Document:

Exhibit 4.4

 

AGREEMENT OF LIMITED PARTNERSHIP

 

OF

 

PHILLIPS EDISON GROCERY CENTER OPERATING PARTNERSHIP
III, L.P.

 

Dated as of October 5, 2016

 

     

     

    

 

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	Article 1 DEFINED TERMS	1
	 	 	 
	Article 2 ORGANIZATIONAL MATTERS	19
	2.1	Formation	19
	2.2	Name	20
	2.3	Registered Office and Agent; Principal Office	20
	2.4	Power of Attorney	20
	2.5	Term	22
	 	 	 
	Article 3 PURPOSE	22
	3.1	Purpose and Business	22
	3.2	Powers	23
	 	 	 
	Article 4 CAPITAL CONTRIBUTIONS	23
	4.1	Capital Contributions of the Partners	23
	4.2	Additional Funds; Restrictions on the Initial Limited Partner	24
	4.3	Issuance of Additional Partnership Interests; Admission of Additional Limited Partners	26
	4.4	Contribution of Proceeds of Issuance of Common Stock	26
	4.5	Repurchase of Common Stock; Shares-In-Trust	27
	4.6	No Third-Party Beneficiary	27
	4.7	No Interest; No Return	28
	4.8	No Preemptive Rights.	28
	 	 	 
	Article 5 DISTRIBUTIONS	28
	5.1	Distributions	28
	5.2	Qualification as a REIT	33
	5.3	Withholding	33
	5.4	Additional Partnership Interests	34
	 	 	 
	Article 6 ALLOCATIONS	34
	6.1	Allocations	34
	6.2	Revisions to Allocations to Reflect Issuance of Partnership Interests	34
	 	 	 
	Article 7 MANAGEMENT AND OPERATIONS OF BUSINESS	34
	7.1	Management	34
	7.2	Certificate of Limited Partnership	39
	7.3	Reimbursement of the General Partner	40
	7.4	Outside Activities of the General Partner	41
	7.5	Contracts with Affiliates	41
	7.6	Indemnification	42
	7.7	Liability of the General Partner and the Initial Limited Partner	44
	7.8	Other Matters Concerning the General Partner	45
	7.9	Title to Partnership Assets	46

 

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	7.10	Reliance by Third Parties	46
	7.11	Loans By Third Parties	47
	 	 	 
	Article 8 RIGHTS AND OBLIGATIONS OF LIMITED PARTNERS	47
	8.1	Limitation of Liability	47
	8.2	Management of Business	47
	8.3	Outside Activities of Limited Partners	48
	8.4	Return of Capital	48
	8.5	Rights of Limited Partners Relating to the Partnership	48
	8.6	Exchange Rights Agreements	49
	8.7	Conversion and Exchange of Special Limited Partner Interests	49
	 	 	 
	Article 9 BOOKS, RECORDS, ACCOUNTING AND REPORTS	50
	9.1	Records and Accounting	50
	9.2	Fiscal Year	51
	9.3	Reports	51
	 	 	 
	Article 10 TAX MATTERS	51
	10.1	Preparation of Tax Returns	51
	10.2	Tax Elections	52
	10.3	Tax Matters Partner	53
	10.4	Organizational Expenses	54
	10.5	Withholding	54
	 	 	 
	Article 11 TRANSFERS AND WITHDRAWALS	56
	11.1	Transfer	56
	11.2	Transfer of the General Partner’s General Partner Interest and the Initial Limited Partner’s Limited Partner Interest	56
	11.3	Limited Partners’ Rights to Transfer	58
	11.4 	Substituted Limited Partners	60
	11.5	Assignees	60
	11.6	General Provisions	61
	 	 	 
	Article 12 ADMISSION OF PARTNERS	63
	12.1	Admission of Successor General Partner	63
	12.2	Admission of Additional Limited Partners	64
	12.3	Amendment of Agreement and Certificate of Limited Partnership	64
	 	 	 
	Article 13 DISSOLUTION, LIQUIDATION AND TERMINATION	65
	13.1	Dissolution	65
	13.2	Winding Up	66
	13.3	Obligation to Contribute Deficit	67
	13.4	Rights of Limited Partners	68
	13.5	Notice of Dissolution	68
	13.6	Termination of Partnership and Cancellation of Certificate of Limited Partnership	68
	13.7	Reasonable Time for Winding-Up	68

 

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	13.8	Waiver of Partition	68
	 	 	 
	Article 14 AMENDMENT OF PARTNERSHIP AGREEMENT; MEETINGS	68
	14.1	Amendments	68
	14.2	Meetings of the Partners	69
	 	 	 
	Article 15 GENERAL PROVISIONS	71
	15.1	Addresses and Notice	71
	15.2	Titles and Captions	71
	15.3	Pronouns and Plurals	71
	15.4	Further Action	71
	15.5	Binding Effect	71
	15.6	Creditors	71
	15.7	Waiver	72
	15.8	Counterparts	72
	15.9	Applicable Law	72
	15.10	Invalidity of Provisions	72
	15.11	Entire Agreement	72
	15.12	Merger	72
	15.13	No Rights as Stockholders	72

 

EXHIBITS

 

	Exhibit A	–	Partners’ Contributions and Partnership Interests
	Exhibit B	–	Allocations
	Exhibit C	–	Certificate of Limited Partnership

 

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AGREEMENT OF LIMITED PARTNERSHIP

OF

PHILLIPS EDISON GROCERY CENTER OPERATING PARTNERSHIP III, L.P.

 

THIS AGREEMENT OF LIMITED PARTNERSHIP OF PHILLIPS
EDISON GROCERY CENTER OPERATING PARTNERSHIP III, L.P. (this “Agreement”) dated as of October 5, 2016, is entered
into among Phillips Edison Grocery Center OP GP III, LLC, a Delaware limited liability
company, as general partner (the “General Partner”), PHILLIPS EDISON GROCERY CENTER REIT III, INC., a Maryland
corporation, as Limited Partner (the “Initial Limited Partner”), PECO-GRIFFIN REIT ADVISOR, LLC, a Delaware
limited liability company (the “Special Limited Partner”), and the Limited Partners party hereto from time to
time.

 

RECITALS

 

WHEREAS, Phillips Edison Grocery Center Operating
Partnership III, L.P. was formed on July 29, 2016 (the “Formation Date”), pursuant to the Revised Uniform Limited
Partnership Act of the State of Delaware and a certificate of limited partnership was filed with the Secretary of State of the
State of Delaware (the “Certificate”).

 

NOW THEREFORE, in consideration of the mutual
covenants herein contained, and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties do hereby agree as follows:

 

Article
1

DEFINED TERMS

 

The following definitions shall be for all purposes,
unless otherwise clearly indicated to the contrary, applied to the terms used in this Agreement.

 

“Act” means the Delaware
Revised Uniform Limited Partnership Act, as amended from time to time, and any successor to such statute.

 

“Additional Limited Partner”
means a Person that has executed and delivered an additional limited partner signature page in the form attached hereto, has been
admitted to the Partnership as a Limited Partner pursuant to Section 4.3 hereof and that is shown as such on the books and records
of the Partnership.

 

“Adjusted Capital Account Deficit”
means with respect to any Partner, the negative balance, if any, in such Partner’s Capital Account as of the end of any relevant
fiscal year, determined after giving effect to the following adjustments:

 

(a)          credit
to such Capital Account any portion of such negative balance which such Partner (i) is treated as obligated to restore to the Partnership
pursuant to the provisions of Section 1.704-1(b)(2)(ii)(c) of the Regulations, or (ii) is deemed to be obligated to restore to
the Partnership pursuant to the penultimate sentences of Sections 1.704-2(g)(1) and 1.704-2(i)(5) of the Regulations; and

 

     

     

    

 

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

 

“Advisory Agreement”
means (i) the Advisory Agreement dated as of October 5, 2016, by and among the Partnership and the Initial Limited Partner, as
advisees, and the Special Limited Partner, as advisor, as the same may be amended, supplemented or restated from time to time,
or (ii) any advisory agreement with any subsequent advisor to the Initial Limited Partner.

 

“Affected Gain” has
the meaning set forth in subparagraph 4(b) of Exhibit B.

 

“Affiliate” means,

 

(a)          with
respect to any individual Person, any member of the Immediate Family of such Person or a trust established for the benefit of such
member, or

 

(b)          with
respect to any Entity, any Person which, directly or indirectly through one or more intermediaries, controls, is controlled by,
or is under common control with, any such Entity. For purposes of this definition, “control”, when used with respect
to any Person, means the power to direct the management and policies of such Person, directly or indirectly, whether through the
ownership of voting securities, by contract or otherwise, and the terms “controlling” and “controlled”
have meanings correlative to the foregoing.

 

“Agreement” means
this Agreement of Limited Partnership, as originally executed and as amended, supplemented or restated from time to time, as the
context requires.

 

“Articles of Incorporation”
means the Initial Limited Partner’s Articles of Incorporation, filed with the Maryland State Department of Assessments and
Taxation, or other organizational document governing the Initial Limited Partner, as amended, supplemented or restated from time
to time.

 

“Assets” means the
aggregate carrying value of GAAP assets including but not limited to current, fixed, tangible and intangible assets, owned or held
by, or for the account of, the Initial Limited Partner, whether directly or indirectly through the Partnership or any Subsidiary
of the Partnership, excluding Investments and net deferred financing costs.

 

“Assignee” means a
Person to whom one or more Partnership Units have been transferred in a manner permitted under this Agreement, but who has not
become a Substituted Limited Partner, and who has the rights set forth in Section 11.5.

 

“Available Cash” means,
with respect to the applicable period of measurement (i.e., any period (other than the first period in which this calculation of
Available Cash is being made) beginning on the first day of the fiscal year, quarter or other period commencing immediately after
the last day of the fiscal year, quarter or other applicable period for purposes of the prior calculation of Available Cash for
or with respect to which a distribution has been made, and ending on the last day of the fiscal year, quarter or other applicable
period immediately preceding the date of the calculation), the excess, if any, as of such date, of

 

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(a)          the
gross cash receipts of the Partnership for such period from all sources whatsoever, including the following:

 

(i)          all
rents, revenues, income and proceeds derived by the Partnership from its operations, including distributions received by the Partnership
from any Entity in which the Partnership has an interest;

 

(ii)         all
proceeds and revenues received by the Partnership on account of any sales of any Partnership property or as a refinancing of or
payment of principal, interest, costs, fees, penalties or otherwise on account of any borrowings or loans made by the Partnership
or financings or refinancings of any property of the Partnership;

 

(iii)        the
amount of any insurance proceeds and condemnation awards received by the Partnership;

 

(iv)        all
capital contributions and loans received by the Partnership from its Partners;

 

(v)         all
cash amounts previously reserved by the Partnership, to the extent such amounts are no longer needed for the specific purposes
for which such amounts were reserved; and

 

(vi)        the
proceeds of liquidation of the Partnership’s property in accordance with this Agreement;

 

over

 

(b)          the
sum of the following:

 

(i)          all
operating costs and expenses, including taxes and other expenses of the properties directly and indirectly held by the Partnership
and capital expenditures made during such period (without deduction, however, for any capital expenditures, charges for Depreciation
or other expenses not paid in cash or expenditures from reserves described in clause (viii) below);

 

(ii)         all
costs and expenses expended or paid during such period in connection with the sale or other disposition, or financing or refinancing,
of the property directly or indirectly held by the Partnership or the recovery of insurance or condemnation proceeds;

 

(iii)        all
fees provided for under this Agreement;

 

(iv)        all
debt service, including principal and interest, paid during such period on all indebtedness (including under any line of credit)
of the Partnership;

 

(v)         all
capital contributions, advances, reimbursements, loans or similar payments made to any Person in which the Partnership has an interest;

 

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(vi)        all
loans made by the Partnership in accordance with the terms of this Agreement;

 

(vii)       all
reimbursements to the General Partner or its Affiliates during such period; and

 

(viii)      the
amount of any new reserve or reserves or increase in reserves established during such period which the General Partner determines
is necessary or appropriate in its sole and absolute discretion.

 

Notwithstanding the foregoing, Available Cash shall not include
any cash received or reductions in reserves, or take into account any disbursements made or reserves established, after commencement
of the dissolution and liquidation of the Partnership.

 

“Business Combination”
has the meaning set forth in Section 7.1(a)(iii)(D).

 

“Business Day” means
any day except a Saturday, Sunday or other day on which commercial banks in New York, New York are authorized or required by law
to close.

 

“Capital Account”
means with respect to any Partner, the Capital Account maintained for such Partner in accordance with the following provisions:

 

(a)          to
each Partner’s Capital Account there shall be credited;

 

(i)          such
Partner’s Capital Contributions;

 

(ii)         such
Partner’s distributive share of Net Income, Net Property Gain and any items in the nature of income or gain which are specially
allocated to such Partner pursuant to paragraphs 1 and 2 of Exhibit B; and

 

(iii)        the
amount of any Partnership liabilities assumed by such Partner or which are secured by any asset distributed to such Partner;

 

(b)          to
each Partner’s Capital Account there shall be debited;

 

(i)          the
amount of cash and the Gross Asset Value of any property distributed to such Partner pursuant to any provision of this Agreement;

 

(ii)         such
Partner’s distributive share of Net Losses, Net Property Loss and any items in the nature of expenses or losses which are
specially allocated to such Partner pursuant to paragraphs 1 and 2 of Exhibit B; and

 

(iii)        the
amount of any liabilities of such Partner assumed by the Partnership or which are secured by any asset contributed by such Partner
to the Partnership; and

 

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(c)          if
all or a portion of a Partnership Interest is transferred in accordance with the terms of this Agreement, the transferee shall
succeed to the Capital Account of the transferor to the extent it relates to the transferred Partnership Interest.

 

The foregoing provisions and the other provisions of this Agreement
relating to the maintenance of Capital Accounts are intended to comply with Sections 1.704-1(b) and 1.704-2 of the Regulations,
and shall be interpreted and applied in a manner consistent with such Regulations. If the General Partner shall reasonably determine
that it is prudent to modify the manner in which the Capital Accounts, or any debits or credits thereto (including debits or credits
relating to liabilities which are secured by contributed or distributed assets or which are assumed by the Partnership, the General
Partner or any Limited Partner) are computed in order to comply with such Regulations, the General Partner may make such modification;
provided, that, all allocations of Partnership income, gain, loss and deduction continue to have “substantial economic effect”
within the meaning of Section 704(b) of the Code and that no Limited Partner is materially adversely affected by any such modification.

 

“Capital Contribution”
means, with respect to any Partner, any cash, cash equivalents or the Gross Asset Value of property (net of any liabilities secured
by contributed property that the Partnership is considered to assume or take subject to under Section 752 of the Code) which such
Partner contributes or is deemed to contribute to the Partnership pursuant to Article 4 hereof.

 

“Capital Transaction”
means any sale, or other disposition (other than a deemed disposition pursuant to Section 708(b)(1)(B) of the Code and the Regulations
thereunder) of all or substantially all of the assets and properties of the Partnership or a related series of transactions that,
taken together, result in the sale or other disposition of all or substantially all of the assets and properties of the Partnership.

 

“Cash Amount” means
an amount of cash per Partnership Unit equal to the value of one share of Common Stock as determined under the applicable Exchange
Rights Agreement on the Valuation Date of the Common Stock Amount.

 

“Cash Available for Distribution”
means the Available Cash other than Net Sales Proceeds.

 

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

 

“Claims” has the meaning
set forth in Section 7.6(a)(i).

 

“Code” means the Internal
Revenue Code of 1986, as amended and in effect from time to time, as interpreted by the applicable regulations thereunder. Any
reference herein to a specific section or sections of the Code shall be deemed to include a reference to any corresponding provision
of future law.

 

“Common Stock” means
the common stock of the Initial Limited Partner, $.01 par value per share. Common Stock may be issued in one or more classes or
series in accordance with the terms of the Articles of Incorporation. If, at any time, there is more than one class or series of
Common Stock, the term “Common Stock” shall, as the context requires, be deemed to refer to the class or series of
Common Stock that correspond to the class or series of Partnership Interests for which the reference to Common Stock is made.

 

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“Common Stock Amount”
means that number of shares of Common Stock equal to the product of (a) the number of OP Units offered for exchange by an exchanging
Partner, multiplied by (b) the Exchange Factor as of the Valuation Date, provided, however, that if the Initial
Limited Partner or the Partnership issues to all holders of Common Stock rights, options, warrants or convertible, exercisable
or exchangeable securities entitling the stockholders to subscribe for or purchase Common Stock, or any other securities or property
(collectively, the “rights”), then the Common Stock Amount shall also include the rights that a holder of that number
of shares of Common Stock would be entitled to receive.

 

“Consent” means the
consent or approval of a proposed action by a Partner given in accordance with Section 14.2 hereof.

 

“Consent of the Limited Partners”
means the Consent of Limited Partners (excluding for this purpose any Partnership Interests held by the General Partner, any other
Person of which the General Partner owns or controls more than fifty percent (50%) of the voting interests and any Person directly
or indirectly owning or controlling more than fifty percent (50%) of the outstanding voting interests of the General Partner) holding
Percentage Interests that are greater than fifty percent (50%) of the aggregate Percentage Interests of all Limited Partners who
are not excluded for the purposes hereof.

 

“Contributed Property”
means each property, partnership interest, contract right or other asset, in such form as may be permitted by the Act, contributed
or deemed contributed to the Partnership by any Partner, including any interest in any successor partnership occurring as a result
of a termination of the Partnership pursuant to Section 708 of Code.

 

“Debt” means, as to
any Person, as of any date of determination and without duplication, (a) all indebtedness of such Person for borrowed money or
for the deferred purchase price of property or services; (b) all amounts owed by such Person to banks or other Persons in
respect of reimbursement obligations under letters of credit, surety bonds and other similar instruments guaranteeing payment or
other performance of obligations by such Person; (c) all indebtedness for borrowed money or for the deferred purchase price of
property or services secured by any lien on any property owned by such Person, to the extent attributable to such Person’s
interest in such property, even though such Person has not assumed or become liable for the payment thereof; and (d) obligations
of such Person incurred in connection with entering into a lease which, in accordance with generally accepted accounting principles,
should be capitalized.

 

“Depreciation” means,
with respect to any asset of the Partnership for any fiscal year or other period, the depreciation, depletion, amortization or
other cost recovery deduction, as the case may be, allowed or allowable for federal income tax purposes in respect of such asset
for such fiscal year or other period; provided, however, that except as otherwise provided in Section 1.704-2 of
the Regulations, if there is a difference between the Gross Asset Value (including the Gross Asset Value, as increased pursuant
to paragraph (d) of the definition of Gross Asset Value) and the adjusted tax basis of such asset at the beginning of such fiscal
year or other period, Depreciation for such asset shall be an amount that bears the same ratio to the beginning Gross Asset Value
of such asset as the federal income tax depreciation, depletion, amortization or other cost recovery deduction for such fiscal
year or other period bears to the beginning adjusted tax basis of such asset; provided further, however, that
if the federal income tax depreciation, depletion, amortization or other cost recovery deduction for such asset for such fiscal
year or other period is zero, Depreciation of such asset shall be determined with reference to the beginning Gross Asset Value
of such asset using any reasonable method selected by the General Partner.

 

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“Distribution Date”
has the meaning set forth in Section 5.1(a).

 

“Entity” means any
general partnership, limited partnership, corporation, joint venture, trust, business trust, real estate investment trust, limited
liability company, limited liability partnership, cooperative or association.

 

“ERISA” means the
Employee Retirement Income Security Act of 1974, as amended from time to time (or any corresponding provisions of succeeding laws).

 

“Exchange Factor”
means 1.0; provided, however, that if the Initial Limited Partner: (a) declares or pays a dividend on its outstanding
Common Stock in Common Stock or makes a distribution to all holders of its outstanding Common Stock in Common Stock; (b) subdivides
its outstanding Common Stock; or (c) combines its outstanding Common Stock into a smaller number of shares of Common Stock, the
Exchange Factor shall be adjusted by multiplying the Exchange Factor by a fraction, the numerator of which shall be the number
of shares of Common Stock issued and outstanding on the record date for such dividend, contribution, subdivision or combination
(assuming for such purpose that such dividend, distribution, subdivision or combination has occurred as of such time), and the
denominator of which shall be the actual number of shares of Common Stock (determined without the above assumption) issued and
outstanding on the record date for such dividend, distribution, subdivision or combination. Any adjustment to the Exchange Factor
shall become effective immediately after the effective date of such event retroactive to the record date, if any, for such event.

 

“Exchange Right” means
the exchange right of a Limited Partner described in Section 8.6 and to be set forth in one or more Exchange Rights Agreements.

 

“Exchange Rights Agreements”
has the meaning set forth in Section 8.6(a).

 

“Formation Date” has
the meaning set forth in the Recitals.

 

“GAAP” means generally
accepted accounting principles consistently applied as used in the United States.

 

“General Partner”
has the meaning set forth in the Preamble, and any successor as general partner of the Partnership.

 

“General Partner Interest”
means a Partnership Interest held by the General Partner, in its capacity as general partner. A General Partner Interest may be
expressed as a number of GP Units.

 

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“GP Unit” means a
Partnership Unit which is designated as a GP Unit of the Partnership.

 

“Gross Asset Value”
means, with respect to any asset of the Partnership, such asset’s adjusted basis for federal income tax purposes, except
as follows:

 

(a)          the
initial Gross Asset Value of any asset contributed by a Partner to the Partnership shall be the gross fair market value of such
asset, without reduction for liabilities, as determined by the contributing Partner and the Partnership on the date of contribution
thereof;

 

(b)          if
the General Partner determines that an adjustment is necessary or appropriate to reflect the relative economic interests of the
Partners, the Gross Asset Values of all Partnership assets shall be adjusted in accordance with Sections 1.704-1(b)(2)(iv)(f) and
(g) of the Regulations to equal their respective gross fair market values, without reduction for liabilities, as reasonably determined
by the General Partner, as of the following times:

 

(i)          a
Capital Contribution (other than a de minimis Capital Contribution) to the Partnership by a new or existing Partner as consideration
for a Partnership Interest;

 

(ii)         the
distribution by the Partnership to a Partner of more than a de minimis amount of Partnership assets as consideration for
the repurchase or redemption of a Partnership Interest;

 

(iii)        the
liquidation of the Partnership within the meaning of Section 1.704-1(b)(2)(ii)(g) of the Regulations; and

 

(iv)        the
grant of an interest in the Partnership (other than a de minimis interest) as consideration for the provision of services
to or for the benefit of the Partnership by an existing Partner acting in a partner capacity, or by a new Partner acting in a partner
capacity or in anticipation of becoming a Partner;

 

(c)          the
Gross Asset Values of Partnership assets distributed to any Partner shall be the gross fair market values of such assets (taking
Section 7701(g) of the Code into account) without reduction for liabilities, as determined by the General Partner as of the date
of distribution; and

 

(d)          the
Gross Asset Values of Partnership assets shall be increased (or decreased) to reflect any adjustments to the adjusted basis of
such assets pursuant to Sections 734(b) or 743(b) of the Code, but only to the extent that such adjustments are taken into account
in determining Capital Accounts pursuant to Section 1.704-1(b)(2)(iv)(m) of the Regulations (as set forth in Exhibit B);
provided, however, that Gross Asset Values shall not be adjusted pursuant to this paragraph (d) to the extent that
the General Partner determines that an adjustment pursuant to paragraph (b) above is necessary or appropriate in connection with
a transaction that would otherwise result in an adjustment pursuant to this paragraph (d).

 

    	 	8	 

     

    

 

At all times, Gross Asset Values shall be adjusted by any Depreciation
taken into account with respect to the Partnership’s assets for purposes of computing Net Income and Net Loss.

 

“Gross Proceeds”
means the aggregate purchase price of all shares of Common Stock sold for the account of the Initial Limited Partner through an
Offering, without deduction for Organization and Offering Expenses.

 

“Immediate Family”
means a Person’s spouse, parents, grandparents, children, grandchildren, brothers and sisters, mother-in-law and father-in-law,
brothers-in-law and sisters-in-law, daughters-in-law and sons-in-law.

 

“Incapacity” or “Incapacitated”
means,

 

(a)          as
to any individual who is a Partner, death, total physical disability or entry by a court of competent jurisdiction adjudicating
him incompetent to manage his person or his estate;

 

(b)          as
to any corporation which is a Partner, the filing of a certificate of dissolution, or its equivalent, for the corporation or the
revocation of its charter;

 

(c)          as
to any partnership which is a Partner, the dissolution and commencement of winding up of the partnership;

 

(d)          as
to any limited liability company which is a Partner, the dissolution and commencement of winding up of the limited liability company;

 

(e)          as
to any estate which is a Partner, the distribution by the fiduciary of the estate’s entire interest in the Partnership;

 

(f)          as
to any trustee of a trust which is a Partner, the termination of the trust (but not the substitution of a new trustee); or

 

(g)          as
to any Partner, the bankruptcy of such Partner, which shall be deemed to have occurred when:

 

(i)          the
Partner commences a voluntary proceeding seeking liquidation, reorganization or other relief under any bankruptcy, insolvency or
other similar law now or hereafter in effect;

 

(ii)         the
Partner is adjudged as bankrupt or insolvent, or a final and nonappealable order for relief under any bankruptcy, insolvency or
similar law now or hereafter in effect has been entered against the Partner;

 

(iii)        the
Partner executes and delivers a general assignment for the benefit of the Partner’s creditors;

 

    	 	9	 

     

    

 

(iv)        the
Partner files an answer or other pleading admitting or failing to contest the material allegations of a petition filed against
the Partner in any proceeding of the nature described in clause (ii) above;

 

(v)         the
Partner seeks, consents to or acquiesces in the appointment of a trustee, receiver or liquidator for the Partner or for all or
any substantial part of the Partner’s properties;

 

(vi)        any
proceeding seeking liquidation, reorganization or other relief of or against such Partner under any bankruptcy, insolvency or other
similar law now or hereafter in effect has not been dismissed within one hundred twenty (120) days after the commencement thereof;

 

(vii)       the
appointment without the Partner’s consent or acquiescence of a trustee, receiver or liquidator has not been vacated or stayed
within ninety (90) days of such appointment; or

 

(viii)      an
appointment referred to in clause (vii) which has been stayed is not vacated within ninety (90) days after the expiration of any
such stay.

 

“Include”, “includes”
and “including” shall be construed as if followed by the phrase “without limitation”.

 

“Included Investments”
means the Investments owned as of the Termination Date or the Investment Liquidity Date, as applicable.

 

“Indemnitee” means

 

(a)          any
Person made a party to a proceeding by reason of:

 

(i)          its
status as the General Partner,

 

(ii)         its
status as a Limited Partner,

 

(iii)        its
status as an investment advisor to the General Partner or the Initial Limited Partner,

 

(iv)        its
status as a trustee, director or officer of the Partnership, the General Partner, the Initial Limited Partner, or the investment
advisor to the Initial Limited Partner,

 

(v)         its
status as a director, trustee, member or officer of any other Entity, each Person serving in such capacity at the request of the
Partnership, the General Partner or the Initial Limited Partner, or

 

(vi)        his
or its liabilities, pursuant to a loan guarantee or otherwise, for any indebtedness of the Partnership or any Subsidiary of the
Partnership (including any indebtedness which the Partnership or any Subsidiary of the Partnership has assumed or taken assets
subject to); and

 

    	 	10	 

     

    

 

(b)          such
other Persons (including Affiliates of the General Partner, a Limited Partner or the Partnership) as the General Partner may designate
from time to time (whether before or after the event giving rise to potential liability), in its sole and absolute discretion.

 

“Initial Limited Partner”
has the meaning set forth in the Preamble.

 

“Investment” or “Investments”
means any investment or investments by the Partnership, directly or indirectly, in Properties, Loans or other Permitted Investments;
provided that, when a Property, Loan or other Permitted Investment is held through a joint venture, Investment shall refer only
to the Partnership’s equity interest in the joint venture.

 

“Investment Liquidity Amount”
has the meaning set forth in Section 5.1(e).

 

“Investment Liquidity Date”
means the date on which an Investment Liquidity Event is consummated.

 

“Investment Liquidity Event”
means a liquidation or the sale of all or substantially all the Investments (regardless of the form in which such sale shall occur,
including through a merger or sale of stock or other interests in an entity, and regardless of whether such transaction is taxable
or tax-free). For the avoidance of doubt, an Investment Liquidity Event includes a Business Combination and a Transaction (including
a merger in which the Initial Limited Partner is the surviving entity).

 

“Investment Liquidity Value”
has the meaning set forth in Section 5.1(e).

 

“IRS” means the Internal
Revenue Service of the United States (or any successor organization).

 

“Liability Shortfall”
has the meaning set forth in subparagraph 4(d) of Exhibit B.

 

“Liabilities” means
the aggregate carrying value of GAAP liabilities owned or incurred by, or for the account of, the Initial Limited Partner, whether
directly or indirectly through the Partnership or any Subsidiary of the Partnership, including mortgage indebtedness.

 

“Lien” means any lien,
security interest, mortgage, deed of trust, charge, claim, encumbrance, pledge, option, right of first offer or first refusal and
any other right or interest of others of any kind or nature, actual or contingent, or other similar encumbrance of any nature whatsoever.

 

“Limited Partner”
means, prior to the admission of the first Additional Limited Partner to the Partnership, the Initial Limited Partner and thereafter
any Person named as a Limited Partner in Exhibit A, as such Exhibit may be amended from time to time, upon the execution
and delivery by such Person of an additional limited partner signature page, or any Substituted Limited Partner or Additional Limited
Partner, in such Person’s capacity as a Limited Partner of the Partnership.

 

    	 	11	 

     

    

 

“Limited Partner Interest”
means a Partnership Interest of a Limited Partner in the Partnership representing a fractional part of the Partnership Interests
of all Partners and includes any and all benefits to which the holder of such a Partnership Interest may be entitled, as provided
in this Agreement, together with all obligations of such Person to comply with the terms and provisions of this Agreement. A Limited
Partner Interest may be expressed as a number of Partnership Units (other than GP Units).

 

“Liquidating Event”
has the meaning set forth in Section 13.1(b) hereof.

 

“Liquidating Gain”
means net capital gain realized in connection with an actual or hypothetical Capital Transaction, including the amount of any adjustment
of the Gross Asset Value of any Real Estate Asset which requires that the Capital Accounts of the Partners be adjusted pursuant
to Sections 1.704-1(b)(2)(iv)(e), (f) and (g) of the Regulations.

 

“Liquidator” has the
meaning set forth in Section 13.2(a)(iii) hereof.

 

“Listing” means the
listing of the shares of Common Stock on a national securities exchange.

 

“Listing Distribution”
has the meaning set forth in Section 5.1(c) hereof.

 

“Loans” means mortgage
loans and other types of debt financing investments made by the Partnership, either directly or indirectly, including through ownership
interests in a joint venture or other entity and including mezzanine loans, B-notes, bridge loans, convertible mortgages, wraparound
mortgage loans, construction mortgage loans, loans on leasehold interests, and participations in such loans.

 

“Market Value” means
the value calculated based on the average market value of the shares of Common Stock issued and outstanding at Listing during a
period of 30 trading days commencing after the first day of the 6th month, but no later than the last day of the 18th
month, following Listing, the commencement date of which shall be chosen by the Special Limited Partner in its sole discretion.

 

“Net Income” or “Net
Loss” means, for each fiscal year or other applicable period, an amount equal to the Partnership’s taxable
income or loss for such year or period as determined for federal income tax purposes by the General Partner, determined in accordance
with Section 703(a) of the Code (for this purpose, all items of income, gain, loss or deduction required to be stated separately
pursuant to Section 703(a) of the Code shall be included in taxable income or loss), adjusted as follows:

 

(a)          by
including as an item of gross income any tax-exempt income received by the Partnership and not otherwise taken into account in
computing Net Income or Net Loss;

 

    	 	12	 

     

    

 

(b)          by
treating as a deductible expense any expenditure of the Partnership described in Section 705(a)(2)(B) of the Code (or which is
treated as a Section 705(a)(2)(B) expenditure pursuant to Section 1.704-1(b)(2)(iv)(i) of the Regulations) and not otherwise taken
into account in computing Net Income or Net Loss, including amounts paid or incurred to organize the Partnership (unless an election
is made pursuant to Section 709(b) of the Code) or to promote the sale of interests in the Partnership and by treating deductions
for any losses incurred in connection with the sale or exchange of Partnership property disallowed pursuant to Section 267(a)(1)
or 707(b) of the Code as expenditures described in Section 705(a)(2)(B) of the Code;

 

(c)          by
taking into account Depreciation in lieu of depreciation, depletion, amortization and other cost recovery deductions taken into
account in computing taxable income or loss;

 

(d)          by
computing gain or loss resulting from any disposition of Partnership property with respect to which gain or loss is recognized
for federal income tax purposes by reference to the Gross Asset Value of such property rather than its adjusted tax basis;

 

(e)          if
an adjustment of the Gross Asset Value of any Partnership asset which requires that the Capital Accounts of the Partners be adjusted
pursuant to Sections 1.704-1(b)(2)(iv)(e), (f) and (g) of the Regulations, by taking into account the amount of such adjustment
as if such adjustment represented additional Net Income or Net Loss pursuant to Exhibit B;

 

(f)          by
excluding Net Property Gain and Net Property Loss; and

 

(g)          by
not taking into account in computing Net Income or Net Loss items separately allocated to the Partners pursuant to paragraphs 2
and 3 of Exhibit B.

