Document:

Exhibit 4.5

 

FIRST AMENDMENT TO 

AGREEMENT OF LIMITED PARTNERSHIP OF

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

 

This FIRST AMENDMENT
to the AGREEMENT OF LIMITED PARTNERSHIP OF PHILLPS EDISON GROCERY CENTER OPERATING PARTNERSHIP III, L.P. (this “Amendment”)
is made effective as of _________, 2018 by Phillips Edison Grocery Center OP GP
III, LLC, a Delaware limited liability company (the “General Partner”). Capitalized terms used but not defined herein
will have the meanings ascribed to such terms in the Partnership Agreement (as defined below).

 

WHEREAS, the General
Partner, Phillips Edison Grocery Center REIT III, Inc., a Maryland corporation, as Limited Partner (the “Initial Limited
Partner”), and PECO-Griffin REIT Advisor LLC, a Delaware limited liability company (the
“Special Limited Partner”) previously entered into that certain Agreement of Limited Partnership of Phillips
Edison Grocery Center Operating Partnership III, L.P. (the “Partnership”), dated as of October 5, 2016 (the
“Partnership Agreement”);

 

WHEREAS, the General
Partner, the Initial Limited Partner and the Special Limited Partner desire to amend the Partnership Agreement;

 

NOW, THEREFORE, in
consideration of the foregoing, of mutual covenants between the parties to the Partnership Agreement, and of other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Partnership Agreement is hereby amended as follows:

 

		1.	Amendment to Section 5.1(d)(i). Section 5.1(d)(i) of the Partnership Agreement shall be
amended and restated in its entirety to read as follows:

 

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

 

     

     

    

 

If the Termination Note has not
been paid in full on the earlier of (a) the date of a Listing, or (b) within three (3) years from the Termination Date, then the
holder of the Termination Note, its successors or assigns, may elect to convert the balance of the distributions due under the
Termination Note into OP Units or Common Stock at a price per share equal to the average closing price of the Common Stock over
the ten (10) trading days immediately preceding the date of such election if the Common Stock has been Listed at such time. If
a Listing does not occur within three (3) years from the Termination Date, the holder of the Termination Note, its successors or
assigns, may elect to convert the balance of the distributions due under the Termination Note into OP Units or Common Stock at
a price per share equal to the fair market value of such Common Stock as determined by the board of directors of the Initial Limited
Partner on the date of election. If an Investment Liquidity Event occurs and the Termination Note has not yet been paid in full,
the Termination Note shall be paid in full on the Investment Liquidity Date.

 

		2.	Limited Effect; No Modifications. This Amendment is effective as of the date first set forth
above. The amendment set forth above shall be limited precisely as written and relate solely to the provision of the Partnership
Agreement in the manner and to the extent described above. Except as expressly set forth herein, nothing contained in this Amendment
will be deemed or construed to amend, supplement or modify the Partnership Agreement or otherwise affect the rights and obligations
of any party thereto, all of which remain in full force and effect.

 

[Remainder of page intentionally left
blank.]

 

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IN WITNESS WHEREOF, the parties have executed
this Amendment as of the date first above written.

 

	 	GENERAL PARTNER:
	 	 
	 	PHILLIPS EDISON GROCERY CENTER OP GP III, LLC
	 	 	 
	 	By:	Phillips Edison Grocery Center REIT III, Inc., its sole member
	 	 	 
	 	By:	 
	 	 	Name: Jeffrey S. Edison
	 	 	Title: Chief Executive Officer
	 	 	 
	 	INITIAL LIMITED PARTNER:
	 	 
	 	PHILLIPS EDISON GROCERY CENTER REIT III, INC.
	 	 	 
	 	By:	 
	 	 	Name:  Jeffrey S. Edison
	 	 	Title:  Chief Executive Officer
	 	 	 
	 	SPECIAL LIMITED PARTNER:
	 	 	 
	 	PECO-GRIFFIN REIT ADVISOR LLC
	 	 	 
	 	By:	Phillips Edison NTR III LLC,  its managing member
	 	 	 
	 	By:	 
	 	 	Name:  Jeffrey S. Edison
	 	 	Title:  Chief Executive OfficerExhibit 10.11

 

MASTER PROPERTY MANAGEMENT AGREEMENT

 

THIS MASTER PROPERTY
MANAGEMENT AGREEMENT (“Agreement”) is made and entered into as of October 4, 2017, by and among PHILLIPS EDISON GROCERY
CENTER OPERATING PARTNERSHIP III, L.P., a Delaware limited partnership (“Owner”), and PHILLIPS EDISON GROCERY CENTER
OPERATING PARTNERSHIP I, L.P., a Delaware limited partnership (“Manager”).

 

RECITALS:

 

A.       Owner
is a limited partnership formed to acquire, own, operate, lease, finance and manage shopping center properties throughout the continental
United States. For purposes of this Agreement, Owner and its direct and indirect subsidiaries, and any joint ventures into which
any of the foregoing may enter and which are controlled by the Owner, are individually or collectively referred to as “Owner”
or “Owners”.

 

B.       Manager
operates and manages shopping center properties located throughout the continental Unites States.

 

C.       Owner
desires to engage Manager, and Manager desires to accept such engagement, to manage the shopping center properties that are now
owned or hereafter acquired by Owner, under the terms and conditions set forth in this Agreement.

