Exhibit 10.2


 








 






 


LIMITED LIABILITY COMPANY AGREEMENT


 


OF


 


SGO RETAIL ACQUISITIONS VENTURE, LLC


 


Dated as of March 9, 2015


 


THE LIMITED LIABILITY COMPANY INTERESTS REPRESENTED
BY THIS LIMITED LIABILITY COMPANY AGREEMENT HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED WITH THE SECURITIES
AND EXCHANGE COMMISSION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER THE DELAWARE SECURITIES ACT, OR OTHER SIMILAR FEDERAL
OR STATE STATUTES OR AGENCIES IN RELIANCE UPON EXEMPTIONS FROM REGISTRATION AS PROVIDED IN THOSE STATUTES. THE SALE, ASSIGNMENT,
TRANSFER, EXCHANGE, MORTGAGE, PLEDGE OR OTHER DISPOSITION OF ANY LIMITED LIABILITY COMPANY INTEREST IS RESTRICTED IN ACCORDANCE
WITH THE PROVISIONS OF THIS LIMITED LIABILITY COMPANY AGREEMENT, AND THE EFFECTIVENESS OF ANY SUCH SALE OR OTHER DISPOSITION MAY
BE CONDITIONED UPON, AMONG OTHER THINGS, RECEIPT BY THE COMPANY OF AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY AND ITS COUNSEL
THAT SUCH SALE OR OTHER DISPOSITION CAN BE MADE WITHOUT REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, THE DELAWARE
SECURITIES ACT AND OTHER APPLICABLE FEDERAL OR STATE STATUTES. BY ACQUIRING THE LIMITED LIABILITY COMPANY INTERESTS REPRESENTED
BY THIS LIMITED LIABILITY COMPANY AGREEMENT, EACH MEMBER REPRESENTS THAT IT WILL NOT SELL OR OTHERWISE DISPOSE OF ITS LIMITED LIABILITY
COMPANY INTERESTS WITHOUT REGISTRATION OR OTHER COMPLIANCE WITH THE AFORESAID STATUTES AND RULES AND REGULATIONS THEREUNDER AND
THE TERMS AND PROVISIONS OF THIS LIMITED LIABILITY COMPANY AGREEMENT.


 




    	 



    	 



    

  


Table
of Contents








	 	 	 	Page
	 	 	 	 
	ARTICLE I	 	DEFINED TERMS	1
	 	 	 	 
	1.01	 	Defined Terms	1
	 	 	 	 
	1.02	 	Other Defined Terms	13
	 	 	 	 
	ARTICLE II	 	ORGANIZATION	13
	 	 	 	 
	2.01	 	FORMATION	13
	 	 	 	 
	2.02	 	Name and Principal Place of Business	14
	 	 	 	 
	2.03	 	Term	14
	 	 	 	 
	2.04	 	Registered Agent and Registered Office	14
	 	 	 	 
	2.05	 	Purpose	14
	 	 	 	 
	2.06	 	Company Property	15
	 	 	 	 
	ARTICLE III	 	MEMBERS	15
	 	 	 	 
	3.01	 	Members	15
	 	 	 	 
	3.02	 	Limitation On Liability	16
	 	 	 	 
	3.03	 	Waiver of Other Rights	16
	 	 	 	 
	3.04	 	No Certificated Interests	16
	 	 	 	 
	3.05	 	No State Law Partnership	16
	 	 	 	 
	ARTICLE IV	 	CAPITAL	16
	 	 	 	 
	4.01	 	Initial Capital Contributions	16
	 	 	 	 
	4.02	 	Additional Capital Contributions	18
	 	 	 	 
	4.03	 	Capital Accounts	21
	 	 	 	 
	4.04	 	No Further Capital Contributions	22
	 	 	 	 
	4.05	 	Loans	22
	 	 	 	 
	ARTICLE V	 	INTERESTS IN THE COMPANY	23
	 	 	 	 
	5.01	 	Percentage Interest	23
	 	 	 	 
	5.02	 	Return of Capital	23
	 	 	 	 
	5.03	 	Ownership	23
	 	 	 	 
	5.04	 	Waiver of Partition; Nature of Interests in the Company	23
	 	 	 	 
	ARTICLE VI	 	ALLOCATIONS AND DISTRIBUTIONS	24
	 	 	 	 
	6.01	 	Allocations	24









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(continued)


 


	 	 	 	Page
	 	 	 	 
	6.02	 	Allocations and Compliance with Section 704(b)	24
	 	 	 	 
	6.03	 	Distributions and Payments	26
	 	 	 	 
	6.04	 	Special Payments and Distributions	27
	 	 	 	 
	6.05	 	Distributions in Liquidation	28
	 	 	 	 
	6.06	 	Tax Matters	29
	 	 	 	 
	6.07	 	Tax Matters Partner	29
	 	 	 	 
	6.08	 	Allocations for Income Tax Purposes	29
	 	 	 	 
	ARTICLE VII	 	MANAGEMENT	30
	 	 	 	 
	7.01	 	Management	30
	 	 	 	 
	7.02	 	GAP Consultant	35
	 	 	 	 
	7.03	 	Duties of managing member	35
	 	 	 	 
	7.04	 	Services and Fees	40
	 	 	 	 
	7.05	 	Duties and Conflicts	41
	 	 	 	 
	7.06	 	Company Expenses	45
	 	 	 	 
	ARTICLE VIII	 	BOOKS AND RECORDS	45
	 	 	 	 
	8.01	 	Books and Records	45
	 	 	 	 
	8.02	 	Accounting and Fiscal Year	46
	 	 	 	 
	8.03	 	Reports	46
	 	 	 	 
	8.04	 	The Company Accountant	48
	 	 	 	 
	8.05	 	Reserves	48
	 	 	 	 
	8.06	 	The Budget and Operating Plan	48
	 	 	 	 
	8.07	 	Accounts	49
	 	 	 	 
	ARTICLE IX	 	TRANSFER OF INTERESTS	49
	 	 	 	 
	9.01	 	No Transfer	49
	 	 	 	 
	9.02	 	Permitted Transfers	49
	 	 	 	 
	9.03	 	Transferees	50
	 	 	 	 
	9.04	 	Section 754 Election	50
	 	 	 	 
	9.05	 	INTENTIONALLY OMITTED	51
	 	 	 	 
	9.06	 	GAP’s Right to Force Sale	51


 




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Table
of Contents


(continued)


 





	 	 	 	Page
	 	 	 	 
	ARTICLE X	 	EXCULPATION AND INDEMNIFICATION	53
	 	 	 	 
	10.01	 	Exculpation	53
	 	 	 	 
	10.02	 	Indemnification	54
	 	 	 	 
	ARTICLE XI	 	DISSOLUTION AND TERMINATION	55
	 	 	 	 
	11.01	 	Dissolution	55
	 	 	 	 
	11.02	 	Termination	56
	 	 	 	 
	11.03	 	Liquidating Member	57
	 	 	 	 
	11.04	 	Claims of the Members	57
	 	 	 	 
	ARTICLE XII	 	DEFAULT BY MEMBER	57
	 	 	 	 
	12.01	 	Events of Default	57
	 	 	 	 
	12.02	 	Effect of Event of Default	57
	 	 	 	 
	ARTICLE XIII	 	REPRESENTATIONS, WARRANTIES AND COVENANTS	58
	 	 	 	 
	13.01	 	Representations and Warranties of the Members	58
	 	 	 	 
	ARTICLE XIV	 	MISCELLANEOUS	65
	 	 	 	 
	14.01	 	Further Assurances	65
	 	 	 	 
	14.02	 	Notices	65
	 	 	 	 
	14.03	 	Governing Law	66
	 	 	 	 
	14.04	 	Attorney Fees	66
	 	 	 	 
	14.05	 	Captions	66
	 	 	 	 
	14.06	 	Pronouns	66
	 	 	 	 
	14.07	 	Successors and Assigns	66
	 	 	 	 
	14.08	 	Extension Not a Waiver	66
	 	 	 	 
	14.09	 	Creditors Not Benefited	67
	 	 	 	 
	14.10	 	Recalculation of Interest	67
	 	 	 	 
	14.11	 	Severability	67
	 	 	 	 
	14.12	 	Entire Agreement	67
	 	 	 	 
	14.13	 	Publicity	68
	 	 	 	 
	14.14	 	Counterparts	68
	 	 	 	 
	14.15	 	Confidentiality	68







 




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	 	 	 	Page
	 	 	 	 
	14.16	 	Venue	
        69

        

	 	 	 	 
	14.17	 	Waiver of Jury Trial	69
	 	 	 	 
	14.18	 	Attorney Representation	69
	 	 	 	 
	14.19	 	Cooperation	69


 




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LIMITED LIABILITY
COMPANY AGREEMENT

OF

SGO RETAIL ACQUISITIONS VENTURE, LLC


 


This LIMITED LIABILITY
COMPANY AGREEMENT (as may be amended, modified, supplemented or restated from time to time, this “Agreement”)
of SGO RETAIL ACQUISITIONS VENTURE, LLC, a Delaware limited liability company, is made and entered into as of March 9, 2015
(the “Effective Date”), by and between GROCERY RETAIL GRAND AVENUE PARTNERS, LLC, a Delaware limited liability
company (“GAP”), GLB SGO, LLC, a Delaware limited liability company (“Operating Member”)
and SRT SGO, LLC a Delaware limited liability company (“SRT”).


 


WHEREAS, the Company (as
hereinafter defined) was formed pursuant to a Certificate of Formation dated as of January 28, 2015 and filed with the Secretary
of State of Delaware on January 28, 2015 (the “Certificate of Formation”);


 


WHEREAS, pursuant to the
terms of the Purchase Agreement (as hereinafter defined), the Company has contracted to acquire the Initial Company Property.


 


WHEREAS, GAP, SRT and Operating
Member desire to enter into this Agreement to, among other things, allocate rights and obligations with respect to the acquisition,
management and ownership of the Initial Company Property.


 


NOW, THEREFORE, the parties
hereto hereby agree as follows:


 


ARTICLE
I

DEFINED TERMS


 


1.01        Defined
Terms


 


As used in this Agreement,
the following terms have the meanings set forth below:


 


“Additional Capital
Contributions” has the meaning set forth in Section 4.02(a).


 


“Adjusted Capital
Account” means, with respect to any Member for any taxable year or other period, the balance in such Member’s Capital
Account as of the end of such year or other period, after giving effect to the following adjustments:


 


(a)         Credit
to such Capital Account any amounts that such Member is obligated to restore or is deemed obligated to restore as described in
the penultimate sentence of Treasury Regulation Section 1.704-2(g)(1) and in Treasury Regulation Section 1.704-2(i);
and


 


(b)         Debit
to such Capital Account the items described in Treasury Regulation Sections 1.704-1(b)(2)(ii)(d)(4), (5)
and (6).


 




    	 



    	 



    

  


“Adjusted Capital
Account Deficit” means, with respect to any Member for any taxable year or other period, the deficit balance, if any,
in such Member’s Adjusted Capital Account as of the end of such year or other period.


 


“Affiliated”
or “Affiliate” means, with respect to any Person, (i) any Person who directly or indirectly through one or more
intermediaries controls, is controlled by, or is under common control with such Person, (ii) any Person who is an Immediate Family
Member of such Person or (iii) any Person in which such Person or one or more of the Immediate Family Members of such Person has
a ten percent (10%) or more direct or indirect beneficial interest (whether an initial, residual or contingent interest) or as
to which such Person, directly or indirectly, serves as a managing member, general partner, trustee or in a similar fiduciary or
management capacity.


 


“Agreement”
has the meaning set forth in the introductory paragraph hereof.


 


“Bankruptcy”
means the occurrence of any of the following events with respect to a particular Person: (a) the filing by such Person of an application
for, or a consent to, the appointment of a trustee for such Person’s assets; (b) the filing by such Person of a voluntary
petition in bankruptcy or the filing of a pleading in any court of record admitting in writing its inability to pay its debts as
they come due; (c) the making by such Person of a general assignment for the benefit of creditors; (d) the filing by such
Person of an answer admitting the material allegations of, or its consenting to or defaulting in answering, a bankruptcy petition
filed against it in any bankruptcy proceeding; or (e) the entry of an order, judgment, or decree by any court of competent jurisdiction
adjudicating such Person a bankrupt or appointing a trustee of its assets, and such order, judgment, or decree continues unstayed
and in effect for a period of one hundred twenty (120) days.


 


“Book Basis”
means, with respect to any asset of the Company, the adjusted basis of such asset for federal income tax purposes; provided,
however, that (a) if any asset is contributed to the Company, the initial Book Basis of such asset shall equal its fair
market value on the date of contribution, and (b) the Book Basis of all Company Property shall be adjusted to equal their
respective gross fair market values, as determined by GAP, as of the following times: (i) the acquisition of an additional
Interest by any new or existing Member in exchange for more than a de minimis Capital Contribution; (ii) the distribution
by the Company to a Member of more than a de minimis amount of property as consideration for an Interest; (iii) in
connection with the liquidation of the Company within the meaning of Treasury Regulation Section 1.704-1(b)(2)(ii)(g);
and (iv) any other instance in which such adjustment is permitted under Treasury Regulation Section 1.704-1(b)(2)(iv); provided,
however, that adjustments pursuant to clauses (i), (ii) and (iv) above shall be made only if GAP determines that such adjustments
are necessary or appropriate to reflect the relative economic interests of the Members in the Company. The Book Basis of all assets
of the Company shall be adjusted thereafter by depreciation as provided in Treasury Regulation Section 1.704-1(b)(2)(iv)(g)
and any other adjustment to the basis of such assets other than depreciation or amortization.


 




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“Budget”
means the budget covering the Company’s anticipated operations (i) approved by GAP in accordance with the terms of this Agreement
and (ii) in effect pursuant to Section 8.06.


 


“Business Day”
means any day other than Saturday, Sunday, any day that is a legal holiday in the State of California or New York, or any other
day on which banking institutions in California or New York are authorized to close. For the avoidance of doubt, any reference
to “day(s)” (and not “Business Days”) in this Agreement shall mean calendar days.


 


“Capital Account”
means the separate account maintained for each Member under Section 4.03.


 


“Capital Contribution”
means, with respect to any Member, all Initial Capital Contributions and Additional Capital Contributions made by such Member to
the Company pursuant to this Agreement; provided, however, that any amount returned by a Member pursuant to the proviso in Section
4.02(a), the proviso in Section 4.05 or Section 6.03 shall be treated as a contribution of capital to the Company
(but not as a Capital Contribution for purposes hereof) and shall be treated as if such returned amount was not previously distributed
to such Member.


 


“Certificate of
Formation” has the meaning set forth in the Recitals.


 


“Change in Control”
means the occurrence of any transfer following which the Key Person, together with the Immediate Family Members of the Key Person,
ceases to own at least fifty percent (50%) of the beneficial ownership interests of Operating Member or have the ability to direct
or cause the direction of the management policies of Operating Member through ownership of voting securities or beneficial interests,
by contract or otherwise.


 


“Close Associate”
is a person who is widely and publicly known to maintain an unusually close relationship with a Senior Foreign Political Figure,
and includes a Person who is in a position to conduct substantial United States and non-United States financial transactions on
behalf of the Senior Foreign Political Figure.


 


“Closing Date”
means the day of the “Closing” under the Purchase Agreement.


 


“Code”
means the Internal Revenue Code of 1986, as amended. All references herein to sections of the Code shall include any corresponding
provision or provisions of succeeding law.


 


“Company”
means the limited liability company formed and governed by the terms of this Agreement.


 


“Company Accountant”
has the meaning set forth in Section 8.04.


 




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“Company Management
Services” means (a) the services performed by Managing Member as provided for herein, pursuant to this Agreement, or
Property Manager as provided for in the Property Management Agreement, pursuant to the Property Management Agreement, and all actions
in the day-to-day management of the Company provided under the Budget and Operating Plan and (b) all other services reasonably
requested from time to time by GAP, and reasonably agreed to by Managing Member, consistent with other services customarily provided
by managing members or managers as part of their ordinary compensation in comparable circumstances. Managing Member may retain
the Property Manager, as defined herein, or another person or entity approved by GAP, to perform the Company Management Services
for the Company; provided, however, that Managing Member shall cause said Property Manager to perform Company Management
Services and shall remain responsible for performing Company Management Services if Property Manager fails to do so.


 


“Company Minimum
Gain” means “partnership minimum gain” as defined in Treasury Regulation Section 1.704-2(d).


 


“Company Property”
means any asset or other property (real, personal or mixed) owned by or leased to the Company or any Property Company, which shall
consist of the Initial Company Property, and other property acquired by the Company or any Property Company pursuant to the terms
hereof.


 


“Competitive Area”
has the meaning set forth in Section 7.05(c).


 


“Competitive Opportunity”
has the meaning set forth in Section 7.05(c).


 


“Confidential
Information” has the meaning set forth in Section 14.15(a).


 


“Contract and
Due Diligence Costs” has the meaning set forth in Section 4.01(b).


 


“Contributing
Member” has the meaning set forth in Section 4.02(c).


 


“Contribution
Deadline” has the meaning set forth in Section 4.02(a).


 


“control”
(including the terms “controlling”, “controlled by” and “under common control with”) means
the possession, direct or indirect, of the power (i) to vote ten percent (10%) or more of the outstanding voting securities
of such person or entity; or (ii) to otherwise direct management policies of such person or entity by contract or otherwise.


 


“Deadlock”
means the failure of the Members to approve a Major Decision after the Members have acted reasonably and in good faith to resolve
any differences, including being available to attend meetings in person or by telephone, participate in conferences in person or
by telephone, consult with third party consultants and professionals, and otherwise take reasonable steps to resolve any differences
with respect to the proposed Major Decision.


 


“Delaware Act”
means the Delaware Limited Liability Company Act, as amended from time to time.


 


“Disposition Fee”
means one percent (1%) of the aggregate Net Sales Proceeds received by the Company from the sales of the Initial Company Property.


 




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“Effective Date”
has the meaning set forth in the introductory paragraph hereof.


 


“Ensenada Square
Property” means that certain commercial retail center located at 301 S. Bowen Road, Arlington, TX comprising approximately
63,000 square feet of commercial retail space.


 


“Equity Multiple”
means an amount determined by dividing (i) the sum of all distributions of Net Cash Flow received by GAP pursuant to Section
6.03, excluding, however, Section 6.03(a), by (ii) GAP’s Gross Adjusted Capital Contributions.


 


“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended from time to time.


 


“Event of Default”
has the meaning set forth in Section 12.01.


 


“Excess Amounts”
has the meaning set forth in Section 4.02(c).


 


“Expenses”
means, for any period, the total gross expenditures of the Company and any Property Companies reasonably relating to the operations
of the Company and such Property Companies, ownership, entitlement, development, maintenance, management, operations, sale, financing
or refinancing of Company Property during such period contemplated by the then applicable Budget or otherwise approved (either
prospectively or retroactively) by GAP, including (a) all cash operating expenses (including, without limitation, real estate taxes
and assessments, personal property taxes, sales taxes, and all fees, commissions, expenses and allowances paid or reimbursed to
any Member or any of its Affiliates to the extent permitted hereunder), (b) all deposits of Revenues to the Company’s
reserve accounts, (c) all debt service payments including debt service on loans made to the Company by the Members or any
of their Affiliates (other than Shortfall Loans), (d) all expenditures which are treated as capital expenditures (as distinguished
from expense deductions included in (a)) under GAAP, and (e) all expenditures related to any acquisition, sale, disposition,
financing, refinancing or securitization of any Company Property; provided, however, that Expenses shall not include
(i) any payment or expenditure to the extent (A) the sources of funds used for such payment or expenditure are not included
in Revenues or (B) such payment or expenditure is paid out of any Company reserves unless the withdrawal of the funds to make
such payment or expenditure was treated as Revenues, and (ii) any expenditure properly attributable to the liquidation of
the Company.


 


“for cause”
means any of the following events: (a) any material breach of (i) this Agreement by Operating Member, including the failure of
Operating Member to fund Required Capital Contributions, or the taking of a Major Decision without having obtained the required
prior approval of the Majority Members, or (ii) the Property Management Agreement by Property Manager (if Affiliated with Operating
Member), or in either case, by any of their respective representatives or Affiliates, (b) any action or omission on the part of
Operating Member, Property Manager (if Affiliated with Operating Member), any Key Person or any of their respective representatives
or Affiliates which amounts to gross negligence, fraud, bad faith, willful misconduct or any misappropriation or intentional misapplication
of Company funds, (c) any Change in Control or Key Person Event, (d) (i) criminal misconduct which has an adverse effect on the
business or affairs of the Company, as determined by GAP in good faith in its sole discretion or (ii) commission of a felony by
Operating Member, Property Manager (if Affiliated with Operating Member), any Key Person or any of their respective representatives
or Affiliates, (e) any default by Operating Member under Section 7.05(c), (f) breach of the representation set forth in
Section 13.01(b); or (g) a Bankruptcy of Operating Member, Property Manager (if Affiliated with Operating Member), or any
Key Person or Key Entity. Each of the above events is referred to herein as a “for cause” event.


 




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“for lack of performance”
shall mean the Company’s failure to meet the achievements described on Exhibit D attached hereto.


 


“Fundamental Decision”
means (i) any amendment, modification or termination of this Agreement, except for amendments or modifications which would not
have a disproportionate adverse effect on a Member who otherwise would not be permitted to vote, or (ii) dissolving, terminating
or winding up the Company if the Company Property has not been sold in accordance with this Agreement.


 


“GAAP”
means United States generally accepted accounting principles consistently applied.


 


“GAP”
has the meaning set forth in the introductory paragraph hereof.


 


“GAP Organizational
Documents” has the meaning set forth in Section 13.01(d)(i).


 


“GAP Party”
has the meaning set forth in Section 7.05(c).


 


“Governmental
Authority” means any United States or non-United States federal, national, supranational, state, provincial, local or
similar government, governmental, regulatory or administrative authority, branch, agency or commission or any court, tribunal,
or arbitral or judicial body (including any grand jury).


 


“Gross Adjusted
Capital Contributions” means, with respect to each Member, the total amount of Capital Contributions (other than Shortfall
Capital Contributions) contributed by such Member to the Company pursuant to the terms hereof, as adjusted pursuant to Section
4.02(c).


 


“Immediate Family
Member” means the parents, siblings, spouse, children, step-children and in-laws of a Person.


 


“Indemnitees”
has the meaning set forth in Section 10.02(a).


 


“Initial Budget
and Operating Plan” has the meaning set forth in Section 8.06(a).


 


“Initial Capital
Contribution” means, with respect to any Member, any capital contribution made by such Member pursuant to Section 4.01.


 




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“Initial Company
Property” means the “Property”, as defined in the Purchase Agreement, being the real property identified
on Schedule B hereto, and related personal property to be acquired by the Company from Seller pursuant to the Purchase Agreement.


 


“Interest”
means, with respect to any Member at any time, the interest of such Member in the Company at such time, including the right of
such Member to any and all of the benefits to which such Member may be entitled as provided in this Agreement, together with the
obligations of such Member to comply with all of the terms and provisions of this Agreement.


 


“Internal Rate
of Return” or “IRR” shall be calculated using the XIRR function of Microsoft Excel utilizing the dates
that all Capital Contributions are contributed or deemed contributed to the Company in accordance with the terms of this Agreement
and the dates that all distributions are made or deemed to be made in accordance with the terms of this Agreement.


 


“Investment Notice”
has the meaning set forth in Section 7.05(c).


 


“Key Entity”
means Operating Member.


 


“Key Person”
means Andrew Batinovich.


 


“Key Person Event”
means (i) the death or disability of the Key Person, (ii) the failure of the Key Persons to control Operating Member and Property
Manager; or (iii) the occurrence of a Change in Control; provided, however, a “Key Person Event” shall not be deemed
to have occurred pursuant to clauses (i) or (ii) above if the Key Person is replaced by a successor reasonably acceptable to GAP
within sixty (60) days of the referenced event.


 


“Lender”
means individually and collectively, any lender under a Loan.


 


“Liquidating Member”
means the Member designated as such by GAP; provided, however, that any Member that is then in default hereunder
or that causes the dissolution of the Company under Section 11.01(c) shall not serve as the Liquidating Member (in
which event the Liquidating Member shall be the non-defaulting Member).


 


“Loan”
means any future mortgage loan encumbering some or all of the Initial Company Property entered into by the Company or one or more
of the Property Companies and approved by GAP.


 


“Loan Documents”
means the note(s), the mortgage and the other loan documents executed and delivered by the Company, one or more of the Property
Companies and any applicable guarantor(s) and/or indemnitor(s) to the Lender in connection with a Loan.


 


“Loss”
means, for each taxable year or other period, an amount equal to the Company’s items of tax deduction and loss for such year
or other period, determined in accordance with Section 703(a) of the Code (including all items of loss or deduction required
to be stated separately under Section 703(a)(1) of the Code), with the following adjustments:


 




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(a)         Any
expenditures of the Company described in Section 705(a)(2)(B) of the Code or treated as Section 705(a)(2)(B) expenditures
under Treasury Regulation Section 1.704-1(b)(2)(iv)(i), and not otherwise taken into account in computing Loss, will be considered
an item of Loss;


 


(b)         Loss
resulting from any disposition of Company Property with respect to which gain or loss is recognized for federal income tax purposes
will be computed by reference to the Book Basis of such property, notwithstanding that the adjusted tax basis of such property
may differ from its Book Basis;


 


(c)         In
lieu of depreciation, amortization and other cost recovery deductions taken into account in computing taxable income or loss, there
will be taken into account depreciation for the taxable year or other period as determined in accordance with Treasury Regulation
Section 1.704-1(b)(2)(iv)(g);


 


(d)         Any
items of deduction and loss specially allocated pursuant to Section 6.02 shall not be considered in determining Loss; and


 


(e)         Any
decrease to Capital Accounts as a result of any adjustment to the Book Basis of Company Property pursuant to Treasury Regulation
Section 1.704-1(b)(2) (iv)(f) or (g) shall constitute an item of Loss.


