a(a) or 335a(b), or other equivalent laws, rules, regulations or standards of any other relevant jurisdiction (as may be amended from time to time).  FibroGen shall promptly disclose in writing to AstraZeneca if any FibroGen employee, Subcontractor, or agent is debarred, or if any action or investigation is pending or, to the best of FibroGen’s knowledge, threatened, relating to the debarment of FibroGen or any person performing Manufacturing Services related to this Agreement or any Purchase Order.

11.3Product Warranty.  FibroGen hereby represents and warrants to AstraZeneca that each Batch of Product: (a) will, at the time of Transfer, have been manufactured and analyzed in conformance with the then-current Quality Assurance Agreement, the then-current Specifications and cGMPs; (b) will, at the time of Transfer, conform to the Specifications in all material aspects; and (c) will be transferred free and clear of any liens or encumbrances of any kind.

11.4Expert Compliance.  Each Party acknowledges that information or materials disclosed in connection with the Manufacturing Services may be considered technical materials or data that is subject to compliance with the export control laws and regulations of the United States and other countries, and hereby agrees to comply with such laws to the extent they apply. 

ARTICLE 12
INDEMNIFICATION

12.1Indemnification by AstraZeneca.  Subject to Section 12.2, AstraZeneca shall indemnify, defend and hold FibroGen, FibroGen’s Affiliates, and their respective directors, officers, employees and agents (the “FibroGen 

 

		
	
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Indemnitee(s)”) harmless from and against all losses, damages, liabilities, settlements, penalties, fines, costs and expenses (including, without limitation, reasonable attorneys’ fees and expenses) (collectively, the “Losses”) incurred by FibroGen Indemnitees to the extent such Losses arise out of or result from any claim, lawsuit or other action or threat by a Third Party arising out of AstraZeneca’s [*]. 

12.2Indemnification by FibroGen.  Subject to Section 12.1, FibroGen shall indemnify, defend and hold AstraZeneca, AstraZeneca’s Affiliates, and their respective directors, officers, employees and agents (the “AstraZeneca Indemnitee(s)”) harmless from and against all Losses incurred by AstraZeneca Indemnitees to the extent such Losses arise out of or result from any claim, lawsuit or other action or threat by a Third Party arising out of [*], in each case except to the extent any such Loss arises out of or results from an AstraZeneca Indemnitee’s gross negligence, willful misconduct, or breach of this Agreement (including any Purchase Orders hereunder), and the Quality Assurance Agreement.  

12.3Indemnification Procedures.  

12.3.1Identification of Indemnitor and Indemnitee.  An “Indemnitor” means the indemnifying Party.  An “Indemnitee” means the indemnified Party and their respective directors, officers, employees and agents.

12.3.2Indemnification Procedures. An Indemnitee which intends to claim indemnification under Section 12.1 or Section 12.2 hereof shall promptly notify the Indemnitor in writing of any claim, lawsuit or other action in respect of which the Indemnitee or any of their respective directors, officers, employees and agents intend to claim such indemnification.  The Indemnitee shall permit, and shall cause their respective directors, officers, employees and agents to permit, the Indemnitor, at its discretion, to settle any such claim, lawsuit or other action and agrees to the complete control of such defense or settlement by the Indemnitor; provided, however, that such settlement shall not adversely affect the Indemnitee’s rights under this Agreement or impose any obligations on the Indemnitee in addition to those set forth herein.  Indemnitor shall not settle any claim that does not fully and unconditionally release the Indemnitee. No such claim, lawsuit or other action shall be settled without the prior written consent of the Indemnitor and the Indemnitor shall not be responsible for any legal fees or other costs incurred other than as provided herein.  The Indemnitee and their respective directors, officers, employees and agents shall cooperate fully with the Indemnitor and its legal representatives in the investigation and defense of any claim, lawsuit or other action covered by this indemnification, all at the reasonable expense of the Indemnitor.  The Indemnitee shall have the right, but not the obligation, to be represented by counsel of its own selection and expense.

ARTICLE 13
LIMITATION OF LIABILITY

13.1Disclaimer of Consequential Damages; Disclaimer of Warranty.  IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT, PUNITIVE OR EXEMPLARY DAMAGES (INCLUDING, WITHOUT LIMITATION, LOST PROFITS, LOSS OF BUSINESS OR LOSS OF GOODWILL) SUFFERED OR INCURRED BY SUCH OTHER PARTY OR ITS AFFILIATES IN CONNECTION WITH THIS AGREEMENT, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.  [*].

 

		
	
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13.2Subject to Section 13.1, each Party’s total liability arising under or in connection with this Agreement, whether arising [*], or otherwise, shall be limited to [*], except to the extent arising out of: 

[*].

ARTICLE 14
INSURANCE

14.1Insurance. During the term, FibroGen shall maintain, at its own cost and expense, in force the following insurance policies with reputable insurance companies against the liability referred to in this Agreement. In the event that any of the required polices of insurance are written on a claims made basis, then such policies shall be maintained during the Term of this Agreement and for a period of not less than two (2) years following the expiration or termination of this Agreement:

14.1.1Products and Completed Operations Liability Insurance with a per occurrence limit of [*].

14.1.2Commercial General Liability Insurance for [*].

ARTICLE 15 
CONFIDENTIALITY

15.1Confidentiality.  All information that is disclosed or provided by a Party to the other Party under this Agreement shall be deemed disclosed or provided by such Party to the other Party under the Collaboration Agreement, and subject to the confidentiality provisions set forth in Article 12 of the Collaboration Agreement.

ARTICLE 16
PRESS RELEASES; USE OF NAMES

16.1Press Releases.  Neither Party shall issue nor disclose any press release, publicity or other form of public written disclosure related to this Agreement and/or Manufacturing Services for AstraZeneca without receiving the other Party’s prior written consent, which consent shall not be unreasonably withheld.

16.2Use of Names.  Neither Party shall make use of the name, trademark, logo or symbol of the other Party nor any Affiliate of the other Party, nor any of their respective officers, directors, employees, or agents, in any advertising or promotional material, or otherwise, in connection with this Agreement or any related agreements, without the prior written consent of such other Party, which consent shall not be unreasonably withheld.

 

		
	
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ARTICLE 17
TERM; TERMINATION

17.1Term.  Unless sooner terminated pursuant to Section 17.2 or extended by the mutual written agreement of the Parties, the term of this Agreement shall commence on the Effective Date, and shall continue as detailed herein below in accordance with Section 6.3 of the Collaboration Agreement.  For the supply of Bulk Drug Product, this Agreement and the obligation to purchase and supply Bulk Drug Product shall have a term of five (5) years, which will automatically renew for succeeding five (5)-year terms unless written notice is received by FibroGen two (2) years in advance of the end of the applicable term.  If AstraZeneca wishes to manufacture Bulk Drug Product itself, it shall provide FibroGen [*] advance written notice prior to expiration of then-current term, and FibroGen will continue to be the API supplier with an initial term that shall continue for [*] from the Effective Date of this Agreement, after which AstraZeneca would have the right (i) to extend the term for an additional [*] or (ii) subsequently, to give written notice not more than once every [*], of its intention to  assume responsibility for API manufacture upon the Collaboration Agreement’s Section 6.4 and agreement of terms mutually agreed by the Parties, including [*], as stated in Section 6.3 of the Collaboration Agreement.       

17.2Termination. This Agreement may be terminated as follows:

17.2.1Termination of Collaboration.  This Agreement shall automatically terminate upon termination of the Collaboration Agreement for any reason.  

17.2.2Material Breach.  Either Party may terminate this Agreement by written notice to the other Party, for any material breach of the Agreement, Purchase Order, or the Quality Assurance Agreement by the other Party, if such breach is not cured [*] after the breaching Party receives written notice of such breach from the non-breaching Party.  Such termination shall be effective upon expiration of such cure period.

17.2.3Insolvency.  Either Party may terminate this Agreement upon notice to the other Party, upon (a) the dissolution, termination of existence, liquidation or business failure of the other Party; (b) the appointment of a custodian or receiver for the other Party who has not been terminated or dismissed within [*] of such appointment; or (c) the institution by the other Party of any proceeding under national, federal or state bankruptcy, reorganization, receivership or other similar laws affecting the rights of creditors generally or the making by such Party of a composition or any assignment for the benefit of creditors under any national, federal or state bankruptcy, reorganization, receivership or other similar law affecting the rights of creditors generally, which proceeding is not finally dismissed within [*] of filing.  All rights and licenses granted pursuant to this Agreement are, and shall otherwise be deemed to be, for purposes of Section 365(n) of Title 11 of the United States Code, licenses of rights of “intellectual property” as defined therein.

17.2.4Cumulative Remedies.  Any right to terminate this Agreement shall be in addition to and not in lieu of all other rights or remedies that the Party giving notice of termination may have at law or in equity or otherwise.

17.3Consequences of Termination.  

 

		
	
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17.3.1Generally. If this Agreement is terminated pursuant to Section 17.2, FibroGen shall use reasonable commercial efforts to wind-down all Manufacturing Services in accordance with its responsibilities under Applicable Laws, and use reasonable commercial efforts to reduce or eliminate further costs, and to cancel, if permitted under the terms of applicable agreements, any Third Party obligations. [*].  

17.4Accrued and Surviving Rights.  The expiration or termination of this Agreement shall be without prejudice to any rights or obligations that may have accrued prior to such expiration or termination, and shall not affect any provision which is expressly or by implication intended to come into or continue in force on or after expiration or termination including but not limited to, [*]. 

ARTICLE 18
FORCE MAJEURE

18.1Force Majeure.  Neither Party shall be liable hereunder for any failure in performance if such delay or failure is not within a Party’s reasonable control, including if caused by fire, flood, explosion, storm, acts of God, pandemic, acts of any government or government agency or other causes beyond such Party’s reasonable control (“Force Majeure”), provided that, upon the occurrence of any event of force majeure, (a) the Party whose performance is thereby affected shall promptly notify the other Party of the force majeure event and the circumstances so surrounding and of the expected duration thereof and shall take all reasonable steps to mitigate such delay or failure to perform; (b) the Parties shall in good faith discuss the delay caused by the Force Majeure event and any adjustments to address such delay; (c) the suspension of performance shall be of no greater scope and no longer duration than is reasonable necessary; and (d) if the delay or failure to perform continues for more than [*], then: (i) the unaffected Party may terminate this Agreement upon written notice to the affected Party; or (ii) where the unaffected Party is AstraZeneca, then AstraZeneca shall: (1) be permitted reasonable access to relevant information in the possession of FibroGen and its affiliates relating to the manufacturing processes for the Product; (2) have the right to contact FibroGen’s suppliers (including suppliers of API), in each case, to assess the feasibility of (including contracting with) such suppliers manufacturing and supplying the Product to AstraZeneca; solely in the event of a supply failure by FibroGen; and [*]. 

18.2 [*]. 

ARTICLE 19
MISCELLANEOUS

19.1Notices.  Any notice required or permitted to be given under this Agreement by any Party shall be in writing and shall be (a) delivered personally, (b) sent by registered mail, return receipt requested, postage prepaid, (c) sent by a nationally-recognized courier service guaranteeing next-day or second day delivery, charges prepaid, or at such other addresses as may from time to time be furnished by similar notice by any Party.  The effective date of any notice under this Agreement shall be the date of receipt by the receiving Party.

 

		
	
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If to FibroGen: 

FibroGen, Inc.

409 Illinois Street

San Francisco, California 94158 U.S.A.

Attn: Legal Department 

If to AstraZeneca:

AstraZeneca UK Limited Silk Road

Macclesfield, Cheshire, SK10 2NA, England

Attn: Head of Supply and Planning

With a copy to: 

Email: legalnotices@astrazeneca.com  

Attention:  Legal Department

19.2Governing Law; Dispute Resolution.  This Agreement shall be governed by, construed and interpreted in accordance with the governing law provisions set forth in the Collaboration Agreement. The Parties shall negotiate in good faith and use reasonable efforts to settle any dispute in accordance with the Collaboration Agreement.  

19.3Headings.  All headings in this Agreement are for convenience of reference only and shall not affect the interpretation of this Agreement.

19.4Exhibits.  All exhibits or appendices referred to herein form an integral part of this Agreement and are incorporated into this Agreement by such reference.

19.5Assignment.  Neither Party may assign or transfer the Agreement or any rights or obligations hereunder without the prior written consent of the other Party, except that a Party may make such an assignment without the other Party’s consent to such Party’s Affiliate or to a successor to all or substantially all of the assets or business of such Party to which this Agreement pertains, whether by asset sale, stock sale, merger, acquisition, or otherwise.  Any permitted successor or assignee of rights and/or obligations hereunder shall, in a writing to the other Party, expressly assume performance of such rights and/or obligations.  Any purported assignment that is not in conformance with this Section shall be null, void and of no legal effect.  Subject to the foregoing, this Agreement shall be binding upon and inure to the benefit of the successors and assigns of the Parties. 

19.6Severability.  If any part of this Agreement shall be found to be invalid or unenforceable under Applicable Law in any jurisdiction, such part shall be ineffective only to the extent of such invalidity or unenforceability in such jurisdiction, without in any way affecting the remaining parts of this Agreement in that jurisdiction or the validity or enforceability of the Agreement as a whole in any other jurisdiction.  In addition, the part that is ineffective shall be reformed in a mutually agreeable manner so as to as nearly approximate the intent of the Parties as possible.

 

		
	
Confidential
	
22

FibroGen/AstraZeneca Master Supply

C: 00033429.0

 

[*] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would likely cause competitive harm to the company if publicly disclosed.

 

19.7Independent Contractors.  Each of the Parties is an independent contractor and nothing herein contained shall be deemed to constitute the relationship of partners, joint venturers, nor of principal and agent between the Parties.  Neither Party shall at any time enter into, incur, or hold itself out to Third Parties as having authority to enter into or incur, on behalf of the other Party, any commitment, expense, or liability whatsoever.

19.8Conflict. This Agreement is subject to the Collaboration Agreement. In the event of a conflict between this Agreement and the Collaboration Agreement, the Collaboration Agreement shall govern, except as otherwise specified in the Collaboration Agreement, including as specified in Section 6.3 thereof. In the event of a conflict between this Master Supply Agreement and the Quality Assurance Agreement, this Master Supply Agreement will control with respect to supply maters, and the Quality Assurance Agreement, once executed, will control with respect to Quality Matters, as defined in Section 9.1 hereto. The terms and conditions of the body of this Agreement shall prevail in the event of a conflict between or among the provisions of the body of this Agreement and any Purchase Orders hereto.

19.9Waiver.  No waiver of any term, provision or condition of this Agreement whether by conduct or otherwise in any one or more instances shall be deemed to be or construed as a further or continuing waiver of any such term, provision or condition or of any other term, provision or condition of this Agreement.

19.10Entirety; Amendments. This Agreement, including any exhibits or ancillary documents attached hereto or referenced herein, constitutes the full understanding of the Parties and a complete and exclusive statement of the terms of their agreement with respect to the specific subject matter hereof, and no terms, conditions, understandings or agreements purporting to modify or vary the terms thereof shall be binding unless hereafter made in a written instrument referencing this Agreement and signed by each of the Parties.  

19.11Counterparts.  This Agreement and any amendment hereto may be executed in any number of counterparts, each of which shall for all purposes be deemed an original and all of which shall constitute the same instrument.  This Agreement shall be effective upon full execution by portable document format (pdf), facsimile or original, and a pdf or facsimile signature shall be deemed to be and shall be as effective as an original signature.

 

		
	
Confidential
	
23

FibroGen/AstraZeneca Master Supply

C: 00033429.0

 

[*] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would likely cause competitive harm to the company if publicly disclosed.

 

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed as of the Effective Date.

 

	
Fibrogen, INC. 
	
 
	
astrazeneca UK Limited

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
By:
	
 
	
/s/Mike Martinelli
	
 
	
By:
	
 
	
/s/ [*]

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Name:
	
 
	
Michael Martinelli, PhD
	
 
	
Name:
	
 
	
[*]

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Title:
	
 
	
SVP, TECHNICAL DEVELOPMENT, DRUG  DEVELOPMENT
	
 
	
Title:
	
 
	
Global Category Manager

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Date:
	
 
	
14 September 2020
	
 
	
Date:
	
 
	
14 September 2020

 

 

 

		
	
Confidential
	
24

FibroGen/AstraZeneca Master Supply

C: 00033429.0

 

[*] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would likely cause competitive harm to the company if publicly disclosed.

 

Exhibit A

Bulk Drug Product [*]

[*]

 

 

1

 

Exhibit B

 

AstraZeneca’s Global Standard:  Expectations of Third Parties

 

 

2

 

Expectations of Third Parties AstraZeneca Global Standard

 

 

 

 

	
 
	
 

	
This Global Standard sets out AstraZeneca’s ethical business expectations of Third Parties with which it interacts to ensure their conduct is consistent with our own.

	
 

	
Who is this Standard for?

	
All Third Parties acting for or on behalf of AstraZeneca. All Procurement Professionals and Engagement Owners across the AstraZeneca business for use with their Third Party interactions.

	
AstraZeneca’s commitment to responsible business extends to ensuring that our ethical standards are integrated into our business processes and decisions worldwide. This commitment extends to our Third Parties and requires that we work only with Third Parties with standards of ethical behaviour that are consistent with our own.

This Global Standard explains what our expectations are in areas of specific relevance to our interactions with Third Parties.

 

 

 

	
 

2
	
 

 

	
 
	
 

 

Guiding Principles

 

 

	
 

3

 

 

	
The following outlines the key principles that a Third Party should work to in order to operate in an ethical manner consistent with AstraZeneca’s expectations.

Organization & Culture

Third Party has a governance structure & culture that reinforces ethical and lawful behaviour & ensures all aspects of its business are compliant to financial, legal and ethical standards. It extends this expectation to any other Third Party intermediaries acting on its behalf.

Risk Identification & Assessment

Third Party has annual internal/external reviews that measure its risk controls and identify the actions needed to deliver any necessary improvement. This includes assessing the risk of activities carried out by Third Parties acting on its behalf.

It defines roles for leaders in terms of responsibility for all aspects of running the organization, including the identification, assessment and mitigation of risks to ensure business continuity.

Standard Setting

Third Party has an established governance structure consistent with the size and nature of the business which defines policies/ways of working and controls 

for managing its business ethically. Ways of working are less formal polices that employees would recognise and be able to explain to an independent party (applicable to organisations with fewer than 15 employees).
	
 
	
It shares these with its own Third Parties so that they are clear what standards are expected of them and, where appropriate, assesses if their policies are adequate. Third Party identifies and complies with all applicable laws, regulations, codes and standards, both in the country in which the Third Party works and in the country in which the service or products will be provided.

Third Party complies with all relevant contractual customer requirements, even where these are higher than local or national laws.

Training and Competency

Third Party has a training program that achieves an appropriate level of knowledge, skills and abilities in management and workers to address the expectations in this Standard.

Control Activities

Third Party has monitoring in place, to ensure that processes are being adequately followed and risk control measures are effective. Identified process and control failures should be addressed.

Reporting, Investigation and Remediation

Third Party encourages its employees to report concerns or illegal activities in the workplace without threat of reprisal, intimidation or harassment. Third Party investigates such reports and other incidents and takes corrective action if needed.

 

 

 

	
 

4

 

 

	
 
	
 

 

What This Means in Practice

 

	
Third Party is free to determine what methods it uses to meet the expectations in this Standard. It is acknowledged that local laws, values and cultural expectations may influence how these principles are applied in practice but they must be in the spirit of this Standard.

For certain highly sensitive areas, the Third Party may be expected to work exactly to AZ policies and standards but this will be specified in the contract.

In most cases, prior to contracting with a Third Party, AstraZeneca assesses how well the above principles are being applied to both the governance of the Third Party and the relevant risk areas outlined in this 

Standard. This is delivered through our Third Party Risk Management framework. On-going Third Party relationships are subject to periodic re-assessment to ensure standards have been maintained including responding to any changes in the conduct, reputation or risks related to the particular Third Party. For more information on the framework, please refer to the AstraZeneca external website http://www.astrazeneca.com/Responsibility/Working-with-suppliers.

AstraZeneca expects the same standards of its own employees and actively encourages Third Parties to report any incidents they believe contravene any of the principles outlined in this Standard. Details on how to raise a concern can be found at azethics.com.
	
 
	
 

 

 

 

	
 

5
	
 

 

	
1.    Anti-Bribery and 
Anti-Corruption

Third Party has a zero tolerance for bribery or corruption and does not give or receive bribes when conducting business.

Third Parties shall not:

•    Offer, give, request or accept bribes or permit sub-contractors or others to do so on their behalf. This includes:

•    Offering or giving – directly or indirectly – money or anything else of value, including gifts and hospitality, to any person or organisation that is intended to, or could be seen as an attempt to influence or reward them to behave improperly in order to obtain or retain business or secure a business advantage for themselves, their organisation or AstraZeneca, or as an attempt to influence or reward an official action or decision (e.g., by a public official).

•    Requesting or accepting – directly or indirectly – money or anything else of value, including gifts and hospitality, if it is intended to, or could be seen as an attempt to compromise their independence or judgement, or to improperly influence a business decision for themselves, their organisation or AstraZeneca.
	
 
	
When specifically authorised by AstraZeneca, Third Parties may:

•    Provide services to AstraZeneca or on AstraZeneca’s behalf.

•    Provide appropriate hospitality or items of value e.g. medical textbooks. However, under no circumstances, may Third Parties give gifts of a personal nature (e.g. gift cards, restaurant vouchers) on AstraZeneca’s behalf.

•    Give contributions on AstraZeneca’s behalf.

•    Participate in political activities (e.g. lobbying). 

However, under no circumstances may Third Parties give any political support (e.g. finance or resource political campaigns on behalf of AstraZeneca).

