Document:

INDEMNITY

(Lahaina Gateway)

 

This Indemnity is
dated as of June 10, 2013, and is given to DOF IV REIT HOLDINGS, LLC, a Delaware limited liability company (“Lender”),
DOF IV LAHAINA, LLC, a Delaware limited liability company (“DOF IV Lahaina”), TORCHLIGHT LOAN SERVICES, LLC,
a limited liability company, and TORCHLIGHT INVESTORS, LLC, a limited liability company (all collectively, “Indemnitees”),
by TNP STRATEGIC RETAIL TRUST, INC., a Maryland corporation to be renamed STRATEGIC REALTY TRUST, INC. (“Indemnitor”),
and is effective as of the Closing Date (as defined in that certain Deed in Lieu of Foreclosure Agreement by and among TNP SRT
LAHAINA GATEWAY, LLC, a Delaware limited liability company to be renamed SRT LAHAINA GATEWAY, LLC (“Borrower”), Lender
and Indemnitor dated as of June 10, 2013 (the “Agreement”)).

 

Indemnitor has advised
Indemnitees of Indemnitor’s intention to terminate: (i) the Property and Asset Management Agreement by and between Borrower
and TNP Property Manager, LLC, dated as of November 9, 2012, together with other property management agreements between other affiliates
of Indemnitor and TNP Property Manager, LLC, (ii) the Advisory Agreement between Indemnitor, TNP Strategic Retail Operating Partnership,
LP and TNP Strategic Advisor, LLC, and (iii) the authority of certain officers and directors of affiliates of Indemnitor which
are not under substantially the same control as Indemnitor (all collectively, the “Terminations”).

 

Indemnitor has also
advised Indemnitees that Indemnitor has been unable to obtain an estoppel and consent from the Ground Lessor under the Ground Lease
(both as defined in the Agreement) the delivery of which is a condition to Closing under Section 4.2.2.12 of the Agreement, and
Borrower and Indemnitor have therefore requested that Lender close the transaction without such estoppel and consent.

 

Pursuant to the Agreement,
effective as of the Closing Date but with respect to all matters whether arising before or after the Closing Date, Indemnitor hereby
agrees to indemnify, defend, and hold harmless Indemnitees and each of their respective officers, directors, members, managers,
principals, partners, shareholders, affiliates, agents, employees, accountants, attorneys, and legal representatives (collectively,
the “Indemnitee Parties”), from and against any and all claims, causes of action, liability, damages, losses,
judgments, awards, costs and expenses, including reasonable attorneys’ and experts’ fees, costs and expenses incurred
by legal counsel chosen by Indemnitee Parties in their sole discretion, arising from or related to any or all of the following:
(a) the Terminations, (b) the Agreement or the transaction contemplated thereby, (c) the absence of consent by the Ground Lessor
to such transaction, or any assertion by the Ground Lessor that consent is required for such transaction, (d) the absence of a
waiver by the Ground Lessor, with respect to such transaction, of the right of first offer set forth in the Ground Lease (the “ROFO”),
or any assertion by the Ground Lessor that the ROFO applies to such transaction, or (e) the assertion by the Ground Lessor that
there has occurred any breach or default by Borrower under the Ground Lease prior to or by reason of the closing of such transaction
(all collectively, “Claims”); provided, however, that for purposes of the indemnity as to Claims within the
foregoing parts (c), (d) and (e), the “Indemnitee Parties” shall be DOF IV Lahaina and its successors, assigns, officers,
directors, members, managers, principals, partners, shareholders, affiliates, agents, employees, accountants, attorneys, and legal
representatives.

 

Indemnitor’s
liability under this Indemnity is independent of, in addition to, and not in any way limited by, Indemnitor’s liability under
that certain Guaranty and that certain Environmental Indemnity Agreement, both dated as of November 9, 2012, executed by Indemnitor
in favor of Lender with respect to the Loan (as defined in the Agreement).

 

    	Lahaina Indemnity	1	 

    	 

    

 

By its acceptance of this Indemnity as
to Claims within parts (b), (c), (d) and (e) above, DOF IV Lahaina agrees to cooperate with Indemnitor, upon Indemnitor’s
reasonable requests and at the sole cost and expense of Indemnitor, so as to permit Indemnitor to perform its duties of indemnity
with respect thereto. If a Claim arises within part (d) above, and if Indemnitor reasonably determines that resolution of the Claim
may be facilitated by the giving of a ROFO notice to the Ground Lessor by Borrower with respect to the transaction contemplated
by the Agreement, DOF IV Lahaina agrees that such notice may be given, provided that exercise of the ROFO by Ground Lessor would
result in payment to DOF IV Lahaina of an amount equal to the entire principal balance of the Loan as of the Closing Date, plus
the Yield Maintenance Premium (as defined in the Loan Agreement), plus interest and all other amounts due in respect of the Loan.

 

Indemnitor hereby
represents, warrants and covenants that it (i) has been provided with adequate information regarding this Indemnity and the subject
matter hereof, (ii) has had adequate opportunity to consult legal counsel of Indemnitor’s choice regarding this Indemnity,
(iii) has executed and delivered this Indemnity pursuant to the free will of the Indemnitor, and (iv) has executed this Indemnity
on a fully informed basis and with full knowledge of the consequences thereof.

