Document:

Exhibit 10.2

 

FORM OF AMENDED AND RESTATED ADVISORY AGREEMENT

 

BY AND AMONG

 

PHILLIPS EDISON GROCERY CENTER REIT III,
INC.,

 

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

 

AND

 

PECO-GRIFFIN REIT ADVISOR, LLC

 

     

     

    

 

TABLE OF CONTENTS

 

	 	 	PAGE
	 	 	 
	ARTICLE  I	DEFINITIONS	1
	 	 	 
	ARTICLE  II	APPOINTMENT	8
	 	 	 
	ARTICLE  III	AUTHORITY OF THE ADVISOR	8
	Section 3.1	General	8
	Section 3.2	Powers of the Advisor	8
	Section 3.3	Approval by Directors	8
	Section 3.4	Modification or Revocation of Authority of Advisor	8
	 	 	 
	ARTICLE  IV	DUTIES OF THE ADVISOR	8
	Section 4.1	Organizational and Offering Services	9
	Section 4.2	Acquisition Services	9
	Section 4.3	Asset Management Services and Administrative Services	10
	 	 	 
	ARTICLE  V	BANK ACCOUNTS	12
	 	 	 
	ARTICLE  VI	RECORDS; ACCESS	12
	 	 	 
	ARTICLE  VII	OTHER ACTIVITIES OF THE ADVISOR	12
	Section 7.1	General.	12
	Section 7.2	Policy with Respect to Allocation of Investment Opportunities	13
	 	 	 
	ARTICLE  VIII	LIMITATIONS ON ACTIVITIES	13
	 	 	 
	ARTICLE  IX	FEES	13
	Section 9.1	Acquisition Fees and Contingent Advisor Payment	13
	Section 9.2	Asset Management Fee	14
	Section 9.3	Disposition Fees	15
	 	 	 
	ARTICLE  X	EXPENSES	15
	Section 10.1	Reimbursable Expenses	15
	Section 10.2	Other Services	17
	Section 10.3	Timing of and Limitations on Reimbursements	17
	 	 	 
	ARTICLE  XI	NO PARTNERSHIP OR JOINT VENTURE	18
	Section 11.1	Relationship	18
	Section 11.2	Time Commitment	18
	 	 	 
	ARTICLE  XII	RELATIONSHIP WITH DIRECTORS	18
	 	 	 
	ARTICLE  XIII 	REPRESENTATIONS AND WARRANTIES	18
	Section 13.1	The Company	18
	Section 13.2	The Operating Partnership	19
	Section 13.3	The Advisor	19

 

    i 

     

    

 

	ARTICLE  XIV	TERM; TERMINATION OF AGREEMENT	20
	Section 14.1	Term	20
	Section 14.2	Termination by Any Party	20
	Section 14.3	Termination by the Advisor	20
	Section 14.4	Termination by the Company	20
	Section 14.5	Survival	21
	 	 	 
	ARTICLE  XV	PAYMENTS TO AND DUTIES OF PARTIES UPON TERMINATION	21
	Section 15.1	Reimbursable Expenses and Earned Fees	21
	Section 15.2	Advisor’s Duties Upon Termination	21
	Section 15.3	Non-Solicitation	21
	 	 	 
	ARTICLE  XVI	ASSIGNMENT TO AN AFFILIATE	22
	 	 	 
	ARTICLE  XVII	INCORPORATION OF THE CHARTER AND THE OPERATING PARTNERSHIP AGREEMENT	22
	 	 	 
	ARTICLE  XVIII	 INDEMNIFICATION BY THE COMPANY AND THE OPERATING PARTNERSHIP	22
	 	 	 
	ARTICLE  XIX	INDEMNIFICATION BY ADVISOR	23
	 	 	 
	ARTICLE XX	LIMITATION OF LIABILITY	23
	 	 	 
	ARTICLE XXI	NOTICES	23
	 	 	 
	ARTICLE  XXII	MODIFICATION	24
	 	 	 
	ARTICLE  XXIII	SEVERABILITY	25
	 	 	 
	ARTICLE XXIV	CONSTRUCTION/GOVERNING LAW	25
	 	 	 
	ARTICLE  XXV	ENTIRE AGREEMENT	25
	 	 	 
	ARTICLE  XXVI	INDULGENCES, NOT WAIVERS	25
	 	 	 
	ARTICLE XXVII	GENDER	25
	 	 	 
	ARTICLE XXVIII	TITLES NOT TO AFFECT INTERPRETATION	25
	 	 	 
	ARTICLE XXIX	EXECUTION IN COUNTERPARTS	26
	 	 	 
	ARTICLE  XXX	INITIAL INVESTMENT	26

 

    ii 

     

    

 

FORM OF AMENDED AND RESTATED ADVISORY AGREEMENT

 

THIS AMENDED AND RESTATED
ADVISORY AGREEMENT, dated as of ____________, 2017, is entered into among PHILLIPS EDISON GROCERY CENTER REIT III, INC., a Maryland
corporation (the “Company”), PHILLIPS EDISON GROCERY CENTER OPERATING PARTNERSHIP III, L.P., a Delaware limited partnership
(the “Operating Partnership”) and PECO-GRIFFIN REIT ADVISOR, LLC, a Delaware limited liability company (the “Advisor”).

 

WITNESSETH

 

WHEREAS, the Company has
raised capital pursuant to the issuance of Class A Shares of Common Stock $0.01 par value per share (the “Class A Shares”)
in a private offering pursuant to that certain Confidential Private Placement Memorandum dated October 12, 2016;

 

WHEREAS, the Advisor has
provided advisory services to the Company and the Operating Partnership pursuant to that certain Advisory Agreement, dated October
5, 2016, by and among the Company, the Operating Partnership and the Advisor (the “Original Advisory Agreement”);

 

WHEREAS, the Company, the
Operating Partnership and the Advisor now desire to amend and restate the Original Advisory Agreement;

 

WHEREAS, the Company has
filed with the Securities and Exchange Commission (“SEC”) a Registration Statement on Form S-11 (No. 333-_______) (the
“Registration Statement”) covering the issuance of up to $1,700,000,000 of its Class T Common Stock, $0.01 par value
per share (the “Class T Shares”), and Class I Common Stock, $0.01 par value per share (the “Class I Shares”),
and the Company may subsequently issue additional shares of Common Stock;

 

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

 

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

 

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

 

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

 

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

 

Article I

DEFINITIONS

 

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

 

    	 	1	 

     

    

  

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

 

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

 

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

 

“Advisor Funding”
has the meaning set forth in Section 10.4 hereof.

 

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

 

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

 

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

 

    	 	2	 

     

    

 

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

 

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

 

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

 

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

 

“Capped O&O Expenses”
means all Organizational and Offering Expenses (excluding Sales Commissions, the dealer manager fee and stockholder servicing fees)
in excess of 3.5% of the Gross Proceeds raised in a completed Offering other than Gross Proceeds from Stock sold pursuant to the
Distribution Reinvestment Plan.

 

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

 

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

 

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

 

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

 

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

 

“Common Stock”
means the Class A Shares, the Class T Shares and the Class I Shares, the terms and conditions of which are set forth in the Charter.

 

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

 

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

 

    	 	3	 

     

    

  

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

 

“Contingent Advisor
Payment” has the meaning set forth in Section 9.1 hereof.

 

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

 

“Contract Sales Price” means the total
consideration set forth in a definitive agreement relating to any Sale.

 

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

 

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

 

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

 

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

 

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

 

“Distribution Reinvestment
Plan” means any distribution reinvestment plan of the Company approved by the Board and as set forth in the Prospectus.