 


“Major Decision”
has the meaning set forth in Section 7.01(b).


 


“Majority Members”
means two (2) Members; provided, unless a Vote Loss Event has occurred with respect to GAP, GAP must be one of the two (2) Members;
provided, further, the approval of any Member as to which a Vote Loss Event shall have occurred shall not be required.


 


“Managing Member”
means, initially, Operating Member.


 


“Member”
means GAP, SRT and/or Operating Member, or any other Person who is admitted as a member of the Company in accordance with this
Agreement and applicable law.


 


“Member Minimum
Gain” means the Company’s “partner nonrecourse debt minimum gain” as defined in Treasury Regulation
Section 1.704-2(i)(2).


 


“Member Negotiation
Expenses” has the meaning set forth in Section 4.01(b).


 


“Member Nonrecourse
Deductions” means “partner nonrecourse deductions” as defined in Treasury Regulation Section 1.704-2(i)(2).


 


“Membership Sale”
has the meaning set forth in Section 9.06(a).


 


“Net Cash Flow”
means, for any period, the excess of (a) Revenues for such period over (b) Expenses for such period.


 




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“Net Loss”
means, for any period, the excess of Losses over Profits, if applicable, for such period.


 


“Net Profit”
means, for any period, the excess of Profits over Losses, if applicable, for such period.


 


“Net Sales Proceeds”
means (i) the gross proceeds payable to the Company from the sale(s) of the Initial Company Property, without reduction for the
repayment of the outstanding principal amount and accrued interest of any indebtedness secured by the Initial Company Property,
minus (without duplication) (ii) all costs of sale chargeable to the Company, including, without limitation, brokerage commissions,
attorneys’ fees, transfer taxes, prorations, title and escrow fees and charges, and loan prepayment, breakage and exit fees.


 


“Non-Contributing
Member” has the meaning set forth in Section 4.02(c).


 


“Nonrecourse Deductions”
has the meaning set forth in Treasury Regulation Section 1.704-2(b)(1).


 


“Notices”
has the meaning set forth in Section 14.02.


 


“OFAC”
means the U.S. Department of the Treasury’s Office of Foreign Assets Control.


 


“OFAC List”
is any list of prohibited countries, individuals, organizations and entities that is administered or maintained by OFAC, including:
(i) Section 1(b), (c) or (d) of Executive Order No. 13224 (September 23, 2001) issued by the President of the United States (Executive
Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism), any related
enabling legislation or any other similar executive orders, (ii) the List of Specially Designated Nationals and Blocked Persons
(the “SDN List”) maintained by OFAC), and/or on any other similar list (“Other Lists”) maintained
by OFAC pursuant to any authorizing statute, executive order or regulation, or (iii) a “Designated National” as defined
in the Cuban Assets Control Regulations, 31 C.F.R. Part 515.


 


“Operating Member”
has the meaning set forth in the introductory paragraph hereof.


 


“Operating Member
Organizational Documents” has the meaning set forth in Section 13.01(b)(i).


 


“Operating Plan”
means the strategic and comprehensive operating plan covering the Company’s operation of Company Property, including, without
limitation, any anticipated entitlement and/or development work with respect to the Company Property, which is approved by GAP
and in effect from time to time pursuant to Section 8.06.


 


“Partially Adjusted
Capital Account” means, with respect to any Member for any taxable year or other period of the Company, the Capital Account
balance of such Member at the beginning of such year or period, adjusted for all contributions and distributions during such year
or period and all special allocations pursuant to Section 6.02 with respect to such year or period but before giving
effect to any allocations of Net Profit or Net Loss pursuant to Section 6.01.


 




    	-9-



    	 



    

  


“Patriot Act”
has the meaning set forth in Section 13.01(b)(viii).


 


“Percentage Interest”
means with regard to each Member the percentage set forth below opposite its name (in each case subject to adjustment as provided
in this Agreement):


 





	Member	 	 	Percentage Interest	 
	GAP	 	 	80	%
	SRT	 	 	19	%
	Operating Member	 	 	1	%













 


“Person”
means any individual, partnership, corporation, limited liability company, limited liability partnership, trust or other entity.


 


“Profit”
means, for each taxable year or other period, an amount equal to the Company’s items of taxable income and gain for such
year or other period, determined in accordance with Section 703(a) of the Code (including all items of income and gain required
to be stated separately under Section 703(a)(1) of the Code), with the following adjustments:


 


(a)         Any
income of the Company that is exempt from federal income tax and not otherwise taken into account in computing Profit will be added
to Profit;


 


(b)         Gain
resulting from any disposition of Company Property with respect to which gain or loss is recognized for federal income tax purposes
will be computed by reference to the Book Basis of such property, notwithstanding that the adjusted tax basis of such property
may differ from its Book Basis;


 


(c)         Any
items specially allocated pursuant to Section 6.02 shall not be considered in determining Profit; and


 


(d)         Any
increase to Capital Accounts as a result of any adjustment to the Book Basis of Company Property pursuant to Treasury Regulation
Section  1.704-1(b)(2)(iv)(f) or (g) shall constitute an item of Profit.


 


“Property Company”
and “Property Companies” have the meaning set forth in Section 2.06.


 


“Property Management
Agreement” means the Property Management Agreement in the form attached hereto as Exhibit A, to be entered into by and
between the Company or a Property Company, as applicable, and Property Manager on the Closing Date.


 




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“Property Manager”
means Glenborough LLC, a Delaware limited liability company, which is Affiliated with Operating Member, or any other Person who
is engaged as a property manager for the Company Property and approved by GAP, whose services will include those specified in the
Property Management Agreement.


 


“Protection Decision”
has the meaning set forth in Section 7.01(d).


 


“Purchase Agreement”
means the Purchase and Sale Agreement, dated as of March 11, 2015, by and among TNP SRT Osceola Village, LLC, a Delaware limited
liability company, SRT Constitution Trail LLC, a Delaware limited liability company, and TNP SRT Aurora Commons LLC, a Delaware
limited liability company, collectively, as seller, and the Company, as amended from time to time.


 


“Reasonable Period”
means, with respect to any defaulting member, a period of ten (10) Business Days after such defaulting Member receives written
notice of its default from a non-defaulting Member; provided, however, that if such breach can be cured but cannot
reasonably be cured within such 10-Business Day period, the period shall continue, if such defaulting Member commences to cure
the breach within such 10-Business Day period, for so long as such defaulting Member diligently prosecutes the cure to completion
up to a maximum of the lesser of (a) twenty (20) Business Days, or (b) the period of time allowed for such performance under any
material agreement affecting the Company Property, including without limitation the mortgage, if any, encumbering Company Property.


 


“Regulatory Allocations”
has the meaning set forth in Section 6.02(g).


 


“Reimbursement
Agreement” means, the Reimbursement and Indemnity Agreement, dated as of March 9, 2015, by and between GAP, Operating
Member, SRT and Strategic Realty Trust, Inc., a Maryland corporation, as amended from time to time.


 


“Required Capital
Contributions” means, the Initial Capital Contribution.


 


“Revenues”
means, for any period, the total gross revenues received by the Company during such period, including all receipts of the Company
from (a) rent, cost, expense and other recoveries and all additional rent paid to the Company (including for parking facilities),
(b) concessions to the Company which are in the nature of revenues, (c) rent or business interruption insurance, and casualty and
liability insurance, if any, (d) funds made available to the extent such funds are withdrawn from the Company’s reserve accounts
and deposited into the Company’s operating accounts, (e) proceeds from the sale or other disposition of any Company Property,
(f) proceeds from the financing, refinancing or securitization of any Company Property, and (g) other revenues and receipts realized
by the Company, including without limitation excess cash from Capital Contributions that were not used as contemplated for the
purpose of funding the Shortfall giving rise to the need for such Capital Contributions or such other Shortfall as the Members
may determine.


 


“ROFO Opportunity”
has the meaning set forth in Section 7.05(c).


 


“Sale Property”
has the meaning set forth in Section 9.06(a).


 




    	-11-



    	 



    

  


“Seller”
has the meaning set forth in the Purchase Agreement.


 


“Senior Foreign
Political Figure” means a senior official of a major non-United States political party or a senior executive of a government-owned
corporation not organized within the United States. In addition, a “Senior Foreign Political Figure” includes any corporation,
business or other entity that has been formed by or for the benefit of a Senior Foreign Political Figure.


 


“Shortfall”
has the meaning set forth in Section 4.02(a).


 


“Shortfall Advance”
has the meaning set forth in Section 4.02(d).


 


“Shortfall Capital
Contribution” has the meaning set forth in Section 4.02(d).


 


“Shortfall Contributing
Member” has the meaning set forth in Section 4.02(d).


 


“Shortfall Election”
shall mean, in the event of a Shortfall, an election by the Contributing Member(s) pursuant to Section 4.02(d) to either
treat the entire Shortfall as (i) a Shortfall Loan or (ii) a Shortfall Capital Contribution.


 


“Shortfall Loan”
shall mean the option, under a Shortfall Election, to treat Shortfall Advances as a loan to the Company instead of a Shortfall
Capital Contribution.


 


“SPE”
has the meaning set forth in Section 7.01(b)(xxi).


 


“SRO”
means a self-regulatory organization.


 


“SRT Investment
Notice” has the meaning set forth in Section 7.05(d).


 


“SRT Material
Breach” means any of the representations and warranties of “Seller” in the Purchase Agreement are found to
have been intentionally false or misleading when made.


 


“SRT Opportunity”
has the meaning set forth in Section 7.05(d).


 


“Substituted Capital
Contributions” has the meaning set forth in Section 4.02(c).


 


“Target Account”
means, with respect to any Member as of the end of any taxable year of the Company or other period, the excess of (a) an amount
(which may be positive or negative) equal to the hypothetical distribution (or contribution) such Member would receive (or be deemed
required to contribute) with respect to its equity interest in the Company if all assets of the Company, including cash, were sold
for cash equal to their Book Basis (taking into account any adjustments to Book Basis for such year or other period), all liabilities
(including Shortfall Loans) were then due and were satisfied according to their terms (limited, with respect to each nonrecourse
liability, to the Book Basis of the assets securing such liability) and all remaining proceeds from such sale were distributed
pursuant to Section 6.03 or 6.04 (whichever is applicable at the time of determination) over (b) the amount
of Company Minimum Gain and Member Minimum Gain that would be charged back to such Member as determined pursuant to Treasury Regulation
Section 1.704-2 immediately prior to such sale.


 




    	-12-



    	 



    

  


“Transfer”
has the meaning set forth in Section 9.01.


 


“Treasury Regulation”
or “Regulation” means, with respect to any referenced provision, such provision of the regulations of the United
States Department of the Treasury or any successor provision.


 


“UBTI”
means “unrelated business taxable income” as defined in Code Sections 512 through 514 and the related Treasury
Regulations.


 


“Value-Add Retail
Joint Ventures” means joint venture retail real estate investment opportunities where the internal rate of return over
a five (5) year holding period is reasonably projected to be in excess of thirteen percent (13%).


 


“Vote Loss Event”
means (a) with respect to Operating Member, (i) Operating Member shall have been removed as Managing Member for cause (unless resulting
from a Change in Control or Key Person Event resulting from the death of the Key Person), (ii) Operating Member shall have failed
to return any distributions pursuant to the provisos in Section 4.02(a) or Section 4.05 and GAP has returned such
distributions, (iii) Operating Member or its Affiliate shall have been removed as Property Manager under the Property Management
Agreement “for cause”, (iv) the occurrence of a “for lack of performance” event or (v) the reduction of
Operating Member’s Percentage Interest to less than one half of one percent (0.5%); (b) with respect to SRT, (i) the occurrence
of any event described in sub-clauses (i) through (iv) of clause (a) above with respect to Operating Member at a time when Operating
Member is the investment advisor of SRT, (ii) SRT shall have failed to return any distributions pursuant to the provisos in Section
4.02(a) or Section 4.05 and GAP has returned such distributions, (iii) the reduction of SRT’s Percentage Interest
to less than ten percent (10%) or (iv) an SRT Material Breach shall have occurred; and (c) with respect to GAP, the reduction of
GAP’s Percentage Interest to less than ten percent (10%).


 


1.02        Other
Defined Terms


 


As used in this Agreement,
unless otherwise specified, (a) all references to Sections, Articles or Exhibits are to Sections, Articles or Exhibits of this
Agreement, and (b) each accounting term has the meaning assigned to it in accordance with GAAP.


 


ARTICLE
II

ORGANIZATION


 


2.01        FORMATION


 


The Company has been formed
as a limited liability company under the Delaware Act by the filing of the Certificate of Formation. The Members hereby agree to
continue the Company as a limited liability company under the Delaware Act, upon the terms and subject to the conditions set forth
in this Agreement. GAP is hereby authorized to file and record any amendments to the Certificate of Formation and such other documents
as may be reasonably required or appropriate under the Delaware Act or the laws of any other jurisdiction in which the Company
may conduct business or own property.


 




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2.02        Name
and Principal Place of Business


 


(a)         The
name of the Company is set forth on the cover page to this Agreement. Except as otherwise provided in Section 2.07, all business
of the Company shall be conducted under such name, and title to all Company Property shall be held in such name.


 


(b)         The
principal place of business and office of the Company shall be located at c/o 400 South El Camino, 11th Floor, San Mateo, CA 94402-170,
Attention: General Counsel, or at such other place or places as Managing Member may from time to time designate.


 


2.03        Term


 


The term of the Company
commenced on the date of the filing of the Certificate of Formation pursuant to the Delaware Act, and shall continue until the
liquidation and dissolution of the Company pursuant to Article XI.


 


2.04        Registered
Agent and Registered Office


 


The name of the Company’s
registered agent for service of process shall be Corporation Service Company, and the address of the Company’s registered
agent and the address of the Company’s registered office in the State of Delaware shall be Corporation Service Company, 2711
Centerville Road, Suite 400, Wilmington, Delaware 19808. Such agent and such office may be changed from time to time by Managing
Member with written notice to all Members.


 


2.05        Purpose


 


(a)          The
purpose of the Company shall be, either by itself or through one or more Property Companies:


 


(i)          To
perform its obligations and exercise its rights under the Purchase Agreement and any other agreements or contracts contemplated
by the Purchase Agreement, and to carry out the terms of and engage in the transactions contemplated by the Purchase Agreement;


 


(ii)         If
applicable, to own, hold, sell, transfer, exchange, manage and operate its direct or indirect interest in Property Companies;


 


(iii)       To
acquire, own, entitle, develop, manage, operate, lease, improve, finance, refinance, market, sell and otherwise deal with and dispose
of the Company Property; and


 




    	-14-



    	 



    

  


(iv)        To
conduct all activities reasonably necessary or desirable to accomplish the foregoing purposes.


 


(b)         The
Company is not authorized to, and shall not, engage in any business other than as described in Section 2.05(a).


 


2.06       Company
Property


 


In connection with the
acquisition of the Initial Company Property on the Closing Date, the Members may elect to cause the Company, and, if necessary,
one or more wholly owned subsidiaries of the Company, to form one or more Delaware limited liability companies or limited partnerships
to take title to the Initial Company Property (each, a “Property Company” and collectively, “Property
Companies”). It is expressly understood that if the Company elects to utilize one or more Property Companies, the Company
shall conduct its business through the Property Company(ies); provided that it is the intent of the Members that the organizational
documents relating to the formation of the Property Companies shall be interpreted together with the provisions of this Agreement
to have substantially the same effect to the Members as would be the case if all the interests therein were held or all such business
were conducted by the Company pursuant to the terms of this Agreement. Managing Member shall perform, with no additional compensation,
substantially identical services for each Property Company as Managing Member performs for the Company, subject to the terms, conditions,
limitations and restrictions set forth in this Agreement. Managing Member agrees to perform such duties, and in such circumstances
and with regard to such duties, Managing Member shall be subject to the same standards of conduct and shall have the same rights
and obligations with regard to such duties performed or to be performed on behalf of any such Property Company as are set forth
in this Agreement with regard to substantially identical services to be performed for or on behalf of the Company. The Members
agree to make such changes as any Lender(s) may require to this Agreement and to the organizational documents of the Property Companies,
including, without limitation, the addition of a non-member manager and/or independent director to the structure of any of the
Property Companies and incorporation of special purpose entity provisions into this Agreement and/or the organization documents
of the Project Companies.


 


ARTICLE
III

MEMBERS


 


3.01        Members


 


(a)         Effective
as of the Effective Date, the Members of the Company shall be GAP, SRT and Operating Member. Except as expressly permitted by this
Agreement, no other Person shall be admitted as a member of the Company and no additional Interest shall be issued, without the
consent of Majority Members.


 


(b)         Neither
SRT nor GAP shall have any fiduciary duties toward any other Member, the Company or any Property Company. The Managing Member,
while serving in such role, shall have a fiduciary duty towards the other Members, the Company and any Property Company as described
in Section 7.03 of this Agreement.


 




    	-15-



    	 



    

  


3.02        Limitation
On Liability


 


Except as otherwise expressly
provided by the Delaware Act, the debts, obligations and liabilities of the Company, whether arising in contract, tort or otherwise,
shall be solely the debts, obligations and liabilities of the Company, and no Member shall be obligated personally for any such
debt, obligation or liability of the Company solely by reason of being a Member. Except as otherwise expressly provided in this
Agreement (with respect to liability among Members) or by the Delaware Act, the liability of each Member shall be limited to such
Member’s Interest.


 


3.03        Waiver
of Other Rights


 


The Members have (i) no
right under Section 18-604 of the Act to withdraw or resign and receive the fair value of their Interests, (ii) no right to demand
or receive any distribution from the Company in any form other than cash and in accordance with the provisions of this Agreement
concerning distributions, and (iii) no right under the first sentence of Section 18-606 of the Act.


 


3.04        No
Certificated Interests


 


The Interests shall not
be certificated unless otherwise approved by both Operating Member and GAP. A Member’s Interest shall be personal property
for all purposes.


 


3.05        No
State Law Partnership


 


The Company shall not be
a partnership or joint venture under any state or federal law, and no Member shall be a partner or joint venturer of any other
Member for any purposes, other than under the Code and other applicable tax laws, and this Agreement may not be construed otherwise.


 


ARTICLE
IV

CAPITAL


 


4.01        Initial
Capital Contributions


 


(a)         Intentionally
Omitted.


 




    	-16-



    	 



    

  


(b)         Due
Diligence Costs. Operating Member, SRT, GAP and their respective Affiliates have heretofore incurred, and may hereafter incur,
third party out-of-pocket costs and expenses in connection with the negotiation of the Purchase Agreement, including without limitation,
their due diligence analyses and other evaluations of the Initial Company Property and any engineering and feasibility costs and
expenses (collectively, the “Contract and Due Diligence Costs”; such costs shall include, without limitation,
costs (including, without limitation, attorneys’ fees) incurred by GAP in reviewing and analyzing work conducted by Operating
Member or its agents but will exclude any costs incurred by SRT or Operating Member in connection with the negotiation of the Purchase
Agreement). GAP, GAP Party, SRT and Operating Member have heretofore incurred third party costs and expenses in connection with
the negotiation and execution of this Agreement, and the Property Management Agreement (collectively, the “Member Negotiation
Expenses”). For purposes of this Section 4.01(b), Operating Member’s and SRT’s Member Negotiation
Expenses shall be limited to the actual third party costs and expenses incurred by Operating Member and SRT solely in connection
with the negotiation and execution of this Agreement, and the Property Management Agreement (and shall exclude, without limitation,
any other costs and expenses that Operating Member or SRT may have incurred or may hereafter incur in connection with any prior
negotiations and/or transactions with any Person other than GAP or GAP Party relating to the Initial Company Property. Provided
that the Company acquires the Initial Company Property pursuant to the Purchase Agreement, (i) the Company shall pay or reimburse
GAP for (A) all Contract and Due Diligence Costs, (B) all Member Negotiation Expenses incurred by GAP and GAP Party, and (ii) the
Company shall pay or reimburse Operating Member and SRT for all such Member Negotiation Expenses incurred by Operating Member and
SRT, in each case, to the extent such Member seeking reimbursement has provided the Company and the other Members with documentary
evidence and such other evidence, reasonably satisfactory to the Company, relating to such Member Negotiation Expenses, and so
that each Member’s share of all such costs, expenses and consideration shall be in proportion to their respective Percentage
Interests.


 


(c)         Failure
to Close Purchase; Initial Capital Contributions. Whether the Company shall proceed with the transaction pursuant to the Purchase
Agreement, including, but not limited to, whether it shall close the purchase of the Initial Company Property shall be determined
by GAP in its sole discretion, and no Member or any Affiliate thereof shall have any claim against the Company or any other Member
or Affiliate of a Member or GAP by reason of such determination. In the event GAP decides cause the Company to close the purchase
of the Initial Company Property pursuant to the Purchase Agreement, then two (2) Business Days after any request by the Managing
Member (as directed by GAP) (or upon the closing of the acquisition of the Initial Company Property, if earlier), GAP and Operating
Member shall contribute in cash to the capital of the Company their pro rata shares (based upon their actual Percentage
Interests) of the sum of (i) the amount reasonably determined by the Managing Member to be necessary to close the acquisition of
the Initial Company Property, including, without limitation, the Company’s equity, closing costs, Contract and Due Diligence
Costs, and (ii) a reasonable amount of initial working capital of, and reserves for, the Company, as determined by the Managing
Member (all such amounts shall be credited as provided in Section 4.01(b)). Operating Member’s and GAP’s respective
estimated required Initial Capital Contributions, which are to be funded prior to the acquisition of the Initial Company Property,
as well as the sources and uses for the closing, are described on Schedule A attached hereto. If, either before or after
the acquisition of the Initial Company Property, the Managing Member determines that the Initial Capital Contributions described
on Schedule A do not accurately reflect the matters specified in the second sentence of this paragraph, then the Managing
Member may readjust the Initial Capital Contributions required of each Member. For avoidance of doubt, SRT’s Percentage Interest
is being acquired in exchange for the value of the Initial Company Property that is in excess of the purchase price being paid
for the Initial Company Property by the Company. In no event will SRT be required to make an Initial Capital Contribution in cash
to the Company; provided, as contemplated by the Purchase Agreement, the purchase price for the Initial Company Property shall
be reduced by an amount equal to (i) the sum of the Contract and Due Diligence Costs and Member Negotiation Expenses for which
the Members are entitled to reimbursement under Section 4.01(b) multiplied by (ii) SRT’s Percentage Interest.


 




    	-17-



    	 



    

  


4.02        Additional
Capital Contributions


 


(a)         If
at any time or from time to time after all of the Initial Capital Contributions have been contributed, GAP determines that additional
funds (a “Shortfall”) are required (i) for costs provided by the Initial Budget and Operating Plan, or (ii)
for costs necessary on an emergency basis to protect the Company and any of its assets, including without limitation, the Initial
Company Property, or (iii) for costs and expenses not provided by the Initial Budget and Operating Plan but approved in writing
by GAP, then in connection with any such Shortfall set forth in 4.02(a)(i), (ii), or (iii), GAP shall have
the right to require that the Members make further capital contributions (“Additional Capital Contributions”)
in the amount of such Shortfall. If directed by GAP, each Member shall, within fifteen (15) Business Days thereafter (or such shorter
period, if any, in order to avoid a default under a Loan Document but not less than three (3) Business Days) (the “Contribution
Deadline”), contribute its pro rata share of such Shortfall based on its Percentage Interest, provided however,
that in the event that distributions have been made pursuant to Section 6.03(c), 6.03(d), 6.03(e) or 6.03(f)
at the time the Additional Capital Contributions are to be made, the Shortfall shall be funded by the Members by returning distributions
previously made pursuant Section 6.03(c), 6.03(d), 6.03(e) or 6.03(f), respectively, in accordance
with each Member’s then most recent distribution percentage under Section 6.03(c), 6.03(d), 6.03(e)
or 6.03(f), respectively (but only to the extent of such distributions), and any distributions returned shall be treated
as not having been made for purposes of making future distributions (other than taking into account the timing of such distributions
and their return for purposes of computing the applicable IRR thresholds).


 


(b)         The
Initial Capital Contributions required by Section 4.01 shall be made by wire transfer of funds to an account in the name
of the Company designated by the Managing Member. All other Capital Contributions and the return of any distributions pursuant
to the proviso in Section 4.02(a) or the proviso in Section 4.05 shall be made by wire transfer of funds to accounts
in the name of the Company designated by the Managing Member from time to time.