 

This Indemnity shall
be governed by and interpreted in accordance with the laws of the State of New York applicable to contracts made and to be performed
in such state, without regard to conflict of law provisions, pursuant to Section 5-1401 of the New York General Obligations Law.
Any action or proceeding against any party arising out of or relating to this Indemnity must be instituted exclusively in the federal
or state courts located in the City of New York, County of New York. Each party irrevocably (i) agrees and consents that such courts
shall have subject matter and specific personal jurisdiction over the parties and that venue in such courts is proper, (ii) waives
any objections it may now or hereafter have to such jurisdiction or venue, (iii) waives any right to move for dismissal of any
such action or proceeding on grounds of forum non conveniens, and (iv) acknowledges and agrees that Section 5-1402 of the New York
General Obligations Law requires adjudication of any such suit, action or proceeding in such courts.

 

Following the assertion
or threatened assertion of any Claim against any Indemnitee Party, Indemnitor shall immediately reimburse Indemnitee Parties for
all fees and costs, including reasonable attorneys’ and experts’ fees, costs and expenses incurred by Indemnitee Parties,
whether before or after any judgment, for enforcement of this Indemnity or any of its terms, or the exercise of any rights or remedies
hereunder and/or at law, in equity or otherwise, whether or not any action or proceeding is filed.

 

If any term, provision,
covenant or condition of this Indemnity is held by a court of competent jurisdiction to be invalid, void or unenforceable, the
remainder of this Indemnity shall remain in full force and effect and shall in no way be affected, impaired, invalidated or rendered
unenforceable.

 

[SIGNATURE FOLLOWS ON NEXT PAGE]

 

    	Lahaina Indemnity	2	 

    	 

    

 

IN WITNESS WHEREOF, Indemnitor has executed
this Indemnity as of the Closing Date as set forth above.

 

	INDEMNITOR:	TNP STRATEGIC RETAIL TRUST, INC., a
	 	Maryland corporation
	 	 
	 	By:	/s/ Jeffrey Rogers
	 	Name:   	Jeffrey Rogers
	 	Title:	Chairman 
	 	 	Authorized Agent
	 	 	 

 

    	Lahaina Indemnity	3This space reserved for Recorder's use only
	 	 

 

SECOND OMNIBUS AMENDMENT TO LOAN DOCUMENTS

 

by and between

 

TORCHLIGHT DEBT OPPORTUNITY FUND III,
LLC,

a Delaware limited liability company

 

and

 

TNP SRT CONSTITUTION TRAIL, LLC,

a Delaware limited liability company

 

Dated as of June 10, 2013

 

PREPARED BY AND

AFTER RECORDING RETURN TO:

 

Jess R. Bressi, Esq.

McKenna Long & Aldridge LLP

2030 Main Street, 10th Floor

Irvine, CA 92614

 

    	Second Omnibus Amendment	1	 

    	 

    

 

SECOND OMNIBUS AMENDMENT TO LOAN DOCUMENTS

 

This SECOND OMNIBUS
AMENDMENT TO LOAN DOCUMENTS (the “Second Amendment”) is made as of June 10, 2013, by and between TORCHLIGHT
DEBT OPPORTUNITY FUND III, LLC, a Delaware limited liability company having an office c/o Torchlight Investors, 230 Park Avenue,
12th Floor, New York, New York 10169 (together with its successors, transferees, and assigns, “Lender”) and
TNP SRT CONSTITUTION TRAIL LLC, a Delaware limited liability company, having an office at 4695 MacArthur Court, Suite 1100, Newport
Beach, CA 92660 (“Borrower”).

 

RECITALS:

 

A.           Lender
is the owner and holder of a loan in the original principal amount of $15,543,696 (the “Loan”) made to Borrower
on or about October 21, 2011, by TL DOF III Holding Corporation, a Delaware corporation (“Original Lender”).
On or about December 15, 2011, Original Lender assigned all of its right, title and interest in the Loan to Lender.

 

B.           The
Loan is secured by, among other things:

 

(1)         that
certain Mortgage, Security Agreement and Assignment of Leases and Rents, dated October 21, 2011, by Borrower in favor of Original
Lender (as subsequently amended, as described in Recital C below, the “Mortgage”), recorded October 26, 2011,
as Document Number 2011-00023661 in the Registrar of Deeds of McLean County, Illinois, which was assigned by Original Lender to
Lender pursuant to that certain Assignment of Mortgage dated as of December 15, 2011, recorded December 28, 2011, as Document
Number 2011-00029407 in the Registrar of Deeds of McLean County, Illinois; and

 

(2)         that
certain Assignment of Leases and Rents, dated October 21, 2011, by Borrower in favor of Original Lender (as subsequently amended,
as described in Recital C below, the “Assignment of Leases and Rents”), recorded October 26, 2011, as Document
Number 2011-00023662 in the Registrar of Deeds of McLean County, Illinois, which was assigned by Original Lender to Lender pursuant
to that certain Assignment of Assignment of Leases and Rents dated as of December 15, 2011, recorded December 28, 2011, as Document
Number 2011-00029408 in the Registrar of Deeds of McLean County, Illinois.

 

C.           Borrower
and Lender entered into that certain Omnibus Amendment to Loan Documents dated as of December 15, 2011, recorded December 28,
2011, as Document Number 2011-00029409 in the Registrar of Deeds of McLean County, Illinois (as subsequently corrected in that
certain letter agreement dated as of June 6, 2012, the “First Amendment”).