 

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

 

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

 

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

 

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

 

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

 

“Gross Proceeds”
means the aggregate purchase price of all Stock sold for the account of the Company, including Stock sold pursuant to the Distribution
Reinvestment Plan, without deduction for Sales Commissions, volume discounts, fees paid to the Dealer Manager or other Organization
and Offering Expenses. Gross Proceeds does not include the value of Stock issued in exchange for OP Units.

 

    	 	4	 

     

    

  

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

 

“Initial Public Offering”
means the offering and sale of the Class T Shares and the Class I Shares of the Company pursuant to the Company’s first effective
registration statement covering such Common Stock filed under the Securities Act of 1933.

 

“Joint Venture”
or “Joint Ventures” means those joint venture or general partnership arrangements in which the Company or the Operating
Partnership is a co-venturer or general partner which are established to acquire Properties. “NASAA” means the North
American Securities Administrators Association, Inc.

 

“Liquidity Event”
means any Sale, merger, reorganization, business combination, share exchange, acquisition by any Person or related group of Persons
of beneficial ownership of all or substantially all of the Securities, or other similar transaction involving the Company or the
Operating Partnership pursuant to which the holders of Securities receive for their Securities, as full or partial consideration,
cash, equity securities or a combination thereof.

 

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

 

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

 

“Offering” means
an offering of Stock that is registered with the SEC, excluding Stock offered under any employee benefit plan.

 

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

 

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

 

    	 	5	 

     

    

  

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

 

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

 

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

 

“Original Advisory
Agreement” has the meaning set forth in the Recitals hereof.

 

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

 

“Property” or
“Properties” means any or all of the real properties, real estate investments and other assets (including, but not
limited to, any investments in mortgage loans and other types of real estate related debt financing, including, mezzanine loans,
bridge loans, convertible mortgages, wraparound mortgage loans, construction mortgage loans, loans on leasehold interests and participations
in such loans), which are owned by the Company either directly or through the Operating Partnership, any subsidiaries, Joint Ventures,
partnerships or other entities.

 

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

 

“Prospectus”
means any document, notice, or other communication satisfying the standards set forth in Section 10 of the Securities Act of 1933,
and contained in a currently effective registration statement filed by the Company with, and declared effective by, the SEC, or
if no registration statement is currently effective, then the Prospectus contained in the most recently effective registration
statement.

 

“Public Offering”
means the Initial Public Offering or any subsequent offering of Stock that is registered with the SEC, excluding Stock offered
under any employee benefit plan.

 

    	 	6	 

     

    

  

“Registration Statement”
has the meaning set forth in the Recitals hereof.

 

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

 

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

 

“Sale” or “Sales”
means any transaction or series of transactions whereby: (a) the Company (directly or indirectly) sells, grants, transfers, conveys
or relinquishes its ownership of any Property or portion thereof, including the lease of any Property consisting of the building
only, and including any event with respect to any Property which gives rise to a significant amount of insurance proceeds or condemnation
awards; (b) the Company (directly or indirectly) sells, grants, transfers, conveys or relinquishes its ownership of all or substantially
all of the interest in any Joint Venture in which it is (directly or indirectly) a co-venturer or partner; (c) any Joint Venture
in which the Company (directly or indirectly) is a co-venturer or partner sells, grants, transfers, conveys or relinquishes its
ownership of any Property or portion thereof, including any event with respect to any Property which gives rise to insurance claims
or condemnation awards, or all or substantially all of the Properties held by such Joint Venture; (d) the Company (directly or
indirectly) sells, grants, transfers, conveys, or relinquishes its interest in all or substantially all of its assets, or portion
thereof, including any event with respect to any asset which gives rise to a significant amount of insurance proceeds or similar
awards; or (e) the Company (directly or indirectly) sells or otherwise disposes of or distributes all of its assets in liquidation
of the Company or the Operating Partnership. “Sales Commissions” means any and all commissions payable to underwriters,
dealer managers or other broker-dealers in connection with the sale of Stock, including, without limitation, commissions payable
to the Dealer Manager.

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	7	 

     

    

 

Article II

APPOINTMENT

 

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

 

Article III

AUTHORITY OF THE ADVISOR

 

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

 

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

 

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

 

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

 

Article IV

DUTIES OF THE ADVISOR

 

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

 

    	 	8	 

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Section
4.2           Acquisition Services. The Advisor
shall:

 

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

 

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

 

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

 

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

 

    	 	9	 

     

    

 

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

 

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

 

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

 

Section
4.3           Asset Management Services and Administrative
Services.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	10	 

     

    

 

(iv)        provide
the officers of the Company and the Board with timely updates related to the overall regulatory environment affecting the Company,
as well as managing compliance with such matters, including but not limited to compliance with the Sarbanes-Oxley Act of 2002 as
applicable;

 

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

 

(vi)        perform
all reporting, record keeping, internal controls and similar matters in a manner to allow the Company to comply with applicable
law including the Sarbanes-Oxley Act of 2002 as applicable;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(c)          Stockholder
Services. The Advisor shall:

 

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

 

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

 

    	 	11	 

     

    

 

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

 

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

 

Article V

BANK ACCOUNTS

 

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

 

Article VI

RECORDS; ACCESS

 

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

 

Article VII

OTHER ACTIVITIES OF THE ADVISOR

 

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

 

    	 	12	 

     

    

 

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

 

Article VIII

LIMITATIONS ON ACTIVITIES

 

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

 

    	 	13	 

     

    

 

Article IX

FEES

 

Section
9.1           Acquisition Fees and Contingent Advisor Payment.

 

(a)          The
Company will pay the Advisor, as compensation for the services described in Section 4.2, acquisition fees (“Acquisition Fees”)
in an amount of 2.0% of the Contract Purchase Price of each Property.

 

(b)          The
Company will also pay the Advisor an additional contingent advisor payment in an amount up to 2.15% of the Contract Purchase Price
of each Property (such additional amount being the “Contingent Advisor Payment”), provided, however, that the amount
of the Contingent Advisor Payment paid upon the closing of an acquisition will be reviewed on an acquisition by acquisition basis
and such payment shall not exceed the then outstanding amounts paid by the Advisor for the Advisor Funding at the time of such
closing. For these purposes, the amounts paid by the Advisor and considered “outstanding” will be reduced by the amount
of the Contingent Advisor Payment previously paid.

 

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

 

(d)          Notwithstanding
anything to the contrary in Section 9.1(b), the Contingent Advisor Payment shall accrue and shall not be payable to the Advisor
until such time as the Advisor has funded the Advisor Funding in an amount equal to $4,500,000 (the “Contingent Advisor Investment
Amount”). The calculation of the Contingent Advisor Investment Amount shall include all amounts paid by the Sponsors and/or
the Advisor with respect to the Advisor Funding that are unreimbursed and outstanding. Once the Contingent Advisor Investment Amount
has been achieved, the Advisor will be entitled to any earned amounts of the Contingent Advisor Payment in excess of the Contingent
Advisor Investment Amount. In connection with a Follow-On Offering, the Contingent Advisor Investment Amount will be calculated
as 0.25% of the sum of (i) the primary maximum aggregate offering portion of such Follow-On Offering, plus (ii) the dollar amount
sold in the Company’s prior offerings. The Contingent Advisor Investment Amount will be paid to the Advisor by the Company
on the later of (a) the termination of the Initial Public Offering, including any Follow-On Offerings, or (b) ______________, 20__.

 

(e)          For
purposes of clarification of the purpose of the Contingent Advisor Payment, it is the intent of the parties to this Agreement that
the Contingent Advisor Payment not be considered revenue of the Advisor. Rather, the Contingent Advisor Payment is to be considered
a vehicle for funding, at the time of each Property acquisition, the reimbursement of amounts paid by the Sponsors and/or the Advisor
with respect to the Advisor Funding. Similarly, the payment of the Contingent Advisor Payment is not to be considered an expense
or a capitalized cost of the Company.

