Document:

COVENANT NOT TO SUE

 

THIS COVENANT NOT
TO SUE (“Covenant”) is made as of June 10, 2013, by and among DOF IV REIT HOLDINGS, LLC, a Delaware limited
liability company (“Lender”), TNP SRT LAHAINA GATEWAY, LLC, a Delaware limited liability company to be renamed
SRT LAHAINA GATEWAY, LLC (“Borrower”), TNP STRATEGIC RETAIL TRUST, INC., a Maryland corporation to be renamed
STRATEGIC REALTY TRUST, INC. (“Guarantor”), TNP SRT Lahaina Gateway Mezz, LLC, a Delaware limited liability
company to be renamed SRT Lahaina Gateway Mezz, LLC (“Sole Member”), and TNP SRT Lahaina Gateway Mezz Holdings,
LLC, a Delaware limited liability company to be renamed SRT Lahaina Gateway Mezz Holdings, LLC (“Holdings”),
with reference that certain Deed in Lieu of Foreclosure Agreement dated as of June 10, 2013 (the “Agreement”)
by and among Lender, Borrower and Guarantor. Capitalized terms used in this Covenant and not otherwise defined herein have the
meanings ascribed to them in the Agreement. This Covenant is effective as of the Closing Date.

 

Pursuant to the Agreement,
Lender, Borrower and Guarantor agree as follows:

 

1.      Covenant
Not to Sue. Lender, for itself and its successors and assigns, forever covenants not to sue Borrower, Guarantor, Sole Member,
Holdings, or their respective officers, directors, members, managers, principals, partners, shareholders, affiliates, employees,
heirs, executors, administrators, legal representatives, successors and assigns, for recovery of any claim (i) relating to or
arising under the Loan Agreement, or (ii) relating to the Loan (as defined in the Loan Agreement), or (iii) relating to or arising
under any other Loan Documents (as defined in the Loan Agreement), or (iv) relating to the Property (as defined in the Loan Agreement),
or (v) relating to or arising under the Guaranty, subject, however, to Sections 2,3 and 4 below and to all of the following:

 

(a)          The
Loan Documents are not cancelled, discharged, terminated, or deemed paid, and are hereby reaffirmed, and the Mortgage will not
be reconveyed and will not merge with the Leasehold or the interests in any other Property conveyed to Lender or Buyer pursuant
to the Agreement.

 

(b)          Lender
reserves all of its rights and remedies under the Loan Documents and applicable law in, to, and against all collateral described
in the Loan Documents, including the Property, including the right to continue or commence any action or other enforcement proceeding
(including a judicial foreclosure action and/or a nonjudicial foreclosure) that Lender considers necessary or desirable to protect
or enforce its rights in and to such collateral, and may maintain or join or name Borrower, Guarantor, Sole Member and/or Holdings
as a party thereto for such purpose, but Lender covenants not to enforce against Borrower, Guarantor, Sole Member or Holdings any
personal judgment obtained by Lender against Borrower, Guarantor, Sole Member or Holdings in any such action.

 

(c)          This
Covenant shall not in any manner release, discharge, impair, or otherwise affect the obligations of Borrower or Guarantor under
the Environmental Indemnity, the Agreement, or any of the documents or instruments executed and delivered pursuant to the Agreement,
and Lender reserves, on its own behalf and behalf of Buyer, all claims, causes of action and other rights and remedies Lender or
Buyer may now or hereafter have thereunder or with respect thereto.

 

(d)          Lender
reserves, on its own behalf and behalf of Buyer, the right to implead or otherwise join Borrower, Guarantor, Sole Member and/or
Holdings in any action in which a claim is made against Lender or Buyer in connection with the Loan, the Loan Documents or the
obligations evidenced and/or secured thereby, or with respect to the collateral described therein (including the Property), and
to assert any rights of Lender or Buyer to contribution, indemnity, reimbursement and/or any other recovery against Borrower, Guarantor,
Sole Member or Holdings in any such action.

 

    	Lahaina Covenant Not To Sue	1	 

    	 

    

 

(e)          Lender
reserves, on its own behalf and on behalf of Buyer, the right to sue and obtain and satisfy a judgment against Borrower, Guarantor,
Sole Member or Holdings by reason of claims of causes or action for (i) fraud by Borrower, Guarantor, Sole Member or Holdings in
connection with the Agreement or the Property, or (ii) Borrower’s failure to pay to Lender or Buyer any rents collected by
or on behalf of Borrower and allocable to any period whether before or after the Closing Date.

 

(f)          Notwithstanding
any other provision of this Covenant to the contrary, this Covenant does not inure to the benefit of, and shall have no effect
upon the rights or remedies of Lender against, Anthony W. Thompson.