 




    	-18-



    	 



    

  


(c)         If
any Member (the “Non-Contributing Member”) fails to timely make the Capital Contributions or the return of any
distributions pursuant to the proviso in Section 4.02(a) or the proviso in Section 4.05 (or any portions thereof)
required by Section 4.01 or 4.02(a) (other than in connection with the withdrawal of a Member or following a
decision not to proceed with the acquisition of the Initial Company Property), then one or more of the other Members that is not
an Affiliate of the Non-Contributing Member (the “Contributing Member”) may (but shall not be required to) make
such capital contribution (i.e., the Non-Contributing Member’s share, in addition to the Contributing Member’s share;
provided that if there is more than one Contributing Member who wishes to so contribute the Non-Contributing Member’s share,
such Contributing Members, in the aggregate, must contribute the entire amount of such share in proportion to their then-existing
Percentage Interests), and the Contributing Member may choose one, and only one, of the following options: (X) to make a Shortfall
Election, or, if no Shortfall Election is made, (Y) elect to dilute the Percentage Interest of the Non-Contributing Member. In
the event the Contributing Member elects to dilute the Percentage Interest of the Non-Contributing Member, the Percentage Interest
of each of the Members shall be adjusted to equal the percentage equivalent of the quotient determined by dividing (1) the
positive difference, if any, between (a) the sum of (i) 100% of the aggregate Capital Contributions (excluding Substituted
Capital Contributions (as hereinafter defined)) then or theretofore made by such Member to the Company, plus (ii) 200% of
the Substituted Capital Contributions then or theretofore made by such Member to the Company (the excess of 200% of such Member’s
Substituted Capital Contributions over such Member’s Substituted Capital Contributions is referred to herein as the “Excess
Amounts”), minus (b) the Excess Amounts attributable to the Substituted Capital Contributions then or theretofore
made by the other Member to the Company, by (2) 100% of the aggregate Capital Contributions (including without limitation
Substituted Capital Contributions) then or theretofore made by all of the Members to the Company. As used herein, the term “Substituted
Capital Contribution” shall mean an Additional Capital Contribution made by the Contributing Member equal to the amount
that the Non-Contributing Member failed to timely contribute pursuant to Section 4.02(a). An example of the operation
of such calculation is set forth on Exhibit C attached hereto. If a Contributing Member’s Percentage Interest is increased
pursuant to this Section 4.02(c), then (A) its Gross Adjusted Capital Contributions, as previously adjusted, shall,
in addition to being increased by the amount of Capital Contributions (including without limitation ordinary Capital Contributions
and Substituted Capital Contributions) made by such Member, also be increased by an amount equal to an additional 100% of the Substituted
Capital Contributions made by such Member (which increase for IRR purposes shall be treated as a Capital Contribution on the date
the related Substituted Capital Contribution is made), and the Gross Adjusted Capital Contributions of the other Member shall be
adjusted so that the ratios of the Members’ Gross Adjusted Capital Contributions immediately after such adjustment are equal
to their Percentage Interests immediately after such adjustment, and (B) to the extent determined by the Managing Member, the Capital
Account balances of the Members shall be adjusted so that the Partially Adjusted Capital Accounts immediately after such adjustment
(after taking into account all items of Profit and Loss and other items through the date of the adjustment as deemed appropriate
by the Managing Member) are equal as closely as possible to the Target Accounts at such time, after giving effect to the adjustments
to Target Accounts resulting from changes to the Percentage Interests and Gross Adjusted Capital Contributions required by this
Section 4.02(c).


 




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(d)         In
the event the Contributing Member does not elect to dilute the Percentage Interest of the Non-Contributing Member pursuant to Section
4.02(c), and instead makes the Shortfall Election pursuant to this Section 4.02(d), then any Contributing Member which
contributes its share of an Additional Capital Contribution with respect to which there is a Non-Contributing Member shall be referred
to herein as a “Shortfall Contributing Member” and the amount advanced to the Company pursuant to Section
4.01(a) and, if applicable, Section 4.01(c) (consisting of the share advanced by the Contributing Member on its own
behalf and, if applicable, the share contributed by the Contributing Member that the Non-Contributing Member failed to contribute)
shall, upon making the Shortfall Election, be referred to herein as the Shortfall Contributing Member’s “Shortfall
Advances.” The Shortfall Election shall be made by notice from the Shortfall Contributing Members to the Non-Contributing
Member within thirty (30) days of the Contribution Deadline or the date on which the Shortfall Contributing Members funded any
amount that the Non-Contributing Member failed to contribute (whichever is later), provided that no Shortfall Election shall be
effective unless all Members other than the Non-Contributing Member are Shortfall Contributing Members with respect to the Shortfall
Advances that are the subject of such Shortfall Election and all Shortfall Contributing Members make the Shortfall Election with
respect to such Shortfall Advances. The Shortfall Election shall specify whether the relevant Shortfall Advances shall be treated
as “Shortfall Capital Contributions” or as “Shortfall Loans”; provided that if two or more
Shortfall Contributing Members fail to agree on such designation, the Member making the largest Shortfall Advance that is the subject
of such Shortfall Election shall have the right to designate the treatment of all such Shortfall Advances as Shortfall Capital
Contributions or as Shortfall Loans. Shortfall Loans shall accrue interest at the rate of twenty percent (20%) per annum, compounded
monthly, until repaid in full, and all amounts remaining due thereunder (after application of Section 6.03(a)) shall be
due and payable in full two (2) years from the date such loans are made (which shall be the date of the respective Shortfall Advances)
or, if sooner, upon an event giving rise to the liquidation of the Company. Shortfall Capital Contributions shall be treated as
provided in Section 6.03(a).  Shortfall Capital Contributions shall be Additional Capital Contributions hereunder,
but shall not be Substituted Capital Contributions, and a Member’s Gross Adjusted Capital Contributions shall in no event
be increased by Shortfall Capital Contributions. A Shortfall Loan shall not be treated as a Capital Contribution or a Substituted
Capital Contribution, and a Member’s Gross Adjusted Capital Contributions shall in no event be increased by a Shortfall Loan.


 


(e)         Each
Member hereby grants to the Company, as secured party, a security interest in such Member’s Interest to secure its obligation
to contribute its Initial Capital Contributions to the Company under this Article IV, and the Company shall have all rights
available to a secured party under the Delaware Uniform Commercial Code and the laws of the state of organization of such Member.
Each Member does hereby irrevocably constitute and appoint each of the other Members, the Company and the agents, officers or employees
thereof, its true and lawful attorneys-in-fact, coupled with an interest, with full power to prepare and execute any documents,
instruments and agreements, and such financing, continuation statements, and other instruments and documents as may be appropriate
to perfect, continue and enforce such security interest in favor of the Company.


 




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(f)         Each
Member acknowledges and agrees that the other Members would not be entering into this Agreement were it not for (i) the Members
agreeing to make the Capital Contributions or Shortfall Loans provided for in Section 4.01 and this Section 4.02
and (ii) the remedy provisions set forth above in this Section 4.02. Each Member acknowledges and agrees that in the
event any Member fails to make its Capital Contributions pursuant to this Agreement, the other Members will suffer substantial
damages and the remedy provisions set forth above are fair, just and equitable in all respects. In addition to the remedies specified
herein, the Company shall be entitled to exercise its rights and remedies at law and equity against each Non-Contributing Member
which fails to make any Initial Capital Contribution (but only any Initial Capital Contribution, and excluding circumstances where
the Non-Contributing Member is withdrawing as a member) required hereunder. Notwithstanding the foregoing, in the event a Member
fails to make any Additional Capital Contributions, any Contributing Member’s remedies shall be limited to making the Shortfall
Election or electing to dilute the Percentage Interest of the Non-Contributing Member as described in Section 4.02(c), and
all other remedies at law or equity shall be precluded.


 


4.03        Capital
Accounts


 


A separate Capital Account
will be maintained for each Member in accordance with Treasury Regulation Section 1.704-1(b)(2)(iv). Consistent therewith,
the Capital Account of each Member will be determined and adjusted as follows:


 


(a)          Each
Member’s Capital Account will be credited with:


 


(i)         Any
contributions of cash made by such Member to the capital of the Company plus the fair market value of any property contributed
by such Member to the capital of the Company (net of any liabilities to which such property is subject or which are assumed by
the Company);


 


(ii)        The
Member’s distributive share of Net Profit and any items in the nature of income or gain specially allocated to such Member
pursuant to Section 6.02; and


 


(iii)        Any
other increases required by Treasury Regulation Section 1.704-1(b)(2)(iv).


 


(b)          Each
Member’s Capital Account will be debited with:


 


(i)         Any
distributions of cash made from the Company to such Member plus the fair market value of any property distributed in kind to such
Member (net of any liabilities to which such property is subject or which are assumed by such Member);


 


(ii)        The
Member’s distributive share of Net Loss and any items in the nature of expenses or losses specially allocated to such Member
pursuant to Section 6.02; and


 


(iii)        Any
other decreases required by Treasury Regulation Section 1.704-1(b)(2)(iv).


 




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(c)         The
estimated initial Capital Account balance of each Member is set forth in Schedule A, which balances have been determined
in accordance with the provisions of Treasury Regulation Section 1.704-1(b)(2)(iv)(f). Upon any adjustment to the Initial
Capital Contributions, Schedule A shall be revised as reasonably determined by GAP.


 


(d)         Capital
Accounts shall also be subject to adjustment as and to the extent provided in clause (B) of Section 4.02(c) (including the
other provisions in this Agreement that apply with reference to such clause).


 


The provisions of this Section 4.03
and any other provisions of this Agreement relating to the maintenance of Capital Accounts have been included in this Agreement
to comply with Section 704(b) of the Code and the Treasury Regulations promulgated thereunder and will be interpreted and
applied in a manner consistent with those provisions.


 


4.04       No
Further Capital Contributions


 


Except as expressly provided
in this Agreement or with the prior written consent of the Members, and subject to the provisions of this Agreement, no Member
shall be required or entitled to contribute any other or further capital to the Company, nor shall any Member be required or entitled
to loan any funds to the Company. No Member will have any obligation to restore any negative balance in its Capital Account at
any time including upon liquidation or dissolution of the Company.


 


4.05        Loans


 


Following the Effective
Date, the Managing Member shall use diligent efforts to apply for and secure for the Company or, if applicable, a Property Company,
one or more Loans at commercially reasonable rates and on commercially reasonable non-recourse terms (with, if required by a Lender,
customary carve outs, which shall be recourse only to Operating Member, SRT and/or their Affiliates who are not natural persons)
for traditional senior financing, which Loan(s) shall be secured by the Initial Company Property. The Members agree to make such
reasonable changes to this Agreement as may be requested by any current or future Lender; provided, however, that
such changes shall not alter the economic terms, or any fundamental rights of the Members, set forth herein. Operating Member and
its Affiliates who are not natural persons shall provide all recourse for customary carve outs requested in non-recourse Loans
to the extent required by the Lender (the “Recourse Obligations”); provided that, (a) GAP and SRT shall each
reimburse Operating Member and its affiliated guarantors for GAP’s and SRT’s pro rata shares (based on Percentage
Interest, provided that, if distributions have been made pursuant to Section 6.03(c), 6.03(d), 6.03(e) or
6.03(f) at the time any recourse liability arises under a guaranty, the Members’ liability for such recourse obligations,
to the extent such guaranty obligations are paid, payable or demand has been made upon such guarantor, shall be pro rata in accordance
with each Member’s then most recent distribution percentage under Section 6.03(c), 6.03(d), 6.03(e)
or 6.03(f) respectively (but only to the extent of such distributions), and (b) each Member shall be solely responsible
for recourse liability under any guaranty to the extent arising out of an act performed or omitted to be performed by such Member
or an Affiliate of such Member. Notwithstanding the foregoing, prior to Operating Member, or any Operating Member affiliated guarantor,
making any payment under a guaranty with respect to which Operating Member intends to request reimbursement (in whole or in part)
from GAP in accordance with the foregoing, and as a condition to GAP’s obligation to reimburse Operating Member or its affiliated
guarantor in accordance with the foregoing, Operating Member shall notify GAP of the claim giving rise to liability under the applicable
guaranty and shall refrain from making any payment under such guaranty until GAP has approved of such payment; provided,
however, that GAP’s approval shall not be required if GAP is required to reimburse Operating Member for such guaranty
payment under the Reimbursement Agreement.


 




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ARTICLE
V

INTERESTS IN THE COMPANY


 


5.01        Percentage
Interest


 


The Percentage Interests
of the Members may be adjusted only as set forth in this Agreement.


 


5.02        Return
of Capital


 


No Member shall be liable
for the return of the Capital Contributions (or any portion thereof) of any other Member, it being expressly understood that any
such return shall be made solely from the assets of the Company. No Member shall be entitled to withdraw or receive a return of
any part of its Capital Contributions or Capital Account, to receive interest on its Capital Contributions or Capital Account or
to receive any distributions from the Company, except as expressly provided for in this Agreement or under applicable law. No Member
shall have any obligation to restore any negative balance in its Capital Account.


 


5.03        Ownership


 


All Company Property shall
be owned by the Company or, as provided in Section 2.06, by one or more Property Companies, subject to the terms and provisions
of this Agreement. Title to Company Property shall be held by the Company in the Company’s name or, as provided in Section
2.06, by one or more Property Companies in the name of such Property Companies.


 


5.04        Waiver
of Partition; Nature of Interests in the Company


 


Except as otherwise expressly
provided for in this Agreement, and without limiting GAP’s unfettered right to sell all or any portion of the Company Property
as set forth herein, each of the Members hereby irrevocably waives any right or power that such Member might have:


 


(a)         To
cause the Company or any of its assets to be partitioned;


 




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(b)         To
cause the appointment of a receiver for all or any portion of the assets of the Company;


 


(c)         To
compel any sale of all or any portion of the assets of the Company pursuant to any applicable law; or


 


(d)         To
file a complaint, or to institute any proceeding at law or in equity, to cause the termination, dissolution or liquidation of the
Company.


 


Each of the Members has been induced to enter
into this Agreement in reliance upon the waivers set forth in this Section 5.04, and without such waivers no Member
would have entered into this Agreement. No Member shall have any interest in any specific Company Property. The interests of all
Members in this Company are personal property.


 


ARTICLE
VI

ALLOCATIONS AND DISTRIBUTIONS


 


6.01        Allocations


 


For each taxable year or
portion thereof, Net Profit and Net Loss shall be allocated (after all allocations pursuant to Section 6.02 have been
made) as follows:


 


(a)         Net
Loss shall be allocated among the Members so as to reduce, proportionately, the differences between their respective Partially
Adjusted Capital Accounts (as decreased by such allocation) and Target Accounts for such year; provided, however,
that no portion of the Net Loss for any taxable year shall be allocated to a Member whose Target Account is greater than or equal
to its Partially Adjusted Capital Account for such taxable year.


 


(b)         Net
Profit shall be allocated among the Members so as to reduce, proportionately, the differences between their respective Target Accounts
and Partially Adjusted Capital Accounts (as increased by such allocation) for such year; provided, however, that
no portion of the Net Profit for any taxable year shall be allocated to a Member whose Target Account is less than or equal to
his Partially Adjusted Capital Account for such taxable year.


 


6.02        Allocations
and Compliance with Section 704(b)


 


The following special allocations
shall, except as otherwise provided, be made in the following order:


 


(a)         If
there is a net decrease in Company Minimum Gain or in any Member Minimum Gain during any taxable year or other period, prior to
any other allocation pursuant hereto, such Member shall be specially allocated items of income and gain for such year (and, if
necessary, subsequent years) in an amount and manner required by Treasury Regulation Sections 1.704-2(f) or 1.704-2(i)(4).
The items to be so allocated shall be determined in accordance with Treasury Regulation Section 1.704-2.


 




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(b)         Nonrecourse
Deductions for any taxable year or other period shall be allocated (as nearly as possible) under Treasury Regulation Section 1.704-2
to the Members, pro rata, in proportion to their respective Percentage Interests.


 


(c)         Any
Member Nonrecourse Deductions for any taxable year or other period shall be allocated to the Member that made or guaranteed or
is otherwise liable with respect to the loan to which such Member Nonrecourse Deductions are attributable in accordance with principles
under Treasury Regulation Section 1.704-2(i).


 


(d)         Any
Member who unexpectedly receives an adjustment, allocation or distribution described in Treasury Regulation Section 1.704-1(b)(2)(ii)(d)(4),
(5) or (6) which causes or increases an Adjusted Capital Account Deficit with respect to such Member shall be allocated
items of Profit sufficient to eliminate such increase or negative balance caused thereby, as quickly as possible, to the extent
required by such Treasury Regulation.


 


(e)          No
allocation of loss or deduction shall be made to any Member if, as a result of such allocation, such Member would have an Adjusted
Capital Account Deficit. Any such disallowed allocation shall be made to the Members entitled to receive such allocation under
Treasury Regulation Section 1.704-1(b)(2)(iv) in proportion to their respective Percentage Interests. If losses or deductions
are reallocated under this Section 6.02(e), subsequent allocations of income and losses (and items thereof) shall be made
so that, to the extent possible, the net amount allocated under this Section 6.02(e) equals the amount that would have
been allocated to each Member if no reallocation had occurred under this Section 6.02(e).


 


(f)          For
purposes of Section 752 of the Code and the Treasury Regulations thereunder, excess nonrecourse liabilities (within the meaning
of Treasury Regulations Section 1.752-3(a)(3)) shall be allocated to the Members pro rata in proportion to their respective
Percentage Interests.


 


(g)         The
allocations contained in Sections 6.02(a), 6.02(c), 6.02(d) and 6.02(e) (the ”Regulatory
Allocations”) are intended to comply with certain requirements of Treasury Regulation Sections 1.704-1 and 1.704-2.
The Regulatory Allocations shall be taken into account in allocating Profits, Losses, Net Profit and Net Loss and other items of
income, gain, loss and deduction among the Members so that to the extent possible, the aggregate of (i) the allocations made to
each Member under this Agreement other than the Regulatory Allocations and (ii) the Regulatory Allocations made to each Member
shall equal the net amount that would have been allocated to each Member had the Regulatory Allocations not occurred as necessary
to effect the intent of Section 6.05. The Managing Member shall take account of the fact that certain of the Regulatory
Allocations will occur at a period in the future for purposes of applying this Section 6.02(g).


 


(h)         Interest
on Shortfall Loans shall be treated as interest under the Code. Items of Profit shall be allocated to Shortfall Contributing Members
to the extent of the accrued return on Shortfall Capital Contributions provided in Section 6.03(a).


 




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6.03        Distributions
and Payments


 


Except as provided in Sections 6.04
and 6.05, the Company shall, as soon as reasonably practical (but no less often than quarterly, if appropriate), make distributions
(or, in the case of Shortfall Loans, payments) of Net Cash Flow to the Members in the following manner and order of priority:


 


(a)         First,
to Shortfall Contributing Members (i) for the repayment of and in proportion to any amounts outstanding under Shortfall Loans (principal
and interest), and then (ii) pro rata (based upon the relative aggregate amounts then distributable under this Section 6.03(a)(ii))
until each of the Shortfall Contributing Members has received aggregate distributions of Net Cash Flow pursuant to this Section 6.03(a)(ii)
in an amount necessary to provide each such Shortfall Contributing Member with a twenty percent (20%) IRR with respect to all of
its Shortfall Capital Contributions. The parties agree that distributions under this Section 6.03(a) with respect to Shortfall
Loans or Shortfall Capital Contributions will be applied first to the interest on Shortfall Loans or to the return on Shortfall
Capital Contributions, respectively, to the extent accrued as of the date of distribution, and then to the return of principal
on such Shortfall Loans or to the return of such Shortfall Capital Contributions, respectively. The parties further agree that
the interest on Shortfall Loans and the return on Shortfall Capital Contributions represents a commercially reasonable rate of
return on such Shortfall Loans and Shortfall Capital Contributions, respectively;


 


(b)         Second,
to the Members, pro rata, in proportion to the amounts required to be distributed pursuant to this Section 6.03(b),
until such time as each of the Members has received aggregated distributions pursuant to this Section 6.03(b) in an amount
equal to its Gross Adjusted Capital Contributions;


 


(c)         Third,
to the Members, pro rata, in proportion to their respective Percentage Interests until such time as GAP has received aggregate
distributions pursuant to Section 6.03(b) and this Section 6.03(c) in an amount necessary to provide a twelve
percent (12%) IRR to GAP with respect to its Gross Adjusted Capital Contributions;


 


(d)         Fourth,
(i) five percent (5%) to Operating Member, (ii) five percent (5%) to SRT and (iii) the balance to Operating Member, SRT and GAP
pro rata in proportion to their respective Percentage Interests, until such time as GAP has received aggregate distributions
pursuant to Section 6.03(b), Section 6.03(c) and this Section 6.03(d) in an amount necessary to provide
to GAP the greater of (x) a seventeen percent (17%) IRR with respect to its Gross Adjusted Capital Contributions and (y) a 1.5x
Equity Multiple;


 


(e)         Fifth,
(i) five percent (5%) to Operating Member, (ii) twelve and one-half percent (12.5%) to SRT and (iii) the balance to the Members,
pro rata, in proportion to their respective Percentage Interests, until such time as GAP has received aggregate distributions
pursuant to Section 6.03(b), Section 6.03(c), Section 6.03(d) and this Section 6.03(e) in an amount
necessary to provide to GAP the greater of (x) a twenty-two percent (22%) IRR with respect to its Gross Adjusted Capital Contributions
and (y) a 1.75x Equity Multiple; and


 




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(f)         Sixth,
(i) five percent (5%) to Operating Member, (ii) twenty percent (20%) to SRT and (iii) the balance to the Members, pro rata,
in proportion to their respective Percentage Interests.


 


6.04        Special
Payments and Distributions


 


(a)         (i)
From and after the time (A) Operating Member shall have been removed as Managing Member for cause, (B) Operating Member failed
to return any distributions pursuant to the provisos in Section 4.02(a) or Section 4.05 and GAP has returned such
distributions or (C) Operating Member or its Affiliate shall have been removed as Property Manager under the Property Management
Agreement “for cause”, and (ii) provided that at such time (A) SRT has not failed to return any distributions pursuant
to the provisos in Section 4.02(a) or Section 4.05 and (B) an SRT Material Breach has not occurred, Net Cash Flow
shall not be distributed as provided in Section 6.03 but rather pursuant to this Section 6.04(a), and,
except as provided in Section 6.05, the Company shall, as soon as reasonably practical (but no less often than quarterly,
if appropriate), make payments or distributions, as applicable, of Net Cash Flow to the Members in the following manner and order
of priority:


 


(i)         First,
as provided in Section 6.03(a);


 


(ii)        Second,
to GAP and SRT pro rata, in proportion to their respective losses, claims, damages or liabilities arising out of or in connection
with the applicable “for cause” event(s), until GAP and SRT have received distributions under this Section 6.04(a)(ii)
in amounts necessary to compensate GAP and SRT for any losses, claims, damages or liabilities arising out of or in connection with
the applicable “for cause” event(s); and


 


(iii)       Thereafter,
in accordance with Sections 6.03(b) through (f); provided, that any amounts that would have been distributed to Operating
Member in excess of its pro rata share in proportion to its Percentage Interest shall be distributed to the Members in proportion
to their Percentage Interests.


 


(b)          (i)
From and after the time (A) SRT has failed to return any distributions pursuant to the provisos in Section 4.02(a) or Section
4.05 or (B) an SRT Material Breach has occurred and provided (ii) (A) Operating Member has not been removed as Managing Member
for cause, (B) Operating Member has not failed to return any distributions pursuant to the provisos in Section 4.02(a) or
Section 4.05 and (C) Operating Member or its Affiliate has not been removed as Property Manager under the Property Management
Agreement “for cause,” Net Cash Flow shall not be distributed as provided in Section 6.03 but rather pursuant
to this Section 6.04(b), and, except as provided in Section 6.05, the Company shall, as soon as reasonably
practical (but no less often than quarterly, if appropriate), make payments or distributions, as applicable, of Net Cash Flow to
the Members in the following manner and order of priority:


 


(i)         First,
as provided in Section 6.03(a);


 




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(ii)        Second,
to GAP until GAP has received distributions under this Section 6.04(b)(ii) in an amount necessary to compensate GAP for
any losses, claims, damages or liabilities arising out of or in connection with any SRT Material Breach; and


 


(iii)        Thereafter,
in accordance with Sections 6.03(b) through (f); provided, that any amounts that would have been distributed to SRT
in excess of its pro rata share in proportion to its Percentage Interest shall be distributed to the Members in proportion
to their Percentage Interests.


 


(c)         (i)
From and after the time (A) Operating Member shall have been removed as Managing Member for cause, (B) Operating Member failed
to return any distributions pursuant to the provisos in Section 4.02(a) or Section 4.05 and GAP has returned such
distributions or (C) Operating Member or its Affiliate shall have been removed as Property Manager under the Property Management
Agreement “for cause”, and (ii) provided that at such time (A) SRT has failed to return any distributions pursuant
to the provisos in Section 4.02(a) or Section 4.05 or (B) an SRT Material Breach has occurred, Net Cash Flow shall
not be distributed as provided in Section 6.03 but rather pursuant to this Section 6.04(c), and, except
as provided in Section 6.05, the Company shall, as soon as reasonably practical (but no less often than quarterly,
if appropriate), make payments or distributions, as applicable, of Net Cash Flow to the Members in the following manner and order
of priority:


 


(i)         First,
as provided in Section 6.03(a);


 


(ii)        Second,
to GAP until GAP has received distributions under this Section 6.04(c)(ii) in an amount necessary to compensate GAP for
any losses, claims, damages or liabilities arising out of or in connection with the applicable “for cause” event(s)
or SRT Material Breach; and


 


(iii)        Thereafter,
to the Members in proportion to their Percentage Interests.


 


Upon this Section 6.04
becoming effective, Capital Accounts of the Members shall be adjusted as, and to the extent, specified in clause (B) of Section
4.02(c).


 


6.05        Distributions
in Liquidation


 


Upon the dissolution and
winding-up of the Company, the proceeds of sale and other assets of the Company distributable to the Members under Section 11.02(c)(iii)
shall be distributed, not later than the latest time specified for such distributions pursuant to Treasury Regulation Section 1.704-1(b)(2)(ii)(b)(2)
to the Members in the manner specified in Section 6.03 or Section 6.04 (whichever is applicable at the time of such
distribution). It is the intent that such distributions be in proportion to the positive balances in the Members’ Capital
Accounts immediately prior to such distributions, and Net Profits, Net Loss and, if necessary, other items of income, gain, loss
or deduction for the year of such distribution (and, if prior to the filing of the tax return for the Company and permitted by
the Code, the prior taxable year) shall be allocated among the Members so as to cause such Capital Account balances to equal the
amounts so distributable. With the approval of GAP, a pro rata portion of the distributions that would otherwise be made
to the Members under the preceding sentence may be distributed to a trust reasonably established, for a reasonable period of time,
for the benefit of the Members for the purposes of liquidating Company Property, collecting amounts owed to the Company, and paying
any contingent or unforeseen liabilities or obligations of the Company arising out of or in connection with the Company. The assets
of any trust established under this Section 6.05 will be distributed to the Members from time to time by the trustee
of the trust upon approval of GAP in the same proportions as the amount distributed to the trust by the Company would otherwise
have been distributed to the Members under this Agreement.