 

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

 

    	 	14	 

     

    

 

Section
9.3           Disposition Fees. If the Advisor
or an Affiliate provides a substantial amount of services (as determined by a majority of the Directors, including a majority of
the Independent Directors) in connection with a Liquidity Event, then the Advisor or such Affiliate shall receive on the date of
the consummation of such Liquidity Event a fee (such amount being the “Disposition Fee”) in an amount equal to 2% of
the applicable Contract Sales Price; provided that the payment of any Disposition Fees by the Company shall be subject to any limitations
contained in the Charter. Any Disposition Fee payable under this section may be paid in addition to real estate commissions paid
to non-Affiliates, provided that the total real estate commissions (including such Disposition Fee) paid to all Persons by the
Company or the Operating Partnership for each Sale shall not exceed an amount equal to the lesser of (i) 6% of the aggregate Contract
Sales Price of each Property or (ii) the Competitive Real Estate Commission for each Property. For purposes of this Section 9.3,
“substantial amount of services” in connection with a Sale includes the preparation of an investment package for the
Property (including a new investment analysis, rent rolls, tenant information regarding credit, a property title report, an environmental
report, a list of prospective buyers, a structural report and exhibits) or such other substantial services performed by the Advisor
or any of its Affiliates in connection with a Sale.

 

Article X

EXPENSES

 

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

 

(a)          reimbursements
for Organizational and Offering Expenses in connection with an Offering to the extent such expenses exceed 1.0% of Gross Proceeds
from the Offering, provided, however, that within 60 days after the end of the month in which an Offering terminates, the
Advisor shall reimburse the Company to the extent (i) there are Capped O&O Expenses borne by the Company or (ii) Organization
and Offering Expenses borne by the Company (including Sales Commissions, dealer manager fees, stockholder servicing fees and non-accountable
due diligence expense allowance but not including Acquisition Fees or Acquisition Expenses) exceed 15% of the Gross Proceeds raised
in a completed Offering;

 

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

 

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

 

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

 

    	 	15	 

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	16	 

     

    

 

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

 

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

 

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

 

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

 

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

 

Section
10.3         Timing of and Limitations on Reimbursements.

 

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

 

(b)          Commencing
on the date that is four full fiscal quarters after the Company’s acquisition of its first Property after commencement of
the Offering, the Company shall not reimburse the Advisor at the end of any fiscal quarter Operating Expenses that, in 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 NASAA Net Income (the “Excess Expense Guidelines”) for such year unless a majority
of the Independent Directors determines that such excess was justified, based on unusual and nonrecurring factors which they deem
sufficient. If a majority of the Independent Directors does not approve such excess as being so justified, any Excess Amount paid
to the Advisor during a fiscal quarter shall be repaid to the Company. If a majority of the Independent Directors determines such
excess was justified, then within 60 days after the end of any fiscal quarter of the Company for which total reimbursed Operating
Expenses for the Expense Year exceed the Excess Expense Guidelines, the Advisor, at the direction of a majority of the Independent
Directors, shall send to the Stockholders a written disclosure of such fact (or
the Company shall disclose such fact to the Stockholders in the next quarterly report of the Company or by filing a Current Report
on Form 8-K with the SEC within 60 days of such quarter end), together with an explanation of the factors a majority of
the Independent Directors considered in determining that such excess expenses were justified. The Company will ensure that such
determination will be reflected in the minutes of the meetings of the Board of Directors. All figures used in the foregoing computation
shall be determined in accordance with GAAP.

 

    	 	17	 

     

    

 

Section
10.4         Fees Funded by Advisor. In connection with the Initial
Public Offering, and in accordance with the Dealer Manager Agreement, the Advisor will (a) fund a portion of the dealer manager
fee otherwise payable by the Company under the dealer manager agreement for the Initial Public Offering in an amount equal to 2%
of the Gross Proceeds of any Securities sold by the Company, excluding sales of shares of Common Stock sold pursuant to any Distribution
Reinvestment Plan, and (b) pay the Company’s Organization and Offering Expenses in connection with an Offering up to 1.0%
of the Gross Proceeds from the Offering (such amounts under subclauses (a) and (b) being collectively the “Advisor Funding”).

 

Article XI

NO PARTNERSHIP OR JOINT VENTURE

 

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

 

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

 

Article XII

RELATIONSHIP WITH DIRECTORS

 

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

 

Article XIII

REPRESENTATIONS AND WARRANTIES

 

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

 

    	 	18	 

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	19	 

     

    

 

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

 

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

 

Article XIV

TERM; TERMINATION OF AGREEMENT

 

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

 

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

 

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

 

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

 

    	 	20	 

     

    

 

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

 

Article XV

PAYMENTS TO AND DUTIES OF

PARTIES UPON TERMINATION

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	21	 

     

    

 

Article XVI

ASSIGNMENT TO AN AFFILIATE

 

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

 

Article XVII

INCORPORATION OF THE CHARTER AND THE OPERATING
PARTNERSHIP AGREEMENT

 

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

 

Article XVIII

INDEMNIFICATION BY THE COMPANY AND THE OPERATING PARTNERSHIP

 

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

 

(a)          The
directors or the Advisor or its Affiliates have determined, in good faith, that the course of conduct that caused the loss or liability
was in the best interests of the Company and the Operating Partnership, as applicable;

 

(b)          The
Advisor or its Affiliates were acting on behalf of or performing services for the Company or the Operating Partnership;

 

(c)          Such
liability or loss was not the result of negligence or misconduct by the Advisor or its Affiliates; and

 

(d)          Such
indemnification or agreement to hold harmless is recoverable only out of the Company’s net assets, including insurance proceeds,
and not from its Stockholders.

 

    	 	22	 

     

    

 

(e)          With
respect to losses, liabilities or expenses arising from or out of an alleged violation of federal or state securities laws, one
or more of the following conditions are met: (i) there has been a successful adjudication on the merits of each count involving
alleged securities law violations as to the particular indemnitee; (ii) such claims have been dismissed with prejudice on the merits
by a court of competent jurisdiction as to the particular indemnitee; or (iii) a court of competent jurisdiction approves a settlement
of the claims against a particular indemnitee and finds that indemnification of the settlement and the related costs should be
made, and the court considering the request for indemnification has been advised of the position of the SEC and of the published
position of any state securities regulatory authority in which securities of the Company were offered or sold as to indemnification
for violations of securities laws. Notwithstanding the foregoing, the Advisor shall not be entitled to indemnification or be held
harmless pursuant to this Article XVIII for any activity which the Advisor shall be required to indemnify or hold harmless the
Company and the Operating Partnership pursuant to Article XIX.

 

(f)          The
Company shall pay or reimburse reasonable legal expenses and other costs incurred by the Advisor or its Affiliates, or by any of
their respective officers, directors, equity holders, members, partners and employees, in advance of the final disposition of a
proceeding only if (in addition to any applicable procedures required by the Maryland General Corporation Law, as amended from
time to time) all of the following are satisfied: (a) the proceeding relates to acts or omissions with respect to the performance
of duties or services on behalf of the Company; (b) the legal proceeding was initiated by a third party who is not a Stockholder
or, if by a Stockholder acting in his or her capacity as such, a court of competent jurisdiction approves such advancement; and
(c) such Person undertakes to repay the amount paid or reimbursed by the Company, together with the applicable legal rate
of interest thereon, if it is ultimately determined that such Person is not entitled to indemnification.

 

Article XIX

INDEMNIFICATION BY ADVISOR

 

The Advisor shall indemnify
and hold harmless the Company and the Operating Partnership from contract or other liability, claims, damages, taxes or losses
and related expenses including attorneys’ fees, to the extent that such liability, claims, damages, taxes or losses and related
expenses are not fully reimbursed by insurance and are incurred by reason of the Advisor’s gross negligence, bad faith, fraud,
willful misfeasance, misconduct, or reckless disregard of its duties, but Advisor shall not be held responsible for any action
of the Board in declining to follow any advice or recommendation given by the Advisor.