 

NOW THEREFORE, in consideration
of the premises and other good and valuable consideration, the receipt and sufficiency of which are acknowledged by each party,
the parties agree as follows:

 

		1.	Definitions. Except as otherwise specified
or as the context may otherwise require, the following terms have the respective meanings set forth below for all purposes of
this Agreement, and the definitions are equally applicable both to the singular and plural forms:

 

		1.1.	“Gross Receipts” means (i) all
fixed and minimum rent, percentage rent and license fees paid by tenants and other occupants of each Property, (ii) the profit
of Owner derived from the sale of electricity (i.e., the spread between the wholesale and retail prices of electricity that is
re-sold to tenants of the Properties), utilities and heating, ventilation and air conditioning to tenants and other occupants
of each Property, (iii) all amounts paid by tenants and other occupants of each Property for common area maintenance, real
estate taxes (whether or not such is paid directly to taxing authority), insurance, interest and any other payments of any nature
(including attorneys’ fees and late fees) made by any such tenants or other occupants, and (iv) proceeds of rent insurance.

 

		1.2.	“Improvements” means buildings, structures,
and equipment from time to time located on the Properties and all parking and common areas located on the Properties.

 

		1.3.	“Leasing Manager” means PHILLIPS EDISON
& COMPANY, LTD., an Ohio limited liability company.

 

    	 	 	 

     

    

 

		1.4.	“Management Fees” means the fees
and expenses payable to Manager pursuant to Section 9, “Compensation”.

 

		1.5.	“Manager” means Phillips Edison
Grocery Center Operating Partnership I, L.P..

 

		1.6.	“Master Services Agreement” means
that certain Master Services Agreement by and between Owner and Leasing Manager dated as of the date hereof.

 

		1.7.	“Owner” means Phillips Edison Grocery
Center Operating Partnership II, L.P. and its subsidiaries, as described in Recital A.

 

		1.8.	“Properties” means all of the real
estate assets of Owner covered by this Agreement, collectively.

 

		1.9.	“Property” means an individual
real estate asset owned by Owner that is made subject to this Agreement through the use of a Property Addendum (as defined below),
and all tracts acquired by Owner related to that asset.

 

		1.10.	“Property Addendum” means an addendum
(as may be modified, amended or supplemented in writing from time to time) to be attached to this Agreement and incorporated within
this Agreement by reference, executed by Manager and by the single asset subsidiary Owner of each Property. All currently owned
Properties are subject to a Property Addendum, and as each new Property is purchased it is intended to be made subject to this
Agreement. Each Property Addendum will describes its Property, including its real estate and the improvements. If any Property
is sold by an individual Owner, the Property Addendum with respect to such Property shall be deemed of no further force or effect
from and after the closing of the sale, except to the extent of post-closing management and accounting functions that are required
to be performed under this Agreement.

 

		1.11.	“Property Personnel” means employees
of Leasing Manager hired or retained by Manager to perform services for the Properties under this Agreement, which services include,
but are not limited to, property management, property-level accounting and book-keeping services, property-level budgeting and
forecasting, and property-level tax preparation services. Notwithstanding the foregoing, the following persons are not considered
Property Personnel: (i) any Manager or Leasing Manager whose primary responsibility is to manage Property Personnel and who is
not directly responsible for providing services to a specific Property or group of Properties, and (ii) any person who also serves
as an executive officer of Manager or Leasing Manager and/or as an executive officer of Owner.

 

		1.12.	“REIT” means Phillips Edison Grocery Center
REIT III, Inc., a Maryland corporation.

 

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		2.	Appointment of Manager.

 

		2.1.	Owner hereby engages and retains Manager, for each
Property for which a Property Addendum is executed, as the sole and exclusive property manager to perform such functions as are
specified in this Agreement and/or on the Property Addendum related to each such Property. Manager hereby accepts such appointment.

 

		2.2.	Manager shall act under this Agreement as an independent
contractor and not as the Owner’s agent employee or fiduciary. Manager shall not have the right, power or authority to enter
into agreements or incur liability on behalf of the Owner except as expressly set forth in this Agreement or in a Property Addendum.
Any action taken by Manager which is not expressly permitted by this Agreement shall not bind the Owner.

 

		3.	Standards.Manager will in good faith,
with due diligence and in accordance with generally accepted management standards in the shopping center industry within the geographical
areas of the Properties, perform its management duties and obligations. In all events, the standards of performance shall be consistent
with the standards of management to which Manager performs with respect to its own portfolio of properties. Manager shall devote
its commercially reasonable efforts to performing its duties under this Agreement to manage, operate, and maintain the Properties
in a diligent, careful and professional manner to maximize all potential revenues to the Owner and to minimize expenses and losses
to the Owner. The services of Manager are to be of a scope and quality not less than those generally performed by first class,
professional managers of properties similar in type and quality to the Properties and located in the same market area as the Properties.
Manager will make available to the Owner the full benefit of the judgment, experience and advice of the members of Manager’s
organization. Manager will at all times act in good faith and in a commercially reasonable manner with respect to the proper protection
of and accounting for the Owner’s assets.

 

		4.	Term.This Agreement shall commence upon
full execution of this Agreement and shall continue until terminated in accordance with Section 13.