 

“Net Investment” means
(i) as it relates to the Stockholders, the total amount of Gross Proceeds raised in all Offerings; and (ii) as it relates to the
Limited Partners (other than the General Partner in its capacity as a Limited Partner) the total amount of Capital Contributions.

 

“Net Investment Balance”
means the excess, if any, of: (a) the Net Investment, over (b) in each case, without duplication, (i) as it relates to the Stockholders,
all prior distributions to Stockholders of Net Sales Proceeds and any amounts paid by the Initial Limited Partner to repurchase
shares of Common Stock pursuant to the Initial Limited Partner’s plan for repurchase of Common Stock or otherwise; and (ii)
as it relates to the Limited Partners, all distributions pursuant to Section 5.1(b)(i) (other than distributions to the Initial
Limited Partner), and all proceeds or property used to redeem Limited Partner Interests (except those held directly or indirectly
by the Initial Limited Partner).

 

“Net Property Gain”
or “Net Property Loss” means, for each fiscal year or other applicable period, an amount equal to the
Partnership’s taxable gain or loss for such year or period from Sales, including the amount of any adjustment of the Gross
Asset Value of any Real Estate Asset which requires that the Capital Accounts of the Partners be adjusted pursuant to Sections
1.704-1(b)(2)(iv)(e), (f) and (g) of the Regulations. For these purposes, the Gross Asset Value of the Real Estate Assets shall
reflect the market capitalization of the Initial Limited Partner (increased by the amount of any Partnership liabilities).

 

    	 	13	 

     

    

 

“Net Sales Proceeds”
means, in the case of a transaction described in clause (i)(A) of the definition of Sales, the proceeds of any such transaction
less the amount of selling expenses incurred by or on behalf of the Initial Limited Partner or the Partnership, including all real
estate commissions, closing costs and legal fees and expenses. In the case of a transaction described in clause (i)(B) of the definition
of Sales, Net Sales Proceeds means the proceeds of any such transaction less the amount of selling expenses incurred by or on behalf
of the Initial Limited Partner or the Partnership, including any legal fees and expenses and other selling expenses incurred in
connection with such transaction. In the case of a transaction described in clause (i)(C) of the definition of Sale, Net Sales
Proceeds means the proceeds of any such transaction actually distributed to the Initial Limited Partner or the Partnership from
the joint venture less the amount of any selling expenses, including legal fees and expenses incurred by or on behalf of the Initial
Limited Partner or the Partnership (other than those paid by the joint venture). In the case of a transaction described in clause
(i)(D) of the definition of Sales, Net Sales Proceeds means the proceeds of any such transaction less the amount of selling expenses
incurred by or on behalf of the Initial Limited Partner or the Partnership, including any legal fees and expenses and other selling
expenses incurred in connection with such transaction. In the case of a transaction described in clause (i)(E) of the definition
of Sales, Net Sales Proceeds means the proceeds of any such transaction less the amount of selling expenses incurred by or on behalf
of the Initial Limited Partner or the Partnership, including any legal fees and expenses and other selling expenses incurred in
connection with such transaction.

 

“Nonrecourse Deductions”
has the meaning set forth in Sections 1.704-2(b)(1) and 1.704-2(c) of the Regulations.

 

“Nonrecourse Liabilities”
has the meaning set forth in Section 1.704-2(b)(3) of the Regulations.

 

“Note” means a non-interest
bearing promissory note which shall be repaid from the Net Sales Proceeds of each sale of an Investment that occurs after the date
of Listing or the Termination Date, as applicable. The Partnership shall be the sole obligor with respect to any Note, and may
pay at its discretion all or a portion of such Note in shares of Common Stock, which may or may not be registered under the Securities
Act of 1933, as amended, or cash. Any Note shall not represent an indebtedness of the Partnership, but rather shall be evidence
of a distribution obligation of the Partnership to the Special Limited Partner pursuant to the terms of Section 5.1.

 

“Offer” has the meaning
set forth in Section 11.2(c)(i).

 

“Offering” means any
public or private offering of shares of Common Stock.

 

“OP Unit” means a
Partnership Unit which is designated as an OP Unit of the Partnership.

 

“OP Unit Economic Balance”
has the meaning set forth in subparagraph 1(c)(ii) of Exhibit B.

 

    	 	14	 

     

    

 

“Organization and Offering Expenses”
means any and all costs and expenses incurred by the Initial Limited Partner, the Special Limited Partner or any Affiliate of either
in connection with and in preparing the Initial Limited Partner for registration of and subsequently offering and distributing
its Securities to the public, whether performed by a third party or internally by the Special Limited Partner or its Affiliates,
which may include, but are not limited to, (a) total underwriting and brokerage discounts and commissions (including fees of the
underwriters’ attorneys), (b) legal, tax, accounting and escrow fees, (c) expenses for printing, engraving, amending, supplementing
and mailing, (d) distribution costs, (e) compensation to employees while engaged in registering, marketing and wholesaling the
Securities or providing administrative services relating thereto, (f) telegraph and telephone costs, (g) all advertising and marketing
expenses (including the costs related to investor and broker-dealer sales meetings), (h) charges of transfer agents, registrars,
trustees, escrow holders, depositories and experts, (i) fees, expenses and taxes related to the filing, registration and qualification
of the sale of the Securities under federal and state laws, including accountants’ and attorneys’ fees and other accountable
offering expenses, (j) amounts to reimburse the Special Limited Partner for all marketing related costs and expenses such as compensation
to and direct expenses of the Special Limited Partner’s employees or employees of the Special Limited Partner’s Affiliates
in connection with registering and marketing the Securities, (k) travel and entertainment expenses related to the offering and
marketing of the Securities, (l) facilities and technology costs and other costs and expenses associated with the offering and
ownership of the Securities and to facilitate the marketing of the Securities including web site design and management, (m) costs
and expenses of conducting training and educational conferences and seminars, (n) costs and expenses of attending broker-dealer
sponsored retail seminars or conferences, and (o) payment or reimbursement of bona fide due diligence expenses, including compensation
to employees while engaged in the provision or support of bona fide due diligence services.

 

“Partner” means the
General Partner or a Limited Partner, and “Partners” means the General Partner and the Limited Partners collectively.
Solely for purposes of Exhibit B, “Partner” shall include the Special Limited Partner.

 

“Partner Nonrecourse Debt”
has the meaning set forth in Section 1.704-2(b)(4) of the Regulations.

 

“Partner Nonrecourse Debt Minimum
Gain” means an amount, with respect to each Partner Nonrecourse Debt, equal to the Partnership Minimum Gain that
would result if such Partner Nonrecourse Debt were treated as a Nonrecourse Liability, determined in accordance with Section 1.704-2(i)(3)
of the Regulations.

 

“Partner Nonrecourse Deductions”
has the meaning set forth in Sections 1.704-2(i)(1) and (2) of the Regulations, and the amount of Partner Nonrecourse Deductions
with respect to a Partner Nonrecourse Debt for a Partnership taxable year shall be determined in accordance with the rules of Section
1.704-2(i)(2) of the Regulations.

 

“Partnership” means
the limited partnership formed under the Act and pursuant to this Agreement, and any successor thereto.

 

    	 	15	 

     

    

 

“Partnership Interest”
means an ownership interest in the Partnership representing a Capital Contribution by either a Limited Partner or the General Partner
or the provision of services to or for the benefit of the Partnership by an existing Partner acting in a partner capacity, or by
a new Partner acting in a partner capacity or in anticipation of becoming a Partner, and includes any and all benefits to which
the holder of such a Partnership Interest may be entitled as provided in this Agreement, together with all obligations of such
Person to comply with the terms and provisions of this Agreement. A Partnership Interest may be expressed as a number of Partnership
Units.

 

“Partnership Minimum Gain”
has the meaning set forth in Section 1.704-2(b)(2) of the Regulations, and the amount of Partnership Minimum Gain, as well as any
net increase or decrease in a Partnership Minimum Gain, for a Partnership taxable year shall be determined in accordance with the
rules of Section 1.704-2(d) of the Regulations.

 

“Partnership Record Date”
means the record date established by the General Partner for a distribution pursuant to Section 5.1(a) hereof, which record date
shall be the same as the record date established by the General Partner for a distribution to its stockholders of some or all of
its portion of such distribution.

 

“Partnership Unit”
means a fractional, undivided share of the Partnership Interests of all Partners issued hereunder. Partnership Units consist of
GP Units, OP Units and any classes or series of Partnership Units established after the date hereof. The number of Partnership
Units outstanding and the Percentage Interests in the Partnership represented by such Partnership Units are set forth in Exhibit
A, as such Exhibit may be amended from time to time. The ownership of Partnership Units shall be evidenced by such form of
certificate for Partnership Units as the General Partner adopts from time to time unless the General Partner determines that the
Partnership Units shall be uncertificated securities.

 

“Partnership Year”
means the fiscal year of the Partnership, as set forth in Section 9.2 hereof.

 

“Percentage Interest”
means, as to a Partner, the fractional part of the Partnership Interests owned by such Partner and expressed as a percentage as
specified in Exhibit A, as such Exhibit may be amended from time to time.

 

“Permitted Investments”
means all investments (other than Properties and Loans) in which the Partnership acquires an interest, either directly or indirectly,
including through ownership interests in a joint venture or other entity, pursuant to the Certificate, this Agreement and the investment
objectives and policies adopted by the Initial Limited Partner from time to time, other than short-term investments acquired for
purposes of cash management, and that allow the Initial Limited Partner to meet the REIT Requirements.

 

“Permitted Transferee”
means any person to whom Partnership Units are Transferred in accordance with Section 11.3.

 

“Person” means an
individual or Entity.

 

“Precontribution Gain”
has the meaning set forth in subparagraph 4(c) of Exhibit B.

 

    	 	16	 

     

    

 

“Priority Return”
means a 6% cumulative, non-compounded, pre-tax annual return (based on a 365-day year).

 

“Priority Return Balance”
means, as of any date, the excess, if any, of (a) a Priority Return from the Formation Date until such Distribution Date on the
Net Investment Balance (calculated like simple interest on a daily basis based on a 365-day year), over (b) distributions made
under Sections 5.1(a) and (b)(ii); provided, however, that for purposes of calculating the Priority Return Balance, the
Net Investment Balance shall be determined on a daily basis.

 

“Property” or “Properties”
means any real property or properties transferred or conveyed to the Partnership or any subsidiary of the Partnership, either directly
or indirectly, and/or any real property or properties transferred or conveyed to a joint venture or partnership in which the Partnership
is, directly or indirectly, a co-venturer or partner.

 

“PTP Safe Harbors”
has the meaning set forth in Section 11.6(f).

 

“Quarter” means each
of the three-month periods ending on March 31, June 30, September 30 and December 31.

 

“Real Estate Assets”
means any investment by the Partnership in unimproved and improved Real Property (including fee or leasehold interests, options
and leases), directly, through one or more subsidiaries or through a joint venture (net of any interest held in such investment
by a partner or member of a joint venture unaffiliated with the Partnership).

 

“Real Property” means
(i) land, (ii) rights in land (including leasehold interests), and (iii) any buildings, structures, improvements, furnishings,
fixtures and equipment located on or used in connection with land and rights or interests in land.

 

“Registration Statement”
means a Registration Statement on Form S-11 filed by the Initial Limited Partner with the Securities and Exchange Commission, and
any amendments thereof at any time made, relating to the Common Stock.

 

“Regulations” means
the final, temporary or proposed income tax regulations promulgated under the Code, as such regulations may be amended from time
to time (including corresponding provisions of succeeding regulations).

 

“Regulatory Allocations”
means the allocations set forth in paragraph 2 of Exhibit B.

 

“REIT” means a real
estate investment trust as defined in Section 856 of the Code.

 

“REIT Requirements”
has the meaning set forth in Section 5.2.

 

“Safe Harbor” has
the meaning set forth in Section 10.2(d).

 

“Safe Harbor Election”
has the meaning set forth in Section 10.2(d).

 

“Safe Harbor Interests”
has the meaning set forth in Section 10.2(d).

 

    	 	17	 

     

    

 

“Sales” means (i)
any transaction or series of transactions whereby: (A) the Initial Limited Partner or the Partnership sells, grants, transfers,
conveys, or relinquishes its ownership of any Investment or portion thereof, including the lease of any Property consisting of
the building only, and including any event with respect to any Investment that gives rise to a significant amount of insurance
proceeds or condemnation awards; (B) the Initial Limited Partner or the Partnership sells, grants, transfers, conveys or relinquishes
its ownership of all or substantially all of the interest of the Initial Limited Partner or the Partnership in any joint venture
or partnership in which it is a co-venturer or partner; (C) any joint venture or partnership (in which the Initial Limited Partner
or the Partnership is a co-venturer or partner) sells, grants, transfers, conveys or relinquishes its ownership of any Investment
or portion thereof, including any event with respect to any Investment that gives rise to insurance claims or condemnation awards,
(D) the Initial Limited Partner or the Partnership sells, grants, conveys or relinquishes its interest in any asset, or portion
thereof, including any event with respect to any asset which gives rise to a significant amount of insurance proceeds or similar
awards, or (E) the Initial Limited Partner or the Partnership sells or otherwise disposes of or distributes all of its assets in
a liquidation, but (ii) not including any transaction or series of transactions specified in clause (i)(A), (i)(B), (i)(C), (i)(D)
or (i)(E) above in which the proceeds of such transaction or series of transactions are reinvested in one or more Investments within
180 days thereafter.

 

“Securities” has the
meaning set forth in Section 4.2(b).

 

“Special Limited Partner”
has the meaning set forth in the Preamble, which shall be a limited partner of the Partnership and recognized as such under applicable
Delaware law, but not a “Limited Partner” within the meaning of this Agreement.

 

“Special Limited Partner Interest”
means the interest of the Special Limited Partner in the Partnership representing its right as the holder of an interest in distributions
described in Sections 5.1(b)(iii)(A), (c), (d), (e) and (f) (and any corresponding allocations of income, gain, loss and deduction
under this Agreement).

 

“Stockholder” means
a holder of Common Stock.

 

“Stockholder Distributions”
means any distributions of money or other property by the Initial Limited Partner to Stockholders, including distributions that
may constitute a return of capital for U.S. federal income tax purposes, with the exception of distributions paid on shares of
Common Stock repurchased or redeemed by the Initial Limited Partner.

 

“Subsidiary” means,
with respect to any Person, any corporation, partnership, limited liability company or other entity of which a majority of (a)
the voting power of the voting equity securities; or (b) the outstanding equity interests (whether or not voting), is owned, directly
or indirectly, by such Person.

 

“Substituted Limited Partner”
means a Person who is admitted as a Limited Partner to the Partnership pursuant to Section 11.4.

 

“Surviving Partner”
has the meaning set forth in Section 11.2(d)(i)(A).

 

“Tax Allocations”
means the allocations set forth in paragraph 4 of Exhibit B.

 

    	 	18	 

     

    

 

“Tax Items” has the
meaning set forth in subparagraph 4(a) of Exhibit B.

 

“Termination” means
the termination of the Advisory Agreement; provided that a termination shall not be deemed to occur if the subsequent advisor to
the Initial Limited Partner is an Affiliate of the Special Limited Partner.

 

“Termination Amount”
means the Termination Liquidity Amount, the Termination Listing Amount or the amount distributable pursuant to Section 5.1(d)(i)
in the form of a Termination Note.

 

“Termination Date”
means the date of Termination.

 

“Termination Liquidity Amount”
has the meaning set forth in Section 5.1(d)(ii)(B).

 

“Termination Listing Amount”
has the meaning set forth in Section 5.1(d)(ii)(A).

 

“Termination Note”
has the meaning set forth in Section 5.1(d)(i).

 

“Termination Without Cause”
means the termination of the Advisory Agreement as provided in the Advisory Agreement by the Independent Directors (as defined
in the Advisory Agreement) of the Initial Limited Partner without cause; provided that a termination shall not be deemed to occur
if the subsequent advisor to the Initial Limited Partner is an Affiliate of the Special Limited Partner.

 

“Transaction” has
the meaning set forth in Section 11.2(c).

 

“Transfer” as a noun,
means any sale, assignment, conveyance, pledge, hypothecation, gift, encumbrance or other transfer, and as a verb, means to sell,
assign, convey, pledge, hypothecate, give, encumber or otherwise transfer.

 

“Valuation Date” means
the date of receipt by the Partnership and the General Partner of notice from an exchanging Partner that such Partner is exercising
its Exchange Rights or, if such date is not a Business Day, the first Business Day thereafter.

 

“Value” means the
most recent Offering price for a share of Common Stock less any selling commissions and dealer manager fee that would be payable
with respect to the sale of a share of Common Stock.

 

Certain additional terms and phrases have the
meanings set forth in Exhibit B.

 

Article
2

ORGANIZATIONAL MATTERS

 

2.1           Formation

 

The General Partner and the Initial Limited
Partner have formed the Partnership by filing the Certificate on July 29, 2016 in the office of the Delaware Secretary of State.
The Partnership is a limited partnership organized pursuant to the provision of the Act and upon the terms and conditions set forth
in this Agreement. Except as expressly provided herein to the contrary, the rights and obligations of the Partners and the administration
and termination of the Partnership shall be governed by the Act. The Partnership Interest of each Partner shall be personal property
for all purposes.

 

    	 	19	 

     

    

 

2.2           Name

 

The name of the Partnership is Phillips Edison
Grocery Center Operating Partnership III, L.P. The Partnership’s business may be conducted under any other name or names
deemed advisable by the General Partner, including the name of the Initial Limited Partner or any Affiliate thereof. The words
“Limited Partnership”, “LP”, “Ltd.” or similar words, phrases or letters shall be included
in the Partnership’s name where necessary for the purposes of complying with the laws of any jurisdiction that so requires.
The General Partner in its sole and absolute discretion may change the name of the Partnership and shall notify the Limited Partners
of such change in the next regular communication to the Limited Partners.

 

2.3           Registered
Office and Agent; Principal Office

 

The address of the registered office of the
Partnership in the State of Delaware and the name and address of the registered agent for service of process on the Partnership
in the State of Delaware is the Corporation Trust Company, Corporation Trust Center, 1209 Orange Street, Wilmington, Delaware 19801.
The principal office of the Partnership shall be 11501 Northlake Drive, Cincinnati, Ohio 45249, or such other place as the General
Partner may from time to time designate by notice to the Limited Partners. The Partnership may maintain offices at such other place
or places within or outside the State of Delaware as the General Partner deems advisable.

 

2.4           Power
of Attorney

 

(a)          Each
Limited Partner and each Assignee who accepts Partnership Units (or any rights, benefits or privileges associated therewith) is
deemed to irrevocably constitute and appoint the General Partner, any Liquidator, and authorized officers and attorneys-in-fact
of each, and each of those acting singly, in each case with full power of substitution, as its true and lawful agent and attorney-in-fact,
with full power and authority in its name, place and stead to:

 

(i)          execute,
swear to, acknowledge, deliver, file and record in the appropriate public offices

 

(A)         all
certificates, documents and other instruments (including this Agreement and the Certificate and all amendments or restatements
thereof) that the General Partner or the Liquidator deems appropriate or necessary to form, qualify or continue the existence or
qualification of the Partnership as a limited partnership (or a partnership in which the Limited Partners have limited liability)
in the State of Delaware and in all other jurisdictions in which the Partnership may or plans to conduct business or own property,
including any documents necessary or advisable to convey any Contributed Property to the Partnership;

 

    	 	20	 

     

    

 

(B)         all
instruments that the General Partner or any Liquidator deems appropriate or necessary to reflect any amendment, change, modification
or restatement of this Agreement in accordance with its terms;

 

(C)         all
conveyances and other instruments or documents that the General Partner or any Liquidator deems appropriate or necessary to reflect
the dissolution and liquidation of the Partnership pursuant to the terms of this Agreement, including a certificate of cancellation;

 

(D)         all
instruments relating to the admission, withdrawal, removal or substitution of any Partner pursuant to, or other events described
in, Article 11, 12 or 13 hereof or the Capital Contribution of any Partner;

 

(E)         all
certificates, documents and other instruments relating to the determination of the rights, preferences and privileges of Partnership
Interest; and

 

(F)         amendments
to this Agreement as provided in Article 14 hereof; and

 

(ii)         execute,
swear to, seal, acknowledge and file all ballots, consents, approvals, waivers, certificates and other instruments appropriate
or necessary, in the sole and absolute discretion of the General Partner or any Liquidator, to make, evidence, give, confirm or
ratify any vote, consent, approval, agreement or other action which is made or given by the Partners hereunder or is consistent
with the terms of this Agreement or appropriate or necessary, in the sole discretion of the General Partner or any Liquidator,
to effectuate the terms or intent of this Agreement.

 

Nothing contained herein shall be construed as authorizing the General
Partner or any Liquidator to amend this Agreement except in accordance with Article 14 hereof or as may be otherwise expressly
provided for in this Agreement.

 

(b)          (i)          The
foregoing power of attorney is hereby declared to be irrevocable and a power coupled with an interest, in recognition of the fact
that each of the Limited Partners will be relying upon the power of the General Partner and any Liquidator to act as contemplated
by this Agreement in any filing or other action by it on behalf of the Partnership, and it shall survive and not be affected by
the subsequent Incapacity of any Limited Partner or Assignee and the Transfer of all or any portion of such Limited Partner’s
or Assignee’s Partnership Units and shall extend to such Limited Partner’s or Assignee’s heirs, successors, assigns
and personal representatives.

 

(ii)         Each
such Limited Partner or Assignee hereby agrees to be bound by any representation made by the General Partner or any Liquidator,
acting in good faith pursuant to such power of attorney, and each such Limited Partner or Assignee hereby waives any and all defenses
which may be available to contest, negate or disaffirm the action of the General Partner or any Liquidator, taken in good faith
under such power of attorney.

 

    	 	21	 

     

    

 

(iii)        Each
Limited Partner or Assignee shall execute and deliver to the General Partner or the Liquidator, within fifteen (15) days after
receipt of the General Partner’s or Liquidator’s request therefore, such further designation, powers of attorney and
other instruments as the General Partner or the Liquidator, as the case may be, deems necessary to effectuate this Agreement and
the purposes of the Partnership.

 

(c)          For
the purposes of this Section 2.4, the term “Limited Partner” shall be deemed to include the Special Limited Partner,
unless the context otherwise requires.

 

2.5           Term

 

The term of the Partnership shall commence on
the date hereof and shall continue until December 31, 2099, unless the Partnership is dissolved sooner pursuant to the provisions
of Article 13 or as otherwise provided by law.

 

Article
3

PURPOSE

 

3.1           Purpose
and Business

 

(a)          The
purpose and nature of the business to be conducted by the Partnership is to conduct any business that may be lawfully conducted
by a limited partnership organized pursuant to the Act including to engage in the following activities:

 

(i)          to
acquire, hold, own, develop, construct, improve, maintain, operate, sell, lease, transfer, encumber, convey, exchange, and otherwise
dispose of or deal with real and personal property of all kinds;

 

(ii)         to
enter into any partnership, joint venture, corporation, limited liability company, trust or other similar arrangement to engage
in any of the foregoing;

 

(iii)        to
undertake such other activities as may be necessary, advisable, desirable or convenient to the business of the Partnership; and

 

(iv)        to
engage in such other ancillary activities as shall be necessary or desirable to effectuate the foregoing purposes;

 

provided, however, that such business shall be limited
to and conducted in such a manner as to permit the Initial Limited Partner at all times to be classified as a REIT, unless the
Initial Limited Partner determines not to qualify as a REIT or ceases to qualify as a REIT for any reason not related to the business
conducted by the Partnership.

 

(b)          The
Partnership shall have all powers necessary or desirable to accomplish the purposes enumerated.

 

    	 	22	 

     

    

 

3.2           Powers

 

(a)          The
Partnership is empowered to do any and all acts and things necessary, appropriate, proper, advisable, incidental to or convenient
for the furtherance and accomplishment of the purposes and business described herein and for the protection and benefit of the
Partnership including full power and authority to enter into, perform, and carry out contracts of any kind, to borrow money and
to issue evidences of indebtedness, whether or not secured by mortgage, trust deed, pledge or other Lien, and, directly or indirectly,
to acquire, own, improve, develop and construct real property, and lease, sell, transfer and dispose of real property; provided,
however, that the Partnership shall not take, or refrain from taking, any action which, in the judgment of the General Partner,
in its sole and absolute discretion,

 

(i)          could
adversely affect the ability of the Initial Limited Partner to continue to qualify as a REIT, unless the Initial Limited Partner
otherwise ceases to qualify as a REIT;

 

(ii)         could
subject the Initial Limited Partner to any additional taxes under Section 857 or Section 4981 of the Code; or

 

(iii)        could
violate any law or regulation of any governmental body or agency having jurisdiction over the Initial Limited Partner or its securities,
unless such action (or inaction) shall have been specifically consented to by the Initial Limited Partner in writing.

 

(b)          The
General Partner also is empowered to do any and all acts and things necessary, appropriate or advisable to ensure that the Partnership
will not be classified as a “publicly traded partnership” for the purposes of Section 7704 of the Code, including but
not limited to imposing restrictions on exchanges of Partnership Units.

 

Article
4

CAPITAL CONTRIBUTIONS

 

4.1           Capital
Contributions of the Partners

 

(a)          The
Partners have made the Capital Contributions as set forth in Exhibit A.

 

(b)          To
the extent the Partnership acquires any property by the merger of any other Person into the Partnership or the contribution of
assets by any other Person, Persons who receive Partnership Interests in exchange for their interests in the Person merging into
or contributing assets to the Partnership shall become Limited Partners and shall be deemed to have made Capital Contributions
as provided in the applicable merger agreement or contribution agreement and as set forth in Exhibit A, as amended to reflect
such deemed Capital Contributions.

 

(c)          As
of the effective date of this Agreement, the Partnership shall have two classes of Partnership Units, entitled “GP Units”
and “OP Units”, respectively. Each Partner shall own Partnership Units in the amounts set forth for such Partner in
Exhibit A and shall have a Percentage Interest in the Partnership as set forth in Exhibit A, which Percentage Interest
shall be adjusted in Exhibit A from time to time by the General Partner to the extent necessary to reflect accurately exchanges,
additional Capital Contributions, the issuance of additional Partnership Units, transfers of Partnership Units or similar events
having an effect on any Partner’s Percentage Interest.

 

    	 	23	 

     

    

 

(d)          The
number of Partnership Units held by the General Partner, in its capacity as general partner, as evidenced by GP Units, shall be
deemed to be the General Partner Interest.

 

(e)          Except
as otherwise may be expressly provided herein, the Partners shall have no obligation to make any additional Capital Contributions
or provide any additional funding to the Partnership (whether in the form of loans, repayments of loans or otherwise) and no Partner
shall have any obligation to restore any deficit that may exist in its Capital Account, either upon a liquidation of the Partnership
or otherwise.

 

4.2           Additional
Funds; Restrictions on the Initial Limited Partner

 

(a)          (i)          The
sums of money required to finance the business and affairs of the Partnership shall be derived from the Capital Contributions made
to the Partnership by the Partners as set forth in Section 4.1 and from funds generated from the operation and business of the
Partnership, including rents and distributions directly or indirectly received by the Partnership from any Subsidiary.

 

(ii)         If
additional financing is needed from sources other than as set forth in Section 4.2(a)(i) for any reason, the General Partner may,
in its sole and absolute discretion, in such amounts and at such times as it solely shall determine to be necessary or appropriate,

 

(A)         cause
the Partnership to issue additional Partnership Interests and admit additional Limited Partners to the Partnership in accordance
with Section 4.3;

 

(B)         make
additional Capital Contributions to the Partnership (subject to the provisions of Section 4.2(b));

 

(C)         cause
the Partnership to borrow money, enter into loan arrangements, issue debt securities, obtain letters of credit or otherwise borrow
money on a secured or unsecured basis;

 

(D)         make
a loan or loans to the Partnership (subject to Section 4.2(b)); or

 

(E)         sell
any assets or properties directly or indirectly owned by the Partnership.

 

(iii)        In
no event shall any Limited Partners be required to make any additional Capital Contributions or any loan to, or otherwise provide
any financial accommodation for the benefit of, the Partnership.

 

    	 	24	 

     

    

 

(b)          The
Initial Limited Partner shall not issue any debt Securities, any preferred stock or any common stock (including additional Common
Stock (other than (i) as payment of the Common Stock Amount or (ii) in connection with the conversion or exchange of securities
of the Initial Limited Partner solely in conversion or exchange for other securities of the Initial Limited Partner)) or rights,
options, warrants or convertible, exercisable or exchangeable securities containing the right to subscribe for or purchase any
of the foregoing (collectively, “Securities”), other than to all holders of Common Stock, unless the Initial
Limited Partner shall:

 

(i)          in
the case of debt securities, lend to the Partnership the proceeds of or consideration received for such Securities on the same
terms and conditions, including interest rate and repayment schedule, as shall be applicable with respect to or incurred in connection
with the issuance of such Securities and the proceeds of, or consideration received from, any subsequent exercise, exchange or
conversion thereof (if applicable);

 

(ii)         in
the case of equity Securities senior or junior to the Common Stock as to dividends and distributions on liquidation, contribute
to the Partnership the proceeds of or consideration (including any property or other non-cash assets) received for such Securities
and the proceeds of, or consideration received from, any subsequent exercise, exchange or conversion thereof (if applicable), and
receive from the Partnership, interests in the Partnership in consideration therefor with the same terms and conditions, including
dividend, dividend priority and liquidation preference, as are applicable to such Securities; and

 

(iii)        in
the case of Common Stock or other equity Securities on a parity with the Common Stock as to dividends and distributions on liquidation
(including Common Stock or other Securities granted as a stock award to directors and officers of the Initial Limited Partner or
directors, officers or employees of its Affiliates in consideration for services or future services, and Common Stock issued pursuant
to a distribution reinvestment plan or issued to enable the Initial Limited Partner to make distributions to satisfy the REIT Requirements),
contribute to the Partnership the proceeds of or consideration (including any property or other non-cash assets, including services)
received for such Securities and the proceeds of, or consideration received from, any subsequent exercise, exchange or conversion
thereof (if applicable), and receive from the Partnership a number of additional Partnership Units in consideration therefor equal
to the product of

 

(A)         the
number of shares of Common Stock or other equity Securities issued by the Initial Limited Partner, multiplied by

 

(B)         a
fraction the numerator of which is one and the denominator of which is the Exchange Factor in effect on the date of such contribution.

 

    	 	25	 

     

    

 

4.3           Issuance
of Additional Partnership Interests; Admission of Additional Limited Partners

 

(a)          In
addition to any Partnership Interests issuable by the Partnership pursuant to Section 4.2, the General Partner is authorized to
cause the Partnership to issue additional Partnership Interests (or options therefor) in the form of Partnership Units or other
Partnership Interests in one or more series or classes, or in one or more series of any such class senior, on a parity with, or
junior to the Partnership Units to any Persons at any time or from time to time, on such terms and conditions, as the General Partner
shall establish in each case in its sole and absolute discretion subject to Delaware law, including (i) the allocations of items
of Partnership income, gain, loss, deduction and credit to each class or series of Partnership Interests, (ii) the right of each
class or series of Partnership Interests to share in Partnership distributions, and (iii) the rights of each class or series
of Partnership Interest upon dissolution and liquidation of the Partnership; provided, however, that, no such Partnership
Interests shall be issued to the General Partner or the Initial Limited Partner unless either (A) the Partnership Interests are
issued in connection with the grant, award, or issuance of Common Stock or other equity interests in the Initial Limited Partner
having designations, preferences and other rights such that the economic interests attributable to such Common Stock or other equity
interests are substantially similar to the designations, preferences and other rights (except voting rights) of the Partnership
Interests issued to the Initial Limited Partner in accordance with this Section 4.3(a) or (B) the additional Partnership Interests
are issued to all Partners holding Partnership Interests in the same class in proportion to their respective Percentage Interests
in such class, without any approval being required from any Limited Partner or any other Person; provided further, however,
that:

 

(i)          such
issuance does not cause the Partnership to become, with respect to any employee benefit plan subject to Title I of ERISA or Section
4975 of the Code, a “party in interest” (as defined in Section 3(14) of ERISA) or a “disqualified person”
(as defined in Section 4975(e) of the Code); and

 

(ii)         such
issuance would not cause any portion of the assets of the Partnership to constitute assets of any employee benefit plan pursuant
to Section 2510.3-101 of the regulations of the United States Department of Labor.

 

(b)          Subject
to the limitations set forth in Section 4.3(a), the General Partner may take such steps as it, in its sole and absolute discretion,
deems necessary or appropriate to admit any Person as a Limited Partner of the Partnership or to issue any Partnership Interests,
including amending the Certificate, Exhibit A or any other provision of this Agreement.