 

Article XX

LIMITATION OF LIABILITY

 

In no event will the parties
be liable for damages based on loss of income, profit or savings or indirect, incidental, consequential, exemplary, punitive or
special damages of the other party or person, including third parties, even if such party has been advised of the possibility of
such damages in advance, and all such damages are expressly disclaimed.

 

Article XXI

NOTICES

 

Any notice in this Advisory
Agreement permitted to be given, made or accepted by either party to the other, must be in writing and may be given or served by
(i) personal delivery with receipt acknowledged, or (ii) deposited for next day delivery by Federal Express or other similar overnight
courier service. All notices so given shall be deemed received: (A) when actually received, if personally delivered, or (B) when
delivered (or when delivery is refused) if sent via an overnight courier. For purposes hereof the addresses of the parties, until
changed as hereafter provided, shall be as follows:

 

    	 	23	 

     

    

 

	 	To the Company:	Phillips Edison Grocery Center REIT III, Inc.
	 	 	Attention: Jeffrey S. Edison
	 	 	222 S. Main Street, Suite 1730
	 	 	Salt Lake City, Utah 84101
	 	 	 
	 	With a copy to:	Chairman of the Conflicts Committee
	 	 	Phillips Edison Grocery Center REIT III, Inc.
	 	 	222 S. Main Street
	 	 	Salt Lake City, Utah 84101
	 	 	 
	 	 	DLA Piper LLP (US)
	 	 	Attention: Robert Bergdolt, Esq.
	 	 	4141 Parklake Drive, Suite300
	 	 	Raleigh, North Carolina 27612
	 	 	 
	 	To the Operating Partnership:	Phillips Edison Grocery Center Operating Partnership III, L.P.
	 	 	Attention: Jeffrey S. Edison
	 	 	222 S. Main Street, Suite 1730
	 	 	Salt Lake City, Utah 84101
	 	 	 
	 	With a copy to:	DLA Piper LLP (US)
	 	 	Attention: Robert Bergdolt, Esq.
	 	 	4141 Parklake Drive, Suite 300
	 	 	Raleigh, North Carolina 27612
	 	 	 
	 	To the Advisor:	PECO-Griffin REIT Advisor, LLC 
	 	 	Attention:  Jeffrey S. Edison and Tanya E. Brady
	 	 	222 S. Main Street, Suite 1730
	 	 	Salt Lake City, Utah 84101
	 	 	 
	 	With a copy to:	Griffin Capital Asset Management Company, LLC
	 	 	Attention: Kevin A. Shields and Howard S. Hirsch
	 	 	Griffin Capital Plaza
	 	 	1520 E. Grand Avenue
	 	 	El Segundo, California 90245

 

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

 

Article XXII

MODIFICATION

 

This Advisory Agreement
shall not be changed, modified, terminated, or discharged, in whole or in part, except by an instrument in writing signed by the
parties hereto, or their respective successors or assignees.

 

    	 	24	 

     

    

 

Article XXIII

SEVERABILITY

 

The provisions of this
Advisory Agreement are independent of and severable from each other, and no provision shall be affected or rendered invalid or
unenforceable by virtue of the fact that for any reason any other or others of them may be invalid or unenforceable in whole or
in part.

 

Article XXIV

CONSTRUCTION/GOVERNING LAW

 

The provisions of this
Advisory Agreement shall be construed and interpreted in accordance with the laws of the State of Delaware as
at the time in effect, without regard to the principles of conflicts of laws thereof.

 

Article XXV

ENTIRE AGREEMENT

 

This Advisory Agreement
contains the entire agreement and understanding among the parties hereto with respect to the subject matter hereof, and supersedes
all prior and contemporaneous agreements (including the Original Advisory Agreement), understandings, inducements and conditions,
express or implied, oral or written, of any nature whatsoever with respect to the subject matter hereof. The express terms hereof
control and supersede any course of performance and/or usage of the trade inconsistent with any of the terms hereof. This Advisory
Agreement may not be modified or amended other than by an agreement in writing.

 

Article XXVI

INDULGENCES, NOT WAIVERS

 

Neither the failure nor
any delay on the part of a party to exercise any right, remedy, power or privilege under this Advisory Agreement shall operate
as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further
exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege
with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence.
No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver.

 

Article XXVII

GENDER

 

Words used herein regardless
of the number and gender specifically used, shall be deemed and construed to include any other number, singular or plural, and
any other gender, masculine, feminine or neuter, as the context requires.

 

Article XXVIII

TITLES NOT TO AFFECT INTERPRETATION

 

The titles of paragraphs
and subparagraphs contained in this Advisory Agreement are for convenience only, and they neither form a part of this Advisory
Agreement nor are they to be used in the construction or interpretation hereof.

 

    	 	25	 

     

    

 

Article XXIX

EXECUTION IN COUNTERPARTS

 

This Advisory Agreement
may be executed in any number of counterparts, each of which shall be deemed to be an original as against any party whose signature
appears thereon, and all of which shall together constitute one and the same instrument. This Advisory Agreement shall become binding
when the counterparts hereof, taken together, bear the signatures of all of the parties reflected hereon as the signatories.

 

Article XXX

INITIAL INVESTMENT

 

The Advisor has purchased
22,222 shares (the “Advisor Shares”) of Common Stock for $200,000. The Advisor may not sell the Advisor Shares while
the Advisor acts in such advisory capacity to the Company or the Operating Partnership, provided, that the Advisor Shares may be
transferred to Affiliates of the Advisor. Affiliates of the Advisor may not sell any of the Advisor Shares while the Advisor acts
in such advisory capacity to the Company or the Operating Partnership, provided, that the Advisor Shares may be transferred to
the Advisor or other Affiliates of the Advisor. The restrictions included above shall not apply to any other Securities acquired
by the Advisor or its Affiliates. With respect to any Securities owned by the Advisor, the Directors, or any of their Affiliates,
neither the Advisor, nor the Directors, nor any of their Affiliates may vote or consent on matters submitted to the Stockholders
regarding the removal of the Advisor, Directors or any of their Affiliates or any transaction between the Company and any of them.
In determining the requisite percentage in interest of Securities necessary to approve a matter on which the Advisor, Directors
and any of their Affiliates may not vote or consent, any Securities owned by any of them shall not be included.

 

Article XXXI
 

RIGHTS OF THE ADVISOR AND ITS AFFILIATES

 

(a)          One
of the Sponsors, Phillips Edison Limited Partnership, and/or its Affiliates has a proprietary interest in the name and mark “Phillips
Edison”, “PELP” and “PECO”. Accordingly, and in recognition of this right, if at any time the Advisor
or an Affiliate thereof ceases to perform the services of the Advisor under this Agreement or any successor agreement, the Company
or the Operating Partnership, as the case may be, will, promptly after receipt of written request from such Sponsor or the Advisor,
cease to conduct business under or use the name or mark “Phillips Edison”, “PELP”, “PECO” or
any variations or derivations thereof and the Company and the Operating Partnership shall, within five (5) business days of such
cessation, (i) each change its name (and the names of any of their Affiliates) to a name that does not contain the name “Phillips
Edison”, “PELP” and/or “PECO” (ii) cease to use the mark “Phillips Edison”, “PELP”
and/or “PECO” and (iii) shall not use in its name any marks or other word or words that might, in the sole discretion
of Phillips Edison Limited Partnership, be susceptible of indication of some form of relationship between the Company and the Advisor,
Sponsor or Affiliate thereof. Consistent with the foregoing, the parties acknowledge and agree that Phillips Edison Limited Partnership,
or one or more of its Affiliates may in the future organize, sponsor or otherwise permit to exist other investment vehicles (including
vehicles for investment in real estate) and financial and service organizations using “Phillips Edison”, “PELP”
and/or “PECO” as part of their name or one of their service marks, all without the need for any consent (and without
the right to object thereto) by the Company or its Board. The parties acknowledge and agree that each of the Sponsors retains ownership
of and reserve all intellectual property rights in their respective proprietary property. To the extent that the Company has or
obtains any claim to any right, title of interest in any proprietary property of either Sponsor, the Company hereby assigns and
transfers exclusively to the applicable Sponsor all right title and interest, including without limitation all intellectual property
rights, free and clear of all liens, encumbrances or licenses in favor of the Company or any other party, in and to the proprietary
property to the applicable Sponsor, including but not limited to the execution of any instruments or documents now or hereafter
requested by the Advisor to perfect, defend or confirm the assignment described herein, in a form determined by the Advisor.