 

D.           The
real property to which the Mortgage and the Assignment of Leases and Rents relate is described in Exhibit A attached hereto
and incorporated herein by this reference.

 

E.           Lender
and Borrower have agreed to further amend the documents evidencing and securing the Loan as set forth in this Second Amendment.

 

NOW, THEREFORE, in
consideration of the foregoing recitals, the agreements of the parties herein, and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, Borrower and Lender agree as follows:

 

    	Second Omnibus Amendment	2	 

    	 

    

 

1.           General
Provisions.

 

1.1.        Definitions.
Capitalized terms used in this Second Amendment and not otherwise defined herein shall have the meanings ascribed to them in the
Mortgage.

 

1.2.        Relationship
to Original Loan Documents and First Amendment. This Second Amendment and the documents to be delivered in connection herewith
amend the original Loan Documents, as previously amended by the First Amendment. As expressly so amended, the Loan Documents shall
remain in full force and effect. The First Amendment and this Second Amendment, and every other document delivered in connection
therewith or herewith, shall also constitute “Loan Documents” as that term is used in the Loan Documents. A
reference in any Loan Document to itself or to any other Loan Document shall be interpreted to refer to such Loan Document as amended
by the First Amendment, this Second Amendment, and as may be further amended, restated, replaced, supplemented, renewed, extended
or otherwise modified in writing from time to time. To the extent of any inconsistency between any original Loan Document and this
Second Amendment, or any inconsistency between the First Amendment and this Second Amendment, this Second Amendment shall control.

 

1.3.        Effective
Date. This Second Amendment shall take effect upon its recordation with the Registrar of Deeds of McLean County, Illinois (the
“Effective Date”).

 

2.           Principal
Balance. As of June 1, 2013, the outstanding principal balance of the Loan was $5,621,567.18.

 

3.           Prepayment
Premium. As of the Effective Date, Section 2(c) of the First Amendment is superseded in its entirety by the following
provisions, which shall govern prepayments of the Loan, and all references in any Loan Document to the “Prepayment Premium”
or to Section 1(h) of the Note shall be deemed to refer to the following:

 

3.1.         Borrower
may not prepay the Loan in part, except in accordance with Section 3 of the First Amendment.

 

3.2.         Borrower
may prepay the Loan in whole, but not in part, at any time prior to the Maturity Date, provided, however, that (i) all such prepayments
must be accompanied by accrued, unpaid interest and the Exit Fee and (ii) all such prepayments made on or prior to September 30,
2014, must be accompanied by a prepayment premium determined as follows (the “Prepayment Premium”):

 

(a)          $7,950,000.00
minus

 

(b)          the
sum of the following amounts: (A) $2,035,908.51, plus (B) all amounts of principal and interest paid on account of the Obligations
after June 3, 2013, including the amount of the principal being prepaid, plus (C) any portion of a Partial Release Prepayment
Amount applied as a prepayment premium in accordance with the terms of the First Amendment, but

 

(c)          if
the amount as so determined is less than zero, then the Prepayment Premium is zero.

 

    	Second Omnibus Amendment	3	 

    	 

    

 

4.           Entity
Name Changes.

 

4.1.         In
connection with this Second Amendment, at Borrower’s request Lender has consented to the following entity name changes, which
each entity shall each accomplish not later than fifteen (15) Business Days after the Effective Date in accordance with applicable
law and each entity’s organizational documents:

 

4.1.1       the
name of Borrower will be changed from TNP SRT CONSTITUTION TRAIL, LLC, to SRT CONSTITUTION TRAIL, LLC, which entity will remain
the Delaware limited liability company with I.D. # 5003431;

 

4.1.2       the
name of Borrower’s sole member will be changed from TNP STRATEGIC RETAIL OPERATING PARTNERSHIP, L.P., to STRATEGIC REALTY
OPERATING PARTNERSHIP, L.P., a Delaware limited partnership, which entity will remain the Delaware limited partnership with I.D.
# 4605960;

 

4.1.3       the
name of Guarantor TNP STRATEGIC RETAIL TRUST, INC. will be changed to STRATEGIC REALTY TRUST, INC., which entity will remain the
Maryland corporation with I.D. # D12719449.

 

4.2.         The
foregoing name changes shall have no effect upon the obligations of any entity under the Loan Documents. All references in the
Loan Documents to any such entity by its previous name shall be deemed to refer to such entity by its changed name.

 

4.3.         Not
later than five (5) Business Days after each name change occurs, Borrower shall provide to Lender, all in form and content reasonably
acceptable to Lender:

 

4.3.1       with
respect to each entity identified in Section 4.1 above: (a) a true, correct and complete copy of the limited liability company
certificate of amendment, certificate of amendment to the certificate of limited partnership, or articles of amendment, as applicable,
certified by the Secretary of State of the State of Delaware or the State Department of Assessments and Taxation of Maryland, as
applicable; and (b) a certificate of good standing or status as may be available from the Secretaries of State of its jurisdiction
of incorporation or formation, as applicable; and

 

4.3.2       with
respect to Borrower: (a) a true, correct and complete copy of the Amended Application for Admission, certified by the Secretary
of State of the State of Illinois; and (b) a certificate of good standing as may be available from the Secretary of State of the
State of Illinois.