Third Parties interacting with Public Officials on behalf of AstraZeneca shall:

•    Comply with the specific requirements of contracts and agreements with AstraZeneca, such as not making any facilitation payments, either directly or indirectly, to public officials (including healthcare professionals and other individuals employed by public sector organisations), regardless of whether such payments are nominal in amount, unless under duress (i.e. where there is reasonable fear for personal safety).

•    Promptly report in writing to the AstraZeneca Engagement Owner all incidents where they are involved in the following situations:

a.    Facilitation Payments are requested but not paid; or

b.    Payments are demanded under duress, whether paid or not.

 

 

 

	
 

6
	
 

 

 

	
 

7

 

 

	
2.    Conflicts of Interest

Third Party does not allow Conflicts of Interest to influence or compromise the professional duties and decisions of the Third Party or its employees.

Third Parties shall:

•    Inform the AstraZeneca Engagement Owner in writing of any actual, apparent or potential conflicts of interest relevant to the Third Party’s performance of services for AstraZeneca, at the time they become known.

•    Have financial controls in place to prevent conflicts of interest affecting procurement and financial decision making.

3.    Employment Principles

Third Party operates in line with internationally recognised human rights, and promotes and maintains a culture of respect and equal opportunities.

Anti-Slavery And Anti-Trafficking

Third parties shall not engage in any form of Slavery and/or Trafficking.

An individual is considered to be in Slavery if he/she is:

•    Forced to work - through mental or physical threat;

•    Owned or controlled by an 'employer', usually through mental or physical abuse or the threat of abuse;

•    De-humanised, treated as a commodity or bought and sold as 'property'; and/or

•    Physically constrained or has restrictions placed on his/ her freedom of movement, against their will or with the knowledge and intent to enslave or traffic.

Trafficking involves purposeful transportation of any person being recruited, harboured or brought into a situation of exploitation through the use of violence, 

deception or coercion and/or forced to work against their will.
	
 
	
Non-Discrimination And Fair Treatment

•    Third Parties shall provide a workplace free of harassment and discrimination. Discrimination for reasons such as race, colour, age, gender, sexual orientation, ethnicity, disability, religion, political affiliation, union membership or marital status is not condoned.

•    Decisions about recruitment, development and promotion are based purely on merit, performance and ability.

Child Labour 

Third Parties shall:

•    Not use child labour. The minimum age for employment is 15 years of age (or 14 in accordance with developing country exceptions under International Labour Organisation (ILO) Convention no.138). If local minimum age law stipulates a higher age for work or mandatory schooling, the higher age applies.

•    Not employ workers under 18 at night or in hazardous conditions.

Freely Chosen Employment

•    Third Parties shall not use forced, bonded or indentured labour or involuntary prison labour.

Wages, Benefits & Working Hours

Third Parties shall:

•    Pay employees according to applicable wage laws, including any relevant overtime hours and mandated benefits, and legal minimum wages. Third parties shall also, where notified by AstraZeneca that is has recognised and wishes to implement a national “living wage”, pay employees such a living wage.

•    Communicate with the employee the basis on which they are being compensated in a timely manner.

•    Communicate with the employee whether overtime is required and the wages to be paid for such overtime.

Freedom Of Association

•    Third Parties shall respect the rights of employees, as defined in local laws, to associate freely, join or not join labour unions, seek representation and join employees’ councils.

 

 

 

	
 

8

 

 

 

	
 

9
	
 

 

	
4.    Safety, Health 
and the Environment

Third Party carries out business in an environmentally responsible manner and promotes a safe and healthy workplace for all their employees, including those who work on their behalf worldwide.

Protection Of The Health And Safety Of People 

Third Parties shall:

•    Protect people from unhealthy exposure to physical, psychological, chemical and biological hazards. Significant releases of chemicals are prevented or otherwise mitigated through reliable process safety controls.

•    Make information relating to SHE risks, chemicals and other hazardous materials, including pharmaceutical materials available and use it to manage risks and train and protect people.

•    Put registrations/notification approvals and applicable legal documentation for the manufacture, import and transport of hazardous materials in place as required by local and international regulations.

Environmental Protection & Conservation

Third Parties shall:

•    Manage business activities in a way that, as far as practical, avoids the use of hazardous materials, conserves water, energy and other natural resources and minimizes the generation of waste through avoidance, reuse and/or recycling.

•    Ensure any emissions to air, water and land are in compliance with laws and regulations and controlled or treated to the extent necessary to eliminate, or otherwise minimize the risk of, adverse affects on human health or the environment.

•    Adhere to all relevant AstraZeneca sourcing policies and support any necessary extended supply chain due diligence.
	
 
	
5.    Trade Controls 
and Competition

Third Party complies with all competition and anti-trust laws applicable in the countries where it operates. It is committed to importing, exporting and engaging in all other forms of trade in a legal and ethical manner.

Trade Controls

•    Third Parties shall comply with applicable trade regulations including licensing requirements, boycotts, embargoes and other trade restrictions that have been approved by recognised national and international authorities.

Competition

Third Parties shall:

•    Only seek competitive advantage through lawful means and conduct their business consistent with fair and vigorous competition.

•    Only engage in dialogue with competitors when there is a legitimate business reason to do so, and the dialogue is such that it will not restrict competition (e.g. is limited to public or non-commercial information).

•    Not abuse their position, if it is dominant or has a monopoly, to exclude competitors or exploit customers.

 

 

 

	
 

10
	
 

 

 

	
 

11
	
 

 

	
6.    Data Privacy

Third Party collects, uses, retains and discloses AstraZeneca personal data in a fair, transparent and secure way.

Third Parties shall:

•    Only use AstraZeneca Personal Data under our instructions and not use it for their own purposes.

•    Ensure that effective organisational and security measures (both technological and physical) are applied to all AstraZeneca Personal Data to ensure the privacy of affected individuals.

•    Appoint a representative who is accountable for data privacy and security in their company.

•    Ensure information is protected and kept secure at all times from unauthorised use, damage, disclosure, diversion or removal, whether through accident, improper act or breach of trust.

•    Ensure employees who will have access to AZ Personal Data are appropriately trained in their responsibilities around processing and protecting the Personal Data.
	
 
	
7.    Research & 
Development Ethics

Third Party conducts high quality science delivered to high ethical standards in all areas of research and development.

Specifically in the areas of:

•    Supply or use of biological samples especially human embryonic stem cells (hESCs), and genetically modified organisms (GMOs).

•    Animal research & supply.

•    Clinical trials and patient safety.

Third Parties shall:

•    Provide assurance that they comply with all national or state laws, regulations & recognised international quality and safety standards applicable to the proposed work including biosafety containment in all countries in which they operate.

•    Ensure that the appropriate informed consent & personal data protection procedures are in place and applied consistently.

Animal Research And Welfare

Third Parties shall apply the following principles to all animal studies and to the breeding and supplying of animals for use in such studies:

•    A humane approach must be adopted in the care and treatment of all animals, and the greatest consideration given to their health and welfare, consistent with meeting the necessary scientific objectives.

•    All animal studies must be carefully considered and justified to ensure that the principles of the 3Rs (replacement, reduction, refinement) are applied.

•    Animal studies should not involve wild-caught non-human primates or great ape species.

 

 

 

	
 

12
	
 

 

	
8.    Product Security

Third Party tackles the threat of counterfeit and illegally traded medicines and improving the security of the end-to-end supply chain.

Third Parties shall:

•    Not be involved in any activity related to counterfeit or illegally traded medicines.

•    Counterfeit medicines are those that are deliberately and fraudulently mislabelled with respect to identity and/or source. Illegally traded medicines include illegally diverted, fraudulently traded, tampered with and/or stolen medicines.

•    Inform AstraZeneca in a timely manner in the event of any incident related to illegally traded or counterfeit medicines and assist AstraZeneca in any subsequent investigation.

•    Provide a secure environment for all activities relating to AstraZeneca medicines and take the necessary steps to ensure the authenticity of medicines through the end to end supply chain. This includes:

•    Procedures and records to ensure traceability of finished products as well as any waste, surplus, returned or discarded products, including packaging.
	
 
	
9.    Product Communications

Third Party provides information about our medicines and other products consistent with AstraZeneca’s high ethical standards.

Third Parties shall:

•    Only provide information about AstraZeneca products when authorised to do so. This includes communications about our products in person or through written material, and delivered through any medium, including the Internet.

•    Promote AstraZeneca products in an ethical, fair and balanced way.

•    Use only promotional materials and other product information that have been approved through appropriate AstraZeneca review procedures.

•    Not engage in direct to consumer/direct to patient communications unless permitted by local laws and authorised by AstraZeneca.

10.    Confidentiality 
and Insider Trading

Third Party protects confidential information from improper disclosure.

Third Parties shall:

•    Agree to confidentiality agreements if confidential information is to be shared & ensure any authorised communication of confidential information is limited to individuals who have a “need to know”.

•    Prohibit their employees from insider trading for their own or other’s personal profit.

These requirements apply even to misuse of Confidential information after a Third Party has finished doing business with AstraZeneca.

 

 

 

	
 

13
	
 

 

	
 
	
 

 

Glossary and Definitions

 

	
AstraZeneca
	
 
	
For the purposes of this document the term AstraZeneca refers to AstraZeneca, MedImmune and all other companies within AstraZeneca group, unless the AstraZeneca Senior Executive Team makes an exception.

	
Code of Conduct
	
 
	
This is AstraZeneca’s guide to understanding how AstraZeneca’s high level values are to be translated into consistent actions worldwide. It provides guidance about what is expected of each AstraZeneca employee.

	
Confidential information
	
 
	
Information that gives AstraZeneca and the Third Party a competitive edge. This includes, but is not limited to-intellectual property and know-how; managerial information and statements of strategic intent; pricing or stock-market sensitive data and statements.

	
Engagement Owner
	
 
	
Employees responsible for engaging and managing services provided by a Third Party.

	
ILO
	
 
	
International Labour Organization. An international organization responsible for drawing up and overseeing international labour standards. It is the only 'tripartite' United Nations agency that brings together representatives of governments, employers and workers to jointly shape policies and programmes promoting Decent Work for all.

	
Personal Data
	
 
	
Any information about an identified or identifiable natural person.

	
Product information
	
 
	
Any information, material or activity, promotional or non-promotional, designed to inform healthcare professionals and organisations, patients, investors, the media and others about the characteristics and use of our products.

	
Incidents
	
 
	
Include theft of material, discovery of counterfeit or fraudulent activity, demonstration by activists, threat to staff, SHE, bribery and corruption or any other area covered by this document.

	
Third Party
	
 
	
Any person, company or organisation, other than an AstraZeneca legal entity or an AstraZeneca employee, with which AstraZeneca engages to satisfy a genuine and legitimate business need.

 

 

	
 

14Exhibit 10.1

 

PURCHASE
AND SALE AGREEMENT

 

BETWEEN

 

TUESDAY
MORNING PARTNERS, LTD., Tuesday Morning, inc. and

FRIDAY MORNING,
LLC

AS SELLER

 

AND

 

RIALTO REAL
ESTATE FUND IV – PROPERTY, LP

AS PURCHASER

 

DATED: October
30, 2020

 

     

     

    

 

TABLE OF
CONTENTS

 

Page No. 

	Article 1

 Basic Information
	1.1	Certain Basic Terms	1
	1.2	Closing Costs	2
	1.3	Notice Addresses:	3
	Article 2 

Property
	2.1	Property	3
	Article 3

 Earnest Money
	3.1	Deposit and Investment of Earnest Money	4
	3.2	Independent Consideration	5
	3.3	Form; Failure to Deposit	5
	3.4	Disposition of Earnest Money	5
	Article 4 

Due Diligence
	4.1	Due Diligence Materials Delivered	5
	4.2	Physical Due Diligence	6
	4.3	Reports	7
	4.4	Service Contracts	7
	4.5	Proprietary Information; Confidentiality	8
	4.6	No Representation or Warranty by Seller	8
	4.7	Purchaser’s Responsibilities	8
	4.8	Purchaser’s Agreement to Indemnify	9
	Article 5 

Title and Survey
	5.1	Title Commitment	9
	5.2	Intentionally Omitted	10
	5.3	Delivery of Title Policy at Closing	10
	Article 6 

Operations and Risk of Loss
	6.1	Ongoing Covenants and Operations	10
	6.2	Damage	11
	6.3	Condemnation	12
	6.4	Leaseback	12
	Article 7 

Closing
	7.1	Closing	13
	7.2	Conditions to Parties’ Obligation to Close	13
	7.3	Seller’s Deliveries in Escrow	14
	7.4	Purchaser’s Deliveries in Escrow	15
	7.5	Closing Statements	15
	7.6	Purchase Price	15
	7.7	Possession	15
	7.8	Delivery of Books and Records	16

 

Purchase and Sale Agreement

 6250 Lyndon B. Johnson Freeway, Dallas, Texas

 4404 South Beltwood Parkway, Farmers Branch, Texas

 14621, 14639
and 14601 Inwood Road, Addison, Texas

 14303 Inwood Road, Farmers Branch, Texas

 

    i 

     

    

	Article 8 

Prorations, Deposits, Commissions
	8.1	Prorations	16
	8.2	Closing Costs	16
	8.3	Final Adjustment After Closing	16
	8.4	Commissions	17
	Article 9 

Representations and Warranties
	9.1	Seller’s Representations and Warranties	17
	9.2	Purchaser’s Representations and Warranties	18
	9.3	Survival of Representations and Warranties	19
	Article 10

 Default and Remedies
	10.1	Seller’s Remedies	20
	10.2	Purchaser’s Remedies	20
	10.3	Attorneys’ Fees	20
	10.4	Other Expenses	21
	Article 11

 Disclaimers, Release and Indemnity
	11.1	Disclaimers By Seller	21
	11.2	Sale “As Is, Where Is.”	22
	11.3	Seller Released from Liability	23
	11.4	“Hazardous Materials” Defined	24
	11.5	Survival	24
	Article 12

 Miscellaneous
	12.1	Parties Bound; Assignment	24
	12.2	Headings	25
	12.3	Invalidity and Waiver	25
	12.4	Governing Law; Jurisdiction; Venue	25
	12.5	Survival	25
	12.6	Entirety and Amendments	25
	12.7	Time	25
	12.8	Confidentiality	25
	12.9	Notices	26
	12.10	Construction	26
	12.11	Calculation of Time Periods; Business Day	26
	12.12	Execution in Counterparts	26
	12.13	No Recordation	26
	12.14	Further Assurances	26
	12.15	Discharge of Obligations	27
	12.16	ERISA	27
	12.17	No Third Party Beneficiary	27
	12.18	Reporting Person	27
	12.19	Texas Real Estate License Act..	27
	12.20	DTPA Waiver.	27

 

Purchase and Sale Agreement

 6250 Lyndon B. Johnson Freeway, Dallas, Texas

 4404 South Beltwood Parkway, Farmers Branch, Texas

 14621, 14639
and 14601 Inwood Road, Addison, Texas

 14303 Inwood Road, Farmers Branch, Texas

 

    ii 

     

    

 

LIST OF DEFINED TERMS

 

Page No.

 

	Agreement	1
	Assignment	13
	Broker	2
	Business Day	24
	Casualty Notice	10
	CERCLA	21
	Closing	11
	Closing Date	2
	Deed	13
	Earnest Money	1
	Effective Date	2
	Escrow Agent	2
	Hazardous Materials	22
	Improvements	3
	Independent Consideration	5
	Intangible Personal Property	4
	Land	3
	Material Damage	10
	Materially Damaged	10
	OFAC	16
	Permitted Outside Parties	7
	Property	3
	Property Documents	5
	Purchase Price	1
	Purchaser	1
	Real Property	3
	Report	6
	Reports	6
	Seller	1
	Seller's Representative	17
	Service Contracts	6
	Survival Period	17
	Tangible Personal Property	4
	Taxes	14
	Title Company	1
	Title Policy	9

 

Purchase and Sale Agreement

 6250 Lyndon B. Johnson Freeway, Dallas, Texas

 4404 South Beltwood Parkway, Farmers Branch, Texas

 14621, 14639
and 14601 Inwood Road, Addison, Texas

 14303 Inwood Road, Farmers Branch, Texas

 

    iii 

     

    

 

PURCHASE AND SALE AGREEMENT

4404 South
Beltwood Parkway, Farmers Branch, Texas 

14621,
14639 and 14601 Inwood Road, Addison, Texas

14303 Inwood Road, Farmers Branch, Texas

6250 LBJ
Freeway, Dallas, Texas

 

This Purchase and Sale
Agreement (this “Agreement”) is made and entered into by and between Purchaser and Seller.

 

RECITALS

 

A.       Defined
terms are indicated by initial capital letters. Defined terms shall have the meaning set forth herein, whether or not such terms
are used before or after the definitions are set forth.

 

B.       Purchaser
desires to purchase the Property and Seller desires to sell the Property, all upon the terms and conditions set forth in this Agreement.

 

NOW, THEREFORE, in
consideration of the mutual terms, provisions, covenants and agreements set forth herein, as well as the sums to be paid by Purchaser
to Seller, and for other good and valuable consideration, the receipt and sufficiency of which are acknowledged, Purchaser and
Seller agree as follows:

 

Article 1

Basic Information

 

1.1  
Certain Basic Terms. The following defined terms shall have the meanings set forth
below:

 

	 	1.1.1	Seller:	TUESDAY MORNING PARTNERS, LTD., a Texas limited partnership, TUESDAY MORNING, INC., a Texas corporation, and FRIDAY MORNING, LLC, a Texas limited liability company 
	 	 	 	 
	 	1.1.2	Purchaser:	rialto real estate fund iv – property, lp, a Delaware limited partnership 
	 	 	 	 
	 	1.1.3	Purchase Price:	$60,000,000.00
	 	 	 	 
	 	1.1.4	Earnest Money:	$4,500,000.00 (the “Earnest Money”), including interest thereon, to be deposited in accordance with Section  3.1 below. 
	 	 	 	 
	 	1.1.5	Title Company:	
        Chicago Title Insurance Company

        2828 Routh Street, Suite 800

        Dallas, Texas 75201

        Attn: Holden Heil

        E-Mail: Holden.Heil@ctt.com

 

Purchase and Sale Agreement 

6250 Lyndon B. Johnson Freeway, Dallas, Texas 

4404 South Beltwood Parkway, Farmers Branch, Texas 

14621, 14639
and 14601 Inwood Road, Addison, Texas

 14303 Inwood Road, Farmers Branch, Texas

 

    1

     

    

 

	 	1.1.6	Escrow
    Agent:	
        Chicago Title Insurance Company

        2828 Routh Street, Suite 800

        Dallas, Texas 75201

        Attn: Holden Heil

        E-Mail: Holden.Heil@ctt.com

	 	 	 	 
	 	1.1.7	Broker:	
        CBRE, Inc.

        2100 McKinney Avenue, Suite 700

        Dallas, Texas 75201

        Attn: Tim Vogds

	 	 	 	 
	 	1.1.8	Effective Date:	The date on which this Agreement is executed by the latter to sign of Purchaser or Seller, as indicated on the signature page of this Agreement.  If the execution date is left blank by either Purchaser or Seller, the Effective Date shall be the execution date inserted by the other party.
	 	 	 	 
	 	1.1.9	Closing Date:	On or before three (3) Business Days following the effective date of a Reorganization Plan (as defined herein) confirmed by a Plan Confirmation Order (as defined herein). Notwithstanding the foregoing, the Closing Date shall not occur later than December 31, 2020. 