 

    	 	26	 

     

    

 

(b)          One
of the Sponsors, Griffin Capital Corporation, and/or its Affiliates has a proprietary interest in the name and mark “Griffin”
and “Griffin Capital”. Accordingly, and in recognition of this right, if at any time the Advisor or an Affiliate thereof
ceases to perform the services of the Advisor under this Agreement or any successor agreement, the Company or the Operating Partnership,
as the case may be, will, promptly after receipt of written request from such Sponsor or the Advisor, cease to conduct business
under or use the name or mark “Griffin”, “Griffin Capital” or any variations or derivations thereof and
the Company and the Operating Partnership shall, within five (5) business days of such cessation, (i) each change its name (and
the names of any of their Affiliates) to a name that does not contain the name “Griffin” and/or “Griffin Capital”
(ii) cease to use the mark “Griffin” and/or “Griffin Capital” and (iii) shall not use in its name any marks
or other word or words that might, in the sole discretion of Griffin Capital Corporation, be susceptible of indication of some
form of relationship between the Company and the Advisor, Sponsor or Affiliate thereof. Consistent with the foregoing, the parties
acknowledge and agree that Griffin Capital Corporation, or one or more of its Affiliates may in the future organize, sponsor or
otherwise permit to exist other investment vehicles (including vehicles for investment in real estate) and financial and service
organizations using “Griffin” and/or “Griffin Capital” as part of their name or one of their service marks,
all without the need for any consent (and without the right to object thereto) by the Company or its Board. The parties acknowledge
and agree that each of the Sponsors retains ownership of and reserve all intellectual property rights in their respective proprietary
property. To the extent that the Company has or obtains any claim to any right, title of interest in any proprietary property of
either Sponsor, the Company hereby assigns and transfers exclusively to the applicable Sponsor all right title and interest, including
without limitation all intellectual property rights, free and clear of all liens, encumbrances or licenses in favor of the Company
or any other party, in and to the proprietary property to the applicable Sponsor, including but not limited to the execution of
any instruments or documents now or hereafter requested by the Advisor to perfect, defend or confirm the assignment described herein,
in a form determined by the Advisor.

 

[Signatures
appear on next page]

 

    	 	27	 

     

    

 

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

 

	 	THE COMPANY:
	 	 
	 	PHILLIPS EDISON GROCERY CENTER REIT III, INC.
	 	 	 
	 	By:	 
	 	 	 
	 	THE OPERATING PARTNERSHIP:
	 	 
	 	PHILLIPS EDISON GROCERY CENTER OPERATING PARTNERSHIP III, L.P.
	 	 	 
	 	BY:	PHILLIPS EDISON GROCERY CENTER REIT III, INC., ITS GENERAL PARTNER
	 	 	 
	 	By:	 
	 	 	 
	 	THE ADVISOR:
	 	 
	 	PECO-GRIFFIN REIT ADVISOR, LLC
	 	 	 
	 	By:Exhibit 10.3

 

MASTER PROPERTY MANAGEMENT, 

LEASING AND CONSTRUCTION MANAGEMENT AGREEMENT

 

THIS MASTER PROPERTY, LEASING
AND CONSTRUCTION MANAGEMENT AGREEMENT (“Agreement”) is made and entered into as of October 5, 2016, by and among ,
a PHILLIPS EDISON GROCERY CENTER REIT III, INC., a Maryland corporation (“REIT”), PHILLIPS EDISON GROCERY CENTER OPERATING
PARTNERSHIP III L.P., a Delaware limited partnership (“OP”), and PHILLIPS EDISON & COMPANY LTD., an Ohio limited
liability company (“PECO”).

 

RECITALS:

 

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

 

B.           PECO
operates, manages, leases and manages construction with respect to shopping center properties located throughout the continental
Unites States.

 

C.           Owner
desires to engage PECO, and PECO desires to accept such engagement, to manage the shopping center properties owned or hereafter
acquired by Owner under the terms and conditions set forth herein.

 

NOW THEREFORE, in consideration
of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, 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 of such
terms are equally applicable both to the singular and plural forms thereof:

 

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

 

		1.2.	“Major Lease” means a lease of premises containing 10,000 square feet of leaseable
area or more, with an initial term of 5 years or more.

 

		1.3.	“Management Fees” means the fees and expenses payable to PECO pursuant to Section
9, “Compensation” hereof.

 

     

     

    

 

		1.4.	“Property Personnel” means persons hired or retained as employees of PECO to
perform services at or for the Properties, which services include, but are not limited to, property management, property-level
accounting and book-keeping services, property-level budgeting and forecasting, economic development, and property-level tax preparation
services; provided, however, that the following persons shall not be considered Property Personnel: (i) any 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 PECO and/or as an executive officer of Owner.

 

		1.5.	“Owner” has the meaning set forth in Recital A.

 

		1.6.	“PECO” has the meaning set forth in the introductory paragraph above.

 

		1.7.	“Property” means an individual real estate asset owned by Owner and all tracts
acquired by Owner related to that asset subject to this Agreement as more fully described in a Property Addendum (as defined below).

 

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

 

		1.9.	“Property Addendum” means an addendum (as the same may be modified, amended
or supplemented in writing, from time to time) which shall be attached to this Agreement and incorporated herein by reference as
each Property is purchased and made subject to this Agreement describing the Property, including its real estate and the improvements
thereon. If any Property is sold by Owner, the Property Addendum with respect to such Property at Owner’s election, shall
be deemed of no further force or effect from and after the closing of any such sales, except to the extent of post-closing management
and accounting functions thereafter to be performed.

 

		2.	Appointment of PECO.

 

		2.1.	Engagement as Manager. Owner hereby engages and retains PECO as the sole and exclusive manager
of each Property that has an executed Property Addendum with respect to the property management function, to perform such functions
as are specified in this Agreement and/or on the Property Addendum. PECO hereby accepts such appointment.

 

		2.2.	Engagement as Leasing Agent. Owner hereby engages and retains PECO as the sole and exclusive
leasing agent for the leasing of all space in each Property that has an executed Property Addendum with respect to the leasing
agent function, as well as for obtaining ground leases on any outparcels. PECO shall perform such functions as are specified in
this Agreement and/or on the Property Addendum. PECO hereby accepts such appointment.

 

		2.3.	Engagement as Construction Manager. Owner hereby engages and retains PECO as the sole and
exclusive construction manager of each Property that has an executed Property Addendum with respect to the construction management
function, to perform such functions as are specified in this Agreement and/or on the Property Addendum. PECO hereby accepts such
appointment.

 

    	 	- 2 -	 

     

    

 

		2.4.	Independent Contractor. PECO shall act under this Agreement as an independent contractor
and not as the Owner’s agent employee or fiduciary. PECO 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. Any action taken by PECO which is not
expressly permitted by this Agreement shall not bind the Owner.