 

5.           Replacement
of Manager, Management Agreement, and Assignment. In connection with this Second Amendment, at Borrower’s request Lender
consents as of the Effective Date to (a) Borrower’s termination of that certain Property and Asset Management Agreement dated
as of October 21, 2011, by and between Borrower and TNP Property Manager LLC, a Delaware limited liability company (previously
the “Manager” as defined in the Mortgage), and (b) Borrower’s entry into that certain Property and Asset Management
Agreement dated as of June 10, 2013, with Glenborough, LLC, a Delaware limited company (now the “Manager” as defined
in the Mortgage as amended herein), for management of the Mortgaged Property. Lender, Borrower and such Manager are herewith executing
and delivering an Assignment of Management Agreement and Subordination of Management Fees with respect to the replacement Property
and Asset Management Agreement.

 

6.           Modification
of Mortgage. As of the Effective Date, the Mortgage is hereby modified as follows:

 

    	Second Omnibus Amendment	4	 

    	 

    

 

6.1.         Disposition
of the Mortgaged Property. Section 2.18 of the Mortgage is hereby amended to add at the end thereof the following Section
2.18(c):

 

(c)  
        Notwithstanding Section 2.18(b), the following shall not constitute a sale,
assignment, mortgage, pledge, hypothecation or transfer within the meaning of this Section 2.18: (i) a transfer of shares
in TNP Strategic Retail Trust, Inc., a Maryland corporation to be renamed Strategic Realty Trust, Inc. (“Strategic Realty
Trust, Inc.”) so long as such transfer does not cause, constitute or result in a Change in Control; or (ii) a transfer
by Tony Thompson of shares in Strategic Realty Trust, Inc., owned by him, subject, however, to Lender’s prior written approval,
in its reasonably- exercised discretion, of the proposed transferee.

 

6.2.         Events
of Default. Section 5.01 of the Mortgage is hereby amended to add the following as a new sub-section (t) following existing
sub-section (s):

 

(t) 
         Strategic Realty Trust, Inc. shall default in the full and timely
performance of any obligation under (i) that certain Indemnity (Lahaina Gateway) dated as of June 10, 2013, executed by
Strategic Realty Trust, Inc.in favor of DOF IV REIT HOLDINGS, LLC, a Delaware limited liability company, and other parties,
or (ii) or that certain Indemnity (Constitution Trail) dated as of June 10, 2013, executed by Strategic Realty Trust, Inc.in
favor of TORCHLIGHT DEBT OPPORTUNITY FUND III, LLC, a Delaware limited liability company, and other parties;

 

6.3.         Definitions.
 Section 7.01 of the Mortgage is hereby amended to amend, replace and restate the definitions of the following terms
in their entirety as follows:

 

Assignment
of Management Agreement: shall mean that certain Assignment of Management Agreement and Subordination of Management Fees, dated
as of June 10, 2013, by and among Mortgagor, Mortgagee and Manager.

 

Change of
Control: shall mean that the following shall occur without the prior written consent of Mortgagee: Strategic Realty Trust,
Inc., a Maryland corporation shall at any time own less than 50% of the direct or indirect beneficial interests in Mortgagor.

 

Guarantor
or Guarantors: shall mean Strategic Realty Trust, Inc., only.

 

Manager:
shall mean Glenborough, LLC, a Delaware limited liability company.

 

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    	Second Omnibus Amendment	5	 

    	 

    

 

6.4.         State-Specific
Provisions. The following is hereby added to the Mortgage as Article 12:

 

ARTICLE 12

 

State-Specific Provisions

 

12.1         Principles
of Construction. In the event of any inconsistencies between the terms and conditions of this Article 12 and the terms
and conditions of this Mortgage, the terms and conditions of this Article 12 shall control and be binding.

 

12.2         Illinois
Mortgage Foreclosure Law.

 

(a)          The
law applicable to any foreclosure of this instrument shall be the Illinois Mortgage Foreclosure Law, Illinois Compiled Statutes,
Chapter 735, Act 5, Section 15-1101, et seq., as from time to time amended (the “Act”).

 

(b)          In
the event that any provision in this Mortgage shall be inconsistent with any provision of the Act, the provisions of the Act shall
take precedence over the provisions of this Mortgage, but shall not invalidate or render unenforceable any other provision of this
Mortgage that can be construed in a manner consistent with the Act.

 

(c)          If
any provision of this Mortgage shall grant to Mortgagee any rights or remedies upon the occurrence and during the continuation
of an Event of Default which are more limited than the rights that would otherwise be vested in Mortgagee under the Act in the
absence of said provision, Mortgagee shall be vested with the rights granted in the Act to the full extent permitted by law.

 

(d)          Without
limiting the generality of the foregoing, all expenses incurred by Mortgagee upon the occurrence and during the continuation of
an Event of Default to the extent reimbursable under Sections 15-1510 and 15-1512 of the Act, whether incurred before or after
any decree or judgment of foreclosure, and whether or not enumerated in this Mortgage, shall be added to the outstanding amount
of the Loan.

 

(e)          Mortgagor
acknowledges that the transaction of which the Mortgagor is a part is a transaction which does not include either agricultural
real estate (as defined in Section 15-1201 of the Act) or residential real estate (as defined in Section 15-1219 of the Act), and
upon the occurrence and during the continuation of an Event of Default to the full extent permitted by law, hereby voluntarily
and knowingly waives its rights to reinstatement and redemption to the extent allowed under Section 15-1601(b) of the Act, and
to the full extent permitted by law, the benefits of all present and future valuation, appraisement, homestead, exemption, stay,
redemption and moratorium laws under any state or federal law.