 

4.4           Contribution
of Proceeds of Issuance of Common Stock

 

In connection with any offering, grant, award,
or issuance of Common Stock or securities, rights, options, warrants or convertible or exchangeable securities pursuant to Section
4.2, the Initial Limited Partner shall make aggregate Capital Contributions to the Partnership of the proceeds raised in connection
with such offering, grant, award, or issuance, including any property issued to the Initial Limited Partner pursuant to a merger
or contribution agreement in exchange for Common Stock; provided, however, that if the proceeds actually received by the Initial
Limited Partner are less than the gross proceeds of such offering, grant, award, or issuance as a result of any underwriter’s
discount, commission, or fee or other expenses paid or incurred in connection with such offering, grant, award, or issuance, then
the Initial Limited Partner shall make a Capital Contribution to the Partnership in the amount equal to the sum of (i) the net
proceeds of such issuance plus (ii) an intangible asset in an amount equal to the capitalized costs of the Initial Limited Partner
relating to such issuance of Common Stock. Upon any such Capital Contribution by the Initial Limited Partner, the Capital Account
of the Initial Limited Partner shall be increased by the amount of its Capital Contribution as described in the previous sentence.

 

    	 	26	 

     

    

 

4.5           Repurchase
of Common Stock; Shares-In-Trust

 

(a)          If
the Initial Limited Partner shall elect to purchase from its stockholders Common Stock for the purpose of delivering such Common
Stock to satisfy an obligation under any distribution reinvestment plan adopted by the Initial Limited Partner, any employee stock
purchase plan adopted by the Initial Limited Partner, or for any other purpose, the purchase price paid by the Initial Limited
Partner for such Common Stock and any other expenses incurred by the Initial Limited Partner in connection with such purchase shall
be considered expenses of the Partnership and shall be reimbursed to the Initial Limited Partner, subject to the condition that:

 

(i)          if
such Common Stock subsequently is to be sold by the Initial Limited Partner, the Initial Limited Partner shall pay to the Partnership
any proceeds received by the Initial Limited Partner from the sale of such Common Stock (provided that an exchange of Common Stock
for Partnership Units pursuant to the applicable Exchange Rights Agreement would not be considered a sale for such purposes); and

 

(ii)         if
such Common Stock is not re-transferred by the Initial Limited Partner within 30 days after the purchase thereof, the Initial Limited
Partner shall cause the Partnership to cancel a number of Partnership Units held by the Initial Limited Partner (as applicable)
equal to the product of

 

(A)         the
number of shares of such Common Stock, multiplied by

 

(B)         a
fraction, the numerator of which is one and the denominator of which is the Exchange Factor in effect on the date of such cancellation.

 

(b)          If
the Initial Limited Partner purchases shares of Common Stock from the Trust (as from time to time defined in the Articles of Incorporation),
the Partnership will purchase from the Initial Limited Partner a number of Partnership Units, at a price per Partnership Unit equal
to the price per share of Common Stock paid by the Initial Limited Partner, equal to the product of

 

(i)          the
number of shares of Common Stock purchased by the Initial Limited Partner from the Trust, multiplied by

 

(ii)         a
fraction, the numerator of which is one and the denominator of which is the Exchange Factor in effect on the date of such purchase.

 

4.6           No
Third-Party Beneficiary

 

No creditor or other third party having dealings
with the Partnership shall have the right to enforce the right or obligations of any Partner to make Capital Contributions or loans
or to pursue any other right or remedy hereunder or at law or in equity, it being understood and agreed that the provisions of
this Agreement shall be solely for the benefit of, and may be enforced solely by, the parties hereto and their respective successors
and assigns.

 

    	 	27	 

     

    

 

4.7           No
Interest; No Return

 

(a)          No
Partner shall be entitled to interest on its Capital Contribution or on such Partner’s Capital Account.

 

(b)          Except
as provided herein or by law, no Partner shall have any right to demand or receive the return of its Capital Contribution from
the Partnership.

 

4.8           No
Preemptive Rights.

 

Subject to any preemptive rights that may be
granted pursuant to Section 4.3 hereof, no Person shall have any preemptive or other similar right with respect to

 

(a)          additional
Capital Contributions or loans to the Partnership; or

 

(b)          issuance
or sale of any Partnership Units or other Partnership Interests.

 

Article
5

DISTRIBUTIONS

 

5.1           Distributions

 

(a)          Cash
Available for Distribution. Subject to the provisions of Sections 5.3, 5.4, 12.2(c) and 13.2, the General Partner shall cause
the Partnership to distribute, at such times as the General Partner shall determine (each a “Distribution Date”),
an amount of Cash Available for Distribution, determined by the General Partner in its sole discretion to the Partners holding
GP Units and/or OP Units who are Partners on the applicable Partnership Record Date, in accordance with each such Partner’s
respective Percentage Interest.

 

(b)          Net
Sales Proceeds. Subject to the provisions of Sections 5.1(g), 5.3, 5.4, 12.2(c) and 13.2, Net Sales Proceeds shall be distributed
as follows:

 

(i)          First,
100% to the Partners holding GP Units and/or OP Units in proportion to each such Partner’s respective Percentage Interest
with respect to such GP Units and/or OP Units until such Partners have received in the aggregate, pursuant to this Section 5.1(b)(i)
and Section 5.1(a), an amount such that the Net Investment Balance is zero;

 

(ii)         Second,
100% to the Partners holding GP Units and/or OP Units in proportion to each such Partner’s respective Percentage Interest
with respect to such GP Units and/or OP Units until such Partners have received in the aggregate, pursuant to this Section 5.1(b)(ii)
and Section 5.1(a), an amount such that the Priority Return Balance is zero; and

 

    	 	28	 

     

    

 

(iii)        Thereafter,
(A) 15% to the Special Limited Partner, and (B) 85% to be distributed to the Partners holding GP Units and/or OP Units in proportion
to their respective Percentage Interests with respect to such GP Units and/or OP Units.

 

(c)          Listing
Amounts. Upon a Listing (other than a Listing as contemplated in Section 5.1(d)(ii)(A)) and following a calculation of the
Market Value of all issued and outstanding shares of Common Stock and subject to Section 5.1(g), the General Partner shall cause
the Partnership to distribute an amount to the Special Limited Partner in complete redemption of the Special Limited Partner Interest
(the “Listing Distribution”) equal to 15% of the amount, if any, by which (i) the sum of (A) the Market Value
of all issued and outstanding shares of Common Stock plus (B) the sum of all Stockholder Distributions paid by the Initial Limited
Partner prior to Listing, exceeds (ii) the sum of (Y) the total Gross Proceeds in all Offerings (less amounts paid on or prior
to the Termination Date to purchase or redeem any shares of Common Stock purchased in an Offering) plus (Z) the total amount of
cash that, if distributed to those Stockholders who purchased shares of Common Stock in an Offering, would have provided such Stockholders
a Priority Return on the Gross Proceeds raised in all such Offerings prior to Listing. The Listing Distribution will only be made
to the Special Limited Partner if the Termination has not occurred prior to the Listing. The Special Limited Partner may elect
to receive the Listing Distribution in cash, OP Units or Common Stock (or any combination thereof) in its sole discretion.

 

(d)          Termination
Amounts.

 

(i)          Upon
a Termination and subject to Sections 5.1(d)(ii) and (g), the General Partner shall cause the Partnership to distribute an amount
to the Special Limited Partner in redemption of the Special Limited Partner Interest in the form of a Note (the “Termination
Note”) equal to 15% of the amount, if any, by which (A) the sum of (1) the fair market value (determined by appraisal
as of the Termination Date) of the Included Investments, plus (2) the Assets as of the Termination Date, minus (3) the Liabilities
as of the Termination Date, plus (4) the sum of all Stockholder Distributions paid by the Initial Limited Partner through the Termination
Date on shares of Common Stock issued in all Offerings through the Termination Date, minus (5) any amounts distributable as of
the Termination Date to the Limited Partners who received Partnership Units in connection with the contribution of any Investments
(including cash used to acquire Investments) to the Partnership, upon the liquidation or sale of such Investments (assuming the
liquidation or sale of such Investments on the Termination Date), exceeds (B) the sum of (1) the Gross Proceeds raised in
all Offerings through the Termination Date (less amounts paid on or prior to the Termination Date to purchase or redeem any shares
of Common Stock purchased in an Offering) plus (2) the total amount of cash that, if distributed to those Stockholders who purchased
shares of Common Stock in an Offering on or prior to the Termination Date, would have provided such Stockholders a Priority Return
on the Gross Proceeds raised in all Offerings through the Termination Date, measured for the period from inception through the
Termination Date. Notwithstanding anything herein to the contrary, in accordance with Section 736 of the Code, the Termination
Note shall be disregarded for applicable income tax purposes and the Special Limited Partner shall continue to be treated as a
partner of the Partnership in respect of its Special Limited Partner Interest for such purposes until the Partnership has satisfied
all of its obligations under the Termination Note. Without limiting the foregoing, the Special Limited Partner shall not be required
to accrue interest on the Termination Note in income and the Partnership shall not deduct such interest for such purposes; provided,
that, any cash or property paid to the Special Limited Partner with respect to such interest shall be reported to the Special Limited
Partner on Internal Revenue Service Schedule K-1 to Form 1065 (or such successor schedule or form).

 

    	 	29	 

     

    

 

(ii)         Upon
a Termination and subject to Section 5.1(g), the Special Limited Partner may elect to receive, in lieu of its right to receive
the Termination Note, either:

 

(A)         If
there is a Listing subsequent to the Termination Date, then the General Partner shall cause the Partnership to distribute an amount
to the Special Limited Partner in redemption of the Special Limited Partner Interest, payable in one or more payments solely out
of Net Sales Proceeds (the “Termination Listing Amount”), equal to 15% of the amount, if any, by which (1) the
sum of (u) the fair market value (determined by appraisal as of the date of Listing) of the Included Investments, plus (w) the
Assets as of the Termination Date, minus (x) the Liabilities as of the Termination Date, plus (y) the sum of all Stockholder
Distributions paid by the Initial Limited Partner through the date of Listing on shares of Common Stock issued in Offerings through
the Termination Date, minus (z) any amounts distributable as of the date of Listing to the Limited Partners who received Partnership
Units in connection with the contribution of any Included Investments (including cash used to acquire Included Investments) to
the Partnership, upon the liquidation or sale of such Included Investments (assuming the liquidation or sale of such Included Investments
on the date of Listing), exceeds (2) the sum of (y) the Gross Proceeds raised in all Offerings through the Termination Date (less
amounts paid on or prior to the date of Listing to purchase or redeem any shares of Common Stock purchased in an Offering on or
prior to the Termination Date), plus (z) the total amount of cash that, if distributed to those Stockholders who purchased shares
of Common Stock in an Offering on or prior to the Termination Date, would have provided such Stockholders a Priority Return on
the Gross Proceeds raised in all Offerings through the Termination Date, measured for the period from inception of the Initial
Limited Partner through the date of Listing. 

 

(B)         If
there is an Investment Liquidity Event subsequent to the Termination Date, then the General Partner shall cause the Partnership
to distribute an amount to the Special Limited Partner in redemption of the Special Limited Partner Interest, payable in one or
more payments solely out of Net Sales Proceeds (the “Termination Liquidity Amount”), equal to 15% of the amount,
if any, by which (1) the sum of (u) the fair market value (determined by appraisal as of the date of the Investment Liquidity Event)
of the Included Investments, plus (w) the Assets as of the Termination Date, minus (x) the Liabilities as of the Termination
Date, plus (y) the sum of all Stockholder Distributions paid by the Initial Limited Partner through the Investment Liquidity Date
on shares of Common Stock issued in Offerings through the Termination Date, minus (z) any amounts distributable as of the Investment
Liquidity Date to the Limited Partners who received Partnership Units in connection with the contribution of any Included Investments
(including cash used to acquire Included Investments) to the Partnership, upon the liquidation or sale of such Included Investments
(assuming the liquidation or sale of such Included Investments on the Investment Liquidity Date), exceeds (2) the sum of (y) the
Gross Proceeds raised in all Offerings through the Termination Date (less amounts paid on or prior to the Investment Liquidity
Date to purchase or redeem any shares of Common Stock purchased in an Offering on or prior to the Termination Date), plus (z) the
total amount of cash that, if distributed to those Stockholders who purchased shares of Common Stock in an Offering on or prior
to the Termination Date, would have provided such Stockholders Priority Return on the Gross Proceeds raised in all Offerings through
the Termination Date, measured for the period from inception of the Initial Limited Partner through the Investment Liquidity Date.

 

    	 	30	 

     

    

 

(e)          Investment
Liquidity Amounts. Upon an Investment Liquidity Event and subject to Section 5.1(g), the General Partner shall cause the Partnership
to distribute an amount to the Special Limited Partner in complete redemption of the Special Limited Partner Interest, payable
on the Investment Liquidity Date (the “Investment Liquidity Amount”), equal to 15% of the amount, if any, by
which (A) the sum of (1) the greater of (a) (i) the fair market value (determined by appraisal as of the date of the Investment
Liquidity Event) of the Included Investments, plus (ii) the Assets as of the Investment Liquidity Event, minus (iii) the Liabilities
as of the Investment Liquidity Event, or (b) the fair market value of the outstanding shares of Common Stock as determined in good
faith by the General Partner as of the Investment Liquidity Date (the “Investment Liquidity Value”), plus (2)
the sum of all Stockholder Distributions paid by the Initial Limited Partner through the Investment Liquidity Date on shares of
Common Stock issued in Offerings, exceeds (B) the sum of (1) the Gross Proceeds raised in all Offerings through the Investment
Liquidity Date (less amounts paid on or prior to the Investment Liquidity Date to purchase or redeem any shares of Common Stock
purchased in an Offering) plus (2) the total amount of cash that, if distributed to those Stockholders who purchased shares of
Common Stock in an Offering on or prior to the Investment Liquidity Date, would have provided such Stockholders a Priority Return
on the Gross Proceeds raised in all Offerings through the Investment Liquidity Date, measured for the period from inception of
the Initial Limited Partner through the Investment Liquidity Date.

 

(f)          
Distributions of Cash to Pay Taxes. Notwithstanding Sections 5.2(c), (d) and (e), in the event that a distribution under
Sections 5.2(c), (d), or (e) is made other than in cash, the Special Limited Partner may elect, by written notice to the General
Partner, to receive in cash a portion of such distribution equal to the amount the Special Limited Partner has determined in good
faith that it or its members will owe in federal or state income taxes on account of such distribution for the year in which the
distribution is received. Furthermore, in the event that the Special Limited Partner has determined in good faith, or a taxing
authority has determined, that the Special Limited Partner or its members are subject to federal or state income tax immediately
on any deferred portion of any distributions under Sections 5.2(c), (d) or (e), the Special Limited Partner shall notify the General
Partner in writing of such determination and the General Partner shall cause the Partnership to distribute, prior to the due date
for payment of any such income tax, cash, in prepayment of such deferred distributions, an amount at least equal to the amount
of federal and state income tax reasonably estimated by the Special Limited Partner to be currently payable.

 

    	 	31	 

     

    

 

(g)          Coordination.

 

(i)          Any
Net Sales Proceeds paid to the Special Limited Partner pursuant to Section 5.1(b)(iii)(A) prior to a Listing shall reduce dollar
for dollar the amount of a Listing Distribution to be made pursuant to Section 5.1(c). If the Special Limited Partner receives
a Listing Distribution pursuant to Section 5.1(c), the Special Limited Partner would no longer be entitled to receive distributions
of Net Sales Proceeds pursuant to Section 5.1(b)(iii)(A), a Termination Amount pursuant to Section 5.1(d) or the Investment Liquidity
Amount pursuant to Section 5.1(e).

 

(ii)         Any
Net Sales Proceeds paid to the Special Limited Partner pursuant to Section 5.1(b)(iii)(A) prior to the Termination Date shall reduce
dollar for dollar the Termination Amount to be distributed pursuant to Section 5.1(d). If the Special Limited Partner receives,
or is entitled to receive, a Termination Amount pursuant to Section 5.1(d), (A) the Special Limited Partner would no longer be
entitled to receive distributions of Net Sales Proceeds pursuant to Section 5.1(b)(iii)(A), a Listing Distribution pursuant to
Section 5.1(c) or the Investment Liquidity Amount pursuant to Section 5.1(e) and (B) any Net Sales Proceeds received by the Partnership
after the Termination Date, in connection with a Termination Note, the date of the subsequent Listing, in connection with the Termination
Listing Amount, and the Investment Liquidity Date, in connection with the Termination Liquidity Amount, shall be applied first
to satisfy the Partnership’s obligation to make distributions pursuant to Section 5.1(d).

 

(iii)        Any
Net Sales Proceeds paid to the Special Limited Partner pursuant to Section 5.1(b)(iii)(A) prior to an Investment Liquidity Date
shall reduce dollar for dollar the Investment Liquidity Amount to be issued and distributed pursuant to Section 5.1(e). If the
Special Limited Partner is entitled to receive an Investment Liquidation Amount pursuant to Section 5.1(e), (A) the Special Limited
Partner would no longer be entitled to receive distributions of Net Sales Proceeds pursuant to Section 5.1(b)(iii)(A), a Listing
Distribution pursuant to Section 5.1(c) or a Termination Amount pursuant to Section 5.1(d) and (B) any Net Sales Proceeds received
by the Partnership as a result of or after the Investment Liquidity Event shall be applied first to satisfy the Partnership’s
obligation to make distributions pursuant to Section 5.1(e).

 

(iv)        If
the General Partner chooses in its discretion to satisfy all or a portion of the distributions required to be made to the Special
Limited Partner pursuant to a Termination Note with shares of Common Stock, the amount of the Termination Note due to the Special
Limited Partner shall be reduced by the fair market value of the Common Stock on the date such Common Stock is issued to the Special
Limited Partner.

 

    	 	32	 

     

    

 

(v)         If
the Special Limited Partner converts all or a portion of its Special Limited Partner Interest into OP Units pursuant to Section
8.7(a), the amount of the Termination Note due to the Special Limited Partner shall be reduced by an amount equal to the product
of (i) the number of OP Units issued in the conversion multiplied by (ii) the product of (A) the Value of one share of Common
Stock on the date of conversion multiplied by (B) the Exchange Factor. If the Special Limited Partner contributes its Special
Limited Partner Interest to the Partnership in exchange for OP Units pursuant to Section 8.7(b), the Special Limited Partner shall
no longer be entitled to the Listing Distribution, the Termination Note, the Termination Listing Amount, the Termination Liquidity
Amount or the Investment Liquidity Amount or distributions of Net Sales Proceeds in respect of the Listing Distribution, the Termination
Note, the Termination Listing Amount, the Termination Liquidity Amount or the Investment Liquidity Amount pursuant to Sections
5.1(g)(ii) or (iii), as the case may be.

 

(vi)        If
the priority distribution of Net Sales Proceeds to the Special Limited Partner pursuant to this Section 5.1(g) prevents the Partnership
from being able to distribute sufficient amounts to the Initial Limited Partner pursuant to Section 5.1(b) to enable the Initial
Limited Partner to satisfy the REIT Requirement, the General Partner may in its sole discretion cause the Partnership to distribute
some or all of the Net Sales Proceeds subject to a priority distribution pursuant to this Section 5.1(g) to the Initial Limited
Partner in an amount sufficient to enable the Initial Limited Partner to pay dividends to the Stockholders in order to satisfy
the REIT Requirements.

 

(h)          In
no event may any Partner receive a distribution pursuant to Sections 5.1(a) or (b) with respect to a Partnership Unit if such Partner
is entitled to receive a distribution with respect to Common Stock for which such a Partnership Unit has been exchanged.

 

5.2           Qualification
as a REIT

 

The General Partner shall use its best efforts
to cause the Partnership to distribute sufficient amounts under this Article 5 to enable the Initial Limited Partner to pay dividends
to the Stockholders that will enable the Initial Limited Partner to

 

(a)          satisfy
the requirements for qualification as a REIT under the Code and Regulations (“REIT Requirements”), and

 

(b)          avoid
any federal income or excise tax liability;

 

provided, however, that the General Partner shall
not be bound to comply with this covenant to the extent such distributions would

 

(i)          violate
applicable Delaware law, or

 

(ii)         contravene
the terms of any notes, mortgages or other types of debt obligations to which the Partnership may be subject in conjunction with
borrowed funds.

 

5.3           Withholding

 

With respect to any withholding tax or other
similar tax liability or obligation to which the Partnership may be subject as a result of any act or status of any Partner or
the Special Limited Partner or to which the Partnership becomes subject with respect to any Partnership Unit or the Special Limited
Partner Interest, the Partnership shall have the right to withhold amounts distributable pursuant to this Article V to such Partner
or the Special Limited Partner or with respect to such Partnership Units or the Special Limited Partner Interest, to the extent
of the amount of such withholding tax or other similar tax liability or obligation pursuant to the provisions contained in Section
10.5, and the amount of any withholding shall reduce the right of such Partner or the Special Limited Partner to future distribution
to the extent provided in Section 10.5.

 

    	 	33	 

     

    

 

5.4           Additional
Partnership Interests

 

If the Partnership issues Partnership Interests
in accordance with Section 4.2 or 4.3, the distribution priorities set forth in Section 5.1 shall be amended, as necessary, to
reflect the distribution priority of such Partnership Interests and corresponding amendments shall be made to the provisions of
Exhibit B.

 

Article
6

ALLOCATIONS

 

6.1           Allocations

 

The Net Income, Net Loss, Net Property Gain,
Net Property Loss and other Partnership items shall be allocated pursuant to the provisions of Exhibit B.

 

6.2           Revisions
to Allocations to Reflect Issuance of Partnership Interests

 

If the Partnership issues Partnership Interests
to the General Partner, the Initial Limited Partner or any additional Limited Partner pursuant to Article IV, the General Partner
shall make such revisions to this Article 6 and Exhibit B as it deems necessary to reflect the terms of the issuance of
such Partnership Interests, including making preferential allocations to classes of Partnership Interests that are entitled thereto.
Such revisions shall not require the consent or approval of any other Partner.

 

Article
7

MANAGEMENT AND OPERATIONS OF BUSINESS

 

7.1           Management

 

(a)          (i)          Except
as otherwise expressly provided in this Agreement, full, complete and exclusive discretion to manage and control the business and
affairs of the Partnership are and shall be vested in the General Partner, and no Limited Partner shall have any right to participate
in or exercise control or management power over the business and affairs of the Partnership.

 

(ii)         The
General Partner may not be removed by the Limited Partners with or without cause.

 

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(iii)        In
addition to the powers now or hereafter granted a general partner of a limited partnership under applicable law or which are granted
to the General Partner under any other provision of this Agreement, the General Partner, subject to Section 7.11, shall have full
power and authority to do all things deemed necessary or desirable by it to conduct the business of the Partnership, to exercise
all powers set forth in Section 3.2 hereof and to effectuate the purposes set forth in Section 3.1 hereof, including:

 

(A)         (1)         the
making of any expenditures, the lending or borrowing of money, including making prepayments on loans and borrowing money to permit
the Partnership to make distributions to its Partners in such amounts as will permit the Initial Limited Partner (so long as the
Initial Limited Partner qualifies as a REIT) to avoid the payment of any federal income tax (including, for this purpose, any excise
tax pursuant to Section 4981 of the Code) and to make distributions to its Stockholders in amounts sufficient to permit the Initial
Limited Partner to maintain REIT status,

 

(2)         the
assumption or guarantee of, or other contracting for, indebtedness and other liabilities,

 

(3)         the
issuance of evidence of indebtedness (including the securing of the same by deed, mortgage, deed of trust or other lien or encumbrance
on the Partnership’s assets) and

 

(4)         the
incurring of any obligations it deems necessary for the conduct of the activities of the Partnership, including the payment of
all expenses associated with the General Partner;

 

(B)         the
acquisition, purchase, ownership, operating, leasing and disposition of any real property and any other property or assets, including
mortgages and real estate-related notes, whether directly or indirectly;

 

(C)         the
making of tax, regulatory and other filings, or rendering of periodic or other reports to governmental or other agencies having
jurisdiction over the business or assets of the Partnership or the Initial Limited Partner;

 

(D)         the
acquisition, disposition, mortgage, pledge, encumbrance, hypothecation or exchange of all or substantially all of the assets of
the Partnership (including the exercise or grant of any conversion, option, privilege, or subscription right or other right available
in connection with any assets at any time held by the Partnership) or the merger, consolidation or other combination (each a “Business
Combination”) of the Partnership with or into another Entity on such terms as the General Partner deems proper, provided,
however, that the General Partner shall be required to send to each Limited Partner a notice of such proposed Business Combination
no less than 15 days prior to the record date for the vote of the Initial Limited Partner’s Stockholders on such Business
Combination, if any;

 

    	 	35	 

     

    

 

(E)         the
use of the assets of the Partnership (including cash on hand) for any purpose consistent with the terms of this Agreement and on
any terms it sees fit, including,

 

(1)         the
financing of the conduct of the operations of the Initial Limited Partner, the Partnership or any of the Partnership’s Subsidiaries,

 

(2)         the
lending of funds to other Persons (including the Subsidiaries of the Partnership and/or the Initial Limited Partner) and the repayment
of obligations of the Partnership and its Subsidiaries and any other Person in which it has an equity investment, and

 

(3)         the
making of capital contributions to its Subsidiaries;

 

(F)         the
expansion, development, redevelopment, construction, leasing, repair, rehabilitation, repositioning, alteration, demolition or
improvement of any property in which the Partnership or any Subsidiary of the Partnership owns an interest;

 

(G)         the
negotiation, execution, and performance of any contracts, conveyances or other instruments that the General Partner considers useful
or necessary to the conduct of the Partnership’s operations or the implementation of the General Partner’s powers under
this Agreement, including contracting with contractors, developers, consultants, accountants, legal counsel, other professional
advisors and other agents and the payment of their expenses and compensation out of the Partnership’s assets;

 

(H)         the
distribution of Partnership cash or other Partnership assets in accordance with this Agreement;

 

(I)         holding,
managing, investing and reinvesting cash and other assets of the Partnership;

 

(J)         the
collection and receipt of revenues and income of the Partnership;

 

(K)         the
establishment of one or more divisions of the Partnership, the selection and dismissal of employees of the Partnership (including
employees having titles such as “president”, “vice president”, “secretary” and “treasurer”
of the Partnership), and agents, outside attorneys, accountants, consultants and contractors of the Partnership, and the determination
of their compensation and other terms of employment or engagement;

 

(L)         the
maintenance of such insurance for the benefit of the Partnership and the Partners and directors and officers thereof as it deems
necessary or appropriate;

 

    	 	36	 

     

    

 

(M)         the
formation of, or acquisition of an interest (including non-voting interests in entities controlled by Affiliates of the Partnership
or third parties) in, and the contribution of property to, any further Entities or other relationships that it deems desirable,
including the acquisition of interests in, and the contributions of funds or property to, or making of loans to, its Subsidiaries
and any other Person from time to time, or the incurrence of indebtedness on behalf of such Persons or the guarantee of the obligations
of such Persons; provided, however, that as long as the Initial Limited Partner has determined to elect to qualify
as a REIT or to continue to qualify as a REIT, the Partnership may not engage in any such formation, acquisition or contribution
that would cause the Initial Limited Partner to fail to qualify as a REIT;

 

(N)         the
control of any matters affecting the rights and obligations of the Partnership, including

 

(1)         the
settlement, compromise, submission to arbitration or any other form of dispute resolution, or abandonment of, any claim, cause
of action, liability, debt or damages, due or owing to or from the Partnership,

 

(2)         the
commencement or defense of suits, legal proceedings, administrative proceedings, arbitration or other forms of dispute resolution,
and

 

(3)         the
representation of the Partnership in all suits or legal proceedings, administrative proceedings, arbitrations or other forms of
dispute resolution, the incurring of legal expenses, and the indemnification of any Person against liabilities and contingencies
to the extent permitted by law;

 

(O)         the
undertaking of any action in connection with the Partnership’s direct or indirect investment in its Subsidiaries or any other
Person (including the contribution or loan of funds by the Partnership to such Persons);

 

(P)         the
determination of the fair market value of any Partnership property distributed in kind using such reasonable method of valuation
as the General Partner, in its sole discretion, may adopt;

 

(Q)         the
exercise, directly or indirectly, through any attorney-in-fact acting under a general or limited power of attorney, of any right,
including the right to vote, appurtenant to any asset or investment held by the Partnership;

 

(R)         the
exercise of any of the powers of the General Partner enumerated in this Agreement on behalf of or in connection with any Subsidiary
of the Partnership or any other Person in which the Partnership has a direct or indirect interest, or jointly with any such Subsidiary
or other Person;

 

    	 	37	 

     

    

 

(S)         the
exercise of any of the powers of the General Partner enumerated in this Agreement on behalf of any Person in which the Partnership
does not have an interest pursuant to contractual or other arrangements with such Person;

 

(T)         the
making, execution and delivery of any and all deeds, leases, notes, mortgages, deeds of trust, security agreements, conveyances,
contracts, guarantees, warranties, indemnities, waivers, releases or legal instruments or agreements in writing necessary or appropriate,
in the judgment of the General Partner, for the accomplishment of any of the foregoing;

 

(U)         the
issuance of additional Partnership Units in connection with Capital Contributions by Additional Limited Partners and additional
Capital Contributions by Partners pursuant to Article 4 hereof;

 

(V)         the
authorization, issuance, sale, redemption or purchase of any Partnership Units or any securities of the Partnership;

 

(W)         the
opening of bank accounts on behalf of, and in the name of, the Partnership and its Subsidiaries; and

 

(X)         the
amendment and restatement of Exhibit A to reflect accurately at all times the Capital Contributions and Percentage Interests
of the Partners as the same are adjusted from time to time to the extent necessary to reflect redemptions, Capital Contributions,
the issuance of Partnership Units, the admission of any Additional Limited Partner or any Substituted Limited Partner or otherwise,
which amendment and restatement, notwithstanding anything in this Agreement to the contrary, shall not be deemed an amendment of
this Agreement, as long as the matter or event being reflected in Exhibit A otherwise is authorized by this Agreement.

 

(b)          (i)          Each
of the Limited Partners agree that the General Partner is authorized to execute, deliver and perform the above-mentioned agreements
and transactions on behalf of the Partnership without any further act, approval or vote of the Partners, notwithstanding any other
provision of this Agreement to the fullest extent permitted under the Act or other applicable law, rule or regulation.

 

(ii)         The
execution, delivery or performance by the General Partner or the Partnership of any agreement authorized or permitted under this
Agreement shall not constitute a breach by the General Partner of any duty that the General Partner may owe the Partnership or
the Limited Partners or any other Persons under this Agreement or of any duty stated or implied by law or equity.

 

(c)          At
all times from and after the date hereof, the General Partner at the expense of the Partnership, may or may not, cause the Partnership
to obtain and maintain

 

(i)          casualty,
liability and other insurance on the properties of the Partnership;

 

    	 	38	 

     

    

 

(ii)         liability
insurance for the Indemnitees hereunder; and

 

(iii)        such
other insurance as the General Partner, in its sole and absolute discretion, determines to be appropriate and reasonable.

 

(d)          At
all times from and after the date hereof, the General Partner may cause the Partnership to establish and maintain at any and all
times working capital accounts and other cash or similar balances in such amount as the General Partner, in its sole and absolute
discretion, deems appropriate and reasonable from time to time.

 

(e)          (i)          In
exercising its authority under this Agreement, the General Partner may, but shall be under no obligation to, take into account
the tax consequences to any Partner (including the General Partner) of any action taken (or not taken) by it. The General Partner
and the Partnership shall not have liability to any Limited Partner for monetary damages or otherwise for losses sustained, liabilities
incurred or benefits not derived by such Limited Partner in connection with such decisions; provided, that the General Partner
has acted in good faith pursuant to its authority under this Agreement. The Limited Partners expressly acknowledge that the General
Partner is acting on behalf of the Partnership, the General Partner, the Initial Limited Partner and the Initial Limited Partner’s
Stockholders, collectively.

 

(ii)         The
General Partner and the Partnership shall not have liability to any Limited Partner or the Special Limited Partner under any circumstances
as a result of an income tax liability incurred by such Limited Partner or the Special Limited Partner as a result of an action
(or inaction) by the General Partner taken pursuant to its authority under and in accordance with this Agreement.

 

7.2           Certificate
of Limited Partnership

 

(a)          The
General Partner and the Initial Limited Partner have previously filed the Certificate with the Secretary of State of Delaware as
required by the Act.

 

(b)          (i)          The
General Partner shall use all reasonable efforts to cause to be filed such other certificates or documents as may be reasonable
and necessary or appropriate for the formation, continuation, qualification and operation of a limited partnership (or a partnership
in which the limited partners have limited liability) in the State of Delaware and any other state, or the District of Columbia,
in which the Partnership may elect to do business or own property.

 

(ii)         To
the extent that such action is determined by the General Partner to be reasonable and necessary or appropriate, the General Partner
shall file amendments to and restatements of the Certificate and do all of the things to maintain the Partnership as a limited
partnership (or a partnership in which the limited partners have limited liability) under the laws of the State of Delaware and
each other state, or the District of Columbia, in which the Partnership may elect to do business or own property.

 

(iii)        The
General Partner shall not be required, before or after filing, to deliver or mail a copy of the Certificate or any amendment thereto
to any Limited Partner.

 

    	 	39	 

     

    

 

7.3           Reimbursement
of the General Partner

 

(a)          Except
as provided in this Section 7.3 and elsewhere in this Agreement (including the provisions of Articles 5 and 6 regarding distributions,
payments, and allocations to which it may be entitled), the General Partner shall not be compensated for its services as general
partner of the Partnership.

