Document:

exv10w48

Exhibit 10.48

November 8, 2007

Louis J. Arcudi, III

4 Whitney Road

Hopedale, MA 01747

Dear Lou:

It is my pleasure to extend to you this offer of employment with Idera Pharmaceuticals, Inc. (the
“Company”). The purpose of this letter is to summarize the terms of your employment with the
Company, should you accept our offer:

	1.	 	Employment. You will be employed to serve on a full time basis as Chief Financial
Officer of the Company, effective December 3, 2007 (the “Effective Date”) reporting solely to
the Chief Executive Officer and performing such duties as are customarily assigned to a chief
financial officer, plus such other duties as may from time to time be assigned to you by the
Chief Executive Officer. You agree to devote your full business time, best efforts, skill,
knowledge, attention and energies to the advancement of the Company’s business and interests
and to the performance of your duties and responsibilities as an employee of the Company.

	2.	 	Base Salary and Bonus. Your base salary will be $230,000 per year. Such base salary
may be adjusted from time to time in accordance with normal business practices and in the sole
discretion of the Company. You shall also be eligible to receive, at the end of each fiscal
year of the Company other than the year ending December 31, 2007, an annual bonus, whether
pursuant to a formal bonus or incentive plan or program of the Company or otherwise. With
respect to the fiscal year ending December 31, 2008, you shall be eligible to receive a bonus
equal to between 20% and 30% of your base salary on the last day of such fiscal year. Such
bonus, if any, will be approved by the Board of Directors (the “Board”) in its sole discretion
and will be based on both individual and Company performance objectives as developed and
determined by the Company in its sole discretion.

	3.	 	Signing Bonus. In addition to your base salary and any annual bonus, you will be
eligible to receive a signing bonus of $50,000 payable in two installments of $25,000 each. If
you remain employed with the Company on January 31, 2008, then the first installment will be
paid on that date and again subject to your continued employment with the Company, the second
installment will be paid on May 30, 2008. Notwithstanding the foregoing, in the event that
prior to May 30, 2008 you are terminated without cause, then the Company shall pay these bonus
installments on the specified payment dates whether or not you are then an employee of the
Company.

 

 

	4.	 	Benefit Programs. You may participate in any and all benefit programs that the
Company may establish and make available to its employees from time to time, provided you are
eligible under (and subject to all provisions of) the plan documents governing those programs.
Such benefits may include medical, dental and retirement plans. Any benefits made available
by the Company, and the rules, terms and conditions for participation in such
benefit plans, may be changed by the Company at any time and from time to time without advance
notice.

	5.	 	Severance. In the event that the Company terminates your employment with the Company
at any time without Cause, the Company shall continue to pay you your then current base salary
for a period ending on the date three (3) months after the termination of your employment (the
“Severance Period”), payable in accordance with and at the times contemplated by the Company’s
then current payroll practices. In addition, during the Severance Period, the Company will
provide you with medical and dental insurance benefits to the extent you were receiving such
benefits immediately prior to your termination date and to the extent that the Company is able
to provide you with such benefits at a cost to the Company that is not in excess of the cost
that the Company was paying for such benefits for you immediately prior to your termination.
Notwithstanding the foregoing, the Company’s obligations to make such payments and provide
such benefits shall be contingent upon your execution of a release in a form reasonably
acceptable to the Company.

     For purposes of this offer letter, Cause shall mean (i) a material breach of any material
term of this offer letter, (ii) a plea of guilty or nolo contendere to, or conviction of, the
commission of a felony offense, (iii) repeated unexplained or unjustified absence, or refusals
to carry out the lawful directions of the Board or (iv) material breach of a fiduciary duty owed
to the Company under this offer letter, provided that any action or inaction described by (i),
(iii) or (iv), above, shall not be the basis of a termination of your employment with the
Company for “Cause” unless the Company provided you with at least 20 days advance written notice
specifying in reasonable detail the conduct in need of being cured and such conduct was not
cured within the notice period or prior to termination.

	6.	 	Equity. Upon the commencement of your employment with the Company, you will receive
pursuant and subject to the terms of the Company’s 2005 Stock Incentive Plan, a non-statutory
stock option award to purchase 80,000 shares of the Company’s common stock at an exercise
price equal to the fair market value of the Company’s common stock on the date of grant. Such
options shall vest over three years with the first installment vesting on the first
anniversary of the grant date and the balance of the shares vesting in equal quarterly
installments over the remaining two years . These options shall be evidenced by an option
agreement that is consistent with the form of option agreement generally used by the Company
and the terms of this offer letter. In the event that during the one year period following
the Effective Date a Change of Control occurs, then the vesting of such options shall be
accelerated such that on the date of the Change of Control such stock options shall
automatically vest as to the first annual installment.

     For purposes of this offer letter, a Change of Control shall mean the occurrence of any of
the following events: (i) a change in the composition of the Board over a period of thirty-six
consecutive months or less such that a majority of the members of the
Board ceases 

to  be

- 2 -

 

comprised of individuals who are Continuing Members; for such purpose, a “Continuing Member”
shall mean an individual who is a member of the Board on the date of this Agreement and any
successor of a Continuing Member who is elected to the Board or nominated for election by action
of a majority of Continuing Members then serving on the Board; (ii) any merger or consolidation
that results in the voting securities of the Company
outstanding immediately prior thereto representing (either by remaining outstanding or by being
converted into voting securities of the surviving or acquiring entity) less than 60% of the
combined voting power of the voting securities of the Company or such surviving or acquiring
entity outstanding immediately after such merger or consolidation; (iii) any sale of all or
substantially all of the assets of the Company; (iv) the complete liquidation or dissolution of
the Company; or (v) the acquisition of “beneficial ownership” (as defined in Rule 13d-3 under
the Exchange Act) of securities of the Company representing 50% or more of the combined voting
power of the Company’s then outstanding securities (other than through a merger or consolidation
or an acquisition of securities directly from the Company) by any “person,” as such term is used
in Sections 13(d) and 14(d) of the Exchange Act, other than the Company, any trustee or other
fiduciary holding securities under an employee benefit plan of the Company or any corporation
owned directly or indirectly by the stockholders of the Company in substantially the same
proportion as their ownership of stock of the Company.

	7.	 	Invention, Non-Disclosure and Non-Competition Agreement. As a condition of
employment, you will be required to execute the Invention, Non-Disclosure and Non-Competition
Agreement enclosed herewith as Exhibit A.
	 
	8.	 	Company Policies and Procedures. As an employee of the Company, you will be required
to comply with all Company policies and procedures. Violations of the Company’s policies may
lead to immediate termination of your employment. Further, the Company’s premises, including
all workspaces, furniture, documents and other tangible materials, and all information
technology resources of the Company (including computers, data and other electronic files, and
all internet and e-mail) are subject to oversight and inspection by the Company at any time.
Company employees should have no expectation of privacy with regard to any Company premises,
materials, resources or information.
	 
	9.	 	Proof of Legal Right to Work. For purposes of federal immigration law, you will be
required to provide the Company with documentary evidence of your identity and eligibility for
employment in the United States. Such documentation must be provided to the Company within
three (3) business days of your date of hire, or our employment relationship with you may be
terminated. You may need to obtain a work visa in order to be eligible to work in the United
States. If that is the case, your employment with the Company will be conditioned upon your
obtaining a work visa in a timely manner as determined by the Company.
	 
	10.	 	At-Will Employment. This letter shall not be construed as an agreement, either
express or implied, to employ you for any stated term, and shall in no way alter the Company’s
policy of employment at will, under which both you and the Company remain free to end the
employment relationship, for any reason, at any time, with or without cause or notice.
Although your job duties, title, compensation and benefits, as well as the Company’s personnel
policies and procedures, may change from time to time, the “at-will” nature of 

- 3 -

 

	 	 	your employment
may only be changed by a written agreement signed by you and the Chief Executive Officer of
the Company which expressly states the intention to modify the at-will nature of your
employment. Similarly, nothing in this letter shall be construed as an agreement, either
express or implied, to pay you any compensation or grant you any benefit beyond the end of
your employment with the Company. This letter supersedes any prior
understandings, whether written or oral, relating to the terms of your employment with the
Company.
	 