 

    	Second Omnibus Amendment	6	 

    	 

    

 

12.3         Mortgagor
Waivers.

 

(a)          Except
to the extent contrary to law, Mortgagor agrees that upon the occurrence and during the continuation of an Event of Default, Mortgagor
will not at anytime insist upon or plead or in any manner whatsoever claim the benefit of any valuation, stay, extension, or exemption
law now or hereafter in force, in order to prevent or hinder the enforcement or foreclosure of this Mortgage or the absolute sale
of the Mortgaged Property or the possession thereof by any purchaser at any sale made pursuant to any provision hereof, or pursuant
to the decree of any court of competent jurisdiction; but Mortgagor, for Mortgagor and all who may claim through or under Mortgagor,
so far as Mortgagor or those claiming through or under Mortgagor now or hereafter lawfully may, hereby waives upon the occurrence
and during the continuation of an Event of Default the benefit of all such laws. Except to the extent contrary to law, Mortgagor
hereby waives upon the occurrence and during the continuation of an Event of Default any and all right to have the Mortgaged Property
marshaled upon any foreclosure of this Mortgage, or sold in inverse order of alienation, and agrees that Mortgagee or any court
having jurisdiction to foreclose this Mortgage may sell the Mortgaged Property as an entirety. If any law now or hereafter in force
referred to in this paragraph of which the parties or their successors might take advantage despite the provisions hereof, shall
hereafter be repealed or cease to be in force, such law shall not thereafter be deemed to constitute any part of the contract herein
contained or to preclude the operation or application of the provisions of this paragraph, to the extent not prohibited by law.

 

(b)          In
the event of the commencement of judicial proceedings to foreclose this Mortgage, Mortgagor, on behalf of Mortgagor, its successors
and assigns, and each and every person or entity they may legally bind acquiring any interest in or title to the Mortgaged Property
subsequent to the date of this Mortgage: (a) expressly waives any and all rights of appraisement, valuation, stay, extension and
(to the extent permitted by law) reinstatement and redemption from sale under any order or decree of foreclosure of this Mortgage;
and (b) to the extent permitted by applicable law, agrees that when sale is had under any decree of foreclosure of this Mortgage,
upon confirmation of such sale, the officer making such sale, or his successor in office, shall be and is authorized immediately
to execute and deliver to any purchaser at such sale a deed conveying the Mortgaged Property, showing the amount paid therefor,
or if purchased by the person in whose favor the order or decree is entered, the amount of his bid therefor. Mortgagor acknowledges
that the Mortgaged Property does not constitute “agricultural real estate,” as such term is defined in Section 15-1201
of the Act of “residential real estate,” as such term is defined in Section 15-1219 of the Act.

 

12.4         Maximum
Amount Secured. The maximum indebtedness secured by this Mortgage shall not exceed two hundred percent (200%) of the original
principal amount of the Note.

 

    	Second Omnibus Amendment	7	 

    	 

    

 

12.5         Mortgagee
in Possession. In addition to any provision of this Mortgage authorizing Mortgagee to take or be placed in possession of the
Mortgaged Property, or for the appointment of a receiver, Mortgagee shall have the right, in accordance with Sections 15-1701 and
15-1702 of the Act, to be placed in possession of the Mortgaged Property or, at its request, to have a receiver appointed, and
such receiver, or Mortgagee, if and when placed in possession, shall have, in addition to any other powers provided in this Mortgage,
all powers, immunities and duties as provided for in Sections 15-1701, 15-1702 and 15-1703 of the Act.

 

12.6         Business
Loan. Mortgagor covenants and agrees that (i) all of the proceeds of the Loan secured by this Mortgage will be used solely
for business purposes and in furtherance of the regular business affairs of Mortgagor, (ii) the beneficiary of Mortgagor is a “business,”
as that term is defined in the Illinois Interest Act, Illinois Complied Statutes, Chapter 815 ILCS 205/0.01, et seq., including
Section 4(1)(c) thereof; and (iii) the entire principal obligation secured hereby constitutes: (A) a “business loan,”
as that term is used in Section 205/4(1)(c) thereof; and (B) a “loan secured by a mortgage on real estate” within the
purview and operation of Section 205/4(1)(l) thereof, and (iv) the indebtedness secured hereby is an exempted transaction under
the Truth-In-Lending Act, 15 U.S.C. Section 1601m, et seq. and has been entered into solely for business purposes of Mortgagor
and for Mortgagor’s investment or profit, as contemplated by said section.

 

12.7         Future
Advances. This Mortgage secures not only present indebtedness but also future advances, whether such future advances are obligatory
or are to be made at the option of Mortgagee, or otherwise. The amount of indebtedness secured hereby may increase or decrease
from time to time, and the rate or rates of interest payable may vary from time to time.

 

12.8         Protective
Advances. All advances, disbursements and expenditures made by Mortgagee in accordance with the terms of this Mortgage and
the other Loan Documents, either before and during a foreclosure of this Mortgage, and before and after judgment of foreclosure
therein, and at any time prior to sale of the Mortgaged Property, and, where applicable, after sale of the Mortgaged Property,
and during the pendency of any related proceedings, in addition to those otherwise authorized by the Act, shall have the benefit
of all applicable provisions of the Act.