 

(b)          (i)          The
Partnership shall be responsible for and shall pay all expenses relating to the Partnership’s organization, the ownership
of its assets and its operations. The General Partner shall be reimbursed on a monthly basis, or such other basis as it may determine
in its sole and absolute discretion, for all expenses that it incurs on behalf of the Partnership relating to the ownership and
operation of the Partnership’s assets, or for the benefit of the Partnership, including all expenses associated with compliance
by the General Partner and the Initial Limited with laws, rules and regulations promulgated by any regulatory body, expenses related
to the operations of the General Partner and the Initial Limited Partner and to the management and administration of any Subsidiaries
of the General Partner, the Initial Limited Partner or the Partnership or Affiliates of the Partnership, such as auditing expenses
and filing fees and any and all salaries, compensation and expenses of officers and employees of the General Partner and the Initial
Limited Partner, but excluding any portion of expenses reasonably attributable to assets not owned by or for the benefit of, or
to operations not for the benefit of, the Partnership or Affiliates of the Partnership; provided, however, that the
amount of any such reimbursement shall be reduced by any interest earned by the General Partner with respect to bank accounts or
other instruments or accounts held by it in its name.

 

(ii)         Such
reimbursement shall be in addition to any reimbursement made as a result of indemnification pursuant to Section 7.6 hereof.

 

(iii)        The
General Partner shall determine in good faith the amount of expenses incurred by it and the Initial Limited Partner related to
the ownership and operation of, or for the benefit of, the Partnership. If certain expenses are incurred for the benefit of the
Partnership and other entities (including the General Partner and/or the Initial Limited Partner), such expenses will be allocated
to the Partnership and such other entities in such a manner as the General Partner in its reasonable discretion deems fair and
reasonable. All payments and reimbursements hereunder shall be characterized for federal income tax purposes as expenses of the
Partnership incurred on its behalf, and not as expenses of the General Partner or the Initial Limited Partner.

 

(c)          (i)          Expenses
incurred by the General Partner relating to the organization or reorganization of the Partnership, the General Partner and the
Initial Limited Partner, the issuance of Common Stock in connection with an Offering and any issuance of additional Partnership
Interests, Common Stock or rights, options, warrants, or convertible or exchangeable securities pursuant to Section 4.2 hereof
and all costs and expenses associated with the preparation and filing of any periodic reports by the General Partner or the Initial
Limited Partner under federal, state or local laws or regulations (including all costs, expenses, damages, and other payments resulting
from or arising in connection with litigation related to any of the foregoing) are primarily obligations of the Partnership.

 

    	 	40	 

     

    

 

(ii)         To
the extent the General Partner pays or incurs such expenses, the General Partner shall be reimbursed for such expenses.

 

7.4           Outside
Activities of the General Partner

 

(a)          Without
the Consent of the Limited Partners, the General Partner shall not directly or indirectly enter into or conduct any business other
than in connection with the ownership, acquisition, and disposition of Partnership Interests and the management of its business
and the business of the Partnership, and such activities as are incidental thereto.

 

(b)          The
General Partner and any Affiliates of the General Partner may acquire Limited Partner Interests and shall be entitled to exercise
all rights of a Limited Partner relating to such Limited Partner Interests.

 

7.5           Contracts
with Affiliates

 

(a)          (i)          The
Partnership may lend or contribute funds or other assets to its Subsidiaries or other Persons in which it has an equity investment
and such Subsidiaries and Persons may borrow funds from the Partnership, on terms and conditions established in the sole and absolute
discretion of the General Partner.

 

(ii)         The
foregoing authority shall not create any right or benefit in favor of any Subsidiary or any other Person.

 

(b)          Except
as provided in Section 7.4, the Partnership may Transfer assets to Entities in which it is or thereby becomes a participant upon
such terms and subject to such conditions consistent with this Agreement and applicable law as the General Partner, in its sole
and absolute discretion, may determine.

 

(c)          Except
as expressly permitted by this Agreement, neither the Initial Limited Partner nor any of its Affiliates shall sell, Transfer or
convey any property to, or purchase any property from, the Partnership, directly or indirectly, except pursuant to transactions
that are determined by the General Partner in good faith to be fair and reasonable.

 

(d)          The
General Partner, in its sole and absolute discretion and without the approval of the Limited Partners, may propose and adopt, on
behalf of the Partnership, employee benefit plans, stock option plans, and similar plans funded by the Partnership for the benefit
of employees of the Partnership, the Initial Limited Partner, any Subsidiaries of the Partnership or any Affiliate of any of them
in respect of services performed, directly or indirectly, for the benefit of the Partnership, the Initial Limited Partner, any
Subsidiaries of the Partnership or any Affiliate of any of them.

 

(e)          The
General Partner is expressly authorized to enter into, in the name and on behalf of the Partnership, a “right of first opportunity”
or “right of first offer” arrangement, non-competition agreements and other conflict avoidance agreements with various
Affiliates of the Partnership and the General Partner, on such terms as the General Partner, in its sole and absolute discretion,
believes are advisable.

 

    	 	41	 

     

    

 

7.6           Indemnification

 

(a)          (i)          To
the fullest extent permitted by Delaware law or as provided herein, the Partnership shall indemnify each Indemnitee from and against
any and all losses, claims, damages, liabilities, joint or several, expenses (including reasonable attorneys’ fees and other
legal fees and expenses), judgments, fines, settlements, and other amounts arising from any and all claims, demands, actions, suits
or proceedings, civil, criminal, administrative or investigative (collectively, “Claims”), that relate to the
operations of the Partnership or the Initial Limited Partner as set forth in this Agreement, in which such Indemnitee may be involved,
or is threatened to be involved, as a party or otherwise, so long as (A) the course of conduct which gave rise to the Claim was
taken, in the reasonable determination of the Indemnitee made in good faith, in the best interests of the Partnership or the Initial
Limited Partner, (B) such Claim was not the result of negligence or misconduct by the Indemnitee, (C) the Indemnitee (if other
than the General Partner) was acting on behalf of or performing services for the Partnership and (D) such indemnification is not
satisfied or recoverable from the assets of the Stockholders of the Initial Limited Partner. Notwithstanding the foregoing, no
Indemnitee (other than the General Partner) shall be indemnified for any Claim arising from or out of an alleged violation of federal
or state securities laws unless (1) there has been a successful adjudication on the merits of each count involving alleged securities
law violations as to such Indemnitee, (2) such allegations have been dismissed with prejudice on the merits by a court of competent
jurisdiction as to such Indemnitee, or (3) a court of competent jurisdiction approves a settlement of such allegations against
such Indemnitee and finds that indemnification of the settlement and the related costs should be made, and the court considering
the request for indemnification has been advised of the position of the Securities and Exchange Commission and of the published
position of any state securities regulatory authority in which the Common Stock was offered or sold as to indemnification for violations
of securities law.

 

(ii)         Without
limitation, the foregoing indemnity shall extend to any liability of any Indemnitee, pursuant to a loan guaranty (except a guaranty
by a limited partner of nonrecourse indebtedness of the Partnership or as otherwise provided in any such loan guaranty), contractual
obligation for any indebtedness or other obligation or otherwise for any indebtedness of the Partnership or any Subsidiary of the
Partnership (including any indebtedness which the Partnership or any Subsidiary of the Partnership has assumed or taken subject
to), and the General Partner is hereby authorized and empowered, on behalf of the Partnership, to enter into one or more indemnity
agreements consistent with the provisions of this Section 7.6 in favor of any Indemnitee having or potentially having liability
for any such indebtedness.

 

(iii)        Any
indemnification pursuant to this Section 7.6 shall be made only out of the assets of the Partnership, and neither the General Partner
nor any Limited Partner shall have any obligation to contribute to the capital of the Partnership, or otherwise provide funds,
to enable the Partnership to fund its obligations under this Section 7.6.

 

(b)          Reasonable
expenses incurred by an Indemnitee who is a party to a proceeding shall be paid or reimbursed by the Partnership in advance of
the final disposition of any and all claims, demands, actions, suits or proceedings, civil, criminal, administrative or investigative
made or threatened against an Indemnitee upon receipt by the Partnership of (i) a written affirmation by the Indemnitee of the
Indemnitee’s good faith belief that the standard of conduct necessary for indemnification by the Partnership as authorized
in this Section 7.6 has been met; and (ii) a written undertaking by or on behalf of the Indemnitee to repay the amount if it shall
ultimately be determined that the standard of conduct has not been met.

 

    	 	42	 

     

    

 

(c)          The
indemnification provided by this Section 7.6 shall be in addition to any other rights to which an Indemnitee or any other Person
may be entitled under any agreement, pursuant to any vote of the Partners, as a matter of law or otherwise, and shall continue
as to an Indemnitee who has ceased to serve in such capacity unless otherwise provided in a written agreement pursuant to which
such Indemnities are indemnified.

 

(d)          The
Partnership may, but shall not be obligated to, purchase and maintain insurance, on behalf of the Indemnities and such other Persons
as the General Partner shall determine, against any liability that may be asserted against or expenses that may be incurred by
such Person in connection with the Partnership’s activities, regardless of whether the Partnership would have the power to
indemnify such Person against such liability under the provisions of this Agreement.

 

(e)          For
purposes of this Section 7.6, the Partnership shall be deemed to have requested an Indemnitee to serve as fiduciary of an employee
benefit plan whenever the performance by such Indemnitee of its duties to the Partnership also imposes duties on, or otherwise
involves services by, such Indemnitee to the plan or participants or beneficiaries of the plan; excise taxes assessed on an Indemnitee
with respect to an employee benefit plan pursuant to applicable law shall constitute fines within the meaning of this Section 7.6.
Actions taken or omitted by the Indemnitee with respect to an employee benefit plan in the performance of its duties for a purpose
reasonably believed by it to be in the interest of the participants and beneficiaries of the plan shall be deemed to be for a purpose
which is not opposed to the best interests of the Partnership.

 

(f)          In
no event may an Indemnitee subject any of the Partners (other than the General Partner) to personal liability by reason of the
indemnification provisions set forth in this Agreement.

 

(g)          An
Indemnitee shall not be denied indemnification in whole or in part under this Section 7.6 because the Indemnitee had an interest
in the transaction with respect to which the indemnification applies if the transaction was otherwise permitted by the terms of
this Agreement.

 

(h)          (i)          The
provisions of this Section 7.6 are for the benefit of the Indemnitees, their heirs, successors, assigns and administrators and
shall not be deemed to create any rights for the benefit of any other Persons.

 

(ii)         Any
amendment, modification or repeal of this Section 7.6 or any provision hereof shall be prospective only and shall not in any way
affect the Partnership’s liability to any Indemnitee under this Section 7.6, as in effect immediately prior to such amendment,
modification, or repeal with respect to claims arising from or relating to matters occurring, in whole or in part, prior to such
amendment, modification or repeal, regardless of when such claims may arise or be asserted.

 

    	 	43	 

     

    

 

(i)          If
and to the extent any payments to the Initial Limited Partner pursuant to this Section 7.6 constitute gross income to the Initial
Limited Partner (as opposed to the repayment of advances made on behalf of the Partnership), such amounts shall constitute guaranteed
payments within the meaning of Section 707(c) of the Code, shall be treated consistently therewith by the Partnership and all Partners,
and shall not be treated as distributions for purposes of computing the Partners’ Capital Accounts.

 

(j)          Notwithstanding
anything to the contrary in this Agreement, the General Partner shall not be entitled to indemnification hereunder for any loss,
claim, damage, liability or expense for which the General Partner is obligated to indemnify the Partnership under any other agreement
between the General Partner and the Partnership.

 

7.7           Liability
of the General Partner and the Initial Limited Partner

 

(a)          Notwithstanding
anything to the contrary set forth in this Agreement, neither the General Partner, the Initial Limited Partner nor the investment
advisors of the General Partner and the Initial Limited Partner nor any of their respective officers and directors, shall be liable
for monetary damages to the Partnership, any Partners or any Assignees for losses sustained or liabilities incurred as a result
of errors in judgment or mistakes of fact or law or of any act or omission unless the General Partner, Initial Limited Partner
or their investment advisors, as the case may be, acted in bad faith and the act or omission was material to the matter giving
rise to the loss, liability or benefit not derived.

 

(b)          (i)          The
Limited Partners (other than the Initial Limited Partner) and the Special Limited Partner expressly acknowledge that the General
Partner is acting on behalf of the Partnership and the Stockholders of the Initial Limited Partner collectively, that the General
Partner, subject to the provisions of Section 7.1(e) hereof, is under no obligation to consider the separate interest of the Limited
Partners (with the exception of the Initial Limited Partner) or the Special Limited Partner (including the tax consequences to
any Limited Partner, the Special Limited Partner or any Assignees) in deciding whether to cause the Partnership to take (or decline
to take) any actions, and that the General Partner shall not be liable for monetary damages for losses sustained, liabilities incurred,
or benefits not derived by Limited Partners (with the exception of the Initial Limited Partner) or the Special Limited Partner
in connection with such decisions; provided that the General Partner has acted in good faith.

 

(ii)         With
respect to any indebtedness of the Partnership which any Limited Partner or the Special Limited Partner may have guaranteed, the
General Partner shall have no duty to keep such indebtedness outstanding.

 

(c)          (i)          Subject
to its obligations and duties as General Partner set forth in Section 7.1(a) hereof, the General Partner may exercise any of the
powers granted to it by this Agreement and perform any of the duties imposed upon it hereunder either directly or by or through
its agent, including its investment advisor.

 

    	 	44	 

     

    

 

(ii)         The
General Partner shall not be responsible for any misconduct or negligence on the part of any such agent appointed by the General
Partner in good faith.

 

(d)          The
Limited Partners expressly acknowledge that if any conflict in the fiduciary duties owed by the Initial Limited Partner (as the
sole member of the General Partner) to its Stockholders and by the General Partner, in its capacity as a general partner of the
Partnership, to the Limited Partners or the Special Limited Partner, the General Partner may act in the best interests of the Initial
Limited Partner’s Stockholders without violating its fiduciary duties to the Limited Partners or the Special Limited Partner,
and that the General Partner shall not be liable for monetary damages for losses sustained, liabilities incurred, or benefits not
derived by the Limited Partners or the Special Limited Partner in connection with any such violation.

 

(e)          Any
amendment, modification or repeal of this Section 7.7 or any provision hereof shall be prospective only and shall not in any way
affect the limitations on the General Partner’s, Initial Limited Partner’s or their respective officers’ and
directors’ liability to the Partnership, the Special Limited Partner and the Limited Partners under this Section 7.7 as in
effect immediately prior to such amendment, modification or repeal with respect to claims arising from or relating to matters occurring,
in whole or in part, prior to such amendment, modification or repeal, regardless of when such claims may arise or be asserted.

 

7.8           Other
Matters Concerning the General Partner

 

(a)          The
General Partner may rely and shall be protected in acting, or refraining from acting, upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, consent, order, bond, debenture, or other paper or document believed by it in good
faith to be genuine and to have been signed or presented by the proper party or parties.

 

(b)          The
General Partner may consult with legal counsel, accountants, appraisers, management consultants, investment bankers, architects,
engineers, environmental consultants and other consultants and advisers selected by it, and any act taken or omitted to be taken
in reliance upon the opinion of such Persons as to matters which such General Partner reasonably believes to be within such Person’s
professional or expert competence shall be conclusively presumed to have been done or omitted in good faith and in accordance with
such opinion.

 

(c)          (i)          The
General Partner shall have the right, in respect of any of its powers or obligations hereunder, to act through any of its duly
authorized officers and duly appointed attorneys-in-fact.

 

(ii)         Each
such attorney shall, to the extent provided by the General Partner in the power of attorney, have full power and authority to do
and perform each and every act and duty which is permitted or required to be done by the General Partner hereunder.

 

(d)          Notwithstanding
any other provisions of this Agreement or the Act, any action of the General Partner on behalf of the Partnership or any decision
of the General Partner to refrain from acting on behalf of the Partnership, undertaken in the good faith belief that such action
or omission is necessary or advisable in order

 

    	 	45	 

     

    

 

(i)          to
protect the ability of the General Partner to continue to qualify as a REIT; or

 

(ii)         to
avoid the General Partner incurring any taxes under Section 857 or Section 4981 of the Code,

 

is expressly authorized under this Agreement and is deemed approved
by all of the Limited Partners and the Special Limited Partner.

 

7.9           Title
to Partnership Assets

 

(a)          Title
to Partnership assets, whether real, personal or mixed and whether tangible or intangible, shall be deemed to be owned by the Partnership
as an entity, and no Partner, individually or collectively, shall have any ownership interest in such Partnership assets or any
portion thereof.

 

(b)          (i)          Title
to any or all of the Partnership assets may be held in the name of the Partnership, the General Partner or one or more nominees,
as the General Partner may determine, including Affiliates of the General Partner.

 

(ii)         The
General Partner hereby declares and warrants that any Partnership asset for which legal title is held in the name of the General
Partner or any nominee or Affiliate of the General Partner shall be held by the General Partner for the use and benefit of the
Partnership in accordance with the provisions of this Agreement; provided, however, that the General Partner shall
use its best efforts to cause beneficial and record title to such assets to be vested in the Partnership as soon as reasonably
practicable.

 

(iii)        All
Partnership assets shall be recorded as the property of the Partnership in its books and records, irrespective of the name in which
legal title to such Partnership assets is held.

 

7.10         Reliance
by Third Parties

 

(a)          Notwithstanding
anything to the contrary in this Agreement, any Person dealing with the Partnership shall be entitled to assume that the General
Partner has full power and authority, without consent or approval of any other Partner or Person, to encumber, sell or otherwise
use in any manner any and all assets of the Partnership and to enter into any contracts on behalf of the Partnership, and take
any and all actions on behalf of the Partnership, and such Person shall be entitled to deal with the General Partner as if the
General Partner were the Partnership’s sole party in interest, both legally and beneficially.

 

(b)          Each
Limited Partner and the Special Limited Partner hereby waive any and all defenses or other remedies which may be available against
such Person to contest, negate or disaffirm any action of the General Partner in connection with any such dealing.

 

(c)          In
no event shall any Person dealing with the General Partner or its representatives be obligated to ascertain that the terms of this
Agreement have been complied with or to inquire into the necessity or expediency of any act or action of the General Partner or
its representatives.

 

    	 	46	 

     

    

 

(d)          Each
and every certificate, document or other instrument executed on behalf of the Partnership by the General Partner or its representatives
shall be conclusive evidence in favor of any and every Person relying thereon or claiming thereunder that

 

(i)          at
the time of the execution and delivery of such certificate, document or instrument, this Agreement was in full force and effect;

 

(ii)         the
Person executing and delivering such certificate, document or instrument was duly authorized and empowered to do so for and on
behalf of the Partnership; and

 

(iii)        such
certificate, document or instrument was duly executed and delivered in accordance with the terms and provisions of this Agreement
and is binding upon the Partnership.

 

7.11         Loans
By Third Parties

 

The Partnership may incur Debt, or enter into
similar credit, guarantee, financing or refinancing arrangements for any purpose (including in connection with any acquisition
of property) with any Person upon such terms as the General Partner determines appropriate.

 

Article
8

RIGHTS AND OBLIGATIONS OF LIMITED PARTNERS

 

8.1           Limitation
of Liability

 

No Limited Partner shall have any liability
under this Agreement except as expressly provided in this Agreement, including Section 10.5 hereof, or under the Act.

 

8.2           Management
of Business

 

(a)          No
Limited Partner or Assignee (other than the General Partner, any of its Affiliates or any officer, director, employee, agent or
trustee of the General Partner, the Partnership or any of their Affiliates, in their capacity as such) shall take part in the operation,
management or control (within the meaning of the Act) of the Partnership’s business, transact any business in the Partnership’s
name or have the power to sign documents for or otherwise bind the Partnership.

 

(b)          The
transaction of any such business by the General Partner, any of its Affiliates or any officer, director, employee, partner, agent
or trustee of the General Partner, the Partnership or any of their Affiliates, in their capacity as such, shall not affect, impair
or eliminate the limitations on the liability of the Limited Partners or Assignees under this Agreement.

 

    	 	47	 

     

    

 

8.3           Outside
Activities of Limited Partners

 

(a)          Subject
to any agreements entered into pursuant to Section 7.5 hereof and any other agreements entered into by a Limited Partner, the Special
Limited Partner, or any of their Affiliates with the Partnership or any of its Subsidiaries, any Limited Partner, the Special Limited
Partner and any officer, director, employee, agent, trustee, Affiliate or shareholder of any Limited Partner or the Special Limited
Partner shall be entitled to and may have business interests and engage in business activities in addition to those relating to
the Partnership, including business interests and activities that are in direct competition with the Partnership or that are enhanced
by the activities of the Partnership.

 

(b)          Neither
the Partnership nor any Partners shall have any rights by virtue of this Agreement in any business ventures of any Limited Partner,
the Special Limited Partner, any Assignee or any of their Affiliates.

 

(c)          No
Limited Partner nor any other Person shall have any rights by virtue of this Agreement or the Partnership relationship established
hereby in any business ventures of any other Person and such Person shall have no obligation pursuant to this Agreement to offer
any interest in any such business ventures to the Partnership, any Limited Partner or any such other Person, even if such opportunity
is of a character which, if presented to the Partnership, any Limited Partner or such other Person, could be taken by such Person.

 

8.4           Return
of Capital

 

(a)          Except
pursuant to the Exchange Rights Agreements, no Limited Partner shall be entitled to the withdrawal or return of its Capital Contribution,
except to the extent of distributions made pursuant to this Agreement or upon termination of the Partnership as provided herein.

 

(b)          Except
as provided in Articles 5, 6 and 13 hereof, no Limited Partner or Assignee shall have priority over any other Limited Partner or
Assignee, either as to the return of Capital Contributions or as to profits, losses or distributions.

 

8.5           Rights
of Limited Partners Relating to the Partnership

 

(a)          In
addition to the other rights provided by this Agreement or by the Act, and except as limited by Section 8.5(b) hereof, each Limited
Partner and the Special Limited Partner shall have the right, for a purpose reasonably related to such Person’s interest
as a limited partner in the Partnership, upon written demand with a statement of the purpose of such demand and at such Person’s
own expense (including such reasonable copying and administrative charges as the General Partner may establish from time to time):

 

(i)          to
obtain a copy of the most recent annual and quarterly reports filed with the Securities and Exchange Commission by the Initial
Limited Partner pursuant to the Securities Exchange Act of 1934; and

 

(ii)         to
obtain a copy of the Partnership’s federal, state and local income tax returns for each Partnership Year.

 

    	 	48	 

     

    

 

(b)          Notwithstanding
any other provision of this Section 8.5, the General Partner may keep confidential from the Limited Partners and the Special Limited
Partner, for such period of time as the General Partner determines in its sole and absolute discretion to be reasonable, any information
that:

 

(i)          the
General Partner reasonably believes to be in the nature of trade secrets or other information, the disclosure of which the General
Partner in good faith believes is not in the best interests of the Partnership or could damage the Partnership or its business;
or

 

(ii)         the
Partnership is required by law or by agreements with an unaffiliated third party to keep confidential.

 

8.6           Exchange
Rights Agreements

 

(a)          The
Limited Partners (except for the Initial Limited Partner) will be granted the right, but not the obligation, to exchange all or
a portion of their Partnership Units for cash or, at the option of the Partnership, for shares of Common Stock on such terms and
subject to such conditions and restrictions as will be contained in one or more exchange rights agreements among the General Partner,
the Partnership and one or more Limited Partners (as amended from time to time, the “Exchange Rights Agreements”);
provided, however, that such Partnership Units shall have been outstanding for at least one year. The form of each
Exchange Rights Agreement governing the exchange of Partnership Units hereafter shall be determined by the General Partner.

 

(b)          The
Limited Partners and all successors, assignees and transferees (whether by operation of law, including by merger or consolidation,
dissolution or liquidation of an entity that is a Limited Partner, or otherwise) shall be bound by the provisions of the Exchange
Rights Agreement to which they are parties.

 

8.7           Conversion
and Exchange of Special Limited Partner Interests

 

(a)          Conversion
of Termination Note

 

(i)          If
the Special Limited Partner is entitled to receive distributions of Net Sales Proceeds pursuant to the Partnership’s obligation
under a Termination Note, the Special Limited Partner shall have the right, but not the obligation, to convert all or a portion
of its rights under a Termination Note into OP Units. The Special Limited Partner shall provide written notice to the General Partner
of its intention to convert all or a portion of its Termination Note at least ten (10) days prior to the date on which the conversion
is to occur, and such notice shall indicate the amount of the Termination Note that the Special Limited Partner intends to convert.
The maximum number of OP Units issuable upon a conversion of the Termination Note shall be equal to the quotient of (i) the net
amount of the Partnership’s remaining obligation pursuant to the Termination Note on the date of conversion divided by
(ii) the product of (A) the Value of one share of Common Stock on the date of conversion multiplied by (B) the Exchange
Factor. Only a whole number of OP Units may be issuable upon a conversion of the Termination Note. The Special Limited Partner
covenants and agrees with the Partnership that the Termination Note shall be free and clear of all liens. The conversion of all
or a portion of the Termination Note shall occur automatically after the close of business on the applicable date of conversion,
as of which time the Special Limited Partner shall be credited on the books and records of the Partnership with the issuance as
of the opening of business on the next day of the number of OP Units issuable upon such conversion.

 

    	 	49	 

     

    

 

(ii)         Exchange.
OP Units issuable upon a conversion of the Termination Note as set forth in this Section 8.7(a) shall be exchangeable for cash
or, at the option of the Partnership, for shares of Common Stock pursuant to Section 8.6.

 

(b)          Conversion
of Termination Listing Amount, Termination Liquidity Amount or Investment Liquidity Amount. At such time as the Special Limited
Partner is entitled to the Termination Listing Amount, Termination Liquidity Amount or Investment Liquidity Amount, the Special
Limited Partner shall have the right, but not the obligation, to convert the entire Special Limited Partner Interest into OP Units.
The Special Limited Partner shall notify the General Partner of its intention to convert its Special Limited Partner Interest as
soon as reasonably practicable after learning of the event that will give rise to its right to receive the Termination Listing
Amount, Termination Liquidity Amount or Investment Liquidity Amount. The number of OP Units issuable upon a conversion of the Special
Limited Partner Interest shall be equal to the quotient of (i) the Termination Listing Amount, Termination Liquidity Amount or
Investment Liquidity Amount, as the case may be, divided by (ii) the product of (A) in the case of the Termination Listing
Amount or the Termination Liquidity Amount, the Value of one share of Common Stock, and in the case of the Investment Liquidity
Amount, the Investment Liquidity Value per one share of Common Stock multiplied by (B) the Exchange Factor. The Special
Limited Partner covenants and agrees with the Partnership that the Special Limited Partner Interest shall be free and clear of
all liens. The conversion of all or a portion of the Special Limited Partner Interest shall occur automatically after the close
of business on the applicable date of conversion, as of which time the Special Limited Partner shall be credited on the books and
records of the Partnership with the issuance as of the opening of business on the next day of the number of OP Units issuable upon
such conversion.

 

Article
9

BOOKS, RECORDS, ACCOUNTING AND REPORTS

 

9.1           Records
and Accounting

 

(a)          The
General Partner shall keep or cause to be kept at the principal office of the Partnership those records and documents required
to be maintained by the Act and other books and records deemed by the General Partner to be appropriate with respect to the Partnership’s
business, including all books and records necessary for the General Partner to comply with applicable REIT Requirements and to
provide to the Limited Partners and the Special Limited Partner any information, lists and copies of documents required to be provided
pursuant to Sections 8.5(a) and 9.3 hereof.

 

    	 	50	 

     

    

 

(b)          The
books of the Partnership shall be maintained, for financial and tax reporting purposes, on an accrual basis in accordance with
generally accepted accounting principles, or such other basis as the General Partner determines to be necessary or appropriate.

 

9.2           Fiscal
Year

 

The fiscal year of the Partnership shall be
the calendar year.

 

9.3           Reports

 

(a)          As
soon as practicable, but in no event later than the date on which the Initial Limited Partner mails its annual report to its Stockholders,
the General Partner shall cause to be mailed to each Limited Partner and the Special Limited Partner as of the close of the Partnership
Year, an annual report containing financial statements of the Partnership, or of the Initial Limited Partner, if such statements
are prepared on a consolidated basis with the Partnership, for such Partnership Year, presented in accordance with the standards
of the Public Accounting Oversight Board (United States), such statements to be audited by a nationally recognized firm of independent
public accountants selected by the General Partner in its sole discretion.

 

(b)          If
and to the extent that the Initial Limited Partner mails quarterly reports to its Stockholders, then as soon as practicable, but
in no event later than the date such reports are mailed, the General Partner shall cause to be mailed to each Limited Partner and
the Special Limited Partner a report containing unaudited financial statements as of the last day of the calendar quarter of the
Partnership, or of the Initial Limited Partner, if such statements are prepared on a consolidated basis with the Partnership, and
such other information as may be required by applicable law or regulation, or as the General Partner determines to be appropriate.

 

(c)          Notwithstanding
the foregoing, the General Partner may deliver or make available to the Limited Partners and the Special Limited Partner each of
the reports described above, as well as any other communications that it may provide hereunder, by e-mail or by any other electronic
means, including by making such reports and communications available on the Initial Limited Partner’s website or on the Securities
and Exchange Commission’s EDGAR database.

 

Article
10

TAX MATTERS

 

10.1         Preparation
of Tax Returns

 

(a)          The
General Partner shall arrange for the preparation and timely filing of all returns of Partnership income, gains, deductions, losses
and other items required of the Partnership for federal and state income tax purposes and shall use all reasonable efforts to furnish,
(i) within ninety (90) days of the close of each taxable year, preliminary tax information reasonably required by the Limited Partners
and the Special Limited Partner for federal and state income tax reporting purposes and (ii) no later than thirty (30) days prior
to the due date of the Partnership federal income tax return (including any extensions), a final version of such information (including
Schedule K-1s), which may include information that is different from the information previously provided under clause (i).

 

    	 	51	 

     

    

 

(b)          If
required under the Code or applicable state or local income tax law, the General Partner shall also arrange for the preparation
and timely filing of all returns of income, gains, deductions, losses and other items required of the Subsidiaries of the Partnership
for federal and state income tax purposes and shall use all reasonable efforts to furnish, (i) within ninety (90) days of the close
of each taxable year, preliminary tax information reasonably required by the Limited Partners and the Special Limited Partner for
federal and state income tax reporting purposes and (ii) no later than thirty (30) days prior to the due date of the Partnership
federal income tax return (including any extensions), a final version of such information (including Schedule K-1s), which may
include information that is different from the information previously provided under clause (i).

 

10.2         Tax
Elections

 

(a)          Except
as otherwise provided herein, the General Partner shall, in its sole and absolute discretion, determine whether to make any available
election pursuant to the Code.

 

(b)          The
General Partner shall elect a permissible method (which need not be the same method for each item or property) of eliminating the
disparity between the Gross Asset Value and the tax basis for each item of property contributed to the Partnership or to a Subsidiary
of the Partnership pursuant to the Regulations promulgated under the provisions of Section 704(c) of the Code.

 

(c)          The
General Partner shall have the right to seek to revoke any tax election it makes, including the election under Section 754 of the
Code, upon the General Partner’s determination, in its sole and absolute discretion, that such revocation is in the best
interests of the Partners.

 

(d)          The
Partners, intending to be legally bound, hereby authorize the Partnership to make an election (the “Safe Harbor Election”)
to have the “liquidation value” safe harbor provided in Proposed Treasury Regulation Section 1.83-3(1) and the Proposed
Revenue Procedure set forth in Internal Revenue Service Notice 2005-43, as such safe harbor may be modified when such proposed
guidance is issued in final form or as amended by subsequently issued guidance (the “Safe Harbor”), apply to
any interest in the Partnership transferred to a service provider while the Safe Harbor Election remains effective, to the extent
such interest meets the Safe Harbor requirements (collectively, such interests are referred to as “Safe Harbor Interests”).
The tax matters partner is authorized and directed to execute and file the Safe Harbor Election on behalf of the Partnership and
the Partners if and when the Safe Harbor Election becomes available. The Partnership and the Partners (including any person to
whom an interest in the Partnership is transferred in connection with the performance of services) hereby agree to comply with
all requirements of the Safe Harbor (including forfeiture allocations) with respect to all Safe Harbor Interests and to prepare
and file all U.S. federal income tax returns reporting the tax consequences of the issuance and vesting of Safe Harbor Interests
consistent with such final Safe Harbor guidance. The General Partner is authorized to take such actions as are necessary to achieve,
under the Safe Harbor, the effect that the election and compliance with all requirements of the Safe Harbor referred to above would
be intended to achieve under Proposed Treasury Regulation Section 1.83-3, including amending this Agreement.

 

    	 	52	 

     

    

 

10.3         Tax
Matters Partner

 

(a)          (i)          The
General Partner shall be the “tax matters partner” of the Partnership for federal income tax purposes as and when required
pursuant to Section 6231(a)(7) of the Code to the extent applicable for taxable years beginning before January 1, 2018.

 

(ii)         Pursuant
to Section 6230(e) of the Code, upon receipt of notice from the Internal Revenue Service of the beginning of an administrative
proceeding with respect to the Partnership, the tax matters partner shall furnish the Internal Revenue Service with the name, address,
taxpayer identification number, and profit interest of each of the Limited Partners, the Special Limited Partner and the Assignees;
provided, however, that such information is provided to the Partnership by the Limited Partners, the Special Limited
Partner and the Assignees.