 

1.2  
Closing Costs. Closing costs shall be allocated and paid as follows:

 

	Cost	Responsible Party
	Title Commitment required to be delivered pursuant to Section  5.1	Seller
	Premium for standard form Title Policy required to be delivered pursuant to Section 5.3	Seller
	Premium for any upgrade of Title Policy for any amendments or endorsements to the Title Policy desired by Purchaser, and the costs and expenses associated with any loan policy	Purchaser
	Costs for updates, recertifications or amendments to the Survey	Purchaser
	Costs for UCC Searches (if requested by Purchaser)	Purchaser
	Costs of recording lien releases with respect to Seller’s existing financing, if any	Seller
	Cost of recording the deed and any other documents required to be recorded by Purchaser	Seller
	Any escrow fee charged by Escrow Agent for holding the Earnest Money or conducting the Closing	
        Purchaser 1⁄2

        Seller 1⁄2

	Real Estate Sales Commission to Broker	Seller
	All other closing costs, expenses, charges and fees	As customary in Dallas County, Texas

 

Purchase
and Sale Agreement 

6250 Lyndon B. Johnson Freeway, Dallas, Texas 

4404 South Beltwood Parkway, Farmers Branch, Texas 

14621, 14639 and 14601 Inwood Road, Addison, Texas

14303 Inwood Road, Farmers Branch, Texas

 

    2

     

    

 

1.3  
Notice Addresses:

 

	Seller:

6250 LBJ Freeway 

Dallas, Texas 75240 

Attention: Jim Spisak

Telephone: 972-934-7149 

E-Mail: jspisak@tuesdaymorning.com & 

legal@tuesdaymorning.com	Copy to:

Haynes and Boone LLP 

2323 Victory Avenue, Suite 700 

Dallas, Texas 75219 

Attention: Brack Bryant 

Telephone: 214-651-5335

E-mail: brack.bryant@haynesboone.com
	 	 
	Purchaser:

                                 

                                Rialto
                                Real Estate Fund IV – Property, LP

                                c/o Rialto Capital Management, LLC

                                501 Santa Monica Blvd., Suite 501, 

                                Santa Monica, California 90401 

                                Attn: Mike Parker, Aaron Davis and Brady Scott 

                                Email: mike.parker@rialtocapital.com, 

                                aaron.davis@rialtocapital.com &

                                brady.scott@rialtocapital.com
	Copy
                                to:

                                 

                                Bilzin
                                Sumberg Baena Price & Axelrod LLP 

                                1450 Brickell Avenue, 23rd Floor 

                                Miami, Florida 33131

                                Attn: Jay M. Sakalo

                                Email: jsakalo@bilzin.com

 

Article 2

Property

 

2.1  
Property. Subject to the terms and conditions of this Agreement, Seller agrees
to sell to Purchaser, and Purchaser agrees to purchase from Seller, the following property (collectively, the “Property“):

 

2.1.1          Real
Property. The parcels of land described in Exhibit A hereto
(individually or collectively, as the context may require, the “Land“), together with (a) all
improvements located thereon (“Improvements“), (b) all right, title and interest of Seller, if any,
in and to the rights, benefits, privileges, easements, tenements, hereditaments, and appurtenances thereon or in anywise
appertaining thereto, and (c) all right, title, and interest of Seller, if any, in and to all strips and gores and any
land lying in the bed of any street, road or alley, open or proposed, adjoining the Land, as well as all other rights,
privileges and appurtenances owned by Seller and in any way related to such land and other rights and interests of Seller
hereunder conveyed (collectively, the “Real Property”).
Seller and Purchaser acknowledge and agree that the Real Property consists of six (6) separate tracts, as identified on Exhibit
A hereto (each, a “Tract”), and generally described as follows: (i) 4400-4404 South
Beltwood Parkway, Farmers Branch, Texas (the “4404 Property”); (ii) 14303 Inwood Road,
Farmers Branch, Texas (the “14303 Property”); (iii) 14621 Inwood Road, Addison, Texas (the
“14261 Property”); (iv) 14639-14645 Inwood Road, Addison, Texas (the “14639
Property”); (v) 14601-14603 Inwood Road, Addison, Texas (the “14601
Property”); and (vi) 6250 Lyndon B. Johnson Freeway, Dallas, Texas (the “6250 LBJ
Property”). The 4404 Property and 14621 Property are owned by Tuesday Morning Partners, Ltd., a Texas limited
partnership (the “Tuesday Morning Partners Seller”), and the 14639 Property and 14601 Property are
owned by Friday Morning, LLC, a Texas limited liability company (the “Friday Morning Seller”). The
14303 Property and 6250 LBJ Property are owned by Tuesday Morning, Inc., a Texas corporation (the “Tuesday
Morning Inc. Seller”). Wherever in this Agreement a representation, warranty, covenant or agreement is made by
Seller, such representation, warranty, covenant or agreement shall be deemed to be made by the Tuesday Morning Partners
Seller, the Friday Morning Seller or the Tuesday Morning Inc. Seller with respect to the Real Property actually owned by such
party, and in no event shall either the Tuesday Morning Seller, Friday Morning Seller or Tuesday Morning Inc. Seller be
deemed to make representation or warranties, or undertake any agreement or obligation whatsoever, with respect to any portion
of the Real Property not owned by such party.

 

Purchase and Sale Agreement 

6250 Lyndon B. Johnson Freeway, Dallas, Texas 

4404 South Beltwood Parkway, Farmers Branch, Texas 

14621, 14639
and 14601 Inwood Road, Addison, Texas

 14303 Inwood Road, Farmers Branch, Texas

 

    3

     

    

 

2.1.2         
Tangible Personal Property. Seller and Purchaser acknowledge and agree that at Closing, the equipment, machinery,
furniture, furnishings, supplies and other tangible personal property, if any, owned by Seller and now or hereafter located on
the Land that (a) are not used in connection with the operation, ownership and maintenance of the Land and Improvements
(as opposed to the operation or management of the particular business of Seller on the Land), and (b) are used primarily
in connection with the operation or management of the particular business of Seller on the Land (collectively, the “Excluded
Tangible Personal Property”) shall not transfer to Purchaser, as all of such Excluded Tangible Personal Property
shall be retained by Seller for its continued operations pursuant to the Leases (as hereinafter defined); provided however, that
all improvements, structures, building systems (such as heating, air conditioning, and mechanical systems), parking facilities
and fixtures now or hereafter placed, constructed, installed or located at or on the Real Property (including any and all apparatuses,
equipment and appliances affixed to the Real Property that cannot be removed without material harm to the Real Property) and used
in connection with the ownership, operation, management or occupancy of the Real Property (as opposed to the operation or management
of Seller’s particular business on the Land), shall be deemed a component of the Improvements (the “Tangible
Personal Property”).

 

2.1.3         
Intangible Personal Property. All of Seller’s right, title and interest, if any, in the following intangible
personal property related to the Real Property and the Improvements: the plans and specifications and other architectural and engineering
drawings for the Improvements, if any, to the extent assignable and in Seller’s possession as of the Effective Date and at
no cost to Seller; warranties, to the extent assignable and in Seller’s possession as of the Effective Date and at no cost
to Seller; governmental permits, approvals and licenses, if any, to the extent assignable and in Seller’s possession as of
the Effective Date and at no cost to Seller; (all of the items described in this Section 2.1.3 collectively referred
to as the “Intangible Personal Property”). Tangible Personal Property and Intangible Personal Property
shall not, in any event whatsoever, be deemed or constructed to include any trade name, mark or other identifying material that
includes the name “Tuesday Morning”, its subsidiaries and affiliates, or any derivatives thereof.

 

Article 3

Earnest Money

 

3.1   Deposit
and Investment of Earnest Money. No later than Friday, October 30, 2020, Purchaser
shall deposit (or cause to be deposited) the Earnest Money with Escrow Agent. Escrow Agent shall invest the Earnest Money in
government insured interest-bearing accounts satisfactory to Seller and Purchaser, shall not commingle the Earnest Money with
any funds of Escrow Agent or others, and shall promptly provide Purchaser and Seller with confirmation of the investments
made. Such account shall have no penalty for early withdrawal, and Purchaser accepts all risks with regard to such account.
The Earnest Money shall become non-refundable to Purchaser upon the expiration of the Due Diligence Period (as defined
below), except as expressly provided in this Agreement (including, Sections 5.3, 6.2, 6.3 and 10.2),
provided, however, the Earnest Money shall be applied to the Purchase Price in the event Closing occurs. For purposes hereof,
the “Due Diligence Period” shall be the period commencing on the Effective Date and expiring at
5:00pm Central Time on October 30, 2020.

 

Purchase and Sale Agreement 

6250 Lyndon B. Johnson Freeway, Dallas, Texas 

4404 South Beltwood Parkway, Farmers Branch, Texas 

14621, 14639
and 14601 Inwood Road, Addison, Texas

 14303 Inwood Road, Farmers Branch, Texas

 

    4

     

    

 

3.2  
Independent Consideration. If this Agreement is terminated for any reason, and
Purchaser is entitled to receive a return of the Earnest Money pursuant to the terms hereof, the Escrow Agent shall first disburse
to Seller $100 as independent consideration for Seller’s performance under this Agreement (“Independent Consideration”),
which shall be retained by Seller in all instances other than in the case of a Seller default existing beyond applicable grace,
notice and cure period. Notwithstanding the foregoing, in the event this Agreement is terminated due to an uncured Seller default,
Purchaser shall be entitled to a return of the entire Earnest Money, including the Independent Consideration.

 

3.3  
Form; Failure to Deposit. The Earnest Money shall be in the form of a certified
or cashier’s check or the wire transfer to Escrow Agent of immediately available U.S. federal funds. If Purchaser fails to
timely deposit any portion of the Earnest Money within the time periods required herein, Seller may terminate this Agreement by
written notice to Purchaser delivered on or prior to the deposit of such Earnest Money by Purchaser, in which event any Earnest
Money that has previously been deposited by Purchaser with Escrow Agent shall be immediately returned to Purchaser, and thereafter
the parties hereto shall have no further rights or obligations hereunder, except for rights and obligations which, by their terms,
survive the termination hereof.

 

Article 4

Due Diligence

 

4.1  
Due Diligence Materials Delivered. Seller shall make available to Purchaser the
following (the “Property Documents”) for each Property (provided that it is acknowledged and agreed by
Purchaser (i) that Seller was and is not obligated to deliver (or create/prepare) the Property Documents to the extent that the
same are not currently available in digital format and in Seller’s reasonable possession, custody or control as of the Effective
Date, and (ii) that Seller was and is not obligated to deliver any documents or information that is subject to attorney-client
privilege:

 

4.1.1         
Environmental, soils, air quality (mold) and hazardous substance reports, including, without limitation, Phase I Reports,
Phase II Reports and any additional substance reports, if any;

 

4.1.2         
Property inspection reports, including those covering engineering, structural/seismic, mechanical systems, building
plans, and insurance loss run reports;

 

4.1.3         
 Agreements, warranties, and guaranties with respect to the Real Property;

 

4.1.4         
Schedule of currently active building Service Contracts and copies of all currently active Service Contracts and any
licensing agreements currently affecting the Property;

 

4.1.5         
Leasing listing agreements and property management agreements from the last three (3) calendar years;

 

4.1.6         
List of facility-related expenses incurred at the 6250 LBJ Property during the last twelve (12) months;

 

Purchase and Sale Agreement 

6250 Lyndon B. Johnson Freeway, Dallas, Texas 

4404 South Beltwood Parkway, Farmers Branch, Texas 

14621, 14639
and 14601 Inwood Road, Addison, Texas

 14303 Inwood Road, Farmers Branch, Texas

 

    5

     

    

 

4.1.7         
Utility bills (electricity, water, sewer, gas, fuel oil, trash and telephone/security lines) for the shorter of the
last three (3) calendar years and the period of Seller’s ownership;

 

4.1.8         
Real and personal property tax assessment notices and bills for the Property; including supplementary notices and bills
for the shorter of the last three (3) calendar years and the period of Seller’s ownership;

 

4.1.9         
Copies of Seller’s most current title policies for the Property with the insured amount redacted; and

 

4.1.10     
Schedule of capital improvements pertaining to the Property for the preceding twenty-four (24) months.

 

Seller shall notify Purchaser of any material
changes to or errors in the Property Documents to the extent Seller obtains knowledge thereof and Seller shall provide updated
materials (if any) in such event.

 

4.2   Physical
Due Diligence. Commencing on the Effective Date and continuing until the Closing,
Purchaser and its agents and representatives shall have reasonable access to the Property at all reasonable times during
normal business hours, for the purpose of conducting reasonably necessary tests, including surveys and architectural,
engineering, geotechnical and environmental inspections and tests, provided that (a) Purchaser must give Seller
one (1) full Business Day’s prior telephone or written notice of any such inspection or test, and with respect to any
intrusive inspection or test (i.e., core sampling) must obtain Seller’s prior written consent (which consent may not be
unreasonably withheld), (b) prior to performing any inspection or test, Purchaser must deliver a certificate of
insurance to Seller evidencing that Purchaser and its contractors, agents and representatives have in place (and Purchaser
and its contractors, agents and representatives shall maintain during the pendency of this Agreement) (1) commercial
general liability insurance with limits of at least $2,000,000 for bodily or personal injury or death, (2) property
damage insurance in the amount of at least $1,000,000, and (3) workers’ compensation insurance for its
activities on the Property in accordance with applicable law, all covering any accident arising in connection with the
presence of Purchaser, its contractors, agents and representatives on the Property, which insurance shall (A) name
as additional insureds thereunder Seller and such other parties holding insurable interests as Seller may designate, and (B) be
primary non-contributory and be written by a reputable insurance company licensed to issue policies in the State of Texas,
and (c) all such tests shall be conducted by Purchaser in compliance with Purchaser’s responsibilities set
forth in Sections 4.7 and 4.8 below. Notwithstanding the foregoing, Purchaser shall be permitted to conduct a
Phase II Environmental Site Assessment and any other additional testing if recommended by Purchaser’s Phase I
Environmental Site Assessment. Purchaser shall bear the cost of all such inspections or tests, which obligation shall survive
the termination of this Agreement. Subject to the provisions of Section 4.5 hereof, Purchaser or Purchaser’s
representatives may communicate with any governmental authority (aa) for the sole purpose of gathering information in
connection with the transaction contemplated by this Agreement; provided, however, Purchaser must contact Seller at least two
(2) full Business Days in advance by telephone or in writing to inform Seller of Purchaser’s intended communication
with any governmental authority and to allow Seller the opportunity to participate in such communication if Seller desires at
a mutually agreeable time between Purchaser and Seller, or (bb) to the extent required by applicable laws. As used in
this Section, “communicate” and “communication” shall mean the initiation of, response to, or sharing
or exchange of information, knowledge or messages, whether by oral, written or electronic methods or media, or by any other
means for the purpose of knowingly subverting the provisions of this Section regarding Purchaser’s obligations to
provide Seller with prior notice of such communication and Seller’s ability to participate in such
communication.

 

Purchase and Sale Agreement 

6250 Lyndon B. Johnson Freeway, Dallas, Texas 

4404 South Beltwood Parkway, Farmers Branch, Texas 

14621, 14639
and 14601 Inwood Road, Addison, Texas

 14303 Inwood Road, Farmers Branch, Texas

 

    6

     

    

 

4.3   Reports.
As additional consideration for the transaction contemplated herein, following termination of this Agreement for any reason
other than Seller default existing beyond applicable grace, notice and cure periods, Purchaser shall provide to Seller
promptly following Seller’s written request, copies of any third party-prepared final environmental site assessments,
property condition reports, title reports, surveys, zoning reports and other final studies and reports about the Real
Property prepared by or for or otherwise obtained by, Purchaser or Purchaser’s engineers, contractors and environmental
consultants in connection with Purchaser’s due diligence (collectively, the “Reports” and,
individually, a “Report”). Any such deliveries to Seller shall be made at no cost to Purchaser and
without any representation or warranty of any kind, including, without limitation, as to the accuracy or completeness of any
such materials, and with no right of Seller to rely thereon without the consent of the applicable third party. Seller
acknowledges and agrees that Purchaser has not made any representation or warranty in connection with the delivery of such
Reports or other materials and the delivery of such Reports shall not establish a contractual relationship with Seller and no
third-party benefits have been or shall be expressly or impliedly established. Notwithstanding anything herein to the
contrary, Purchaser shall not be required to provide to Seller any (aa) attorney-client privileged communications, or (bb)
proprietary or confidential work product and information (such as drafts, internal valuation studies, internal memoranda,
financial projections, budgets and internal appraisals), or (cc) any other information that is not a final report or
study obtained by Purchaser from a third party; provided however, that if this Agreement terminates or expires for any reason
other than a Seller default beyond applicable notice and cure periods, Purchaser shall, subject to Purchaser’s document
retention policies, destroy (and certify to Seller the destruction of) such materials to the extent such materials contain or
are based upon confidential information. Purchaser’s obligation to deliver the Property Documents and the Reports to
Seller shall survive the termination of this Agreement (not to exceed two (2) years) but shall not survive Closing. 

 

4.4   Service
Contracts. Purchaser and Seller acknowledge and agree that as a result of the nature of
this transaction as a sale and leaseback to Seller pursuant to the terms of the Leases (as defined below), Seller will retain
certain contract rights related to the operation, ownership or management of the Real Property, including maintenance,
service, construction, supply, electric utility service, and equipment rental contracts (collectively, the
“Service Contracts”), in its capacity as the tenant under the Leases, and such Service Contracts
will not be terminated by Seller, or assumed by Purchaser, on the Closing Date. Any Service Contracts shall be held solely in
the name of Seller (and not binding upon Purchaser or the Real Property), as tenant under the Leases, during the term of the
Leases, and shall be terminated by Seller prior to the expiration of the Leases; provided however, that such Service
Contracts shall be assigned, amended or terminated by Seller at Closing pursuant to the terms and conditions of Section
7.9.

 

Purchase and Sale Agreement 

6250 Lyndon B. Johnson Freeway, Dallas, Texas 

4404 South Beltwood Parkway, Farmers Branch, Texas 

14621, 14639
and 14601 Inwood Road, Addison, Texas

 14303 Inwood Road, Farmers Branch, Texas

 

    7

     

    

 

4.5  
Proprietary Information; Confidentiality. Purchaser acknowledges that the Property
Documents are and shall remain proprietary and confidential and will be delivered to Purchaser solely to assist Purchaser in evaluating
the Property. The term confidential or proprietary information does not include any information that Purchaser can reasonably establish
(i) at the time of disclosure or thereafter is available to the public other than as a result of a disclosure by Purchaser or its
representatives, (ii) is already in Purchaser’s possession or becomes available to Purchaser on a non-confidential basis
from a source other than Seller or its representatives, provided that, such source is not known to Purchaser after reasonable inquiry
to be bound by an obligation of confidentiality to Seller or its affiliates or otherwise prohibited from transmitting the information
to Purchaser by a contractual, legal or fiduciary obligation, or (iii) has been independently developed by Purchaser or its representatives
without reference to or reliance upon the confidential or proprietary information and without otherwise violating your obligations
hereunder. Purchaser shall not disclose the contents to any person other than to those persons who are responsible for evaluating
Purchaser’s acquisition or financing of the Property, including Purchaser’s investors, and those who have agreed to
preserve the confidentiality of such information as required hereby (collectively, “Permitted Outside Parties”).
Notwithstanding the foregoing, Purchaser may disclose such contents as (a) expressly required under applicable laws or (b) expressly
required by appropriate written judicial order, subpoena or demand issued by a court of competent jurisdiction (but will first
give Seller written notice of the requirement and will cooperate with Seller so that Seller, at its expense, may seek an appropriate
protective order and, in the absence of a protective order, Purchaser may disclose only such content as may be necessary to avoid
any penalty, sanction, or other material adverse consequence, and Purchaser will use reasonable efforts to secure confidential
treatment of any such content so disclosed). Purchaser shall not divulge the contents of the Property Documents and other information
except in strict accordance with the standards set forth in this Section 4.5. In permitting Purchaser to review the
Property Documents or any other information, Seller has not waived any privilege or claim of confidentiality with respect thereto,
and no third-party benefits or relationships of any kind, either express or implied, have been offered, intended or created. Purchaser’s
obligations under this Section 4.5 shall survive the termination of this Agreement for a period of one (1) year but
shall not survive Closing. Notwithstanding anything in this Agreement to the contrary, any confidentiality obligations or liabilities
of Purchaser to Seller, shall automatically terminate (and not survive) upon Closing.

 

4.6   No
Representation or Warranty by Seller. Purchaser acknowledges that, except for the
representations and warranties by Seller expressly set forth in this Agreement and any document executed by Seller and
delivered to Purchaser at Closing (collectively, the “Seller Undertakings”), Seller has not made
and does not make any warranty or representation regarding the truth, accuracy or completeness of the Property Documents or
the source(s) thereof. Purchaser further acknowledges that some if not all of the Property Documents were prepared by third
parties other than Seller. Subject to the Seller Undertakings, Seller expressly disclaims any and all liability for
representations or warranties, express or implied, statements of fact and other matters contained in such information, or for
omissions from the Property Documents, or in any other written or oral communications transmitted or made available to
Purchaser. Subject to the Seller Undertakings, Purchaser shall rely solely upon its own investigation with respect to the
Property, including, without limitation, the Property’s physical, environmental or economic condition, compliance or
lack of compliance with any ordinance, order, permit or regulation or any other attribute or matter relating thereto. Subject
to the Seller Undertakings, Seller has not undertaken any independent investigation as to the truth, accuracy or completeness
of the Property Documents and are providing the Property Documents solely as an accommodation to Purchaser.

 

4.7  
Purchaser’s Responsibilities. In conducting any inspections, investigations
or tests of the Property and/or Property Documents, Purchaser and its agents and representatives shall: (a)  not interfere
with the operation and maintenance of the Property by Seller; (b) not damage any part of the Property or any personal
property owned by Seller; (c) not injure or otherwise cause bodily harm to Seller or its agents, guests, tenants, invitees,
contractors and employees; (d) comply with all applicable laws; (e) promptly pay when due the costs of
all tests, investigations, and examinations done with regard to the Property by Purchaser and its agents and representatives; (f) not
permit any liens to attach to the Real Property by reason of the exercise of its rights hereunder; (g) repair any damage
to the Real Property resulting directly from any such inspection or tests; and (h) not reveal or disclose prior to
Closing any Property Documents to anyone other than the Permitted Outside Parties, in accordance with the confidentiality standards
set forth in Section 4.5 above. Notwithstanding anything in this Agreement to the contrary, Purchaser shall have no
obligation to repair any damage to the extent caused by Seller’s negligence or willful misconduct, or to remediate, contain,
abate or control any materials not placed on or introduced to the Property by Purchaser or its agents and representatives (except
to the extent any action of Purchaser or its Representatives disturbs any such existing materials in a manner which causes damage
or contamination), or to repair or restore any latent condition discovered by Purchaser or its consultants, except to the extent
any action by Purchaser or its Representatives exacerbates such condition. Purchaser’s obligations under this Section 4.7
shall survive the termination of this Agreement but shall not survive Closing, except and only to the extent such damage caused
by Purchaser materially and adversely affects Seller’s post-Closing operations at the Property, in which case Purchaser shall
perform such work after Closing.