 

		5.	Duties of Manager- Property Management. Manager’s
duties as property manager for the Properties include the following for each of the Properties (as may be supplemented with additional
duties as detailed in the applicable Property Addendum) and for Owner, as applicable:

 

		5.1.	For Accounting and Finance, Manager will:

 

		a)	Calculate, bill and collect rental payments and other charges due to the Owner from tenants in
the Properties under the respective tenant leases or otherwise with regard to the Properties. To the extent tenant leases affecting
any Property so require, Manager shall timely make or verify any calculations that are required to determine the amount of rent
due from tenants, including without limitation calculating percentage rent, operating expense “pass-throughs” and consumer
price index adjustments and, where required, shall give timely notice to tenants.

 

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		b)	Cash Management.

 

		1)	Establish on behalf of the Owner a concentration account (a “Concentration Account”)
at a bank to be specified in writing by Owner, which such Concentration Account will be tied into each Operating Account (as defined
below) via a daily automated two-way sweep. Without in any way limited the foregoing, Manager shall not commingle its funds or
property or the funds or property of any other entities for which it provides services with any other funds or property of Owner.
This automated two-way sweep shall work in the following manner: all checks or wires presented on behalf of each Property’s
Operating Account will be funded by having the cash automatically pulled down from the Concentration Account to fund the check
or wire, and all cash deposited into each Property’s Operating Account or lockbox accounts will be automatically swept up
to the Concentration Account on a daily basis.

 

		2)	Notwithstanding the preceding, if an Owner is not a wholly owned subsidiary of the REIT or Manager
and its (a) governing documents of the Owner require, or (b) the payments in respect of a Property are required by a lender to
be made into a lockbox account, or (c) if the payments in respect of a Property are required to be handled otherwise by a contractual
restriction agreed to by Owner, then such requirements shall be followed by Manager following written notice from by Owner. Funds
released from any lockbox account or other arrangement to the custody of the Owner shall otherwise follow the above procedures.

 

		3)	To the extent required by the foregoing paragraph(s), establish on behalf of the Owner for each
Property an operating account (“Operating Account”) at a bank to be agreed upon in writing by Owner upon receipt
of a fully-executed Property Addendum and an IRS Form W-9 completed by the Owner. If not required by the foregoing paragraph(s),
multiple properties may share the same Operating Account. The signature card for the Operating Account shall indicate that Manager
is dealing with the Operating Account as a fiduciary of the Owner. The Operating Account and all funds therein is at all times
the property of the Owner. The Owner shall have electronic banking system access to the Operating Account which permits it to obtain
account information and make withdrawals from the Operating Account.

 

		4)	Notwithstanding anything to the contrary contained in this Agreement, Owner may direct payments
or deposits received by Manager or payments or transfers from the Operating Account for a Property to deviate from the above procedures
by a written request to Manager. In such event, Manager shall provide the Owner with all information necessary to effect those
deposits, transfers or payments.

 

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		5)	If required by state law, deposit security deposits and/or advance rentals in separate accounts
in the name of the Owner at the financial institution designated by Owner with respect to the applicable Property.

 

		6)	Pay all invoices directly from the Operating Account unless directed otherwise by the Owner or
by lender requirements.

 

		7)	On or before the 25th day of each month, submit an invoice to the Owner accompanied by a computation
of the fees and expense reimbursements due to Manager in accordance with this Agreement. Owner has the right to review the invoice,
and may obtain any supporting documentation from Manager. To the extent that Owner believes the computation provided by Manager
is inconsistent with the computation permitted under this Agreement, Owner and Manager shall work together in good faith to reach
a computation of fees that is reasonably agreeable to both parties.

 

		8)	Without in any way limiting the foregoing, to the extent required by Owner’s governing documents
or applicable lender requirements, Manager will deposit amounts relating to a Property in the respective Property’s Operating
Account within five (5) business days’ of receipt. Manager has no proprietary interest in the Concentration Account or any
Operating Account, or in any other account authorized by this Agreement, and all sums collected by Manager relating to the Properties
and all sums placed in any accounts are the property of the Owner. To the extent not yet deposited, all sums shall be held in trust
by Manager for the Owner.

 

		c)	Subject to the terms of this Agreement relating to allocation of expenses, pay fees, expenses and
commissions of independent contractors that contract with Manager in the management, operation, maintenance or repair of the Properties.
Manager will review all charges before payment to confirm accuracy and agreement.

 

		d)	Prepare and maintain routine and customary financial and business books and records for Owner and
the Properties and to employ and supervise outside accountants to prepare income and other tax returns and specialty accounting
services for Owner and the Properties. The preparation of income and other tax returns and the performance of such specialty accounting
services shall be performed by Manager or, as deemed necessary by Manager, be performed by third party professionals and supervised
by Manager at Owner’s expense. Manager will use the accrual method of accounting in accordance with GAAP, with such policies
as are to be determined by management subject to Owner’s determination (including without limitation, capitalization policies,
depreciation and amortization policies, and such other accounting policies as Owner may direct from time to time).

 

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		e)	Maintain fixed asset accounting detail and related depreciation.