 

(iii)        The
tax matters partner is authorized, but not required:

 

(A)         to
enter into any settlement with the Internal Revenue Service with respect to any administrative or judicial proceedings for the
adjustment of Partnership items required to be taken into account by a Partner (including the Special Limited Partner) for income
tax purposes (such administrative proceedings being referred to as a “tax audit” and such judicial proceedings being
referred to as “judicial review”), and in the settlement agreement the tax matters partner may expressly state that
such agreement shall bind all Partners (including the Special Limited Partner), except that such settlement agreement shall not
bind any Partner or the Special Limited Partner

 

(1)         who
(within the time prescribed pursuant to the Code and Regulations) files a statement with the Internal Revenue Service providing
that the tax matters partner shall not have the authority to enter into a settlement agreement on behalf of such Partner or the
Special Limited Partner; or

 

(2)         who
is a “notice partner” (as defined in Section 6231(a)(8) of the Code) or a member of a “notice group” (as
defined in Section 6223(b)(2) of the Code);

 

(B)         if
a notice of a final administrative adjustment at the Partnership level of any item required to be taken into account by a Partner
or the Special Limited Partner for tax purposes (a “final adjustment”) is mailed to the tax matters partner, to seek
judicial review of such final adjustment, including the filing of a petition for readjustment with the Tax Court or the filing
of a complaint for refund with the United States Claims Court or the District Court of the United States for the district in which
the Partnership’s principal place of business is located;

 

(C)         to
intervene in any action brought by any other Partner or the Special Limited Partner for judicial review of a final adjustment;

 

    	 	53	 

     

    

 

(D)         to
file a request for an administrative adjustment with the Internal Revenue Service and, if any part of such request is not allowed
by the Internal Revenue Service, to file an appropriate pleading (petition or complaint) for judicial review with respect to such
request;

 

(E)         to
enter into an agreement with the Internal Revenue Service to extend the period for assessing any tax which is attributable to any
item required to be taken account of by a Partner or the Special Limited Partner for tax purposes, or an item affected by such
item; and

 

(F)         to
take any other action on behalf of the Partners, the Special Limited Partner or the Partnership in connection with any tax audit
or judicial review proceeding to the extent permitted by applicable law or regulations.

 

The taking of any action and the incurring of any expense
by the tax matters partner in connection with any such proceeding, except to the extent required by law, is a matter in the sole
and absolute discretion of the tax matters partner and the provisions relating to indemnification of the General Partner set forth
in Section 7.6 of this Agreement shall be fully applicable to the tax matters partner in its capacity as such.

 

(b)          (i)          The
tax matters partner shall receive no compensation for its services.

 

(ii)         All
third party costs and expenses incurred by the tax matters partner in performing its duties as such (including legal and accounting
fees and expenses) shall be borne by the Partnership.

 

(iii)        Nothing
herein shall be construed to restrict the Partnership from engaging an accounting firm to assist the tax matters partner in discharging
its duties hereunder, so long as the compensation paid by the Partnership for such services is reasonable.

 

10.4         Organizational
Expenses

 

The Partnership shall elect to deduct expenses,
if any, incurred by it in organizing the Partnership ratably over a one hundred eighty (180) month period as provided in Section
709 of the Code.

 

10.5         Withholding

 

(a)          Each
Limited Partner and the Special Limited Partner hereby authorizes the Partnership to withhold from, or pay on behalf of or with
respect to, such Limited Partner or the Special Limited Partner any amount of federal, state, local, or foreign taxes that the
General Partner determines that the Partnership is required to withhold or pay with respect to any amount distributable or allocable
to such Limited Partner or the Special Limited Partner pursuant to this Agreement, including any taxes required to be withheld
or paid by the Partnership pursuant to Sections 1441, 1442, 1445, or 1446 of the Code.

 

    	 	54	 

     

    

 

(b)          (i)          Any
amount paid on behalf of or with respect to a Limited Partner or the Special Limited Partner shall constitute a loan by the Partnership
to such Limited Partner or the Special Limited Partner, which loan shall be repaid by such Limited Partner or the Special Limited
Partner as the case may be within fifteen (15) days after notice from the General Partner that such payment must be made unless

 

(A)         the
Partnership withholds such payment from a distribution which would otherwise be made to the Limited Partner or the Special Limited
Partner; or

 

(B)         the
General Partner determines, in its sole and absolute discretion, that such payment may be satisfied out of the available funds
of the Partnership which would, but for such payment, be distributed to the Limited Partner or the Special Limited Partner.

 

(ii)         Any
amounts withheld pursuant to the foregoing clauses (i)(A) or (B) shall be treated as having been distributed to the Limited Partner
or the Special Limited Partner.

 

(c)          (i)          Each
Limited Partner and the Special Limited Partner hereby unconditionally and irrevocably grant to the Partnership a security interest
in such Limited Partner’s Partnership Interest and such Special Limited Partner’s Special Limited Partner Interest,
as the case may be, to secure such Limited Partner’s or Special Limited Partner’s obligation to pay to the Partnership
any amounts required to be paid pursuant to this Section 10.5.

 

(ii)         (A)         If
a Limited Partner or the Special Limited Partner fails to pay when due any amounts owed to the Partnership pursuant to this Section
10.5, the General Partner may, in its sole and absolute discretion, elect to make the payment to the Partnership on behalf of such
defaulting Limited Partner or Special Limited Partner, and in such event shall be deemed to have loaned such amount to such defaulting
Limited Partner or Special Limited Partner and shall succeed to all rights and remedies of the Partnership as against such defaulting
Limited Partner or Special Limited Partner.

 

(B)         Without
limitation, in such event, the General Partner shall have the right to receive distributions that would otherwise be distributable
to such defaulting Limited Partner or Special Limited Partner until such time as such loan, together with all interest thereon,
has been paid in full, and any such distributions so received by the General Partner shall be treated as having been distributed
to the defaulting Limited Partner or Special Limited Partner and immediately paid by the defaulting Limited Partner or Special
Limited Partner to the General Partner in repayment of such loan.

 

(iii)        Any
amount payable by a Limited Partner or the Special Limited Partner hereunder shall bear interest at the highest base or prime rate
of interest published from time to time by The Wall Street Journal, plus four (4) percentage points, but in no event higher than
the maximum lawful rate of interest on such obligation, such interest to accrue from the date such amount is due (i.e., fifteen
(15) days after demand) until such amount is paid in full.

 

    	 	55	 

     

    

 

(iv)        Each
Limited Partner or the Special Limited Partner shall take such actions as the Partnership or the General Partner shall request
in order to perfect or enforce the security interest created hereunder.

 

Article
11

TRANSFERS AND WITHDRAWALS

 

11.1         Transfer

 

(a)          (i)          The
term “Transfer,” when used in this Article 11 with respect to a Partnership Interest or a Partnership Unit, shall be
deemed to refer to a transaction by which the General Partner purports to assign all or any part of its General Partner Interest
to another Person, or a Limited Partner purports to assign all or any part of its Limited Partner Interest to another Person, and
includes a sale, assignment, gift, pledge, encumbrance, hypothecation, mortgage, exchange or any other disposition by law or otherwise.

 

(ii)         The
term “Transfer” when used in this Article 11 does not include any exchange of Partnership Units for cash or Common
Stock pursuant to the Exchange Rights Agreement.

 

(b)          (i)          No
Partnership Interest shall be Transferred, in whole or in part, except in accordance with the terms and conditions set forth in
this Article 11.

 

(ii)         Any
Transfer or purported Transfer of a Partnership Interest not made in accordance with this Article 11 shall be null and void.

 

11.2         Transfer
of the General Partner’s General Partner Interest and the Initial Limited Partner’s Limited Partner Interest

 

(a)          The
General Partner may not Transfer any of its General Partner Interest or withdraw as General Partner, or Transfer any of its Limited
Partner Interest, except

 

(i)          if
holders of at least two-thirds of the Limited Partner Interests consent to such Transfer or withdrawal;

 

(ii)         if
the General Partner transfers all of its General Partner Interest to the Initial Limited Partner; or

 

(iii)        if
such Transfer is to an entity which is wholly owned by the General Partner or the Initial Limited Partner and is a Qualified REIT
Subsidiary as defined in Section 856(i) of the Code.

 

(b)          If
the General Partner withdraws as general partner of the Partnership in accordance with Section 11.2(a), the General Partner’s
General Partner Interest shall immediately be converted into a Limited Partner Interest.

 

    	 	56	 

     

    

 

(c)          Except
as otherwise provided in Section 11.2(d), the Initial Limited Partner shall not engage in any merger, consolidation or other combination
of the Initial Limited Partner with or into another Person (other than a merger in which the Initial Limited Partner is the surviving
entity) or sale of all or substantially all of its assets, or any reclassification, or any recapitalization of outstanding Common
Stock (other than a change in par value, or from par value to no par value, or as a result of a subdivision or combination of Common
Stock) (a “Transaction”), unless

 

(i)          in
connection with the Transaction all Limited Partners (other than the Initial Limited Partner) will either receive, or will have
the right to elect to receive, for each Partnership Unit an amount of cash, securities, or other property equal to the product
of the Exchange Factor and the amount of cash, securities or other property or value paid in the Transaction to or received by
a holder of one share of Common Stock corresponding to such Partnership Unit in consideration of one share of Common Stock at any
time during the period from and after the date on which the Transaction is consummated; provided, however, that if,
in connection with the Transaction, a purchase, tender or exchange offer (“Offer”) shall have been made to and
accepted by the holders of more than 50% of the outstanding Common Stock, each holder of Partnership Units shall be given the option
to exchange its Partnership Units for the amount of cash, securities, or other property which a Limited Partner would have received
had it

 

(A)         exercised
its Exchange Right and

 

(B)         sold,
tendered or exchanged pursuant to the Offer the Common Stock received upon exercise of the Exchange Right immediately prior to
the expiration of the Offer.

 

The foregoing is not intended to,
and does not, affect the ability of (i) a Stockholder of the Initial Limited Partner to sell its stock in the Initial Limited Partner
or (ii) Initial Limited Partner to perform its obligations (under agreement or otherwise) to such Stockholders (including the fulfillment
of any obligations with respect to registering the sale of stock under applicable securities laws).

 

(d)          (i)          Notwithstanding
Section 11.2(c), the Initial Limited Partner may merge into or consolidate with another entity if immediately after such merger
or consolidation

 

(A)         substantially
all of the assets of the successor or surviving entity (the “Surviving Partner”), other than Partnership Units
held by the Initial Limited Partner, are contributed to the Partnership as a Capital Contribution in exchange for Partnership Units
with a fair market value equal to the value of the assets so contributed as determined by the Surviving Partner in good faith and

 

(B)         the
Surviving Partner expressly agrees to assume all obligations of the Initial Limited Partner hereunder.

 

(ii)         (A)         Upon
such contribution and assumption, the General Partner shall have the right and duty to amend this Agreement and the Exchange Rights
Agreement as set forth in this Section 11.2(d).

 

    	 	57	 

     

    

 

(B)         (1)         The
General Partner shall in good faith arrive at a new method for the calculation of the Exchange Factor for a Partnership Unit after
any such merger or consolidation so as to approximate the existing method for such calculation as closely as reasonably possible.

 

(2)         Such
calculation shall take into account, among other things, the kind and amount of securities, cash and other property that was receivable
upon such merger or consolidation by a holder of Common Stock or options, warrants or other rights relating thereto, and which
a holder of Partnership Units could have acquired had such Partnership Units been redeemed for Common Stock immediately prior to
such merger or consolidation.

 

(C)         Such
amendment to this Agreement shall provide for adjustment to such method of calculation, which shall be as nearly equivalent as
may be practicable to the adjustments provided for with respect to the Exchange Factor.

 

(iii)        The
above provisions of this Section 11.2(d) shall similarly apply to successive mergers or consolidations permitted hereunder.

 

11.3         Limited
Partners’ Rights to Transfer

 

(a)          Subject
to the provisions of Sections 11.3(c), 11.3(d), 11.3(e), 11.4 and 11.6, a Limited Partner (other than the Initial Limited Partner)
may, without the consent of the General Partner, Transfer all or any portion of its Limited Partner Interest, or any of such Limited
Partner’s economic right as a Limited Partner. In order to effect such transfer, the Limited Partner must deliver to the
General Partner a duly executed copy of the instrument making such transfer and such instrument must evidence the written acceptance
by the assignee of all of the terms and conditions of this Agreement and represent that such assignment was made in accordance
with all applicable laws and regulations.

 

(b)          (i)          If
a Limited Partner is Incapacitated, the executor, administrator, trustee, committee, guardian, conservator or receiver of such
Limited Partner’s estate shall have all of the rights of a Limited Partner, but not more rights than those enjoyed by other
Limited Partners, for the purpose of settling or managing the estate and such power as the Incapacitated Limited Partner possessed
to Transfer all or any part of his or its interest in the Partnership.

 

(ii)         The
Incapacity of a Limited Partner, in and of itself, shall not dissolve or terminate the Partnership.

 

(c)          The
General Partner may prohibit any Transfer by a Limited Partner of its Partnership Units if it reasonably believes (based on the
advice of counsel) such Transfer would require filing of a registration statement under the Securities Act of 1933, as amended,
or would otherwise violate any federal or state securities laws or regulations applicable to the Partnership or the Partnership
Units.

 

(d)          No
Transfer by a Limited Partner of its Partnership Units may be made to any Person if

 

    	 	58	 

     

    

 

(i)          it
would adversely affect the ability of the Initial Limited Partner to continue to qualify as a REIT or would subject the Initial
Limited Partner to any additional taxes under Section 857 or Section 4981 of the Code;

 

(ii)         it
would result in the Partnership being treated as an association taxable as a corporation for federal income tax purposes;

 

(iii)        such
Transfer would cause the Partnership to become, with respect to any employee benefit plan subject to Title I of ERISA, a “party-in-interest”
(as defined in Section 3(14) of ERISA) or a “disqualified person” (as defined in Section 4975(c) of the Code);

 

(iv)        such
Transfer would, in the opinion of legal counsel for the Partnership, cause any portion of the assets of the Partnership to constitute
assets of any employee benefit plan pursuant to Department of Labor Regulations Section 2510.2-101;

 

(v)         such
Transfer would subject the Partnership to regulation under the Investment Company Act of 1940, the Investment Advisors Act of 1940
or the Employee Retirement Income Security Act of 1974, each as amended;

 

(vi)        such
Transfer is a sale or exchange, and such sale or exchange would, when aggregated with all other sales and exchanges during the
12-month period ending on the date of the proposed Transfer, result in 50% or more of the interests in Partnership capital and
profits being sold or exchanged during such 12-month period without the consent of the General Partner, which consent may be withheld
in its sole and absolute discretion; or

 

(vii)       such
Transfer is effectuated through an “established securities market” or a “secondary market (or the substantial
equivalent thereof)” within the meaning of Section 7704 of the Code.

 

(e)          No
transfer of any Partnership Units may be made to a lender to the Partnership or any Person who is related (within the meaning of
Section 1.752-4(b) of the Regulations) to any lender to the Partnership whose loan constitutes a nonrecourse liability (within
the meaning of Section 1.752-1(a)(2) of the Regulations), without the consent of the General Partner, which may be withheld in
its sole and absolute discretion; provided, however, that as a condition to such consent the lender will be required
to enter into an arrangement with the Partnership and the General Partner to exchange for the Cash Amount any Partnership Units
in which a security interest is held simultaneously with the time at which such lender would be deemed to be a partner in the Partnership
for purposes of allocating liabilities to such lender under Section 752 of the Code.

 

(f)          Any
Transfer in contravention of any of the provisions of this Section 11.3 shall be void and ineffectual and shall not be binding
upon, or recognized by, the Partnership.

 

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11.4         Substituted
Limited Partners

 

(a)          (i)          No
Limited Partner shall have the right to substitute a Permitted Transferee for a Limited Partner in its place.

 

(ii)         The
General Partner shall, however, have the right to consent to the admission of a Permitted Transferee of the Partnership Interest
of a Limited Partner pursuant to this Section 11.4 as a Substituted Limited Partner, which consent may be given or withheld by
the General Partner in its sole and absolute discretion.

 

(iii)        The
General Partner’s failure or refusal to permit such transferee to become a Substituted Limited Partner shall not give rise
to any cause of action against the Partnership or any Partner.

 

(b)          A
transferee who has been admitted as a Substituted Limited Partner in accordance with this Article 11 shall have all the rights
and powers and be subject to all the restrictions and liabilities of a Limited Partner under this Agreement.

 

(c)          (i)          No
Permitted Transferee will be admitted as a Substituted Limited Partner, unless such transferee has furnished to the General Partner
evidence of acceptance in form satisfactory to the General Partner of all of the terms and conditions of this Agreement and, as
it relates to the Substituted Limited Partners, the Exchange Rights Agreement, including the power of attorney granted in Section
2.4 hereof.

 

(ii)         Upon
the admission of a Substituted Limited Partner, the General Partner shall amend Exhibit A to reflect the name, address,
number of Partnership Units, and Percentage Interest of such Substituted Limited Partner, and to eliminate or adjust, if necessary,
the name, address and interest of the predecessor of such Substituted Limited Partner.

 

11.5         Assignees

 

(a)          If
the General Partner, in its sole and absolute discretion, does not consent to the admission of any transferee as a Substituted
Limited Partner, as described in Section 11.4(a), such transferee shall be considered an Assignee for purposes of this Agreement.

 

(b)          An
Assignee shall be deemed to have had assigned to it, and shall be entitled to receive distributions from the Partnership and the
share of Net Income, Net Losses, Net Property Gain, Net Property Loss, and any other items of gain, loss, deduction or credit of
the Partnership attributable to the Partnership Units assigned to such transferee, but shall not be deemed to be a holder of Partnership
Units for any other purpose under this Agreement, and shall not be entitled to vote such Partnership Units in any matter presented
to the Limited Partners, for a vote (such Partnership Units being deemed to have been voted on such matter in the same proportion
as all other Partnership Units held by Limited Partners are voted).

 

(c)          If
any such transferee desires to make a further assignment of any such Partnership Units, such transferee shall be subject to all
of the provisions of this Article 11 to the same extent and in the same manner as any Limited Partner desiring to make an assignment
of Partnership Units.

 

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11.6         General
Provisions

 

(a)          No
Limited Partner may withdraw from the Partnership other than as a result of a permitted Transfer of all of such Limited Partner’s
Partnership Units in accordance with this Article 11 or, as it relates to the Limited Partners, pursuant to exchange of all of
its Partnership Units pursuant to the applicable Exchange Rights Agreement.

 

(b)          (i)          Any
Limited Partner which shall Transfer all of its Partnership Units in a Transfer permitted pursuant to this Article 11 shall cease
to be a Limited Partner upon the admission of all Assignees of such Partnership Units as Substituted Limited Partners.

 

(ii)         Similarly,
any Limited Partner which shall Transfer all of its Partnership Units pursuant to an exchange of all of its Partnership Units pursuant
to an Exchange Rights Agreement shall cease to be a Limited Partner.

 

(c)          Other
than pursuant to the Exchange Rights Agreement or with the consent of the General Partner, transfers pursuant to this Article 11
may only be made as of the first day of a fiscal quarter of the Partnership.

 

(d)          (i)          If
any Partnership Interest is transferred or assigned during the Partnership’s fiscal year in compliance with the provisions
of this Article 11 or exchanged pursuant to the applicable Exchange Rights Agreement on any day other than the first day of a Partnership
Year, then Net Income, Net Losses, Net Property Gain, Net Property Loss, each item thereof and all other items attributable to
such interest for such Partnership Year shall be divided and allocated between the transferor Partner and the transferee Partner
by taking into account their varying interests during the Partnership Year in accordance with Section 706(d) of the Code, using
the interim closing of the books method or such other method permitted by the Code as the General Partner may select.

 

(ii)         Solely
for purposes of making such allocations, each of such items for the calendar month in which the Transfer or assignment occurs shall
be allocated to the transferee Partner, and none of such items for the calendar month in which an exchange occurs shall be allocated
to the exchanging Partner, provided, however, that the General Partner may adopt such other conventions relating
to allocations in connection with transfers, assignments, or exchanges as it determines are necessary or appropriate.

 

(iii)        All
distributions pursuant to Section 5.1(a) and Section 5.1(b) attributable to Partnership Units, with respect to which the Partnership
Record Date is before the date of such Transfer, assignment, or exchange of such Partnership Units, shall be made to the transferor
Partner or the exchanging Partner, as the case may be, and in the case of a Transfer or assignment other than an exchange, all
distributions pursuant to Section 5.1(a) and Section 5.1(b) thereafter attributable to such Partnership Units shall be made to
the transferee Partner.

 

    	 	61	 

     

    

 

(e)          In
addition to any other restrictions on transfer herein contained, including the provisions of this Article 11, in no event may any
Transfer or assignment of a Partnership Interest by any Partner (including pursuant to Section 8.6) be made without the express
consent of the General Partner, in its sole and absolute discretion, (i) to any person or entity who lacks the legal right, power
or capacity to own a Partnership Interest; (ii) in violation of applicable law; (iii) of any component portion of a Partnership
Interest, such as the Capital Account, or rights to distributions, separate and apart from all other components of a Partnership
Interest; (iv) if in the opinion of legal counsel to the Partnership such transfer would cause a termination of the Partnership
for federal or state income tax purposes (except as a result of the exchange for Common Stock of all Partnership Units held by
all Limited Partners or pursuant to a transaction expressly permitted under Section 11.2); (v) if in the opinion of counsel to
the Partnership, there would be a significant risk that such transfer would cause the Partnership to cease to be classified as
a partnership for federal income tax purposes (except as a result of the exchange for Common Stock of all Partnership Units held
by all Limited Partners or pursuant to a transaction expressly permitted under Section 11.2); (vi) if such transfer requires the
registration of such Partnership Interest pursuant to any applicable federal or state securities laws; (vii) if such transfer is
effectuated through an “established securities market” or a “secondary market (or the substantial equivalent
thereof)” within the meaning of Section 7704 of the Code or such transfer causes the Partnership to become a “publicly
traded partnership,” as such term is defined in Section 469(k)(2) or Section 7704(b) of the Code (provided, however,
that this clause (vii) shall not be the basis for limiting or restricting in any manner the exercise of the Exchange Right under
Section 8.6 unless, and only to the extent that, outside tax counsel provides to the General Partner an opinion to the effect that,
in the absence of such limitation or restriction, there is a significant risk that the Partnership will be treated as a “publicly
traded partnership” and, by reason thereof, taxable as a corporation); (viii) such transfer could adversely affect the ability
of the Initial Limited Partner to remain qualified as a REIT; or (ix) if in the opinion of legal counsel of the transferring Partner
(which opinion and counsel are reasonably satisfactory to the Partnership), or legal counsel of the Partnership, such transfer
would adversely affect the ability of the Initial Limited Partner to continue to qualify as a REIT or subject the Initial Limited
Partner to any additional taxes under Section 857 or Section 4981 of the Code, if the Initial Limited Partner has elected to be
qualified as a REIT.

 

(f)          The
General Partner shall monitor the transfers of interests in the Partnership to determine (i) if such interests are being traded
on an “established securities market” or a “secondary market (or the substantial equivalent thereof)” within
the meaning of Section 7704 of the Code; and (ii) whether additional transfers of interests would result in the Partnership being
unable to qualify for at least one of the “safe harbors” set forth in Section 1.7704-1 of the Regulations (or such
other guidance subsequently published by the IRS setting forth safe harbors under which interests will not be treated as “readily
tradable on a secondary market (or the substantial equivalent thereof)” within the meaning of Section 7704 of the Code) (the
“PTP Safe Harbors”). The General Partner shall take all steps reasonably necessary or appropriate to prevent
any trading of interests or any recognition by the Partnership of transfers made on such markets and, except as otherwise provided
herein, to insure that at least one of the PTP Safe Harbors is met; provided, however, that the foregoing shall not authorize the
General Partner to limit or restrict in any manner the right of any holder of a Partnership Unit to exercise the Exchange Right
in accordance with the terms of the applicable Exchange Rights Agreement unless, and only to the extent that, outside tax counsel
provides to the General Partner an opinion to the effect that, in the absence of such limitation or restriction, there is a significant
risk that the Partnership will be treated as a “publicly traded partnership” and, by reason thereof, taxable as a corporation.

 

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Article
12

ADMISSION OF PARTNERS

 

12.1         Admission
of Successor General Partner

 

(a)          (i)          A
successor to all of the General Partner Interest pursuant to Article 11 hereof who is proposed to be admitted as a successor General
Partner shall be admitted to the Partnership as the General Partner, effective immediately following such transfer and the admission
of such successor General Partner as a general partner of the Partnership upon the satisfaction of the terms and conditions set
forth in Section 12.1(b).

 

(ii)         Any
such transferee shall carry on the business of the Partnership without dissolution.

 

(b)          A
Person shall be admitted as a substitute or successor General Partner of the Partnership only if the following terms and conditions
are satisfied:

 

(i)          the
Person to be admitted as a substitute or additional General Partner shall have accepted and agreed to be bound by all the terms
and provisions of this Agreement by executing a counterpart thereof and such other documents or instruments as may be required
or appropriate in order to effect the admission of such Person as a General Partner;

 

(ii)         if
the Person to be admitted as a substitute or additional General Partner is a corporation or a partnership it shall have provided
the Partnership with evidence satisfactory to counsel for the Partnership of such Person’s authority to become a General
Partner and to be bound by the terms and provisions of this Agreement; and

 

(iii)        counsel
for the Partnership shall have rendered an opinion (relying on such opinions from other counsel as may be necessary) that the admission
of the person to be admitted as a substitute or additional General Partner is in conformity with the Act, that none of the actions
taken in connection with the admission of such Person as a substitute or additional General Partner will cause

 

(A)         the
Partnership to be classified other than as a partnership for federal income tax purposes, or

 

(B)         the
loss of any Limited Partner’s limited liability.

 

(c)          In
the case of such admission on any day other than the first day of a Partnership Year, all items attributable to the General Partner
Interest for such Partnership Year shall be allocated between the transferring General Partner and such successor as provided in
Section 11.6(d) hereof.

 

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12.2         Admission
of Additional Limited Partners

 

(a)          A
Person who makes a Capital Contribution to the Partnership in accordance with this Agreement shall be admitted to the Partnership
as an Additional Limited Partner only upon furnishing to the General Partner

 

(i)          evidence
of acceptance in form satisfactory to the General Partner of all of the terms and conditions of this Agreement and the applicable
Exchange Rights Agreement, including the power of attorney granted in Section 2.4 hereof, and

 

(ii)         such
other documents or instruments as may be required in the discretion of the General Partner in order to effect such Person’s
admission as an Additional Limited Partner.

 

(b)          (i)          Notwithstanding
anything to the contrary in this Section 12.2, no Person shall be admitted as an Additional Limited Partner without the consent
of the General Partner, which consent may be given or withheld in the General Partner’s sole and absolute discretion.

 

(ii)         The
admission of any Person as an Additional Limited Partner shall become effective on the date upon which the name of such Person
is recorded on the books and records of the Partnership, following the consent of the General Partner to such admission.

 

(c)          (i)          If
any Additional Limited Partner is admitted to the Partnership on any day other than the first day of a Partnership Year, then Net
Income, Net Losses, Net Property Gain, Net Property Loss, each item thereof and all other items allocable among Partners and Assignees
for such Partnership Year shall be allocated among such Additional Limited Partner and all other Partners and Assignees by taking
into account their varying interests during the Partnership Year in accordance with Section 706(d) of the Code, using the interim
closing of the books method or such other method permitted by the Code as the General Partner may select.

 

(ii)         (A)         Solely
for purposes of making such allocations, each of such items for the calendar month in which an admission of any Additional Limited
Partner occurs shall be allocated among all of the Partners and Assignees, including such Additional Limited Partner.

 

(B)         distributions
pursuant to Section 5.1(a) and Section 5.1(b) with respect to which the Partnership Record Date is before the date of such admission
shall be made solely to Partners and Assignees, other than the Additional Limited Partner, and all distributions pursuant to Section
5.1(a) and Section 5.1(b) thereafter shall be made to all of the Partners and Assignees, including such Additional Limited Partner.

 

12.3         Amendment
of Agreement and Certificate of Limited Partnership

 

For the admission to the Partnership of any
Partner, the General Partner shall take all steps necessary and appropriate under the Act to amend the records of the Partnership
and, if necessary, to prepare as soon as practical an amendment of this Agreement (including an amendment of Exhibit A)
and, if required by law, shall prepare and file an amendment to the Certificate and may for this purpose exercise the power of
attorney granted pursuant to Section 2.4 hereof.

 

    	 	64	 

     

    

 

Article
13

DISSOLUTION, LIQUIDATION AND TERMINATION

 

13.1         Dissolution

 

(a)          The
Partnership shall not be dissolved by the admission of Substituted Limited Partners, Additional Limited Partners or by the admission
of a successor General Partner in accordance with the terms of this Agreement. Upon the withdrawal of the General Partner, any
successor General Partner shall continue the business of the Partnership.

 

(b)          The
Partnership shall dissolve, and its affairs shall be wound up, only upon the first to occur of any of the following (each, a “Liquidating
Event”):

 

(i)          the
expiration of its term as provided in Section 2.5 hereof;

 

(ii)         an
event of withdrawal of the General Partner, as defined in the Act (other than an event of bankruptcy), unless, within ninety (90)
days after such event of withdrawal, a “majority in interest” (as defined below) of the remaining Partners Consent
in writing to continue the business of the Partnership and to the appointment, effective as of the date of withdrawal, of a successor
General Partner;

 

(iii)        an
election to dissolve the Partnership made by the General Partner, with the Consent of the Limited Partners holding at least a majority
of the Percentage Interest of the Limited Partners (including Limited Partner Interests held by the General Partner);

 

(iv)        entry
of a decree of judicial dissolution of the Partnership pursuant to the provisions of the Act;

 

(v)         a
Capital Transaction;

 

(vi)        a
final and non-appealable judgment is entered by a court of competent jurisdiction ruling that the General Partner is bankrupt or
insolvent, or a final and non-appealable order for relief is entered by a court with appropriate jurisdiction against the General
Partner, in each case under any federal or state bankruptcy or insolvency laws as now or hereafter in effect, unless prior to the
entry of such order or judgment a “majority in interest” (as defined below) of the remaining Partners Consent in writing
to continue the business of the Partnership and to the appointment, effective as of a date prior to the date of such order or judgment,
of a substitute General Partner.

 

As used herein, a “majority in interest”
shall refer to Partners (excluding the General Partner) who hold more than fifty percent (50%) of the outstanding Percentage Interests
not held by the General Partner.

 

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13.2         Winding
Up

 

(a)             (i)          Upon
the occurrence of a Liquidating Event, the Partnership shall continue solely for the purposes of winding up its affairs in an orderly
manner, liquidating its assets, and satisfying the claims of its creditors and Partners.

 

(ii)         No
Partner shall take any action that is inconsistent with, or not necessary to or appropriate for, the winding up of the Partnership’s
business and affairs.

 

(iii)        The
General Partner, or, if there is no remaining General Partner, any Person elected by the Limited Partners holding at least a “majority
in interest” (the General Partner or such other Person being referred to herein as the “Liquidator”),
shall be responsible for overseeing the winding up and dissolution of the Partnership and shall take full account of the Partnership’s
liabilities and property and the Partnership property shall be liquidated as promptly as is consistent with obtaining the fair
value thereof, and the proceeds therefrom (which may, to the extent determined by the General Partner, include shares of common
stock or other securities of the General Partner) shall be applied and distributed in the following order:

 

(A)         First,
to the payment and discharge of all of the Partnership’s debts and liabilities to creditors other than the Partners;

 

(B)         Second,
to the payment and discharge of all of the Partnership’s debts and liabilities to the General Partner;

 

(C)         Third,
to the payment and discharge of all of the Partnership’s debts and liabilities to the other Partners; and

 

(D)         the
balance, if any, shall be distributed to all Partners (including the Special Limited Partner) with positive Capital Accounts in
accordance with their respective positive Capital Account balances after giving effect to all allocations in Exhibit B and all
prior distributions under Section 5.1.

 

(iv)        The
General Partner shall not receive any additional compensation for any services performed pursuant to this Article 13.

 

(v)         Any
distributions pursuant to this Section 13.2(a) shall be made by the end of the Partnership’s taxable year in which the liquidation
occurs (or, if later, within 90 days after the date of the liquidation).

 

(b)             (i)          Notwithstanding
the provisions of Section 13.2(a) hereof which require liquidation of the assets of the Partnership, but subject to the order of
priorities set forth therein, if prior to or upon dissolution of the Partnership the Liquidator determines that an immediate sale
of part or all of the Partnership’s assets would be impractical or would cause undue loss to the Partners (including the
Special Limited Partner), the Liquidator may, in its sole and absolute discretion, defer for a reasonable time the liquidation
of any asset except those necessary to satisfy liabilities of the Partnership (including to those Partners, including the Special
Limited Partner, as creditors) or distribute to the Partners (including the Special Limited Partner), in lieu of cash, as tenants
in common and in accordance with the provisions of Section 13.2(a) hereof, undivided interests in such Partnership assets as the
Liquidator deems not suitable for liquidation.