	11.	 	Other Agreements and Governing Law. You represent that you are not bound by any
employment contract, restrictive covenant or other restriction preventing you from entering
into employment with or carrying out your responsibilities for the Company, or which is in any
way inconsistent with the terms of this letter. Please note that this offer letter is your
formal offer of employment and supersedes any and all prior or contemporaneous agreements,
discussions and/or understandings, whether written or oral, relating to the subject matter of
this letter or your employment with the Company. The resolution of any disputes under this
letter will be governed by Massachusetts law.

If this letter correctly sets forth the initial terms under which you will be employed by the
Company, please sign the enclosed duplicate of this letter in the space provided below, along with
the enclosed Invention, Non-Disclosure and Non-Competition Agreement, and return them to me. If
you do not accept this offer by November 15, 2007, the offer will be revoked. This offer is
contingent on satisfactory reference checks.

- 4 -

 

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ SUDHIR AGRAWAL
 

Sudhir Agrawal
	 	 
	 

	 	Title:
	 	CEO	 	 

The foregoing correctly sets forth the terms of my employment with Idera Pharmaceuticals, Inc. I
am not relying on any representations other than as set forth above.

	 	 	 	 	 
	/s/ LOUIS J. ARCUDI, III
 

Name: Louis J. Arcudi, III

	 	Date: 11/8/07
	 	 

- 5 -

 

Exhibit A

- 6 -

 

INVENTION, NON-DISCLOSURE AND NON-COMPETITION AGREEMENT

     IN CONSIDERATION of my being engaged as an employee of Idera Pharmaceuticals, Inc., a Delaware
corporation, having an address at 167 Sidney Street, Cambridge, Massachusetts 02139 (“Idera”), and
for other valuable consideration, the receipt and sufficiency of which are acknowledged, I agree as
follows:

1. Confidential Information.

     (a) I agree that all materials and information, whether or not in writing, of a private,
secret or confidential nature concerning Idera’s technology, business or financial affairs
(collectively, “Confidential Information“) is and shall be the exclusive property of Idera. I will
not disclose any Confidential Information to others outside Idera or use the same for any purposes
(other than in the performance of my duties as an employee of or consultant to Idera) without the
prior written approval of a senior executive officer of Idera, either during or after my employment
or consultancy, unless and until such Confidential Information has become public knowledge without
fault by me.

     (b) By way of illustration, and not limitation, Confidential Information shall include,
whether tangible or electronic version: all inventions, discoveries, improvements, methods,
developments, ideas, research plans and results, nucleic acid sequences, software, models, methods,
notebooks (either paper copy or electronic copy), practices, systems, plans, policies, formulas,
designs, products, projects and know-how which Idera owns, controls or has access to or which
relate to Idera’s technology or business; all information pertaining to the financial condition,
business affairs or prospects of Idera; and all supplier, client or customer lists of Idera.

     (c) All tangible materials, either in paper form or electronic form, containing Confidential
Information or copies thereof and all tangible property of Idera in my custody or possession shall
be delivered to Idera upon the earlier of (i) a request by Idera or (ii) termination of my
employment or consultancy. After such delivery, I shall not retain any such materials or copies
thereof or any such tangible property.

     (d) I agree that my obligation not to disclose or to use information and materials of the
types set forth in paragraphs (a) and (b) above, and my obligation to return materials and tangible
property set forth in paragraph (c) above, also extends to such types of information, materials and
tangible property of customers of Idera or suppliers to Idera or other third parties who may have
disclosed or entrusted the same to Idera or to me in the course of Idera’s business.

2. Developments.

     (a) I will make full and prompt disclosure to Idera of all inventions, improvements,
discoveries, methods, developments, software and works of authorship, whether or not patentable or
copyrightable, which are created, made, conceived or reduced to practice by me or

Page 1 

 

under my direction or jointly with others in the course of my employment or consultancy with Idera,
whether or not during normal working hours or on the premises of Idera (all of which are
collectively referred to in this Agreement as “Developments”).

     (b) I agree to assign and do hereby assign to Idera (or any person or entity designated by
Idera) all my right, title and interest in and to all Developments and all related patents, patent
applications, certificates of invention, applications for certificates of invention, utility
models, applications for utility models, copyrights, copyright applications and other industrial
and intellectual property rights. I also hereby agree to waive and do hereby waive all claims to
moral rights in all Developments.

     (c) I agree to cooperate fully with Idera, both during and after my employment or consultancy
with Idera, with respect to the procurement, maintenance and enforcement of copyrights, patents and
other industrial and intellectual property rights (both in the United States and foreign countries)
relating to Developments. Idera will reimburse you for all reasonable and necessary expenses
incurred or paid you in connection with the performance of such services to procure, maintain or
enforce any of Idera’s property rights in relation to this subsection.

3. Other Agreements.

     (a) I represent that my performance of all the terms of this Agreement and as an employee of
or consultant to Idera does not and will not breach any agreement to refrain from competing,
directly or indirectly, with the business of any previous employer or any other party nor any
agreement to keep in confidence information, knowledge or data acquired by me in confidence or in
trust prior to my employment or consultancy with Idera. I will not disclose to Idera or induce
Idera to use any confidential or proprietary information or material belonging to any previous
employer or others. I will not hereafter grant anyone any rights inconsistent with the terms of
this Agreement.

     (b) I represent that I am not under investigation by the FDA or other regulatory authority for
debarment action, nor have I been debarred pursuant to the Generic Drug Enforcement Act of 1992 (21
U.S.C. 301 et seq.) or any analogous law or statute.

4. United States Government Obligations.

     I acknowledge that Idera from time to time may have agreements with other persons or with the
United States Government, or agencies thereof, which impose obligations or restrictions on Idera
regarding inventions made during the course of work under such agreements or regarding the
confidential nature of such work. I agree to be bound by all such obligations and restrictions and
to take all action necessary to discharge the obligations of Idera under such agreements.

     5. Non-Compete.

Page 2 

 

During the period of my employment by or engagement as a consultant to Idera and for a period of
one (1) year following the date of termination or expiration thereof, I will not directly or
indirectly:

          (i) as an individual proprietor, partner, stockholder, officer, employee, director, joint
venturer, investor, lender or in any other capacity whatsoever (other than as the holder of not
more than one percent (1%) of the total outstanding stock of a publicly held company), engage in
developing, producing, performing, marketing or selling oligonucleotide-based products, processes
or services for or on behalf of any entity whose principal business is creating or developing
oligonucleotide-based products or therapeutics; or

          (ii) recruit, solicit or induce, or attempt to induce, any employee, agent, consultant or
contractor of Idera to terminate his, her or its employment with, or otherwise cease his, her or
its relationship with, Idera; or

          (iii) solicit, divert or take away, or attempt to divert or to take away, the business or
patronage of any of the clients, customers or accounts, or prospective clients, customers or
accounts, of Idera which are contacted solicited or served by me while employed by or engaged as a
consultant to Idera.

6. General.

     (a) This Agreement sets forth the entire agreement, and supersedes all prior agreements,
whether written or oral, between me and Idera relating to the subject matter of this Agreement.
This Agreement may not be modified, changed or discharged in whole or in part, except by an
agreement in writing signed by me and Idera.

     (b) This Agreement will be binding upon my heirs, executors and administrators and will inure
to the benefit of Idera and its successors and assigns.

     (c) This Agreement is governed by and will be construed as a sealed instrument under and in
accordance with the laws of the Commonwealth of Massachusetts, without giving effect to conflict of
laws provisions.

     (d) This Agreement does not constitute a contract of employment or consultancy and does not
imply that my employment or consultancy will continue for any period of time. I agree that any
change or changes in my position, duties, salary or compensation after the signing of this
Agreement will not affect the validity or scope of this Agreement.

     (e) I understand and agree that my obligations under this Agreement shall be effective as of
the date of commencement of my employment or consultancy and shall survive any expiration or
termination of my employment or consultancy. I further understand and agree that this Agreement
shall remain in effect and my obligations under this Agreement shall remain applicable following
any change in my status from that of an employee to that of a consultant

Page 3 

 

and vice versa, without any need for me to acknowledge or sign a new agreement and without any need
for additional consideration.