 

		f)	Prepare and submit to Owner a proposed operating and capital budget, including an itemized statement
of the estimated revenues and expenses in reasonable detail, which shall include, without limitation, reasonable detail as to employee
expenses (to be reimbursed to Leasing Manager) for the operation, repair and maintenance of the Properties (the “Budget”)
for the calendar year immediately following each submission. Each Budget will be in the form approved by the Owner. A draft Budget
for each Property shall be submitted to Owner on or prior to December 15 of the year preceding the January 1 of the year to which
the budget applies. Owner will have 21 days after receipt of the Budget within which to approve or reject in writing the same,
with any rejection accompanied by a reasonably detailed explanation of the basis for the rejection. Manager will then submit a
revised draft Budget to Owner within 10 days after receipt of any rejection. Owner has 10 days after receipt of the revised Budget
to approve or reject the same in writing, with any rejection accompanied by a reasonably detailed explanation of the basis for
the rejection. The foregoing process will repeat with 10 days between receipt and revision, on Manager’s end, and receipt
and acceptance or rejection on Owner’s end, until each Budget has been approved. If the parties cannot come to agreement
on a Budget for a Property, then Manager will operate the applicable Property on the Budget most recently approved by Owner. To
the extent any expenditure to be made by Manager exceeds the applicable line item in the prior year’s Budget by 5% or more,
the same shall require Owner’s prior written consent, exclusive of uncontrollable expenditures and emergencies (included
by not limited to snow and ice removal, electricity, insurance premiums and emergency items outside of the control of Manager).
Manager will provide supporting information reasonably requested by Owner in connection with its review of any Budget submitted
by Manager.

 

Manager will
implement the Budget and use its commercially reasonable efforts to ensure that the actual cost of operating the Properties does
not exceed the Budget. The Budget constitutes an authorization for Manager to expend necessary monies to manage and operate the
Properties in accordance with the Budget, but subject to the provisions of this Agreement, until a subsequent Budget is approved.
The approval of non-recurring costs and capital improvements in the Budget constitutes an authorization for Manager to collect
bids for the expenditure and to present a final recommendation to the Owner for expenditure of monies to implement those items.

 

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Without affecting
any other limitation imposed by this Agreement and except as may be provided to the contrary elsewhere in this Agreement, Manager
will secure the prior written approval of Owner before incurring any liability or obligation for any item in excess of $10,000
not reflected on the approved Budget, except with respect to emergency items as described in this subsection (G). If, however,
another threshold with respect to any matter is specified elsewhere in this Agreement or in a written directive or authorization
of Owner, then the threshold for that matter will be as set forth in that directive. Manager will provide a report to Owner regarding
any emergency expenses or capital requirements as promptly as practicable following the occurrence of the event giving rise to
the expenses, specifying the circumstances of the emergency situation or requirement.

 

		g)	Confirm that Leasing Manager pays any wages, salaries, commissions and employee benefits of all
Property Personnel, including without limitation workers’ compensation insurance, social security taxes, unemployment insurances,
other taxes or levies now in force or hereafter imposed, any claims that may arise under the employee health or worker’s
compensation programs maintained by Leasing Manager, employee-related overhead expenses and associated administrative charges with
respect to any such Property Personnel (collectively, “Employee Benefits”), all of which are deemed an operating expense
of the Properties and which shall be in accordance with approved Budgets. The number and classification of employees serving each
Property shall be determined by Manager, as appropriate for the proper operation of each Property.

 

		h)	Deliver to Owner, within 15 days after the end of each month during the term of this Agreement,
the monthly reporting package detailed on Exhibit A that relates to the Properties and the immediately preceding calendar month
or any portion thereof. The reporting package will be made on an accrual basis and include all transactions, whether or not reimbursable
pursuant to the provisions of this Agreement.

 

		i)	Deliver to Owner, within 15 days after the end of each quarter during the term of this Agreement,
the quarterly reporting package detailed on Exhibit B that relates to the Properties and the immediately preceding calendar quarter
or any portion thereof. The reporting package will be made on an accrual basis and include all transactions, whether or not reimbursable
pursuant to the provisions of this Agreement.

 

		j)	Deliver to Owner, within 30 days after the end of each calendar year during the term of this Agreement,
the annual reporting package detailed in Exhibit C that relates to the Properties and the immediately preceding calendar year or
any portion thereof. The reporting package will be made on an accrual basis and include all transactions, whether or not reimbursable
pursuant to the provisions of this Agreement.

 

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		k)	File real, personal and ad valorem (real or personal) property tax returns required to be filed
by Owner with respect to the Properties and pay all ad valorem taxes and assessments out of the operating accountants of each of
the Properties. Manager will also use, on Owner’s behalf, the services of independent tax consultants and attorneys to appeal
or challenge real, personal and ad valorem (real or personal) property taxes as identified by Manager, and Manager will manage
the appeals process on Owner’s behalf by supplying needed information and making required payments out of the operating funds
for each Property or the separate funds of Owner.

 

		l)	Cooperate with the REIT’s independent auditors with respect to the annual audit of the REIT
for the purpose of expressing an opinion on the financial statements of the REIT (the “Annual REIT Audit”). In addition,
the REIT shall have the right to conduct an audit of Manager’s books and records solely with respect to the fees and expense
reimbursements relating to the services provided pursuant to this Agreement (the “Fee Audit”). The REIT may conduct
the Fee Audit by using its own internal auditors or by employing independent auditors no more than once per year. Costs associated
with conducting such Fee Audits by internal or independent auditors, and costs of the Annual REIT Audit, shall be borne by REIT.
If any Fee Audit conducted by or on behalf of REIT reveals a discrepancy in excess of ten percent (10%), and greater than $10,000,
for the aggregate fees and expense reimbursements payable during the period under audit pursuant to the Fee Audit, then Manager
shall be responsible for the reasonable expenses of such audit.