 

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(ii)         Any
such distributions in kind shall be made only if, in the good faith judgment of the Liquidator, such distributions in kind are
in the best interests of the Partners (including the Special Limited Partner), and shall be subject to such conditions relating
to the disposition and management of such properties as the Liquidator deems reasonable and equitable and to any agreements governing
the operation of such properties at such time.

 

(iii)        The
Liquidator shall determine the fair market value of any property distributed in kind using such reasonable method of valuation
as it may adopt.

 

(c)          In
the discretion of the Liquidator, a pro rata portion of the distributions that would otherwise be made to the General Partner,
the Limited Partners and the Special Limited Partner pursuant to this Article 13 may be:

 

(A)         distributed
to a trust established for the benefit of the General Partner, the Limited Partners and the Special Limited Partner for the purposes
of liquidating Partnership assets, collecting amounts owed to the Partnership, and paying any contingent or unforeseen liabilities
or obligations of the Partnership or the General Partner arising out of or in connection with the Partnership; the assets of any
such trust shall be distributed to the General Partner, the Limited Partners and the Special Limited Partner from time to time,
in the reasonable discretion of the Liquidator, in the same proportions as the amount distributed to such trust by the Partnership
would otherwise have been distributed to the General Partner, the Limited Partners and the Special Limited Partner pursuant to
this Agreement; or

 

(B)         withheld
or escrowed to provide a reasonable reserve for Partnership liabilities (contingent or otherwise) and to reflect the unrealized
portion of any installment obligations owed to the Partnership, provided that such withheld or escrowed amounts shall be distributed
to the General Partner, the Limited Partners and the Special Limited Partner in the manner and order of priority set forth in Section
13.2(a), as soon as practicable.

 

13.3         Obligation
to Contribute Deficit

 

If any Partner has a deficit balance in his
Capital Account (after giving effect to all contributions, distributions and allocations for all taxable years, including the year
during which such liquidation occurs), such Partner shall have no obligation to make any contribution to the capital of the Partnership
with respect to such deficit, and such deficit shall not be considered a debt owed to the Partnership or to any other Person for
any purpose whatsoever.

 

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13.4         Rights
of Limited Partners

 

(a)          Except
as otherwise provided in this Agreement, each Limited Partner shall look solely to the assets of the Partnership for the return
of its Capital Contributions and shall have no right or power to demand or receive property other than cash from the Partnership.

 

(b)          Except
as otherwise provided in this Agreement, no Limited Partner shall have priority over any other Partner as to the return of its
Capital Contributions, distributions, or allocations.

 

13.5         Notice
of Dissolution

 

If a Liquidating Event occurs or an event occurs
that would, but for the provisions of an election or objection by one or more Partners pursuant to Section 13.1, result in a dissolution
of the Partnership, the General Partner shall, within thirty (30) days thereafter, provide written notice thereof to each of the
Partners (including the Special Limited Partner).

 

13.6         Termination
of Partnership and Cancellation of Certificate of Limited Partnership

 

Upon the completion of the liquidation of the
Partnership’s assets, as provided in Section 13.2 hereof, the Partnership shall be terminated, a certificate of cancellation
shall be filed, and all qualifications of the Partnership as a foreign limited partnership in jurisdictions other than the state
of Delaware shall be canceled and such other actions as may be necessary to terminate the Partnership shall be taken.

 

13.7         Reasonable
Time for Winding-Up

 

A reasonable time shall be allowed for the orderly
winding-up of the business and affairs of the Partnership and the liquidation of its assets pursuant to Section 13.2 hereof in
order to minimize any losses otherwise attendant upon such winding-up, and the provisions of this Agreement shall remain in effect
among the Partners (including the Special Limited Partner) during the period of liquidation.

 

13.8         Waiver
of Partition

 

Each Partner hereby waives any right to partition
of the Partnership property.

 

Article
14

AMENDMENT OF PARTNERSHIP AGREEMENT; MEETINGS

 

14.1         Amendments

 

(a)          The
General Partner shall have the power, without the consent of the Limited Partners or the Special Limited Partner, to amend this
Agreement except as set forth in Section 14.1(b) hereof. The General Partner shall provide notice to the Limited Partners and the
Special Limited Partner when any action under this Section 14.1(a) is taken in the next regular communication to the Limited Partners.

 

    	 	68	 

     

    

 

(b)          Notwithstanding
Section 14.1(a) hereof, this Agreement shall not be amended with respect to:

 

(i)          any
Partner, including the Special Limited Partner, adversely affected without the Consent of such Partner adversely affected if such
amendment would:

 

(A)         convert
a Limited Partner’s or the Special Limited Partner’s interest in the Partnership into a General Partner Interest;

 

(B)         modify
the limited liability of a Limited Partner or the Special Limited Partner in a manner adverse to such Limited Partner or the Special
Limited Partner; or

 

(C)         amend
this Section 14.1(b)(i);

 

(ii)         any
Limited Partner adversely affected without the Consent of Limited Partners holding more than fifty percent (50%) of the outstanding
Percentage Interests of the Limited Partners adversely affected if such amendment would:

 

(A)         alter
or change Exchange Rights;

 

(B)         create
an obligation to make Capital Contributions not contemplated in this Agreement;

 

(C)         alter
or change the terms of this Agreement or the Exchange Rights Agreement regarding the rights of the limited partners with respect
to Business Combinations;

 

(D)         alter
or change the distribution and liquidation rights provided in Section 5 and 13 hereto, except as otherwise permitted under this
Agreement; or

 

(E)         amend
this Section 14.1(b)(ii).

 

(c)          Section
14.1(b)(i) does not require unanimous consent of all Partners adversely affected unless the amendment is to be effective against
all Partners adversely affected.

 

(d)          Notwithstanding
Section 14.1(a) hereof, no provision of this Agreement shall be amended or modified without the Special Limited Partner’s
prior written consent if such amendment or modification (i) relates to the distributions, allocations or other rights and privileges
of the Special Limited Partner or (ii) would amend this Section 14.1(d).

 

14.2         Meetings
of the Partners

 

(a)          (i)          Meetings
of the Partners may be called by the General Partner and shall be called upon the receipt by the General Partner of a written request
by Limited Partners holding 25 percent or more of the Partnership Interests.

 

(ii)         The
request shall state the nature of the business to be transacted.

 

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(iii)        Notice
of any such meeting shall be given to all Partners not less than seven (7) days nor more than thirty (30) days prior to the date
of such meeting.

 

(iv)        Partners
may vote in person or by proxy at such meeting.

 

(v)         Whenever
the vote or Consent of the Limited Partners is permitted or required under this Agreement, such vote or Consent may be given at
a meeting of the Partners or may be given in accordance with the procedure prescribed in Section 14.1(a).

 

(vi)        Except
as otherwise expressly provided in this Agreement, the Consent of holders of a majority of the Percentage Interests held by Partners
(including the General Partner) shall control.

 

(b)          (i)          Subject
to Section 14.2(a)(vi), any action required or permitted to be taken at a meeting of the Partners may be taken without a meeting
if a written consent setting forth the action so taken is signed by a majority of the Percentage Interests of the Partners (or
such other percentage as is expressly required by this Agreement).

 

(ii)         Such
Consent may be in one instrument or in several instruments, and shall have the same force and effect as a vote of a majority of
the Percentage Interests of the Partners (or such other percentage as is expressly required by this Agreement).

 

(iii)        Such
Consent shall be filed with the General Partner.

 

(iv)        An
action so taken shall be deemed to have been taken at a meeting held on the effective date of the Consent as certified by the General
Partner.

 

(c)          (i)          Each
Limited Partner may authorize any Person or Persons to act for him by proxy on all matters in which a Limited Partner is entitled
to participate, including waiving notice of any meeting, or voting or participating at a meeting.

 

(ii)         Every
proxy must be signed by the Partner or an attorney-in-fact and a copy thereof delivered to the Partnership.

 

(iii)        No
proxy shall be valid after the expiration of eleven (11) months from the date thereof unless otherwise provided in the proxy.

 

(iv)        Every
proxy shall be revocable at the pleasure of the Partner executing it, such revocation to be effective upon the General Partner’s
receipt of written notice of such revocation from the Partner executing such proxy.

 

(d)          (i)          Each
meeting of the Partners shall be conducted by the General Partner or such other Person as the General Partner may appoint pursuant
to such rules for the conduct of the meeting as the General Partner or such other Person deems appropriate.

 

(ii)         Meetings
of Partners may be conducted in the same manner as meetings of the Stockholders of the General Partner and may be held at the same
time, and as part of, meetings of the Stockholders of the General Partner.

 

    	 	70	 

     

    

 

Article
15

GENERAL PROVISIONS

 

		15.1	Addresses and Notice

 

Any notice, demand, request or report required
or permitted to be given or made to a Partner, the Special Limited Partner, Indemnitee or Assignee under this Agreement shall be
in writing and shall be deemed given or made when delivered in person or five days after being sent by first class United States
mail or by overnight delivery or via facsimile to the Partner or Assignee at the address set forth in Exhibit A or such
other address of which the Partner shall notify the General Partner in writing. Notwithstanding the foregoing, the General Partner
may elect to deliver any such notice, demand, request or report by e-mail or by any other electronic means, in which case such
communication shall be deemed given or made one day after being sent.

 

		15.2	Titles and Captions

 

All article or section titles or captions in
this Agreement are for convenience of reference only, shall not be deemed part of this Agreement and shall in no way define, limit,
extend or describe the scope or intent of any provisions hereof. Except as specifically provided otherwise, references to “Articles”
and “Sections” are to Articles and Sections of this Agreement.

 

		15.3	Pronouns and Plurals

 

Whenever the context may require, any pronoun
used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns, pronouns
and verbs shall include the plural and vice versa.

 

		15.4	Further Action

 

The parties shall execute and deliver all documents,
provide all information and take or refrain from taking action as may be necessary or appropriate to achieve the purposes of this
Agreement.

 

		15.5	Binding Effect

 

This Agreement shall be binding upon and inure
to the benefit of the parties hereto and their heirs, executors, administrators, successors, legal representatives and permitted
assigns.

 

		15.6	Creditors

 

Other than as expressly set forth herein with
respect to the Indemnities, none of the provisions of this Agreement shall be for the benefit of, or shall be enforceable by, any
creditor of the Partnership.

 

    	 	71	 

     

    

 

		15.7	Waiver

 

No failure by any party to insist upon the strict
performance of any covenant, duty, agreement or condition of this Agreement or to exercise any right or remedy consequent upon
a breach thereof shall constitute waiver of any such breach or any other covenant, duty, agreement or condition.

 

		15.8	Counterparts

 

This Agreement may be executed (including by
facsimile transmission) with counterpart signature pages or in counterparts, all of which together shall constitute one agreement
binding on all of the parties hereto, notwithstanding that all such parties are not signatories to the original or the same counterpart.
Each party shall become bound by this Agreement immediately upon affixing its signature hereto.

 

		15.9	Applicable Law

 

This Agreement shall be construed and enforced
in accordance with and governed by the laws of the State of Delaware, without regard to the principles of conflicts of laws thereof.

 

		15.10	Invalidity of Provisions

 

If any provision of this Agreement is or becomes
invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained
herein shall not be affected thereby.

 

		15.11	Entire Agreement

 

This Agreement contains the entire understanding
and agreement among the Partners with respect to the subject matter hereof and supersedes any other prior written or oral understandings
or agreements among them with respect thereto.

 

		15.12	Merger

 

Notwithstanding any provision of this Agreement,
the General Partner, without the consent of the Limited Partners or any other Person, may (i) merge or consolidate the Partnership
with or into any other domestic or foreign partnership, limited partnership, limited liability company, corporation or other Person
or (ii) sell all or substantially all of the assets of the Partnership and may amend this Agreement in any manner or adopt a new
limited partnership agreement for the Partnership in connection with any such transaction consistent with the provisions of this
Section 15.12.

 

		15.13	No Rights as Stockholders

 

Nothing contained in this Agreement shall be
construed as conferring upon the holders of the Partnership Units any rights whatsoever as Stockholders of the General Partner,
including any right to receive dividends or other distributions made to Stockholders or to vote or to consent or receive notice
as Stockholders in respect to any meeting of Stockholders for the election of directors of the General Partner or any other matter.

 

[SIGNATURE
PAGE FOLLOWS]

 

    	 	72	 

     

    

 

Signature Page to Agreement of Limited
Partnership of Phillips Edison Grocery Center Operating Partnership III, L.P., among the undersigned and the other parties thereto.

 

	 	GENERAL PARTNER:
	 	 
	 	Phillips Edison Grocery Center OP GP III, LLC
	 	 
	 	By:  Phillips Edison Grocery Center REIT III, Inc., its sole member
	 	 	 
	 	By:	/s/ Jeffrey S. Edison
	 	 	Jeffrey S. Edison
	 	 	Chief Executive Officer
	 	 	 
	 	INITIAL LIMITED PARTNER:
	 	 
	 	PHILLIPS EDISON GROCERY CENTER REIT III, INC.
	 	 	 
	 	By:	/s/ Jeffrey S. Edison
	 	 	Jeffrey S. Edison
	 	 	Chief Executive Officer
	 	 	 
	 	SPECIAL LIMITED PARTNER:
	 	 
	 	PECO-Griffin REIT Advisor, LLC
	 	 	 
	 	By:	Phillips Edison NTR III LLC, its managing member
	 	 	 
	 	By:	/s/ Jeffrey S. Edison
	 	 	Jeffrey S. Edison
	 	 	Chief Executive Officer

 

     

     

    

 

Corporate/Limited Liability Company Additional
Limited Partner Signature Page to Agreement of Limited Partnership of Phillips Edison Grocery Center Operating Partnership III,
L.P., among the undersigned and the other parties thereto.

 

	Dated:  ____________ __, 20___	[Name of Corporation/LLC]
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

     

     

    

 

Individual Additional Limited Partner
Signature Page to Agreement of Limited Partnership of Phillips Edison Grocery Center Operating Partnership III, L.P., among the
undersigned and the other parties thereto.

 

	Dated:  ____________ __, 20___	 
	 	 
	 	 
	 	 

 

     

     

    

 

Partnership Limited Partner Signature
Page to Agreement of Limited Partnership of Phillips Edison Grocery Center Operating Partnership III, L.P., among the undersigned
and the other parties thereto.

 

	Dated:  ____________ __, 20___	[Name of LP]
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

     

     

    

 

Exhibit A

 

Partners’ Contributions and Partnership
Interests

 

	Name and Address of Partner	 	Type of Interest	 	Type of Unit	 	Capital

Contribution	 	Number of

Partnership Units	 	Percentage

Interest
	Phillips Edison Grocery Center OP GP III, LLC	 	General Partner Interest	 	GP Units	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Phillips Edison Grocery Center REIT III Inc.	 	Limited Partner Interest	 	OP Units	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	PECO-Griffin REIT Advisor, LLC	 	Special Limited Partner Interest	 	None	 	None	 	Not applicable	 	Not applicable

 

    	 	A-1	 

     

    

 

Exhibit B

Allocations

 

For purposes of this Exhibit B, the term “Partner”
shall include the Special Limited Partner.

 

1.          Allocations.

 

(a)          Allocations
of Net Income and Net Loss. Except as otherwise provided in this Agreement, after giving effect to the special allocations
in subparagraph 1(c) and paragraph 2, Net Income, Net Loss and, to the extent necessary, individual items of income, gain, loss
or deduction, of the Partnership for each fiscal year or other applicable period of the Partnership shall be allocated among the
General Partner and Limited Partners in accordance with their respective Percentage Interests.

 

(b)          Allocations
of Net Property Gain and Net Property Loss. Except as otherwise provided in this Agreement, after giving effect to the special
allocations in subparagraph 1(c) and paragraph 2, Net Property Gain, Net Property Loss and, to the extent necessary, individual
items of income, gain, credit, loss and deduction comprising Net Property Gain and Net Property Loss of the Partnership for each
fiscal year or other applicable period shall be allocated among the Partners in a manner determined in the reasonable discretion
of the General Partner that will, as nearly as possible cause the Capital Account balance of each Partner at the end of such fiscal
year or other applicable period to equal (i) the amount of the distributions that would be made to such Partner pursuant to Section
5.1(b) of the Agreement if the Partnership were dissolved, its affairs wound up and its assets were sold for cash equal to their
Gross Asset Value, taking into account any adjustments thereto for such period, all Partnership liabilities were satisfied in full
in cash according to their terms (limited with respect to each nonrecourse liability to the Gross Asset Value of the assets securing
such liability), and Net Sales Proceeds (after satisfaction of such liabilities) were distributed in full in accordance with Section
5.1(b) to the Partners immediately after making such allocations, minus (ii) the sum of such Partner’s share of Partnership
Minimum Gain and Partner Nonrecourse Debt Minimum Gain and the amount, if any and without duplication, that the Partner would be
obligated to contribute to the capital of the Partnership, all computed immediately prior to the hypothetical sale of assets.

 

(c)          Special
Allocations.

 

(i)          General
Partner Gross Income Allocation. After giving effect to the special allocations in paragraph 2 but prior to any allocations
under subparagraphs 1(a) or 1(b), there shall be specially allocated to the General Partner an amount of (i) first, items
of Partnership income and (ii) second, items of Partnership gain during each fiscal year or other applicable period in an
amount equal to the excess, if any, of (A) the cumulative distributions made to the General Partner under Section 7.3(b) of
the Agreement, other than distributions which would properly be treated as “guaranteed payments” or which are attributable
to the reimbursement of expenses which would properly be either deductible by the Partnership or added to the tax basis of any
Partnership asset, over (B) the cumulative allocations of Partnership income and gain to the General Partner under this subparagraph
1(c)(i).

 

     

     

    

 

(ii)         Special
Allocations Regarding the Special Limited Partner Interest. After giving effect to the special allocations in subparagraphs
1(c)(i) and paragraph 2 but prior to any allocations under subparagraph 1(a) and 1(b), Net Property Gain and Liquidating Gain and,
to the extent necessary, individual items of income and gain comprising Net Property Gain and Liquidating Gain of the Partnership
shall be allocated to the Special Limited Partner until the Special Limited Partner has received aggregate allocations of income
for all fiscal years equal to the aggregate amount of distributions the Special Limited Partner is entitled to receive or has received
with respect to the Special Limited Partner Interest for such fiscal year and all prior fiscal years. Notwithstanding the foregoing,
if the Special Limited Partner is entitled to receive distributions of Net Sales Proceeds pursuant to the Partnership’s obligation
under a Termination Amount, Liquidating Gain shall be allocated to the Special Limited Partner until the Special Limited Partner
has received aggregate allocations equal to the aggregate amount of distributions the Special Limited Partner is entitled to receive
pursuant to such Termination Amount.

 

2.          Regulatory
Allocations. Notwithstanding any provisions of paragraph 1 of this Exhibit B, the following special allocations shall
be made.

 

(a)          Minimum
Gain Chargeback (Nonrecourse Liabilities). Except as otherwise provided in Section 1.704-2(f) of the Regulations, if there
is a net decrease in Partnership Minimum Gain for any Partnership fiscal year, each Partner shall be specially allocated items
of Partnership income and gain for such year (and, if necessary, subsequent years) in an amount equal to such Partner’s share
of the net decrease in Partnership Minimum Gain to the extent required by Section 1.704-2(f) of the Regulations. The items to be
so allocated shall be determined in accordance with Sections 1.704-2(f) and (i) of the Regulations. This subparagraph 2(a) is intended
to comply with the minimum gain chargeback requirement in said section of the Regulations and shall be interpreted consistently
therewith. Allocations pursuant to this subparagraph 2(a) shall be made in proportion to the respective amounts required to be
allocated to each Partner pursuant hereto.

 

(b)          Partner
Minimum Gain Chargeback. Except as otherwise provided in Section 1.704-2(i)(4) of the Regulations, if there is a net decrease
in Partner Nonrecourse Debt Minimum Gain during any fiscal year, each Partner who has a share of the Partner Nonrecourse Debt Minimum
Gain, determined in accordance with Section 1.704-2(i)(5) of the Regulations, shall be specially allocated items of Partnership
income and gain for such year (and, if necessary, subsequent years) in an amount equal to that Partner’s share of the net
decrease in the Partner Nonrecourse Debt Minimum Gain to the extent and in the manner required by Section 1.704-2(i) of the Regulations.
The items to be so allocated shall be determined in accordance with Sections 1.704-2(i)(4) and (j)(2) of the Regulations. This
subparagraph 2(b) is intended to comply with the minimum gain chargeback requirement with respect to Partner Nonrecourse Debt contained
in said section of the Regulations and shall be interpreted consistently therewith. Allocations pursuant to this subparagraph 2(b)
shall be made in proportion to the respective amounts required to be allocated to each Partner pursuant hereto.

 

     

     

    

 

(c)          Qualified
Income Offset. If a Partner unexpectedly receives any adjustments, allocations or distributions described in Sections 1.704-1(b)(2)(ii)(d)(4),
(5) or (6) of the Regulations, and such Partner has an Adjusted Capital Account Deficit, items of Partnership income (including
gross income) and gain shall be specially allocated to such Partner in an amount and manner sufficient to eliminate the Adjusted
Capital Account Deficit as quickly as possible as required by the Regulations. This subparagraph 2(c) is intended to constitute
a “qualified income offset” under Section 1.704-1(b)(2)(ii)(d) of the Regulations and shall be interpreted consistently
therewith.

 

(d)          Nonrecourse
Deductions. Nonrecourse Deductions for any fiscal year or other applicable period shall be allocated to the Partners in accordance
with their respective Percentage Interests.

 

(e)          Partner
Nonrecourse Deductions. Partner Nonrecourse Deductions for any fiscal year or other applicable period with respect to a Partner
Nonrecourse Debt shall be specially allocated to the Partner that bears the economic risk of loss for such Partner Nonrecourse
Debt (as determined under Sections 1.704-2(b)(4) and 1.704-2(i)(1) of the Regulations).

 

(f)          Section
754 Adjustment. To the extent an adjustment to the adjusted tax basis of any asset of the Partnership pursuant to Section 734(b)
of the Code or Section 743(b) of the Code is required, pursuant to Section 1.704-1(b)(2)(iv)(m) of the Regulations, to be taken
into account in determining Capital Accounts, the amount of such adjustment to the Capital Accounts shall be treated as an item
of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases such basis) and such gain or
loss shall be specially allocated among the Partners in a manner consistent with the manner in which each of their respective Capital
Accounts are required to be adjusted pursuant to such section of the Regulations.

 

(g)          Gross
Income Allocation. If any Partner has an Adjusted Capital Account Deficit at the end of any fiscal year or other applicable
period which is in excess of the amount such Partner is obligated to restore pursuant to the penultimate sentences of Sections
1.704-2(g)(1) and 1.704-2(i)(5) of the Regulations, such Partner shall be specially allocated items of Partnership income (including
gross income) and gain in the amount of such excess as quickly as possible, provided that an allocation pursuant to this subparagraph
2(g) shall be made if and only to the extent that such Partner would have an Adjusted Capital Account Deficit in excess of such
amount after all other allocations provided for under this Agreement have been tentatively made as if subparagraph 2(c) and this
subparagraph 2(g) were not in this Agreement.

 

     

     

    

 

3.          Curative
Allocations. The General Partner is authorized to offset all Regulatory Allocations either with other Regulatory Allocations
or with special allocations of other items of Partnership income, gain, loss, or deduction pursuant to this paragraph 3. Therefore,
notwithstanding any other provision of this Exhibit B (other than the Regulatory Allocations and Tax Allocations), the General
Partner shall make such offsetting allocations of Partnership income, gain, loss or deduction in whatever manner the General
Partner determines appropriate so that, after such offsetting allocations are made, each Partner’s Capital Account balance
is, to the extent possible, equal to the Capital Account balance such Partner would have had if the Regulatory Allocations were
not part of this Agreement.

 

4.          Tax
Allocations.

 

(a)          Items
of Income or Loss. Except as is otherwise provided in this Exhibit B, an allocation of Partnership Net Income, Net Loss,
Net Property Gain, Net Property Loss or Liquidating Gain to a Partner shall be treated as an allocation to such Partner of the
same share of each item of income, gain, loss, deduction and item of tax-exempt income or Section 705(a)(2)(B) expenditure (or
item treated as such expenditure pursuant to Section 1.704-1(b)(2)(iv)(i) of the Regulations) that is taken into account in computing
Net Income, Net Loss, Net Property Gain, Net Property Loss or Liquidating Gain. Except as otherwise provided in this paragraph
4, items of income, gain, loss and deduction of the Partnership to be allocated for income tax purposes (“Tax Items”)
shall be allocated among the Partners on the same basis as the corresponding book items are allocated under paragraphs 1 through
3 of this Exhibit B.

 

(b)          Section
1245/1250 Recapture. Subject to subparagraph 4(c) below, if any portion of gain from the sale of Partnership assets is treated
as gain which is ordinary income by virtue of the application of Sections 1245 or 1250 of the Code or is gain described in Section
1(h)(1)(D) of the Code (“Affected Gain”), then such Affected Gain shall be allocated among the Partners in the
same proportion that the depreciation and amortization deductions giving rise to the Affected Gain were allocated. This subparagraph
4(b) shall not alter the amount of Net Income, Net Property Gain or Liquidating Gain (or items thereof) allocated among the Partners,
but merely the character of such Net Income, Net Property Gain or Liquidating Gain (or items thereof). For purposes hereof, in
order to determine the proportionate allocations of depreciation and amortization deductions for each fiscal year or other applicable
period, such deductions shall be deemed allocated on the same basis as Net Income, Net Loss, Net Property Gain, Net Property Loss
and Liquidating Gain for such respective period.

 

(c)          Precontribution
Gain, Revaluations. With respect to any Contributed Property, the Partnership shall use any permissible method contained in
the Regulations promulgated under Section 704(c) of the Code selected by the General Partner, in its sole discretion, to take into
account any variation between the adjusted basis of such asset and the fair market value of such asset as of the time of the contribution
(“Precontribution Gain”). Each Partner hereby agrees to report income, gain, loss and deduction on such Partner’s
federal income tax return in a manner consistent with the method used by the Partnership. If any asset has a Gross Asset Value
which is different from the Partnership’s adjusted basis for such asset for federal income tax purposes because the Partnership
has revalued such asset pursuant to Section 1.704-1(b)(2)(iv)(f) of the Regulations, the allocations of Tax Items shall be made
in accordance with the principles of Section 704(c) of the Code and the Regulations and the methods of allocation promulgated thereunder.
The intent of this subparagraph 4(c) is that each Partner who contributed to the capital of the Partnership a Contributed Property
will bear, through reduced allocations of depreciation, increased allocations of gain or other items, the tax detriments associated
with any Precontribution Gain. This subparagraph 4(c) is to be interpreted consistently with such intent.

 

     

     

    

 

(d)          Excess
Nonrecourse Liability Safe Harbor. Pursuant to Section 1.752-3(a)(3) of the Regulations, solely for purposes of determining
each Partner’s proportionate share of the “excess nonrecourse liabilities” of the Partnership (as defined in
Section 1.752-3(a)(3) of the Regulations), the Partners’ respective interests in Partnership profits shall be determined
under any permissible method reasonably determined by the General Partner; provided, however, that each Partner who has contributed
an asset to the Partnership shall be allocated, to the extent possible, a share of “excess nonrecourse liabilities”
of the Partnership which results in such Partner being allocated nonrecourse liabilities in an amount which is at least equal to
the amount of income pursuant to Section 704(c) of the Code and the Regulations promulgated thereunder (the “Liability Shortfall”).
If there is an insufficient amount of nonrecourse liabilities to allocate to each Partner an amount of nonrecourse liabilities
equal to the Liability Shortfall, then an amount of nonrecourse liabilities in proportion to, and to the extent of, the Liability
Shortfall shall be allocated to each Partner.

 

(e)          References
to Regulations. Any reference in this Exhibit B or the Agreement to a provision of proposed and/or temporary Regulations
shall, if such provision is modified or renumbered, be deemed to refer to the successor provision as so modified or renumbered,
but only to the extent such successor provision applies to the Partnership under the effective date rules applicable to such successor
provision.)

 

(f)          Successor
Partners. For purposes of this Exhibit B, a transferee of a Partnership Interest shall be deemed to have been allocated
the Net Income, Net Loss, Net Property Gain, Net Property Loss and other items of Partnership income, gain, loss, deduction and
credit allocable to the transferred Partnership Interest that previously have been allocated to the transferor Partner pursuant
to this Agreement.

 

     

     

    

 

Exhibit C

 

Certificate of Limited PartnershipExhibit 10.1

 

ADVISORY AGREEMENT

 

BY AND AMONG

 

PHILLIPS EDISON GROCERY CENTER REIT III,
INC.,

 

PHILLIPS EDISON GROCERY CENTER OPERATING
PARTNERSHIP III, L.P.

 

AND

 

PECO-GRIFFIN REIT ADVISOR, LLC

 

Dated October 5, 2016

 

     

     

    

  

TABLE OF CONTENTS

 

	 	 	PAGE
	 	 	 
	ARTICLE  I	DEFINITIONS	1
	 	 	 
	ARTICLE  II	APPOINTMENT	7
	 	 	 
	ARTICLE  III	AUTHORITY OF THE ADVISOR	7
	Section 3.1	General	7
	Section 3.2	Powers of the Advisor	7
	Section 3.3	Approval by Directors	7
	Section 3.4	Modification or Revocation of Authority of Advisor	7
	 	 	 
	ARTICLE  IV	DUTIES OF THE ADVISOR	7
	Section 4.1	Organizational and Offering Services	8
	Section 4.2	Acquisition Services	8
	Section 4.3	Asset Management Services and Administrative Services	9
	 	 	 
	ARTICLE  V	BANK ACCOUNTS	11
	 	 	 
	ARTICLE  VI	RECORDS; ACCESS	11
	 	 	 
	ARTICLE  VII	OTHER ACTIVITIES OF THE ADVISOR	11
	Section 7.1	General.	11
	Section 7.2	Policy with Respect to Allocation of Investment Opportunities	12
	 	 	 
	ARTICLE  VIII	LIMITATIONS ON ACTIVITIES	12
	 	 	 
	ARTICLE  IX	FEES	12
	Section 9.1	Acquisition Fees	12
	Section 9.2	Asset Management Fee	13
	Section 9.3	Disposition Fees	13
	 	 	 
	ARTICLE  X	EXPENSES	13
	Section 10.1	Reimbursable Expenses	13
	Section 10.2	Other Services	15
	Section 10.3	Timing of and Limitations on Reimbursements	15
	 	 	 
	ARTICLE  XI	NO PARTNERSHIP OR JOINT VENTURE	15
	Section 11.1	Relationship	15
	Section 11.2	Time Commitment	16
	 	 	 
	ARTICLE  XII	RELATIONSHIP WITH DIRECTORS	16
	 	 	 
	ARTICLE  XIII	REPRESENTATIONS AND WARRANTIES	16
	Section 13.1	The Company	16
	Section 13.2	The Operating Partnership	16
	Section 13.3	The Advisor	17

 

    i 

     

    

 

	ARTICLE  XIV	TERM; TERMINATION OF AGREEMENT	18
	Section 14.1	Term	18
	Section 14.2	Termination by Any Party	18
	Section 14.3	Termination by the Advisor	18
	Section 14.4	Termination by the Company	18
	Section 14.5	Survival	18
	 	 	 
	ARTICLE  XV	PAYMENTS TO AND DUTIES OF PARTIES UPON TERMINATION	18
	Section 15.1	Reimbursable Expenses and Earned Fees	18
	Section 15.2	Advisor’s Duties Upon Termination	18
	Section 15.3	Non-Solicitation	19
	 	 	 
	ARTICLE  XVI	ASSIGNMENT TO AN AFFILIATE	19
	 	 	 
	ARTICLE  XVII	INCORPORATION OF THE CHARTER AND THE OPERATING PARTNERSHIP AGREEMENT	19
	 	 	 
	ARTICLE  XVIII	 INDEMNIFICATION BY THE COMPANY AND THE OPERATING PARTNERSHIP	20
	 	 	 
	ARTICLE  XIX	INDEMNIFICATION BY ADVISOR	21
	 	 	 
	ARTICLE XX	LIMITATION OF LIABILITY	21
	 	 	 
	ARTICLE XXI	NOTICES	21
	 	 	 
	ARTICLE  XXII	MODIFICATION	22
	 	 	 
	ARTICLE  XXIII	 SEVERABILITY	22
	 	 	 
	ARTICLE XXIV	CONSTRUCTION/GOVERNING LAW	22
	 	 	 
	ARTICLE  XXV	ENTIRE AGREEMENT	22
	 	 	 
	ARTICLE  XXVI	INDULGENCES, NOT WAIVERS	22
	 	 	 
	ARTICLE XXVII	GENDER	23
	 	 	 
	ARTICLE XXVIII	TITLES NOT TO AFFECT INTERPRETATION	23
	 	 	 
	ARTICLE XXIX	EXECUTION IN COUNTERPARTS	23
	 	 	 
	ARTICLE XXX	RIGHTS OF THE ADVISOR AND ITS AFFILIATES	23

 

    ii 

     

    

  

ADVISORY AGREEMENT

 

THIS ADVISORY AGREEMENT,
dated as of October 5, 2016, is entered into among PHILLIPS EDISON GROCERY CENTER REIT III, INC., a Maryland corporation (the “Company”),
PHILLIPS EDISON GROCERY CENTER OPERATING PARTNERSHIP III, L.P., a Delaware limited partnership (the “Operating Partnership”)
and PECO-GRIFFIN REIT ADVISOR, LLC, a Delaware limited liability company (the “Advisor”).