 

12.9         Subordination
of Management Agreements. Any property management agreement for or relating to all or any part of the Mortgaged Property, whether
now in effect or entered into hereafter by Mortgagor, or any agent of Mortgagor, with a property manager shall contain a subordination
provision whereby the property manager forever and unconditionally subordinates to the lien of this Mortgage any and all mechanics’
lien rights and claims that it or anyone claiming through or under it may have at any time pursuant to any statute or law (including,
without limitation, the Illinois Mechanics Lien Act, 770 ILCS 60/1 et seq.). Such property management agreement or a short form
thereof shall, at Mortgagee’s request, be recorded with the Office of the Recorder of Deeds of the county in which this Mortgage
was filed.

 

    	Second Omnibus Amendment	8	 

    	 

    

 

12.10       Collateral
Protection Act. Pursuant to the terms of the Collateral Protection Act, Illinois Compiled Statutes, Chapter 815 ILCS 180/1
et seq., Mortgagor is hereby notified that, unless Mortgagor provides Mortgagee with evidence of the insurance required by this
Mortgage or any other Loan Document, Mortgagee may purchase insurance at Mortgagor’s expense to protect Mortgagee’s
interest in the Mortgaged Property or any other collateral for the indebtedness secured hereby. This insurance may, but need not,
protect Mortgagor’s interests. The coverage Mortgagee purchases may not pay any claim that Mortgagor makes or any claim that
is made against Mortgagor in connection with the Mortgaged Property or any other collateral for the indebtedness secured hereby.
Mortgagor may later cancel any insurance purchased by Mortgagee, but only after providing Mortgagee with evidence that Mortgagor
has obtained insurance as required under this Mortgage or any other Loan Document. If Mortgagee purchases insurance for the Mortgaged
Property or any other collateral for the indebtedness secured hereby, Mortgagor shall be responsible for the costs of that insurance,
including the insurance premiums, interest and any other charges that Mortgagee may lawfully impose in connection with the placement
of the insurance, until the effective date of the cancellation or expiration of the insurance. The costs of the insurance may be
added to the indebtedness secured hereby. The costs of the insurance may be more than the cost of insurance that Mortgagor may
be able to obtain on its own.

 

12.11       Fixture
Filing. This Mortgage also constitutes a “fixture filing” pursuant to Section 9-502 of the Illinois Uniform Commercial
Code, Illinois Complied Statutes, Chapter 810 ILCS 5/1-101, et. seq. and shall be filed in the real estate records of the applicable
county’s real estate records office.

 

(a)          Name
of Debtor: TNP SRT Constitution Trail, LLC, a Delaware limited liability company, and SRT Constitution Trail, LLC.

 

(b)          Debtors’
Mailing Address: 4695 MacArthur Court, Suite 1100, Newport Beach, CA 92660.

 

(c)          Debtors’
Organizational ID: 5003431.

 

(d)          Address
of the Property: Set forth on Exhibit A.

 

(e)          Name
of Secured Party: Torchlight Debt Opportunity Fund III, LLC.

 

(f)         
 Address of Secured Party: c/o Torchlight Investors, 230 Park Avenue, New York, NY 10169.

 

    	Second Omnibus Amendment	9	 

    	 

    

 

(g)          This
financing statement covers the Mortgaged Property and/or any other collateral secured by the Mortgage, and any proceeds or products
of such Mortgaged Property and/or any other collateral secured by the Mortgage.

 

(h)          Some
of the above goods are or are to become fixtures on the Land described herein. Mortgagor is the record owner of the Land described
herein upon which the foregoing fixtures and other items and types of property are located set forth on Exhibit A.

 

12.12       Maturity
Date. The Loan shall be due and payable in full on or before October 31, 2014, or such earlier date as the Note may be accelerated
in accordance with the terms hereof or thereof.

 

7.       
   Previous Change of Control. To the extent that there occurred a Change of Control as that term was
defined in the Mortgage prior to amendment in this Second Amendment, Lender waives the resulting default under Section
4.07(l) of the Mortgage. Borrower represents and warrants to Lender that not less than 50% of the direct or indirect
beneficial interests in Borrower are presently owned by Strategic Realty Trust, Inc., a Maryland corporation.

 

8.     
     No Waiver of Defaults, Rights or Remedies. The execution, delivery and acceptance of this Second
Amendment and documents delivered in connection herewith do not constitute and shall not be interpreted as a waiver by Lender
of any past, present or future Default or Event of Default, or an acknowledgement by Lender that there does or does not exist
any breach or default under, or Default or Event of Default under and as defined in, any Loan Document, except as expressly provided
in Section 7 above. With that sole exception, Lender reserves all of its rights and remedies with respect to all past,
present and future Defaults and Events of Default.

 

9.         
 Reaffirmation of Loan Documents; No Other Agreements or Understandings. Borrower reaffirms and ratifies all of its
liabilities, obligations, agreements and grants of security interests in real and personal property collateral under all of
the Loan Documents in accordance with their terms, as modified by the First Amendment and this Second Amendment and the
documents delivered in connection herewith. Borrower acknowledges that the Loan is unconditionally owing, and is due at the
times expressly specified in the Loan Documents, without offset, defense or counterclaim. Borrower certifies to Lender that
Lender is not in default of any of its obligations under the Loan Documents, and Borrower and related parties are herewith
delivering a release to Lender and related parties. Borrower and Lender acknowledge and agree that there are no agreements,
representations or understandings, written or oral, express or implied, which (a) in any way affect, modify, supplement, or
condition the parties’ obligations as set forth in the Loan Documents except as expressly set forth in the First
Amendment and this Second Amendment and the documents delivered in connection herewith, or (b) in any way obligate any party
to further amend or modify the Loan Documents, waive any provision thereof, or forbear from enforcing the Loan Documents in
accordance with their terms.