     (f) If any term or provision of this Agreement is found by any court of competent jurisdiction
to be invalid or unenforceable to any extent or in any application, such term or provision shall be
interpreted so as to be valid and enforceable to the fullest extent and in the broadest application
permitted by law, and all of the terms and provisions of this Agreement shall not otherwise be
affected thereby.

     (g) I agree that the restrictions contained in this Agreement are necessary for the protection
of the business and goodwill of Idera and are reasonable for such purpose. I agree that any breach
of this Agreement will cause Idera substantial and irreparable harm and, therefore, in the event of
any such breach, in addition to such other remedies which may be available, Idera shall have the
right to seek specific performance and other injunctive and equitable relief.

     I HAVE READ ALL OF THE PROVISIONS OF THIS AGREEMENT AND I UNDERSTAND, AND AGREE TO, EACH OF
SUCH PROVISIONS.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Signature of Employee	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Printed Name	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Date:                                         	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	AGREED AND ACCEPTED:	 	 	 	Signature	 	 
	IDERA PHARMACEUTICALS, INC.	 	 	 	 	 	 
	 

	 	 	 	 	 	 

Printed Name
	 	 
	By:
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Title:
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	WITNESS:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

Page 4EX-10.2

EXHIBIT 10.2

FORM OF ADVISORY AGREEMENT

AMONG

TNP STRATEGIC RETAIL TRUST, INC.,

TNP STRATEGIC RETAIL OPERATING PARTNERSHIP, LP,

AND

TNP STRATEGIC RETAIL ADVISOR, LLC

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	1.

	 	Definitions
	 	 	1	 
	 
	 	 	 	 	 	 
	2.

	 	Appointment
	 	 	8	 
	 
	 	 	 	 	 	 
	3.

	 	Duties of the Advisor
	 	 	8	 
	 
	 	 	 	 	 	 
	4.

	 	Authority of Advisor
	 	 	10	 
	 
	 	 	 	 	 	 
	5.

	 	Bank Accounts
	 	 	10	 
	 
	 	 	 	 	 	 
	6.

	 	Records; Access
	 	 	11	 
	 
	 	 	 	 	 	 
	7.

	 	Limitations on Activities
	 	 	11	 
	 
	 	 	 	 	 	 
	8.

	 	Relationship with Director
	 	 	11	 
	 
	 	 	 	 	 	 
	9.

	 	Fees
	 	 	11	 
	 
	 	 	 	 	 	 
	10.

	 	Expenses
	 	 	13	 
	 
	 	 	 	 	 	 
	11.

	 	Other Services
	 	 	15	 
	 
	 	 	 	 	 	 
	12.

	 	Reimbursement to the Advisor
	 	 	15	 
	 
	 	 	 	 	 	 
	13.

	 	Business Combination
	 	 	15	 
	 
	 	 	 	 	 	 
	14.

	 	Other Activities of the Advisor
	 	 	16	 
	 
	 	 	 	 	 	 
	15.

	 	Term of Agreement
	 	 	17	 
	 
	 	 	 	 	 	 
	16.

	 	Termination by the Parties
	 	 	17	 
	 
	 	 	 	 	 	 
	17.

	 	Assignment to an Affiliate
	 	 	17	 
	 
	 	 	 	 	 	 
	18.

	 	Payments to and duties of Advisor Upon Termination
	 	 	17	 
	 
	 	 	 	 	 	 
	19.

	 	Indemnification by the Company and the Operating Partnership
	 	 	18	 
	 
	 	 	 	 	 	 
	20.

	 	Indemnification by Advisor
	 	 	19	 
	 
	 	 	 	 	 	 
	21.

	 	Notices
	 	 	19	 
	 
	 	 	 	 	 	 
	22.

	 	Modification
	 	 	20	 
	 
	 	 	 	 	 	 
	23.

	 	Severability
	 	 	20	 
	 
	 	 	 	 	 	 
	24.

	 	Construction
	 	 	20	 

 

 

	 	 	 	 	 	 	 
	25.

	 	Entire Agreement
	 	 	20	 
	 
	 	 	 	 	 	 
	26.

	 	Indulgences, Not Waivers
	 	 	21	 
	 
	 	 	 	 	 	 
	27.

	 	Gender
	 	 	21	 
	 
	 	 	 	 	 	 
	28.

	 	Titles Not to Affect Interpretation
	 	 	21	 
	 
	 	 	 	 	 	 
	29.

	 	Execution in Counterparts
	 	 	21	 

- 3 -

 

ADVISORY AGREEMENT

     THIS ADVISORY AGREEMENT (this “Agreement”), dated as of the                      day of                     , 2008,
and effective as of the date that that the Registration Statement (as defined below) is declared
effective by the Securities and Exchange Commission (the “Effective Date”), is entered into
by and among TNP Strategic Retail Trust, Inc., a Maryland corporation (the “Company”), TNP
Strategic Retail Operating Partnership, LP, a Delaware limited partnership (the “Operating
Partnership”), and TNP Strategic Retail Advisor, LLC, a Delaware limited liability company (the
“Advisor”). Capitalized terms used herein shall have the meanings ascribed to them in
Section 1 below.

W I T N E S S E T H

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

     WHEREAS, the Company is the general partner of the Operating Partnership and intends to
conduct all of its business and make all Investments through 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 of the Advisor and to
have the Advisor undertake the duties and responsibilities hereinafter set forth, on behalf of, and
subject to the supervision of the Board, all as provided herein; and

     WHEREAS, the Advisor is willing to undertake to render such services, subject to the
supervision of the Board, 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, intending to be legally bound, hereby agree as follows:

     1. DEFINITIONS. As used in this Agreement, the following terms have the definitions
hereinafter indicated:

     Acquisition Expenses. Any and all expenses, exclusive of Acquisition Fees, incurred
by the Company, the Operating Partnership, the Advisor, or any of their Affiliates in connection
with the selection, evaluation, acquisition, origination, making or development of any Investments,
whether or not acquired, including, without limitation, legal fees and expenses, travel and
communications expenses, costs of appraisals, nonrefundable option payments on property not
acquired, accounting fees and expenses, title insurance premiums, and the costs of performing due
diligence.

     Acquisition Fees. 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, the Operating Partnership or the Advisor) in connection with the
purchase, development or construction of any Real Estate Asset or other Investment,

 

 

including real estate commissions, selection fees, development fees, construction fees,
nonrecurring management fees, loan fees, points or any other fees of a similar nature. Excluded
shall be (i) Origination Fees and (ii) development fees and construction fees paid to any Person
not affiliated with the Sponsor in connection with the actual development and construction of a
project.

     Advisor. Advisor shall mean TNP Strategic Retail Advisor, LLC, a Delaware limited
liability company, any successor advisor to the Company, the Operating Partnership or any Person to
which TNP Strategic Retail Advisor, LLC or any successor advisor subcontracts substantially all of
its functions. Notwithstanding the foregoing, a Person hired or retained by TNP Strategic Retail
Advisor, LLC to perform property management and related services for the Company or the Operating
Partnership that is not hired or retained to perform substantially all of the functions of TNP
Strategic Retail Advisor, LLC with respect to the Company or the Operating Partnership as a whole
shall not be deemed to be an Advisor.

     Affiliate or Affiliated. With respect to any Person, (i) any Person directly or
indirectly owning, controlling or holding, with the power to vote, ten percent (10%) or more of the
outstanding voting securities of such other Person; (ii) any Person ten percent (10%) or more of
whose outstanding voting securities are directly or indirectly owned, controlled or held, with the
power to vote, by such other Person; (iii) any Person directly or indirectly controlling,
controlled by or under common control with such other Person; (iv) any executive officer, director,
trustee or general partner of such other Person; and (v) any legal entity for which such Person
acts as an executive officer, director, trustee or general partner.

     Articles of Incorporation. The Articles of Incorporation of the Company, as amended
from time to time.

     Asset Management Fee. The term “Asset Management Fee” shall mean the fee payable to
the Advisor pursuant to Section 9(e).