 

		3.	Standards.PECO will in good faith, with
due diligence and in accordance with generally accepted management and construction management standards in the shopping center
industry within the geographical areas of the respective Properties, perform its management, leasing, and construction management
duties and obligations as described in this Agreement. In all events, the standards of performance shall be consistent with the
standards to which PECO performs with respect to its own portfolio of properties.

 

		4.	Term.This Agreement commences upon full
execution of this Agreement and continues until terminated in accordance with Section 10.

 

		5.	Duties of PECO - Property Manager. PECO’s
duties as property manager for the Properties include the following for each of the Properties and for Owner, as applicable:

 

		5.1.	For Accounting and Finance. 

 

a)        PECO
will 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 require, PECO will
timely make or verify calculations 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. Where required, PECO will
give timely notice of the calculations to tenants.

 

		b)	With respect to cash management:

 

		1)	PECO will establish on behalf of the OWNER a concentration account (a “Concentration Account”)
at a bank to be specified in writing by Owner, which 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, PECO may not commingle its funds or property
or the funds or property of any other entities for which is provides services with any other funds or property of Owner.

 

		2)	Notwithstanding the preceding, if (a) required by the governing documents of the Owner, 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 PECO following written notice from Owner. Funds released from any lockbox account or other arrangement to the custody
of the Owner shall otherwise follow the above procedures.

 

    	 	- 3 -	 

     

    

 

		3)	To the extent required by the foregoing paragraph(s), PECO will establish on behalf of the Owner
for each Property an operating account (an “Operating Account”) at a bank to be agreed upon in writing by Owner
upon receipt of a fully-executed Property Addendum and a W9 completed by the Owner. If not required by the foregoing paragraph(s),
multiple properties may share the same Operating Account. The Operating Account and all funds therein shall be 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. Notwithstanding anything to the contrary contained in this Agreement, the Owner
may direct payments or deposits received by PECO or payments or transfers from the Operating Account for a Property to deviate
from the above procedures by a written request to PECO. If an Owner requests a deviation, then PECO will provide the Owner with
all information necessary to effect the deposits, transfers or payments.

 

		4)	If required by state law, PECO will 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.

 

		5)	PECO will pay all invoices from a control disbursement account, funded by the Concentration Account,
unless directed otherwise by the Owner or lender requirements.

 

		6)	On or before the 25th day of each month, PECO will prepare and submit an invoice to the Owner accompanied
by a computation of the fees and expense reimbursements due to PECO in accordance with this Agreement. The Owner has the right
to review the invoices and obtain supporting documentation from PECO. If the Owner believes the computation provided by PECO is
inconsistent with the computation permitted under this Agreement, then the Owner and PECO will work together in good faith to reach
a computation of fees which is reasonably agreeable to both parties.

 

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

 

    	 	- 4 -	 

     

    

  

c)        PECO
will pay the fees, charges, expenses and commissions of independent contractors (including without limitation architects, engineers,
subcontractors, and suppliers) who contract with PECO in the management, operation, maintenance or repair of the Properties; subject,
however, to the terms of this Agreement relating to allocation of expenses and to PECO’s review and approval of the charges.

 

d)        PECO
will promptly and diligently enforce the Owner’s rights under any tenant leases affecting any Property. The following actions
may be taken without the Owner’s prior written consent but PECO will promptly notify the Owner of such action: (a) in a court
of special jurisdiction, signing and serving such notices as are deemed necessary by PECO, and (b) recovering rents and other sums
due by legal proceedings in a magistrate’s court or similar jurisdiction. The following actions require the Owner’s
prior consent: (w) terminating tenancies, (x) instituting and prosecuting actions, and evicting tenants, (y) settling or releasing
actions or suits or re-instituting tenancies, and (z) recovering sums due by legal proceedings in a court of general jurisdiction.
When appropriate in PECO’s commercially reasonably judgment, PECO will consult an attorney for the purpose of enforcing the
Owner’s rights or taking any enforcement actions. The Owner shall have the right to designate counsel for any matter and
to control all litigation affecting or arising out of the operation of any Property.

 

e)        PECO
will prepare and maintain routine and customary financial and business books and records for Owner and the Properties and employ
and supervise outside accountants for preparation of income and other tax returns and specialty accounting services for Owner and
the Properties. PECO will prepare income and other tax returns and specialty accounting services or, as deemed necessary by PECO,
have them prepared by third party professionals and supervised by PECO at Owner’s expense. PECO 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).

 

f)         PECO
will maintain fixed asset accounting detail and related depreciation.

 

    	 	- 5 -	 

     

    

 

g)        PECO
will, in coordination with the Owner’s Investment Committee, 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 PECO for the operation, repair and maintenance of the
Properties (the “Budget”) and a marketing and leasing plan on the Properties (a “Plan”),
in each case for the calendar year immediately following such submission. Each Budget and Plan will be in the form approved by
the Owner. PECO will submit a Budget and Plan for each Property to Owner on or prior to October 15 of the year preceding the January
1 of the year to which such budget shall apply. Owner has 21 days after receipt of the proposed Budget and Plan to approve or reject
the same in writing; provided, that any rejection must be accompanied by a reasonably detailed explanation of the issue or requested
changes. If a proposed Budget or Plan is not approved, then PECO will submit a revised draft Budget and Plan to Owner within 10
days after it receives Owner’s comments. Owner then has 10 days after receipt of the revised Budget and Plan to again approve
or reject the proposals. Until the parties reach agreement on a Budget and Plan for a Property, PECO shall operate the applicable
Property on the Budget and Plan most recently approved by Owner.

 

If any expenditure
to be made by PECO exceeds the applicable line item in the prior year’s Budget by 5% or more, or if PECO proposes to incur
any liability for any item in excess of $10,000 that not reflected on the Budget or the Plan, then PECO may not make that expenditure
without first obtaining Owner’s written consent; provided, that uncontrollable expenditures and emergencies, including without
limitation snow and ice removal, electricity, insurance premiums and emergency items outside of the control of PECO, are excluded
from the variance limitation. PECO will provide supporting information reasonably requested by the Owner in connection with its
review of any proposed Budget or Plan. PECO shall provide a report to the 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.

 

PECO will
implement the Budget and Plan 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 PECO to expend necessary monies to manage and operate the
Properties in accordance with the Budget and 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 and Plan constitutes an authorization for PECO to collect
bids for the expenditure and present a final recommendation to the Owner for expenditure of monies to implement the items called
for in the Budget and Plan.

 

h)        PECO
will pay 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 arise under the employee health or worker’s compensation programs maintained by PECO, employee-related overhead
expenses and associated administrative charges with respect to any Property Personnel (collectively, “Employee Benefits”),
all of which are an operating expense of the Properties and shall be in accordance with approved Budgets. The number and classification
of employees serving each Property shall be as determined by PECO to be appropriate for the proper operation of each Property.

 

i)         PECO
will deliver to Owner, within 20 days after the end of each month during the term, the monthly reporting package that relates to
the Properties and the immediately preceding calendar month or any portion, the details which reports, and what must be included
in each package, as agreed to by the parties. The reporting package will be made on an accrual basis and include all such transactions,
whether or not reimbursable pursuant to the provisions of this Agreement.

 

    	 	- 6 -	 

     

    

 

j)         PECO
will deliver to Owner, within 45 days after the end of each quarter during the term, the quarterly reporting package that relates
to the Properties and the immediately preceding calendar quarter or any portion, the details which shall reports, and what must
be included in each package, as agreed to by the parties. The reporting package will be made on an accrual basis and include all
such transactions, whether or not reimbursable pursuant to the provisions of this Agreement.

 

k)        PECO
will deliver to Owner, within 60 days after the end of each calendar year during the term, the annual reporting package that relates
to the Properties and the immediately preceding calendar quarter or any portion, the details which shall reports, and what must
be included in each package, as agreed to by the parties. The reporting package will be made on an accrual basis and include all
such transactions, whether or not reimbursable pursuant to the provisions of this Agreement.