 

2.     Continuance
of Liability. If any claim is made upon Lender or Buyer at any time for avoidance, setting aside, recovery, rescission, cancellation,
return or repayment with respect to any payment or transfer made to or for the benefit of Lender or Buyer in connection with the
Loan Documents or the obligations evidenced and/or secured thereby or the Property, and if Lender or Buyer pays or otherwise transfers
value on any such claim in whole or part, whether pursuant to judgment, decree, order, settlement, voluntary payment or otherwise,
then, without any notice or action by Lender or any other party, Lender’s covenant not to sue in Section 1 above
shall be of no further force or effect and Lender shall be entitled to enforce all of its rights and remedies under and in connection
with the Loan Documents, including as a personal liability of Borrower, Guarantor, Sole Member and/or Holdings. Lender may elect
in its sole discretion whether to contest or pay any such claim made upon it.

 

3.     Covenant
Void. Lender’s covenant not to sue in Section 1 will be null, void, and of no force and effect if (a) Borrower,
Guarantor, Sole Member or Holdings makes any claim against or commences any action, suit, or proceeding against Lender or Buyer
(or any agent or affiliate of either of them) seeking to rescind the transaction contemplated by the Agreement, in whole or in
part, or attacking the validity thereof, in whole or in part, or (b) on or before the 735th day following the Closing Date Borrower
files, or Guarantor, Sole Member, Holdings or any other entity under the control, direct or indirect, of Guarantor, files against
Borrower, a petition under any chapter or section of Title 11 of the United States Code, as amended, but Lender’s covenant
not to sue in Section 1 shall not be negated by reason of any of Borrower, Sole Member or Holdings being liquidated under,
dissolved under, or otherwise ceasing to exist under, Delaware law or ceasing to be qualified to do business in any jurisdiction.

 

4.     No
Covenant Not to Sue Third Parties. This Covenant shall not in any manner affect the liability of any third party that is or
may be liable to Lender in connection with the Loan, the Loan Documents or the obligations evidenced and/or secured thereby, the
Property, or otherwise, and Lender reserves all claims, causes of action and other rights and remedies Lender may now or hereafter
have against any such third party, including tenants of the Property, with respect thereto.

 

5.     Attorneys’
Fees and Costs. In the event of a judicial or administrative proceeding or action by one party against the other party with
respect to the interpretation or enforcement of this Covenant, the prevailing party shall be entitled to recover reasonable costs
and expenses including reasonable attorneys’ fees and expenses, whether at the investigative, pretrial, trial or appellate
level.

 

6.     Successors
and Assigns. This Covenant shall be binding upon and inure to the benefit of Lender, Borrower, Guarantor, Sole Member and
Holdings and their respective successors and assigns.

 

7.     Governing
Law. This Covenant shall be governed by and interpreted in accordance with the laws of the State of New York, without regard
to conflict of law provisions.

 

[SIGNATURES FOLLOW ON NEXT PAGE]

 

    	Lahaina Covenant Not To Sue	2	 

    	 

    

 

IN WITNESS WHEREOF, Lender, Borrower, Guarantor,
Sole Member and Holdings have executed this Covenant as of the date first above written.

 

	LENDER:	DOF IV REIT Holdings, LLC, a Delaware limited liability company
	 	 
	 	By:	/s/ Abbey Kosakowski
	 	Name:  	Abbey Kosakowski
	 	Its:	Authorized signatory

 

[SIGNATURES CONTINUE ON NEXT PAGE]

 

    	Lahaina Covenant Not To Sue	3	 

    	 

    

 

	BORROWER:	TNP SRT LAHAINA GATEWAY LLC, a Delaware limited liability Company

 

	 	By: TNP SRT Lahaina Gateway Mezz, LLC, a Delaware limited liability company, its sole member
	 	 
	 	By: TNP SRT Lahaina Gateway Mezz Holdings, LLC, a Delaware limited liability company, its sole member
	 	 
	 	By: TNP SRT Lahaina Gateway Holdings, LLC, a Delaware limited liability company, its sole member
	 	 
	 	By: TNP Strategic Retail Operating Partnership, LP, a Delaware limited partnership, its sole member
	 	 
	 	By: TNP Strategic Retail Trust, Inc., a Maryland corporation, its general partner

 

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

 

	GUARANTOR:	TNP STRATEGIC RETAIL TRUST, INC., a Maryland corporation

 

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

 

[SIGNATURES CONTINUE ON NEXT PAGE]

 

    	Lahaina Covenant Not To Sue	4	 

    	 

    

 

	SOLE MEMBER:	TNP SRT LAHAINA GATEWAY MEZZ, LLC, a Delaware limited liability company