 

Purchase and Sale Agreement 

6250 Lyndon B. Johnson Freeway, Dallas, Texas 

4404 South Beltwood Parkway, Farmers Branch, Texas 

14621, 14639
and 14601 Inwood Road, Addison, Texas

 14303 Inwood Road, Farmers Branch, Texas

 

    8

     

    

 

4.8   Purchaser’s
Agreement to Indemnify. PURCHASER SHALL INDEMNIFY, DEFEND AND HOLD HARMLESS SELLER FROM
ANY AND ALL LOSSES, COSTS, LIENS, CLAIMS, CAUSES OF ACTION, LIABILITY, DAMAGES, EXPENSES AND LIABILITY (INCLUDING, WITHOUT
LIMITATION, COURT COSTS AND REASONABLE ATTORNEYS’ FEES) (collectively,
“Losses”) INCURRED BY SELLER, THAT ARISE FROM OR OUT of
THE ACT OR OMISSION OF PURCHASER OR ITS AGENTS OR REPRESENTATIVES IN CONNECTION WITH PURCHASER’S INSPECTIONS OR TESTS
PERMITTED UNDER THIS AGREEMENT OR ANY VIOLATION BY PURCHASER, ITS AGENTS, REPRESENTATIVES, OF THE PROVISIONS OF SECTION 4.2
OR SECTION 4.7; PROVIDED, HOWEVER, THE INDEMNITY SHALL NOT EXTEND TO PROTECT SELLER FROM LOSSES RESULTING FROM (A) ANY
PRE-EXISTING CONDITION MERELY DISCOVERED BY PURCHASER (I.E., LATENT ENVIRONMENTAL CONTAMINATION), SO LONG AS
PURCHASER’S ACTIONS DO NOT AGGRAVATE or exacerbate ANY SUCH PRE-EXISTING CONDITION, OR (B) THE GROSS NEGLIGENCE OR
INTENTIONAL MISCONDUCT SELLER OR THEIR RESPECTIVE EMPLOYEES, AGENTS, OR REPRESENTATIVES. THIS INDEMNITY PROVISION
SHALL SURVIVE TERMINATION OR EXPIRATION OF THIS AGREEMENT FOR A PERIOD OF TWO (2) YEARS.

 

Article 5

Title and Survey

 

5.1  
Title Commitment and Survey. Seller will use
reasonable diligence to cause to be delivered to Purchaser within ten (10) days after the Effective Date (i) Commitments for Title
Insurance with hyperlinked copies of all recorded instruments affecting each Tract and recited as exceptions in the Commitments
for Title Insurance (collectively, the “Commitments”) and (ii) a copy of the most recent survey of each
Tract in Seller's possession (the “Survey”). If Purchaser or the Title Company requires a new survey
of any Tract for any reason, then Purchaser, at Purchaser's cost and within thirty (30) days after the Effective Date, shall obtain
a new survey (“New Survey”) of such Tracts made on the ground by a registered professional land surveyor
that conforms to the requirements of an ALTA/ACSM minimum standard detail survey. If Purchaser has an objection to items disclosed
in any Commitment or Survey, then Purchaser may give Seller written notice of its objections for a period of five (5) days after
receipt of the latter of all of the Commitments and Surveys, but in any event prior to the expiration of the Due Diligence Period.
If Purchaser gives timely written notice of its objections, then Seller may, but has no obligation to, cure those objections. Seller
shall utilize reasonable diligence to cure any errors in the Commitments, provided Seller has no obligation to expend any money,
to incur any contractual or other obligations, or to institute any litigation in pursuing its efforts other than to remove at Closing:
(a) liens securing a mortgage, deed of trust or trust deed evidencing an indebtedness of Seller; (b) judgment
liens against Seller; (c) tax liens; (d) broker’s liens; (e) mechanics liens arising
by, through or under Seller; and (f) any other monetary liens arising by, through or under Seller (collectively, “Seller
Mandatory Cure Items”). If any objection is not satisfied, then Purchaser may elect on or before expiration of the
Due Diligence Period, as its sole and exclusive remedy to either: (i) terminate this Agreement, in which case the Earnest Money
shall be returned to Purchaser, and neither party will have any further rights or obligations pursuant to this Agreement, other
than as set forth herein with respect to rights or obligations that survive termination; or (ii) waive the unsatisfied objection
(which shall thereupon become a Permitted Exception) and proceed to Closing. Any exception to title not objected to by Purchaser
in the manner and within the time period specified in this Section 5.1 shall be deemed accepted by Purchaser. The phrase
“Permitted Exceptions” means those exceptions to title set forth in the Commitments or Surveys and that
have been accepted or deemed accepted by Purchaser, other than Seller Mandatory Cure Items. The failure of Seller to deliver a
Commitment or a Survey satisfying the requirements of this Section 5.1 will not under any circumstances extend the
period for review of the Commitments or Surveys beyond the Due Diligence Period, and Purchaser's sole and exclusive remedy for
Seller's failure, if any, shall be to terminate this Agreement before the expiration of the Due Diligence Period, in which case
the Earnest Money shall be returned to Purchaser. Purchaser shall notify Seller in writing of any failure of any Commitment or
Survey to satisfy the requirements of this Section 5.1 within five (5) days after the Commitments and Surveys are received
by Purchaser, and if Purchaser fails to do so, then they shall be deemed to satisfy these requirements. If Purchaser obtains a
New Survey and the New Survey shows exceptions not previously shown on the applicable Survey, or if after the issuance of the Title
Commitment, the Title Company updates the Title Commitment to include a new exception (“New Exceptions”),
Seller shall be obligated to cure such New Exceptions to the extent any constitute Seller Mandatory Cure Items, otherwise such
New Exceptions shall be deemed Permitted Exceptions unless they are a result of a Seller breach under Section 6.1.3 hereof.

 

Purchase and Sale Agreement 

6250 Lyndon B. Johnson Freeway, Dallas, Texas 

4404 South Beltwood Parkway, Farmers Branch, Texas 

14621, 14639
and 14601 Inwood Road, Addison, Texas

 14303 Inwood Road, Farmers Branch, Texas

 

    9

     

    

 

5.2  
 Intentionally Omitted. 

 

5.3  
Delivery of Title Policy at Closing. In the event that the Title Company does
not unconditionally commit at Closing to issue to Purchaser an owner’s title policy insuring Purchaser’s indefeasible
fee simple title to the Real Property in the amount of the Purchase Price, subject only to the Permitted Exceptions (the “Title
Policy“), then Purchaser shall have the right, as its sole and exclusive remedy, to terminate this Agreement, in
which case the Earnest Money shall be immediately returned to Purchaser and the parties hereto shall have no further rights or
obligations, other than those that by their terms survive the termination of this Agreement. 

 

Article 6

Operations and Risk of Loss

 

6.1  
Ongoing Covenants and Operations. From the Effective Date through Closing:

 

6.1.1         
New Contracts. Seller will not amend any existing contract or agreement or enter into any new contract or agreement
that will be an obligation of, or binding upon, Purchaser or the Property (as opposed to being binding upon Seller only) subsequent
to Closing. Seller may enter into any contracts desired by Seller in the ordinary course of business that will not be binding upon
Purchaser or the Property after Closing. On or prior to Closing, Seller shall either terminate or assign all contracts (including
any Service Contracts) that would be binding upon Purchaser or the Property pursuant to the terms and conditions of Section
7.9, which terminations or assignments shall be effective no later than Closing. Seller shall pay all termination costs, liquidated
damages, fees and/or expenses related thereto, it being understood and agreed that Purchaser shall have no liability or obligations
for any Service Contracts.

 

Purchase and Sale Agreement 

6250 Lyndon B. Johnson Freeway, Dallas, Texas 

4404 South Beltwood Parkway, Farmers Branch, Texas 

14621, 14639
and 14601 Inwood Road, Addison, Texas

 14303 Inwood Road, Farmers Branch, Texas

 

    10

     

    

 

6.1.2         
Maintenance of Improvements; Tangible Personal Property. Subject to Sections 6.2 and 6.3,
Seller shall operate and manage the Property in substantially the same manner consistent with the Seller’s maintenance of
the Improvements during Seller’s period of ownership, provided, that, Seller shall not be obligated to make any capital repairs
or replacements to the extent Seller does not deem such repairs or replacements necessary in its discretion. Seller makes no representation
or warranty regarding the condition or state of repair of any or all of the Improvements, the Tangible Personal Property, or the
Excluded Tangible Personal Property located at or on the Property and undertakes no obligation regarding the security of the Excluded
Tangible Personal Property from and after the date of this Agreement, and Seller expressly disclaims any obligation to repair or
replace any of the Excluded Tangible Personal Property following destruction or loss of any nature. Seller shall promptly (and
in any event prior to Closing), deliver any Post-Effective Date Citation (as hereinafter defined) obtained by Seller. The parties
acknowledge and agree that the terms and conditions of this paragraph shall not modify the post-Closing obligations of the parties
as set forth in the Leases. Seller will not remove any Tangible Personal Property except as may be required for necessary repair
or replacement (in Seller’s discretion), and replacement shall be of equal or better quality as the removed item of Tangible
Personal Property.

 

6.1.3         
No Assignment or Disposition. Seller shall not sell, assign, alienate, lien, encumber or otherwise transfer
all or any part of the Property or any interest therein. Without limitation of the foregoing, Seller shall not grant any easement,
right of way, restriction, covenant or other comparable right affecting the Land or the Improvements without obtaining Purchaser’s
prior written consent (such consent not to be unreasonably withheld, condition or delayed). Except for this Agreement, Seller
shall not enter into any agreement, arrangement or understanding for the sale of the Property, whether conditional or otherwise.
Seller shall not apply for or consent to any change or modification with respect to the zoning development or use of any portion
of the Property without Purchaser’s prior written consent, which consent may be withheld in Purchase’s sole and absolute
discretion.

 

6.2  
Damage. If, prior to Closing, the Property is damaged by fire or other casualty,
Seller shall, in consultation with its insurance adjuster or other representative, reasonably estimate the cost to repair and the
time required to complete repairs and will provide Purchaser written notice of such estimation (the “Casualty Notice”)
as soon as reasonably possible after the occurrence of the casualty.

 

6.2.1         
Material. In the event of any Material Damage (as hereinafter defined) to or destruction of the Property or any
portion thereof prior to Closing, either Seller or Purchaser may, at its option, terminate this Agreement by delivering written
notice to the other on or before the expiration of ten (10) days after the date Seller delivers the Casualty Notice to Purchaser
(and if necessary, the Closing Date shall be extended to give the parties the full ten (10) day period to make such election and
to obtain insurance settlement agreements with Seller’s insurers and agree upon repair and restoration of the affected Property).
Upon any such termination, the Earnest Money shall be returned to Purchaser and the parties hereto shall have no further rights
or obligations hereunder, other than those that by their terms survive the termination of this Agreement. If neither Seller nor
Purchaser so terminates this Agreement within said ten (10) day period, then the parties shall be deemed to have waived the right
to terminate under this Section 6.2.1 and the parties shall proceed under this Agreement and close on schedule (subject
to extension of Closing as provided above), and as of Closing, to the extent permitted by the terms of the applicable policies,
Seller shall assign to Purchaser, without representation or warranty by or recourse against Seller, all of Seller’s rights
in and to any resulting insurance proceeds (including any rent loss insurance applicable to any period on and after the Closing
Date) due Seller as a result of such damage or destruction (or if such have not been awarded, all of Seller’s right, title
and interest to any claims and proceeds Seller has with respect to any casualty insurance policies relating to the Property in
question, to the extent the same are assignable pursuant to the terms of the applicable policies; provided, however, should Seller’s
insurance policy prohibit the assignment of such proceeds, Seller shall provide Buyer with a credit to the Purchase Price at Closing
in an amount equal to the proceeds.) and Purchaser shall assume full responsibility for all needed repairs, and Purchaser shall
receive a credit at Closing for any deductible or self-insured amount under such insurance policies (“Insurance Proceeds
Assignment”). For the purposes of this Agreement, “Material Damage” and “Materially
Damaged” means damage that, in the opinion of an architect or other third-party contractor selected by Seller and
reasonably approved by Purchaser, exceeds (or is estimated to exceed) $1,500,000.00 to repair.

 

Purchase and Sale Agreement 

6250 Lyndon B. Johnson Freeway, Dallas, Texas 

4404 South Beltwood Parkway, Farmers Branch, Texas 

14621, 14639
and 14601 Inwood Road, Addison, Texas

 14303 Inwood Road, Farmers Branch, Texas

 

    11

     

    

 

6.2.2          Not
Material. If a casualty occurs but the Real Property is not Materially Damaged, then neither Purchaser nor Seller
shall have the right to terminate this Agreement pursuant to this Section 6.2 (a “Non-Material Pre-Closing
Casualty”), and subject to an Insurance Proceeds Assignment to Purchaser, the parties shall proceed to Closing
subject to the terms of this Agreement, and such damage shall be restored by Purchaser post-Closing pursuant to (but only to
the extent required by) the terms and conditions of the Leases, and Purchaser shall reasonably cooperate with Seller, in its
capacity as tenant under the Leases, regarding such restoration, pursuant to the terms and conditions of the Leases.
Notwithstanding the foregoing, if the insurance proceeds to be assigned pursuant to the Insurance Proceeds Assignment are
less than the cost to repair the damage, in the opinion of an architect or other third-party contractor selected by Seller
and reasonably approved by Purchaser, Purchaser shall receive a credit at Closing in the amount of such difference. The
provisions of this Section 6.2.2 shall survive Closing.

 

6.3  
Condemnation. If proceedings in eminent domain are instituted with respect to the
Property or any portion thereof that would materially and adversely interfere with the present use of the Real Property as currently
utilized by Seller, or if such proceedings are instituted with respect to any portion of the Improvements, Purchaser may, at its
option, by written notice to Seller given within ten (10) days after Seller notifies Purchaser in writing of such proceedings (and
if necessary the Closing Date shall be automatically extended to give Purchaser the full ten (10) day period to make such election),
either: (a) terminate this Agreement, in which case the Earnest Money shall be immediately returned to Purchaser and
the parties hereto shall have no further rights or obligations, other than those that by their terms survive the termination of
this Agreement, or (b) proceed under this Agreement, in which event Seller shall, at the Closing, assign to Purchaser
its entire right, title and interest in and to any condemnation award, and Purchaser shall have the sole right after the Closing
to negotiate and otherwise deal with the condemning authority in respect of such matter. If Purchaser does not give Seller written
notice of its election within the time required above, then Purchaser shall be deemed to have elected option (b) above.

 

6.4  
Insurance Policies. Seller shall, at its sole cost and expense, use commercially
reasonably efforts to maintain Seller’s existing insurance coverage with respect to the Property to the extent such policies
remain available at similar rates as of the date hereof.

 

6.5  
Leaseback. Commencing on the Closing Date, Purchaser,
as landlord, shall lease to, as applicable, Tuesday Morning Partners, Ltd. and Tuesday Morning, Inc. (collectively, “Tuesday
Tenant”), as tenant, all of the Land and Improvements pursuant to leases in substantially
the form attached hereto as Exhibits E-1 and E-2 (the “Leases”).
In the event of any conflict or inconsistency between the terms of this Agreement and the terms of either of the Leases, the terms
of the applicable Lease shall prevail. The parties acknowledge and agree that the Leases attached hereto represent the final material
monetary terms of such Leases (including all provisions relating to lease term and rent payable thereunder) but certain non-monetary
provisions may be revised prior to Closing to a de minimus extent.

 

6.6  
Notices. Seller covenants and agrees with Purchaser from the date hereof and until
the Closing, to promptly notify Purchaser of all written notices received or sent by Seller relating to (i) violations of laws,
ordinances, orders, directives, regulations or requirements issued by, filed by or served by, any governmental authority against
or affecting any of the Property; or (ii) any default or violation under any of the Permitted Exceptions.

 

Purchase
and Sale Agreement 

6250 Lyndon B. Johnson Freeway, Dallas, Texas 

4404 South Beltwood Parkway, Farmers Branch, Texas 

14621, 14639 and 14601 Inwood Road, Addison, Texas

14303 Inwood Road, Farmers Branch, Texas

 

    12

     

    

 

Article 7

Closing

 

7.1  
Closing. The consummation
of the transaction contemplated herein (“Closing”) shall occur on the Closing Date by
mail at the offices of Escrow Agent (or such other location as may be mutually agreed upon by Seller and Purchaser). Funds shall
be deposited into and held by Escrow Agent in a closing escrow account with a bank satisfactory to Purchaser and Seller. Upon
satisfaction or completion of all closing conditions and deliveries, the parties shall direct Escrow Agent to immediately record
and deliver the closing documents to the appropriate parties and make disbursements according to the closing statements executed
by Seller and Purchaser.

 

7.2  
Conditions to Parties’ Obligation to Close. In addition to all other conditions
set forth herein, the obligation of Seller, on the one hand, and Purchaser, on the other hand, to consummate the transactions contemplated
hereunder are conditioned upon the following:

 

7.2.1         
Representations and Warranties and Covenants. The other party’s representations and warranties contained
herein shall be true and correct in all material respects as of the Effective Date and the Closing Date as if specifically remade
at Closing.

 

7.2.2         
Covenants and Deliveries. As of the Closing Date, the other party shall have performed its obligations and covenants
hereunder in all material respects and tendered all deliveries to be made by such party at Closing.

 

7.2.3         
Actions, Suits, etc. Other than in connection with the Bankruptcy Proceeding, there shall exist no existing,
pending or threatened in writing actions, suits, arbitrations, claims, attachments, proceedings, assignments for the benefit of
creditors, insolvency, bankruptcy, reorganization or other proceedings, against the other party that would materially and adversely
affect that party’s ability to perform its obligations under this Agreement.

 

7.2.4         
Title Policy. As a condition benefitting Purchaser only, the Title Company’s shall be unconditionally committed
to issuing the Title Policy pursuant to Section 5.3.

 

7.2.5         
Bankruptcy Court Sale Approval. Seller and certain affiliates are currently debtors and debtors-in-possession
in Chapter 11 proceedings in The United States Bankruptcy Court for the Northern District of Texas (the “Bankruptcy
Court”) under the consolidated case styled In re: Tuesday Morning Corporation, et al., Case number 20-31476-HDH-11
(the “Bankruptcy Proceeding”). Seller’s and Buyer’s obligations hereunder are subject to
(i) no order or determination being entered or withheld by the Bankruptcy Court that would materially impede the Closing from occurring
by the Closing Date (“Court Intervention”); (ii) entry of a final, non-appealable order (a “Plan
Confirmation Order”) confirming a plan of reorganization proposed by the Seller (the “Reorganization
Plan”) and (iii) the effectiveness of the Reorganization Plan.

 

Purchase and Sale Agreement 

6250 Lyndon B. Johnson Freeway, Dallas, Texas 

4404 South Beltwood Parkway, Farmers Branch, Texas 

14621, 14639
and 14601 Inwood Road, Addison, Texas

 14303 Inwood Road, Farmers Branch, Texas

 

    13

     

    

 

If any condition
to a party’s obligation to proceed with the Closing hereunder (such party, the “Performing
Party”) has not been satisfied as of the Closing Date (or such earlier date as is provided herein, and in the
case of a Court Intervention, the date of the occurrence of Court Intervention), subject to any applicable notice and cure
periods provided in Sections 10.1 and 10.2, such party may, in its sole discretion, terminate this
Agreement by delivering written notice (a “Condition Failure Termination Notice”) to the other
party (the “Non-Performing Party”) on or before the Closing Date (or such earlier date as is
provided herein), or elect to close (or to permit any such earlier termination deadline to pass) notwithstanding the
non-satisfaction of such condition, in which event the Performing Party shall be deemed to have waived any such condition
(provided that neither party may waive the condition set forth in Section 7.2.5 hereof). In the event the Performing
Party elects to close (or to permit any such earlier termination deadline to pass), notwithstanding the non-satisfaction of
such condition, the Performing Party shall be deemed to have waived said condition, and there shall be no liability on the
part of the Non-Performing Party for breaches of representations and warranties of which the Performing Party had knowledge
prior to Closing. The failure of a condition precedent to Closing that has not been satisfied on or prior to Closing through
no act or omission of the Non-Performing Party in violation of this Agreement shall not be a default hereunder but shall not
limit the right of the Performing Party to terminate this Agreement as a result thereof. Further, should the Performing Party
elect to terminate this Agreement pursuant to this paragraph, the Performing Party shall be entitled to the Earnest Money and
Independent Consideration upon termination; provided, however, if the conditions set forth in Section 7.2.5 are not satisfied
and the Agreement is terminated, Buyer shall be entitled to the Earnest Money and Independent Consideration.

 

Notwithstanding the
foregoing, in the event that, (a) prior to the Closing, Purchaser obtains actual knowledge of information (from whatever
source, including, without limitation, as a result of Purchaser’s due diligence tests, investigations and inspections of
the Property, by disclosure from Seller or Seller’s agents and employees or otherwise) that renders any of Seller’s
representations and warranties materially untrue or incorrect, and (b) Purchaser promptly delivers a Condition Failure Termination
Notice as a result thereof, then Seller shall have seven (7) Business Days following receipt of such Condition Failure Termination
Notice (“Seller’s Cure Period”) in which to take all steps necessary in Seller’s reasonable
estimation to render such representations and warranties materially true and correct; provided, however, the Seller’s Cure
Period shall automatically extend the Closing Date to the extent such Condition Failure Termination Notice is sent less than seven
(7) Business Days prior to the scheduled Closing Date. If, prior to the expiration of Seller’s Cure Period, Seller causes
such representations to be materially true and correct, then Purchaser’s Condition Failure Termination Notice shall be deemed
null and void. However, if, as of the expiration of Seller’s Cure Period, Seller has not rendered such representation and
warranty materially true and correct, this Agreement shall terminate as set forth above and Purchaser shall be entitled to the
Earnest Money and Independent Consideration.