 

l)         PECO
will 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. PECO will utilize,
on Owner’s behalf, the services of independent tax consultants and attorneys to appeal or challenge any real, personal and
ad valorem (real or personal) property taxes, and 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.

 

5.2.          For
Operations (“Asset Management”):

 

a)        PECO
will investigate, hire, train, pay, supervise and discharge the Property Personnel necessary to maintain and operate the Properties,
including without limitation property managers who have experience and education satisfactory to the Owner. The Property Personnel
shall be agents or employees of PECO and not of the Owner, but Owner has the right to approve, via the annual budget process, the
compensation of the Property Personnel for which PECO has the right to be reimbursed under this Agreement. The Owner has no right
to supervise or direct the Property Personnel.

 

PECO, at PECO’s
sole cost, will maintain during the term a bond or applicable insurance covering PECO and all persons who handle, have access to
or are responsible for the Owner’s monies, in an amount and form reasonably acceptable to the Owner. PECO 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.

 

PECO will supervise
and, at Owner’s cost will retain, to the extent such services are not sufficiently provided by Property Personnel but in
accordance with the Budget, sufficient independent contractors, subcontractors, and suppliers to provide for the management, maintenance,
repair and operation of the Properties as well as security functions.

 

    	 	- 7 -	 

     

    

 

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

 

c)        PECO
will assist in coordinating the opening and closing of the businesses of tenants, including without limitation to obtaining insurance
and signage approval.

 

d)        PECO
will purchase necessary supplies and equipment required for the proper operation, maintenance, repair and restoration of the Properties.

 

e)        PECO
will make or cause to be made repairs, replacements, renovations and capital improvements on the Properties.

 

f)         PECO
will contract and pay charges for utilities used to operate the Properties, including without limitation water, electricity, gas,
telephone and sewerage services, unless carried or covered under the respective tenant’s name.

 

g)        PECO
will contract for and maintain policies of commercial general liability and bodily injury and property damage insurance with respect
to the Properties as are acceptable to Owner.

 

h)        PECO
will advertise the Properties, by such means and media and at such costs as are in accordance with the Budget and Plan, as PECO
deems appropriate. PECO will implement an effective leasing program for the Properties on a local and national basis. This advertising
shall include attendance and facilities for ICSC and related leasing events.

 

i)         PECO
will assist in securing leases with temporary tenants or licensees for use of the Properties.

 

j)         PECO
will actively promote and market the Properties to potential tenants, current tenants and the general community.

 

k)        PECO
will 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.

 

l)         PECO
will 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 will provide Owner, together with the notice, a recommended action to bring
the Property or item into compliance.

 

m)        PECO
will maintain business-like relations with the tenants of the Properties and respond promptly to tenant complaints in a prudent,
businesslike manner.

 

    	 	- 8 -	 

     

    

 

n)        PECO
will analyze all bills received in connection with maintaining and operating the Properties, and use reasonable commercial efforts
to pay all bills within the time required to obtain discounts, if any. PECO will comply with any request from Owner from time to
time PECO forward certain bills to Owner promptly after receipt. PECO will ensure timely 1099 reporting to the IRS, with 1099’s
filed under PECO’s name and PECO’s taxpayer identification number (TIN), listing PECO as the “payer.” PECO
will provide annually a signed declaration indicating compliance with 1099 reporting, and provide this declaration to Owner with
the February Reporting Package. Penalties for misfilings as a result of PECO’s negligence are not to be charged to the Property,
but are payable by PECO.

 

5.3.            Other:

 

a)        PECO
will in accordance with the Budget or as otherwise approved in writing by Owner employ in-house or outside attorneys, at Owner’s
expense, to handle any legal matters involving the Properties. PECO employs an in-house legal department which will perform some
or all of the legal services described in this Agreement. If any employee of the internal legal department performs any services,
then the cost of the internal legal department employee shall be an operating expense of the Properties reimbursable by Owner,
based upon the Budget and consistent with the hourly rates charged internally by PECO to the other property funds for which it
performs legal services.

 

b)        PECO
will perform leasing analysis and credit underwriting with respect to prospective tenants, subtenants and assignees, and prepare
leases and other tenant related documents. PECO will engage in a competitive construction bidding process for lease-related construction
projects expected to exceed $25,000 not otherwise within the duties of a construction manager.

 

c)        PECO
will take other actions and perform other functions as PECO reasonably deems advisable or necessary for the efficient and economic
management, operation and maintenance of the Properties.

 

		6.	Duties of PECO - Leasing Agent. PECO’s
duties as leasing agent include the following:

 

6.1.          Leasing
Functions.         PECO will coordinate and negotiate the leasing of the Properties
using reasonable commercial efforts to secure executed leases (both new and renewal) from qualified tenants for available space
in the Properties. Leases must be consistent with form and terms approved by Owner unless a tenant requires use of its own lease
form. PECO is responsible for hiring all leasing agents as necessary for the leasing of the Properties, working with outside brokers
and leasing agents, and oversight of and managing the leasing process on behalf of Owner. PECO’s duties in this regard include
without limitation (1) preparing and distributing listings to potential tenants and/or their representatives and to reputable
and active real estate agents; (2) supplying sufficient information to cooperating brokers and agents to enable them to promote
the rental of the Properties, (3) marketing and promoting the Properties, (4) maintaining and updating a merchandising and leasing
plan for each Property, and (5) providing an updated leasing budget and leasing reforecast for the following twelve (12) month
period. Additionally, in connection with the budgeting process referred to in paragraph 5.1(g), PECO will submit a yearly leasing
budget for approval simultaneously with the procedure set forth above for the approval of the Budget.

 

    	 	- 9 -	 

     

    

 

6.2.          Advertising.         PECO
will advertise and place signage on the Properties regarding the leasing, provided that signage complies with all applicable governmental
laws, regulations and requirements. PECO will provide a marketing package, aerial photographs, demographic reports, site plans,
signage and a two-sided flyer for each Property at PECO’s expense, consistent with the Budget.

 

6.3.          Other
Actions. PECO will take such other action and perform such other functions as PECO or Owner deems reasonably advisable or necessary
for the efficient and economic leasing of the Properties.

 

		7.	Duties of PECO- Construction Manager. PECO’s
duties as construction manager for the Properties include the following:

 

7.1.          General.         PECO
will secure or assist in securing licenses, registrations, or permits required by law, and will comply with all ordinances, laws,
orders, codes, rules, and regulations pertaining to building improvements and/or the construction of the same. PECO will secure
lien waivers and affidavits and properly file, to the extent required, terminations of notices of commencement prior to paying
contractors.

 

7.2.          Bidding.       For
all projects estimated to cost more than $25,000.00, but as commercially reasonable in PECO’s sole judgement, PECO will
obtain bids from at least three outside contractors. PECO will select the low bid unless it has supplied Owner with a reasonable
justification for the selection of a bidder other than the low bidder (e.g., PECO determines in its reasonable discretion that
the bidder to be selected is more likely to complete the job on time, with commercially reasonable workmanship and in the most
efficient manner).

 

7.3.          New
Construction, Tenant Improvements, and Redevelopments. PECO will perform the following duties for construction of Improvements
on undeveloped land (“New Construction”) and for construction of Improvements that are to be made at the direction
of, or in conformity with lease obligations to, tenants (“Tenant Improvements”) or for the improvement to Improvements
that change the size or nature of such Improvements or for the redevelopment of Improvements (collectively, “Redevelopments”):

 

a)          All work
will be undertaken in accordance with a capital budget to be established by Owner and PECO before commencing construction activities.
PECO will provide updated and detailed project budgets to Owner as necessary during the course of construction.

 

b)          PECO
will arrange for, coordinate, supervise and advise Owner with respect to the selection of architects, contractors, design firms
and consultants, environmental firms and consultants, and the execution of design, construction and consulting contracts.