     Average Invested Assets. For a specified period, the average of the aggregate book
value of the assets of the Company invested, directly or indirectly, in Investments before
deducting depreciation, bad debts or other non-cash reserves, computed by taking the average of
such values at the end of each month during such period.

     Board. The individuals holding such office, as of any particular time, under the
Articles of Incorporation, whether they be the Directors named therein or additional or successor
Directors.

     Bylaws. The bylaws of the Company, as the same are in effect from time to time.

     Cause. With respect to the termination of this Agreement, fraud, criminal conduct,
misconduct or negligent breach of fiduciary duty by the Advisor, or a material breach of this
Agreement by the Advisor.

- 2 -

 

     Code. 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.

     Company. Company shall mean TNP Strategic Retail Trust, Inc., a Maryland corporation.

     Contract Sales Price. The total consideration received by the Company for the sale of
an Investment.

     Dealer
Manager. TNP Securities, LLC, or such other Person or entity selected by
the Board to act as the dealer manager for the Offering.

     Dealer Manager Fee. 3.0% of Gross Proceeds from the sale of Shares in the Primary
Offering, payable to the Dealer Manager for serving as the dealer manager of such Offering.

     Director. A member of the Board of Directors of the Company.

     Disposition Fee. The term “Disposition Fee” shall mean the fees payable to the
Advisor pursuant to Section 9(d).

     Distributions. Any distributions of money or other property by the Company to
Stockholders, including distributions that may constitute a return of capital for federal income
tax purposes.

     Effective Date. Effective Date shall have the meaning set forth in the preamble.

     Excess Amount. Excess Amount shall have the meaning set forth in Section 12.

     Expense Year. Expense Year shall have the meaning set forth in Section 12.

     Funds From Operations. As defined by the National Association of Real Estate
Investment Trusts, Funds From Operations means net income computed in accordance with GAAP,
excluding gains (or losses) from sales of property, plus depreciation and amortization, and after
adjustments for unconsolidated partnerships and joint ventures in which the a REIT holds an
interest.

     GAAP. Generally accepted accounting principles as in effect in the United States of
America from time to time.

     Good Reason. Either, (i) any failure to obtain a satisfactory agreement from any
successor to the Company or the Operating Partnership to assume and agree to perform the Company’s
or the Operating Partnership’s obligations under this Agreement; or (ii) any material breach of
this Agreement of any nature whatsoever by the Company or the Operating Partnership.

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     Gross Proceeds. The aggregate purchase price of all Shares sold for the account of
the Company through all Offerings, without deduction for Sales Commissions, volume discounts, any
marketing support and due diligence expense reimbursement or Organization and Offering Expenses.
For the purpose of computing Gross Proceeds, the purchase price of any Share for which reduced
Sales Commissions are paid to the Dealer Manager or a Soliciting Dealer (where net proceeds to the
Company are not reduced) shall be deemed to be the full amount of the offering price per Share
pursuant to the Prospectus for such Offering without reduction.

     Indemnitee. The terms “Indemnitee” and “Indemnitees” shall have the meaning set forth
in Section 19.

     Independent Director. Independent Director shall have the meaning set forth in the
Articles of Incorporation.

     Invested Capital. The original issue price paid for the Shares reduced by prior
Distributions from the sale or financing of the Investments.

     Investments. Any investments by the Company or the Operating Partnership in Real
Estate Assets, Real Estate Related Loans or any other asset.

     Joint Ventures. The joint venture or partnership arrangements (other than with the
Operating Partnership) in which the Company or any of its subsidiaries is a co-venturer or general
partner which are established to own Investments.

     Listing. The listing of the Shares on a national securities exchange or the receipt
by the Stockholders of securities that are listed on a national securities exchange in exchange for
the Company’s common stock. Upon such Listing, the Shares shall be deemed “Listed.”

     Loans. Any indebtedness or obligations in respect of borrowed money or evidenced by
bonds, notes, debentures, deeds of trust, letters of credit or similar instruments, including
mortgages and mezzanine loans.

     NASAA REIT Guidelines. The Statement of Policy Regarding Real Estate Investment
Trusts published by the North American Securities Administrators Association on May 7, 2007, as may
be amended from time to time.

     Net Income. For any period, the Company’s total revenues applicable to such period,
less the total expenses applicable to such period other than additions to reserves for
depreciation, bad debts or other similar non-cash reserves and excluding any gain from the sale of
the Company’s assets.

     Offering. The public offering of Shares pursuant to a Prospectus.

     Operating Partnership. Operating Partnership shall mean TNP Strategic Retail
Operating Partnership, LP, a Delaware limited partnership.

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     Operating Partnership Agreement. The Operating Partnership Agreement among the
Company, the Advisor and TNP Strategic Retail OP Holdings, LLC.

     OP Units. Units of limited partnership interest in the Operating Partnership.

     Organization and Offering Expenses. Organization and Offering Expenses means all
expenses (other than the Sales Commission and the Dealer Manager Fee) to be paid by the Company in
connection with the Offering, including legal, accounting, printing, mailing and filing fees,
charges of the escrow holder and transfer agent, charges of the Advisor for administrative services
related to the issuance of Shares in the Offering, reimbursement of bona fide due diligence
expenses of broker-dealers, reimbursement of the Advisor for costs in connection with preparing
supplemental sales materials, the cost of bona fide training and education meetings held by the
Company (primarily the travel, meal and lodging costs of the registered representatives of
broker-dealers), attendance and sponsorship fees and cost reimbursement for employees of the
Company’s Affiliates to attend retail seminars conducted by broker-dealers and, in special cases,
reimbursement to participating broker-dealers for technology costs associated with the Offering,
costs and expenses related to such technology costs, and costs and expenses associated with
facilitation of the marketing of the Shares and the ownership of Shares by such broker-dealer’s
customers.

     Origination Fees. The term “Origination Fees” shall mean the fees payable to the
Advisor pursuant to Section 9(b).

     Person. An individual, corporation, partnership, trust, joint venture, limited
liability company or other entity.

     Primary Offering. The portion of an Offering other than the Shares offered pursuant
to the Company’s distribution reinvestment plan.

     Private Placement. Any offering of undivided tenant-in-common (TIC) interests in Real
Property acquired by the Operating Partnership, whereby such TIC interests may be eligible for
“like kind exchange” pursuant to Section 1031 of the Code.

     Prospectus. A “Prospectus” under Section 2(10) of the Securities Act of 1933, as
amended (the “Securities Act”), including a preliminary Prospectus, an offering circular as
described in Rule 253 of the General Rules and Regulations under the Securities Act or, in the case
of an intrastate offering, any document by whatever name known, utilized for the purpose of
offering and selling securities to the public.

     Real Estate Assets. Any investment by the Company or the Operating Partnership in
unimproved and improved Real Property (including, without limitation, fee or leasehold interests,
options and leases) either directly or through a Joint Venture.

     Real Estate Related Loans. Any investments in, or origination of, mortgage loans and
other types of real estate related debt financing, including, without limitation, mezzanine loans,

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bridge loans, convertible mortgages, wraparound mortgage loans, construction mortgage loans,
loans on leasehold interests and participations in such loans, by the Company or the Operating
Partnership.

     Real Property. Real property owned from time to time by the Company or the Operating
Partnership, either directly or through joint venture arrangements or other partnerships, which
consists of (i) land only, (ii) land, including the buildings located thereon, (iii) buildings only
or (iv) such investments the Board and the Advisor mutually designate as Real Property to the
extent such investments could be classified as Real Property.

     Registration Statement. Registration Statement shall mean the Company’s registration
statement on Form S-11 (Registration Number
333- ), as amended from time to time, to offer and sell
to the public on a continuous basis up to 110,526,316 Shares originally filed with the Securities
and Exchange Commission on                     , 2008.

     REIT. A “real estate investment trust” under Sections 856 through 860 of the Code.