 

		5.2.	For Operations and asset management (“Asset Management”), Manager will:

 

		a)	Use commercially reasonable efforts to operate in accordance with the Budget unless otherwise specifically
approved in writing by Owner, or except in the case of emergencies or uncontrollable expenses.

 

		b)	Investigate, train, supervise and discharge the Property Personnel necessary to maintain and operate
the Properties, including without limitation property managers having experience and education satisfactory to Owner. Property
Personnel are the agents or employees of Leasing Manager and not of Owner or Manager, but Owner has the right to approve via the
annual budget process the compensation of Leasing Manager’s personnel for which Leasing Manager has the right to be reimbursed
under the Master Services Agreement. Owner has no right to supervise or direct the Property Personnel. Manager will supervise and
at Owner’s expense retain independent contractors, subcontractors, and suppliers to provide for the management, maintenance,
repair and operation of the Properties as well as security functions, to the extent services are not sufficiently provided by Property
Personnel, but in accordance with the Budget.

 

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		c)	Maintain during the term of this Agreement a bond or applicable insurance covering Manager and
all persons who handle, have access to or are responsible for Owner’s monies, in an amount and form reasonably acceptable
to the Owner. Manager will provide the Owner with a certificate or other satisfactory documentation evidencing the existence and
terms of such bond(s) upon execution of this Agreement.

 

		d)	If commercially reasonable within the geographic area in which a Property is located, obtain not
less than three (3) competing bids for, and contract with and supervise onsite management of, contractors.

 

		e)	Assist in coordinating the opening and closing of the businesses of tenants, including insurance
coverage and signage approval.

 

		f)	Purchase necessary supplies and equipment required for the proper operation, maintenance, repair
and restoration of the Properties, in accordance with the Budget.

 

		g)	Cause to be made repairs, replacements, renovations and capital improvements on the Properties,
in accordance with the Budget.

 

		h)	Contract and pay charges for utilities used in the operation of the Properties, including without
limitation water, electricity, gas, telephone and sewerage services, unless a service is carried or covered under the tenant’s
name.

 

		i)	[Contract for and maintain policies of commercial general liability and bodily injury and property
damage insurance with respect to the Properties, with companies and in form and substance acceptable to Owner].

 

		j)	Conduct complete inspections of the Properties as is prudent to determine that the same are in
good order and repair, but no less frequently than once per calendar quarter.

 

		k)	Forward to Owner promptly upon receipt all notices of violation or other notices from any governmental
authority, and board of fire underwriters or any insurance company, and make recommendations regarding compliance with the notices
as are appropriate given the circumstances.

 

		l)	Maintain business-like relations with the tenants of the Properties and respond promptly to tenant
complaints in a prudent, businesslike manner. Manager shall maintain a record of all written tenant complaints for no less than
one year and Manager’s response to complaints, which record shall be available for review by Owner.

 

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		m)	Analyze all bills received for services, work and supplies in connection with the maintaining and
operating the Properties, pay all bills, and pay any other amount payable in respect to the Properties. Manager will use reasonable
commercial efforts to pay all bills within the time required to obtain discounts, if any. Manager will comply with any request
from Owner to forward certain bills to Owner promptly after receipt. Manager will ensure timely Form 1099 reporting to the IRS,
with Form 1099’s filed under Manager’s name and Manager’s taxpayer identification number (TIN), listing Manager
as the “payer.” Manager will provide Owner with a signed declaration indicating compliance with Form 1099 reporting
as part of the February reporting package. Penalties for misfilings as a result of Manager’s negligence are not to be charged
to the property, but are payable by Manager.

 

		5.3.	For all property management items, Manager will take other actions and perform other functions
as Manager reasonably deems advisable for the efficient and economic management, operation and maintenance of the Properties.

 

		6.	Intentionally Omitted.

 

		7.	Intentionally Omitted.

 

		8.	Duties of Manager- Other.Manager will
in all events comply with the reasonable requests of Owner related to property management of the Improvements to be made to the
Properties. Owner will maintain sufficient funds in account(s) so that Manager will have funds available to pay all obligations
contemplated under this Agreement when due. Under no circumstances does Manager have any obligation to advance funds to or for
the account of Owner.

 

		8.1.	Ownership Agreements. Owner will obtain, review and provide to Manager correct and legible
copies of all agreements of limited partnership, joint venture partnership agreements and operating agreements of Owner and its
affiliates as well as the articles of incorporation, bylaws, and if applicable, registration statement on Form S-11 (no. 333-164313)
of Owner, including all prospectus supplements and post-effective amendments (collectively, the “Ownership Agreements”).
Owner will also provide Manager with correct and legible copies of all mortgages on all Properties and inform Manager of any restrictions
relating to property use arising from mortgages or recorded declarations. Manager will use reasonable care to avoid any act or
omission which, in the performance of its duties, in any way conflicts with the terms of the Ownership Agreements or the mortgages
in the absence of the express direction of the Owner, and Manager shall promptly notify Owner if any conflict arises.

 

		8.2.	Periodic Meetings. Manager or its personnel engaged or involved in the management or operation
of the Properties shall meet to discuss the historical results of operations, to consider deviations from any budget, and to discuss
any other matters so requested by the Owner upon reasonable notice from Owner.

 

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		9.	Compensation and Expense Reimbursement.

 

		9.1.	For each Property for which Manager provides property management services, Owner shall pay Manager
a monthly management fee equal to four percent (4.0%) of the Gross Receipts for that given month, payable from that month’s
receipts, in each case unless a different fee is described in the Property Addendum for that Property.