 




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6.06        Tax
Matters


 


The Members intend for
the Company to be treated as a partnership for federal income tax purposes. The Managing Member shall make all applicable elections,
determinations and other decisions under the Code and applicable Treasury Regulations, including, without limitation, the deductibility
of a particular item of expense and the positions to be taken on the Company’s tax return following GAP’s approval
of such elections, determinations and other decisions, and any settlement or compromise of audit matters raised by the Internal
Revenue Service affecting the Members generally shall be subject to GAP’s prior written consent. The Members shall each take
reporting positions on their respective federal, state and local income tax returns consistent with the positions for the Company
approved by GAP. Managing Member shall cause all federal, state and local income and other tax returns to be timely filed by the
Company and shall, after receiving GAP’s approval of such returns, be authorized to execute such returns (provided that Managing
Member shall, for so long as it diligently performs its obligations hereunder, not be responsible for the delays of any other Member
or reputable accountants or auditors retained by Managing Member or at the request of GAP on behalf of the Company).


 


6.07        Tax
Matters Partner


 


GAP shall be the tax matters
partner within the meaning of Section 6231(a)(7) of the Code and, subject to Section 6.06, shall exercise all
rights, obligations and duties of a tax matters partner under the Code; provided, however, that the other Members
shall be kept informed of, and given an opportunity to participate in a non-binding manner in, all such matters which the tax matters
partner deems to be material; provided, however, that if a tax settlement would have a disproportionate material
adverse impact on one of the other Members, such Member shall be given a reasonable period of time to approve the proposed settlement,
which approval shall not be unreasonably withheld, conditioned or delayed.


 


6.08        Allocations
for Income Tax Purposes


 


(a)         Except
as provided in Section 6.08(b) or otherwise as required under Section 704(b) of the Code and the related Treasury Regulations,
each item of income, gain, loss or deduction of the Company for federal income tax purposes shall be allocated to the Members in
the same manner that the corresponding item of Net Profit, Net Loss or other item of income, gain, loss or deduction that affect
the Capital Accounts of the Members was allocated pursuant to Sections 6.01 and 6.02.


 




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(b)         In
accordance with Section 704(c) of the Code and the applicable Treasury Regulations thereunder, income, gain, loss, deduction
and tax depreciation with respect to any property contributed to the capital of the Company, or with respect to any property which
has a Book Basis different than its adjusted tax basis, shall, solely for federal income tax purposes, be allocated among the Members
so as to take into account any variation between the adjusted tax basis of such property to the Company and the Book Basis of such
property. Any elections, accounting conventions or other decisions relating to such allocations shall be made by GAP in a manner
that complies with Code Sections 704(b) and 704(c) and the Treasury Regulations thereunder. For such allocations, GAP may
select any method permitted in the Treasury Regulations under Code Section 704(c) with respect to such allocations, including
the “traditional method”, the “traditional method with curative allocations” and the “remedial allocation
method”.


 


All amounts required to
be withheld pursuant to Section 1446 of the Code or any other provision of federal, state, or local tax law shall be treated as
amounts actually distributed to the Members for all purposes under this Agreement. If the Managing Member determines that the Company
has insufficient liquid assets to satisfy such withholding obligation, the Member as to which withholding applies shall contribute
cash to the Company in an amount sufficient to satisfy such withholding obligation (which amounts shall not be treated as Capital
Contributions and the related payment of tax shall not be treated as a distribution).


 


ARTICLE
VII

MANAGEMENT


 


7.01        Management


 


(a)         Except
to the extent provided elsewhere in this Agreement, the Managing Member shall manage and conduct the operations and affairs of
the Company and make all decisions regarding the Company and its business and assets. The Managing Member shall have all the rights
and powers of a manager as provided in the Delaware Act and as otherwise provided by law. In dealing with the Managing Member acting
on behalf of the Company, no person other than the Property Manager shall be required to inquire into the authority of the Managing
Member to bind the Company. Persons dealing with the Company (other than the Property Manager) are entitled to rely conclusively
on the power and authority of the Managing Member as set forth in this Agreement.


 


(b)         All
decisions made with respect to the management and control of the Company and approved pursuant to the terms of this Agreement shall
be binding on the Company and all Members. The Managing Member may elect officers of the Company to implement the decisions (including
without limitation executing documents) of the Managing Member or the Members, as applicable, from time to time. Without limiting
the generality of the foregoing, except as otherwise expressly provided in Section 7.01(c) or as provided for in any
Budget or Operating Plan, without the prior written consent of Majority Members in each instance, the Managing Member shall not
allow the Company take the following actions (a “Major Decision”):


 




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(i)         The
execution and delivery of any agreement or instrument to purchase the Initial Company Property and the taking of any action required
or permitted to be taken thereunder (including, without limitation, all action necessary to close the purchase of the Initial Company
Property and an election as to whether or not to purchase same) or any waiver under, amendment of or assignment (in whole or in
part) of any such agreement and the taking of any action required or permitted to be taken thereunder or entering into any agreements
with any governmental agency, any neighboring or adjacent property owner, any community organizations or any other third parties,
or sending any correspondence to or having any other material communications with, any governmental agency which directly binds
the Company or advocates a position on behalf of the Company;


 


(ii)        Any
financing, refinancing or securitization of any Company Property (including, without limitation, a Loan) and the use of any proceeds
thereof, including, without limitation, interim and permanent financing, and any other financing or refinancing of the operations
of the Company and the execution and delivery of any documents, agreements or instruments evidencing, securing or relating to any
such financing;


 


(iii)        Any
material decision with respect to any environmental matters affecting the Company Property;


 


(iv)       (A) Any
sale, assignment, transfer or other disposition of Company Property or any part thereof, including any delegated authority under
the Property Management Agreement or any activity which generates revenues; or (B) any improvement, rehabilitation, alteration,
repair, or completion of construction of any Company Property (other than in the case of an emergency, where such action is required
prior to obtaining consent, and the aggregate cost of such action is less than $25,000) that vary materially from the ranges and
guidelines in the Budget or Operating Plan (for purposes of this Section 7.01(b)(iv), such a material variance shall
be (I) an amount that is not within the ranges established in the Operating Plan or is in excess of the amount set forth in the
Budget for such expenditure or line item by more than $10,000 (in addition to individual expenditures and obligations, such test
shall be applied to aggregate expenditures and obligations made on a monthly basis as well); provided, however, that
any tenant improvement contemplated by any approved lease or lease not requiring approval hereunder shall not be deemed a violation
of this Section 7.01(b)(iv) or (II) terms that materially conflict with the other guidelines in the Operating Plan regarding
such transactions); or (C) taking any action relating thereto which burdens or encumbers Company Property, and (D) any activity
which generates revenues, or which is otherwise on terms, that, vary materially from the ranges and guidelines in the Budget or
Operating Plan;


 


(v)        Any
lease of any space within the Company Property, or any amendment or modification thereto or any termination thereof, other than
any lease, amendment or modification thereto of less than 5,000 square feet of space within the Company Property which is consistent
with the Operating Plan. For purposes of this Section 7.01(b)(v) only, Majority Members’ failure to approve any such
lease, amendment, modification or termination within three (3) Business Days of receipt shall be deemed disapproval thereof;


 




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(vi)        The
making of any recurring operating expenditure or incurring of any recurring operating obligation by or on behalf of the Company
that varies materially from the Budget or entering into (or amending or modifying) of any agreement which was not specifically
included or provided in the Budget or under the Operating Plan, or otherwise approved by the Majority Members (for purposes of
this Section 7.01(a)(vi), such a material variance shall be (A) expenditures or obligations involving an amount that
is in excess of the amount set forth on a monthly basis or on an annual basis in the Budget for such expenditure on a line item
basis by more than $10,000 for such period, (B) expenditures or obligations involving the incurrence of an expenditure or obligation
for any transaction or any series of related transactions when taken with all prior expenditures or obligations during the particular
quarter or fiscal year related thereto exceeds the maximum expenditure amount provided in the Budget or the Operating Plan for
such particular transaction or series of transactions for such period by $10,000, or (C) in the case of any material service, maintenance
or similar agreement proposed to be entered into, such agreement is not terminable (without penalty) by the Company on thirty (30)
calendar days or less written notice to the other party; provided, however, that expenditures made or obligations
incurred or agreements entered into pursuant to, or which are specifically included in or provided under, the Budget or Operating
Plan or otherwise previously approved by Majority Members shall not be Major Decisions to the extent they do not vary (other than
immaterial variances) from the Budget and Operating Plan); provided, further, that expenditures made in connection
with snow removal costs at the Properties under approved agreements shall not be a Major Decision;


 


(vii)       The
establishment of reasonable reserves, determination of the amount of available Net Cash Flow and making of distributions to Members
(subject to the requirements of Sections 6.03 and 6.04);


 


(viii)      The
institution of any legal proceedings in the name of the Company, settlement of any legal proceedings against the Company if the
settlement amount exceeds $50,000 in any single instance or $100,000 in the aggregate, and confession of any judgment against the
Company or any property of the Company other than the institution of any eviction, suits for breach of tenant leases, or similar
proceedings provided for in the Operating Plan;


 


(ix)        (A)
Pursuing any pre-development activities for any horizontal or vertical construction to the extent that such pursuit would cause
the Company to incur expenditures in excess of those provided by the Budget or under the Operating Plan, or (B) commencing any
horizontal or vertical construction on any Company Property;


 


(x)         The
possession or pledge of any Company Property for other than Company purposes (which shall require the consent of all Members);


 




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(xi)         Notwithstanding
any other provisions of this Agreement, the entering into any third party contract with an aggregate cost to the Company in excess
of $25,000 (“Contract Approval Threshold”).


 


(xii)        The
entering into any contracts below the Contract Approval Threshold to the extent that in connection with any such contracts (a)
funds are not explicitly provided for in the Budget and/or Operating Plan, as applicable, or (b) the existence of which is not
contemplated, in the Budget and/or Operating Plan, as applicable;


 


(xiii)       Entering
into, or amending, or modifying or terminating any agreement with any manager, asset manager, leasing agent, listing agent, contractor,
or sales or placement agent or broker not expressly permitted hereunder for the management, asset management, construction, leasing,
disposition, financing or refinancing of any Company Property;


 


(xiv)      Any
other material matter pertaining to the Company’s business that is designated to be a “Major Decision” hereunder;


 


(xv)       Any
election or approval under the Purchase Agreement which the Company may exercise under same;


 


(xvi)      make
any loans that are not provided for in the Budget or Operating Plan. For purposes of clarity, “loans” as used in this
subparagraph (xvi) shall not include tenant workouts that permit a tenant to repay amounts owed to pursuant to a note;


 


(xvii)     amend
this Agreement (provided that all Members hereby agree to make such amendments as may be reasonably requested from time to time
by any lender, if any, to the Company, to the extent the same have been approved by GAP);


 


(xviii)    acquire
any additional real property, or direct or indirect interest in any additional real property, other than the Initial Company Property
unless provided by the Budget or Operating Plan;


 


(xix)       cause
the Company to make any distribution of Company property in kind to any Member;


 


(xx)        change
the nature of the business conducted by the Company or its purposes as described in Section 2.05;


 


(xxi)       (A)
file any voluntary petition in bankruptcy on behalf of the Company or any subsidiary of the Company (each, an “SPE”),
(B) consent to or file any involuntary petition in bankruptcy against the Company or any SPE, (C) the making by the Company or
any SPE of an assignment for the benefit of creditors, or (D) consent to or initiate, or cause or permit any SPE to consent to
or initiate the appointment of a receiver of any Company Property or the property of any SPE;


 




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(xxii)      cause
the Company or any SPE to take any action (A) with the intent to hinder, delay or interfere with the exercise by an administrative
agent or any Lender of any rights and remedies under the applicable Loan Documents, or (B) to contest or in any way interfere,
directly or indirectly, with any foreclosure of any document securing a Loan or with any other enforcement of an administrative
agent’s or any Lender’s rights, powers or remedies under any Loan Documents (whether by making any motion, seeking
any extension, asserting any defense, claim, counterclaim or right of offset, seeking any injunction or other restraint, commencing
any action, seeking to consolidate any such foreclosure or other enforcement with any other action, or otherwise);


 


(xxiii)     sell,
transfer or otherwise dispose of the Initial Company Property;


 


(xxiv)    enter
into, amend or consummate any transaction or arrangement with any Member or any Affiliate of any Member, all of which shall (with
the exception of the transactions described in Section 9.06 which shall not require such approval) require the approval
of the non-interested Member(s) notwithstanding anything contained herein to the contrary;


 


(xxv)     Intentionally
omitted;


 


(xxvi)    approve
any Budget and Operating Plan, and any material amendments or modifications thereto (which shall only be permitted in accordance
with this Agreement).


 


(c)         Subject
to the terms of this Agreement, and the limitations imposed by law, the Managing Member shall have all of the same powers as, but
not the duties of, a general partner of a general partnership under the laws of the State of Delaware, including, without limitation,
the full power and authority to:


 


(i)         Acquire,
hold, operate, sell, transfer, assign, convey, exchange, lease, sublease, mortgage or otherwise dispose of or deal with all or
any part of Company Property;


 


(ii)        In
furtherance of the Company’s purposes and business, borrow money (including, without limitation, a Loan), whether on a secured
or unsecured basis, refinance, recast, modify, amend, extend, compromise or otherwise deal with any such loan, and in connection
therewith, issue evidences of indebtedness and secure the same by mortgages, deeds of trust, security agreements or other similar
documents affecting the assets of the Company;


 


(iii)        Authorize
other persons to execute and deliver such documents on behalf of the Company as the Managing Member may deem necessary or desirable
for the Company’s business, including, without limitation, guarantees and indemnities;


 


(iv)        Perform,
or cause to be performed, all of the Company’s obligations under any agreement to which the Company is a party;


 




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(v)        Enter
into contracts on behalf of the Company and make expenditures as are required to operate and manage the Company and the Company
Properties; and


 


(vi)       Do
any act which is necessary or desirable to carry out any of the purposes of the Company.


 


7.02       GAP
Consultant


 


Notwithstanding anything
to the contrary contained in this Agreement, GAP or its Affiliate may engage an external third party consultant to advise it in
connection with this Agreement or the Company Property and any fees and expenses incurred by GAP or its Affiliate in connection
therewith shall be treated as an expense of the Company and be promptly reimbursed to GAP upon request, provided, however, that
any fee paid to such consultant shall be subject to a cap of $100,000 per year. Notwithstanding any provision to the contrary in
this Agreement, the decision to retain any such external consultant shall be the sole decision of GAP and the same shall not constitute
a Major Decision and Operating Member shall have no right to approve or disapprove the Consultant or the Consultant’s engagement
agreement.


 


7.03        Duties
of managing member


 


(a)         The
Managing Member shall (i) conduct the business of the Company on a day-to-day basis in accordance with the standard of care required
of prudent and experienced third parties performing similar functions, in accordance with customary industry standards in accordance
with the Budget and the Operating Plan and such other guidelines as shall be adopted by the Company pursuant to this Agreement,
which duties may be discharged by delegating the same to Property Manager pursuant to the Property Management Agreement, (ii) retain
Property Manager, or another person or entity approved by GAP, to perform the Company Management Services for the Company, (iii) perform
the duties assigned to it hereunder, and (iv) carry out and implement all decisions and resolutions of the Members. The initial
Managing Member shall be Operating Member, which shall remain Managing Member unless Operating Member is terminated or resigns
as Managing Member pursuant to the terms of this Agreement. Operating Member, as the initial Managing Member, shall have no authority
to retire or resign from its position as the initial Managing Member; provided that Operating Member may resign as Managing Member
only if Property Manager is terminated, or if Property Manager resigns from such position in accordance with the terms of the Property
Management Agreement. In the event that Operating Member or any other Person should retire, resign or be removed as Managing Member,
the Members shall be under no obligation to appoint a replacement thereof. Subject to the limitations set forth in this Agreement,
the Managing Member, on behalf of the Company, shall have the power and authority to enter into contracts and leases on behalf
of the Company in accordance with the current Budget and Operating Plan approved in accordance with this Agreement, to make expenditures
as are required to implement such Budget and Operating Plan, but only to the extent that any such expenditures and amounts required
to be paid by the Company under such contracts, leases and other instruments and documents have either been approved in accordance
with this Agreement do not require approval in accordance with this Agreement. The Managing Member may rely on written instructions
from a representative appointed in writing by GAP from time to time that GAP has approved certain actions and agreements. Subject
to the Managing Member’s right to charge certain matters to the Company as provided in Sections 8.01 and 8.03
and without limiting any compensation or reimbursements Managing Member may be entitled to under the Property Management Agreement,
the Managing Member shall not be entitled to receive any fees or other compensation in respect of its activities as Managing Member,
and will not receive reimbursement for compensation payable to any of its employees or other direct or indirect overhead which
may be attributable to the performance of its duties as Managing Member.


 




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(b)         Notwithstanding
anything to the contrary contained in Section 7.01(b)(iii), if at the beginning of any calendar year the Budget and
Operating Plan or any item or portion thereof shall not have been approved by Majority Members, then:


 


(i)         Any
items or portions of the Budget and Operating Plan and amounts of expenses provided therein which have been so approved shall become
operative immediately and the Managing Member shall be entitled to expend funds in accordance with those operative portions;


 


(ii)        With
respect to the Budget, the Managing Member shall be entitled to, and shall, expend, in respect of noncapital, recurring expenses
in any month of the then-current calendar year, an amount equal to the budgeted amount for the corresponding month of the immediately
preceding calendar year, as set forth on the immediately preceding calendar year Budget after giving effect to any dispositions
or other material changes to Company Property during the prior or current year; provided, however, that if any contract
approved by the Managing Member or entered into pursuant to the provisions hereof or the Property Management Agreement provides
for an automatic increase in costs thereunder after the beginning of the then current calendar year, then the Managing Member shall
be entitled to expend the amount of such increase; and


 


(iii)        The
Managing Member shall be entitled to, and shall, expend funds in respect of debt service on the Company’s financing (including
the expense of curing any defaults thereunder), utilities, real estate taxes and assessments, or insurance premiums with respect
to insurance for the Company Property, regardless of whether the Budget has been approved or whether such expenditures exceed the
amounts provided for in the applicable Budget.


 


(c)         In
addition to and without limiting any other duties set forth in this Agreement, the Managing Member shall, subject to the availability
of adequate funds therefor in the Budget and from Revenues, Capital Contributions or other sources, and provided that Managing
Member may delegate such obligations to Property Manager or any other third parties with whom the Company may contract pursuant
to the terms hereof:


 


(i)         Oversee,
coordinate and process the operations, including without limitation, the management on a day-to-day basis of any and all of the
assets which comprise Company Property, and prepare all communications with the Seller and other relevant third parties;


 




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(ii)        Subject
to the availability of funds therefor, take all proper and necessary actions reasonably required to cause the Company and all third
parties at all times to perform and comply with the provisions (including, without limitation, any provisions requiring the expenditure
of funds by the Company) of any loan commitment, agreement, mortgage, lease, or other contract, instrument or agreement to which
the Company is a party or which affects any Company Property or the operation thereof;


 


(iii)        Subject
to the availability of funds therefor, pay in a timely manner all non-disputed operating expenses of the Company in accordance
with the terms of the Budget and the Operating Plan or as otherwise provided herein;


 


(iv)        To
the extent available, and subject to the availability of the funds therefor, obtain and maintain insurance coverage on Company
Properties as required by the Managing Member and pay all non-disputed taxes, assessments, charges and fees payable in connection
with the ownership, use and occupancy of the Company Properties (provided that if the Managing Member requires that the Company
maintain insurance as part of GAP’s blanket policy, the Company’s allocable share of deductibles and premiums under
the liability insurance policy shall be no greater than those under such policies previously maintained by Property Manager);


 


(v)        Deliver
to the other Members promptly upon the receipt or sending thereof, copies of all material notices, reports and communications between
the Company and any tenant, the Seller, governmental agencies, neighboring property owners, community groups and other relevant
third parties, and material notices, reports, and communications from any tenant, under any lease or any borrower under any mortgage
loan or any holder of a mortgage affecting all or any portion of any Company Property, or any of such other parties, which relates
to any existing or pending default thereunder or to any financial or operational information required by such Person;


 


(vi)        Deposit
all receipts from operations of Company Property to a separate account, or accounts, established and maintained by the Managing
Member in the name of the Company or the applicable Property Company, and not commingle those receipts with any other funds or
accounts of Managing Member;


 


(vii)       Manage
and administer the process of selling and refinancing Company Property;


 


(viii)      If
the Managing Member subcontracts with third parties or any of its Affiliates for the performance of any of the services to be performed
by the Managing Member, then the Managing Member shall supervise and oversee the performance of the services performed by such
third parties or Affiliates (in the event of any such subcontract, references in this Agreement to actions taken or to be taken
by the Managing Member shall include actions taken or to be taken by such subcontractors);


 




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(ix)        Execute
and deliver agreements, certificates and similar documents which are necessary to obtain loans, as well as manage any approved
financing or refinancing, on terms approved by the Managing Member and to acquire the Initial Company Property pursuant to the
Purchase Agreement;


 


(x)         Make
periodic inspections of the Company Property and review all maintenance, repairs and construction on the Company Property;


 


(xi)        Advise
the Company on such action as may be required to comply with any and all laws, ordinances, statutes and deed restrictions applicable
to the Company Property;


 


(xii)        Not
knowingly permit the use of the Company Property for any purpose which might impair any insurance on the Company Property or which
might render any insured loss thereunder uncollectible or which would be in violation of any applicable law;


 


(xiii)       Promptly
recommend from time to time the advisability of contesting either the validity or the amount of personal and real property taxes,
if Managing Member deems such a contest appropriate


 


(xiv)      Fully
cooperate with the Company and the Company’s representatives, including leasing agents, tax consultants, brokers involved
in the sale of all or any portion of the Company Property, any potential purchaser of all or any portion of the Company Property,
appraisers, and counsel with the view that such representatives shall be able to perform their duties efficiently and without interference.
Such parties shall be allowed to visit the Company Property and inspect the same at such times as GAP may request;


 


(xv)       Advise
the Company on such action as may be necessary to comply with any and all laws, ordinances, statutes and deed restrictions applicable
to the Company Property;


 


(xvi)      Notify
GAP of any of the following in any way relating to the Company Property promptly following Managing Member’s receipt thereof:
written notice of any claim of violation of any legal requirement other than those which can be corrected for less than $10,000
(or $150,000 if covered by insurance), and without penalty or fine within thirty (30) days of notification thereof, provided that
notice is required for any claim that names any GAP Party; written notice of any claim of liability; material written complaints
from any contractor, sub-contractor or other party involved in providing or assisting with the operation, maintenance, and repair
of the Company Property; written notice of any default under any Loan Documents secured by the Company Property; any summons or
other legal process; any material damage to the Company Property; any threatened (in writing by an applicable Governmental Authority
or its agent) condemnation or acquisition in lieu of condemnation of the Company Property or any portion thereof; and any actual
or alleged (in writing) personal injury or property damage, and promptly notify GAP of any verbal notice Managing Member receives
related to any of the foregoing, but only if Managing Member, acting reasonably and in good faith, deems the same to be material
to the ownership or operation of the Company Property. For purposes of this subsection (xvi), “material” shall mean
any claim for $10,000 or greater in any one instance, or $50,000 in the aggregate;


 




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(xvii)     Promptly
notify GAP of any material default or alleged (in writing) material default by any party under any lease of all or any portion
of the Company Property of which Managing Member is aware, as well as any other material information particular to the Company
Property;


 


(xviii)    Advise
the Company with respect to any presentations before public agencies at both public and private meetings which relate to or affect
the Company Property, and in all dealings with the press, community leaders, owners of adjacent property, and all other parties
directly or indirectly involved with the Company Property or with interests which may affect the success of the Company Property;


 


(xix)       Comply
at all times with this Agreement, including submitting to the Members for their approval any decisions or matters which may be
subject to their approval under this Agreement; and


 


(xx)        Report
to GAP with respect to Managing Member’s compliance with the foregoing duties.


 


(d)         GAP
shall have the absolute right, power and authority at any time to terminate Operating Member’s appointment as Managing Member
hereunder and to appoint a successor Managing Member, and to remove Property Manager as the manager under the Property Management
Agreement and to terminate the Property Management Agreement (and any other agreements or contracts between the Company and Affiliates
of Operating Member or Property Manager) and/or appoint a new manager pursuant thereto “for cause”, or “for lack
of performance”, or for an Event of Default. GAP’s determination of whether a “for cause” event, a “for
lack of performance” event or an Event of Default by Operating Member shall have occurred shall be conclusive and binding
on the Members unless and until Operating Member shall have obtained a final, non-appealable judgment of a court of competent jurisdiction
finding that no “for cause” event, “for lack of performance” event or Event of Default by Operating Member
has occurred. In the event that Operating Member shall have been removed as Managing Member, or in the event Property Manager is
removed as the manager under the Property Management Agreement, “for cause”, then under such circumstances and from
that time forward (i) Operating Member shall immediately cease to be Managing Member (and Property Manager shall immediately cease
to be the manager under the Property Management Agreement), (ii) Operating Member shall cease to have any right to any distributions
under Section 6.03 and from that time forward distributions to the Members shall be made under Section 6.04,
(iii) Operating Member shall forfeit its right to receive any fees under Section 7.04 and the Property Management Agreement
and (iv) Operating Member shall not have any right to vote on Major Decisions other than as provided in Section 7.01(b).
In the event that Operating Member shall have been removed as Managing Member, or in the event Property Manager is removed under
the Property Management Agreement, as a result of an Event of Default (which does not constitute “for cause”) by Operating
Member or Property Manager, or “for lack of performance”, then Operating Member shall immediately cease to be Managing
Member (and Property Manager shall immediately cease to be the manager under the Property Management Agreement), and Operating
Member shall retain its right to receive distributions hereunder pursuant to Section 6.03 (to the extent of its Interest),
but (A) Property Manager shall be terminated within ninety (90) days after such termination and shall thereafter lose its right
to receive payments under the Property Management Agreement which would otherwise have accrued from and after the expiration of
said ninety (90) day period (provided that GAP, at its election, may accelerate the termination of Property Manager to the date
of the termination of Operating Member as Managing Member for any reason other than for cause, provided that Property Manager shall
remain entitled to receive management fees and reimbursements payable, if applicable, under the Property Management Agreement through
the termination date of said Property Manager), and (B) Operating Member shall not have any right to vote on Major Decisions other
than Fundamental Decisions.