     Sale or Sales. Any transaction or series of transactions whereby: (A) the Company or
the Operating Partnership directly or indirectly (except as described in other subsections of this
definition) sells, grants, transfers, conveys, or relinquishes its ownership of any Real Property
or portion thereof, including the lease of any Real Property consisting of a building only, and
including any event with respect to any Real Property which gives rise to a significant amount of
insurance proceeds or condemnation awards; (B) the Company or the Operating Partnership directly or
indirectly (except as described in other subsections of this definition) sells, grants, transfers,
conveys, or relinquishes its ownership of all or substantially all of the interest of the Company
or the Operating Partnership in any Joint Venture in which it is a co-venturer or partner; (C) any
Joint Venture directly or indirectly (except as described in other subsections of this definition)
in which the Company or the Operating Partnership as a co-venturer or partner sells, grants,
transfers, conveys, or relinquishes its ownership of any Real Property or portion thereof,
including any event with respect to any Real Property which gives rise to insurance claims or
condemnation awards; or (D) the Company or the Operating Partnership directly or indirectly (except
as described in other subsections of this definition) sells, grants, conveys or relinquishes its
interest in any Real Estate Related Loans or portion thereof (including with respect to any Real
Estate Related Loan, all payments thereunder or in satisfaction thereof other than regularly
scheduled interest payments) and any event which gives rise to a significant amount of insurance
proceeds or similar awards; or (E) the Company or the Operating Partnership directly or indirectly
(except as described in other subsections of this definition) sells, grants, transfers, conveys, or
relinquishes its ownership of any other asset not previously described in this definition or any
portion thereof, but not including any transaction or series of transactions specified in clauses
(A) through (E) above in which the proceeds of such transaction or series of transactions are
reinvested by the Company in one or more assets within 180 days thereafter.

     Sales Commission. 7.0% of Gross Proceeds from the sale of Shares in the Primary
Offering payable to the Dealer Manager and reallowable to Soliciting Dealers with respect to Shares
sold by them.

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     Shares. The shares of the Company’s common stock, par value $0.01 per share.

     Soliciting Dealers. Broker-dealers who are members of the Financial Industry
Regulatory Authority Inc., or that are exempt from broker-dealer registration, and who, in either
case, have executed participating dealer or other agreements with the Dealer Manager to sell
Shares.

     Special Committee. The term “Special Committee” shall have the meaning as provided in
Section 14(a).

     Special OP Units. The separate series of limited partnership interests to be issued
in accordance with Section 9(g).

     Sponsor. Sponsor shall mean Thompson National Properties, LLC, a Delaware limited
liability company.

     Stockholders. The registered holders of the Shares.

     Termination Date. The date of termination of this Agreement.

     Termination Event. The termination or nonrenewal of this Agreement (i) in connection
with a merger, sale of assets or transaction involving the Company pursuant to which a majority of
the Directors then in office are replaced or removed, (ii) by the Advisor for Good Reason or (iii)
by the Company and the Operating Partnership other than for Cause.

     Total Operating Expenses. All costs and expenses paid or incurred by the Company, as
determined under GAAP, that are in any way related to the operation of the Company or its business,
including asset management fees and other fees paid to the Advisor, but excluding (i) the expenses
of raising capital such as Organization 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, (ii) interest payments, (iii) taxes, (iv) non-cash expenditures such as depreciation,
amortization and bad debt reserves, (v) incentive fees paid in compliance with the NASAA REIT
Guidelines; (vi) Acquisition Fees, Origination Fees and Acquisition Expenses, (vii) Disposition
Fees on the Sale of Real Property, and (viii) other fees and expenses connected with the
acquisition, disposition, management and ownership of real estate interests, mortgages or other
property (including the costs of foreclosure, insurance premiums, legal services, maintenance,
repair, and improvement of property). The definition of “Total Operating Expenses” set forth above
is intended to encompass only those expenses which are required to be treated as Total 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 part of Total Operating Expenses under the
NASAA REIT Guidelines shall not be treated as part of Total Operating Expenses for purposes hereof.

- 7 -

 

     2%/25% Guidelines. 2%/25% Guidelines shall have the meaning set forth in Section 12.

     2. APPOINTMENT. The Company and the Operating Partnership hereby appoint the Advisor to serve
as their advisor on the terms and conditions set forth in this Agreement, and the Advisor hereby
accepts such appointment.

     3. DUTIES OF THE ADVISOR. As of the Effective Date, the Advisor undertakes to use its 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.
In performance of this undertaking, subject to the supervision of the Board and consistent with the
provisions of the Articles of Incorporation and Bylaws of the Company and the Operating Partnership
Agreement, the Advisor shall, either directly or by engaging an Affiliate:

          (a) serve as the Company’s and the Operating Partnership’s investment and financial advisor;

          (b) provide the daily management for the Company and the Operating Partnership and perform and
supervise the various administrative functions reasonably necessary for the management of the
Company and the Operating Partnership;

          (c) investigate, select, and, on behalf of the Company and the Operating Partnership, 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, correspondents,
lenders, technical advisors, attorneys, brokers, underwriters, corporate fiduciaries, escrow
agents, depositaries, custodians, agents for collection, insurers, insurance agents, banks,
builders, developers, property owners, real estate management companies, real estate operating
companies, securities investment advisors, mortgagors, and any and all agents for any of the
foregoing, including Affiliates of the Advisor, and Persons acting in any other capacity deemed by
the Advisor necessary or desirable for the performance of any of the foregoing services, including,
but not limited to, entering into contracts in the name of the Company and the Operating
Partnership with any of the foregoing;

          (d) consult with the officers and Directors of the Company and assist the Directors in the
formulation and implementation of the Company’s financial policies, and, as necessary, furnish the
Board with advice and recommendations with respect to the making of investments consistent with the
investment objectives and policies of the Company and in connection with any borrowings proposed to
be undertaken by the Company or the Operating Partnership;

          (e) subject to the provisions of Section 4 hereof, (i) participate in formulating an
investment strategy and asset allocation framework, (ii) locate, analyze and select potential
Investments, (iii) structure and negotiate the terms and conditions of transactions pursuant to
which acquisitions and dispositions of Investments will be made; (iv) research, identify, review

- 8 -

 

and recommend acquisitions and dispositions of Investments to the Board and make Investments
on behalf of the Company and the Operating Partnership in compliance with the investment objectives
and policies of the Company; (v) arrange for financing and refinancing and make other changes in
the asset or capital structure of, and dispose of, reinvest the proceeds from the sale of, or
otherwise deal with, Investments; (vi) enter into leases and service contracts for Real Estate
Assets and, to the extent necessary, perform all other operational functions for the maintenance
and administration of such Real Estate Assets; (vii) actively oversee and manage Investments for
purposes of meeting the Company’s investment objectives; (viii) select Joint Venture partners,
structure corresponding agreements and oversee and monitor these relationships; (ix) oversee
Affiliated and non-Affiliated property managers who perform services for the Company or the
Operating Partnership; (x) oversee Affiliated and non-Affiliated Persons with whom the Advisor
contracts to perform certain of the services required to be performed under this Agreement; (xi)
manage accounting and other record-keeping functions for the Company and the Operating Partnership;
and (xii) recommend various liquidity events to the Board when appropriate;

          (f) upon request, provide the Board with periodic reports regarding prospective investments;

          (g) make investments in, and dispositions of, Investments within the discretionary limits and
authority as granted by the Board;

          (h) negotiate on behalf of the Company and the Operating Partnership with banks or lenders for
Loans to be made to the Company and the Operating Partnership, and negotiate on behalf of the
Company and the Operating Partnership with investment banking firms and broker-dealers or negotiate
private sales of Shares or obtain Loans for the Company and the Operating Partnership, but in no
event in such a way so that the Advisor shall be acting as broker-dealer or underwriter; and
provided, further, that any fees and costs payable to third parties incurred by the Advisor in
connection with the foregoing shall be the responsibility of the Company or the Operating
Partnership;

          (i) obtain reports (which may, but are not required to, be prepared by the Advisor or its
Affiliates), where appropriate, concerning the value of Investments or contemplated investments of
the Company and the Operating Partnership;

          (j) from time to time, or at any time reasonably requested by the Board, make reports to the
Board of its performance of services to the Company and the Operating Partnership under this
Agreement, including reports with respect to potential conflicts of interest involving the Advisor
or any of its Affiliates;

          (k) provide the Company and the Operating Partnership with all necessary cash management
services;

          (l) do all things necessary to assure its ability to render the services described in this
Agreement;

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          (m) deliver to, or maintain on behalf of, the Company copies of all appraisals obtained in
connection with the investments in any Real Estate Assets as may be required to be obtained by the
Board;

          (n) notify the Board of all proposed material transactions before they are completed; and

          (o) effect any private placement of OP Units, tenancy-in-common (TIC) or other interests in
Investments as may be approved by the Board.