 

10.         No
Effect on Liens, Encumbrances and Priority. Neither this Second Amendment nor any document delivered in connection herewith
shall have any effect upon the continuing liens, encumbrances and priority of the Mortgage, the Assignment of Leases and Rents,
or any security interests in real and personal property collateral in any other Loan Documents.

 

11.         Patriot
Act. Borrower restates and reaffirms each of the representations and warranties of Section 8.16 of the Mortgage with
respect to itself and its current principals, constituents, investors and Affiliates.

 

    	Second Omnibus Amendment	10	 

    	 

    

 

12.         Addresses
for Notice. For all purposes of all of the Loan Documents, Borrower and Lender redesignate their addresses for notice as follows:

 

	Borrower:	
        TNP SRT CONSTITUTION TRAIL, LLC

        (or, after name change: SRT CONSTITUTION TRAIL, LLC)

        4695 MacArthur Court, Suite 1100

        Newport Beach, CA 92660

	 	 
	with copy to:	
        TNP STRATEGIC RETAIL TRUST, INC.

        (or, after name change: STRATEGIC REALTY TRUST, INC.)

        4695 MacArthur Court, Suite 1100

        Newport Beach, CA 92660

	 	 
	with copy to:	
        Glenborough, LLC

        400 S. El Camino Real, Suite 1100

        San Mateo, CA 94402

        Attn: President

	 	 
	and with copy to:	
        Gibson Dunn & Crutcher LLP

        2029 Century Park East

        Los Angeles, CA 90067

        Attn: Jesse Sharf

	 	 
	Lender:	
        TORCHLIGHT DEBT OPPORTUNITY FUND III, LLC

        c/o Torchlight Investors

        230 Park Avenue

        New York, NY 10169

        Attn: Steve Schwartz

        Facsimile: (212) 883-2955

	 	 
	with copy to:	
        TORCHLIGHT DEBT OPPORTUNITY FUND III, LLC

        c/o Torchlight Investors

        230 Park Avenue

        New York, NY 10169

        Attn: Abbey Kosakowski, Esq.

        Facsimile: (212) 883-2888

	 	 
	and with copy to:	
        McKenna Long & Aldridge LLP

        2030 Main Street, 10th Floor

        Irvine, CA 92614

        Attn: Jess R. Bressi, Esq.

        Facsimile: (949) 251-5862

 

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

 

[SIGNATURES FOLLOW ON NEXT PAGE]

 

    	Second Omnibus Amendment	11	 

    	 

    

 

IN WITNESS WHEREOF,
Lender and Borrower have executed this Second Amendment as of the date first above written.

 

	LENDER:	TORCHLIGHT DEBT OPPORTUNITY FUND III, LLC,	 
	 	a Delaware limited liability company	 
	 	 	 
	 	By:	/s/ Ramalingam Ganesh	 
	 	Name:	Ramalingam Ganesh	 
	 	Title:	Authorized Signatory	 

 

[SIGNATURES CONTINUE ON NEXT PAGE]

 

    	Second Omnibus Amendment	12	 

    	 

    

 

	BORROWER:	TNP SRT CONSTITUTION TRAIL, LLC,
	 	a Delaware limited liability company

 

	 	By:	TNP Strategic Retail Operating Partnership, L.P.,
	 	 	a Delaware limited partnership, its sole member

 

	 	By:	TNP Strategic Retail Trust Inc.,
	 	 	a Maryland corporation, its general partner

 

	 	By:	/s/ Jeffrey Rogers
	 	Name:	Jeffrey Rogers
	 	Title:	Chairman 
	 	 	Authorized Agent

 

    	Second Omnibus Amendment	13	 

    	 

    

 

	STATE OF NEW YORK	§
	 	§
	COUNTY OF NEW YORK	§

 

Before me, the
undersigned authority, a Notary Public, on this day personally appeared Ramalingam Ganesh, Authorized Signatory of TORCHLIGHT
DEBT OPPORTUNITY FUND III, LLC, a Delaware limited liability company, known to me to be the person whose name is subscribed
to the foregoing instrument, and acknowledged that he executed and delivered the foregoing instrument for the purposes and
consideration therein expressed, and as the act of said limited liability company.

 

Given under my hand and notarial seal this
19th day of June, 2013.

 

	 	/s/ Alvaro A. Alarcon
	 	Notary Public

 

	 	My Commission Expires:	 

 

	 	 	ALVARO A. ALARCON
	 	 	NOTARY PUBLIC-STATE OF NEW YORK
	 	 	No. 01AL6241718
	 	 	Qualified in Bronx County
	 	 	My Commission Expires May. 23, 2015

 

    	Second Omnibus Amendment	14	 

    	 

    

 

ACKNOWLEDGEMENT

 

	STATE OF NEW YORK	)
	 	)
	COUNTY OF NEW YORK	)

 

On 28th
June, 2013 before me, Evis Zavalina-Franks, Notary Public, personally appeared Jeffrey S Rogers, who proved to me on the basis
of satisfactory evidence to be me person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument
the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

 

I certify under PENALTY
OF PERJURY under the laws of the State of New York that the foregoing paragraph is true and correct.