 




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(e)         Operating
Member’s appointment as Managing Member shall automatically terminate if Operating Member’s (or its permitted transferee’s)
Percentage Interest is less than one-half of one percent (0.5%).


 


7.04        Services
and Fees


 


(a)         The
Company and Property Manager shall enter into the Property Management Agreement substantially concurrently with the execution of
this Agreement. The Property Management Agreement shall provide that after the Company’s acquisition of the Initial Company
Property, and while the Company owns the Initial Company Property and Operating Member owns a Percentage Interest of at least one
half of one percent (0.5%), and provided that (i) no Event of Default by Operating Member or any of its Affiliates then exists
hereunder or under the Property Management Agreement, and (ii) Operating Member has not been removed as the Managing Member pursuant
to this Agreement, the Company shall pay Property Manager the Property Management Fee and the Construction Management Fee (each
as defined in the Property Management Agreement) and leasing commissions pursuant to the terms and conditions of the Property Management
Agreement for so long as Property Manager is performing the services required of it under the Property Management Agreement and
under any related agreements.


 


(b)         On
the first day of each month of each year during the term of this Agreement, the Company shall pay (to Operating Member (unless
Operating Member has forfeited its right to receive fees under this Section 7.04) an asset management fee equal to (i) to the weighted
average aggregate Investment Value of the Initial Company Property owned by the Company during the immediately preceding month
multiplied by (ii) 0.02083% (an example of the foregoing is attached as Schedule C). For purposes hereof, “Investment Value”
means, initially, with respect to each property included in the Initial Company Property, the appraised value of such property
as of the Closing Date; provided, the Investment Value of each property shall be (i) reduced pro rata in connection with sales
of portions of such properties and (ii) excluded upon the sale of such property.


 




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(c)         If
and only if as of the date of calculation GAP has received distributions hereunder in an amount necessary to provide GAP at least
a twelve percent (12%) IRR with respect to its Gross Adjusted Capital Contributions, then promptly following the sale of the last
Initial Company Property, the Company shall pay Operating Member the Disposition Fee.


 


(d)         Except
as set forth in this Section 7.04, any agreements with an Affiliate of any Member must be approved by the non-Affiliated
Members, and no other fees or compensation will be paid by the Company to any Member or any of its Affiliates. Neither Operating
Member nor any of its Affiliates will be entitled to any development, leasing or other fees associated with the management, development
and leasing of any of the Company Properties except as set forth in the Property Management Agreement and will not be entitled
to any reimbursement for its employees or other direct or indirect overhead, except as set forth in the Property Management Agreement
or this Agreement, or as otherwise provided by the Budget.


 


7.05        Duties
and Conflicts


 


(a)         The
Members and their respective officers, employees, the Managing Member and Affiliates shall devote such time to the Company business
as they deem to be necessary or desirable in connection with their respective duties and responsibilities hereunder. Except as
provided hereunder or as otherwise agreed to in writing by the Managing Member and all disinterested Members, no Member nor any
member, partner, shareholder, officer, director, employee, agent or representative of any Member shall receive any salary or other
remuneration for its services rendered pursuant to this Agreement.


 


(b)         Each
of the Members recognizes that each of the other Members and its members, managers partners, shareholders, officers, directors,
employees, agents, representatives, the Managing Member and Affiliates, have or may have other business interests, activities and
investments, some of which may be in conflict or competition with the business of the Company and that each of the other Members
and its members, managers, partners, shareholders, officers and directors, employees, agents, representatives, the Managing Member
and Affiliates, are entitled to carry on such other business interests, activities and investments. Except as set forth below,
each of the Members may engage in or possess an interest in any other business or venture of any kind, independently or with others,
including, without limitation, owning, financing, acquiring, leasing, promoting, developing, improving, operating, managing and
servicing real property and mortgage loans on its own behalf or on behalf of other entities with which any of the Members is affiliated
or otherwise, and each of the Members may engage in any such activities, whether or not competitive with the Company, without any
obligation to offer any interest in such activities to the Company or to the other Members. Neither the Company nor the other Members
shall have any right, by virtue of this Agreement, in or to such activities, or the income or profits derived therefrom, and the
pursuit of such activities, even if competitive with the business of the Company, shall not be deemed wrongful or improper.


 




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(c)         Notwithstanding
the foregoing, except as provided herein below, during the term of this Agreement, (i) Operating Member shall not pursue an opportunity
or enter into a transaction (whether as lender, owner, shareholder, partner, director, officer, employee, agent, consultant or
other advisor), for the financing, acquisition, ownership, entitlement, management, operation, leasing, construction, or development,
of any other property within a ten (10) mile radius of any Initial Company Property (the “Competitive Area”)
that has a use comparable to the present projected or actual use of the Initial Company Property or otherwise competes with the
Initial Company Property in any way, whether directly or indirectly, including without limitation through any of its Affiliates
or in any other manner (each, a “Competitive Opportunity”). The Members acknowledge and agree that interests
of SRT or its Affiliates with respect to the Ensenada Square Property shall not be deemed a violation of this Section 7.05(c).
If Operating Member desires to pursue a Competitive Opportunity or any Value-Add Retail Joint Venture, then GAP and its Affiliates
(including, without limitation, any affiliates of funds or accounts managed by GAP Capital Management, L.P.) (each, a “GAP
Party”), shall have a right of first offer with respect to any such Competitive Opportunity or Value-Add Retail Joint
Venture so long as such proposed acquisition or development opportunity is a permitted investment under any operating documents
and/or fund documents that the applicable GAP Party is subject to (each, a “ROFO Opportunity”). Operating Member
hereby represents and warrants that, as of the date hereof, neither it nor any Affiliate is involved in any Competitive Opportunity
or any ROFO Opportunity which has not been disclosed in writing to GAP.


 


In the event Operating
Member desires to pursue a ROFO Opportunity, Operating Member shall give GAP notice of such ROFO Opportunity, which notice shall
include the proposed terms and conditions thereof and proposed investment return thereon (in pro forma form) in sufficient detail
to permit GAP to make an informed decision as to its desire to proceed with said ROFO Opportunity on the same terms as set out
in the notice (together with such supporting information as GAP may reasonably request, “Investment Notice”).
GAP shall have thirty (30) days from the date of such notice to determine whether it desires to proceed with said ROFO Opportunity
on the same terms as set out in the Investment Notice. If GAP elects to proceed, it shall do so in a separate joint venture upon
terms and conditions similar to the terms and conditions of this Agreement but subject to said revised economic terms as set forth
in the Investment Notice or otherwise acceptable to GAP and Operating Member. If GAP gives notice within said thirty (30) day period
that it does not desire to proceed with said opportunity on the terms set forth in the Investment Notice or fails to respond to
such Investment Notice within the 30-day period, then Operating Member may proceed with said opportunity either alone, with its
Affiliates or otherwise upon terms and conditions not materially more favorable to any alternate provider of capital for such opportunity
than the terms and conditions set forth in the Investment Notice; provided, however, that in any event the opportunity is modified
to be upon terms materially more favorable to such alternate capital provider than the terms and conditions set forth in the Investment
Notice, then the provisions of this paragraph shall again be applicable and an additional Investment Notice shall be required to
be delivered by Operating Member to GAP pursuant to the terms hereof. For purposes of the preceding sentence, terms and conditions
shall be deemed materially more favorable to such alternate capital provider if the proposed return on investment of GAP would
increase by fifteen percent (15%) or more over that which would be received under the terms set forth in the Investment Notice.
By way of example, if the pro forma included with the Investment Notice indicated a projected return on investment of twenty percent
(20%) to GAP and GAP declined to proceed with the proposed investment, Operating Member would be obligated to again offer the proposed
investment to GAP if the proposed terms and conditions were modified so that the projected return on investment was equal to or
greater than twenty-three percent (23%). If Operating Member has complied with the conditions set forth above, Operating Member
shall have no further obligation to offer the proposed investment to GAP once proposed terms have been accepted by such alternative
capital provider as evidenced by a term sheet signed by Operating Member of its Affiliates, on the one hand, and such alternate
capital provider, on the other hand.


 




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Notwithstanding the foregoing,
GAP, for itself and each GAP Party, acknowledges Operating Member’s obligation to provide investment opportunities to SRT
and agrees that the foregoing obligation of Operating Member to provide ROFO Opportunities to GAP shall be subject and subordinate
to Operating Member’s existing obligations to SRT.


 


If GAP, or any GAP Party,
elects to pursue a ROFO Opportunity, then any agreement entered into between Operating Member and GAP, or the applicable GAP Party,
shall (i) be cross defaulted with this Agreement, such that a for cause event resulting in the removal of Operating Member as Property
Manager, Managing Member or the like under this Agreement shall result in the same under the other agreement and vice versa, and
(ii) provide that Operating Member must contribute not less than ten percent (10%) toward the total capitalization of the ROFO
Opportunity. Notwithstanding the foregoing, should SRT participate in a ROFO Opportunity at a level not less than fifteen percent
(15%), then Operating Member shall be required to contribute not less than five percent (5%) to such ROFO Opportunity.


 


The terms of this Section
7.05(c) shall expire, and Operating Member shall have no further obligation to provide GAP or any GAP Party any ROFO Opportunity
following the earliest to occur of (i) the third anniversary of the Effective Date, (ii) the first anniversary of the Effective
Date if Operating Member and GAP, or a GAP Party, have not entered into an agreement to pursue any ROFO Opportunity or (iii) the
date on which GAP (which for purposes hereof includes each GAP Party) has rejected three (3) ROFO Opportunities which satisfy GAP’s
investment criteria.


 


(d)         SRT
hereby represents and warrants that, except as disclosed to GAP in writing, as of the date hereof, neither SRT nor any of its Affiliates
has an interest in any property within a ten (10) mile radius of any Initial Company Property that has a use comparable to the
present projected or actual use of the Initial Company Property or otherwise competes with the Initial Company Property in any
way, whether directly or indirectly. The Members acknowledge and agree that interests of SRT or its Affiliates with respect to
the Ensenada Square Property shall not be deemed a violation of this Section 7.05(d).


 




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If SRT desires to pursue
(i) any joint venture involving any real estate assets owned by SRT as of the date hereof or (ii) any Value-Add Retail Joint Ventures
(each, an “SRT Opportunity”), then GAP and the GAP Parties shall have a right of first offer with respect to
any such SRT Opportunity. In furtherance thereof, SRT shall give GAP notice of such SRT Opportunity, which notice shall include
the proposed terms and conditions thereof and proposed investment return thereon (in pro forma form) in sufficient detail to permit
GAP to make an informed decision as to its desire to proceed with said SRT Opportunity on the same terms as set out in the notice
(together with such supporting information as GAP may reasonably request, “SRT Investment Notice”). GAP shall
have thirty (30) days from the date of such notice to determine whether it desires to proceed with said SRT Opportunity on the
same terms as set out in the SRT Investment Notice. If GAP elects to proceed, it shall do so in a separate joint venture upon terms
and conditions similar to the terms and conditions of this Agreement but subject to said revised economic terms as set forth in
the Investment Notice or otherwise acceptable to GAP and SRT. If GAP gives notice within said thirty (30) day period that it does
not desire to proceed with said opportunity on the terms set forth in the SRT Investment Notice or fails to respond to such SRT
Investment Notice within the 30-day period, then SRT may proceed with said opportunity either alone, with its Affiliates or otherwise
upon terms and conditions not materially more favorable to any alternate provider of capital for such opportunity than the terms
and conditions set forth in the SRT Investment Notice; provided, however, that in any event the opportunity is modified to be upon
terms materially more favorable to such alternate capital provider than the terms and conditions set forth in the SRT Investment
Notice, then the provisions of this paragraph shall again be applicable and an additional SRT Investment Notice shall be required
to be delivered by SRT to GAP pursuant to the terms hereof. For purposes of the preceding sentence, terms and conditions shall
be deemed materially more favorable to such alternate capital provider if the proposed return on investment of GAP increases by
twenty percent (20%) or more over that which would be received under the terms set forth in the SRT Investment Notice. By way of
example, if the pro forma included with the SRT Investment Notice indicated a projected return on investment of twenty percent
(20%) to GAP and GAP declined to proceed with the proposed investment, SRT would be obligated to again offer the proposed investment
to GAP if the proposed terms and conditions were modified so that the projected return on investment was equal to or greater than
twenty-four percent (24%). If SRT has complied with the conditions set forth above, SRT shall have no further obligation to offer
the proposed investment to GAP once proposed terms have been accepted by such alternative capital provider as evidenced by a term
sheet signed by SRT of its Affiliates, on the one hand, and such alternate capital provider, on the other hand.


 


If GAP, or any GAP Party,
elects to pursue an SRT Opportunity, then any agreement entered into between SRT and GAP, or the applicable GAP Party, shall (i)
be cross defaulted with this Agreement as to rights to remove Managing Member for its gross negligence, fraud, bad faith or willful
misconduct, or any other act that triggers recourse liability under any Loans and (ii) provide that SRT must contribute not less
than fifteen percent (15%) (in cash or real estate or a combination thereof) toward the total capitalization of the SRT Opportunity.


 




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The terms of this Section
7.05(c) shall expire, and SRT shall have no further obligation to provide GAP or any GAP Party any SRT Opportunity following
the earliest to occur of (i) the third anniversary of the Effective Date, (ii) the first anniversary of the Effective Date if SRT
and GAP, or a GAP Party, have not entered into an agreement to pursue any SRT Opportunity or (iii) the date on which GAP (which
for purposes hereof includes each GAP Party) has rejected three (3) SRT Opportunities which satisfy GAP’s investment criteria.


 


7.06       Company
Expenses


 


Except as otherwise provided
in this Agreement or the Property Management Agreement, except for the costs of preparing the reports specifically called for by
the terms hereof and the Budget and the Operating Plan, which shall be the cost of Managing Member (provided that cost of materials
and reasonable third party costs shall be at the Company’s expense), except for costs which are to be borne by Property Manager
pursuant to the terms of the Property Management Agreement, and except for any costs to be borne by any third party under any agreement
with the Company, the Company shall be responsible for paying, and shall pay, all direct costs and expenses related to the business
of the Company and of acquiring, holding, owning, developing, servicing, collecting upon and operating Company Property. Subject
to the preceding sentence, all fees and expenses payable under Section 7.04, costs and expenses relating to any employees,
staff or other personnel approved by the Managing Member to provide day-to-day operations and financial reporting to oversee the
operations of Company Property, costs of financing, fees and disbursements of attorneys, financial advisors, accountants, appraisers,
brokers and engineers, travel expenses, and all other fees, costs and expenses directly attributable to the business and operations
of the Company shall be borne by the Company. In the event any such costs and expenses are or have been paid by any Member, such
Member shall be entitled to be reimbursed for such payment so long as such payment is reasonably necessary for Company business
or operations and has been approved by the Managing Member or is expressly authorized in this Agreement or the appropriate Budget
or Operating Plan (including any permitted variance hereunder). Notwithstanding the foregoing, and without affecting any contrary
terms (if any) in the Property Management Agreement, in no event shall the Company have any obligation to pay or reimburse any
Member for any general overhead expense of such Member.


 


ARTICLE
VIII

BOOKS AND RECORDS


 


8.01        Books
and Records


 


Managing Member shall maintain,
or cause to be maintained, at the expense of the Company, in a manner customary and consistent with good accounting principles,
practices and procedures, a comprehensive system of office records, books and accounts (which records, books and accounts shall
be and remain the property of the Company) in which shall be entered fully and accurately each and every financial transaction
with respect to the ownership and operation of Company Property. Bills, receipts and vouchers shall be maintained on file by Managing
Member. Managing Member shall cause audits to be performed and audited statements and income tax returns to be prepared as required
by Section 8.03 (provided that Managing Member shall, for so long as it diligently performs its obligations hereunder,
not be responsible for the delays of any other non-Affiliated Member or reputable accountants or auditors retained by Managing
Member or at the request of GAP on behalf of the Company). Such books and records of account shall be prepared and maintained by
Managing Member at the principal place of business of Managing Member. Each Member or its duly authorized representative shall
have the right to inspect, examine and copy such books and records of account at the Company’s office during reasonable business
hours. GAP shall have the right from time to time to audit the books and records of the Company, at GAP’s expense.


 




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8.02        Accounting
and Fiscal Year


 


The books of the Company
shall be kept on the accrual basis in accordance with GAAP and on a tax basis and the Company shall report its operations for tax
purposes on the accrual method. The fiscal year and tax year of the Company shall end on December 31 of each year, unless a different
tax year shall be required by the Code.


 


8.03        Reports


 


(a)         The
Managing Member will prepare, or cause to be prepared, at the expense of the Company, and furnish to each Member (provided that
the Managing Member shall, for so long as it diligently performs its obligations hereunder, not be responsible for the delays of
any other non-Affiliated Member or reputable accountants or auditors retained by the Managing Member or at the request of GAP on
behalf of the Company) (i) within twenty-one (21) calendar days after the end of each fiscal quarter of the Company, unless such
fiscal quarter is the last fiscal quarter of any fiscal year of the Company, (A) an unaudited balance sheet of the Company dated
as of the end of such fiscal quarter, (B) an unaudited related income statement of the Company for such fiscal quarter, (C) an
unaudited statement of each Member’s Capital Account for such fiscal quarter, and (D) an unaudited statement of cash flows
of the Company for such fiscal quarter, (ii) within fifteen (15) calendar days after the end of each calendar quarter (or calendar
month, if available), a pertinent market report on sales and leasing activity in the vicinity of each Company Property, and a status
report of the Company’s activities during such calendar quarter, or month, as applicable, including descriptions of additions
to, dispositions of and leasing and occupancy of Company Properties and any material legal issues such as material claims filed
or threatened against the Company, the arising of material claims by the Company against other parties and developments in any
then pending material legal actions affecting the Company during such fiscal quarter, and (iii) within thirty (30) calendar days
after the end of each month, and a reconciliation of actual Expenses and Revenues during such period compared with the Budget amounts
for such items, and an explanation of the discrepancies, all of which shall be certified by the Managing Member as being, to the
best of its knowledge, true and correct.


 




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(b)         The
Managing Member will prepare, or cause to be prepared, on an accrual basis in accordance with GAAP and on a tax basis, at the expense
of the Company, and furnish to each Member no later than January 15 after the end of each fiscal year of the Company (i) an unaudited
balance sheet of the Company dated as of the end of such fiscal year, (ii) an unaudited related income statement of the Company
for such fiscal year, (iii) an unaudited statement of each Member’s Capital Account for such fiscal year, (iv) an unaudited
statement of cash flows of the Company as of the end of the fiscal year, and (v) such other supporting schedules, reports and backup
information as are reasonably requested by GAP, all of which shall be certified by the Managing Member as being true and correct.
In addition, if requested by GAP, the Managing Member will prepare, at the expense of the Company, and furnish to each Member within
forty-five (45) calendar days after the end of each fiscal year of the Company, the final audited amount of net income of the Company
for such fiscal year and, within sixty (60) calendar days after the end of such fiscal year, (i) an audited balance sheet of the
Company dated as of the end of such fiscal year, (ii) an audited related income statement of the Company for such fiscal year,
(iii) an audited statement of cash flows for such fiscal year, and (iv) an audited statement of each Member’s Capital Account
for such fiscal year, all of which shall be certified by the Managing Member as being, to the best of its knowledge, true and correct
and all of which shall be certified in the customary manner by the Company Accountant (which firm shall provide such balance sheet,
income statement and statement of Capital Account in draft form to the Members for review prior to finalization and certification
thereof).


 


(c)         The
Managing Member will furnish to each Member at the expense of the Company, copies of all reports required to be furnished to any
lender of the Company.


 


(d)         The
Managing Member will prepare, or cause to be prepared, at the expense of the Company, and furnish to each Member not later than
each March 15 a schedule of estimated taxable income of the Company for the year ending on the following December 31, which schedule
shall be updated from time to time as needed to reflect material events. All schedules of book income shall be prepared on a GAAP
basis. Promptly after the end of each fiscal year, the Managing Member will cause the Company Accountant to prepare and deliver
to each Member a report setting forth in sufficient detail all such additional information and data with respect to business transactions
effected by or involving the Company during the fiscal year as will enable the Company and each Member to timely prepare its federal,
state and local income tax returns in accordance with applicable laws, rules and regulations. The Managing Member will use its
best efforts to cause the Company Accountant to prepare all federal, state and local tax returns required of the Company, submit
those returns to the Managing Member for its approval not later than February 1st of the year following such fiscal
year and will file the tax returns after they have been approved by the Managing Member. If the Managing Member shall not have
approved any such tax return prior to the date required for the filing thereof (including any extensions granted), Managing Member
will timely obtain an extension of such date to the extent such an extension is available.


 


(e)         The
Managing Member shall prepare, or cause to be prepared, at Company expense, such additional financial reports and other information
as the Managing Member may determine are appropriate.


 


(f)         All
decisions as to accounting principles shall be made by the pursuant to and in accordance with GAAP.


 




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8.04        The
Company Accountant


 


The Company shall retain
as the regular accountant and auditor for the Company (the “Company Accountant”) any nationally-recognized accounting
firm designated by GAP. The Members acknowledge and consent to the engagement of Moss Adams LLP as the initial Company Accountant
for audit purposes and Deloitte LLP as the initial tax advisor to the Company. The fees and expenses of the Company Accountant
shall be a Company expense.


 


8.05        Reserves


 


The Managing Member may,
in its discretion and subject to such conditions as it shall determine, establish reasonable reserves for the purposes and requirements
as it may deem appropriate, subject to the prior written approval of GAP.


 


8.06        The
Budget and Operating Plan


 


(a)         The
Managing Member shall, within thirty (30) days after the acquisition of the Initial Company Property, prepare and submit to GAP
for GAP’s approval a budget and strategic operating plan (as approved, the “Initial Budget and Operating Plan”)
for the Company monthly through December 31, 2015 with annual projections from January 1, 2016 through December 31, 2018,
which sets forth all anticipated revenue, operating expenses, and capital expenditures of the Company, together with an exit valuation/strategy
and projected capital contributions/returns and IRR’s to each Member, all of which is based on the strategic and comprehensive
business plan designed to maximize the Company’s returns on the Initial Company Property, and all of which shall be consistent
with preliminary projections previously provided to the Members by Managing Member. Thereafter, the Budget and Operating Plan shall
be prepared in proposed form and submitted annually by Managing Member to the Members for approval at least forty-five (45) calendar
days prior to the end of each fiscal year with respect to the following fiscal year, together with three (3) year forward projections
(provided if the Managing Member should fail to timely prepare and submit in proposed form any such Budget and Operating Plan,
GAP shall be authorized to prepare such Budget and Operating Plan). In formulating the comprehensive Budget and Operating Plan,
to the extent reasonably feasible at the time of preparation thereof, the Managing Member shall develop (for approval by the Members)
proposed strategies regarding (i) plans for development, leasing, financing and sale of any real property and proposed reductions
of Expenses and other Company costs and expenses and increases in revenues, (ii) preparation and release of all promotional
and advertising material and development related plans relating to, and a marketing plan for, the Company Property or concerning
the Company, (iii) terms for any proposed sale or disposition of any Company Property, or acquisition of additional Company
Property, and (iv) selection of legal counsel, accountants, appraisers and other consultants for the Company to efficiently
implement the Budget and Operating Plan (those professionals identified on Exhibit “B” attached hereto are hereby
approved, subject to GAP’s right to withdraw such approval for poor performance by such professionals). The Managing Member
will also consider and make recommendations to the extent it deems the same appropriate regarding the amendment, modification,
alteration, change, cancellation, or prepayment of any indebtedness evidenced by any mortgage loan presently or hereafter affecting
any Company Property, and procurement of title insurance and other insurance for the Company, or decrease or vary the insurance
carried by or on behalf of the Company and any other matters affecting the Company’s business. The Managing Member shall
provide the Company with detailed analyses comparing actual performance to the goals set forth on Exhibit D and the Budget
and Operating Plan, together with proposals for improving performance, no less frequently than quarterly.


 




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8.07        Accounts


 


All funds of the Company
shall be deposited in such checking accounts, savings accounts, time deposits, or certificates of deposit in the Company’s
name or shall be invested in the Company’s name, in such manner as shall be reasonably designated by GAP from time to time.
Company funds shall not be commingled with those of any other person or entity. Company funds shall be used only for the business
of the Company. The Members acknowledge and consent to the use of Wells Fargo, N.A., as the initial depository institution for
such accounts.


 


ARTICLE
IX

TRANSFER OF INTERESTS


 


9.01        No
Transfer


 


Except as expressly permitted
or contemplated by this Agreement, no Member may sell, assign, give, hypothecate, pledge, encumber or otherwise transfer (“Transfer”)
all or any portion of its Interest, whether directly or indirectly, without the written consent of the other Members. Except as
expressly permitted or contemplated by this Agreement, Operating Member agrees not to permit any Transfer of any equity interest
in such Member, or in its managing member. Any Transfer in contravention of this Article IX shall be null and void. No Member,
without the prior written consent of the other Members, shall resign from the Company except as a result of such Member’s
involuntary dissolution or final adjudication as a bankrupt or in connection with a Transfer permitted by this Article IX.
The same restrictions set forth herein shall apply to a Transfer in or of an interest in Operating Member’ managing member,
and such a Transfer shall have the same effect as a Transfer of an interest in Operating Member.