 

		9.2.	Manager will pay other reimbursable expenses as Owner has approved and deems advisable or necessary
for the efficient and economic management of the Properties through its Budget or as otherwise provided for in this Agreement (e.g.,
for programs that exceed in scope that which Manager would normally utilize for its own properties). Owner will reimburse Manager
or Leasing Manager, as applicable, for those expenses, which shall include to the extent included in the applicable Budget, costs
of (i) Property Personnel, including wages, salaries, commissions and employee benefits, and supervision of the Property Personnel,
(ii) roving maintenance personnel to the extent needed at the Properties from time to time, (iii) travel and entertainment, (iv)
printing and stationery, (v) advertising, (vi) signage, (vii) long distance phone calls, (viii) electronic filing expenses, and
(ix) other direct expenses. The costs of Property Personnel shall be allocated to each Property by dividing the rentable square
feet at each Property by the aggregate rentable square feet of all of the Properties for which each employee provides services
and then multiplying the resulting quotient by the individual cost of each employee, unless Owner and Manager agree in writing
to another basis for such allocation. The costs of roving maintenance personnel will be charged to each Property at a reasonable
hourly or monthly rate pre-approved by Owner for the actual and reasonably necessary services provided by such roving maintenance
personnel at each Property. Owner will reimburse Leasing Manager for employee benefits of Property Personnel in an amount equal
to 20% of the total compensation payable to each employee. Employee benefits shall not be reconciled to the actual amounts incurred
by Owner for the employee benefits of each employee, such that Owner will not be required to reimburse Leasing Manager any additional
amounts to the extent that the amounts reimbursed to Leasing Manager for employee benefits of an employee is less than the actual
amount of employee benefits paid by Leasing Manager to such employee, and Leasing Manager is not required to reimburse Owner to
the extent the employee benefits paid by Leasing Manager to an employee are less than the amount of employee benefits reimbursed
by Owner to Leasing Manager for such employee.

 

		9.3.	For each Property for which Manager provides Additional Services as defined in the Property Addendum,
Manager is entitled to fees for the Additional Services at market rates for the geographic area in which the applicable Property
is located, as may be specifically identified in the Property Addendum.

 

		10.	Insurance.

 

		10.1.	Manager will cooperate with and provide reasonable access to the Properties to representatives
of insurance companies and insurance brokers with respect to insurance which is in effect or for which application has been made.
Manager will use its good faith efforts in a commercially reasonable manner to comply with all requirements of insurers.

 

    	 	- 11 -	 

     

    

 

		10.2.	Manager will promptly investigate and report in detail to Owner and the applicable insurance carriers
all accidents, claims for damage relating to the ownership, operation or maintenance of the Properties, and any damage or destruction
to the Properties and the estimated costs of repair. Manager will prepare for approval by Owner all reports required by the applicable
insurance company in connection with any claim. Owner will reimburse Manager’s third party costs in connection therewith.
Such reports shall be given to Owner promptly and any report not given within 10 days after the occurrence of any accident, claim,
damage or destruction shall be noted in the monthly reports delivered to Owner.

 

		11.	Liability of Manager.Manager is not liable
for any errors in judgment or for mistakes of fact or of law or for anything which it may in good faith do or refrain from doing,
except in the case of gross negligence, fraud or willful misconduct.

 

		12.	Indemnity.Owner hereby indemnifies Manager
and its managers, employees and officers against and agrees to defend, protect, hold and save them free and harmless from any
liability or expenses (including reasonable attorney’s fees and court costs) arising out of injuries or damages to persons
or property by reason of any cause relating to the Properties, except to the extent caused by the gross negligence, fraud or willful
misconduct by Manager and which is not otherwise covered by insurance held by Owner. Owner will name Manager as an “additional
insured” or “co-insured” on any and all liability insurance policies for the Properties. Manager hereby indemnifies
Owner and its employees and officers against and agrees to defend, protect, hold and save them free and harmless from any liability
or expenses (including reasonable attorney’s fees and court costs) arising out of injuries or damages to persons or property
by reason of any cause relating to the Properties caused by the gross negligence, fraud or willful misconduct of Manager, which
is not otherwise covered by insurance held by Owner.

 

		13.	Termination.This Agreement may be terminated
by either party upon thirty (30) days’ written notice, in total or only with respect to any Property, provided that termination
will not affect any rights or obligations accrued to either party prior to termination (subject to any offsetting claims for damages),
including, but not limited to payment of property management fees earned to the date of termination. If this Agreement is terminated,
then only management fees with respect to any Properties that are subject to such termination and that have accrued prior to the
termination date will be due to Manager. Notwithstanding anything to the contrary contained in this Agreement, if either Owner
or Manager defaults in performing any of its obligations under this Agreement, or if there is any default by either Owner or Leasing
Manager under the Master Services Agreement, then the other party may terminate this Agreement effective upon delivery of notice
of default. The indemnification obligations of the parties survive the expiration or termination of this Agreement. Manager’s
obligations under this Agreement for physical property management may, at Owner’s election, terminate as to any particular
Property upon its sale, provided that Manager’s obligations for the performance of accounting and other so-called “back
office functions” shall terminate only at such time as a final tax return with respect to the applicable Property has been
prepared and filed and such customary and ordinary information related to the Property or Properties has been provided to Owner.
Manager shall cooperate subsequent to any termination of this Agreement as to a particular Property to provide final property
reconciliations and other reports as reasonably requested by Owner, with the cost of services provided by Manager to be reimbursed
by Owner through the final date of service.