 

WITNESSETH

 

WHEREAS, the Company intends
to raise capital pursuant to the issuance of Class A Shares of Common Stock $0.01 par value per share (the “Class A Shares”)
in a private offering pursuant to a Confidential Private Placement Memorandum (the “Memorandum”);

 

WHEREAS, the Company intends
to qualify as a REIT, and to invest its funds in investments permitted by the terms of the Company’s charter and Sections
856 through 860 of the Code;

 

WHEREAS, the Company is
the general partner of the Operating Partnership;

 

WHEREAS, the Company and
the Operating Partnership desire to avail themselves of the experience, sources of information, advice, assistance and certain
facilities available to the Advisor and its Affiliates and to have the Advisor undertake the duties and responsibilities hereinafter
set forth, on behalf of, and subject to the supervision of the Board of Directors of the Company, all as provided herein; and

 

WHEREAS, the Advisor is
willing to undertake to render such services, subject to the supervision of the Board of Directors, on the terms and conditions
hereinafter set forth.

 

NOW, THEREFORE, in consideration
of the foregoing and of the mutual covenants and agreements contained herein, the parties hereto agree as follows:

 

Article I

DEFINITIONS

 

As used in this Advisory
Agreement, the following terms have the definitions hereinafter indicated:

 

“Acquisition Expenses”
means expenses incurred by the Company, the Operating Partnership, the Advisor or any of their affiliates in connection with the
sourcing, selection, evaluation and acquisition of, and investment in, Properties, whether or not acquired or made, including but
not limited to legal, tax and due diligence fees and expenses (whether performed by a third party or internally by the Advisor
or any of its Affiliates), travel, travel related expenses, communications expenses, costs of financial analysis, appraisals and
surveys, nonrefundable option payments on Property not acquired, accounting fees and expenses (whether performed by a third party
or internally by the Advisor or any of its Affiliates), computer use-related expenses, architectural and engineering reports, environmental
reports, title insurance and escrow fees, third party brokerage fees and expenses, and personnel and other direct expenses related
to the selection and acquisition of Properties 

 

    	 	1	 

     

    

 

“Acquisition Fee”
means any and all fees and commissions, exclusive of Acquisition Expenses, paid by any Person to any other Person (including any
fees or commissions paid by or to any Affiliate of the Company or the Advisor) in connection with the making or investing in mortgage
loans or the purchase, development or construction of a Property, including, without limitation, real estate commissions, acquisition
fees, finder’s fees, selection fees, Development Fees and Construction Fees (except as provided in the following sentence),
nonrecurring management fees, consulting fees, loan fees, points, or any other fees or commissions of a similar nature. Excluded
shall be any commissions or fees incurred in connection with the leasing of any Property, and Development Fees or Construction
Fees paid to any Person or entity not affiliated with the Advisor in connection with the actual development and construction of
any Property. This fee is paid to the Advisor pursuant to Section 9.1 hereof.

 

“Advisor” means
the Person responsible for directing or performing the day-to-day business affairs of the Company and the Operating Partnership,
including a Person to which an Advisor subcontracts substantially all such functions. The Advisor is PECO-Griffin REIT Advisor,
LLC or any Person which succeeds it in such capacity.

 

“Advisory Agreement”
means this Advisory Agreement among the Company, the Operating Partnership and the Advisor pursuant to which the Advisor will direct
or perform the day-to-day business affairs of the Company and the Operating Partnership, as it may be further amended or restated
from time to time.

 

“Affiliate” or
“Affiliated” means, as to any individual, corporation, partnership, trust, limited liability company or other legal
entity (other than the Company): (a) any Person or entity, directly or indirectly owning, controlling, or holding with power to
vote ten percent (10%) or more of the outstanding voting securities of another Person or entity; (b) any Person ten percent (10%)
or more of whose outstanding voting securities are directly or indirectly owned, controlled or held, with power to vote, by such
other Person; (c) any Person or entity directly or indirectly through one or more intermediaries controlling, controlled by, or
under common control with another Person or entity; (d) any officer, director, general partner or trustee of such Person or entity;
and (e) if such other Person or entity is an officer, director, general partner, or trustee of a Person or entity, the Person or
entity for which such Person or entity acts in any such capacity. An entity shall not be deemed to control or be under common control
with an Advisor-sponsored program unless (i) the entity owns 10% or more of the voting equity interests of such program, or (ii)
a majority of the board of directors (or equivalent governing body) of such program is composed of Affiliates of the entity.

 

“Assets” means
any and all GAAP assets including but not limited to all real estate investments (real, personal or otherwise), tangible or intangible,
owned or held by, or for the account of, the Company or the Operating Partnership, whether directly or indirectly through another
entity or entities, including Properties.

 

“Asset Management Fee”
means the monthly fee paid to the Advisor pursuant to Section 9.2 hereof.

 

“Average Invested Assets”
means, for a specified period, the average of the aggregate GAAP basis book carrying values of the Assets invested, directly or
indirectly, in equity interests in and loans secured, directly or indirectly, by real estate before reserves for depreciation or
bad debts or other similar non-cash reserves, computed by taking the average of such values at the end of each month during such
period.

 

“Board of Directors”
or “Board” means the individuals holding such office, as of any particular time, under the Charter of the Company,
whether they are the Directors named therein or additional or successor Directors.

 

    	 	2	 

     

    

  

“Bylaws” means
the bylaws of the Company, as the same may be amended from time to time.

 

“Charter” means
the charter of the Company, including the articles of incorporation and all articles of amendment, articles of amendment and restatement,
articles supplementary and other modifications thereto as filed with the State Department of Assessments and Taxation of the State
of Maryland.

 

“Class A Share”
has the meaning set forth in the Recitals hereof.

 

“Code” means
the Internal Revenue Code of 1986, as amended from time to time, or any successor statute thereto. Reference to any provision of
the Code shall mean such provision as in effect from time to time, as the same may be amended, and any successor provision thereto,
as interpreted by any applicable regulations as in effect from time to time.

 

“Common Stock”
means the Company’s common stock, including the Class A Shares, the terms and conditions of which are set forth in the Charter.

 

“Company” means
Phillips Edison Grocery Center REIT III, Inc., a corporation organized under the laws of the State of Maryland.

 

“Competitive Real Estate
Commission” means a real estate or brokerage commission paid (or, if no commission is paid, the amount that customarily would
be paid) for the purchase or sale of a Property that is reasonable, customary and competitive in light of the size, type and location
of the Property.

 

“Construction Fee”
means a fee or other remuneration for acting as general contractor and/or construction manager to construct, supervise or coordinate
leasehold or other improvements or projects, or to provide major repairs or rehabilitation for a Property.

 

“Contract Purchase
Price” means the amount actually paid or allocated in respect of the purchase, development, construction, or improvement
of a Property, inclusive of the amount of any debt associated with, or used to fund the investment in, such Property, but exclusive
of Acquisition Fees and Acquisition Expenses.

 

“Contract Sales Price” means the total
consideration provided for in the sales contract for the sale of a Property.

 

“Cost of Assets”
means, with respect to a Property, the purchase price, Acquisition Expenses, capital expenditures and other customarily capitalized
costs, but shall exclude Acquisition Fees associated with such Property.

 

“Dealer Manager”
means Griffin Capital Securities, LLC, an Affiliate of the Advisor, or such other Person or entity selected by the Board of Directors
to act as the dealer manager for the offering of the Stock. Griffin Capital Securities, LLC is a member of the Financial Industry
Regulatory Authority.

 

“Development Fee”
means a fee for the packaging of a Property, including negotiating and approving plans, and undertaking to assist in obtaining
zoning and necessary variances and financing for the specific Property, either initially or at a later date.

 

“Director” means
an individual who is a member of the Board of Directors.

 

    	 	3	 

     

    

  

“Disposition Fee”
means the fee paid to the Advisor pursuant to Section 9.3 hereof.

 

“Distributions”
means any dividends or other distributions of money or other property paid by the Company to the holders of Common Stock or preferred
stock, including dividends that may constitute a return of capital for federal income tax purposes.

 

“Excess Amount”
has the meaning set forth in Section 10.3(b) hereof.

 

“Excess Expense Guidelines”
has the meaning set forth in Section 10.3(b) hereof.

 

“Expense Year”
has the meaning set forth in Section 10.3(b) hereof.

 

“GAAP” means
generally accepted accounting principles consistently applied as used in the United States.

 

“Independent Director”
has the meaning set forth in the Charter.

 

“Joint Venture”
or “Joint Ventures” means those joint venture or general partnership arrangements in which the Company or the Operating
Partnership is a co-venturer or general partner which are established to acquire Properties.

 

“NASAA” means
the North American Securities Administrators Association, Inc.

 

“NASAA Net Income”
means for any period, the total revenues applicable to such period, less the total expenses applicable to such period excluding
additions to reserves for depreciation, bad debts or other similar non-cash reserves; provided, however, NASAA Net
Income for purposes of calculating total allowable Operating Expenses shall exclude the gain from the sale of the Company’s
or the Operating Partnership’s Assets.

 

“NASAA REIT Guidelines”
means the Statement of Policy Regarding Real Estate Investment Trusts published by the North American Securities Administrators
Association, Inc. as revised and adopted by the NASAA membership on May 7, 2007, and as in effect on the date hereof.

 

“Offering” means
an offering of Stock pursuant to the Memorandum.

 

“Operating Expenses”
means all direct and indirect costs and expenses incurred by the Company, as determined under GAAP, which in any way are related
to the operation of the Company or to Company business, including advisory fees, but excluding (a) the expenses of raising capital
such as Organizational and Offering Expenses, legal, audit, accounting, underwriting, brokerage, listing, registration, and other
fees, printing and other such expenses and taxes incurred in connection with the issuance, distribution, transfer, registration
and listing of the Stock on a national securities exchange, (b) interest payments, (c) taxes, (d) non-cash expenditures such as
depreciation, amortization and bad debt reserves, (e) Acquisition Fees and Acquisition Expenses, (f) real estate commissions on
the Sale of Property, and other expenses connected with the acquisition and ownership of real estate interests, mortgage loans,
or other property (such as the costs of foreclosure, insurance premiums, legal services, maintenance, repair, and improvement of
property) and (g) any incentive fees which may be paid in compliance with the NASAA REIT Guidelines. The definition of “Operating
Expenses” set forth above is intended to encompass only those expenses which are required to be treated as Operating Expenses
under the NASAA REIT Guidelines. As a result, and notwithstanding the definition set forth above, any expense of the Company which
is not an Operating Expense under the NASAA REIT Guidelines shall not be treated as an Operating Expense for purposes hereof.

 

    	 	4	 

     

    

 

“Operating Partnership”
means Phillips Edison Grocery Center Operating Partnership III, L.P., a Delaware limited partnership.

 

“Operating Partnership
Agreement” means the Limited Partnership Agreement of the Operating Partnership, as amended and restated from time to time.

 

“OP Unit” means
a unit of limited partnership interest in the Operating Partnership.

 

“Organizational and
Offering Expenses” means any and all costs and expenses incurred by the Company, the Advisor or any Affiliate of either in
connection with and in preparing the Company for the offering and distributing its Stock, including any registration thereof, whether
performed by a third party or internally by the Advisor or its Affiliates, which may include, but are not limited to, (a) total
underwriting and brokerage discounts and commissions (including fees of the underwriters’ attorneys), (b) legal, tax, accounting
and escrow fees, (c) expenses for printing, engraving, amending, supplementing and mailing, (d) distribution costs, (e) compensation
to employees while engaged in registering, marketing and wholesaling the Stock or providing administrative services relating thereto,
(f) telegraph and telephone costs, (g) all advertising and marketing expenses (including the costs related to investor and broker-dealer
sales meetings), (h) charges of transfer agents, registrars, trustees, escrow holders, depositories, experts, (i) fees, expenses
and taxes related to the filing, registration and qualification of the sale of the Securities under Federal and State laws, including
accountants’ and attorneys’ fees and other accountable offering expenses, (j) amounts to reimburse the Advisor for
all marketing related costs and expenses such as compensation to and direct expenses of the Advisor’s employees or employees
of the Advisor’s Affiliates in connection with registering and marketing the Stock, (k) travel and entertainment expenses
related to the offering and marketing of the Stock, (l) facilities and technology costs and other costs and expenses associated
with the offering and ownership of the Stock and to facilitate the marketing of the Stock including web site design and management,
(m) costs and expenses of conducting training and educational conferences and seminars, (n) costs and expenses of attending broker-dealer
sponsored retail seminars or conferences, and (o) payment or reimbursement of bona fide due diligence expenses, including compensation
to employees while engaged in the provision or support of bona fide due diligence services.

 

“Person” shall
mean any natural person, partnership, corporation, association, trust, limited liability company or other legal entity.

 

“Property” or
“Properties” means the real properties or real estate investments or any other asset (including any investments in
mortgage loans and other types of real estate related debt financing, including, mezzanine loans, bridge loans, convertible mortgages,
wraparound mortgage loans, construction mortgage loans, loans on leasehold interests and participations in such loans), which are
acquired by the Company either directly or through the Operating Partnership, any subsidiaries, Joint Ventures, partnerships or
other entities.

 

“Property Manager”
means any entity that has been retained to perform and carry out at one or more of the Properties property management services.

 

“REIT” means
a corporation, trust or association which is engaged in investing in equity interests in real estate (including fee ownership and
leasehold interests and interests in partnerships and Joint Ventures holding real estate) or in loans secured by mortgages on real
estate or both and that qualifies as a real estate investment trust under the REIT Provisions of the Code.

 

    	 	5	 

     

    

  

“REIT
Provisions of the Code” means Sections 856 through 860 of the Code and any successor or other provisions of the Code relating
to real estate investment trusts (including provisions as to the attribution of ownership of beneficial interests therein) and
the regulations promulgated thereunder.

 

“Sale” or “Sales”
means any transaction or series of transactions whereby: (a) the Operating Partnership sells, grants, transfers, conveys or relinquishes
its ownership of any Property or portion thereof, including the lease of any Property consisting of the building only, and including
any event with respect to any Property which gives rise to a significant amount of insurance proceeds or condemnation awards; (b)
the Operating Partnership sells, grants, transfers, conveys or relinquishes its ownership of all or substantially all of the interest
of the Operating Partnership in any Joint Venture in which it is a co-venturer or partner; (c) any Joint Venture in which the Operating
Partnership is a co-venturer or partner sells, grants, transfers, conveys or relinquishes its ownership of any Property or portion
thereof, including any event with respect to any Property which gives rise to insurance claims or condemnation awards; (d) the
Operating Partnership sells, grants, conveys, or relinquishes its interest in any asset, or portion thereof, including any event
with respect to any asset which gives rise to a significant amount of insurance proceeds or similar awards; or (e) the Operating
Partnership sells or otherwise disposes of or distributes all of its assets in liquidation of the Operating Partnership.

 

“Sales Commissions”
means any and all commissions payable to underwriters, dealer managers or other broker-dealers in connection with the sale of Stock,
including, without limitation, commissions payable to the Dealer Manager.

 

“Securities”
means any class or series of units or shares of the Company or the Operating Partnership, including common shares or preferred
units or shares and any other evidences of equity or beneficial or other interests, voting trust certificates, bonds, debentures,
notes or other evidences of indebtedness, secured or unsecured, convertible, subordinated or otherwise, or in general any instruments
commonly known as “Securities” or any certificates of interest, shares or participations in, temporary or interim certificates
for, receipts for, guarantees of, or warrants, options or rights to subscribe to, purchase or acquire, any of the foregoing.

 

“Securities Act”
means the Securities Act of 1933, as amended.

 

“Sponsor” means
each of Phillips Edison Limited Partnership, a Delaware limited partnership, and Griffin Capital Corporation, a California corporation.

 

“Stock” means
shares of stock of the Company of any class or series, including Common Stock, preferred stock or shares-in-trust.

 

“Stockholders”
means the registered holders of the Company’s Stock.

 

“Termination Date”
means the date of termination of this Advisory Agreement.

 

    	 	6	 

     

    

 

Article II

APPOINTMENT

 

The
Company, through the powers vested in the Board of Directors, and the Operating Partnership hereby appoint the Advisor to serve
as its advisor and asset manager on the terms and conditions set forth in this Advisory Agreement, and the Advisor hereby accepts
such appointment. 

 

Article III

AUTHORITY OF THE ADVISOR

 

Section
3.1           General. All rights and powers to manage
and control the day-to-day business and affairs of the Company and the Operating Partnership and their subsidiaries shall be vested
in the Advisor. The Advisor shall have the power to delegate all or any part of its rights and powers to manage and control the
business and affairs of the Company and the Operating Partnership and their subsidiaries to such officers, employees, Affiliates,
agents and representatives of the Advisor, the Company or the Operating Partnership as it may from time to time deem appropriate.
Any authority delegated by the Advisor to any other Person shall be subject to the limitations on the rights and powers of the
Advisor specifically set forth in this Advisory Agreement, the Charter, the Bylaws and the Operating Partnership Agreement.

 

Section
3.2           Powers of the Advisor. Subject to
the express limitations set forth in this Advisory Agreement and subject to the supervision of the Board, the power to direct the
management, operation and policies of the Company and the Operating Partnership and their subsidiaries shall be vested in the Advisor,
which shall have the power by itself and shall be authorized and empowered on behalf and in the name of the Company and the Operating
Partnership and their subsidiaries, as applicable, to carry out any and all of the objectives and purposes of the Company and the
Operating Partnership and their subsidiaries and to perform all acts and enter into and perform all contracts and other undertakings
that it may in its sole discretion deem necessary, advisable or incidental thereto to perform its obligations under this Advisory
Agreement.

 

Section
3.3           Approval by Directors. Notwithstanding
the foregoing, any investment in Properties, including any acquisition of a Property by the Company or the Operating Partnership
or any of their subsidiaries or any investment by the Company or the Operating Partnership or any of their subsidiaries in a Joint
Venture, limited partnership or similar entity owning real properties, will require the prior approval of the Board of Directors
or a committee of the Board constituting a majority of the Board. The Advisor will deliver to the Board of Directors all documents
reasonably required by it to properly evaluate the proposed investment.

 

Section
3.4           Modification or Revocation of Authority of
Advisor.  The Board may, at any time upon the giving of notice to the Advisor, modify or revoke the authority or approvals
set forth in Articles III and IV, provided, however, that such modification or revocation shall be effective upon
receipt by the Advisor and shall not be applicable to investment transactions to which the Advisor has committed the Company or
the Operating Partnership or any of their subsidiaries prior to the date of receipt by the Advisor of such notification.

 

Article IV

DUTIES OF THE ADVISOR

 

The Advisor undertakes
to use its commercially reasonable best efforts to present to the Company and the Operating Partnership potential investment opportunities
and to provide a continuing and suitable investment program consistent with the investment objectives and policies of the Company
as determined and adopted from time to time by the Board. The Advisor agrees to devote sufficient resources to the administration
of the Company and the Operating Partnership to discharge its obligations hereunder. In connection therewith, and subject to the
restrictions included in Sections 3.3, 3.4 and 13.3(c) hereof and to the continuing authority of the Board, the Advisor agrees
to, either directly or by engaging a duly qualified Affiliate of the Advisor or other duly qualified Person, perform the following
services on behalf of the Company and the Operating Partnership.

 

    	 	7	 

     

    

 

 

Section
4.1           Organizational and Offering Services.
The Advisor shall manage and supervise:

 

(a)          the
structure and development of any offering, including the determination of the specific terms of the Securities to be offered by
the Company;

 

(b)          the
preparation of all organizational and offering related documents, and obtaining of all required regulatory approvals of such documents,
if any;

 

(c)          approval
of participating broker dealers selected by the Dealer Manager and the negotiation of the related selling agreements;

 

(d)          coordination
of the due diligence process relating to participating broker dealers and their review of the Memorandum and other offering and
Company documents;

 

(e)          preparation
and approval of all marketing materials contemplated to be used by the Dealer Manager or others in an offering;

 

(f)          along
with the Dealer Manager, negotiation of any necessary escrow agreement and/or transfer agent agreement and coordination with the
Dealer Manager and the transfer agent for the receipt, collection, processing and acceptance of subscription agreements, commissions,
and other administrative support functions;

 

(g)          creation
and implementation of various technology and electronic communications related to an offering; and

 

(h)          all
other services related to organization of the Company or an offering.

 

Section
4.2           Acquisition Services. The Advisor
shall:

 

(a)          serve
as the Company’s and the Operating Partnership’s investment and financial advisor and, as requested by the Board, provide
relevant market research and economic and statistical data in connection with the Company’s assets and investment objectives
and policies;

 

(b)          subject
to Article III hereof and the investment objectives and policies of the Company: (i) locate, analyze and select potential
investments; (ii) structure and negotiate the terms and conditions of transactions pursuant to which investments in Assets
will be made; (iii) acquire Assets on behalf of the Company and the Operating Partnership; and (iv) arrange for financing
and refinancing related to acquisitions of Assets;

 

(c)          perform
due diligence on prospective investments and create due diligence reports summarizing the results of such work;

 

(d)          prepare
reports regarding prospective investments which include recommendations and supporting documentation necessary for the Board to
evaluate the proposed investments;

 

    	 	8	 

     

    

  

(e)          deliver
to or maintain on behalf of the Company copies of all appraisals obtained in connection with the Company’s and the Operating
Partnership’s investments;

 

(f)          obtain
reports (which may be prepared by the Advisor or its Affiliates), where appropriate, concerning the value of contemplated investments
of the Company and the Operating Partnership and their subsidiaries; and

 

(g)          negotiate
and execute investments and other transactions as authorized and approved by the Board.

 

Section
4.3           Asset Management Services and Administrative
Services.

 

(a)          Asset
Management and Property Related Services. The Advisor shall:

 

(i)          negotiate
and service the Company’s and the Operating Partnership’s and their subsidiaries’ debt facilities and other financings;

 

(ii)         monitor
applicable markets and obtain reports (which may be prepared by the Advisor or its Affiliates) where appropriate, concerning the
value of investments of the Company and the Operating Partnership and their subsidiaries;

 

(iii)        monitor
and evaluate the performance of investments of the Company and the Operating Partnership and their subsidiaries; provide daily
management services to the Company and perform and supervise the various management and operational functions related to the Company’s
and the Operating Partnership’s and their subsidiaries’ investments;

 

(iv)        coordinate
with the Property Manager on its duties under any property management agreement and assist in obtaining all necessary approvals
of major property transactions as governed by the applicable property management agreement;

 

(v)         select
Joint Venture partners, structure corresponding agreements and oversee and manage relationships between the Company and the Operating
Partnership and any of their subsidiaries with any Joint Venture partners;

 

(vi)        consult
with the officers and Directors of the Company and provide assistance with the evaluation and approval of potential property dispositions,
sales or refinancings; and

 

(vii)       provide
the officers and Directors of the Company periodic reports regarding prospective investments in Properties.

 

(b)          Accounting,
Regulatory and Other Administrative Services. The Advisor shall:

 

(i)          maintain
accounting systems, records and data and any other information requested concerning the activities of the Company and the Operating
Partnership and their subsidiaries as shall be required to prepare and to file all periodic financial reports and returns required
to be filed with any regulatory agency;

 

(ii)         provide
tax and compliance services and coordinate with appropriate third parties, including independent accountants and other consultants,
on related tax matters;

 

(iii)        maintain
all appropriate books and records of the Company and the Operating Partnership and their subsidiaries;

 

    	 	9	 

     

    

  

(iv)        provide
the officers of the Company and the Board with timely updates related to the overall regulatory environment affecting the Company,
as well as managing compliance with such matters;

 

(v)         consult
with the officers of the Company and the Board relating to the corporate governance structure and appropriate policies and procedures
related thereto;

 

(vi)        perform
all reporting, record keeping, internal controls and similar matters in a manner to allow the Company to comply with applicable
law;

 

(vii)       investigate,
select, and, on behalf of the Company and the Operating Partnership and their subsidiaries, engage and conduct business with such
Persons as the Advisor deems necessary to the proper performance of its obligations hereunder, including but not limited to consultants,
accountants, lenders, technical advisors, attorneys, brokers, underwriters, corporate fiduciaries, escrow agents, depositaries,
custodians, agents for collection, insurers, insurance agents, banks, builders, developers, property owners, mortgagers, construction
companies and any and all Persons acting in any other capacity deemed by the Advisor necessary or desirable for the performance
of any of the foregoing services;

 

(viii)      supervise
the performance of such ministerial and administrative functions as may be necessary in connection with the daily operations of
the Assets;

 

(ix)         provide
the Company and the Operating Partnership and their subsidiaries with all necessary cash management services;

 

(x)          consult
with the officers of the Company and the Board and assist the Board in evaluating and obtaining adequate insurance coverage based
upon risk management determinations;

 

(xi)         manage
and perform the various administrative functions necessary for the management of the day-to-day operations of the Company and the
Operating Partnership and their subsidiaries;

 

(xii)        provide
or arrange for administrative services and items, legal and other services, office space, office furnishings, personnel and other
overhead items necessary and incidental to the Company’s and the Operating Partnership’s and their subsidiaries’
business and operations;

 

(xiii)       provide
financial and operational planning services and portfolio management functions; and

 

(xiv)      from
time-to-time, or at any time reasonably requested by the Board, make reports to the Board on the Advisor’s performance of
services to the Company and the Operating Partnership under this Advisory Agreement.

 

(c)          Stockholder
Services. The Advisor shall:

 

(i)          have
the authority, in its sole discretion, to retain a transfer agent on behalf of the Company to perform all necessary transfer agent
functions;

 

(ii)         manage
and coordinate with such transfer agent, if retained by the Advisor, the distribution process and payments to Stockholders;

 

(iii)        manage
communications with Stockholders, including answering phone calls, preparing and sending written and electronic reports and other
communications; and

 

    	 	10	 

     

    

 

(iv)        establish
technology infrastructure to assist in providing Stockholder support and service.

 

Article V

BANK ACCOUNTS

 

The Advisor may establish
and maintain one or more bank accounts in its own name for the account of the Company or the Operating Partnership or their subsidiaries
or in the name of the Company or the Operating Partnership or any subsidiary and may collect and deposit into any such account
or accounts, and disburse from any such account or accounts, any money on behalf of the Company or the Operating Partnership or
their subsidiaries, under such terms and conditions as the Board may approve, provided that no funds shall be commingled with the
funds of the Advisor; and the Advisor shall from time to time render appropriate accountings of such collections and payments to
the Board and to the auditors of the Company.

 

Article VI

RECORDS; ACCESS

 

The Advisor shall maintain
appropriate records of all its activities hereunder and make such records available for inspection by the Board and by counsel,
auditors and authorized agents of the Company and the Operating Partnership and their subsidiaries, at any time or from time to
time during normal business hours. The Advisor, in the conduct of its responsibilities to the Company and the Operating Partnership,
shall maintain adequate and separate books and records for the Company’s and the Operating Partnership’s operations
in accordance with GAAP, which shall be supported by sufficient documentation to ascertain that such books and records are properly
and accurately recorded. Such books and records shall be the property of the Company. Such books and records shall include all
information necessary to calculate and audit the fees or reimbursements paid under this Advisory Agreement. The Advisor shall utilize
procedures to attempt to ensure such control over accounting and financial transactions as is reasonably required to protect the
Company’s and the Operating Partnership’s assets from theft, error or fraudulent activity. All financial statements
that the Advisor delivers to the Company shall be prepared on an accrual basis in accordance with GAAP, except for special financial
reports which by their nature require a deviation from GAAP. The Advisor shall maintain necessary liaison with the Company’s
independent accountants and shall provide such accountants with such reports and other information as the Company shall request.
The Advisor shall at all reasonable times have access to the books and records of the Company and the Operating Partnership.

 

Article VII

OTHER ACTIVITIES OF THE ADVISOR

 

Section
7.1           General. Nothing herein contained
shall prevent the Advisor or any of its Affiliates from engaging in or earning fees from other activities, including, without limitation,
the rendering of advice to other Persons (including other REITs) and the management of other programs advised, sponsored or organized
by the Advisor or any of its Affiliates. Nor shall this Agreement limit or restrict the right of any manager, director, officer,
member, partner, employee or equityholder of the Advisor or any of its Affiliates to engage in or earn fees from any other business
or to render services of any kind to any other Person. The Advisor may, with respect to any investment in which the Company or
the Operating Partnership or any subsidiary is a participant, also render advice and service to each and every other participant
therein, and earn fees for rendering such advice and service. Specifically, it is contemplated that the Company and the Operating
Partnership and their subsidiaries may enter into Joint Ventures or other similar co-investment arrangements with certain Persons,
and pursuant to the agreements governing such Joint Ventures or other similar co-investment arrangements, the Advisor may be engaged
to provide advice and service to such Persons, in which case the Advisor will earn fees for rendering such advice and service.
The Advisor shall promptly disclose to the Board the existence of any condition or circumstance, existing or anticipated, of which
it has knowledge, that creates or which would reasonably result in a conflict of interest between the Advisor’s obligations
to the Company and the Operating Partnership and their subsidiaries and its obligations to or its interest in any other Person.

 

    	 	11	 

     

    

 

Section 7.2           Policy
with Respect to Allocation of Investment Opportunities. During the term of this Agreement, the Advisor will use its reasonable
efforts to fairly allocate investment opportunities in accordance with the allocation methodology described in the Memorandum and
will promptly disclose to the Company any material deviation from such policy or the establishment of a new policy, which deviation
or new policy shall be allowed provided (a) the Board of Directors are provided with notice of such deviation or new policy at
least 30 days prior to such deviation or new policy becoming effective, or such shorter period as the Board of Directors may determine,
and (b) such deviation or new policy provides for the reasonable allocation of investment opportunities to the Company. The Advisor
shall provide the Board of Directors with any information reasonably requested so that the Board of Directors can ensure that the
Advisor is fairly allocating investment opportunities. Nothing herein shall be deemed to prevent the Advisor from pursuing an investment
opportunity directly or offering it to another Advisor-sponsored program rather than offering it to the Company so long as the
Advisor is fulfilling its obligation to provide a continuing and suitable investment program to the Company which is consistent
with the investment objectives and policies of the Company.

 

Article VIII

LIMITATIONS ON ACTIVITIES

 

Anything else in this Advisory
Agreement to the contrary notwithstanding, the Advisor shall refrain from taking any action which, in its sole judgment made in
good faith, would (a) adversely affect the status of the Company as a REIT, (b) subject the Company to regulation under the Investment
Company Act of 1940, as amended, (c) violate any law, rule, regulation or statement of policy of any governmental body or agency
having jurisdiction over the Company, its Stock or its other Securities, or the Operating Partnership, or (d) violate the Charter,
the Bylaws or the Operating Partnership Agreement, except if such action shall be ordered by the Board, in which case the Advisor
shall notify promptly the Board of the Advisor’s judgment of the potential impact of such action and shall refrain from taking
such action until it receives further clarification or instructions from the Board. In such event the Advisor shall have no liability
for acting in accordance with the specific instructions of the Board so given. Notwithstanding the foregoing, the Advisor, its
members, managers, directors, officers and employees, and stockholders, members, managers, directors, officers and employees of
the Advisor’s Affiliates shall not be liable to the Company or the Operating Partnership or to the Board or Stockholders
for any act or omission by the Advisor, its directors, officers or employees, or stockholders, directors or officers of the Advisor’s
Affiliates except as provided in this Advisory Agreement.

 

Article IX

FEES

 

Section
9.1           Acquisition Fees. The Company will
pay the Advisor, as compensation for the services described in Section 4.2, Acquisition Fees in an amount up to 2% of the Contract
Purchase Price of each Property acquired by the Company. The Advisor may waive or defer all or a portion of the Acquisition Fee
at any time and from time to time, in the Advisor’s sole discretion. The purchase price allocable for a Property held through
a Joint Venture shall equal the product of (a) the Contract Purchase Price of the Property and (b) the direct or indirect ownership
percentage in the Joint Venture held directly or indirectly by the Company or the Operating Partnership. For purposes of this Section
9.1, “ownership percentage” shall be the percentage of capital stock, membership interests, partnership interests or
other equity interests held by the Company or the Operating Partnership, without regard to classification of such interests. Acquisition
Fees shall be payable on the acquisition of a specific Property, on the acquisition of a portfolio of Properties through a purchase
of assets, controlling securities or by a Joint Venture, by a merger or similar business combination or other comparable transaction,
or on the completion of a development of a Property for the Company.

 

    	 	12	 

     

    

 

Section
9.2           Asset Management Fee. Commencing
on the date hereof, for the asset management services included in the services described in Section 4.3(a), the Company shall pay
the Advisor a monthly Asset Management Fee in an amount equal to one-twelfth of 1% of the Cost of Assets as of the last day of
the preceding monthly period. The Advisor may elect to receive the Asset Management Fee, in cash, OP Units, or Common Stock (or
any combination thereof). The Asset Management Fee will be appropriately
prorated for any partial month.