 


9.02        Permitted
Transfers


 


(a)         GAP
may from time to time and in its sole discretion without the consent of any other Member or the Company, Transfer its Interest
in whole or in part to any Person. Any direct or indirect member of GAP may from time to time and in its sole discretion without
the consent of any Member of the Company, transfer its direct or indirect interest in GAP in whole or in part to any Person.


 




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(b)         Any
permitted Transfer shall not relieve the transferor of any of its obligations prior to such Transfer. The parties hereto agree
to amend the transfer provisions of Article IX if the Members reasonably determine that such amendment is necessary for
the Company to be treated as a partnership for Federal and applicable state income tax purposes. Nothing contained in this Article
IX shall prohibit a Transfer indirectly of any interest in the Company if a direct Transfer would otherwise be permitted under
this Section 9.02. Subject to Section 9.03, any transferee pursuant to this Section 9.02 shall
become a Member of the Company. The provisions of this Section 9.02 will not apply to or be deemed to authorize or
permit any collateral transfer of, or grant of a security interest in, a Member’s interest in the Company, or in Company
Property (which transfer or grant shall be subject to the other provisions of this Agreement).


 


9.03        Transferees


 


Notwithstanding anything
to the contrary contained in this Agreement, no transferee of all or any portion of any Interest shall be admitted as a Member
unless (a) such Interest is transferred in compliance with the applicable provisions of this Agreement, (b) such transferee shall
have furnished evidence of satisfaction of the requirements of Section 9.02 reasonably satisfactory to the remaining
Members, and (c) such transferee shall have executed and delivered to the Company such instruments as the remaining Members reasonably
deem necessary or desirable to effectuate the admission of such transferee as a Member and to confirm the agreement of such transferee
to be bound by all of the terms and provisions of this Agreement with respect to such Interest. At the request of the remaining
Members, each such transferee shall also cause to be delivered to the Company, at the transferee’s sole cost and expense,
a favorable opinion of legal counsel reasonably acceptable to the Company, to the effect that (i) such transferee has the legal
right, power and capacity to own the Interest proposed to be transferred, (ii) if applicable, such Transfer does not violate any
provision of any loan commitment or any mortgage, deed of trust or other security instrument encumbering all or any portion of
Company Property, and (iii) such Transfer does not violate any federal or state securities laws and will not cause the Company
to become subject to the Investment Company Act of 1940, as amended. As promptly as practicable after the admission of any Person
as a Member, the books and records of the Company shall be changed to reflect such admission. All reasonable costs and expenses
incurred by the Company in connection with any Transfer of any Interest and, if applicable, the admission of any transferee as
a Member shall be paid by such transferee.


 


9.04        Section 754
Election


 


In the event of a Transfer
of all or part of the Interest of a Member, at the request of the transferee or if in the best interests of the Company (as determined
by GAP), the Company shall elect pursuant to Section 754 of the Code to adjust the basis of Company Property as provided by
Sections 734 and 743 of the Code, and any cost of such election or cost of administering or accounting for such election shall
be at the sole cost and expense of the requesting transferee.


 




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9.05        INTENTIONALLY
OMITTED


 


9.06        GAP’s
Right to Force Sale


 


(a)         Notwithstanding
anything to the contrary in this Agreement, at any time and from time to time after two (2) years following the Effective Date,
GAP, acting alone, shall have the right and power to cause the Company or any Property Company to sell all or substantially all
of the assets of the Company or such Property Company, or any interest therein, or make any other transfer of the Company Property,
including the Initial Company Property (the “Sale Property”), to any third party other than an Affiliate of
GAP for a price and on terms determined by GAP, subject to this Section 9.06. GAP shall also have the right, in its sole
discretion, at any time and from time to time after two (2) years following the Effective Date, to sell, directly or indirectly,
to one or more third parties other than an Affiliate of GAP, for a price and on terms determined by GAP, subject to this Section
9.06, all or substantially all of GAP’s Interest, and in connection therewith, require Operating Member and SRT to sell
all of their Interests pursuant to and in accordance with the terms and conditions of such sale (the “Membership Sale”).
For purposes of this Section 9.06, GAP’s right to “sell” shall include a right to grant an option or to
dispose of the fee interest or any other interest in the Sale Property, and references below to a “binding agreement”
shall be deemed references to any agreement binding on the owner of the Sale Property by which GAP causes such owner to grant any
such option or to dispose of the Sale Property or, if applicable, any agreement binding on GAP, SRT and Operating Member by which
GAP, SRT and Operating Member shall sell their respective Interests.


 


(b)         If
GAP exercises its right under this Section 9.06, it shall (on behalf of the Company or a Property Company) engage an experienced
real estate broker in the geographic area in which the Sale Property is located and with the assistance of said broker, prepare
marketing materials, market assets, cause the owner of the Sale Property to enter into a binding agreement(s) in connection with
a sale or proposed sale and, in general, cause the owner of the Sale Property to take any acts and make any commitments which are
customary or desirable in connection with the sale of property similar to that being sold by the Company or a Property Company.
If GAP elects the Membership Sale, (i) Operating Member and SRT shall execute all documents, agreements and instruments which GAP
may reasonably request to consummate the conveyance of Operating Member’s and SRT’s Interests, provided that, GAP shall
execute substantially the same documents, agreements and instruments with respect to GAP’s Interest, and (ii) Operating Member
and SRT shall each represent and warrant to the purchaser of GAP’s, SRT’s and Operating Member’s Interests, in
the binding agreement with respect to the Membership Sale, and as of the date of the closing of such Membership Sale, that (A)
each Operating Member and SRT are the sole owners of their respective Interests in the Company and holds the same free and clear
of any liens or other encumbrances, and (B) Operating Member and SRT each have all requisite power and authority to transfer its
Interest to such purchaser pursuant to this Section 9.06. GAP agrees that it will select the winning offer based upon whom
GAP reasonably determines has submitted the best qualified offer when the terms of the offer and the representation of the offeror
are considered as a whole in comparison to other offers made and other offerors. GAP shall notify SRT and Operating Member in writing
of the purchaser selected and shall use commercially reasonable efforts to keep SRT and Operating Member informed regarding the
progress of the sale of the Sale Property or, if applicable, the Membership Sale. Operating Member and SRT hereby represent and
warrant to, and agrees with and for the benefit of, GAP and the Company that GAP has all requisite authority to complete and facilitate
any sale of Operating Member’s and SRT’s Interests in accordance with this Section 9.06, including transferring
Operating Member’s and SRT’s Interests and, if and to the extent Operating Member or SRT fails to transfer Operating
Member’s or SRT’s Interest (as applicable) in accordance with this Section 9.06, Operating Member and SRT
hereby irrevocably appoint GAP as their true and lawful attorney-in-fact (which appointment shall be deemed coupled with an interest)
to individually execute all documents, agreements and instruments which GAP may reasonably request, and take any and all other
action necessary or appropriate, to consummate the conveyance of Operating Member’s and SRT’s Interests in accordance
with this Section 9.06. This Section 9.06 is self-operative and no additional authorization or consent of Operating
Member, SRT or any of their members, managers, officers, directors or owners shall be required for the sale of Operating Member’s
and SRT’s Interests under this Section 9.06.


 




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(c)         In
the event that GAP exercises its rights to sell the Company Property under this Section 9.06, (i) prior to any such sale
which constitutes a sale in bulk of all of the Company’s assets, GAP shall notify SRT in writing of the intended sale of
Company Property pursuant to a written notice (the “Sale Notice”) which sets forth GAP’s intended sales
price for Company Property at the time the Sale Notice is given (the “Proposed Price”) and other material proposed
terms (the “Proposed Terms”), of such sale (which shall be determined by GAP in its sole discretion), and (ii)
for the period commencing with the giving of the Sale Notice and terminating thirty (30) days thereafter (the “ROFO Period”),
SRT shall have the opportunity to elect to purchase Company Property or the Interests of GAP and Operating Member, at a price equal
to or in excess of the Proposed Price (or, in the case of a purchase of only the Interest of GAP and Operating Member, a price
equal to or in excess of the amount that GAP and Operating Member would receive pursuant to the terms of this Agreement if Company
Property were sold for the Proposed Price and the Company was liquidated), and on terms no less advantageous to the Company and
GAP than the Proposed Terms, by giving written notice of such election (the “Acceptance Notice”) prior to expiration
of the ROFO Period. If SRT fails to deliver the Acceptance Notice within the ROFO Period, then GAP shall be free to compel the
Company to sell Company Property on terms determined by GAP in its sole discretion, but only if such sale is consummated within
365 days after the expiration of the ROFO Period (the “Sale Period”) at a price equal to or greater than ninety-five
percent (95%) of the Proposed Price. If such a sale is not completed within 365 days at a price equal to or greater than ninety-five
percent (95%) of the Proposed Price, then GAP shall offer the Company Property to SRT in accordance with this Section 9.06(c)
prior to attempting to effect a sale of the Company Property to a third party. Together with an Acceptance Notice delivered by
the Operating Member, and as a condition to the effectiveness thereof, the Operating Member shall deposit in an escrow established
by parties a non-refundable cash deposit equal to 10% of the Proposed Price (and to be applied to the purchase price at closing)
and consummate such sale within one hundred twenty (120) days after the date of the delivery of the Acceptance Notice. If SRT delivers
the Acceptance Notice but defaults in the performance of its obligations to close the sale in accordance with this Agreement and
any other agreement of the parties relating to such sale, SRT shall forfeit its deposit (which shall be paid to GAP) and shall
have no further rights under this Section 9.06(c), and GAP may elect to (i) cause the Company to sell Company Property at
any time after such default, and on any terms, or (ii) enforce its rights by specific performance (and damages incidental to a
specific performance action which are allowed as part of such action). Notwithstanding the foregoing provisions of this Section
9.06(c), none of SRT’s rights under this Section 9.06(c) shall apply to any Transfer of any Interest by or any
direct or indirect member of or partner in GAP to any of their respective Affiliates; provided, however, that if GAP sells its
Interest to a third party which is not an Affiliate of GAP, such sale shall be subject to the provisions of this Section 9.06(c).
If Operating Member has been removed as Managing Member under this Agreement or Property Manager under the Property Management
Agreement, in any such case, “for cause,” then Operating Member shall have no right of first offer on a sale of the
Company Property or any other rights under this Section 9.06(c). If a Vote Loss Event shall have occurred with respect to
SRT, then SRT shall have no rights under this Section 9.06(c). Notwithstanding anything to the contrary herein, if the Members
unanimously agree to sell Company Property at any time, then the terms of this Section 9.06(c) shall not apply to such sale.


 




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ARTICLE
X

EXCULPATION AND INDEMNIFICATION


 


10.01      Exculpation


 


No Member, Managing Member,
general or limited partner of any Member, shareholder or member or other holder of an equity interest of any Member or manager,
officer or director of any of the foregoing, shall be liable to the Company, any Property Company or to any other Member for monetary
damages for any losses, claims, damages or liabilities arising from any act or omission performed or omitted by it and arising
out of or in connection with this Agreement or the Company’s business or affairs; provided, however, that such
act or omission was taken in good faith, was reasonably believed to be in the best interests of the Company and was within the
scope of authority granted to such Person, and in the case of a Member or related Person other than in its capacity as Property
Manager, was not attributable to such Member’s or Person’s fraud, bad faith, willful misconduct or gross negligence.
No general or limited partner of any Member, shareholder, member or other holder of an equity interest in such Member or manager,
officer of director of any of the foregoing shall be personally liable for the performance of any such Member’s obligations
of this Agreement, but the foregoing shall not relieve any partner or member of any Member from its obligations to such Member.


 




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10.02      Indemnification


 


(a)         The
Company shall, to the fullest extent permitted by applicable law, indemnify, defend and hold harmless each Member, the Managing
Member and each general or limited partner of any Member or such Member’s Affiliate, shareholder, member or other holder
of any equity interest in such Member or its Affiliate, or any manager, officer or director of any of the foregoing (collectively,
the “Indemnitees”), from and against any losses, claims, demands, liabilities, costs, damages, expenses and
causes of action to which such Indemnitee may become subject in connection with any matter arising out of or incidental to any
act performed or omitted to be performed by any such Indemnitee in connection with this Agreement or the Company’s business
or affairs; provided, however, that such act or omission was taken in good faith, was reasonably believed by the
applicable Indemnitee to be in the best interest of the Company and within the scope of authority granted to such member or applicable
Indemnitee, and in the case of a Member or related Indemnitee (other than in its capacity as Property Manager), was not attributable
to such Indemnitee’s fraud, bad faith, willful misconduct or gross negligence, or in the case of Property Manager, was not
attributable to Property Manager’s or related Indemnitee’s fraud, bad faith, willful misconduct or gross negligence.
Any indemnity under this Section 10.02 shall be paid solely out of and to the extent of Company Property and shall
not be a personal obligation of any Member and in no event will any Member be required, or permitted without the consent of all
of the Members, to contribute additional capital under Section 4.02 to enable the Company to satisfy any obligation
under this Section 10.02. All judgments against the Company and the Members, or any one or more thereof, wherein such
Member (or Members) is entitled to indemnification, must first be satisfied from Company Property before the Members shall be responsible
therefor.


 


(b)         The
Company and the other Members shall be indemnified and held harmless by each Member from and against any and all claims, demands,
liabilities, costs, damages, expenses and causes of action of any nature whatsoever arising out of or attributable to (i) any act
performed by or on behalf of any such Member (including, in the case of Operating Member, acts performed as Managing Member or
by Property Manager, if Property Manager is an Affiliate of Operating Member), its managing member or, if Property Manager is an
Affiliate of such Member, Property Manager which is not performed in good faith or is not reasonably believed by such Member, its
managing member or, if Property Manager is an Affiliate of such Member, Property Manager to be in the best interest of the Company
and within the scope of authority conferred upon such Member or its managing member under this Agreement or, with respect to Property
Manager, the Property Management Agreement, (ii) the fraud, bad faith, willful misconduct or gross negligence of such Member, its
managing member or, if Property Manager is an Affiliate of such Member, Property Manager, (iii) the breach by the Company of any
of its representations and warranties made under any purchase, loan or other agreement entered into in connection with the acquisition
of Company Property, which breach was the result of information or matters relating to such Member or, if Property Manager is an
Affiliate of such Member, Property Manager or (iv) any denial of an insurance claim by the Company based on an intentional misstatement
or intentional withholding of information by any Member or, if Property Manager is an Affiliate of such Member, Property Manager.


 




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(c)         The
provisions of this Section 10.02 shall survive for a period of four (4) years from the date of dissolution of the Company,
provided that, if at the end of such period there are any actions, proceedings or investigations then pending, any Indemnitee may
so notify the Company and the other Members at such time (which notice shall include a brief description of each such action, proceeding
or investigation and the liabilities asserted therein) and the provisions of this Section 10.02 shall survive with
respect to each such action, proceeding or investigation set forth in such notice (or any related action, proceeding or investigation
based upon the same or similar claim) until such date that such action, proceeding or investigation is finally resolved.


 


(d)         Notwithstanding
anything to the contrary contained in this Agreement, the obligations of the Company or any Member under this Section 10.02
shall (i) be in addition to any liability which the Company or such Member may otherwise have and (ii) inure to the benefit of
such Indemnitee, its Affiliates and their respective members, managers, directors, officers, employees, agents and Affiliates and
any successors, assigns, heirs and personal representatives of such Persons.


 


ARTICLE
XI

DISSOLUTION AND TERMINATION


 


11.01      Dissolution


 


The Company shall be dissolved
and its business wound up upon the earliest to occur of any of the following events, unless the majority-in-interest of the remaining
Members vote to continue the life of the Company upon the occurrence of such an event:


 


(a)         Three
(3) years after the sale, condemnation or other disposition of all Company Property and the receipt of all consideration therefor;


 


(b)         December
31, 2064;


 


(c)         At
any time on or after the second anniversary of the Effective Date, the written determination of GAP to terminate the Company; provided,
that the foregoing shall not affect the parties’ rights under Section 7.05(c), and any disposition by the Company in connection
with a liquidation under this paragraph (c) shall be subject to the ROFO Opportunity elections provided in Section 7.05(c); or


 


(d)         The
resignation, expulsion, bankruptcy or dissolution of any Member (which shall not include the occurrence of such an event with respect
to any Member’s underlying members or partners which does not cause such an event to occur with respect to the Member itself)
or the occurrence of any other event that terminates the continued membership of any Member in the Company, unless, within ninety
(90) days after such event, each of the remaining Members elects in writing (i) to continue the business of the Company and (ii)
if at such time there exists only one remaining Member, effective as of the date of such event, to admit at least one additional
Member to the Company.


 




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Without limitation on, but subject to, the
other provisions hereof, the assignment of all or any part of a Member’s Interest permitted hereunder will not result in
the dissolution of the Company. Except as otherwise specifically provided in this Agreement, each Member agrees that, without the
consent of the other Members, any Member may not withdraw from or cause a voluntary dissolution of the Company. In the event any
Member withdraws from or causes a voluntary dissolution of the Company in contravention of this Agreement, such withdrawal or the
causing of a voluntary dissolution shall not affect such Member’s liability for obligations of the Company.


 


11.02      Termination


 


In all cases of dissolution
of the Company, the business of the Company shall be wound up and the Company terminated as promptly as practicable thereafter,
and each of the following shall be accomplished:


 


(a)         The
Liquidating Member shall cause to be prepared a statement setting forth the assets and liabilities of the Company as of the date
of dissolution, a copy of which statement shall be furnished to all of the Members.


 


(b)         Company
Property shall be liquidated by the Liquidating Member as promptly as possible, but in an orderly and businesslike and commercially
reasonable manner and subject to the provisions of the Operating Plan then in effect or a liquidating plan approved by GAP. The
Liquidating Member may distribute Company Property in kind only with the consent of all of the Members.


 


(c)         The
proceeds of sale and all other assets of the Company shall be applied and distributed as follows and in the following order of
priority:


 


(i)         To
the payment of (A) the debts and liabilities of the Company (including any outstanding amounts due on any indebtedness encumbering
Company Property, or any part thereof and any Shortfall Loans) and (B) the expenses of liquidation.


 


(ii)        To
the setting up of any reserves which the Liquidating Member and GAP shall determine to be reasonably necessary for contingent,
unliquidated or unforeseen liabilities or obligations of the Company or any Member arising out of or in connection with the Company.
Such reserves may, in the discretion of the Liquidating Member, be paid over to a national bank or national title company selected
by it and authorized to conduct business as an escrow agent to be held by such bank or title company as escrow agent for the purposes
of disbursing such reserves to satisfy the liabilities and obligations described above, and at the expiration of such period as
the Liquidating Member may reasonably deem advisable, distributing any remaining balance as provided in Section 11.02(c)(iii);
provided, however, that, to the extent that it shall have been necessary, by reason of applicable law or regulation,
to create any reserves prior to any and all distributions which would otherwise have been made under Section 11.02(c)(i)
and, by reason thereof, a distribution under Section 11.02(c)(i) has not been made, then any balance remaining shall
first be distributed pursuant to Section 11.02(c)(i).


 


(iii)        The
balance, if any, to the Members in accordance with Section 6.05.


 




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11.03      Liquidating
Member


 


The Liquidating Member
is hereby irrevocably appointed as the true and lawful attorney in the name, place and stead of each of the Members, such appointment
being coupled with an interest, to make, execute, sign, acknowledge and file with respect to the Company all papers which shall
be necessary or desirable to effect the dissolution and termination of the Company in accordance with the provisions of this Article
XI. Notwithstanding the foregoing, each Member, upon the request of the Liquidating Member or GAP, shall promptly execute,
acknowledge and deliver all such documents, certificates and other instruments as the Liquidating Member or GAP shall reasonably
request to effectuate the proper dissolution and termination of the Company, including the winding up of the business of the Company.


 


11.04      Claims
of the Members


 


Members and former Members
shall look solely to the Company’s assets for the return of their Capital Contributions, and if the assets of the Company
remaining after payment of or due provision for all debts, liabilities and obligations of the Company are insufficient to return
such Capital Contributions, the Members and former Members shall have no recourse against the Company or any other Member.


 


ARTICLE
XII

DEFAULT BY MEMBER


 


12.01      Events
of Default


 


If a Member commits a material
violation or breach of any of the provisions of this Agreement, or if Property Manager commits a material violation or breach of
any of the provisions of the Property Management Agreement which is not cured (including, without limitation, by the breaching
Member reimbursing the Company for the resulting material damage or loss) within a Reasonable Period, such Member (Operating Member
in the case of a violation or breach by Property Manager) shall have committed an “Event of Default”. A failure
to make any Additional Capital Contribution shall not constitute an Event of Default.


 


12.02      Effect
of Event of Default


 


Upon the occurrence of
an Event of Default by any Member, Operating Member (if the defaulting Member is GAP) or GAP (if the defaulting Member is Operating
Member or SRT) shall have the right, at any time within one year from the date of such Event of Default and upon giving the defaulting
Member ten (10) calendar days written notice of such election (and provided such Event of Default is continuing through the end
of such ten (10) day period) to take any of the following actions:


 


(a)         Dissolve
the Company;


 


(b)         If
Operating Member is the defaulting Member, terminate Operating Member as Managing Member and as Property Manager under the Property
Management Agreement; and


 




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(c)         Pursue
any other right or remedy available at law or in equity.


 


ARTICLE
XIII

REPRESENTATIONS, WARRANTIES AND COVENANTS


 


13.01       Representations
and Warranties of the Members


 


(a)         Each
Member represents and warrants to the other Member(s) as follows:


 


(i)         It
is duly organized, validly existing and in good standing under the laws of its jurisdiction of formation with all requisite power
and authority to enter into this Agreement and to conduct the business of the Company.


 


(ii)        This
Agreement constitutes the legal, valid and binding obligation of the Member enforceable in accordance with its terms.


 


(iii)        No
consents or approvals are required from any Governmental Authority or other person or entity for the Member to enter into this
Agreement. All limited liability company, corporate or partnership action on the part of the Member necessary for the authorization,
execution and delivery of this Agreement, and the consummation of the transactions contemplated hereby, have been duly taken.


 


(iv)        The
execution and delivery of this Agreement by the Member, and the consummation of the transactions contemplated hereby, does not
conflict with or contravene the provisions of its organizational documents or any agreement or instrument by which it or its properties
are bound or any law, rule, regulation, order or decree to which it or its properties are subject.


 


(v)        Other
than a disposition fee required to be paid by SRT to Glenborough, LLC, in connection with the sale by SRT of the Initial Company
Property to the Company, no Member has retained any broker, finder or other commission or fee agent, and no such person has acted
on its behalf in connection with the acquisition of the Initial Company Property or the execution and delivery of this Agreement.


 


(vi)        It
understands that (A) an investment in the Company involves substantial and a high degree of risk, (B) no federal or state agency
has passed on the offer and sale of the Interest in the Company to such Person, (C) it must bear the economic risk of such Person’s
investment in the Company for an indefinite period of time, since such Person’s Interest in the Company has not been registered
for sale under the Securities Act of 1933 and, therefore, cannot be sold or otherwise transferred unless subsequently registered
under the Securities Act of 1933 or an exemption from such registration is available, and the Interest in the Company of such Person
cannot be sold or otherwise transferred unless registered under applicable state securities or blue sky laws or an exemption from
such registration is available, (D) there is no established market for the Interest of such Person in the Company and no public
market will develop and (E) such Person’s principals have such knowledge and experience in real estate and, other financial
and business matters that they are capable of evaluating the merits and risks of an investment in the Company.


 




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(b)         In
addition to the representations and warranties set forth above, Operating Member represents, warrants and covenants to GAP as follows:


 


(i)         Operating
Member is a limited liability company currently existing pursuant to that certain Certificate of Formation filed
with the Secretary of State of Delaware on January 28, 2015, and that certain limited liability company operating agreement
dated March 6, 2015 (collectively, the “Operating Member Organizational Documents”), and a true and
correct copy of the Operating Member Organizational Documents have been provided to counsel for GAP.


 


(ii)        The
Operating Member Organizational Documents have not been terminated nor modified or amended and continue to be in full force and
effect.


 


(iii)        No
consent or authorization of any other persons or entities, other than those whose consent has been secured, is required for Operating
Member to enter into this Agreement or to take any action or grant any consent or approval under this Agreement.


 


(iv)       The
offer and sale of interests in Operating Member has been undertaken in full compliance with all applicable federal and state securities
laws and no interests in Operating Member have been offered or sold to any person who was not at the time of such offer or sale
an “accredited investor” as defined in Section 2(15) of the Securities Act of 1933 and Rule 501 promulgated thereunder
and under the securities laws of various states.


 


(v)        The
Key Persons own, directly or indirectly, 52% of the Operating Member and have the power to direct the management and policies of
Operating Member.


 


(vi)        Operating
Member hereby covenants and agrees not to amend or permit the amendment of the management and control provisions of the Operating
Member Organizational Documents without the prior written consent of GAP.


 


(vii)      The
issuance of all ownership interests in Operating Member was accomplished in accordance with all laws, including, without limitation,
all securities laws.


 


(viii)     It
is in compliance with all applicable anti-money laundering and anti-terrorist laws, regulations, rules, executive orders and government
guidance, including the reporting, record keeping and compliance requirements of the Bank Secrecy Act (“BSA”),
as amended by The International Money Laundering Abatement and Financial Anti-Terrorism Act of 2001, Title III of the USA PATRIOT
Act (the “Patriot Act”), and other authorizing statutes, executive orders and regulations administered by OFAC
applicable to Operating Member, and related Securities and Exchange Commission, SRO or other agency rules and regulations applicable
to Operating Member, and has policies, procedures, internal controls and systems that are reasonably designed to ensure such compliance.