 

	 	By: TNP SRT Lahaina Gateway Mezz Holdings, LLC, a Delaware limited liability company, its sole member
	 	 
	 	By: TNP SRT Lahaina Gateway Holdings, LLC, a Delaware limited liability company, its sole member
	 	 
	 	By: TNP Strategic Retail Operating Partnership, LP, a Delaware limited partnership, its sole member
	 	 
	 	By: TNP Strategic Retail Trust, Inc., a Maryland corporation, its general partner

 

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

 

	HOLDINGS:	TNP SRT LAHAINA GATEWAY MEZZ HOLDINGS, LLC, a

	 	Delaware limited liability company
	 	 
	 	By: TNP SRT Lahaina Gateway Holdings, LLC, a Delaware limited liability company, its sole member
	 	 
	 	By: TNP Strategic Retail Operating Partnership, LP, a Delaware limited partnership, its sole member
	 	 
	 	By: TNP Strategic Retail Trust, Inc., a Maryland corporation, its general partner

 

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

 

    	Lahaina Covenant Not To Sue	5RELEASE OF CLAIMS

 

This Release of Claims
is dated as of June 10, 2013, and is effective as of the Closing Date (as defined below). Reference is made herein to:

 

A.          that
certain Loan Agreement, dated as of November 9, 2012 (the “Loan Agreement”), by and between DOF IV REIT HOLDINGS,
LLC (“Lender”), and TNP SRT LAHAINA GATEWAY, LLC, a Delaware limited liability company to be renamed SRT LAHAINA
GATEWAY, LLC (“Borrower”);

 

B.          that
certain Guaranty, dated as of November 9, 2012 (the “Guaranty”), by Mr. Anthony W. Thompson, an individual,
and TNP STRATEGIC RETAIL TRUST, INC., a Maryland corporation to be renamed STRATEGIC REALTY TRUST, INC. (“Guarantor”)
in favor of Lender;

 

C.          that
certain Pledge Agreement, dated as of November 9, 2012, executed by TNP SRT Lahaina Gateway Mezz, LLC, a Delaware limited liability
company to be renamed SRT Lahaina Gateway Mezz, LLC (“Sole Member”), in favor of Lender, and that certain Pledge
Agreement, dated as of November 9, 2012, executed by TNP SRT Lahaina Gateway Mezz Holdings, LLC, a Delaware limited liability
company to re renamed SRT Lahaina Gateway Mezz Holdings, LLC (“Holdings”), in favor of Lender (collectively
the “Pledge Agreements”); and

 

D.          that
certain Deed in Lieu of Foreclosure Agreement by and among Borrower, Lender and Guarantor dated as of June 10, 2013 (“Agreement”).

 

Each of Borrower,
Guarantor, Sole Member and Holdings (collectively, the “Releasing Parties”) are delivering this Release of
Claims, effective as of the Closing Date (as defined in the Agreement, the “Closing Date”), to Lender, TORCHLIGHT
LOAN SERVICES, LLC, a limited liability company (“TLS”), and TORCHLIGHT INVESTORS, LLC, a limited liability
company (“TI”) (TLS and TI having served as agents of Lender in connection with this transaction).

 

Each of the Releasing
Parties, for themselves and their respective officers, directors, members, managers, principals, partners, shareholders, affiliates,
employees, heirs, executors, administrators, legal representatives, successors and assigns, hereby unconditionally and irrevocably
releases, remises, acquits, satisfies, waives and forever discharges Lender, TLS and TI, and each of their respective officers,
directors, members, managers, principals, partners, shareholders, affiliates, agents, employees, accountants, attorneys, and legal
representatives (collectively, the “Lender Parties”) of and from any and all liabilities, actions, causes of
action, suits, damages, judgments, claims, losses, costs and expenses of any kind whatsoever, whether in law or in equity, direct
or indirect, contingent or consequential, liquidated or unliquidated, known or unknown, suspected or unsuspected, presently existing
or which may hereafter arise (collectively, “Claims”), with respect to any matter occurring from the beginning of
time to immediately prior to the Closing Date which:

 

(i)          relate
to or arise under the Loan Agreement, or

 

(ii)         relate
to the Loan (as defined in the Loan Agreement), or

 

(iii)        relate
to or arise under any other Loan Documents (as defined in the Loan Agreement), or

 

(iv)        relate
to the Property (as defined in the Loan Agreement), or

 

(v)         relate
to or arise under the Guaranty or the Pledge Agreements.

 

    	Lahaina Release of Lender	1	 

    	 

    

 

Each of the Releasing
Parties hereby represents and warrants that it has not previously assigned, sold or transferred, or attempted to assign, sell or
transfer, any of the Claims, and agrees not to assign or transfer any of the Claims in the future.