     Notwithstanding the foregoing, the Advisor may delegate any of the foregoing duties to any
Person so long as the Advisor or any Affiliate remains responsible for the performance of the
duties set forth in this Section 3.

     4. AUTHORITY OF ADVISOR.

          (a) Pursuant to the terms of this Agreement (including the restrictions included in this
Section 4 and in Section 7), and subject to the continuing and exclusive authority of the Board
over the management of the Company, the Board hereby delegates to the Advisor the authority to
perform the services described in Section 3.

          (b) Notwithstanding the foregoing, any investment in Real Estate Assets, including any
financing thereof, will require the prior approval of the Board, any particular Directors specified
by the Board or any committee of the Board, as the case may be.

          (c) If a transaction requires approval by the Independent Directors, the Advisor will deliver
to the Independent Directors all documents and other information required by them to properly
evaluate the proposed transaction.

          (d) The prior approval of a majority of the Independent Directors not otherwise interested in
the transaction and a majority of the Board not otherwise interested in the transaction will be
required for each transaction to which the Advisor or its Affiliates is a party.

          (e) The Board may, at any time upon the giving of notice to the Advisor, modify or revoke the
authority set forth in this Section 4; 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 prior to
the date of receipt by the Advisor of such notification.

     5. 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 in the name of the Company and
the Operating Partnership 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, 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

- 10 -

 

Advisor shall from time to time render appropriate accountings of such collections and payments to the Board and to the
auditors of the Company.

     6. RECORDS; ACCESS. The Advisor shall maintain appropriate records of all its activities
hereunder and make such records available for inspection by the Directors and by counsel, auditors
and authorized agents of the Company, at any time or from time to time during normal business
hours. The Advisor shall at all reasonable times have access to the books and records of the
Company and the Operating Partnership.

     7. LIMITATIONS ON ACTIVITIES. Anything else in this 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, or (c) violate any law,
rule, regulation or statement of policy of any governmental body or agency having jurisdiction over
the Company or its Shares, or otherwise not be permitted by the Articles of Incorporation or Bylaws
of the Company, 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
directors, officers, employees and members, and the partners, directors, officers, members and
stockholders of the Advisor’s Affiliates shall not be liable to the Company or to the Directors or
Stockholders for any act or omission by the Advisor, its directors, officers, employees, or
members, and the partners, directors, officers, members or stockholders of the Advisor’s Affiliates
taken or omitted to be taken in the performance of their duties under this Agreement except as
provided in Section 20 of this Agreement.

     8. RELATIONSHIP WITH DIRECTORS. Subject to Section 7 of this Agreement and to restrictions
advisable with respect to the qualification of the Company as a REIT, directors, officers and
employees of the Advisor or an Affiliate of the Advisor or any corporate parent of an Affiliate,
may serve as a Director and as officers of the Company, except that no director, 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
Board and no such Director shall be deemed an Independent Director for purposes of satisfying the
Director independence requirement set forth in the Articles of Incorporation.

     9. FEES.

          (a) Acquisition Fees. The Advisor shall receive an Acquisition Fee payable by the
Company as compensation for services rendered in connection with the investigation, selection and
acquisition (by purchase, investment or exchange) of Investments. The total Acquisition Fees
payable to the Advisor or its Affiliates shall equal 2.5% of the cost of all Investments, including Acquisition Expenses and any debt attributed to such investments. With

- 11 -

 

respect to investments in and origination of Real Estate Related Loans, the Company will pay the
Advisor an Origination Fee in lieu of the Acquisition Fee. With respect to the acquisition of Real
Estate Assets through a Joint Venture, the Acquisition Fee payable by the Company to the Advisor
shall equal 2.5% of the Company’s allocable cost of such Real Estate Assets, including Acquisition
Expenses and any debt attributed to such Investments. The Advisor shall submit an invoice to the
Company following the closing or closings of each Investment, accompanied by a computation of the
Acquisition Fee. The Company shall pay the Acquisition Fee promptly following receipt of the
invoice. [Notwithstanding the foregoing, the Advisor will not receive an Acquisition Fee for any
Investments the Company acquires from one of its Affiliates.]

          (b) Origination Fees. As compensation for the investigation, selection, sourcing and
acquisition or origination of Real Estate Related Loans, the Company shall pay an Origination Fee
to the Advisor for each such acquisition or origination equal to 2.5% of the amount funded by the
Company to acquire or originate the Real Estate Related Loan, including any Acquisition Expenses
related to such investment and any debt used to fund the acquisition or origination of the Real
Estate Related Loan. The Company will not pay an Origination Fee to the Advisor with respect to any
transaction pursuant to which the Company is required to pay the Advisor an Acquisition Fee.
Notwithstanding anything herein to the contrary, the payment of Origination Fees by the Company
shall be subject to the limitations on Acquisition Fees contained in the Company’s Articles of
Incorporation. The Advisor shall submit an invoice to the Company following the closing or closings
of each Real Estate Related Loan, accompanied by a computation of the Origination Fee. The Company
shall pay the Origination Fee to the Advisor promptly following receipt of the invoice.
[Notwithstanding the foregoing, the Advisor will not receive an Origination Fee for any Investments
the Company acquires from one of its Affiliates.]

          (c) Limitation on Total Acquisition Fees, Origination Fees and Acquisition Expenses.
Pursuant to the NASAA REIT Guidelines, the total of all Acquisition Fees, Origination Fees and
Acquisition Expenses payable in connection with any Investment shall not exceed 6.0% of the
“contract purchase price,” as defined in the Articles of Incorporation, of the Investment acquired.

          (d) Disposition Fee. In connection with a Sale in which the Advisor or any Affiliate
of the Advisor provides a substantial amount of services, as determined by the Independent
Directors, the Company shall pay to the Advisor or its Affiliate a Disposition Fee of up to 50.0%
of a customary and competitive real estate commission, but not to exceed 3.0% of the Contract Sales
Price. With respect to the Sale of Investments held through a Joint Venture, the Disposition Fee
payable by the Company to the Advisor shall be reduced to a percentage of the Disposition Fee
proportionate to the Company’s interest in such Joint Venture. Any Disposition Fee payable under
this Section 9(d) 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 for the Sale of each Investment shall not exceed 6.0% of the Contract Sales
Price.

          (e) Asset Management Fee. The Advisor shall receive the Asset Management Fee as
compensation for services rendered in connection with the management of the Company’s assets. The
Asset Management Fee shall be equal to a monthly fee of one-twelfth (1/12th) of 0.6% of
the higher of (i) aggregate cost (before non-cash reserves and depreciation) of all Investments the Company owns, including Acquisition Fees, Origination

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Fees, acquisition and origination expenses and any debt attributable to such Investments or (ii)
the fair market value of Investments (before non-cash reserves and deprecation); provided, however,
that the Asset Management Fee will accrue and will not be due and payable to the Advisor until the
Company’s Funds From Operations exceed the lesser of (1) the cumulative amount of any Distributions
declared and payable to Stockholders (other than Distributions of the proceeds of the Sale of an
Investment that have not been reinvested) or (2) an amount that is equal to a 10.0% cumulative,
non-compounded, annual return on Invested Capital for the Stockholders. With the exception of any
portion of the Asset Management Fee related to the disposition of Investments, which shall be
payable at the time of such disposition and prorated based on the number of days such Investment
was managed by the Advisor before disposition, the Asset Management Fee shall be calculated as of
the last business day of each month during the term and of this Agreement payable in arrears on the
first business day of each month.

          (f) Private Placement Fee. The Operating Partnership shall reimburse the Advisor for
all offering and marketing related expenses incurred on the Company’s or the Operating
Partnership’s behalf in connection with any Private Placement up to 2.0% of the gross proceeds of
such Private Placement.