 




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(ix)        Neither:
(a) Operating Member, any Affiliate of Operating Member nor any Person controlled by Operating Member; nor (b) to the
best of knowledge of Operating Member, after making due inquiry, any Person who owns a controlling interest in or otherwise controls
Operating Member; nor (c) to the best of knowledge of Operating Member, if Operating Member is a privately held entity, any
Person otherwise having a direct or indirect beneficial interest (other than with respect to an interest in a publicly traded entity)
in Operating Member; nor (d) any Person for whom Operating Member is acting as agent or nominee in connection with this investment,
is a country, territory, Person, organization, or entity named on an OFAC List, nor is a prohibited country, territory, Person,
organization, or entity under any economic sanctions program administered or maintained by OFAC.


 


(x)         Unless
disclosed in writing to GAP on the date hereof, it is not a Senior Foreign Political Figure, or an Immediate Family Member or a
Close Associate of a Senior Foreign Political Figure, that it is not controlled by a Senior Foreign Political Figure, or an Immediate
Family Member or a Close Associate of a Senior Foreign Political Figure, and that, to the best of Operating Member’s knowledge,
after making due inquiry, none of the direct or indirect owners of Operating Member (other than any owner(s) of any interest(s)
in a publicly traded entity) is a Senior Foreign Political Figure, or an Immediate Family Member or a Close Associate of a Senior
Foreign Political Figure.


 


(xi)        Subject
to any confidentiality obligations existing as of the date of any request by GAP, Operating Member agrees that, upon receiving
a request from GAP, Operating Member shall provide information reasonably required by GAP (a) that indicates that the representations,
warranties and covenants of Operating Member set forth in this Section 13.01(b) are true, and (b) to permit GAP to comply
with its obligations under all applicable anti-money laundering and anti-terrorist laws, regulations and executive orders. Operating
Member consents to the disclosure to United States regulators and law enforcement authorities by GAP and its Affiliates of such
information about Operating Member that GAP reasonably deems necessary or appropriate to comply with applicable anti-money laundering
and anti-terrorist laws, regulations, and executive orders.


 


(xii)       Operating
Member agrees that as a condition of any Transfer of any of its direct or indirect interest in the Company, GAP has the right to
require full compliance with these representations, warranties and covenants, to the satisfaction of GAP, with respect to any transferee
and any Person who owns or otherwise controls the transferee.


 


(xiii)      Operating
Member shall, to the fullest extent permitted by applicable law, indemnify, defend and hold harmless GAP and the Company, and each
general or limited partner of GAP or any Affiliate, shareholder, member or other holder of any equity interest in GAP, or any manager,
officer or director of the foregoing (collectively, the “GAP and/or Company Indemnitees”), from and against
any losses, claims, demands, liabilities, costs, damages, expenses and causes of action to which such GAP and/or Company Indemnitees
may become subject in connection with any breach of these representations, warranties and covenants that causes a breach or violation
or failed condition under any documents by which the Company is bound (such as loan documents).


 




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(xiv)      Operating
Member acknowledges and agrees that if, following its investment in the Company, GAP reasonably believes that Operating Member
has breached its representations, warranties or covenants set forth herein, or that action is otherwise required by law or regulation,
GAP has the right or may be obligated to freeze or block the investment, to prohibit additional investments, to segregate the assets
constituting the investment in accordance with applicable OFAC laws and regulations, to decline any redemption or Transfer requests,
to redeem Operating Member’s investment, and/or to report such action to government authorities. Operating Member further
acknowledges that it will have no claim against the Company and/or GAP or its Affiliates for any form of damages as a result of
any of the foregoing actions.


 


(xv)       Intentionally
Omitted.


 


(xvi)     Operating
Member is a “United States person” for United States federal income tax purposes.


 


(xvii)     To
the best of Operating Member’s knowledge, Operating Member has not knowingly or intentionally withheld or knowingly or intentionally
failed to deliver to GAP any material written documents in its possession or control relating to the Initial Company Property.


 


(xviii)    As
of the Effective Date, Operating Member has not engaged in any business other than, and has no obligations other than, its obligations
under this Agreement.


 


(xix)      To
the best of Operating Member’s knowledge, Seller has not knowingly or intentionally made any material misrepresentations
in the representations and warranties of Seller set forth in the Purchase Agreement.


 


For purposes of the representations,
warranties and covenants set forth in this Section 13.01(b), the term “knowledge” includes the actual knowledge
of Andrew Batinovich. Operating Member represents and warrants to GAP that Andrew Batinovich is the person affiliated with Operating
Member with the most knowledge regarding the representations, warranties and covenants set forth in this Section 13.01(a)
and this Section 13.01(b).


 


(c)         In
addition to the representations and warranties set forth above, SRT represents, warrants and covenants to GAP as follows:


 


(i)         SRT
is a Delaware limited liability company currently existing pursuant to that certain Certificate of Formation filed
with the Secretary of State of Delaware on January 28, 2015, and that certain limited liability company agreement dated
March 6, 2015 (collectively, the “SRT Organizational Documents”), and a true and correct copy of the
SRT Organizational Documents have been provided to counsel for GAP.


 




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(ii)        The
SRT Organizational Documents have not been terminated nor modified or amended and continue to be in full force and effect.


 


(iii)        No
consent or authorization of any other persons or entities, other than those whose consent has been secured, is required for SRT
to enter into this Agreement or to take any action or grant any consent or approval under this Agreement.


 


(iv)        The
offer and sale of interests in SRT has been undertaken in full compliance with all applicable federal and state securities laws;
except as may be disclosed by the issues raised in the ongoing class action more particularly described on Schedule E attached
hereto.


 


(v)        It
is in compliance with all applicable anti-money laundering and anti-terrorist laws, regulations, rules, executive orders and government
guidance, including the reporting, record keeping and compliance requirements of the Bank Secrecy Act (“BSA”),
as amended by The International Money Laundering Abatement and Financial Anti-Terrorism Act of 2001, Title III of the USA PATRIOT
Act (the “Patriot Act”), and other authorizing statutes, executive orders and regulations administered by OFAC
applicable to SRT, and related Securities and Exchange Commission, SRO or other agency rules and regulations applicable to SRT,
and has policies, procedures, internal controls and systems that are reasonably designed to ensure such compliance.


 


(vi)       Neither:
(A) SRT, any Affiliate of SRT nor any Person controlled by SRT; nor (B) to the best of knowledge of SRT, after making
due inquiry, any Person who owns a controlling interest in or otherwise controls SRT; nor (C) to the best of knowledge of
SRT, if SRT is a privately held entity, any Person otherwise having a direct or indirect beneficial interest (other than with respect
to an interest in a publicly traded entity) in SRT; nor (D) any Person for whom SRT is acting as agent or nominee in connection
with this investment, is a country, territory, Person, organization, or entity named on an OFAC List, nor is a prohibited country,
territory, Person, organization, or entity under any economic sanctions program administered or maintained by OFAC.


 


(vii)      Unless
disclosed in writing to GAP on the date hereof, it is not a Senior Foreign Political Figure, or an Immediate Family Member or a
Close Associate of a Senior Foreign Political Figure, that it is not controlled by a Senior Foreign Political Figure, or an Immediate
Family Member or a Close Associate of a Senior Foreign Political Figure, and that, to the best of SRT’s knowledge, after
making due inquiry, none of the direct or indirect owners of SRT (other than any owner(s) of any interest(s) in a publicly traded
entity) is a Senior Foreign Political Figure, or an Immediate Family Member or a Close Associate of a Senior Foreign Political
Figure.


 




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(viii)      Subject
to any confidentiality obligations existing as of the date of any request by GAP, SRT agrees that, upon receiving a request from
GAP, SRT shall provide information reasonably required by GAP (A) that indicates that the representations, warranties and covenants
of SRT set forth in this Section 13.01(c) are true, and (B) to permit GAP to comply with its obligations under all applicable
anti-money laundering and anti-terrorist laws, regulations and executive orders. SRT consents to the disclosure to United States
regulators and law enforcement authorities by GAP and its Affiliates of such information about SRT that GAP reasonably deems necessary
or appropriate to comply with applicable anti-money laundering and anti-terrorist laws, regulations, and executive orders.


 


(ix)        SRT
agrees that as a condition of any Transfer of any of its direct or indirect interest in the Company, GAP has the right to require
full compliance with these representations, warranties and covenants, to the satisfaction of GAP, with respect to any transferee
and any Person who owns or otherwise controls the transferee.


 


(x)         SRT
shall, to the fullest extent permitted by applicable law, indemnify, defend and hold harmless GAP and the Company, and each general
or limited partner of GAP or any Affiliate, shareholder, member or other holder of any equity interest in GAP, or any manager,
officer or director of the foregoing (collectively, the “GAP and/or Company Indemnitees”), from and against
any losses, claims, demands, liabilities, costs, damages, expenses and causes of action to which such GAP and/or Company Indemnitees
may become subject in connection with any breach of these representations, warranties and covenants that causes a breach or violation
or failed condition under any documents by which the Company is bound (such as loan documents).


 


(xi)        SRT
acknowledges and agrees that if, following its investment in the Company, GAP reasonably believes that SRT has breached its representations,
warranties or covenants set forth herein, or that action is otherwise required by law or regulation, GAP has the right or may be
obligated to freeze or block the investment, to prohibit additional investments, to segregate the assets constituting the investment
in accordance with applicable OFAC laws and regulations, to decline any redemption or Transfer requests, to redeem SRT’s
investment, and/or to report such action to government authorities. SRT further acknowledges that it will have no claim against
the Company and/or GAP or its Affiliates for any form of damages as a result of any of the foregoing actions.


 


(xii)       Intentionally
Omitted.


 


(xiii)      SRT
is a “United States person” for United States federal income tax purposes.


 


(xiv)     To
the best of SRT’s knowledge, SRT has not knowingly or intentionally withheld or knowingly or intentionally failed to deliver
to GAP all material written documents in its possession or control relating to the Initial Company Property.


 


For purposes of the representations,
warranties and covenants set forth in this Section 13.01(c), the term “knowledge” includes the actual knowledge
of Andrew Batinovich. Operating Member represents and warrants to GAP that Andrew Batinovich is the person affiliated with Operating
Member with the most knowledge regarding the representations, warranties and covenants set forth in this Section 13.01(a)
and this Section 13.01(b).


 




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(d)         In
addition to the representations and warranties set forth above, GAP represents, warrants and covenants to Operating Member as follows:


 


(i)         GAP
is a limited liability company currently existing pursuant to that certain Certificate of Formation filed with the Secretary of
State of Delaware on September 11, 2014, and that certain limited liability company agreement of GAP in effect as of the Effective
Date (collectively, the “GAP Organizational Documents”).


 


(ii)        The
GAP Organizational Documents have not been terminated and continue to be in full force and effect.


 


(iii)        No
consent or authorization of any other persons or entities, other than those whose consent has been secured, is required for GAP
to enter into this Agreement or to take any action or grant any consent or approval under this Agreement.


 


(iv)        The
offer and sale of interests in GAP has been undertaken in full compliance with all applicable federal and state securities laws
and no interests in GAP have been offered or sold to any person who was not at the time of such offer or sale an “accredited
investor” as defined in Section 2(15) of the Securities Act of 1933 and Rule 501 promulgated thereunder and under the securities
laws of various states.


 


(e)         (i)         Each
Member acknowledges and agrees that, without SRT’s consent, the Company shall not take, nor shall such Members cause the
Company to take, any actions that would (A) cause SRT or its Affiliates to be disqualified as a REIT under the Code or (B) generate
any income other than “rents from real property” and “gains from the sale of real property which is not property
described in Section 1221(a)(i) of the Code.” Each Member shall be responsible for any action taken by it in violation of
the foregoing and in no event will the Company be responsible for the actions of any Member.


 


(ii)         A
Member may request confirmation from SRT, at any time and from time to time, that a proposed action to be taken by a Member or
the Company will not violate the terms of subsection (i) above. If SRT either (A) confirms that such action will not violate the
terms of subsection (i) above or (B) fails to respond to such request within ten (10) days, then the Member(s) and the Company
may pursue such action without any future liability under subsection (i) above if such action is later determined to have violated
the terms of subsection (i) above.


 


(f)          Each
Member agrees to indemnify and hold harmless the Company and each other Member and their officers, directors, shareholders, partners,
members, employees, successors and assigns from and against any and all loss, damage, liability or expense (including costs and
attorneys’ fees) which they may incur by reason of, or in connection with, any breach of the foregoing representations and
warranties by such Member and all such representations and warranties shall survive the execution and delivery of this Agreement
and the termination and dissolution of Operating Member and/or the Company or any other Member.


 




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ARTICLE
XIV

MISCELLANEOUS


 


14.01     Further
Assurances


 


Each Member agrees to execute,
acknowledge, deliver, file, record and publish such further instruments and documents, and do all such other acts and things as
may be required by law, or as may be required to carry out the intent and purposes of this Agreement.


 


14.02     Notices


 


All notices, demands, consents,
approvals, requests or other communications which any of the parties to this Agreement may desire or be required to give hereunder
(collectively, “Notices”) shall be in writing and shall be given by (a) personal delivery, (b) facsimile or
electronic mail transmission, but only to the extent delivery has been confirmed by all recipients by a return facsimile or electronic
mail transmission or (c) a reputable overnight courier service, fees prepaid, addressed as follows:


 


	
         

        If to GAP:
	
        c/o Oaktree Real Estate Group

        333 So. Grand Avenue, 28th Floor

        Los Angeles, CA 90071

        Attn: Cary Kleinman

        Facsimile No.: 213/830-6392

	 	 
	If to Operating Member, to:	
        

        c/o GLB SGO, LLC

        400 South El Camino, 11th Floor

        San Mateo, CA 94402-170

        Attention: Andrew Batinovich

        Facsimile No. 650/343-9690

	 	 
	with a copy to:	
         c/o GLB SGO, LLC

        400 South El Camino, 11th Floor

        San Mateo, CA 94402-170

        Attention: General Counsel

        Facsimile No. 650/343-9690

	 	 
	If to SRT, to:	
         c/o SRT SGO, LLC

        400 South El Camino, 11th Floor

        San Mateo, CA 94402-170

        Attention: Andrew Batinovich

        Facsimile No. 650/343-9690



 




    	-65-



    	 



    

  


	with a copy to:	
        c/o SRT SGO, LLC

        400 South El Camino, 11th Floor

        San Mateo, CA 94402-170

        Attention: General Counsel

        Facsimile No. 650/343-9690



 


Any Member may designate another addressee
(and/or change its address) for Notices hereunder by a Notice given pursuant to this Section 14.02. A Notice sent in
compliance with the provisions of this Section 14.02 shall be deemed given on the date of receipt.


 


14.03     Governing
Law


 


This Agreement shall be
governed by and construed in accordance with the laws of the State of Delaware applicable to agreements made and to be performed
wholly within that State.


 


14.04     Attorney
Fees


 


If the Company or any Member
obtains a judgment against any other Member by reason of the breach of this Agreement or the failure to comply with the terms hereof,
reasonable attorneys’ fees and costs as fixed by the court shall be included in such judgment.


 


14.05     Captions


 


All titles or captions
contained in this Agreement are inserted only as a matter of convenience and for reference and in no way define, limit, extend,
or describe the scope of this Agreement or the intent of any provision in this Agreement.


 


14.06     Pronouns


 


All pronouns and any variations
thereof shall be deemed to refer to the masculine, feminine, and neuter, singular and plural, as the identity of the party or parties
may require.


 


14.07     Successors
and Assigns


 


This Agreement shall be
binding upon the parties hereto and their respective executors, administrators, legal representatives, heirs, successors and assigns,
and shall inure to the benefit of the parties hereto and, except as otherwise provided herein, their respective executors, administrators,
legal representatives, heirs, successors and assigns.


 


14.08     Extension
Not a Waiver


 


No delay or omission in
the exercise of any power, remedy or right herein provided or otherwise available to a Member or the Company shall impair or affect
the right of such Member or the Company thereafter to exercise the same. Any extension of time or other indulgence granted to a
member hereunder shall not otherwise alter or affect any power, remedy or right of any other Member or of the Company, or the obligations
of the Member to whom such extension or indulgence is granted.


 




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14.09     Creditors
Not Benefited


 


Nothing contained in this
Agreement is intended or shall be deemed to benefit any creditor of the Company or any Member, and no creditor of the Company shall
be entitled to require the Company or the Members to solicit or accept any Additional Capital Contribution for the Company or to
enforce any right which the Company or any Member may have against any Member under this Agreement or otherwise or under any guaranty.


 


14.10     Recalculation
of Interest


 


If any applicable law is
ever judicially interpreted so as to deem any distribution, contribution, payment or other amount received by any Member or the
Company under this Agreement as interest and so as to render any such amount in excess of the maximum rate or amount of interest
permitted by applicable law, then it is the express intent of the Members and the Company that all amounts in excess of the highest
lawful rate or amount theretofore collected be credited against any other distributions, contributions, payments or other amounts
to be paid by the recipient of the excess amount or refunded to the appropriate Person, and the provisions of this Agreement immediately
be deemed reformed, without the necessity of the execution of any new document, so as to comply with the applicable law, but so
as to permit the payment of the fullest amount otherwise required hereunder. All sums paid or agreed to be paid that are judicially
determined to be interest shall, to the extent permitted by applicable law, be amortized, prorated, allocated and spread throughout
the term of such obligation so that the rate or amount of interest on account of such obligation does not exceed the maximum rate
or amount of interest permitted under applicable law.


 


14.11     Severability


 


In case any one or more
of the provisions contained in this Agreement or any application thereof shall be invalid, illegal or unenforceable in any respect,
the validity, legality and enforceability of the remaining provisions contained herein and other application thereof shall not
in any way be affected or impaired thereby.


 


14.12     Entire
Agreement


 


This Agreement contains
the entire agreement between the parties relating to the subject matter hereof and all prior agreements relative hereto which are
not contained herein are terminated. Amendments, variations, modifications or changes herein may be made effective and binding
upon the Members by, and only by, the setting forth of same in a document duly executed by each Member, and any alleged amendment,
variation, modification or change herein which is not so documented shall not be effective as to any Member.


 




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14.13     Publicity


 


The parties agree that
no Member shall issue any press release or otherwise publicize or disclose the terms of this Agreement or the proposed terms of
any acquisition of the Initial Company Property, without the consent of each of the other Members, except as such disclosure may
be made in the course of normal reporting practices by any Member to its members, shareholders or partners or as otherwise required
by law.


 


14.14     Counterparts


 


This Agreement may be executed
in multiple counterparts, each of which shall be an original but all of which together shall constitute but one and the same agreement.


 


14.15     Confidentiality


 


(a)         Each
Operating Member and SRT represents that it has not and agrees that it will not and will direct its shareholders, partners, directors,
officers, agents, advisors and Affiliates not to, disclose to any Person the terms of this Agreement, the identity of any person
with whom the Company may be holding discussions with respect to any investment, acquisition, disposition or other transaction,
or any other business, financial or other information relating directly to the conduct of the business and affairs of the Company
or the relative or absolute rights or interests of any of the Members that is not already publicly available or that has not been
publicly disclosed by or pursuant to authorization by GAP (collectively, the “Confidential Information”), or
confirm any statement made by third Persons regarding Confidential Information; provided, however, that Operating
Member and SRT (or either of their Affiliates) may disclose such Confidential Information if required by law (it being specifically
understood and agreed that anything set forth in a registration statement or any other document filed pursuant to law will be deemed
required by law), if necessary for it to perform any of its duties or obligations hereunder or in any management agreement to which
it is a party covering any Company Property, and to its attorneys and advisors who agree to maintain a similar confidence.


 


(b)         Subject
to the provisions of Section 14.15(a), Operating Member and SRT each agree not to disclose any Confidential Information
to any Person (other than a Person (including without limitation an attorney or advisor) agreeing to maintain all Confidential
Information in strict confidence or a judge, magistrate or referee in any action, suit or proceeding relating to or arising out
of this Agreement or otherwise), and to keep confidential all documents (including, without limitation, responses to discovery
requests) containing any Confidential Information. Each Operating Member and SRT hereby consents in advance to any motion for any
protective order brought by GAP represented as being intended by GAP to implement the purposes of this Section 14.15,
provided that, if Operating Member or SRT receives a request to disclose any Confidential Information under the terms of a valid
and effective order issued by a court or governmental agency and the order was not sought by or on behalf of or consented to by
Operating Member or SRT, as applicable, then Operating Member or SRT may disclose the Confidential Information to the extent required
if Operating Member or SRT, as applicable, as promptly as practicable (i) notifies GAP of the existence, terms and circumstances
of the order, (ii) consults in good faith with GAP on the advisability of taking legally available steps to resist or to narrow
the order, and (iii) if disclosure of the Confidential Information is required, exercises its best efforts to obtain a protective
order or other reliable assurance that confidential treatment will be accorded to the portion of the disclosed Confidential Information
that GAP designates. The cost (including, without limitation, attorneys’ fees and expenses) of obtaining a protective order
covering Confidential Information designated by GAP will be borne by the Company.


 




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(c)         The
covenants contained in this Section 14.15 will survive the Transfer of the Interest of any Member and the termination
of the Company.


 


14.16      Venue


 


Each of the Members consents
to the jurisdiction of any court in Wilmington, Delaware for any action arising out of matters related to this Agreement. Each
of the Members waives the right to commence an action in connection with this Agreement in any court outside of Wilmington, Delaware.


 


14.17      Waiver
of Jury Trial


 


EACH OF THE MEMBERS HEREBY
WAIVES TRIAL BY JURY IN ANY ACTION ARISING OUT OF MATTERS RELATED TO THIS AGREEMENT, WHICH WAIVER IS INFORMED AND VOLUNTARY.


 


14.18      Attorney
Representation


 


Each Member hereby acknowledges
and agrees that: (i) in the negotiation and preparation of this Agreement and with respect to the matters contemplated hereby GAP
has been independently represented by the law firm of Jones Day (“Jones Day”), Operating Member and SRT have been independently
represented by the law firm of Boutin Jones Inc. (“Boutin Jones”); (ii) Jones Day has represented both GAP and its
Affiliates in other related and unrelated matters; (iii) each Member hereby waives any potential conflict of interest resulting
from Jones Day’s representation of GAP and GAP’s Affiliates with respect to this Agreement and the Company with respect
to other related and unrelated matters; (iv) Operating Member and SRT agree and acknowledge that in the event of a default on the
part of Operating Member and/or SRT under this Agreement, Jones Day shall be free to represent the Company, GAP and GAP’s
Affiliates in the enforcement of this Agreement; and (v) GAP agrees and acknowledges that in the event of a default on the part
of GAP under this Agreement, Boutin Jones shall be free to represent Operating Member and/or SRT in the enforcement of this Agreement.


 


14.19      Cooperation


 


In the event that GAP in
good faith proposes a restructuring of the Company in order to avoid the imposition of a corporate tax on any income of the Company
or to minimize the effects of any UBTI on GAP and/or its direct or indirect partners, members or shareholders, Operating Member
shall cooperate with and consent to such restructuring, provided same does not materially adversely affect Operating Member or
SRT.


 


[SIGNATURES ON NEXT PAGE]


 




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IN WITNESS WHEREOF, the
parties hereto have executed this Agreement as of the date set forth in the introductory paragraph hereof.


 


	 	Operating Member:
	 	 
	 	GLB SGO, LLC,
	 	a Delaware limited liability company
	 	 
	 	By:	 
	 	Name:  Andrew Batinovich
	 	Title:  President and Chief Executive Officer


 


Signatures Continue on Next Page


 




    	 



    	 



    

  


	 	SRT:
	 	 
	 	SRT SGO, LLC, 
	 	A Delaware limited liability company
	 	 	 
	 	By:	STRATEGIC REALTY OPERATING PARTNERSHIP, L.P., 
	 	 	a Delaware limited partnership,
	 	 	its sole member
	 	 	 	 
	 	 	By:	STRATEGIC REALTY TRUST, INC.,
	 	 	 	a Maryland corporation, 
	 	 	 	its general partner
	 	 	 	 
	 	 	 	By:	 
	 	 	 	Name: Andrew Batinovich 
	 	 	 	Title:  President and Chief Executive Officer


 


Signatures Continue on Next Page


 




    	 



    	 



    

 


 


	 	GAP:
	 	 
	 	GROCERY RETAIL GRAND AVENUE PARTNERS, LLC,
	 	a Delaware limited liability company
	 	 
	 	By:	 
	 	Name:	 
	 	Its:  Authorized Signatory
	 	 
	 	By:	 
	 	Name:	 
	 	Its:  Authorized Signatory
	 	 	 	 





Signature Page – Limited Liability
Company Agreement – SGO Retail Acquisitions Venture, LLC


 




    	 



    	 



    

  


EXHIBIT A


 


PROPERTY MANAGEMENT AGREEMENT


 


[SEE ATTACHED]


 




    	 



    	 



    

  


EXHIBIT B


 


INTENTIONALLY OMITTED


 




    	 



    	 



    

  


EXHIBIT C


 


EXAMPLE OF OPERATION OF CALCULATION SET FORTH
IN SECTION 4.02(c)


 


By way of example only,
and without limitation, assume that on the Effective Date, the Members made Capital Contributions aggregating $1,000,000, of which
$800,000 was made by GAP, with a Percentage Interest of 80.0%, $190,000 was made by SRT with a Percentage Interest of 19%, and
$10,000 was made by Operating Member, with a Percentage Interest of 1.0%. Subsequent to the Effective Date, the Managing Member
calls for Additional Capital Contributions of $500,000 in the aggregate (the “Additional Capital Call”), of
which GAP is responsible for $400,000, SRT is responsible for $95,000 and Operating Member is responsible for $5,000. GAP and Operating
Member each make their shares of the Additional Capital Call, but SRT does not, and GAP and Operating Member each (based on their
relative Percentage Interests)* also make the $95,000 contribution on behalf of SRT. Such $95,000 is a “Substituted Capital
Contribution”, and after the Additional Capital Call is funded, the Members’ Percentage Interests shall have been adjusted
as follows, in accordance with Section 4.02(c):


 


1.         GAP:
The adjusted Percentage Interest of GAP, in the aggregate, is calculated by dividing (1) the positive difference, if any, between
(a) the sum of (i) one hundred percent (100%) of the aggregate Capital Contributions (excluding Substituted Capital Contributions)
then or theretofore made by GAP to the Company ($1,200,000), plus (ii) 200% of the Substituted Capital Contributions then
or theretofore made by GAP to the Company ($93,827.16), minus (b) the Excess Amounts attributable to the Substituted Capital
Contributions then or theretofore made by SRT to the Company ($0), by (2) one hundred percent (100%) of the aggregate Capital
Contributions (including without limitation Substituted Capital Contributions) then or theretofore made by all of the Members to
the Company ($1,500,000). This results in a Percentage Interest for GAP of (i) the sum of $1,200,000 plus $187,654.32, divided
by (ii) $1,500,000 = 92.51%.