 

7.3  
Seller’s Deliveries in Escrow. As of or prior to the Closing Date, Seller
shall deliver in escrow to Escrow Agent the following:

 

7.3.1         
Deed. A special warranty deed (or, at Purchaser’s request, multiple deeds) in the form of Exhibit B
hereto, executed and acknowledged by Seller, conveying to Purchaser Seller’s fee interest in the Real Property (the “Deed”);

 

7.3.2         
Bill of Sale and Assignment Agreement. A Bill of Sale and Assignment Agreement in the form of Exhibit C
hereto (the “Assignment”), executed by Seller vesting in Purchaser Seller’s right, title and interest
in and to the property described therein free of any claims, except for the Permitted Exceptions to the extent applicable;

 

7.3.3         
FIRPTA. A Foreign Investment in Real Property Tax Act affidavit in the form of Exhibit D
hereto executed by Seller;

 

Purchase and Sale Agreement 

6250 Lyndon B. Johnson Freeway, Dallas, Texas 

4404 South Beltwood Parkway, Farmers Branch, Texas 

14621, 14639
and 14601 Inwood Road, Addison, Texas

 14303 Inwood Road, Farmers Branch, Texas

 

    14

     

    

 

7.3.4          Authority.
Evidence of the existence, organization and authority of Seller and of the authority of the persons executing documents on
behalf of Seller reasonably satisfactory to the underwriter for the Title Policy, it being expressly agreed that Seller shall
have no obligation to provide evidence of authority to Purchaser;

 

7.3.5         
Leases. The Leases, executed by Tuesday Morning Partners, Ltd. and Tuesday
Morning, Inc., as applicable; and

 

7.3.6         
Owner’s Affidavit. An Owner’s Affidavit and a “gap” affidavit, each, executed by Seller
and in form and substance reasonably acceptable to the Title Company and Seller, but sufficient to delete the standard exceptions
to the Title Policy, including, without limitation, the exceptions related to the parties in possession (other than the Leases)
and mechanic’s liens.

 

7.3.7         
Additional Documents. Any additional documents that Escrow Agent or the Title Company may reasonably require
for the proper consummation of the transactions contemplated by this Agreement (provided, however, no such additional document
shall expand any obligation, covenant, representation or warranty of Seller or result in any new or additional obligation, covenant,
representation or warranty of Seller under this Agreement beyond those expressly set forth in this Agreement).

 

7.4  
Purchaser’s Deliveries in Escrow. As of or prior to the Closing Date, Purchaser
shall deliver in escrow to Escrow Agent the following:

 

7.4.1         
Bill of Sale, Assignment and Assumption. The Assignment, executed and acknowledged by Purchaser;

 

7.4.2         
Leases. The Leases, each executed by Purchaser; and

 

7.4.3         
Additional Documents. Any additional documents that Seller, Escrow Agent or the Title Company may reasonably
require for the proper consummation of the transaction contemplated by this Agreement (provided, however, no such additional document
shall expand any obligation, covenant, representation or warranty of Purchaser or result in any new or additional obligation, covenant,
representation or warranty of Purchaser under this Agreement beyond those expressly set forth in this Agreement).

 

7.5  
Closing Statements. As of or prior to the Closing Date, Seller and Purchaser shall
deposit with Escrow Agent executed closing statements consistent with this Agreement in the form required by Escrow Agent.

 

7.6  
Purchase Price. At or before 2:30 p.m. (local time at the Real Property) on the
Closing Date, Purchaser shall deliver to Escrow Agent the Purchase Price, less the Earnest Money that is applied to the Purchase
Price, plus or minus applicable prorations, in immediate, same-day U.S. federal funds wired for credit into Escrow Agent’s
escrow account, which funds must be delivered in a manner to permit Escrow Agent to deliver good funds to Seller or its designee
on the Closing Date (and, if requested by Seller, by wire transfer); in the event that Escrow Agent is unable to deliver good funds
to Seller or its designee on the Closing Date, then the closing statements and related prorations will be revised as necessary.

 

7.7  
 Possession. Seller shall deliver possession of the Property to Purchaser at the
Closing subject only to the Permitted Exceptions and the Leases.

 

Purchase and Sale Agreement 

6250 Lyndon B. Johnson Freeway, Dallas, Texas 

4404 South Beltwood Parkway, Farmers Branch, Texas 

14621, 14639
and 14601 Inwood Road, Addison, Texas

 14303 Inwood Road, Farmers Branch, Texas

 

    15

     

    

 

 

7.8  
Delivery of Books and Records. On or prior to Closing, Seller shall deliver to the offices
of Purchaser’s property manager or to the Real Property to the extent in Seller’s possession or control: copies of
all maintenance records; plans and specifications; licenses, permits and certificates of occupancy; provided, however, the originals
of the same shall not be delivered until termination of the applicable Lease.

 

7.9
Termination or Assignment of Service Contracts. Seller shall deliver to Purchaser termination agreements or other evidence
reasonably satisfactory to Purchaser that all Service Contracts that would be binding upon Purchaser or the Property have either
been (a) terminated effective upon the Closing Date and at no cost to Purchaser or to the Property, or (b) assigned to Seller
in its capacity as tenant of the Property or amended to clarify that Seller is no longer the owner of the Property, without any
right of the applicable service provider to make a claim against Purchaser or the Property.

 

Article 8

Prorations, Deposits, Commissions

 

8.1  
Prorations. At Closing, the following items shall be prorated as of the Closing Date
on an accrual basis with all items of income and expense for the Property (a) accruing prior to the Closing Date being borne by
Seller, and (b) accruing from and after (and including) the Closing Date being borne by Purchaser: fees and assessments; real
and personal ad valorem taxes (“Taxes”); and any assessments by private covenant for the then-current
calendar year of Closing. Specifically, the following shall apply to such prorations: 

 

8.1.1         
Taxes. If Taxes for the year of Closing are not known or cannot be reasonably estimated, Taxes shall be prorated based
on Taxes for the year prior to Closing and shall be promptly reprorated upon the issuance of final bills therefor. Prior to or
at Closing, Seller shall pay or have paid all Taxes that are due and payable prior to or on the Closing Date.

 

8.1.2         
Other Costs. As a result of the Leases, utilities, operating expenses, and other
such amounts attributable to the Improvements shall not be prorated, and Seller shall remain liable for such amounts to the extent
accruing during the term of the Leases (or prior to Closing). 

 

8.2  
Closing Costs. Closing costs shall be allocated between Seller and Purchaser in accordance
with Section 1.2.

 

8.3  
Final Adjustment After Closing. If final bills are not available or cannot be issued
prior to Closing for any item being prorated under Section 8.1, then Purchaser and Seller agree to allocate such items
on a fair and equitable basis as soon as such bills are available, final adjustment to be made as soon as reasonably possible
after the Closing. Payments in connection with the final adjustment shall be due within thirty (30) days of written notice. All
such rights and obligations shall survive the Closing.

 

Purchase
and Sale Agreement 

6250 Lyndon B. Johnson Freeway, Dallas, Texas 

4404 South Beltwood Parkway, Farmers Branch, Texas 

14621, 14639 and 14601 Inwood Road, Addison, Texas

14303 Inwood Road, Farmers Branch, Texas

 

    16

     

    

 

8.4  
Commissions. Seller shall be responsible to the Broker for a real estate sales commission
at Closing (but only in the event of a Closing in strict accordance with this Agreement) pursuant to a separate written agreement
(including any real estate sales commission applicable to the Leases, if any). Purchaser shall be responsible to Lee & Associates
for a real estate sales commission at Closing pursuant to a separate written agreement. Under no circumstances shall Seller owe
a commission or other compensation directly to any other broker, agent or person. Other than as stated above in this Section 8.4,
Seller and Purchaser each represent and warrant to the other that no real estate brokerage commission is payable to any person
or entity in connection with the transaction contemplated hereby or the Leases, and each agrees to and does hereby indemnify and
hold the other harmless against the payment of any commission to any other person or entity claiming by, through or under Seller
or Purchaser, as applicable. This indemnification shall extend to any and all claims, liabilities, costs and expenses (including
reasonable attorneys’ fees and litigation costs) arising as a result of such claims and shall survive the Closing.

 

Article 9

Representations and Warranties

 

9.1  
Seller’s Representations and Warranties. Seller represents and warrants to Purchaser
as of the Effective Date and as of the Closing Date that:

 

9.1.1         
Organization and Authority. Seller has been duly organized, is validly existing, and is in good standing in the state
in which it was formed. Subject to entry of the Plan Confirmation Order and effectiveness of the Reorganization Plan, this Agreement
has been, and all of the documents to be delivered by Seller at the Closing will be, authorized and executed and constitute, or
will constitute, as appropriate, the valid and binding obligation of Seller, enforceable in accordance with their terms.

 

9.1.2         
Conflicts and Pending Actions. To Seller’s knowledge, there is no agreement to which Seller is a party or that
is binding on Seller under which Seller will be in default as a result of entering into or consummating this Agreement. To Seller’s
knowledge, other than in connection with the Bankruptcy Proceeding there is no litigation, action or proceeding pending either
(a) against Seller, which challenges or impairs Seller’s ability to execute or perform its obligations under this
Agreement, or (b) relating to the Property by reason of Seller’s ownership or operation of the Property or any portion
thereof. Except for those rights previously disclosed to Purchaser, no rights of first offer or rights of first refusal regarding
the Property exist under the organizational documents of Seller or under any agreement by which Seller or the Property is or may
be bound or affected.

 

9.1.3         
Condemnation. Except as may be reflected by the Property Documents or otherwise
disclosed in writing to Purchaser, Seller has received no written notice from any governmental authority having jurisdiction over
the Real Property that it is presently the subject of any condemnation or similar proceeding.

 

9.1.4         
 Prohibited Persons and Transactions. Seller represents and warrants to Purchaser that Seller is currently in compliance
with and shall at all times during the term of this Agreement (including any extension thereof) remain in compliance with the
regulations of the Office of Foreign Asset Control (“OFAC”) of the Department of the Treasury (including
those named on OFAC’s Specially Designated and Blocked Persons List) and any statute, executive order (including the September 24,
2001, Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism),
or other governmental action relating thereto.

 

9.1.5         
Compliance With Laws. Seller has not received written notice from any governmental or quasi-governmental authority
of any violations of any laws affecting or applicable to any or all of the Property which remain uncured.

 

9.1.6         
Employees. There is no bargaining unit or union contract relating to any employees of Seller.

 

9.1.7         
Intentionally Omitted.  

 

Purchase
and Sale Agreement 

6250 Lyndon B. Johnson Freeway, Dallas, Texas 

4404 South Beltwood Parkway, Farmers Branch, Texas 

14621, 14639 and 14601 Inwood Road, Addison, Texas

14303 Inwood Road, Farmers Branch, Texas

 

    17

     

    

 

9.1.8         
ERISA. Neither the execution and delivery of this Agreement nor any of the transactions contemplated thereunder involve
any transaction that is subject to the prohibitions of Section 406 of ERISA or in connection with which a tax could be imposed
pursuant to Section 4975(c) of the Code.

 

9.1.9         
Property Documents. To Seller’s knowledge, the Property Documents delivered to Purchaser pursuant to Section
4.1 are correct copies, in all material respects, of the Property Documents in Seller’s possession and control.

 

9.1.10     
Tax Appeals. Except as disclosed in the Property Documents, Seller has not (a) submitted an application for
the creation of any special taxing district affecting the Property, or annexation thereby, or inclusion therein, or (b) received
written notice that any governmental or quasi-governmental agency or authority intends to impose or increase any special or other
assessment against the Property, or any part thereof, including assessments attributable to revaluations of the Property. Except
as disclosed in the Property Documents, there is no ongoing appeal with respect to taxes or special assessments on the Property
for any year, and any consultants engaged to perform work with respect to appeals of taxes or special assessments on the Property
have been paid in full.

 

9.1.11     
Leases. Other than the Permitted Exceptions and the Leases, there are no leases, licenses or occupancy agreements binding
upon the Property.

 

9.1.12     
Hazardous Substances. Except as disclosed in the Property Documents, to Seller’s knowledge, Seller has not received
any written notice from any governmental agency having jurisdiction over the Property advising Seller that the Property is in
violation of any Environmental Laws.

 

9.1.13     
No Liens or Encumbrances. Seller's ownership of the Property does not include
any tenants-in-common ownership, undivided interest ownership nor fractional ownership interest.

 

9.1.14     
Service Contracts. To Seller’s knowledge, the Service Contracts delivered to Purchaser as a part of the Property
Documents are the only Service Contracts currently affecting the Property. Seller has not received nor given any written notice
of material default under any Service Contract with respect to a material default that remains uncured as of the date hereof.
To Seller’s knowledge, the list of Service Contracts is attached hereto as Exhibit F, is true, correct and complete
in all material respects as of the date of this Agreement.

 

9.2  
Purchaser’s Representations and Warranties. Purchaser represents and warrants to
Seller that:

 

9.2.1         
Organization and Authority. Purchaser has been duly organized, is validly existing, and is in good standing in jurisdiction
in which it was formed. Purchaser has the full right and authority and has obtained any and all consents required to enter into
this Agreement and to consummate or cause to be consummated the transactions contemplated hereby. This Agreement has been, and
all of the documents to be delivered by Purchaser at the Closing will be, authorized and properly executed and constitute, or
will constitute, as appropriate, the valid and binding obligation of Purchaser, enforceable in accordance with their terms.

 

9.2.2         
Conflicts and Pending Action. There is no agreement to which Purchaser is a party or to Purchaser’s knowledge
binding on Purchaser which is in conflict with this Agreement. There is no action or proceeding pending or, to Purchaser’s
knowledge, threatened against Purchaser which challenges or impairs Purchaser’s ability to execute or perform its obligations
under this Agreement.

 

Purchase
and Sale Agreement 

6250 Lyndon B. Johnson Freeway, Dallas, Texas 

4404 South Beltwood Parkway, Farmers Branch, Texas 

14621, 14639 and 14601 Inwood Road, Addison, Texas

14303 Inwood Road, Farmers Branch, Texas

 

    18

     

    

 

9.2.3         
Prohibited Persons and Transactions. Purchaser represents and warrants to Seller that Purchaser is currently in compliance
with and shall at all times during the term of this Agreement (including any extension thereof) remain in compliance with the
regulations of OFAC (including those named on OFAC’s Specially Designated and Blocked Persons List) and any statute, executive
order (including the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions with Persons Who
Commit, Threaten to Commit, or Support Terrorism), or other governmental action relating thereto.

 

9.3  
Survival of Representations and Warranties. The representations and warranties set forth
in this Article 9 are made as of the Effective Date and are remade as of the Closing Date and shall not be deemed
to be merged into or waived by the instruments of Closing, but shall survive the Closing for a period of nine (9) months (the
“Survival Period”). Terms such as “to Seller’s knowledge,” “to
the best of Seller’s knowledge” or like phrases mean the actual present and conscious awareness or knowledge
of Phillip D. Hixon, the Executive Vice President of Store Operations for Seller, with oversight responsibility for all material
matters relating hereto (“Seller’s Representative”), without any duty of inquiry or investigation;
provided that so qualifying Seller’s knowledge shall in no event give rise to any personal liability on the part of Seller’s
Representative, or any officer or employee of Seller, on account of any breach of any representation or warranty made by Seller
herein. Terms such as “to Purchaser’s knowledge,” “to the best of Purchaser’s
knowledge” or like phrases mean the actual present and conscious awareness or knowledge of Brady Scott (“Purchaser
‘s Representative”), without any duty of inquiry or investigation; provided that so qualifying Purchaser’s
knowledge shall in no event give rise to any personal liability on the part of Purchaser’s Representative, or any officer
or employee of Purchaser, on account of any breach of any representation or warranty made by Purchaser herein. Said terms do not
include constructive knowledge, imputed knowledge, or knowledge Seller or Purchaser, as applicable, or such persons do not have
but could have obtained through further investigation or inquiry. Purchaser shall be deemed to have knowledge of all matters contained
in the Property Documents or any final third-party reports obtained by Purchaser. No broker, agent, or party other than
Seller is authorized to make any representation or warranty for or on behalf of Seller. Each party shall have the right to bring
an action against the other on the breach of a representation or warranty or covenant hereunder or in the documents delivered
by Seller at the Closing, but only on the following conditions: (1) the party bringing the
action for breach first learns of the breach after and gives written notice of such breach to the other party before the end of
the Survival Period and files such action on or before the expiration of the Survival Period, and (2) neither party shall
have the right to bring a cause of action for a breach of a representation or warranty or covenant unless the damage to such party
on account of such breach (individually or when combined with damages from other breaches) equals or exceeds $50,000.00 (the
“Floor”), in which event the excess amount of such claims above the Floor shall be actionable, subject
to the limitations of Seller’s liability set forth in this Section 9.3. Neither party shall have any liability after
Closing for the breach of a representation or warranty or covenant hereunder of which the other party hereto had knowledge prior
to Closing. Notwithstanding any other provision of this Agreement, any agreement contemplated by this Agreement, or any rights
which Purchaser might otherwise have at law, equity, or by statute, whether based on contract or some other claim, Purchaser agrees
that any liability of Seller to Purchaser will be limited to an amount equal to $750,000.00 (the “Cap”).
Purchaser agrees that, with respect to any alleged breach of representations and warranties contained in Article 9 of this
Agreement that is not timely raised by Purchaser to Seller in a written notice prior to the expiration of the Survival Period
(in accordance with the terms of this Section 10.2), the maximum liability of Seller for all such alleged breaches is limited
to $100.00. Notwithstanding anything herein to the contrary, in no event shall the Floor or the Cap apply to (i) Seller’s
obligations under Article 8, (ii) Seller’s obligations to turn over insurance proceeds, if any, post-Closing, pursuant
to Article 6, or (iii) liability of Seller for Seller’s fraud (including fraudulent concealment) as finally determined
by a court of competent jurisdiction. Any breach of a representation or warranty or covenant that is discovered prior to Closing
shall be governed by Article 10. 

 

Purchase
and Sale Agreement 

6250 Lyndon B. Johnson Freeway, Dallas, Texas 

4404 South Beltwood Parkway, Farmers Branch, Texas 

14621, 14639 and 14601 Inwood Road, Addison, Texas

14303 Inwood Road, Farmers Branch, Texas

 

    19

     

    

 

Article 10

Default and Remedies

 

10.1          
Seller’s Remedies. If Purchaser fails to consummate the purchase of the Property
pursuant to this Agreement for any reason except failure by Seller to perform hereunder, and in each case such default is not
cured by the earlier of the fifth (5th) day after written notice thereof from Seller or the Closing Date (except no
notice shall be required if Purchaser fails to close on the Closing Date), then Seller shall be entitled, as its sole and exclusive
remedy, to terminate this Agreement and recover the Earnest Money as liquidated damages and not as penalty, in full satisfaction
of claims against Purchaser hereunder. Seller and Purchaser agree that Seller’s damages resulting from Purchaser’s
default in its obligation to consummate the purchase of the Property pursuant to the terms and conditions of this Agreement are
difficult, if not impossible, to determine and the Earnest Money is a fair estimate of those damages which has been agreed to
in an effort to cause the amount of such damages to be certain. In all other events Seller’s remedies shall be limited to
those described in Sections 4.8, 8.4, 10.3 and 10.4 hereof, and nothing contained herein shall
be deemed to limit Purchaser’s indemnity or other obligations which expressly survive termination of this Agreement. Notwithstanding
the foregoing, in the event Purchaser defaults in any of its post-closing obligations or any obligations that survive Closing
or a termination of this Agreement, Seller shall have all of its remedies at law and in equity on account of such default. IN
NO EVENT SHALL PURCHASER'S DIRECT OR INDIRECT PARTNERS, SHAREHOLDERS, MEMBERS, OWNERS OR AFFILIATES, ANY OFFICER, DIRECTOR, MANAGER,
EMPLOYEE OR AGENT OF THE FOREGOING, OR ANY AFFILIATE OR CONTROLLING PERSON THEREOF HAVE ANY LIABILITY FOR ANY CLAIM, CAUSE
OF ACTION OR OTHER LIABILITY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE PROPERTY, WHETHER BASED ON CONTRACT, COMMON LAW,
STATUTE, EQUITY OR OTHERWISE.

 

10.2          
Purchaser’s Remedies. If Seller fails to consummate the sale of the Property pursuant
to this Agreement or otherwise defaults on its obligations hereunder at or prior to Closing for any reason except failure by Purchaser
to perform hereunder and in each case such default is not cured by the earlier of the fifth (5th) day after written
notice thereof from Purchaser or the Closing Date (except no notice shall be required if Seller fails to close on the Closing
Date), Purchaser may elect, as its sole remedies, either to (a) terminate this Agreement by giving Seller timely written
notice of such election prior to or at Closing and recover the Earnest Money and the Independent Consideration, in which event
Seller shall promptly reimburse Purchaser in an amount not to exceed $100,000.00 for any and all reasonable, third party
costs actually paid or incurred by Purchaser to negotiate this Agreement, conduct its due diligence investigations and otherwise
pursue the transactions contemplated hereby (including, attorneys’ fees, fees of environmental and other consultants, and
accountants’ fees incurred by Purchaser in connection with this Agreement and any action hereunder or the Property), after
receipt of invoices for such costs (which obligation shall survive any termination of this Agreement), or (b) waive
said failure or breach and proceed to Closing without any reduction in the Purchase Price. 

 

10.3          
Attorneys’ Fees. In the event either party hereto employs an attorney in connection
with claims by one party against the other arising from the operation of this Agreement, the non-prevailing party shall pay the
prevailing party all reasonable fees and expenses, including attorneys’ fees, incurred in connection with such claims.

 

Purchase
and Sale Agreement 

6250 Lyndon B. Johnson Freeway, Dallas, Texas 

4404 South Beltwood Parkway, Farmers Branch, Texas 

14621, 14639 and 14601 Inwood Road, Addison, Texas

14303 Inwood Road, Farmers Branch, Texas

 

    20

     

    

 

10.4          
Other Expenses. If this Agreement is terminated due to the default of a party, then the
defaulting party shall pay any fees or charges due to Escrow Agent for holding the Earnest Money as well as any escrow cancellation
fees or charges and any fees or charges due to the Title Company for preparation and/or cancellation of the Title Commitment.