 

WITNESS my hand and official seal.

 

	/s/ Evis
    Zavalina-Franks	 	 	 
	Signature	 	(Seal)	 

 

	 	 	EVIS ZAVALINA-FRANKS	 
	 	 	Notary Public - State of New York	 
	 	 	No. 01ZA6278651	 
	 	 	Qualified in New York Country	 
	 	 	My Commission Expires Mar. 25, 2017	 

 

    	Second Omnibus Amendment	15	 

    	 

    

 

CONSENT, REAFFIRMATION AND CERTIFICATE
OF GUARANTORS

 

This Consent, Reaffirmation
and Certificate of Guarantor (the “Consent”) is made with reference to the foregoing Second Omnibus Amendment
to Loan Documents. Terms used with initial capital letters herein have the meanings set forth in the Second Amendment or the Mortgage,
as applicable.

 

The undersigned Guarantor
hereby: (a) acknowledges receipt of and consents to the Second Amendment and the documents to be delivered in connection therewith;
(b) ratifies and reaffirms all of its obligations under the Recourse Guaranty and the Environmental Indemnity, and agrees that
all references therein to any Loan Document shall mean such Loan Document as amended by the First Amendment and the Second Amendment
and the documents delivered in connection therewith; (c) certifies to Lender that it has no offsets, counterclaims or defenses
to the enforcement of the Recourse Guaranty or the Environmental Indemnity; and (d) consents to the release by Lender of Tony Thompson,
an individual, from liability on the Recourse Guaranty and the Environmental Indemnity, and acknowledges and agrees that such release,
if it occurs, shall have no effect upon the liability of Guarantor to Lender under the Recourse Guaranty or the Environmental Indemnity.

 

TNP STRATEGIC RETAIL TRUST, INC.,

a Maryland corporation

 

	By:	/s/ Jeffrey Rogers	 
	Name:	 Jeffrey Rogers	 
	Title:	President, Authorized Agent	 

 

For all purposes of
all relevant Loan Documents, Guarantor Strategic Realty Trust Inc. redesignates its address for notice as follows:

 

	 	TNP STRATEGIC RETAIL TRUST, INC.
	 	(or, after name change: STRATEGIC REALTY TRUST, INC.
	 	4695 MacArthur Court, Suite 1100
	 	Newport Beach, CA 92660
	 	 
	with copy to:	Glenborough, LLC
	 	400 S. El Camino Real, Suite 1100
	 	San Mateo, CA 94402
	 	Attn: President
	and with copy to:	Gibson Dunn & Crutcher LLP
	 	2029 Century Park East
	 	Los Angeles, CA 90067
	 	Attn: Jesse Sharf

 

    	Second Omnibus Amendment	16	 

    	 

    

 

ACKNOWLEDGEMENT

 

	STATE OF NEW YORK	)
	 	)
	COUNTY OF NEW YORK	)

 

On
28th June 2013, before me, Evis Zavalina-Franks, Notary Public, personally appeared Jeffrey S Rogers, who proved to me
on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument
and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by
his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed
the instrument.

 

I certify under PENALTY
OF PERJURY under the laws of the State of New York that the foregoing paragraph is true and correct.

 

WITNESS my hand and official seal.

 

	/s/ Evis
    Zavalina-Franks	 	 	 
	Signature	 	(Seal)	 

 

	 	 	EVIS ZAVALINA-FRANKS	 
	 	 	Notary Public - State of New York	 
	 	 	No. 01ZA6278651	 
	 	 	Qualified in New York Country	 
	 	 	My Commission Expires Mar. 25, 2017	 

 

    	Second Omnibus Amendment	17	 

    	 

    

 

Exhibit A

 

Description of Real Property

 

TRACK NO. 1:

 

Lots 1, 2, 3, 6 and 8 and Outlots 5, 7, and 12 and 500, 502,
503 in the Constitution Trail Subdivision, according to the Plat thereof recorded August 7, 2007 as Document No. 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 No. 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 No. 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 No. 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 No. 2009-20923,
in McLEAN COUNTY, ILLINOIS.

 

TRACK NO. 2:

 

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
No. 2008-15764, in McLEAN COUNTY, ILLINOIS.

 

TRACK NO. 3:

 

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 No. 2009-4743, in McLEAN COUNTY, ILLINOIS.

 

TRACK NO. 4:

 

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 No. 2009-20923, in McLEAN COUNTY, ILLINOIS.

 

    	Second Omnibus Amendment	18	 

    	 

    

 

14-16-454-001 Lot 1;

14-16-454-002 Lot 2;

14-16-454-004 Lot 3;

14-16-380-001 Lot 6;

14-16-379-004 Lot 8;

14-16-380-002 Outlot 5;

14-16-379-005 Outlot 7;

14-16-379-001 Outlot 12;

16-16-454-003 Outlot 500;

14-16-326-003 Outlot 502;

14-16-326-002 Outlot 503;

14-16-379-006 Underlying lands for Tract
No. 4;

14-16-405-002 Out lot 509;

14-16-404-004 Lot 20;

14-16-404-003 Outlot 506;

14-16-404-005 Outlot 507;

14-16-404-006 Outlot 507;

 

    	Second Omnibus Amendment	19

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