          (g) Operating Partnership Interests. The Advisor has made a capital contribution of
$1,000 to the Operating Partnership in exchange for OP Units. In addition, an Affiliate of the
Advisor has made a capital contribution of $1,000 to the Operating Partnership in exchange for
Special OP Units. Upon the earliest to occur of the termination of this Agreement for Cause, a
Termination Event or a Listing, all of the Special OP Units shall be redeemed by the Operating
Partnership in accordance with the terms of the Operating Partnership Agreement.

          (h) Exclusion of Certain Transactions. In the event the Company or the Operating
Partnership shall propose to enter into any transaction in which the Advisor, any Affiliate of the
Advisor or any of the Advisor’s directors or officers has a direct or indirect interest, then such
transaction shall be approved by a majority of the members of the Board not otherwise interested in
such transaction, including a majority of the Independent Directors.

     10. EXPENSES.

          (a) In addition to the compensation paid to the Advisor pursuant to Section 9 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 or its Affiliates in connection with the services it
provides to the Company and the Operating Partnership pursuant to this Agreement, including, but
not limited to:

               (i) Organization and Offering Expenses; provided, however, that the Company shall not
reimburse the Advisor to the extent such reimbursement would cause the total amount of Organization
and Offering Expenses paid by the Company and the Operating Partnership to exceed 3.0% of the Gross
Proceeds raised as of the date of the reimbursement;

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               (ii) Acquisition Expenses incurred in connection with the selection and acquisition of
Investments subject to the aggregate 6.0% cap on Acquisition Fees, Origination Fees and Acquisition
Expenses set forth in Section 9(c);

               (iii) the actual cost of goods and services used by the Company and obtained from entities not
affiliated with the Advisor;

               (iv) interest and other costs for borrowed money, including discounts, points and other
similar fees;

               (v) taxes and assessments on income of the Company or Investments;

               (vi) costs associated with insurance required in connection with the business of the Company
or by the Board;

               (vii) expenses of managing and operating Investments owned by the Company, whether payable to
an Affiliate of the Company or a non-affiliated Person;

               (viii) all expenses in connection with payments to the Directors for attending meetings of the
Board and Stockholders;

               (ix) expenses associated with a Listing, if applicable, or with the issuance and distribution
of Shares, such as selling commissions and fees, advertising expenses, taxes, legal and accounting
fees, listing and registration fees, and other Organization and Offering Expenses;

               (x) expenses connected with payments of Distributions;

               (xi) expenses of organizing, revising, amending, converting, modifying, or terminating the
Company or any subsidiary thereof or the Articles of Incorporation or governing documents of any
subsidiary;

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

               (xiii) administrative service expenses (including (a) personnel costs; provided, however, that
no reimbursement shall be made for costs of personnel to the extent that such personnel perform
services in transactions for which the Advisor receives Acquisition Fees, Origination Fees or
Disposition Fees, and (b) the Company’s allocable share of other overhead of the Advisor such as
rent and utilities); and

               (xiv) audit, accounting and legal fees.

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          (b) Expenses incurred by the Advisor on behalf of the Company and the Operating Partnership
and payable pursuant to this Section 10 shall be reimbursed no less than monthly to the Advisor.

          (c) The Advisor shall prepare a statement documenting the expenses of the Company and the
Operating Partnership during each quarter, and shall deliver such statement to the Company and the
Operating Partnership within 45 days after the end of each quarter.

     11. OTHER SERVICES. Should the Board request that the Advisor or any director, officer or
employee thereof render services for the Company and the Operating Partnership other than set forth
in Section 3, such services shall be separately compensated at such rates and in such amounts as
are agreed upon by the Advisor and the Board, including a majority of the Independent Directors,
subject to the limitations contained in the Articles of Incorporation, and shall not be deemed to
be services pursuant to the terms of this Agreement.

     12. REIMBURSEMENT TO THE ADVISOR. The Company shall not reimburse the Advisor at the end of
any fiscal quarter in which Total Operating Expenses for the four consecutive fiscal quarters then
ended (the “Expense Year”) exceed (the “Excess Amount”) the greater of 2% of
Average Invested Assets or 25% of Net Income (the “2%/25% Guidelines”) for such year. Any
Excess Amount paid to the Advisor during a fiscal quarter shall be repaid to the Company or, at the
option of the Company, subtracted from the Total Operating Expenses reimbursed during the
subsequent fiscal quarter. If there is an Excess Amount in any Expense Year and the Independent
Directors determine that such excess was justified based on unusual and nonrecurring factors which
they deem sufficient, then the Excess Amount may be carried over and included in Total Operating
Expenses in subsequent Expense Years and reimbursed to the Advisor in one or more of such years,
provided that there shall be sent to the Stockholders a written disclosure of such fact, together
with an explanation of the factors the Independent Directors considered in determining that such
excess expenses were justified. Such determination shall be reflected in the minutes of the
meetings of the Board. All figures used in the foregoing computation shall be determined in
accordance with GAAP applied on a consistent basis.

     13. BUSINESS COMBINATION.

          (a) Business Combination with Advisor. The Company shall consider becoming a
self-administered REIT once the Company’s assets and income are, in the view of the Board, of
sufficient size such that internalizing the management functions performed by the Advisor is in the
best interests of the Company and the Stockholders. If the Board should make this determination in
the future, the Company shall pay one-half, and the Advisor shall pay the other one-half, of the
cost of an independent investment banking firm, which shall jointly advise the Company and the
Advisor on the value of the Advisor. After the investment banking firm completes its analyses, the
Company shall require it to prepare a written report and make a formal presentation to the Board.
Following the presentation by the investment banking firm, the Board shall form a special committee
(the “Special Committee”) comprised entirely of Independent Directors to consider a
possible business combination with the Advisor. The Board shall, subject to applicable law, delegate all of its decision-making power and authority to

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the Special Committee with respect to matters relating to a possible business combination with the
Advisor. The Special Committee also shall be authorized to retain its own financial advisors and
legal counsel to, among other things, negotiate with representatives of the Advisor regarding a
possible business combination with the Advisor.

          (b) Conditions to Completion of Business Combination with Advisor. Before the Company
may complete any business combination with the Advisor in accordance with this Section 13, the
following conditions shall be satisfied:

               (i) the Special Committee formed in accordance with Section 13(a) hereof receives an opinion
from a qualified investment banking firm, separate and distinct from the firm jointly retained by
the Company and the Advisor to provide a valuation analysis in accordance with Section 13(a)
hereof, concluding that the consideration to be paid to acquire the Advisor is fair to the
Stockholders from a financial point of view;

               (ii) the Board determines that such business combination is advisable and in the best
interests of the Company and the Stockholders; and

               (iii) such business combination is approved by the Stockholders entitled to vote thereon in
accordance with the Company’s Articles of Incorporation and Bylaws.

     14. OTHER ACTIVITIES OF THE ADVISOR. 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 its Affiliates; nor shall this
Agreement limit or restrict the right of any director, officer, member, partner, employee, or
stockholder of the Advisor or its Affiliates to engage in or earn fees from any other business or
to render services of any kind to any other partnership, corporation, firm, individual, trust or
association and earn fees for rendering such services. The Advisor may, with respect to any
investment in which the Company 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 may enter into joint ventures or other similar co-investment
arrangements with certain Persons, and pursuant to the agreements governing such joint ventures or
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 report to the Board the existence of any condition or circumstance, existing
or anticipated, of which it has knowledge, which creates or could create a conflict of interest
between the Advisor’s obligations to the Company and its obligations to or its interest in any
other partnership, corporation, firm, individual, trust or association. The Advisor or its
Affiliates shall promptly disclose to the Board knowledge of such condition or circumstance. If
the Advisor, Director or Affiliates thereof have sponsored other investment programs with similar
investment objectives which have investment funds available at the same time as the Company, the
Advisor shall inform the Board of the method to be applied by the Advisor in allocating investment opportunities among the Company and competing investment entities and
shall provide regular updates to the Board of the investment opportunities provided by the

- 16 -

 

Advisor to competing programs in order for the Board (including the Independent Directors) to fulfill its
duty to ensure that the Advisor and its Affiliates use their best efforts to apply such method
fairly to the Company.