 

IN
NO EVENT SHALL SELLER’S OR PURCHASER’S DIRECT OR INDIRECT PARTNERS, SHAREHOLDERS, OWNERS OR AFFILIATES, OR ANY OFFICER,
DIRECTOR, EMPLOYEE OR AGENT OF THE FOREGOING, OR ANY AFFILIATE OR CONTROLLING PERSON THEREOF HAVE ANY LIABILITY FOR ANY CLAIM,
CAUSE OF ACTION OR OTHER LIABILITY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE PROPERTY, WHETHER BASED ON CONTRACT, COMMON
LAW, STATUTE, EQUITY OR OTHERWISE.

 

Article 11

Disclaimers, Release and Indemnity

 

11.1          
Disclaimers By Seller. it is understood and agreed
that Seller and Seller’s agents or employees have not at any time made and are not now making, and they specifically
disclaim, any other warranties, representations or guaranties of any kind or character, express or implied, with respect to the
Property, EXCEPT TO THE EXTENT EXPRESSLY PROVIDED OTHERWISE IN THIS AGREEMENT AND ANY DOCUMENT EXECUTED BY SELLER AND DELIVERED
TO PURCHASER AT CLOSING, including, but not limited to, warranties, representations or guaranties as to (a) matters
of title (other than Seller’s special warranty of title to be contained in the Deed), (b) environmental matters relating
to the Property or any portion thereof, including, without limitation, the presence of Hazardous Materials in, on, under or in
the vicinity of the Property, (c) geological conditions, including, without limitation, subsidence, subsurface conditions,
water table, underground water reservoirs, limitations regarding the withdrawal of water, and geologic faults and the resulting
damage of past and/or future faulting, (d) whether, and to the extent to which the Property or any portion thereof is affected
by any stream (surface or underground), body of water, wetlands, flood prone area, flood plain, floodway or special flood hazard,
(e) drainage, (f) soil conditions, including the existence of instability, past soil repairs, soil additions or conditions
of soil fill, or susceptibility to landslides, or the sufficiency of any undershoring, (g) the presence of endangered species
or any environmentally sensitive or protected areas, (h) zoning or building entitlements to which the Property or any portion
thereof may be subject, (i) the availability of any utilities to the Property or any portion thereof including, without limitation,
water, sewage, gas and electric, (j) usages of adjoining property, (k) access to the Property or any portion thereof,
(l) the value, compliance with the plans and specifications, size, location, age, use, design, quality, description, suitability,
structural integrity, operation, title to, or physical or financial condition of the Property or any portion thereof, or any income,
expenses, charges, liens, encumbrances, rights or claims on or affecting or pertaining to the Property or any part thereof, (m) the
condition or use of the Property or compliance of the Property with any or all past, present or future federal, state or local
ordinances, rules, regulations or laws, building, fire or zoning ordinances, codes or other similar laws, (n) the existence
or non-existence of underground storage tanks, surface impoundments, or landfills, (o) any other matter affecting the stability
and integrity of the Property, (p) the potential for further development of the Property, (q) the merchantability of
the Property or fitness of the Property for any particular purpose, (r) the truth, accuracy or completeness of the Property
Documents, (s) tax consequences, or (t) any other matter or thing with respect to the Property.

 

		Purchaser’s
    signature and acknowledgement of the terms and provisions of this Section
    11.1

  

Purchase
and Sale Agreement 

6250 Lyndon B. Johnson Freeway, Dallas, Texas 

4404 South Beltwood Parkway, Farmers Branch, Texas 

14621, 14639 and 14601 Inwood Road, Addison, Texas

14303 Inwood Road, Farmers Branch, Texas

 

    21

     

    

  

11.2          
Sale “As Is, Where Is.” Purchaser acknowledges and agrees that upon Closing, Seller shall sell and convey
to Purchaser and Purchaser shall accept the Property “AS IS, WHERE IS, WITH ALL FAULTS,” except to the extent
expressly provided otherwise in this Agreement and any document executed by Seller and delivered to Purchaser at Closing. Further,
Purchaser acknowledges and agrees that Seller shall have no obligation whatsoever to remove, repair or otherwise account for any
Tangible Personal Property located on or at the Property. Except as expressly set forth
in this Agreement, including, without limitation seller’s representations and warranties set forth herein, and any document
executed by Seller and delivered to Purchaser at Closing, Purchaser has not relied and will not rely on, and Seller has not made
and is not liable for or bound by, any OTHER express or implied warranties, guarantees, statements, representations or information
pertaining to the Property or relating thereto (including specifically, without limitation, Property Documents packages distributed
with respect to the Property) made or furnished by Seller, or any property manager, real estate broker, agent or third party representing
or purporting to represent Seller, to whomever made or given, directly or indirectly, orally or in writing. Except with respect
to any representation or warranty of seller made hereunder, Purchaser ACKNOWLEDGES that it is relying solely on its own expertise
and that of Purchaser’s consultants in purchasing the Property and shall make an independent verification of the accuracy
of any documents and information provided by Seller. Purchaser will conduct such inspections and investigations of the Property
as Purchaser deems necessary, including, but not limited to, the physical and environmental conditions thereof, and shall rely
upon same. Purchaser acknowledges that Seller has afforded Purchaser a full opportunity to conduct such investigations of the
Property as Purchaser deemed necessary to satisfy itself as to the condition of the Property and the existence or non-existence
or curative action to be taken with respect to any Hazardous Materials on or discharged from the Property, and will rely solely
upon same and not upon any information provided by or on behalf of Seller or its agents or employees with respect thereto, other
than such representations, warranties and covenants of Seller as are expressly set forth in this Agreement and any document executed
by Seller and delivered to Purchaser at Closing. Except with respect to any representation or warranties of seller or any fraudulent
concealment on seller’s part, Upon Closing, Purchaser shall assume the risk that adverse matters, including, but not limited
to, adverse physical or construction defects or adverse environmental, health or safety conditions, may not have been revealed
by Purchaser’s inspections and investigations. Purchaser waives any and all rights or remedies it may have or be entitled
to, deriving from disparity in size or from any significant disparate bargaining position in relation to Seller.

 

	 	Purchaser’s
    signature and acknowledgement of the terms and provisions of this Section
    11.2

 

Purchase
and Sale Agreement 

6250 Lyndon B. Johnson Freeway, Dallas, Texas 

4404 South Beltwood Parkway, Farmers Branch, Texas 

14621, 14639 and 14601 Inwood Road, Addison, Texas

14303 Inwood Road, Farmers Branch, Texas

 

    22

     

    

   

11.3          
Seller Released from Liability. Purchaser acknowledges that it will and has had the opportunity to inspect the Property
prior to Closing, observe its physical characteristics and existing conditions and the opportunity to conduct such investigation
and study on and of the Property and adjacent areas as Purchaser deems necessary, and Purchaser hereby FOREVER RELEASES AND DISCHARGES
Seller from all responsibility and liability, whether arising before or after the Effective Date, and liabilities under the Comprehensive
Environmental Response, Compensation and Liability Act Of 1980 (42 U.S.C. Sections 9601 et seq.), as amended (“CERCLA”),
regarding the condition, valuation, salability or utility of the Property, or its suitability for any purpose whatsoever (including,
but not limited to, with respect to the presence in the soil, air, structures and surface and subsurface waters, of Hazardous
Materials or other materials or substances that have been or may in the future be determined to be toxic, hazardous, undesirable
or subject to regulation and that may need to be specially treated, handled and/or removed from the Property under current or
future federal, state and local laws, regulations or guidelines (collectively, “Environmental Laws”),
and any structural and geologic conditions, subsurface soil and water conditions and solid and hazardous waste and Hazardous Materials
on, under, adjacent to or otherwise affecting the Property); provided however, that the terms of this sentence (and this paragraph)
shall not apply to Seller’s duties, liabilities and obligations, solely as tenant under the Leases, accruing from and after
Closing pursuant to the Leases. Purchaser further hereby WAIVES (and by Closing this transaction will be deemed to have WAIVED)
any and all objections and complaints (including, but not limited to, federal, state and local statutory and common law based
actions, and any private right of action under any federal, state or local laws, regulations or guidelines to which the Property
is or may be subject, including, but not limited to, CERCLA) concerning the physical characteristics and any existing conditions
of the Property, whether arising before or after the Effective Date; provided however, that the terms of this sentence (and this
paragraph) shall not apply to Seller’s duties, liabilities and obligations, solely as tenant under the Leases, accruing
from and after Closing pursuant to the Leases. Purchaser further hereby assumes the risk of changes in applicable laws and regulations
relating to past, present and future environmental conditions on the Property and the risk that adverse physical characteristics
and conditions, including, without limitation, the presence of Hazardous Materials or other contaminants, may not have been revealed
by its investigation; provided however, that the terms of this sentence (and this paragraph) shall not apply to Seller’s
duties, liabilities and obligations, solely as tenant under the Leases, accruing from and after Closing pursuant to the Leases.
Notwithstanding anything in this Agreement to the contrary, (a) if Purchaser is named as a party in any litigation or investigation
brought by a third party (including a governmental or quasi-governmental entity) unrelated to Purchaser and Seller is not so named,
then Purchaser may, to the extent permitted by law, interplead or implead Seller in such action so long as no claim of contribution
or monetary relief is made by Purchaser against Seller; provided, however, that prior to the expiration of the Survival Period,
Purchaser may bring claims in accordance with Section 9.3 hereof, (b) the release described in this paragraph above
applies to Purchaser and its successors and assigns only, and does not bind any third party; and (c) the terms of this
paragraph shall not preclude Purchaser from raising in defense of any third party claims made against the Property or Purchaser
after Closing which relate to conditions first existing, or actions taken, during the period of Seller’s ownership of the
Property, the fact that Purchaser was not the owner of the Property at the time such third party claim arose so long as no claim
of contribution or monetary relief is made by Purchaser against Seller; provided however, that in no event shall this sentence
(or this paragraph) be construed to waive, modify or limit any of (i) Purchaser’s rights and remedies under the Leases
with respect to matters arising from or after Closing, or (ii) Seller’s duties, liabilities and obligations, under
the Leases to the extent accruing from and after Closing. Notwithstanding any provision contained in this section to the contrary,
this Section 11.3 shall not apply to any representation or warranty of Seller made in this Agreement or any other document executed
and delivered by Seller at Closing.

  

	 	Purchaser’s
    signature and acknowledgement of the terms and provisions of this Section
    11.3

 

Purchase
and Sale Agreement 

6250 Lyndon B. Johnson Freeway, Dallas, Texas 

4404 South Beltwood Parkway, Farmers Branch, Texas 

14621, 14639 and 14601 Inwood Road, Addison, Texas

14303 Inwood Road, Farmers Branch, Texas

 

    23

     

    

  

11.4          
“Hazardous Materials” Defined. For purposes hereof, “Hazardous
Materials” means “Hazardous Material,” “Hazardous Substance,” “Pollutant or Contaminant,”
and “Petroleum” and “Natural Gas Liquids,” as those terms are defined or used in Section 101 of CERCLA,
and any other substances regulated because of their effect or potential effect on public health and the environment, including,
without limitation, PCBs, lead paint, asbestos, urea formaldehyde, radioactive materials, putrescible materials, and infectious
materials.

 

11.5          
 Survival. The terms and conditions of this Article 11 shall expressly survive
the Closing and shall not merge with the provisions of any closing documents. 

 

Purchaser
acknowledges and agrees that the disclaimers and other agreements set forth herein are an integral part of this Agreement and
that Seller would not have agreed to sell the Property to Purchaser for the Purchase Price without the disclaimers and other agreements
set forth above.

 

Article 12

Miscellaneous

 

12.1          
Parties Bound; Assignment. This Agreement, and the terms, covenants, and conditions herein
contained, shall inure to the benefit of and be binding upon the heirs, personal representatives, successors, and assigns of each
of the parties hereto. Purchaser may assign its rights under this Agreement without the consent of Seller upon the following conditions:
(a) the assignee of Purchaser must be (i) an entity controlling, controlled by, or under common control with
Purchaser (a “Purchaser Control Entity”), or (ii) any entity in which one or more Purchaser Controlled
Entities directly or indirectly is the general partner (or similar managing partner, member or manager) or owns more than 50%
of the economic interests of such entity, (b) all of the Earnest Money must have been delivered in accordance herewith,
(c) the assignee of Purchaser shall assume all obligations of Purchaser hereunder, but Purchaser shall remain primarily
liable for the performance of Purchaser’s obligations, and (d) a copy of the fully executed written assignment
and assumption agreement shall be delivered to Seller at Closing. 

 

12.2          
Headings. The article, section, subsection, paragraph and/or other headings of this Agreement
are for convenience only and in no way limit or enlarge the scope or meaning of the language hereof.

 

12.3          
Invalidity and Waiver. If any portion of this Agreement is held invalid or inoperative,
then so far as is reasonable and possible the remainder of this Agreement shall be deemed valid and operative, and, to the greatest
extent legally possible, effect shall be given to the intent manifested by the portion held invalid or inoperative. The
failure by either party to enforce against the other any term or provision of this Agreement shall not be deemed to be a waiver
of such party’s right to enforce against the other party the same or any other such term or provision in the future.

 

Purchase
and Sale Agreement 

6250 Lyndon B. Johnson Freeway, Dallas, Texas 

4404 South Beltwood Parkway, Farmers Branch, Texas 

14621, 14639 and 14601 Inwood Road, Addison, Texas

14303 Inwood Road, Farmers Branch, Texas

 

    24

     

    

 

12.4          
Governing Law; Jurisdiction; Venue. This Agreement shall, in all respects, be governed,
construed, applied, and enforced in accordance with the law of the state in which the Real Property is located. EACH OF PURCHASER
AND SELLER HEREBY CONSENTS AND SUBMITS TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED WITHIN THE COUNTY OF DALLAS,
STATE OF TEXAS, AND IRREVOCABLY AGREES THAT ALL ACTIONS OR PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE OTHER
DOCUMENTS TO BE DELIVERED BY PURCHASER AND SELLER HEREUNDER SHALL BE LITIGATED EXCLUSIVELY IN SUCH COURTS. EACH OF PURCHASER AND
SELLER EXPRESSLY SUBMITS AND CONSENTS TO THE JURISDICTION OF THE AFORESAID COURTS AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS
OR ANY OTHER SIMILAR DEFENSE TO THE JURISDICTION OR VENUE OF SAID COURTS.

 

12.5          
Survival. The provisions of this Agreement that contemplate performance after the Closing
and the obligations of the parties not fully performed at the Closing (other than any unfulfilled closing conditions which have
been waived or deemed waived by the other party) shall survive the Closing and shall not be deemed to be merged into or waived
by the instruments of Closing.

 

12.6          
Entirety and Amendments. This Agreement embodies the entire agreement between the parties
and supersedes all other prior agreements and understandings relating to the Property. This Agreement may be amended or supplemented
only by an instrument in writing executed by the party against whom enforcement is sought. All Exhibits hereto are incorporated
herein by this reference for all purposes.

 

12.7          
Time. Time is of the essence in the performance of this Agreement.

 

12.8          
Confidentiality; Press Releases.
Purchaser shall make no public announcement or disclosure of any information related to this Agreement to outside brokers or third
parties, prior to Closing, without the prior written specific consent of Seller; provided, however, that Purchaser may, subject
to the provisions of Section 4.6, make disclosure of this Agreement to its Permitted
Outside Parties as necessary to perform its obligations hereunder and as may be required under laws or regulations applicable
to Purchaser. It is understood and agreed that money damages may not be a sufficient remedy for any breach of this Section and
that the Seller shall be entitled to specific performance and injunctive or other equitable relief as a remedy for any such breach.
Purchaser further agrees not to raise, as a defense or objection to the request or granting of such relief, that any breach of
this Section is or would be compensable by an award of money damages, and Purchaser agrees to waive any requirement for the security
or posting of any bond in connection with such remedy.  Such remedy shall not be deemed to be the exclusive remedy for breach
of this Section but shall be in addition to all other remedies available at law or equity to Seller.  Purchaser also agrees
to reimburse Seller and its representatives for all costs incurred by Seller and its representatives in connection with the enforcement
of this Section (including, without limitation, legal fees in connection with any such litigation, including any appeals therefrom).
The provisions of this Section shall survive Closing for a period of twelve (12) months.

 

Purchase
and Sale Agreement 

6250 Lyndon B. Johnson Freeway, Dallas, Texas 

4404 South Beltwood Parkway, Farmers Branch, Texas 

14621, 14639 and 14601 Inwood Road, Addison, Texas

14303 Inwood Road, Farmers Branch, Texas

 

    25

     

    

 

12.9          
Notices. All notices required or permitted hereunder shall be in
writing and shall be served on the parties at the addresses set forth in Section 1.3.
Any such notices shall, unless otherwise provided herein, be given or served (a) by depositing the same in the United States
mail, postage paid, certified and addressed to the party to be notified, with return receipt requested, (b) by overnight
delivery using a nationally recognized overnight courier, (c) by personal delivery, or (d) by electronic mail. Notices
shall be deemed properly delivered and received: (i) the same day when personally delivered; or (ii) one day after deposit
with a nationally recognized overnight courier; or (iii) the same day when sent by email. A party’s address may be changed
by written notice to the other party. Copies of notices are for informational purposes only, and a failure to give or receive
copies of any notice shall not be deemed a failure to give notice. Notices given by counsel to the Purchaser shall be deemed given
by Purchaser and notices given by counsel to the Seller shall be deemed given by Seller.

 

12.10       
Construction. The parties acknowledge that the parties and their counsel have reviewed
and revised this Agreement and agree that the normal rule of construction - to the effect that any ambiguities are to
be resolved against the drafting party - shall not be employed in the interpretation of this Agreement or any exhibits
or amendments hereto.

 

12.11       
Calculation of Time Periods; Business Day. Unless otherwise specified, in computing any
period of time described herein, the day of the act or event after which the designated period of time begins to run is not to
be included and the last day of the period so computed is to be included, unless such last day is not a Business Day, in which
event the period shall run until the end of the next day which is a Business Day. The last day of any period of time described
herein shall be deemed to end at 5:00 p.m. local time at the Real Property. As used herein, the term “Business Day“
means any day that is not a Saturday, Sunday or legal holiday for national banks in the city in which the Real Property is located.

 

12.12       
Execution in Counterparts. This Agreement may be executed in any number of counterparts,
each of which shall be deemed to be an original, and all of such counterparts shall constitute one Agreement. To facilitate execution
of this Agreement, the parties may execute and exchange by email electronic counterparts (i.e., PDF counterparts) of the signature
pages.

 

12.13       
No Recordation. Without the prior written consent of Seller, there shall be no recordation of either this Agreement
or any memorandum hereof, or any affidavit pertaining hereto, and any such recordation of this Agreement or memorandum or affidavit
by Purchaser without the prior written consent of Seller shall constitute a default hereunder by Purchaser, whereupon Seller shall
have the remedies set forth in Section 10.1 hereof.
In addition to any such remedies, Purchaser shall be obligated to execute an instrument in recordable form releasing this Agreement
or memorandum or affidavit, and Purchaser’s obligations pursuant to this Section 12.13 shall survive any termination
of this Agreement as a surviving obligation.

 

12.14       
Further Assurances. In addition to the acts and deeds recited herein and contemplated
to be performed, executed and/or delivered by either party at Closing, each party agrees to perform, execute and deliver, but
without any obligation to incur any additional liability or expense, on or after the Closing any further deliveries and assurances
as may be reasonably necessary to consummate the transactions contemplated hereby or to further perfect the conveyance, transfer
and assignment of the Property to Purchaser.

 

Purchase
and Sale Agreement 

6250 Lyndon B. Johnson Freeway, Dallas, Texas 

4404 South Beltwood Parkway, Farmers Branch, Texas 

14621, 14639 and 14601 Inwood Road, Addison, Texas

14303 Inwood Road, Farmers Branch, Texas

 

    26

     

    

 

12.15       
ERISA. Under no circumstances shall Purchaser have the right to assign this Agreement
to any person or entity owned or controlled by an employee benefit plan if Seller’s sale of the Property to such person
or entity would, in the reasonable opinion of Seller’s ERISA advisors or consultants, create or otherwise cause a “prohibited
transaction” under ERISA. In the event Purchaser assigns this Agreement or transfers any ownership interest in Purchaser,
and such assignment or transfer would make the consummation of the transaction hereunder a “prohibited transaction”
under ERISA and necessitate the termination of this Agreement then, notwithstanding any contrary provision which may be contained
herein, Seller shall have the right to terminate this Agreement.

 

12.16       
No Third Party Beneficiary. The provisions of this Agreement and of the documents to
be executed and delivered at Closing are and will be for the benefit of Seller and Purchaser only and are not for the benefit
of any third party, and accordingly, no third party shall have the right to enforce the provisions of this Agreement or of the
documents to be executed and delivered at Closing.

 

12.17       
Reporting Person. Purchaser and Seller hereby designate the Title Company as the “reporting
person” pursuant to the provisions of Section 6045(e) of the Internal Revenue Code of 1986, as amended.

 

12.18       
Texas Real Estate License Act. The Texas Real Estate License Act requires written notice
to Purchaser from any licensed real estate broker or salesman who is to receive a commission that Purchaser should have an attorney
of its own selection examine an abstract of title to the property being acquired or that Purchaser should be furnished with or
should obtain a title insurance policy. Notice to that effect is, therefore, hereby given to Purchaser on behalf of the broker(s)
identified in this Agreement, if any.