 

    	 	- 12 -	 

     

    

 

		14.	Manager’s Obligations After Termination.Upon
the termination of this Agreement, Manager will have the following duties:

 

		14.1.	Manager will deliver to Owner, or its designee, all books and records (including data files in
magnetic or other similar storage media but specifically excluding any licensed software) with respect to the Properties.

 

		14.2.	Manager will transfer and assign to Owner, or its designee, or terminate upon Owner’s direction,
all service contracts (designated by Owner for transfer and assignment) and personal property relating to or used in the operation
and maintenance of the Properties, except personal property paid for and owned by Manager. Manager will also, for a period of sixty
(60) days immediately following the date of such termination (with respect to this entire Agreement or any Property terminated
as being subject to this Agreement), make itself available to consult with and advise Owner, or its designee, regarding the operation,
maintenance and leasing of the Properties.

 

		14.3.	Manager will render to Owner an accounting of all funds of Owner in its possession and shall deliver
to Owner a statement of management fees claimed to be due Manager and shall cause funds of Owner held by Manager relating to the
Properties to be paid to Owner or their designees and shall assist in the transferring of approved signatories on all Accounts.

 

		14.4.	Manager shall provide accounting services and related services for so long as required to wind-down
the operation of the Owner entity which owned the Property, included by not limited to preparing and filing tax returning and corporate
governance documentation for so long as required by governing authorities. Owner shall reimburse Manager a reasonable fee for such
post-sale services determined by the allocation of Property Personnel providing such services.

 

		15.	No Obligation to Third Parties.None of
the obligations and duties of Manager under the Agreement in any way creates any obligations of Manager to any third party with
the exception of Owner.

 

		16.	Additional Services. The services contemplated
under this Agreement are normal and customary property management services. If Manager is required or requested to perform additional
services beyond the scope of this Agreement, then Owner shall pay Manager fees for these additional services at market rates as
mutually agreed upon in advance by the parties.

 

    	 	- 13 -	 

     

    

 

		17.	Manager’s Action on Tenant’s Default.
If the reasonably expected costs are less than a threshold to be agreed upon by Manager and Owner with respect to each Property
(or with respect to leases or contracts less than certain thresholds with respect to each Property), then Manager has the right,
in its own name or in the name of Owner, to take any and all actions which Manager deems advisable and which Owner has the right
to take, in the event of any tenant's breach of any covenant, provision or condition binding upon tenant under its lease with
Owner. Nothing in this paragraph shall be deemed to require Manager to institute legal action against any tenant. If the reasonably
expected costs exceed the agreed upon thresholds, then Owner shall only be responsible for those costs if it pre-approves such
actions. In addition, if Owner desires to commence legal action notwithstanding Manager’s recommendation to the contrary,
then it shall pay for all costs and reasonable attorneys' fees in connection with that action.

 

		18.	Entire Agreement. This Agreement supersedes
all agreements previously made between the parties relating to its subject matter. There are no other understandings or agreements
between them.

 

		19.	Assignment; Binding Effect. Manager may delegate partially or in full its duties
and rights under this Agreement to any wholly owned subsidiary. Any other partial or full delegation or assignment of its duties
and rights under this Agreement may be made only with the prior written consent of Owner. Except as provided in the immediately
preceding sentence, this Agreement is binding upon and inures to the benefit of the parties and their respective successors and
assigns.

 

		20.	Amendments. This Agreement may be amended
only by an instrument in writing signed by the party against whom enforcement of the amendment is sought.

 

		21.	Other Business. Nothing contained in this
Agreement prevents Manager from engaging in other activities or business ventures, whether or not the other activities or ventures
are in competition with Owner or the business of Owner, including, without limitation, property management activities for other
parties (including other Real Estate Investment Trusts) and providing services to other programs advised, sponsored or organized
by Manager or its affiliates or third parties. This Agreement does not limit or restrict the right of any director, officer, employee,
or stockholder of Manager or its affiliates to engage in any other business or to render services of any kind to any other partnership,
corporation, firm, individual, trust or association. Manager may, with respect to any investment in which the Owner is a participant,
also render advice and service to each and every other participant. Manager will report to Owner 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
Manager’s obligations to Owner and its obligations to or its interest in any other partnership, corporation, firm, individual,
trust or association.

 

		22.	Notices. All notices under this Agreement
shall be in writing and delivered personally or mailed by national overnight courier or certified mail, postage prepaid, addressed
to the parties at their last known addresses. All notices shall be in writing and, except when receipt is required to start the
running of a period of time, are deemed given when delivered in person or first business day after deposit with a national overnight
courier with confirmation of overnight delivery, or on the fifth day after its mailing by registered or certified United States
mail, postage prepaid and return receipt requested, at the addresses set forth after the parties’ respect names below or
at any different addresses as either party has advised the other party in writing.

 

    	 	- 14 -	 

     

    

 

	MANAGER:	
        PHILLIPS EDISON GROCERY CENTER

        OPERATING PARTNERSHIP I, L.P.

        11501 Northlake Drive

        Cincinnati, OH 45249

        Attention: Vice-President

	 	 
	With a copy to:	
        PHILLIPS EDISON GROCERY CENTER

        OPERATING PARTNERSHIP I, L.P.