     15. TERM OF AGREEMENT. This Agreement shall continue in force for a period of one year from
the date of the Prospectus pursuant to which the initial Offering is made, subject to an unlimited
number of successive one-year renewals upon mutual consent of the parties. It is the duty of the
Independent Directors to evaluate the performance of the Advisor annually before renewing the
Agreement, and each such renewal shall be for a term of no more than one year.

     16. TERMINATION BY THE PARTIES. This Agreement may be terminated:

          (a) immediately by the Company or the Operating Partnership for Cause or upon the bankruptcy
of the Advisor;

          (b) upon 60 days written notice without Cause and without penalty by a majority of the
Independent Directors of the Company; or

          (c) upon 60 days written notice with Good Reason by the Advisor.

     The provisions of Sections 18 through 30 of this Agreement survive termination of this
Agreement.

     17. ASSIGNMENT TO AN AFFILIATE. This Agreement may be assigned by the Advisor to an Affiliate
with the approval of a majority of the Directors (including a majority of the Independent
Directors). The Advisor may assign any rights to receive fees or other payments under this
Agreement to any Person without obtaining the approval of the Directors. This 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 to a corporation, limited
partnership or other organization which is a successor to all of the assets, rights and obligations
of the Company or the Operating Partnership, in which case such successor organization shall be
bound hereunder and by the terms of said assignment in the same manner as the Company and the
Operating Partnership are bound by this Agreement.

     18. PAYMENTS TO AND DUTIES OF ADVISOR UPON TERMINATION.

          (a) After the Termination Date, the Advisor shall not be entitled to compensation for further
services hereunder except it shall be entitled to receive from the Company or the Operating
Partnership within 30 days after the effective date of such termination all unpaid reimbursements
of expenses and all earned but unpaid fees payable to the Advisor prior to termination of this
Agreement, subject to the 2%/25% Guidelines to the extent applicable.

          (b) The Advisor shall promptly upon termination:

               (i) 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

- 17 -

 

Agreement, after deducting any accrued compensation and reimbursement for its expenses to which it is then entitled;

               (ii) 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;

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

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

     19. 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 directors (the “Indemnitees,” and each an “Indemnitee”), 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, and to the extent
that such indemnification would not be inconsistent with the laws of the State of Maryland, the
Articles of Incorporation or the provisions of Section II.G of the NASAA REIT Guidelines.
Notwithstanding the foregoing, the Company and the Operating Partnership shall not provide for
indemnification of an Indemnitee for any loss or liability suffered by such Indemnitee, nor shall
they provide that an Indemnitee be held harmless for any loss or liability suffered by the Company
and the Operating Partnership, unless all of the following conditions are met:

          (a) the Indemnitee has determined, in good faith, that the course of conduct that caused the
loss or liability was in the best interest of the Company and the Operating Partnership;

          (b) the Indemnitee was 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 Indemnitee;
and

          (d) such indemnification or agreement to hold harmless is recoverable only out of the
Company’s net assets and not from the Stockholders.

     Notwithstanding the foregoing, an Indemnitee shall not be indemnified by the Company and the
Operating Partnership for any losses, liabilities or expenses arising from or out of an alleged
violation of federal or state securities laws by such Indemnitee unless one or more of the
following conditions are met:

- 18 -

 

          (a) there has been a successful adjudication on the merits of each count involving alleged
securities law violations as to the Indemnitee;

          (b) such claims have been dismissed with prejudice on the merits by a court of competent
jurisdiction as to the Indemnitee; or

          (c) a court of competent jurisdiction approves a settlement of the claims against the
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 securities of the Company or the Operating Partnership were offered or sold as
to indemnification for violation of securities laws.

     In addition, the advancement of the Company’s or the Operating Partnership’s funds to an
Indemnitee for legal expenses and other costs incurred as a result of any legal action for which
indemnification is being sought is permissible only if all of the following conditions are
satisfied:

          (a) the legal action relates to acts or omissions with respect to the performance of duties or
services on behalf of the Company or the Operating Partnership;

          (b) the legal action is initiated by a third party who is not a Stockholder or the legal
action is initiated by a Stockholder acting in such Stockholder’s capacity as such and a court of
competent jurisdiction specifically approves such advancement; and

          (c) the Indemnitee undertakes to repay the advanced funds to the Company or the Operating
Partnership, together with the applicable legal rate of interest thereon, in cases in which such
Indemnitee is found not to be entitled to indemnification.

     20. 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 bad faith, fraud, misfeasance, intentional misconduct, negligence or
reckless disregard of its duties; provided, however, that the Advisor shall not be held responsible
for any action of the Board in following or declining to follow any advice or recommendation given
by the Advisor.

     21. NOTICES. Any notice, report or other communication required or permitted to be given
hereunder shall be in writing unless some other method of giving such notice, report or other communication is required by the Articles of
Incorporation, the Bylaws, or accepted by the party to whom it is given, and shall be given by
being delivered by hand, by facsimile transmission, by courier or overnight carrier or by
registered or certified mail to the addresses set forth herein:

- 19 -

 

	 	 	 
	To the Directors and to the Company:

	 	TNP Strategic Retail Trust, Inc.
	 

	 	1901 Main Street
	 

	 	Suite 108
	 

	 	Irvine, California 92614
	 

	 	Telephone: (949) 833-8252
	 

	 	Facsimile:
	 

	 	Attention: Jack R. Maurer, Vice
Chairman of the Board and President
	 

	 	 
	 
	 	 
	To the Operating Partnership:

	 	TNP Strategic Retail Operating Partnership, LP
	 

	 	1901 Main Street
	 

	 	Suite 108
	 

	 	Irvine, California 92614
	 

	 	Telephone: (949) 833-8252
	 

	 	Facsimile:
	 

	 	Attention: Neil M. Miller, _____
	 

	 	
	 
	 	 
	To the Advisor:

	 	TNP Strategic Retail Advisor, LLC
	 

	 	1901 Main Street
	 

	 	Suite 108
	 

	 	Irvine, California 92614
	 

	 	Telephone: (949) 833-8252
	 

	 	Facsimile:
	 

	 	Attention: Jack R. Maurer, Vice
Chairman of the Board and President
	 

	 	 

     Any party may at any time give notice in writing to the other parties of a change in its
address for the purposes of this Section 22.

     22. MODIFICATION. This 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.

     23. SEVERABILITY. The provisions of this 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.

     24. CONSTRUCTION. The provisions of this Agreement shall be construed and interpreted in
accordance with the laws of the State of Maryland.

     25. ENTIRE AGREEMENT. This 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

- 20 -

 

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 or usage of the trade inconsistent with any
of the terms hereof. This Agreement may not be modified or amended other than by an agreement in
writing.

     26. 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 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.

     27. 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.

     28. TITLES NOT TO AFFECT INTERPRETATION. The titles of Sections and Subsections contained in
this Agreement are for convenience only, and they neither form a part of this Agreement nor are
they to be used in the construction or interpretation hereof.

     29. EXECUTION IN COUNTERPARTS. This 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 Agreement
shall become binding when one or more counterparts hereof, individually or taken together, shall
bear the signatures of all of the parties reflected hereon as the signatories.

[Remainder of page intentionally left blank]

- 21 -

 

     IN WITNESS WHEREOF, the parties hereto have executed this Advisory Agreement as of the date
and year first written above.

	 	 	 	 	 	 	 
	 	 	TNP Strategic Retail Trust, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 
	 	 
	 

	 	Name:	 	 	 	 
	 	 	 
	 	 
	 

	 	Title:	 	 	 	 
	 	 	 
	 	 
	 
	 	 	 	 	 	 
	 	 	TNP Strategic Retail Operating Partnership, LP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	TNP Strategic Retail Trust, Inc.,

its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 
	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 
	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	 
	 	 
	 
	 	 	 	 	 	 
	 	 	TNP Strategic Retail Advisor, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Thompson National Properties, LLC,

its sole member	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 
	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 
	 	 
	 

	 	 	 	Title:

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