 

12.19       
DTPA Waiver. IT IS THE INTENT OF SELLER AND PURCHASER THAT THE RIGHTS AND REMEDIES WITH
RESPECT TO THE TRANSACTION CONTEMPLATED BY THIS AGREEMENT SHALL BE GOVERNED BY LEGAL PRINCIPLES OTHER THAN THE TEXAS DECEPTIVE
TRADE PRACTICES-CONSUMER PROTECTION ACT. ACCORDINGLY, TO THE MAXIMUM EXTENT APPLICABLE AND PERMITTED BY LAW (AND WITHOUT ADMITTING
SUCH APPLICABILITY), PURCHASER HEREBY WAIVES THE PROVISIONS OF THE TEXAS DECEPTIVE TRADE PRACTICES-CONSUMER PROTECTION ACT, CHAPTER
17, SUBCHAPTER 3 (OTHER THAN SECTION 17.555, WHICH IS NOT WAIVED), TEXAS BUSINESS AND COMMERCE CODE, A LAW THAT GIVES CONSUMERS
SPECIAL RIGHTS AND PROTECTIONS. FOR PURPOSES OF THE WAIVERS SET FORTH IN THIS AGREEMENT, PURCHASER HEREBY WARRANTS AND REPRESENTS
UNTO SELLER THAT (A) PURCHASER HAS KNOWLEDGE AND EXPERIENCE IN FINANCIAL AND BUSINESS MATTERS THAT ENABLE IT TO EVALUATE THE MERITS
AND RISKS OF THE TRANSACTION CONTEMPLATED UNDER THIS AGREEMENT, (B) PURCHASER IS NOT IN A SIGNIFICANTLY DISPARATE BARGAINING POSITION
WITH SELLER REGARDING THE TRANSACTIONS CONTEMPLATED UNDER THIS AGREEMENT, (C) PURCHASER IS REPRESENTED BY LEGAL COUNSEL THAT IS
SEPARATE AND INDEPENDENT OF SELLER AND SELLER’S LEGAL COUNSEL AND (D) PURCHASER HAS CONSULTED WITH PURCHASER’S LEGAL
COUNSEL REGARDING THIS AGREEMENT PRIOR TO PURCHASER’S EXECUTION OF THIS AGREEMENT AND VOLUNTARILY CONSENTS TO THIS WAIVER.

 

[SIGNATURE
PAGES AND EXHIBITS TO FOLLOW]

 

Purchase
and Sale Agreement 

6250 Lyndon B. Johnson Freeway, Dallas, Texas 

4404 South Beltwood Parkway, Farmers Branch, Texas 

14621, 14639 and 14601 Inwood Road, Addison, Texas

14303 Inwood Road, Farmers Branch, Texas

 

    27

     

    

 

SIGNATURE
PAGE TO PURCHASE AND SALE AGREEMENT

BY AND BETWEEN

Tuesday Morning Partners, Ltd., Tuesday Morning, Inc., and Friday Morning, LLC.

AND

Rialto Real Estate Fund IV – Property, LP

 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year written below.

 

	 	SELLER:
	 	 
	 	Tuesday
    morning partners, ltd.,
	 	a
    Texas limited partnership
	 	 
	 	By:	Days
    of the Week, Inc.,
	 	 	a
    Delaware corporation
	 	 	its
    General Partner

 

	Date
    executed by Seller	 	By:	/s/
    Steven R. Becker
	 	 	Name:	Steven
    R. Becker
	_____________,
    2020	 	Title:	Chief
    Executive Officer

 

	 	FRIDAY
    MORNING, LLC,
	 	a
    Texas limited liability company
	 	 
	 	By:
    Tuesday Morning, Inc.,
	 	 	its Member

 

 

	Date
    executed by Seller	 	By:	/s/
    Steven R. Becker
	 	 	Name:	Steven
    R. Becker
	_____________,
    2020	 	Title:	Chief
    Executive Officer

 

	 	TUESDAY
    MORNING, INC.,
	 	a
    Texas corporation

 

	Date
    executed by Seller	 	By:	/s/
    Steven R. Becker
	 	 	Name:	Steven
    R. Becker
	_____________,
    2020	 	Title:	Chief
    Executive Officer

  

[Signatures
Continue on Following Page]

 

Purchase
and Sale Agreement 

6250 Lyndon B. Johnson Freeway, Dallas, Texas 

4404 South Beltwood Parkway, Farmers Branch, Texas 

14621, 14639 and 14601 Inwood Road, Addison, Texas

14303 Inwood Road, Farmers Branch, Texas

 

    28

     

    

 

	 	PURCHASER:
	 	 
	 	RIALTO
    REAL ESTATE FUND IV – PROPERTY, LP,
	 	a Delaware limited
    partnership
	 	 
	 	By: Rialto Partners
    GP IV – Property, LLC, a Delaware limited liability company, its General Partner

 

	Date
    executed by Purchaser	By:	/s/
    Sorana Georgescu
	 	Name:	Sorana
    Georgescu
	_____________,
    2020	Title:	Secretary

  

Purchase
and Sale Agreement 

6250 Lyndon B. Johnson Freeway, Dallas, Texas 

4404 South Beltwood Parkway, Farmers Branch, Texas 

14621, 14639 and 14601 Inwood Road, Addison, Texas

14303 Inwood Road, Farmers Branch, Texas

 

    29

     

    

 

JOINDER
BY ESCROW AGENT

 

Escrow
Agent has executed this Agreement in order to confirm that Escrow Agent has received and shall hold the Earnest Money required
to be deposited under this Agreement and the interest earned thereto, in escrow, and shall disburse the Earnest Money, and the
interest earned thereon, pursuant to the provisions of this Agreement.

 

	 	CHICAGO
    TITLE INSURANCE COMPANY

 

	Date
    executed by Escrow Agent	By:	/s/ Pamela
    Medlin
	 	Name:	Pamela
    Medlin
	___________________	Title:	Escrow
    Officer

  

Purchase
and Sale Agreement 

6250 Lyndon B. Johnson Freeway, Dallas, Texas 

4404 South Beltwood Parkway, Farmers Branch, Texas 

14621, 14639 and 14601 Inwood Road, Addison, Texas

14303 Inwood Road, Farmers Branch, Texas

 

    1

     

    

 

LIST OF
EXHIBITS

 

	A	 	-	 	Legal Description
    of Land
	 	 	 	 	 
	B	 	-	 	Special Warranty Deed
	 	 	 	 	 
	C	 	-	 	Bill of Sale and Assignment
    Agreement
	 	 	 	 	 
	D	 	-	 	FIRPTA Certificate
	 	 	 	 	 
	E-1	 	-	 	Distribution Center Lease
	 	 	 	 	 
	E-2	 	-	 	Office Lease
	 	 	 	 	 
	F	 	-	 	Service Contracts

 

Purchase and Sale Agreement

6250 Lyndon B. Johnson Freeway, Dallas, Texas

4404 South Beltwood Parkway, Farmers Branch, Texas

14621, 14639
and 14601 Inwood Road, Addison, Texas

14303 Inwood Road, Farmers Branch, Texas

 

    2

     

    

 

Exhibit A

 

LEGAL
DESCRIPTION OF LAND

 

4400-4404
South Beltwood Parkway, Farmers Branch, Texas; 14621 Inwood Road, Addison, Texas; 14639-14645 Inwood Road, Addison, TEXAS; AND
14601-14603 Inwood Road, Addison, Texas:

 

TRACT I: FEE SIMPLE

 

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.

 

TRACT II: FEE SIMPLE

 

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;

 

Purchase and Sale Agreement

6250 Lyndon B. Johnson Freeway, Dallas, Texas

4404 South Beltwood Parkway, Farmers Branch, Texas

14621, 14639
and 14601 Inwood Road, Addison, Texas

14303 Inwood Road, Farmers Branch, Texas

 

    A-1

     

    

 

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 ParkNorth 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.

 

NOTE: COMPANY DOES NOT REPRESENT THAT THE
ABOVE ACREAGE AND/OR SQUARE FOOTAGE CALCULATIONS ARE CORRECT.

 

TRACT III: FEE SIMPLE

 

BEING all of Lot 1, Block A of Tuesday
Morning Beltwood Addition, 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" set 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 set for corner in the West line of Inwood
Road (a 60-foot public right-of-way);

 

Purchase and Sale Agreement

6250 Lyndon B. Johnson Freeway, Dallas, Texas

4404 South Beltwood Parkway, Farmers Branch, Texas

14621, 14639
and 14601 Inwood Road, Addison, Texas

14303 Inwood Road, Farmers Branch, Texas

 

    A-2

     

    

 

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" set
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:

 

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 set for corner;

 

North 89°49'46" East, a distance
of 10.00 feet to an "x" cut in concrete set for corner;

 

South 16°49'00" East, a distance
of 216.00 feet to a 1/2 iron rod with orange cap stamped "P&C 100871" set 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" set 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" set 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" set 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" set 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"
set 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" set 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" set for corner, said rod being the Southeast
corner of said Semiconductor Addition;

 

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.

 

Purchase and Sale Agreement

6250 Lyndon B. Johnson Freeway, Dallas, Texas

4404 South Beltwood Parkway, Farmers Branch, Texas

14621, 14639
and 14601 Inwood Road, Addison, Texas

14303 Inwood Road, Farmers Branch, Texas

 

    A-3

     

    

 

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 thereof recorded under Clerk's File No. 2006-276647, Plat Records, Dallas County, Texas.

 

TRACT IV: EASEMENT ESTATE

 

EASEMENT ESTATE created in Easement and
Right of Way filed April 1, 1983, recorded in Volume 83066, Page 3869, Real Property Records, Dallas County, Texas.

 

BEING a tract of land situated in the Josiah
Pancoast Survey, Abstract No. 1146 and said tract also being part of Lots 1 and 2 of Inwood Park North, an addition to the City
of Addison, according to the plat thereof filed in Volume 79234 at Page 1, Deed Records, Dallas County, Texas and being more particularly
described as follows:

 

BEGINNING at the Southeast corner of Inwood
Park North Addition, said corner also being in the West line of Inwood Road;

 

THENCE South 89°49'46" West, along
the South line of said addition, a distance of 223.15 feet to a point for corner;

 

THENCE North 16°49'00" West, a
distance of 20.87 feet to a point for corner;

 

THENCE North 89°49'46" East, a
distance of 223.15 feet to a point for corner in the West line of Inwood Road;

 

THENCE South 16°49'00" East, along
the West line of Inwood Road, a distance of 20.87 feet to the POINT OF BEGINNING.

 

TRACT V: EASEMENT ESTATE

 

EASEMENT ESTATE created in Maintenance
Easement filed April 1, 1983, recorded in Volume 83066, Page 3875, Real Property Records, Dallas County, Texas.

 

BEING a tract of land situated in the Josiah
Pancoast Survey, Abstract No. 1146, said tract also being part of Lot 3 of Inwood Park North, an addition to the City of Addison,
according to the plat thereof filed in Volume 79234 at Page 1, Deed Records, Dallas County, Texas and being more particularly described
as follows:

 

BEGINNING at a point in the North line
of Lot 3, said point being South 80°45'00" West, a distance of 193.96 feet from the Northeast corner of Inwood Park North
Addition;

 

THENCE South 09°15'00" East, a
distance of 173.16 feet to a point for corner;

 

THENCE North 16°49'00" West, a
distance of 75.94 feet to a point for corner;

 

THENCE North 09°15'00" West, a
distance of 97.88 feet to a point for corner in the North line of Lot 3;

 

THENCE North 80°45'00" East, with
said North line a distance of 10.00 feet to the POINT OF BEGINNING.

 

TRACT VI: EASEMENT ESTATE

 

EASEMENT ESTATE created in Maintenance
Easement filed April 1, 1983, recorded in Volume 83066, Page 3881, Real Property Records, Dallas County, Texas.

 

Purchase and Sale Agreement

6250 Lyndon B. Johnson Freeway, Dallas, Texas

4404 South Beltwood Parkway, Farmers Branch, Texas

14621, 14639
and 14601 Inwood Road, Addison, Texas

14303 Inwood Road, Farmers Branch, Texas

 

    A-4

     

    

 

BEING a tract of land situated in the Josiah
Pancoast Survey, Abstract No. 1146, said tract also being part of Lot 2 of Inwood Park North, an addition to the City of Addison,
according to the plat thereof filed in Volume 79234, Page 1, Deed Records, Dallas County, Texas and being more particularly described
as follows:

 

BEGINNING at a point in the South line
of said Lot 2 said point being South 89°49'46" West, a distance of 212.71 feet from the Southeast corner of Inwood Park
North Addition;

 

THENCE South 89°49'46" West, with
the South line of Lot 3, a distance of 10.44 feet to a point for corner;

 

THENCE North 16°49'00" West, a
distance of 216.00 feet to a point for corner;

 

THENCE North 89°49'46" East, a
distance of 10.44 feet to a point for corner;

 

THENCE South 16°49'00" East, a
distance of 216.00 to the POINT OF BEGINNING.

 

TRACT VII: EASEMENT ESTATE

 

EASEMENT ESTATE created in Underground
Gas Easement filed April 1, 1983, recorded in Volume 83066, Page 3887, Real Property Records, Dallas County, Texas.

 

BEING a tract of land situated in the Josiah
Pancoast Survey, Abstract No. 1146 and being part of Lot 2 of Inwood Park North, an addition to the City of Addison, according
to the plat thereof recorded in Volume 79234, Page 1, Deed Records, Dallas County, Texas and being 5 feet right and 5 feet left
of the following described centerline:

 

COMMENCING at the Southeast corner of said
Inwood Park North, thence South 89°49'46" West, a distance of 223.15 feet to a point;

 

THENCE North 16°49'00" West, a
distance of 208.00 feet to the POINT OF BEGINNING of the herein described center;

 

THENCE North 73°11'00" East, a
distance of 21.80 feet to a point on the East line of said Lot 2 and the terminus of said centerline.

 

TRACT VIII: EASEMENT ESTATE

 

EASEMENT ESTATE created in Sign Easement
filed April 1, 1983, recorded in Volume 83066, Page 3893, Real Property Records, Dallas County, Texas.

 

BEING a tract of land situated in the Josiah
Pancoast Survey, Abstract No. 1146, said tract also being part of Lot 1 Inwood Park North, an addition to the City of Addison,
according to the plat thereof filed in Volume 79234, Page 1, Deed Records, Dallas County, Texas and being more particularly described
as follows:

 

BEGINNING at a point in the South line
of a 50 foot Access, Utility and Drainage Easement said point being South 89°49'46" W, a distance of 17.00 feet from the
West line of Inwood Road;

 

THENCE South 00°10'14" East, a
distance of 4.00 feet to a point for corner;

 

THENCE South 81°05'00" West, a
distance of 13.15 feet to a point for corner;

 

THENCE North 00°10'14" West, a
distance of 6.00 feet to a point for corner in the South line of the aforementioned 50 foot easement;

 

Purchase and Sale Agreement

6250 Lyndon B. Johnson Freeway, Dallas, Texas

4404 South Beltwood Parkway, Farmers Branch, Texas

14621, 14639
and 14601 Inwood Road, Addison, Texas

14303 Inwood Road, Farmers Branch, Texas

 

    A-5

     

    

 

THENCE North 89°49'46" East, along
said South line, a distance of 13.00 feet to the POINT OF BEGINNING.

 

TRACT VIIII: EASEMENT ESTATE

 

EASEMENT ESTATE created in Sign Easement
filed April 1, 1983, recorded in Volume 83066, Page 3900, Real Property Records, Dallas County, Texas.

 

BEING a tract of land situated in the Josiah
Pancoast Survey, Abstract No. 1146, said tract also being part of Lot 1 Inwood Park North, an addition to the City of Addison,
according to the plat thereof filed in Volume 79234, Page 1, Deed Records, Dallas County, Texas and being more particularly described
as follows:

 

BEGINNING at a point in the North line
of a 50 foot Access, Utility and Drainage Easement said point being S 89°49'46" W, a distance of 13.00 feet from the West
line of Inwood Road;

 

THENCE South 89°49'46" West, along
the North line of said easement, a distance of 13.00 feet to a point for corner;

 

THENCE North 00°10'14" West, a
distance of 4.00 feet to a point for corner;

 

THENCE North 81°05'00" East, a
distance of 13.15 feet to a point for corner;

 

THENCE South 00°10'14" East, a
distance of 6.00 feet to the POINT OF BEGINNING.

 

14303
Inwood Road, Farmers Branch, Texas:

 

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

 

6250
Lyndon B. Johnson Freeway, Dallas, Texas:

 

BEING 4.895 acres of land, located in BLOCK
7443 in the City of Dallas, and being a portion of the McKinney & Williams Survey, Abstract No. 1032, and the Thomas Dykes
Survey, Abstract No. 405, Dallas County, Texas, and being a portion of the tract of land conveyed to E-Systems, Inc., by the deed
recorded in Volume 76062, Page 1507, Deed Records, Dallas County, Texas, said 4.895 acres being more particularly described as
follows:

 

BEGINNING at a cross cut in a Texas Highway
Department concrete right-of-way monument, at the intersection of the South right-of-way line of Lyndon B. Johnson Freeway, Interstate
Highway No. 635 (a variable width right-of-way) with the West right-of-way line of Hughes Lane (a 60 foot right-of-way);

 

THENCE along the East boundary line of
said E-Systems tract and the West right-of-way line of said Hughes Lane as follows:

 

South 308.77 feet, to an "X"
cut in concrete found;

 

S 00° 23' 32" W, 174.17 feet to
a 1" iron pipe found at the Southeast corner of said E-Systems tract, being the intersection of the North boundary line of
a 15 foot wide alley, as dedicated by the plat of Huffines Hill Addition to the City of Dallas, Dallas County, Texas, according
to the plat recorded in Volume 20, Page 213, Map Records, Dallas County, Texas;

 

THENCE S 89° 46' 20"W, 578.75
feet along the South boundary of said E-Systems tract and the North boundary line of said 15 foot wide alley to a 1/2" iron
rod found at the most Southerly Southeast corner of Lot 1, Block A/7443, 6200 L. B. J. Office Park, an addition to the City of
Dallas, Dallas County, Texas according to the plat recorded in Volume 84234, Page 1926, Plat Records, Dallas County, Texas;

 

Purchase and Sale Agreement

6250 Lyndon B. Johnson Freeway, Dallas, Texas

4404 South Beltwood Parkway, Farmers Branch, Texas

14621, 14639
and 14601 Inwood Road, Addison, Texas

14303 Inwood Road, Farmers Branch, Texas

 

    A-6

     

    

 

THENCE severing the original said E-Systems
tract and running along the East boundary line of said Lot 1, Block A/7443, 6200 L. B. J. Office Park Addition, as follows:

 

N 00° 19' 49" E, 136.96 feet to
a 1/2" iron rod found;

 

S 89° 53' 46" E, 172.29 feet to
a 1 1/2" iron pipe found at the most Easterly Southeast corner of said Lot 1, Block A/7443;

 

N 00° 02' 11" W, 314.84 feet to
a 1/2" iron rod found at the Northeast corner of said Lot 1, Block A/7443, lying in the South right-of-way line of aforesaid
Lyndon B. Johnson Freeway;

 

THENCE along the original North boundary
line of said E-Systems tract, being the South right-of-way line of said Lyndon B. Johnson Freeway as follows:

 

N 88° 06' 13" E, 23.21 feet to
a Texas Highway Department concrete right-of-way monument found;

 

N 85° 05' 23" E, 385.28 feet to
the Place of Beginning, containing 4.895 acres (213,210 square feet) of land, more or less.

 

SAVE AND EXCEPT all that certain land conveyed
to the State of Texas by Deed recorded May 2, 2006 as Clerk's File No. 200600159784, Real Property Records, Dallas County, Texas.

 

Purchase and Sale Agreement

6250 Lyndon B. Johnson Freeway, Dallas, Texas

4404 South Beltwood Parkway, Farmers Branch, Texas

14621, 14639
and 14601 Inwood Road, Addison, Texas

14303 Inwood Road, Farmers Branch, Texas

 

    A-7

     

    

 

Exhibit B

 

SPECIAL WARRANTY DEED

 

[exhibit
follows on next page]

 

Purchase and Sale Agreement

6250 Lyndon B. Johnson Freeway, Dallas, Texas

4404 South Beltwood Parkway, Farmers Branch, Texas

14621, 14639
and 14601 Inwood Road, Addison, Texas

14303 Inwood Road, Farmers Branch, Texas

 

    B-1

     

    

 

SPECIAL
WARRANTY DEED

 

	
        Prepared by:

        Haynes and Boone LLP

        2323 Victory Avenue, Ste. 700

        Dallas, Texas 75219

        Attn: Brack Bryant

         

        After Recording Return to:

        [____________________]

        [____________________]

        [____________________]

        
	 	NOTICE OF CONFIDENTIALITY RIGHTS: If you are a natural person, you may remove or strike any or all of the following information from any instrument that transfers an interest in real property before it is filed for record in the public records: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER’S LICENSE NUMBER.

 

SPECIAL WARRANTY DEED

 

	THE STATE
    OF TEXAS	 	§	 
	 	 	§	KNOW ALL MEN BY THESE PRESENTS:
	COUNTY OF DALLAS	 	§	 

 

                                                  , a                                
(“Grantor”), whose address is _____________________, for good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, has GRANTED, BARGAINED, SOLD, and CONVEYED and by these presents does GRANT, BARGAIN,
SELL, and CONVEY unto RIALTO REAL ESTATE FUND IV – PROPERTY, LP, a Delaware limited partnership (“Grantee”)
whose address is c/o Rialto Capital Management, LLC, 501 Santa Monica Blvd., Suite 501, Santa Monica, California 90401, the tract
or parcel of land in Tarrant County, Texas, described in Exhibit A,
together with all improvements thereon and all rights, titles, and interests appurtenant thereto including, without limitation,
Grantor’s interest, if any, in any and all adjacent streets, alleys, rights of way and any adjacent strips and gores, together
with all of Grantor’s right, title and interest, if any, in and to any and all minerals and mineral rights, oil, gas, and
oil and gas rights, other hydrocarbon substances and rights, development rights, air rights, water and water rights, wells, well
rights and well permits, water and sewer taps (or their equivalents), and sanitary or storm sewer capacity appertaining to or otherwise
benefiting or used in connection with said real property (such land and interests are hereinafter collectively referred to as the
“Property”).