        11501 Northlake Drive

        Cincinnati, OH 45249

        Attention: Legal Department

	 	 
	OWNER:	
        PHILLIPS EDISON GROCERY CENTER

        OPERATING PARTNERSHIP III, L.P.

        11501 Northlake Drive

        Cincinnati, OH 45249

        Attention: Chief Operating Officer

	 	 
	With a copy to:	
        PHILLIPS EDISON GROCERY CENTER

        OPERATING PARTNERSHIP III, L.P.

        222 South Main Street, Suite 1730

        Salt Lake City, Utah 84101

        Attention: General Counsel

 

		23.	Non-Waiver. No delay or failure by either
party to exercise any right under this Agreement, and no partial or single exercise of that right, will constitute a waiver of
that or any other right, unless otherwise provided in this Agreement.

 

		24.	Headings.Headings in this Agreement are
for convenience only and shall not be used to interpret or construe its provisions.

 

		25.	Severability. If any term, covenant or condition
of this Agreement or its application to any person or circumstance is held invalid or unenforceable to any extent, then the remainder
of this Agreement, or the application of that term, covenant or condition to persons or circumstances other than those to which
it is held to be invalid or unenforceable, will not be affected. Each term, covenant or condition of this Agreement is valid and
shall be enforced to the fullest extent permitted by law.

 

    	 	- 15 -	 

     

    

 

		26.	Governing Law.This Agreement will be
construed in accordance with and governed by the laws of the State of Ohio. Any action to enforce this Agreement or an action
for a breach of this Agreement will be maintained in a binding arbitration proceeding before the American Arbitration Association
in Cincinnati, Ohio.

 

		27.	Counterpart. This Agreement may be executed
in two or more counterparts, each of which is deemed an original but all of which together constitute one and the same instrument.

 

		28.	Cross-Default. If any default occurs under
the Master Services Agreement and results in a termination of the Master Services Agreement or if the Master Services Agreement
is otherwise terminated, this Agreement shall also terminate unless otherwise agreed by the parties.

 

Signatures on next page.

 

    	 	- 16 -	 

     

    

 

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

 

OWNER:

 

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

a Delaware limited partnership

	By:	Phillips Edison Grocery Center OP GP III LLC, 
	 	A Delaware limited liability company,	 
	 	Its General Partner	 
	 	 	 
	By:	/s/ Robert F. Myers	 
	 	Robert F. Myers, Vice President	 

 

MANAGER:

 

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

a Delaware limited partnership

	By:	Phillips Edison Grocery Center OP GP I LLC, 
	 	A Delaware limited liability company,	 
	 	Its General Partner	 
	 	 	 
	By:	/s/ Joe Schlosser	 
	 	Joe Schlosser, Vice President	 

 

    	 	 	 

     

    

 

EXHIBIT A

 

MONTHLY REPORTING PACKAGE

 

For the current month and year to date,
statements presenting, on a comparative basis, actual to budget (and/or forecast or other projections), including variance explanations
for material variances:

 

		·	Executive Summary (operations, capital, tenant/market issues, other)

		·	Balance Sheet

		·	Income Statement

		·	Aged Receivables and Delinquencies Report

		·	Rent Rolls (as requested in writing by Owner)

		·	Month to date and year to date variance report with explanations (budget to actual and actual to
previous year actual)

		·	List of any material accrual adjustment that may have been missed on the last business day of each
month

		·	Consolidated Financial Statements

		·	Reforecast operating projections and cash flow

		·	Any additional reports that Owner shall reasonably request

 

    	 	 	 

     

    

 

EXHIBIT B

 

QUARTERLY REPORTING PACKAGE

 

		·	All items in the monthly reporting package.

 

		·	Quarter to date variance reports with explanations compared to budget and same period prior year.

 

		·	Copy of cash receipts ledger entries for such period, if requested.

 

		·	The originals (or copies, as Owner may request) of all contracts entered into by Manager on behalf
of Owner during such period, if requested.

 

		·	Consolidated financial statements.

 

		·	Such other reports as may be required by Owner.

 

    	 	 	 

     

    

 

EXHIBIT C

 

ANNUAL REPORTING PACKAGE

 

·          All
items in the quarterly reporting package which shall include annual operating statements and a list of variances and explanations
of material variances (budget to actual and actual to previous year actual).

 

·          All
information required for tax filings, as determined by Owner.

 

·          Certifications
of assessment, testing and compliance with internal controls.

 

Any other reports reasonably requested
by Owner.

 

    	 	 	 

     

    

 

Form of Property Addendum

 

Original Agreement Date: ____________________

 

PROPERTY DESCRIPTION:

 

	Property Name:	 
	 	 
	Street Address:	 
	 	 
	City, State, Zip Code:	 
	 	 
	County:	 
	 	 
	Owner Name:	 
	 	 
	Owner Tax ID#:	 
	 	 
	Tax Parcel ID #:	 

 

SERVICES TO BE PROVIDED:

 

	 	Property Management Services as specified in this Agreement with:
	 	 	 
	 	 ̈	No changes
	 	 	 
	 	____	Changes as follows:	 
	 	 	 
	 	 	 
	 	 	 
	 	 	Threshold pursuant to Section 16: Total expenses per matter
not to exceed $2,500 without consent of Owner_________________
	 	 	 
	 	 	 

 

Property Management Fees:

 

	 ̈	Property Management Fee: 4.0% of Gross Receipts, as specified in Section 9.1.

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