 


2.         Operating
Member: The adjusted Percentage Interest of Operating Member, in the aggregate, is calculated by dividing (1) the positive difference,
if any, between (a) the sum of (i) one hundred percent (100%) of the aggregate Capital Contributions (excluding Substituted
Capital Contributions) then or theretofore made by Operating Member to the Company ($15,000), plus (ii) 200% of the Substituted
Capital Contributions then or theretofore made by Operating Member to the Company ($1,172.84), minus (b) the Excess Amounts
attributable to the Substituted Capital Contributions then or theretofore made by SRT to the Company ($0), by (2) one hundred
percent (100%) of the aggregate Capital Contributions (including without limitation Substituted Capital Contributions) then or
theretofore made by all of the Members to the Company ($1,500,000). This results in a Percentage Interest for Operating Member
of (i) the sum of $15,000 plus $2,345.68, divided by (ii) $1,500,000 = 1.16%.


 




    	 



    	 



    

  


3.         SRT:
SRT’s adjusted Percentage Interest is calculated by dividing (1) the positive difference, if any, between (a) the
sum of (i) one hundred percent (100%) of the aggregate Capital Contributions (excluding Substituted Capital Contributions)
then or theretofore made by SRT to the Company ($190,000), plus (ii) 200% of the Substituted Capital Contributions then or
theretofore made by SRT to the Company ($0), minus (b) the Excess Amounts attributable to the Substituted Capital Contributions
then or theretofore made by GAP and Operating Member to the Company ($93,827.16 and ($1,172.84, respectively), by (2) one
hundred percent (100%) of the aggregate Capital Contributions (including without limitation Substituted Capital Contributions)
then or theretofore made by all of the Members to the Company ($1,500,000). This results in a Percentage Interest for SRT of (i)
the difference between $190,000 minus $95,000, divided by (ii) $1,500,000 = 6.33%.


 


*Relative Percentage Interests
are calculated by dividing the Percentage Interest of a Member by the aggregate Percentage Interest of all contributing Members
(i.e., 80/(80+1) = 98.77% and 1/(80+1) = 1.23%, respectively).


 




    	-2-



    	 



    

  


EXHIBIT D


 


PERFORMANCE GOALS


 


Investment must (i) achieve 90% of budgeted
NOI based on projections at closing and (ii) maintain leases covering in excess of 75% of the rentable square footage of all properties
comprising the Investment. Oaktree may assign Operating Member’s Incentive Fee to a replacement third party upon a specified
termination event relating to “bad boy” acts of the Operating Member or violation of the Performance Tests.


 


Budgeted Net Operating Income


 


	 	 	Yr 1	 	Yr 2	 	Yr 3	 	Yr 4	 	Yr 5
	Aurora Commons - Office	 	$	103,783	 	 	$	122,995	 	 	$	135,802	 	 	$	144,896	 	 	$	148,587	 
	Aurora Commons - Retail	 	 	554,960	 	 	 	635,590	 	 	 	646,705	 	 	 	636,246	 	 	 	642,877	 
	Constitution Trail	 	 	1,999,228	 	 	 	2,189,356	 	 	 	2,357,942	 	 	 	2,510,337	 	 	 	2,537,873	 
	Osceola Village	 	 	1,440,618	 	 	 	1,635,762	 	 	 	1,658,377	 	 	 	1,628,515	 	 	 	1,468,885	 
	Total Budgeted NOI	 	$	4,098,589	 	 	$	4,583,703	 	 	$	4,798,826	 	 	$	4,919,994	 	 	$	4,798,222	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	% of Budgeted NOI	 	 	90	%	 	 	90	%	 	 	90	%	 	 	90	%	 	 	90	%
	NOI Threshold	 	$	3,688,730	 	 	$	4,125,333	 	 	$	4,318,943	 	 	$	4,427,995	 	 	$	4,318,400	 



 









    	 



    	 



    

  


SCHEDULE A


 


ESTIMATED REQUIRED INITIAL CAPITAL CONTRIBUTIONS


 


	Operating Member: 	 	$239,437.94
	 	 	 
	GAP: 	 	 $19,155,035.46
	 	 	 
	SRT:  	 	$4,549,320.92


 




    	 



    	 



    

  


SCHEDULE B


 


INITIAL COMPANY PROPERTY


 


PROPERTY DESCRIPTION OF AURORA COMMONS PROPERTY


 


The land referred to herein below is situated
in the City of Aurora, County of Portage, State of Ohio, described as follows:


 


TRACT I:


 


Parcel "A"


 


Situated in the City of Aurora, County of Portage,
State of Ohio and known as being part of Original Aurora Township, Lot No. 18 and is further bounded and described as follows:
Beginning at a 7/8" iron pin found at the intersection of the center line of West Garfield Road (State Route 82) (60 feet
wide) with the center line of Bissell Road (50 feet wide). Thence South 89° 41’ 30" East, along said center line
of West Garfield Road, a distance of 808.88 feet to a P.K. nail found at the Northeasterly corner of Parcel No. 4 of land conveyed
to Aurora Commons Phase Two, LLC by deed recorded in Document No. 200205196 of Portage County Records and the principal place of
beginning of the land herein described;


 


Course 1 Thence South 89°-41’-30"
East, continuing along said center line of West Garfield Road, a distance of 483.87 feet;


 


Course 2 Thence South 00°-18’-30"
West, passing through a 5/8" iron pin (Neff-7065) set at 30.00 feet, the Southerly right of way line of said West Garfield
Road, a distance of 214.71 feet to a 5/8" iron pin (Neff-7065) set;


 


Course 3 Thence South 53°-36’-19"
East, a distance of 85.93 feet to a 5/8" iron pin (Neff-7065) set;


 


Course 4 Thence South 08°-09’-00"
East, a distance of 157.55 feet to a 5/8" iron pin (Neff-7065) set in the Northwesterly line of Parcel No. 2 of land so conveyed
to the aforesaid Aurora Commons Phase Two, LLC;


 


Course 5 Thence South 67°-18’-30"
West, along said Northwesterly line of Parcel No. 2, a distance of 28.74 feet to a magnetic nail found at a Northwesterly corner
thereof;


 


Course 6 Thence South 08°-09’-00"
East, along a Westerly line of said Parcel No. 2 and along a Westerly line of a parcel of land conveyed to the City of Aurora by
deed recorded in Document No. 201108720 of Portage County Records, a distance of 1109.28 feet to a Southwesterly corner thereof.
Said corner marked by a 1/2" iron pin found South 66°-58’-29" West, a distance of 0.52 feet;


 


Course 7 Thence North 82°-15’-00"
East, along a Southerly line of land so conveyed to the City of Aurora, a distance of 73.14 feet to a 1/2" iron pin found
at an interior corner thereof;


 


Course 8 Thence South 07°-59’-20"
East, along a Westerly line of land so conveyed to the City of Aurora, a distance of 249.75 feet to a P.K. nail found at a Southwesterly
corner thereof and the center line of West Pioneer Trail (60 feet wide);


 


Course 9 Thence South 82°-00’-42"
West, along said center line of West Pioneer Trail, a distance of 60.00 feet to a P.K. nail found at a Southeasterly corner of
a parcel of land conveyed to the City of Aurora by deed recorded in Document No. 200121047 of Portage County Records;


 


Course 10 Thence North 07°-59’-20"
West, along an Easterly line of land so conveyed to the City of Aurora, as last aforesaid, a distance of 30.00 feet to a P.K. nail
found at an angle point therein and the Northerly right of way line of said West Pioneer Trail;


 


Course 11 Thence North 26°-24’-10"
West, continuing along said Easterly line of land so conveyed to the City of Aurora, as last aforesaid, a distance of 232.11 feet
to a 1/2" iron pin found at an angle point therein;


 




    	 



    	 



    

  


Course 12 Thence North 08°-09’-00"
West, continuing along said Easterly line of land so conveyed to the City of Aurora, as last aforesaid and along the Easterly line
of a parcel of land conveyed to the United States Postal Service by deed recorded in Volume 1087, Page 664 of Portage County Records,
a distance of 625.06 feet to a 1/2" iron pin found at the Northeasterly corner thereof;


 


Course 13 Thence North 61°-16’-00"
West, along the Northeasterly line of land so conveyed to the United States Postal Service, a distance of 218.47 feet to a magnetic
nail found at the Northwesterly corner thereof;


 


Course 14 Thence South 28°-44’-00"
West, along the Northwesterly line of land so conveyed to the United States Postal Service, a distance of 240.00 feet to a magnetic
nail found at the Southwesterly corner thereof;


 


Course 15 Thence South 61°-16’-00"
East, along the Southwesterly line of land so conveyed to the United States Postal Service, a distance of 54.74 feet to a 5/8"
iron pin (Neff-7065) set at an angle point in the Northeasterly line of Parcel No. 2 of land conveyed to TNP SRT Aurora Commons,
LLC by deed recorded in Document No. 201205050 of Portage County Records;


 


Course 16 Thence South 56°-26’-46"
West, along said Northeasterly line of Parcel No. 2, a distance of 66.63 feet to a 5/8" iron pin (Neff-7065) set at an angle
point therein;


 


Course 17 Thence North 61°-09’-00"
West, continuing along said Northeasterly line of Parcel No. 2, a distance of 180.00 feet to a magnetic nail set at an angle point
therein;


 


Course 18 Thence North 73°-09’-00"
West, continuing along said Northeasterly line of Parcel No. 2, a distance of 270.98 feet to a 5/8" iron pin (Neff-7065) set
at the Northwesterly corner thereof and the Easterly line of a parcel of land conveyed to Aurora Manor Limited Partnership by deed
recorded in Document No. 201114790 of Portage County Records;


 


Course 19 Thence North 02°-55’-20"
West, along said Easterly line of land so conveyed to Aurora Manor Limited Partnership and along the aforesaid Easterly line of
Parcel No. 4 of land so conveyed to Aurora Commons Phase Two, LLC, a distance of 322.68 feet to a 5/8" iron pin (Dudley-6747)
found at an angle point therein;


 


Course 20 Thence North 17°-34’-18"
East, along said Easterly line of Parcel No. 4, a distance of 633.33 feet to the principal place of beginning and containing 16.2705
Acres (708,744 Square Feet) of land according to a survey made by Thomas J. Neff, Jr. Registered Surveyor No. 7065-Ohio in April
2012.


 


The subject premises being part of Parcel No.
1 of land conveyed to TNP SRT Aurora Commons, LLC by deed recorded in Document No. 201205050 of Portage County Records.


 


The basis of bearings for the premises surveyed
is South 89°-41’-30" East, as the center line of West Garfield Road (State Route 82) as evidenced by the deed recorded
in Document No. 201205050 of Portage County Records.


 


Parcel "B"


 


Situated in the City of Aurora, County of Portage,
State of Ohio and known as being part of Original Aurora Township, Lot No. 18 and is further bounded and described as follows:
Beginning at a 7/8" iron pin found at the intersection of the center line of West Garfield Road (State Route 82) (60 feet
wide) with the center line of Bissell Road (50 feet wide). Thence South 89°-41’-30" East, along said center line
of West Garfield Road, a distance of 808.88 feet to a P.K. nail found at the Northeasterly corner of Parcel No. 4 of land conveyed
to Aurora Commons Phase Two, LLC by deed recorded in Document No. 200205196 of Portage County Records, the same being the Northwesterly
corner of Parcel No. 1 of land conveyed to TNP SRT Aurora Commons, LLC by deed recorded in Document No. 201205050 of Portage County
Records. Thence South 89°-41’-30" East, continuing along said centerline of West Garfield Road, a distance of 483.87
feet to the principal place of beginning of the land herein described;


 


Course 1 Thence South 89°-41’-30"
East, continuing along said center line of West Garfield Road, a distance of 537.05 feet to a magnetic nail found at the Northwesterly
corner of a parcel of land conveyed to Kallstrom Taylor Partnership, LLC by deed recorded in Document No. 2000025053 of Portage
County Records;


 




    	 



    	 



    

  


Course 2 Thence South 00°-18’-30"
West, along the Westerly line of land so conveyed to Kallstrom Taylor Partnership, LLC, a distance of 270.00 feet to a 1/2"
iron pin found at the Northeasterly corner of Parcel No. 2 of land conveyed to Aurora Commons Phase Two, LLC by deed recorded in
Document No. 200205196 of Portage County Records;


 


Course 3 Thence North 89°-41’-30"
West, along the Northerly line of said Parcel No. 2, a distance of 265.00 feet to a magnetic nail found at a Northwesterly corner
thereof;


 


Course 4 Thence South 00°-18’-30"
West, along a Westerly line of said Parcel No. 2, a distance of 75.00 feet to a 1/2" iron pin found at an interior corner
thereof;


 


Course 5 Thence South 67°-18’-30"
West, along the Northwesterly line of said Parcel No. 2, a distance of 194.93 feet to a magnetic nail set;


 


Course 6 Thence North 08°-09’-00"
West, a distance of 157.55 feet to a 5/8" iron pin (Neff-7065) set;


 


Course 7 Thence North 53°-36’-19"
West, a distance of 85.93 feet to a 5/8" iron pin (Neff-7065) set;


 


Course 8 Thence North 00°-18’-30"
East, passing through a 5/8" iron pin (Neff-7065) set at 184.71 feet, the Southerly right of way line of aforesaid West Garfield
Road, a distance of 214.71 feet to the principal place of beginning and containing 3.7858 acres (164,909 Square Feet) of land according
to a survey made by Thomas J. Neff, Jr. Registered Surveyor No. 7065-Ohio in April of 2012.


 


The subject premises being part of Parcel No.
1 of land conveyed to TNP SRT Aurora Commons, LLC by deed recorded in Document No. 201205050 of Portage County Records.


 


The basis of bearings for the premises surveyed
is South 89°-41’-30" East, as the center line of West Garfield Road (State Route 82) as evidenced by the deed recorded
in Document No. 201205050 of Portage County Records.


 


Parcel "C"


 


Situated in the City of Aurora, County of Portage,
State of Ohio and known as being part of Original Aurora Township, Lot No. 18 and is further bounded and described as follows:
Beginning at a 7/8" iron pin found at the intersection of the center line of West Garfield Road (State Route 82) (60 feet
wide) with the center line of Bissell Road (50 feet wide). Thence South 89°-41’-30" East, along said center line
of West Garfield Road, a distance of 808.88 feet to a P.K. nail found at the Northwesterly corner of Parcel No. 1 of land conveyed
to TNP SRT Aurora Commons, LLC by deed recorded in Document No. 201205050 of Portage County Records.


 


Thence South 17°-34’-18" West,
along the Westerly line of said Parcel No. 1, a distance of 633.33 feet to an angle point therein. Thence South 02°-55’-20"
East, continuing along said Westerly line of Parcel No. 1 and along the Easterly line of a parcel of land conveyed to Aurora Manor
Limited Partnership by deed recorded in Document No. 201114790 of Portage County Records, a distance of 322.68 feet to a 5/8"
iron pin (Neff-7065) set at the Southwesterly corner of said Parcel No. 4 and the principal place of beginning of the land herein
described;


 


Course 1 Thence South 73°-09’-00"
East, along the Southwesterly line of said Parcel No. 1, a distance of 270.98 feet to a magnetic nail set at an angle point therein;


 


Course 2 Thence South 61°-09’-00"
East, continuing along said Southwesterly line of Parcel No. 1, a distance of 180.00 feet to a 5/8" iron pin (Neff-7065) set
at an angle point therein;


 


Course 3 Thence North 56°-26’-46"
East, continuing along said Southwesterly line of Parcel No. 1, a distance of 66.63 feet to a 5/8" iron pin (Neff-7065) set
at a Southeasterly corner thereof and the Southwesterly line of a parcel of land conveyed to the United States Postal Service by
deed recorded in Volume 1087, Page 664 of Portage County Records;


 


Course 4 Thence South 61°-16’-00"
East, along said Southwesterly line of land so conveyed to the United States Postal Service, a distance of 290.81 feet to a 5/8"
iron pin (Neff-7065) set at an angle point in the Northerly line of a parcel of land conveyed to the City of Aurora by deed recorded
in Document No. 200121047 of Portage County Records;


 




    	 



    	 



    

  


Course 5 Thence South 82°-54’-59"
West, along said Northerly line of land so conveyed to the City of Aurora and along the Northerly line of a parcel of land conveyed
to the City of Aurora by deed recorded in Document No. 200121046 of Portage County Records, a distance of 714.79 feet to a 1/2"
iron pin found at the Southeasterly corner of land so conveyed to the aforesaid Aurora Manor Limited Partnership;


 


Course 6 Thence North 02°-55’-20"
West, along the Easterly line of land so conveyed to Aurora Manor Limited Partnership, a distance of 356.99 feet to the principal
place of beginning and containing 3.1379 Acres (136,687 Square Feet) of land according to a survey made by Thomas J. Neff, Jr.
Registered Surveyor No. 7065-Ohio in April of 2012.


 


The subject premises being part of Parcel No.
2 of land conveyed to TNP SRT Aurora Commons, LLC by deed recorded in Document No. 201205050 of Portage County Records.


 


The basis of bearings for the premises surveyed
is South 89°-41’-30" East, as the center line of West Garfield Road (State Route 82) as evidenced by the deed recorded
in Document No. 201205050 of Portage County Records.


 


TRACT II:


 


Together with a non-exclusive Reciprocal Easement
recorded November 22, 1989 as Volume 1087, Page 166 of Portage County Records.


 


TRACT III:


 


Together with a non-exclusive Reciprocal Easement
recorded March 23, 2012 as Document No. 201205052 and First Amendment recorded April 6, 2012 as Document No. 201205965, of Portage
County Records.


 


APN: 
03-018-00-00-032-012 and 03-018-00-00-033-000 and 03-018-00-00-033-001 


 




    	 



    	 



    

 


 


PROPERTY DESCRIPTION
OF CONSTITUTION TRAIL PROPERTY


 


Real property in the City of Normal, County of
McLean, State of Illinois, described as follows:


 


TRACT NO. 1:


 


LOTS 1, 2, 3, 6 AND 8 AND OUTLOTS 5, 7, 12 AND
500, 502, AND 503 IN THE CONSTITUTION TRAIL CENTRE SUBDIVISION, ACCORDING TO THE PLAT THEREOF RECORDED AUGUST 7, 2007 AS DOCUMENT
NUMBER 2007-21949, IN MCLEAN COUNTY, ILLINOIS;


 


EXCEPTING:


 


THE SECOND ADDITION TO CONSTITUTION TRAIL CENTRE
A PLANNED UNIT DEVELOPMENT IN THE TOWN OF NORMAL, ACCORDING TO THE PLAT THEREOF RECORDED JUNE 5, 2008 AS DOCUMENT NUMBER 2008-15763,
IN MCLEAN COUNTY, ILLINOIS;


 


EXCEPTING:


 


THE THIRD ADDITION TO CONSTITUTION TRAIL CENTRE
A PLANNED UNIT DEVELOPMENT IN THE TOWN OF NORMAL, ACCORDING TO THE PLAT THEREOF RECORDED JUNE 5, 2008 AS DOCUMENT NUMBER 2008-15764,
IN MCLEAN COUNTY, ILLINOIS.


 


EXCEPTING:


 


THE FIRST ADDITION TO CONSTITUTION TRAIL CENTRE
A PLANNED UNIT DEVELOPMENT IN THE TOWN OF NORMAL, ACCORDING TO THE PLAT THEREOF RECORDED FEBRUARY 20, 2009 AS DOCUMENT NUMBER 2009-4743,
IN MCLEAN COUNTY, ILLINOIS.


 


EXCEPTING:


 


THE FOURTH ADDITION TO CONSTITUTION TRAIL CENTRE
A PLANNED UNIT DEVELOPMENT IN THE TOWN OF NORMAL, ACCORDING TO THE PLAT THEREOF RECORDED JULY 1, 2009 AS DOCUMENT NUMBER 2009-20923,
IN MCLEAN COUNTY, ILLINOIS.


 


TRACT 1A:


 


EASEMENTS CONTAINED IN THAT CERTAIN RECORD DECLARATION
OF EASEMENT AND OPERATIONS AGREEMENT DATED AUGUST 31, 2007 AND RECORDED SEPTEMBER 11, 2007 AS DOCUMENT NUMBER 2007-00025124, IN
MCLEAN COUNTY, ILLINOIS.


 


TRACT NO. 2:


 


INTENTIONALLY DELETED.


 




    	 



    	 



    

  


TRACT NO. 3:


 


OUTLOT 509 IN THE THIRD ADDITION TO CONSTITUTION
TRAIL CENTRE A PLANNED UNIT DEVELOPMENT IN THE TOWN OF NORMAL, ACCORDING TO THE PLAT THEREOF RECORDED JUNE 5, 2008 AS DOCUMENT
NUMBER 2008-15764, IN MCLEAN COUNTY, ILLINOIS.


  


TRACT NO. 4:


 


LOT 20 AND OUTLOTS 506 AND 507 IN THE FIRST ADDITION
TO CONSTITUTION TRAIL CENTRE A PLANNED UNIT DEVELOPMENT IN THE TOWN OF NORMAL, ACCORDING TO THE PLAT THEREOF RECORDED FEBRUARY
20, 2009 AS DOCUMENT NUMBER 2009-4743, IN MCLEAN COUNTY, ILLINOIS.


 


TRACT NO. 5:


 


LOT 9 AND OUTLOT 510 IN THE FOURTH ADDITION TO
CONSTITUTION TRAIL CENTRE A PLANNED UNIT DEVELOPMENT IN THE TOWN OF NORMAL, ACCORDING TO THE PLAT THEREOF RECORDED JULY 1, 2009
AS DOCUMENT NUMBER 2009-20923, IN MCLEAN COUNTY, ILLINOIS.


 





APN's: 

14-16-454-001

14-16-454-002

14-16-454-004

14-16-380-001

14-16-379-004

14-16-380-002

14-16-379-005

14-16-379-001

14-16-454-003

14-16-326-003

14-16-326-002

14-16-405-002

14-16-404-004

14-16-404-003

14-16-404-005

14-16-404-006

14-16-379-008

14-16-379-009


 




    	 



    	 



    

  


PROPERTY DESCRIPTION
OF OSCEOLA vILLAGE PROPERTY


 


Real property in the City of Kissimmee, County of Osceola, State
of Florida, described as follows:


 


PARCEL 1:


 


LOTS 1, 3, 4, 5, 6, 7, AND 8, INCLUSIVE, OSCEOLA VILLAGE, ACCORDING
TO THE PLAT THEREOF, AS RECORDED IN PLAT BOOK 21, PAGES 17 AND 18, INCLUSIVE, OF THE PUBLIC RECORDS OF OSCEOLA COUNTY, FLORIDA.


 


PARCEL 2:


 


EASEMENT RIGHTS, AS CONTAINED IN THAT CERTAIN ACCESS AND EASEMENT
AGREEMENT, RECORDED IN OFFICIAL RECORDS BOOK 3300, PAGE 2533, OF THE PUBLIC RECORDS OF OSCEOLA COUNTY, FLORIDA.


 


PARCEL 3:


 


EASEMENTS CONTAINED IN THAT CERTAIN DECLARATION OF COVENANTS, CONDITIONS
AND RESTRICTIONS FOR OSCEOLA VILLAGE, RECORDED IN OFFICIAL RECORDS BOOK 4317, PAGE 250, OF THE PUBLIC RECORDS OF OSCEOLA COUNTY,
FLORIDA.


 


APN:  R052529-188200010010 and R052529-188200010030
and R052529-188200010040 and R052529-188200010050 and R052529-188200010060 and R052529-188200010070 and R052529-188200010080 


 




    	 



    	 



    

  


SCHEDULE C


 


SAMPLE CALCULATION OF ASSET MANAGEMENT FEE


 


	 	 	Investment 

Value
	Aurora Commons	 	$	8,500,000	 
	Constitution Trail	 	$	23,100,000	 
	Osceola Village	 	$	22,000,000	 
	 	 	$	53,600,000	 
	 	 	 	 	 
	Asset Fee (monthly)	 	 	0.020830	%
	 	 	 	 	 
	Monthly Fee	 	$	11,164.88	 



 




    	 



    	 



    

  


SCHEDULE D


 


INTENTIONALLY OMITTED


 




    	 



    	 



    

  


SCHEDULE E


 


ONGOING CLASS ACTION AGAINST SRT


 


Case No. 13-CV-04921-JST currently pending
before the United States District Court for the Northern District of California [captioned as LEWIS BOOTH, as Trustee for the Booth
Trust dated 11-20-96, and STEPHEN DREWS, on behalf of themselves and all others similarly situated, Plaintiffs, v. STRATEGIC REALTY
TRUST, INC. (f/k/a TNP STRATEGIC RETAIL TRUST, INC.), THOMPSON NATIONAL PROPERTIES, LLC, TNP STRATEGIC ADVISOR, LLC, TNP SECURITIES,
LLC, ANTHONY W. THOMPSON, CHRISTOPHER S. CAMERON, JAMES R. WOLFORD, JACK R. MAURER, PHILLIP I. LEVIN, ARTHUR M. FRIEDMAN, JEFFREY
S. ROGERS, ROBERT N. RUTH, and PETER K. KOMPANIEZ, Defendants].