 

This Special Warranty
Deed and the conveyance hereinabove set forth is executed by Grantor and accepted by Grantee subject to the Permitted Exceptions
listed on Exhibit B attached hereto (collectively, the “Permitted Exceptions”).

 

TO HAVE AND TO HOLD
the Property, together with all and singular the rights and appurtenances thereunto in anywise belonging, unto Grantee, its successors
and assigns forever, and Grantor does hereby bind itself, its successors and assigns, to WARRANT AND FOREVER DEFEND all and singular
the title to the Property unto the said Grantee, its successors and assigns against every person whomsoever lawfully claiming or
to claim the same or any part thereof by, through, or under Grantor but not otherwise, subject to the Permitted Exceptions.

 

Purchase and Sale Agreement

6250 Lyndon B. Johnson Freeway, Dallas, Texas

4404 South Beltwood Parkway, Farmers Branch, Texas

14621, 14639
and 14601 Inwood Road, Addison, Texas

14303 Inwood Road, Farmers Branch, Texas

 

    B-2

     

    

 

[SIGNATURE PAGE FOLLOWS]

 

Purchase and Sale Agreement

6250 Lyndon B. Johnson Freeway, Dallas, Texas

4404 South Beltwood Parkway, Farmers Branch, Texas

14621, 14639
and 14601 Inwood Road, Addison, Texas

14303 Inwood Road, Farmers Branch, Texas

 

    B-3

     

    

 

EXECUTED as of _____________________,
2020, to be effective as of ________________.

 

	 	,
	 	a      
	 	 
	 	By:	      
	 	Name:	 
	 	Title:	 

 

	THE STATE OF __________	§
	 	§
	COUNTY OF ____________	§

 

This instrument was
acknowledged before me on ____________, 2020, by ________________, ______________ of                                      , a                                 , on behalf of said
corporation .

 

	 	 
	 	Notary Public, State of ___________

 

Purchase and Sale Agreement

6250 Lyndon B. Johnson Freeway, Dallas, Texas

4404 South Beltwood Parkway, Farmers Branch, Texas

14621, 14639
and 14601 Inwood Road, Addison, Texas

14303 Inwood Road, Farmers Branch, Texas

 

    B-4

     

    

 

EXHIBIT
A

 

[Description of the Property]

 

Purchase and Sale Agreement

6250 Lyndon B. Johnson Freeway, Dallas, Texas

4404 South Beltwood Parkway, Farmers Branch, Texas

14621, 14639
and 14601 Inwood Road, Addison, Texas

14303 Inwood Road, Farmers Branch, Texas

 

    B-5

     

    

 

EXHIBIT
B

 

[Permitted Exceptions]

 

Purchase and Sale Agreement

6250 Lyndon B. Johnson Freeway, Dallas, Texas

4404 South Beltwood Parkway, Farmers Branch, Texas

14621, 14639
and 14601 Inwood Road, Addison, Texas

14303 Inwood Road, Farmers Branch, Texas

 

    B-6

     

    

 

Exhibit C

 

 BILL
OF SALE AND ASSIGNMENT

 

[EXHIBIT
FOLLOWS ON NEXT PAGE]

 

Purchase and Sale Agreement

6250 Lyndon B. Johnson Freeway, Dallas, Texas

4404 South Beltwood Parkway, Farmers Branch, Texas

14621, 14639
and 14601 Inwood Road, Addison, Texas

14303 Inwood Road, Farmers Branch, Texas

 

    C-1

     

    

 

 

BILL OF
SALE AND ASSIGNMENT

 

THIS BILL OF SALE AND
ASSIGNMENT (this “Bill of Sale”) is made as of the _____ day of __________________, 2020, by and between
, a  (“Assignor”),
and RIALTO REAL ESTATE FUND IV – PROPERTY, LP, a Delaware limited partnership (“Assignee”).

 

W I T N
E S S E T H:

 

For good and valuable
consideration, receipt and sufficiency of which are hereby acknowledged, Assignor and Assignee hereby agree as follows:

 

1.                  
Assignor hereby sells, transfers and conveys to Assignee all of Assignor’s right, title and interest, if any, in and
to the following, in each case to the extent located on that certain land and improvements commonly known as (i) 4400-4404
South Beltwood Parkway, Farmers Branch, Texas, (ii) 14621 Inwood Road, Addison, Texas, (iii) 14639 Inwood Road, Addison,
Texas, (iv) 14601 Inwood Road, Addison, Texas, (v) 14303 Inwood Road, Farmers Branch, Texas, and (vi) 6250
Lyndon B. Johnson Freeway, Dallas, Texas (collectively, “Real Property”), as more particularly described
in the Purchase Agreement (as hereinafter defined):

 

(a)   
all tangible personal property furniture, fixtures and equipment attached to or used in connection with the ownership, maintenance,
or operation of the Real Property (the “Personalty”); provided however, that the Personalty does not
include the Excluded Tangible Personal Property (as defined in the Purchase Agreement);

 

(b)   
the plans and specifications and other architectural and engineering drawings for the improvements located on the Real Property,
if any (to the extent in Assignor’s possession and assignable without any cost to Assignor); warranties (to the extent in
Assignor’s possession and assignable without any cost to Assignor); governmental permits, approvals and licenses, if any
(to the extent in Assignor’s possession and assignable without any cost to Assignor); and

 

(c)   
notwithstanding anything contained herein to the contrary, in no event shall any of Assignor’s trade names, marks,
signage, branding, and other identifying marks related to “Tuesday Morning” or its subsidiaries or affiliates, be included
within the Personalty or otherwise be deemed or construed to have been transferred by this Bill of Sale, all of which are expressly
reserved to, and retained by, Assignor.

 

2.                  
This Bill of Sale is given pursuant to that certain Purchase and Sale Agreement (as amended, the “Purchase Agreement”)
dated as of ____________________, between Assignor and Assignee, providing for, among other things, the conveyance of the Personalty.

 

3.                  
As set forth in Article 11 of the Purchase Agreement, which is hereby incorporated by reference as if herein set
out in full and except as set forth herein, except as expressly set forth in the Purchase Agreement, the property conveyed hereunder
is conveyed by Assignor and accepted by Assignee AS IS, WHERE IS, AND WITHOUT ANY WARRANTIES OF WHATSOEVER NATURE, EXPRESS OR
IMPLIED, IT BEING THE INTENTION OF ASSIGNOR AND ASSIGNEE EXPRESSLY TO NEGATE AND EXCLUDE ALL WARRANTIES, INCLUDING, WITHOUT LIMITATION,
THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR ANY PARTICULAR PURPOSE, WARRANTIES CREATED BY ANY AFFIRMATION OF FACT
OR PROMISE OR BY ANY DESCRIPTION OF THE PROPERTY CONVEYED HEREUNDER,

 

Purchase and Sale Agreement 

6250 Lyndon B. Johnson Freeway, Dallas, Texas 

4404 South Beltwood Parkway, Farmers Branch, Texas 

14621, 14639
and 14601 Inwood Road, Addison, Texas 

14303 Inwood Road, Farmers Branch, Texas

 

    C-2

     

    

 

OR BY ANY SAMPLE OR MODEL THEREOF, AND
ALL OTHER WARRANTIES WHATSOEVER CONTAINED IN OR CREATED BY THE TEXAS UNIFORM COMMERCIAL CODE.

 

4.                  
This Bill of Sale may be executed in any number of counterparts, each of which shall be deemed an original, but all of which
shall constitute one and the same instrument.

 

[THE REMAINDER OF THIS
PAGE IS INTENTIONALLY LEFT BLANK.]

 

Purchase and Sale Agreement

 6250 Lyndon B. Johnson Freeway, Dallas, Texas

 4404 South Beltwood Parkway, Farmers Branch, Texas

 14621, 14639
and 14601 Inwood Road, Addison, Texas

 14303 Inwood Road, Farmers Branch, Texas

 

    C-3

     

    

 

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

 

		 	ASSIGNOR:
	 	 	 
	 	 		      	,
	 	 	a  	         
	 	 	 	 

 

	 	 	By:	 
	 	 	Name:
                                         	 
	 	 	Title:	 

 

	 	 	ASSIGNEE:
	 	 	 
	 	 	RIALTO REAL ESTATE FUND IV – PROPERTY,
                                         LP, 

                                         a Delaware limited partnership
	 	 	 
	 	 	By: Rialto Partners GP IV –
Property, LLC, a Delaware limited liability company, its General Partner

 

	 	 	By:	 
	 	 	Name:
                                         	 
	 	 	Title:	 

 

Purchase and Sale Agreement

 6250 Lyndon B. Johnson Freeway, Dallas, 

Texas 4404 South Beltwood Parkway, Farmers Branch, Texas 

14621, 14639
and 14601 Inwood Road, Addison, Texas

 14303 Inwood Road, Farmers Branch, Texas

 

    C-4

     

    

 

Exhibit D

 

FIRPTA CERTIFICATE

 

Section 1445 of the
Internal Revenue Code provides that a transferee of a U.S. real property interest must withhold tax if the transferor is a foreign
person. For U.S. tax purposes (including Section 1445), the owner of a disregarded entity (which has legal title to a U.S.
real property interest under local law) will be the transferor of the property and not the disregarded entity. To inform _____________
(“Transferee”) that withholding of tax is not required upon the disposition of a U.S. real property interest
by , a  (“Transferor”), the
undersigned, in his capacity as _____________ of _____________, but not individually, hereby certifies to Transferee the following
on behalf of Transferor:

 

1.       Transferor
is not a foreign corporation, foreign partnership, foreign trust, or foreign estate (as those terms are defined in the Internal
Revenue Code and Income Tax Regulations);

 

2.       Transferor
is not a disregarded entity as defined in Section 1.1445-2(b)(2)(iii);

 

3.       Transferor’s
U.S. employer identification number is ___________; and

 

4.       Transferor’s
office address is ___________________________.

 

Transferor understands
that this certification may be disclosed to the Internal Revenue Service by Transferee and that any false statement contained herein
could be punished by fine, imprisonment, or both.

 

Under penalties of
perjury I declare that I have examined this certification and to the best of my knowledge and belief it is true, correct and complete,
and I further declare that I have authority to sign this document on behalf of Transferor.

 

Dated as of __________,
2020.

 

	 	 	 
	 	 	a  	       
	 	 	 	 

 

	 	 	By:	 
	 	 	Name:
                                         	 
	 	 	Title:	 

 

 

Purchase and Sale Agreement

 6250 Lyndon B. Johnson Freeway, Dallas, 

Texas 4404 South Beltwood Parkway, Farmers Branch, Texas

 14621, 14639
and 14601 Inwood Road, Addison, Texas

 14303 Inwood Road, Farmers Branch, Texas

 

    D-1

     

    

 

EXHIBIT E-1

 

DISTRIBUTION CENTER LEASE

 

[EXHIBIT FOLLOWS ON NEXT PAGE]

 

Purchase and Sale Agreement

 6250 Lyndon B. Johnson Freeway, Dallas, 

Texas 4404 South Beltwood Parkway, Farmers Branch, Texas

 14621, 14639
and 14601 Inwood Road, Addison, Texas

 14303 Inwood Road, Farmers Branch, Texas

 

    E-1

     

    

 

LEASE AGREEMENT

 

This SHORT TERM
LEASE (this “Lease”) is entered into as of the ___ day of ______________________, 2020, by and between
RIALTO REAL ESTATE FUND IV – PROPERTY, LP, a Delaware 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 c/o Rialto Capital Management, LLC, 501 Santa Monica Blvd., Suite 501, Santa Monica, California 90401,
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.

 

    2

     

    

 

		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; Surrender. 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 operating 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.

 

    3

     

    

 

 

		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.

 

		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.

 

    4

     

    

 

		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.

 

    5

     

    

 

		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.

 

		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.

 

    6

     

    

 

 

 

		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.

 

    8

     

    

 

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.

 

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		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.

 

		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.

 

    10

     

    

 

		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.

 

    11

     

    

 

		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]

 

    12

     

    

 

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:	 
	 	 	Name:	 
	 	 	Title:	                         
	 	 	Date signed:

 

Address:

 

Tuesday Morning Corporation 

6250 Lyndon B. Johnson Freeway

Dallas, Texas 75240

Attn.: General Counsel

Email: bzeterberg@tuesdaymorning.com and legal@tuesdaymorning.com

 

With a copy to:

 

	Haynes and Boone, LLP	Haynes and Boone, LLP
	2323 Victory Avenue	1050 17th Street
	Suite 700	Suite 1800
	Dallas, TX 75219	Denver, CO 80265
	Attn: Tom D. Harris and Ian T. Peck	Attn:     Daniel P. Malone, Jr.
	Email: Tom.Harris@haynesboone.com	Email:    Dan.Malone@haynesboone.com
	Ian.Peck@haynesboone.com	 

 

Signature Page
to

Lease

 

     

     

    

 

	 	LANDLORD:
	 	 
	 	RIALTO REAL ESTATE FUND IV – PROPERTY, LP,
    a Delaware limited partnership
	 	 
	 	By:	Rialto Partners GP IV – Property, LLC, a Delaware
    limited liability company
	 	 
	 	 	By:                                                                                                                         
	 	 	Name:
	 	 	Title:
	 	 	Date signed:
	 	 
	 	Address:
	 	 
	 	Rialto Real Estate Fund IV-Property, LP
	 	c/o Rialto Capital Management, LLC
	 	501 Santa Monica Blvd., Suite 501,
	 	Santa Monica, California 90401
	 	Attn: 	Mike Parker
	 	 	Aaron Davis
	 	 	Brady Scott
	 	Email: 	mike.parker@rialtocapital.com
	 	 	aaron.davis@rialtocapital.com
	 	 	brady.scott@rialtocapital.com
	 	 
	 	With a copy to:
	 	 
	 	Bilzin Sumberg Baena Price & Axelrod LLP
	 	1450 Brickell Avenue, Suite 2300
	 	Miami, FL 33131
	 	Attn:	Jay M. Sakalo
	 	Email:	 jsakalo@bilzin.com

 

Signature Page
to

Lease

 

     

     

    

 

EXHIBIT A

 

LEGAL DESCRIPTION

 

Attached.

 

    Ex. A-1

     

    

 

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.

 

    

     

    

 

EXHIBIT E-2

 

OFFICE LEASE

 

[EXHIBIT FOLLOWS ON NEXT PAGE]

 

Purchase and Sale Agreement

 6250 Lyndon B. Johnson Freeway, Dallas, Texas 

4404 South Beltwood Parkway, Farmers Branch, Texas 

14621, 14639
and 14601 Inwood Road, Addison, Texas 

14303 Inwood Road, Farmers Branch, Texas

 

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LEASE
AGREEMENT

 

This
SHORT TERM LEASE (this “Lease”) is entered into as of the ___ day of __________, 2020, by and
between RIALTO REAL ESTATE FUND IV – PROPERTY, LP, a Delaware limited partnership (“Landlord”)
and TUESDAY MORNING, INC., a Texas corporation (“Tenant”).

 

		28.	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 6250 LBJ Freeway,
                                         Dallas, Texas (the “Premises” or the “Property”).
                                         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 one hundred twenty
                                         (120) months following the Commencement Date (“Termination Date”).

 

		29.	Permitted Use; Operation.
                                         Tenant shall use the Premises for general office use, 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.

 

	 	30.	Rent Payments. During
                                         the Term, Tenant agrees to pay to Landlord a monthly sum equal to $67,761.67 (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: c/o Rialto Capital Management, LLC, 501 Santa Monica Blvd., Suite 501,
                                         Santa Monica, California 90401, 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, the Fixed Rental amount
                                         shall be increased by two percent (2.0%) over the prior year’s Fixed Rental amount.
                                         Notwithstanding anything to the contrary contained herein, 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.

 

		31.	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).

 

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		32.	Intentionally Deleted.

 

		33.	Maintenance, Repair,
                                         and Replacement; Surrender. 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 operating 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. 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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		34.	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 the Premises
                                         (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 the Premises, provided that the total cost to acquire and install
                                         the proposed Alterations is no more than (i) $100,000 in any one instance and (ii) $250,000
                                         in the aggregate during any calendar year.

 

		35.	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.

 

		36.	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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		37.	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.

  

		38.	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.

 

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		39.	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 THE 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.

 

		40.	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.

 

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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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		41.	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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		42.	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

 

		43.	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.

 

		44.	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.

 

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		45.	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.

 

		46.	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.

 

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.

 

    9 

     

    

 

		47.	Casualty and Condemnation.
                                         If (a) (i) more than fifty percent (50%) of the square footage of the Premises
                                         cannot be used for the purposes contemplated by this Lease because of casualty, or (ii) more
                                         than fifty percent (50%) of the square footage of the building located on the Premises
                                         cannot be used for the purposes contemplated by this Lease because of condemnation or
                                         purchase in lieu of condemnation, and (b) Landlord reasonably estimates (“Landlord’s
                                         Rebuild Estimate”) that such damage cannot be restored within two hundred
                                         seventy (270) days from the occurrence of such event, then Landlord or Tenant may elect
                                         to terminate this Lease by providing written notification to the other on or before sixty
                                         (60) days after delivery of Landlord’s Rebuild Estimate. Landlord shall deliver
                                         Landlord’s Rebuild Estimate no later than thirty (30) days following the date of
                                         such casualty. Notwithstanding the foregoing, either party may terminate this Lease (effective
                                         as of the date of the applicable event) if the Premises are damaged by casualty during
                                         the last twelve (12) months of the Term and Landlord’s Rebuild Estimate indicates
                                         that it will require more than one hundred fifty (150) days from the occurrence of such
                                         event to restore the Premises. 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. Notwithstanding anything to the contrary contained herein, 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. If a casualty renders all or part of the Premises untenantable,
                                         Rent shall proportionately abate commencing on the date of the casualty and ending when
                                         the Premises are delivered to Tenant with Landlord’s Repair Obligation substantially
                                         complete. The extent of the abatement shall be based upon the portion of the Premises
                                         rendered untenantable, inaccessible or unfit for use in a reasonable business manner
                                         for the purposes stated in this Lease. Tenant shall not be entitled to such abatement
                                         if the fire or other casualty was caused by the intentional wrongful action of Tenant,
                                         its employees, agents, or contractors. 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. Tenant may separately pursue a claim (to the extent it will not reduce Landlord’s
                                         award or prohibit Landlord from claiming any award otherwise available to Landlord, including
                                         loss of lease value) against the condemnor for the value of Tenant’s personal property
                                         taken, loss of leasehold interest, moving costs and loss of business.

 

    10 

     

    

 

		48.	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.

 

		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.

 

    11 

     

    

 

		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.

 

		49.	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.

 

		50.	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.

 

		51.	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.

 

		52.	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.

 

		53.	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]

 

    12 

     

    

 

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

 

	 	TENANT:
	 	 
	  	TUESDAY MORNING, INC., a
    Texas corporation
	 	 
	 	By:	                                                       
	 	Name:	 
	 	Title: 	 
	 	Date signed:
	 	 
	 	Address:
	 	 
	 	Tuesday Morning Corporation 
	 	6250 Lyndon B. Johnson Freeway
	 	Dallas, Texas 75240
 Attn.:
    General Counsel
 Email: bzeterberg@tuesdaymorning.com and legal@tuesdaymorning.com
	 	 
	 	With a copy to:
	 	 
	 	Haynes and Boone, LLP
 2323
    Victory Avenue
 Suite 700
 Dallas, TX 75219
 Attn: Tom D. Harris and Ian T. Peck 
	 	Email: Tom.Harris@haynesboone.com 
	 	Ian.Peck@haynesboone.com
	 	 
	 	Haynes and Boone, LLP
 1050
    17th Street
 Suite 1800
 Denver, CO 80265
 Attn:       Daniel P. Malone, Jr.
	 	Email:     Dan.Malone@haynesboone.com

 

Signature Page
to

 Lease

 

     

     

    

 

LANDLORD:

 

	 	RIALTO REAL ESTATE FUND IV – PROPERTY, LP, a Delaware limited partnership

 

		By:	Rialto Partners GP IV – Property, LLC, 

a Delaware limited liability company

 

	 	 	By: 	         
	 	 	Name: 
	 	 	Title: 
	 	 	Date signed:

 

	 	Address:
	 	 
	 	Rialto Real Estate Fund IV-Property,
    LP 
	 	c/o Rialto Capital Management,
    LLC 
	 	501 Santa Monica Blvd., Suite 501, 
	 	Santa Monica, California 90401
	 	Attn:	Mike Parker 
	 	 	Aaron Davis 
	 	 	Brady Scott 
	 	Email:	mike.parker@rialtocapital.com 
	 	 	aaron.davis@rialtocapital.com 
	 	 	brady.scott@rialtocapital.com

 

	 	With a copy to:
	 	 
	 	Bilzin Sumberg Baena Price &
    Axelrod LLP 
	 	1450 Brickell Avenue, Suite 2300 
	 	Miami, FL 33131 
	 	Attn:	Jay M. Sakalo 
	 	Email:	jsakalo@bilzin.com

 

Signature Page
to 

Lease

 

     

     

    

  

EXHIBIT A

 

LEGAL DESCRIPTION

 

Attached.

 

    Ex. A-1

     

    

 

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):

 

(i)            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 or subrogation in favor of Landlord; and

 

(j)            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 of subrogation in favor of the Landlord; and

 

(k)            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

 

(l)            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;

 

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

 

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

 

(o)          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

 

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

 

    Ex. B-1

     

    

 

Exhibit F

 

SERVICE CONTRACTS

 

[To be attached.]

 

Purchase
and Sale Agreement 

6250
Lyndon B. Johnson Freeway, Dallas, Texas

4404
South Beltwood Parkway, Farmers Branch, Texas 

14621, 14639 and 14601
Inwood Road, Addison, Texas

14303 Inwood Road, Farmers
Branch, Texas

 

    F-1

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