 

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

 

Each of the Releasing
Parties hereby expressly and irrevocably waives its rights under any applicable statute, rule, regulation, legal principle, or
legal doctrine applicable in any state or territory of the United States or any foreign jurisdiction which provides that a release
does not extend to claims which a releasing party does not know or suspect to exist in its favor at the time of executing such
release, which if known by the releasing party would have materially affected its settlement with the released party.

 

Notwithstanding the
preceding paragraph and the below choice of law provision, with respect to the releases set forth above Releasing Parties each
hereby certify that they have read and understood the provisions of California Civil Code Section 1542 and have consulted or have
had the opportunity to consult with their respective counsel regarding the same. Releasing Parties hereby waive any and all rights
under California Civil Code Section 1542, which provides as follows:

 

“A general
release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing
the release, which if known by him or her must have materially affected his or her settlement with the debtor.”

 

Releasing Parties
fully understand that they cannot hereafter make any further claims against or seek any further recovery from one another by reason
of any Claim of any nature whatsoever in existence prior to the Closing Date, except as provided herein. Releasing Parties further
acknowledge that they or their respective attorneys may hereafter discover facts different from or in addition to those which they
or their attorneys now know or believe to be true with respect to the released claims and rights, and they agree that this Release
of Claims shall be and remain in effect as a full and complete release except as provided herein, notwithstanding any such different
or additional facts. The Releasing Parties have initialed below to further confirm the foregoing.

 

	Borrower: 	[ILLEGIBLE]	 	Guarantor:	[ILLEGIBLE]	 
	 	 	 
	Sole Member:	[ILLEGIBLE]	 	Holdings: 	[ILLEGIBLE]	 

 

This Release of Claims
shall be governed by and interpreted in accordance with the laws of the State of New York, without regard to conflict of law provisions.

 

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

 

    	Lahaina Release of Lender	2	 

    	 

    

 

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

 

[SIGNATURES FOLLOW ON NEXT PAGE]

 

    	Lahaina Release of Lender	3	 

    	 

    

 

IN WITNESS WHEREOF,
the undersigned have executed this Release of Claims as of the Closing Date as set forth above.

 

BORROWER:

 

TNP SRT LAHAINA GATEWAY LLC, a Delaware limited liability company

 

By: TNP SRT Lahaina Gateway Mezz, LLC, a Delaware
limited liability company, its sole member

 

By: TNP SRT Lahaina Gateway Mezz Holdings, LLC, a
Delaware limited liability company, its sole member

 

By: TNP SRT Lahaina Gateway Holdings, LLC, a Delaware
limited liability company, its sole member

 

By: TNP Strategic Retail Operating Partnership, LP,
a Delaware limited partnership, its sole member

 

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

 

	By:	/s/ Jeffrey Rogers

	 
	Name:	Jeffrey Rogers

	 
	Title:	Chairman 	 
	 	Authorized Agent	 

 

	GUARANTOR:	 
	 	 
	TNP STRATEGIC RETAIL TRUST, INC,

a Maryland corporation	 
	 	 
	By:	/s/ Jeffrey Rogers

	 
	Name: 	Jeffrey Rogers

	 
	Title:	Chairman 	 
	 	Authorized Agent	 

 

[SIGNATURES CONTINUE ON NEXT PAGE]

 

    	Lahaina Release of Lender	4	 

    	 

    

 

SOLE MEMBER:

 

TNP SRT LAHAINA GATEWAY MEZZ, LLC, a Delaware limited
liability company

 

By: TNP SRT Lahaina Gateway Mezz Holdings, LLC, a
Delaware limited liability company, its sole member

 

By: TNP SRT Lahaina Gateway Holdings, LLC, a Delaware
limited liability company, its sole member

 

By: TNP Strategic Retail Operating Partnership, LP,
a Delaware limited partnership, its sole member

 

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

 

	By:	/s/ Jeffrey Rogers
	 
	Name:	Jeffrey Rogers

	 
	Title:	Chairman 	 
	 	Authorized Agent	 

 

HOLDINGS:

 

TNP SRT LAHAINA GATEWAY MEZZ HOLDINGS, LLC, a Delaware limited
liability company

 

By: TNP SRT Lahaina Gateway Holdings, LLC, a Delaware
limited liability company, its sole member

 

By: TNP Strategic Retail Operating Partnership, LP,
a Delaware limited partnership, its sole member

 

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

 

	By:	/s/ Jeffrey Rogers
	 
	Name:	Jeffrey Rogers

	 
	Title:	Chairman 	 
	 	Authorized Agent	 

 

    	Lahaina Release of Lender	5

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