 

Section
9.3           Disposition Fees. If the Advisor
or an Affiliate provides a substantial amount of the services (as determined by a majority of the Directors, including a majority
of the Independent Directors) in connection with the Sale of one or more Properties, the Advisor or such Affiliate shall receive
at closing a Disposition Fee in an amount equal to 2% of the Contract Sales Price; provided, however, that no Disposition
Fee shall be payable if the Sale is to an Affiliate of the Advisor; provided further, however, that the payment of
any Disposition Fees by the Company shall be subject to any limitations contained in the Charter. Any Disposition Fee payable under
this section may be paid in addition to real estate commissions paid to non-Affiliates, provided that the total real estate commissions
(including such Disposition Fee) paid to all Persons by the Company or the Operating Partnership for each Sale shall not exceed
an amount equal to the lesser of (i) 6% of the aggregate Contract Sales Price of each Property or (ii) the Competitive Real Estate
Commission for each Property. For purposes of this Section 9.3, “substantial amount of services” in connection with
the Sale includes the preparation of an investment package for the Property (including a new investment analysis, rent rolls, tenant
information regarding credit, a property title report, an environmental report, a list of prospective buyers, a structural report
and exhibits) or such other substantial services performed by the Advisor or any of its Affiliates in connection with a Sale. The
Company or the Operating Partnership will pay the Disposition Fee for a Property at the time the Property is sold.

 

Article X

EXPENSES

 

Section
10.1         Reimbursable Expenses. In addition to the compensation
paid to the Advisor pursuant to Article IX hereof, the Company or the Operating Partnership shall pay directly or reimburse the
Advisor for all of the expenses paid or incurred by the Advisor (to the extent not reimbursable by another party, such as the Dealer
Manager) in connection with the services it provides to the Company and the Operating Partnership and their subsidiaries pursuant
to this Advisory Agreement, including, but not limited to:

 

(a)          reimbursements
for Organizational and Offering Expenses in connection with the Offering or any subsequent offering;

 

(b)          subject
to the limitation set forth below, Acquisition Expenses incurred by the Advisor or its Affiliates;

 

(c)          subject
to the limitation set forth below, Acquisition Fees and Acquisition Expenses paid or payable by the Advisor to unaffiliated Persons
incurred in connection with the selection and acquisition of Properties;

 

    	 	13	 

     

    

 

(d)          the
actual out-of-pocket cost of goods and services used by the Company and the Operating Partnership and their subsidiaries and obtained
from entities not affiliated with the Advisor including brokerage and other fees paid in connection with the purchase, operation
and sale of Assets and travel;

 

(e)          interest
and other costs for borrowed money, including discounts, points and other similar fees, and expenses relating to financing services
whether performed by a third party or internally by the Advisor or its Affiliates;

 

(f)          taxes
and assessments on income or Property and taxes as an expense of doing business and any taxes otherwise imposed on the Company
and the Operating Partnership and their respective businesses, assets or income, including tax compliance and processing services;

 

(g)          costs
associated with insurance required in connection with the business of the Company, the Operating Partnership, their subsidiaries
or by the Company’s officers and the Board and all risk management services related thereto whether performed by a third
party or internally by the Advisor or its Affiliates;

 

(h)          expenses
of managing improving, developing, operating and selling Properties owned,
directly or indirectly, by the Company or the Operating Partnership or their subsidiaries, as well as expenses of other transactions
relating to such Properties, whether payable to an Affiliate of the Company or a non-affiliated Person;

 

(i)          all
expenses in connection with payments to Directors and meetings of the Directors and Stockholders;

 

(j)          expenses
associated any tender offers or with the listing of the Common Stock on a national securities exchange or with the issuance and
distribution of Securities other than the Stock issued in the Offering, such as selling commissions and fees, advertising expenses,
taxes, legal and accounting fees, listing and registration fees;

 

(k)          expenses
connected with payments of Distributions in cash or otherwise made or caused to be made by the Company to the Stockholders;

 

(l)          expenses
of organizing, converting, modifying, merging, liquidating or dissolving the Company, the Operating Partnership and their subsidiaries,
or of amending the Charter, the Bylaws, the Operating Partnership Agreement or the governing documents of any subsidiaries;

 

(m)          expenses
of maintaining communications with Stockholders, including the cost of preparation, filing, printing, and mailing annual reports
and other Stockholder reports, proxy statements and other reports required by governmental entities;

 

(n)          administrative
service expenses, including all direct and indirect costs and expenses incurred by Advisor in fulfilling its duties hereunder and
including personnel costs. Such direct and indirect costs and expenses may include reasonable wages and salaries and other employee-related
expenses of all employees of Advisor or its Affiliates who are directly engaged in the operation, management, administration, investor
relations and marketing of the Company, including taxes, insurance and benefits relating to such employees, and legal, travel and
other out-of-pocket expenses which are directly related to their services provided by Advisor pursuant to this Advisory Agreement;

 

    	 	14	 

     

    

 

(o)          investor
relations, marketing, audit, accounting, tax, due diligence and legal fees, and other fees for consulting, advisory or professional
services relating to the operations of the Company and the Operating Partnership and their subsidiaries and all such fees incurred
at the request, or on behalf of, the Board of Directors, whether performed by a third party or internally by the Advisor or its
Affiliates;

 

(p)          costs
associated with the maintenance of a Company website and third party licensing fees for software and information technology; and

 

(p)          out-of-pocket
costs for the Company and the Operating Partnership and their subsidiaries to comply with all applicable laws, regulation and ordinances;
and all other out-of-pocket costs necessary for the operation of the Company, the Operating Partnership and their subsidiaries
and the Assets incurred by the Advisor in performing its duties hereunder.

 

The Company or the Operating
Partnership shall also reimburse the Advisor or Affiliates of the Advisor for all direct and indirect costs and expenses incurred
on behalf of the Company or the Operating Partnership or their subsidiaries prior to the execution of this Advisory Agreement.

 

The total of all Acquisition
Fees and Acquisition Expenses paid by the Company in connection with the purchase of a Property by the Company shall be limited
in accordance with the Charter.

 

Section
10.2         Other Services. Should the Directors request
that the Advisor or any member, manager, officer or employee thereof render services for the Company or the Operating Partnership
or their subsidiaries other than set forth in Article IV, such services shall be separately compensated at such rates and in such
amounts as are agreed by the Advisor and a majority of the Board of Directors, subject to the limitations contained in the Charter,
and shall not be deemed to be services pursuant to the terms of this Advisory Agreement.

 

Section
10.3         Timing of and Limitations on Reimbursements.

 

(a)          Expenses
incurred by the Advisor on behalf of the Company and the Operating Partnership and their subsidiaries and payable pursuant to this
Article X shall be reimbursed no less frequently than monthly to the Advisor. The Advisor shall prepare a statement documenting
the expenses of the Company and the Operating Partnership and their subsidiaries during each month, and shall use commercially
reasonable efforts to deliver such statement to the Company within 25 days after the end of each month. Subject to the Excess Expense
Guidelines, the Company or the Operating Partnership may advance funds to the Advisor for expenses the Advisor anticipates will
be incurred by the Advisor within the current month and any such advances shall be deducted from the amounts reimbursed by the
Company or the Operating Partnership to the Advisor.

 

Article XI

NO PARTNERSHIP OR JOINT VENTURE

 

Section
11.1         Relationship. The parties to this Advisory
Agreement are not partners or joint venturers with each other, and nothing in this Advisory Agreement shall be construed to make
them such partners or joint venturers or impose any liability as such on either of them, and neither shall have the power to bind
or obligate any of them except as set forth herein. In all respects, the status of the Advisor under this Advisory Agreement is
that of an independent contractor.

 

    	 	15	 

     

    

 

Section
11.2         Time Commitment. The Advisor shall, and
shall cause its Affiliates and their respective employees, officers and agents to, devote to the Company and the Operating Partnership
and their subsidiaries such time as shall be reasonably necessary to conduct the business and affairs of the Company and the Operating
Partnership and their subsidiaries in an appropriate manner consistent with the terms of this Advisory Agreement. The Company and
the Operating Partnership each acknowledges that the Advisor and its Affiliates and their respective employees, officers and agents
may also engage in activities unrelated to the Company and the Operating Partnership and their subsidiaries and may provide services
to Persons other than the Company, the Operating Partnership or any of their Affiliates.

 

Article XII

RELATIONSHIP WITH DIRECTORS

 

Subject to Article VIII
of this Advisory Agreement and to restrictions set forth in the Charter or deemed advisable with respect to the qualification of
the Company as a REIT, members, managers, directors, officers and employees of the Advisor or members, managers, directors, officers
and employees of an Affiliate of the Advisor or any corporate parents of an Affiliate, or directors, officers or stockholders of
any director, officer or corporate parent of an Affiliate may serve as a Director and as officers of the Company, except that no
officer or employee of the Advisor or its Affiliates who also is a Director or officer of the Company shall receive any compensation
from the Company for serving as a Director or officer other than reasonable reimbursement for travel and related expenses incurred
in attending meetings of the Directors.

 

Article XIII

REPRESENTATIONS AND WARRANTIES

 

Section
13.1         The Company. To induce the Advisor to enter
into this Advisory Agreement, the Company hereby represents and warrants that:

 

(a)          The
Company is a corporation, duly organized, validly existing and in good standing under the laws of the State of Maryland with all
requisite corporate power and authority and all material licenses, permits and authorizations necessary to carry out the transactions
contemplated by this Advisory Agreement.

 

(b)          The
Company’s execution, delivery and performance of this Advisory Agreement has been duly authorized by the Board of Directors.
This Advisory Agreement constitutes the valid and binding obligation of the Company, enforceable against the Company in accordance
with its terms. The Company’s execution and delivery of this Advisory Agreement and its fulfillment of and compliance with
the respective terms hereof do not and will not (i) conflict with or result in a breach of the terms, conditions or provisions
of, (ii) constitute a default under, (iii) result in the creation of any lien, security interest, charge or encumbrance upon the
assets of the Company pursuant to, (iv) give any third party the right to modify, terminate or accelerate any obligation under,
(v) result in a violation of or (vi) require any authorization, consent, approval, exception or other action by or notice to any
court or administrative or governmental body pursuant to, the Charter or Bylaws or any law, statute, rule or regulation to which
the Company is subject, or any agreement, instrument, order, judgment or decree by which the Company is bound, in any such case
in a manner that would have a material adverse effect on the ability of the Company to perform any of its obligations under this
Advisory Agreement.

 

Section
13.2         The Operating Partnership. To induce the Advisor
to enter into this Advisory Agreement, the Operating Partnership hereby represents and warrants that:

 

(a)          The
Operating Partnership is a Delaware limited partnership, duly organized, validly existing and in good standing under the laws of
the State of Delaware with all requisite power and authority and all material licenses, permits and authorizations necessary to
carry out the transactions contemplated by this Advisory Agreement.

 

    	 	16	 

     

    

 

(b)          The
Operating Partnership’s execution, delivery and performance of this Advisory Agreement has been duly authorized. This Advisory
Agreement constitutes the valid and binding obligation of the Operating Partnership, enforceable against the Operating Partnership
in accordance with its terms. The Operating Partnership’s execution and delivery of this Advisory Agreement and its fulfillment
of and compliance with the respective terms hereof do not and will not (i) conflict with or result in a breach of the terms,
conditions or provisions of, (ii) constitute a default under, (iii) result in the creation of any lien, security interest, charge
or encumbrance upon the assets of the Operating Partnership pursuant to, (iv) give any third party the right to modify, terminate
or accelerate any obligation under, (v) result in a violation of or (vi) require any authorization, consent, approval, exception
or other action by or notice to any court or administrative or governmental body pursuant to, the Operating Partnership Agreement
or any law, statute, rule or regulation to which the Operating Partnership is subject, or any agreement, instrument, order, judgment
or decree by which the Operating Partnership is bound, in any such case in a manner that would have a material adverse effect on
the ability of the Operating Partnership to perform any of its obligations under this Advisory Agreement.

 

Section
13.3         The Advisor. To induce the Company and the Operating
Partnership to enter into this Advisory Agreement, the Advisor represents and warrants that:

 

(a)          The
Advisor is a limited liability company, duly organized, validly existing and in good standing under the laws of the State of Delaware
with all requisite company power and authority and all material licenses, permits and authorizations necessary to carry out the
transactions contemplated by this Advisory Agreement.

 

(b)          The
Advisor’s execution, delivery and performance of this Advisory Agreement has been duly authorized. This Advisory Agreement
constitutes a valid and binding obligation of the Advisor, enforceable against the Advisor in accordance with its terms. The Advisor’s
execution and delivery of this Advisory Agreement and its fulfillment of and compliance with the respective terms hereof do not
and will not (i) conflict with or result in a breach of the terms, conditions or provisions of, (ii) constitute a default
under, (iii) result in the creation of any lien, security interest, charge or encumbrance upon the Advisor’s assets pursuant
to, (iv) give any third party the right to modify, terminate or accelerate any obligation under, (v) result in a violation of or
(vi) require any authorization, consent, approval, exemption or other action by or notice to any court or administrative or governmental
body pursuant to, the Advisor’s limited liability company agreement, or any law, statute, rule or regulation to which the
Advisor is subject, or any agreement, instrument, order, judgment or decree by which the Advisor is bound, in any such case in
a manner that would have a material adverse effect on the ability of the Advisor to perform any of its obligations under this Advisory
Agreement.

 

(c)          The
Advisor has received copies of the Charter, the Bylaws, the Memorandum and the Operating Partnership Agreement and is familiar
with the terms thereof, including without limitation the investment limitations included therein. The Advisor warrants that it
will use reasonable care to avoid any act or omission that would conflict with the terms of the Charter, the Bylaws, the Memorandum,
or the Operating Partnership Agreement in the absence of the express direction of the Board of Directors.

 

    	 	17	 

     

    

 

Article XIV

TERM; TERMINATION OF AGREEMENT

 

Section
14.1         Term. This Advisory Agreement shall continue
in force until the first anniversary of the date hereof. Thereafter, this Advisory Agreement may be renewed for an unlimited number
of successive one-year terms upon mutual consent of the parties. The Company, acting through the Board, will evaluate the performance
of the Advisor annually before renewing the Advisory Agreement, and each such renewal shall be for a term of no more than one year.

 

Section
14.2         Termination by Any Party. This Advisory Agreement
may be terminated upon 60 days’ written notice without cause or penalty, by the Board of Directors or the Advisor).

 

Section
14.3         Termination by the Advisor. This Advisory Agreement
may be terminated immediately by the Advisor in the event of any material breach of this Advisory Agreement by the Company or the
Operating Partnership not cured within 30 days after written notice thereof.

 

Section
14.4         Termination by the Company. This Advisory Agreement
may be terminated immediately by the Company or the Operating Partnership in the event of (a) any material breach of this Advisory
Agreement by the Advisor not cured by the Advisor within 30 days after written notice thereof; (b) a decree or order is rendered
by a court having jurisdiction (i) adjudging Advisor as bankrupt or insolvent, or (ii) approving as properly filed a petition seeking
reorganization, readjustment, arrangement, composition or similar relief for Advisor under the federal bankruptcy laws or any similar
applicable law or practice, or (iii) appointing a receiver or liquidator or trustee or assignee in bankruptcy or insolvency of
Advisor or a substantial part of the property of Advisor, or for the winding up or liquidation of its affairs; or (c) Advisor (i)
institutes proceedings to be adjudicated a voluntary bankrupt or an insolvent, (ii) consents to the filing of a bankruptcy proceeding
against it, (iii) files a petition or answer or consent seeking reorganization, readjustment, arrangement, composition or relief
under any similar applicable law or practice, (iv) consents to the filing of any such petition, or to the appointment of a
receiver or liquidator or trustee or assignee in bankruptcy or insolvency for it or for a substantial part of its property, (v)
makes an assignment for the benefit of creditors, (vi) is unable to or admits in writing its inability to pay its debts generally
as they become due unless such inability shall be the fault of the Operating Partnership, or (vii) takes company or other
action in furtherance of any of the aforesaid purposes.

 

Section
14.5         Survival. The provisions of Articles I, VI,
VII, XV through XX, and XXXI survive termination of this Advisory Agreement for a period of five years following the Termination
Date.

 

Article XV

PAYMENTS TO AND DUTIES OF

PARTIES UPON TERMINATION

 

Section
15.1         Reimbursable Expenses and Earned Fees. After
the Termination Date, the Advisor shall be entitled to receive from the Company or the Operating Partnership within thirty (30)
days after the effective date of such termination all amounts then accrued and owing to the Advisor, including all unpaid reimbursable
expenses and all earned but unpaid fees (including fees relating to partial months) payable to the Advisor prior to termination
of this Advisory Agreement.

 

Section
15.2         Advisor’s Duties Upon Termination. The
Advisor shall promptly upon termination:

 

    	 	18	 

     

    

 

(a)          pay
over to the Company and the Operating Partnership all money collected and held for the account of the Company and the Operating
Partnership pursuant to this Advisory Agreement, after deducting any accrued compensation and reimbursement for its expenses to
which it is then entitled;

 

(b)          deliver
to the Board a full accounting, including a statement showing all payments collected by it and a statement of all money held by
it, covering the period following the date of the last accounting furnished to the Board;

 

(c)          deliver
to the Board all assets, including Properties, and documents of the Company and the Operating Partnership then in the custody of
the Advisor; and

 

(d)          cooperate
with the Company and the Operating Partnership to provide an orderly management transition.

 

Section
15.3         Non-Solicitation. During the period commencing
on the effective date of this Advisory Agreement and ending two years following the Termination Date, the Company shall not, without
the Advisor’s prior written consent, directly or indirectly, (i) solicit or encourage any employee, consultant, contractor
or other Person performing services on behalf of the Advisor or its Affiliates to leave the employment or other service of the
Advisor or any of its Affiliates, or (ii) hire or pay, directly or indirectly, any compensation to, on behalf of the Company or
any other Person, any employee, consultant, contractor or other Person performing services on behalf of the Advisor or its Affiliates
who has left the employment of, or engagement by, the Advisor or any of its Affiliates within the two-year period following the
termination of that person’s employment with, or engagement by, the Advisor or any of its Affiliates. During the period commencing
on the effective date of this Advisory Agreement and ending two years following the Termination Date, the Company will not, whether
for its own account or for the account of any other Person, intentionally interfere with the relationship of the Advisor or any
of its Affiliates with, or endeavor to entice away from the Advisor or any of its Affiliates, any Person who during the term of
this Advisory Agreement is, or during the preceding two-year period was, a tenant, co-investor, co-developer, joint venturer or
other customer of the Advisor or any of its Affiliates.

 

Article XVI

ASSIGNMENT TO AN AFFILIATE

 

This Advisory Agreement
may be assigned by the Advisor to an Affiliate with the approval of the Board of Directors. The Advisor may assign any rights to
receive fees or other payments under this Advisory Agreement without obtaining the approval of the Board of Directors. This Advisory
Agreement shall not be assigned by the Company or the Operating Partnership without the consent of the Advisor, except in the case
of an assignment by the Company or the Operating Partnership, as the case may be, to a legal entity that is a successor to all
of the assets, rights and obligations of the Company or the Operating Partnership, as the case may be, in which case such successor
organization shall be bound hereunder and by the terms of said assignment in the same manner as the Company or the Operating Partnership,
as the case may be, is bound by this Advisory Agreement.

 

Article XVII

INCORPORATION OF THE
CHARTER AND THE OPERATING PARTNERSHIP AGREEMENT

 

To the extent that the
Charter or the Operating Partnership Agreement as in effect on the date hereof impose obligations or restrictions on the Advisor
or grant the Advisor certain rights which are not set forth in this Advisory Agreement, the Advisor shall abide by such obligations
or restrictions and such rights shall inure to the benefit of the Advisor with the same force and effect as if they were set forth
herein.

 

    	 	19	 

     

    

 

Article XVIII

INDEMNIFICATION BY THE COMPANY AND THE OPERATING PARTNERSHIP

 

The Company and the Operating
Partnership shall indemnify and hold harmless the Advisor and its Affiliates, including their respective officers, directors, equity
holders, members, partners and employees, from all liability, claims, damages or losses arising in the performance of their duties
hereunder, and related expenses, including reasonable attorneys’ fees, to the extent such liability, claims, damages or losses
and related expenses are not fully reimbursed by insurance, subject to any limitations imposed by the Charter, the laws of the
State of Maryland and the State of Delaware, as applicable, and only if all of the following conditions are met:

 

(a)          The
directors or the Advisor or its Affiliates have determined, in good faith, that the course of conduct that caused the loss or liability
was in the best interests of the Company and the Operating Partnership, as applicable;

 

(b)          The
Advisor or its Affiliates were acting on behalf of or performing services for the Company or the Operating Partnership;

 

(c)          Such
liability or loss was not the result of negligence or misconduct by the Advisor or its Affiliates; and

 

(d)          Such
indemnification or agreement to hold harmless is recoverable only out of the Company’s net assets, including insurance proceeds,
and not from its Stockholders.

 

(e)          With
respect to losses, liabilities or expenses arising from or out of an alleged violation of federal or state securities laws, one
or more of the following conditions are met: (i) there has been a successful adjudication on the merits of each count involving
alleged securities law violations as to the particular indemnitee; (ii) such claims have been dismissed with prejudice on the merits
by a court of competent jurisdiction as to the particular indemnitee; or (iii) a court of competent jurisdiction approves a settlement
of the claims against a particular indemnitee and finds that indemnification of the settlement and the related costs should be
made, and the court considering the request for indemnification has been advised of the position of the SEC and of the published
position of any state securities regulatory authority in which securities of the Company were offered or sold as to indemnification
for violations of securities laws. Notwithstanding the foregoing, the Advisor shall not be entitled to indemnification or be held
harmless pursuant to this Article XVIII for any activity which the Advisor shall be required to indemnify or hold harmless the
Company and the Operating Partnership pursuant to Article XIX.

 

(f)          The
Company shall pay or reimburse reasonable legal expenses and other costs incurred by the Advisor or its Affiliates, or by any of
their respective officers, directors, equity holders, members, partners and employees, in advance of the final disposition of a
proceeding only if (in addition to any applicable procedures required by the Maryland General Corporation Law, as amended from
time to time) all of the following are satisfied: (a) the proceeding relates to acts or omissions with respect to the performance
of duties or services on behalf of the Company; (b) the legal proceeding was initiated by a third party who is not a Stockholder
or, if by a Stockholder acting in his or her capacity as such, a court of competent jurisdiction approves such advancement; and
(c) such Person undertakes to repay the amount paid or reimbursed by the Company, together with the applicable legal rate
of interest thereon, if it is ultimately determined that such Person is not entitled to indemnification.

 

    	 	20	 

     

    

 

Article XIX

INDEMNIFICATION BY ADVISOR

 

The Advisor shall indemnify
and hold harmless the Company and the Operating Partnership from contract or other liability, claims, damages, taxes or losses
and related expenses including attorneys’ fees, to the extent that such liability, claims, damages, taxes or losses and related
expenses are not fully reimbursed by insurance and are incurred by reason of the Advisor’s gross negligence, bad faith, fraud,
willful misfeasance, misconduct, or reckless disregard of its duties, but Advisor shall not be held responsible for any action
of the Board in declining to follow any advice or recommendation given by the Advisor.

 

Article XX

LIMITATION OF LIABILITY

 

In no event will the parties
be liable for damages based on loss of income, profit or savings or indirect, incidental, consequential, exemplary, punitive or
special damages of the other party or person, including third parties, even if such party has been advised of the possibility of
such damages in advance, and all such damages are expressly disclaimed.

 

Article XXI

NOTICES

 

Any notice in this Advisory
Agreement permitted to be given, made or accepted by either party to the other, must be in writing and may be given or served by
(i) personal delivery with receipt acknowledged, or (ii) deposited for next day delivery by Federal Express or other similar overnight
courier service. All notices so given shall be deemed received: (A) when actually received, if personally delivered, or (B) when
delivered (or when delivery is refused) if sent via an overnight courier. For purposes hereof the addresses of the parties, until
changed as hereafter provided, shall be as follows:

 

	 	To the Company:	Phillips Edison Grocery Center REIT III, Inc. 
	 	 	Attention: Jeffrey S. Edison
	 	 	222 S. Main Street, Suite 1730
	 	 	Salt Lake City, Utah 84101
	 	 	 
	 	With a copy to:	DLA Piper LLC (US) 
	 	 	Attention: Robert Bergdolt, Esq.
	 	 	4141 Parklake Drive, Suite300 
	 	 	Raleigh, North Carolina 27612
	 	 	 
	 	To the Operating Partnership:	Phillips Edison Grocery Center Operating Partnership III, L.P.
	 	 	Attention: Jeffrey S. Edison
	 	 	222 S. Main Street, Suite 1730
	 	 	Salt Lake City, Utah 84101
	 	 	 
	 	With a copy to:	DLA Piper LLC (US)
	 	 	Attention: Robert Bergdolt, Esq.
	 	 	4141 Parklake Drive, Suite 300
	 	 	Raleigh, North Carolina 27612
	 	 	 
	 	To the Advisor:	PECO-Griffin REIT Advisor, LLC 
	 	 	Attention:  Jeffrey S. Edison and Tanya E. Brady
	 	 	222 S. Main Street, Suite 1730
	 	 	Salt Lake City, Utah 84101

 

    	 	21	 

     

    

 

	 	With a copy to:	Griffin Capital Asset Management Company, LLC
	 	 	Attention: Kevin A. Shields and Howard S. Hirsch
	 	 	Griffin Capital Plaza
	 	 	1520 E. Grand Avenue
	 	 	El Segundo, California 90245

 

Any party may at any time
give notice in writing to the other party of a change in its address for the purposes of this Article XXI.

 

Article XXII

MODIFICATION

 

This Advisory Agreement
shall not be changed, modified, terminated, or discharged, in whole or in part, except by an instrument in writing signed by the
parties hereto, or their respective successors or assignees.

 

Article XXIII

SEVERABILITY

 

The provisions of this
Advisory Agreement are independent of and severable from each other, and no provision shall be affected or rendered invalid or
unenforceable by virtue of the fact that for any reason any other or others of them may be invalid or unenforceable in whole or
in part.

 

Article XXIV

CONSTRUCTION/GOVERNING LAW

 

The provisions of this
Advisory Agreement shall be construed and interpreted in accordance with the laws of the State of Delaware as
at the time in effect, without regard to the principles of conflicts of laws thereof.

 

Article XXV

ENTIRE AGREEMENT

 

This Advisory Agreement
contains the entire agreement and understanding among the parties hereto with respect to the subject matter hereof, and supersedes
all prior and contemporaneous agreements, understandings, inducements and conditions, express or implied, oral or written, of any
nature whatsoever with respect to the subject matter hereof. The express terms hereof control and supersede any course of performance
and/or usage of the trade inconsistent with any of the terms hereof. This Advisory Agreement may not be modified or amended other
than by an agreement in writing.

 

Article XXVI

INDULGENCES, NOT WAIVERS

 

Neither the failure nor
any delay on the part of a party to exercise any right, remedy, power or privilege under this Advisory Agreement shall operate
as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further
exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege
with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence.
No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver.

 

    	 	22	 

     

    

 

Article XXVII

GENDER

 

Words used herein regardless
of the number and gender specifically used, shall be deemed and construed to include any other number, singular or plural, and
any other gender, masculine, feminine or neuter, as the context requires.

 

Article XXVIII

TITLES NOT TO AFFECT INTERPRETATION

 

The titles of paragraphs
and subparagraphs contained in this Advisory Agreement are for convenience only, and they neither form a part of this Advisory
Agreement nor are they to be used in the construction or interpretation hereof.

 

Article XXIX

EXECUTION IN COUNTERPARTS

 

This Advisory Agreement
may be executed in any number of counterparts, each of which shall be deemed to be an original as against any party whose signature
appears thereon, and all of which shall together constitute one and the same instrument. This Advisory Agreement shall become binding
when the counterparts hereof, taken together, bear the signatures of all of the parties reflected hereon as the signatories.

 

Article XXX

RIGHTS OF THE ADVISOR AND ITS AFFILIATES

 

(a)          One
of the Sponsors, Phillips Edison Limited Partnership, and/or its Affiliates has a proprietary interest in the name and mark “Phillips
Edison”, “PELP” and “PECO”. Accordingly, and in recognition of this right, if at any time the Advisor
or an Affiliate thereof ceases to perform the services of the Advisor under this Agreement or any successor agreement, the Company
or the Operating Partnership, as the case may be, will, promptly after receipt of written request from such Sponsor or the Advisor,
cease to conduct business under or use the name or mark “Phillips Edison”, “PELP”, “PECO” or
any variations or derivations thereof and the Company and the Operating Partnership shall, within five (5) business days of such
cessation, (i) each change its name (and the names of any of their Affiliates) to a name that does not contain the name “Phillips
Edison”, “PELP” and/or “PECO” (ii) cease to use the mark “Phillips Edison”, “PELP”
and/or “PECO” and (iii) shall not use in its name any marks or other word or words that might, in the sole discretion
of Phillips Edison Limited Partnership, be susceptible of indication of some form of relationship between the Company and the Advisor,
Sponsor or Affiliate thereof. Consistent with the foregoing, the parties acknowledge and agree that Phillips Edison Limited Partnership,
or one or more of its Affiliates may in the future organize, sponsor or otherwise permit to exist other investment vehicles (including
vehicles for investment in real estate) and financial and service organizations using “Phillips Edison”, “PELP”
and/or “PECO” as part of their name or one of their service marks, all without the need for any consent (and without
the right to object thereto) by the Company or its Board. The parties acknowledge and agree that each of the Sponsors retains ownership
of and reserve all intellectual property rights in their respective proprietary property. To the extent that the Company has or
obtains any claim to any right, title of interest in any proprietary property of either Sponsor, the Company hereby assigns and
transfers exclusively to the applicable Sponsor all right title and interest, including without limitation all intellectual property
rights, free and clear of all liens, encumbrances or licenses in favor of the Company or any other party, in and to the proprietary
property to the applicable Sponsor, including but not limited to the execution of any instruments or documents now or hereafter
requested by the Advisor to perfect, defend or confirm the assignment described herein, in a form determined by the Advisor.

 

    	 	23	 

     

    

 

(b)          One
of the Sponsors, Griffin Capital Corporation, and/or its Affiliates has a proprietary interest in the name and mark “Griffin”
and “Griffin Capital”. Accordingly, and in recognition of this right, if at any time the Advisor or an Affiliate thereof
ceases to perform the services of the Advisor under this Agreement or any successor agreement, the Company or the Operating Partnership,
as the case may be, will, promptly after receipt of written request from such Sponsor or the Advisor, cease to conduct business
under or use the name or mark “Griffin”, “Griffin Capital” or any variations or derivations thereof and
the Company and the Operating Partnership shall, within five (5) business days of such cessation, (i) each change its name (and
the names of any of their Affiliates) to a name that does not contain the name “Griffin” and/or “Griffin Capital”
(ii) cease to use the mark “Griffin” and/or “Griffin Capital” and (iii) shall not use in its name any marks
or other word or words that might, in the sole discretion of Griffin Capital Corporation, be susceptible of indication of some
form of relationship between the Company and the Advisor, Sponsor or Affiliate thereof. Consistent with the foregoing, the parties
acknowledge and agree that Griffin Capital Corporation, or one or more of its Affiliates may in the future organize, sponsor or
otherwise permit to exist other investment vehicles (including vehicles for investment in real estate) and financial and service
organizations using “Griffin” and/or “Griffin Capital” as part of their name or one of their service marks,
all without the need for any consent (and without the right to object thereto) by the Company or its Board. The parties acknowledge
and agree that each of the Sponsors retains ownership of and reserve all intellectual property rights in their respective proprietary
property. To the extent that the Company has or obtains any claim to any right, title of interest in any proprietary property of
either Sponsor, the Company hereby assigns and transfers exclusively to the applicable Sponsor all right title and interest, including
without limitation all intellectual property rights, free and clear of all liens, encumbrances or licenses in favor of the Company
or any other party, in and to the proprietary property to the applicable Sponsor, including but not limited to the execution of
any instruments or documents now or hereafter requested by the Advisor to perfect, defend or confirm the assignment described herein,
in a form determined by the Advisor.

 

[Signatures
appear on next page]

 

    	 	24	 

     

    

 

IN WITNESS WHEREOF, the
parties hereto have executed this Advisory Agreement as of the date and year first above written.

 

	 	THE COMPANY:
	 	 
	 	PHILLIPS EDISON GROCERY CENTER REIT III, INC.
	 	 	 
	 	By:	/s/ Jeffrey S. Edison
	 	 	Jeffrey S. Edison
	 	 	Chief Executive Officer
	 	 	 
	 	THE OPERATING PARTNERSHIP:
	 	 
	 	PHILLIPS EDISON GROCERY CENTER OPERATING PARTNERSHIP III, L.P.
	 	 	 
	 	BY:	Phillips Edison Grocery Center OP GP III, LLC, ITS GENERAL PARTNER
	 	 	 
	 	 	BY:	Phillips Edison Grocery Center REIT III, Inc., ITS SOLE MEMBER
	 	 	 
	 	By:	/s/ Jeffrey S. Edison
	 	 	Jeffrey S. Edison
	 	 	Chief Executive Officer
	 	 	 
	 	THE ADVISOR:
	 	 
	 	PECO-GRIFFIN REIT ADVISOR, LLC
	 	 	 
	 	By:	/s/ Jeffrey S. Edison
	 	 	Jeffrey S. Edison
	 	 	Chief Executive Officer

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