 

    	 	- 10 -	 

     

    

 

c)          PECO
will review design documents and drafts submitted by the architect or other consultants, and notify Owner in writing of any mistakes,
errors or omissions that PECO observes in the documents and any recommendations it may have with respect to the same; provided,
PECO will not in any manner be responsible for the accuracy, adequacy or completeness of such documents.

 

d)          PECO
will evaluate and make recommendations to Owner concerning cost estimates prepared by others.

 

e)          PECO
will review and evaluate proposed schedules for construction.

 

f)           When
commercially reasonable in PECO’s sole judgement, PECO will procure subcontractors through a minimum of three quotes for
any jobs estimated to involve in excess of $25,000.

 

g)          PECO
will coordinate the work of subcontractors.

 

h)          PECO
will monitor the progress of construction.

 

i)           PECO
will endeavor to work with the general contractor to identify any deficiencies in the work performed by subcontractors.

 

j)           PECO
will advise Owner with respect to alterations and modifications in any design documents submitted by the architect or other consultants
that may be in Owner’s interest, including obtaining advantages in terms of cost savings, scheduling, leasing, operation
and maintenance issues and other matters affecting the overall benefit of the project.

 

k)          PECO
will review and advise Owner on change order proposals and requests for additional services submitted to Owner.

 

l)           PECO
will schedule, coordinate, and attend necessary or appropriate project meetings.

 

m)         PECO
will monitor and coordinate punch list preparation and resolution by the subcontractors.

 

n)          PECO
will make recommendations to Owner concerning and monitor the use of the site by subcontractors, particularly as it relates to
staging and storage, ingress and egress, temporary signage, fencing, barricades, restrictions on hours of operation, safety considerations
and similar considerations.

 

o)          PECO
will coordinate, monitor, and supervise the preparation, execution, completion and filing of project-related documents, including
without limitation contracts, permit applications, licenses, certifications, zoning requirements, land use restrictions, governmental
filings applicable to the project and any other similar documents.

 

    	 	- 11 -	 

     

    

 

p)          PECO
will review and advise Owner with respect to draw requests submitted on the project.

 

q)          Upon
completion of construction, PECO will walk the completed New Construction, Tenant Improvements, or Redevelopments with Owner (upon
Owner’s discretion) or otherwise take measures to observe any visible deficiencies in the completed work. PECO will cause
the subcontractors to repair or replace any items that are determined to be deficient during this walk.

 

r)           PECO
will perform additional related project management functions as may be requested by Owner.

 

s)          PECO
will collect warranties and operation manuals, certificates, guarantees, as-builts and any similar documentation for the benefit
of Owner.

 

7.4.          New
Construction and Redevelopments. PECO will perform the following duties with respect to New Construction and Redevelopments:

 

a)          PECO
will provide Owner with a budget for each Improvement to be built prior to beginning construction of the respective Improvement.

 

b)          PECO
will meet on a regular basis with Owner’s leasing agents and representatives of prospective tenants.

 

c)          PECO
will arrange for, coordinate, supervise and advise Owner with respect to various development services prior to design and construction
of the Project, including due diligence, site investigations, land use and zoning matters, and similar development services.

 

7.5.          Tenant
Improvements. PECO will perform the following duties related to Tenant Improvements:

 

a)          EPCO
will arrange for and supervise the performance of all installations and improvements in space leased to any tenant which are either
expressly required under the terms of a lease of such space or which are customarily provided to tenants.

 

b)          PECO
will meet with tenants and prospective tenants and their architects, engineers, consultants and contractors to facilitate design
and construction of leasehold improvements.

 

c)          PECO
will maintain separate files as to each tenant, and thereby document the entire design and construction process for each tenant.

 

d)          PECO
will compile and disseminate such data regarding each tenant as Owner may reasonably require.

 

    	 	- 12 -	 

     

    

 

7.6.          Duties
with Respect to Tenant Directed Improvements.         PECO will supervise
and facilitate tenant installations performed by the tenant and/or tenant’s contractors, including:

 

a)          PECO
will review and evaluate lease exhibit language that identifies the scope and nature of tenant construction of the improvements.

 

b)          PECO
will review tenant construction documents for compliance with landlord criteria and requirements applicable to the improvements.

 

c)          PECO
will review and evaluate proposed schedules for tenant construction.

 

d)          PECO
will coordinate delivery of shell space to tenants as required by the tenant’s lease.

 

e)          PECO
will monitor the progress of tenant construction including without limitation compliance with scheduling requirements, compliance
with rules and regulations of the Property, verify that tenant has obtained proper permits, and coordinating requests for tenant
improvement allowance draws.

 

f)           PECO
will maintain appropriate files and records as to each project documenting the design and construction process for each tenant
in a manner consistent with PECO’s record retention guidelines.

 

7.7.          Duties
with Respect to All Improvements.         PECO will supervise all Improvement
projects, including without limitation preparing budgets, plans, bidding, subcontractor selection, material selection, job supervision,
and collecting lien waivers, sworn statements and affidavits. PECO will require lien waivers, sworn statements, affidavits and
similar documentation as a condition to disbursement.

 

		8.	Duties - Other.         PECO
will comply with the reasonable requests of Owner related to property management, leasing, and construction management of the
Improvements to be made to, the Properties. Owner will maintain sufficient funds in an account or accounts so that PECO will have
funds available to pay all obligations contemplated under this Agreement when due. Under no circumstances will PECO have any obligations
or duty to advance funds to or for the account of Owner.

 

8.1.          Ownership
Agreements. Owner will obtain, review and provide to PECO copies of all (1) 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 thereto (collectively, the “Ownership Agreements”), and (2) mortgages on all Properties, Owner will inform
PECO of any restrictions relating to property use arising from the Ownership Agreements or mortgages. PECO will use reasonable
care to avoid any act or omission which, in the performance of its duties hereunder, 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 PECO shall promptly notify Owner
if it becomes aware that any conflict arises.

 

    	 	- 13 -	 

     

    

 

8.2.          Periodic
Meetings. As reasonably required by Owner and upon reasonable advance notice, PECO and its personnel or contractors will meet
to discuss the historical results of operations, to consider deviations from any Budget, and to discuss any other matters as requested
by the Owner.

 

		9.	Compensation and Expense Reimbursement.

 

9.1.          Management.
For each Property for which PECO provides property management services, Owner will pay PECO a monthly management fee equal to four
percent (4.0%) of the Gross Receipts (as defined below) for that given month, payable from that month’s receipts, but not
less than $3,000.00 per month for any property. “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.

 

9.2.          Leasing.
For each Property for which PECO provides leasing services, Owner will pay PECO leasing fees at market rates as specified on the
Property Addendum for such Property.

 

9.3.          Construction
Management. For each Property for which PECO provides construction management services, including without limitation services
related to the investigation and remediation of environmental conditions at the Properties, PECO will be entitled to fees for tenant
and tenant directed improvements, capital improvements and construction management services, all at market rates for the geographic
area in which the applicable Property is located, as may be more fully set forth on the applicable Property Addendum or another
writing executed by PECO and Owner.

 

    	 	- 14 -	 

     

    

 

9.4.          Expenses.
PECO will pay reimbursable expenses and costs as Owner has approved and deems advisable or necessary for the efficient and economic
management and leasing of the Properties through the Budget or as otherwise provided for in this Agreement (e.g., for marketing
or leasing programs that exceed in scope that which PECO would normally utilize for its own properties). Owner will reimburse PECO
for all such expenses, which include, to the extent included in the applicable Budget, costs of (i) Property Personnel, including
wages, salaries, commissions and Employee Benefits of Property Personnel, and supervision of Property Personnel, (ii) roving maintenance
personnel to the extent needed at the Properties from time to time, (iii) direct leasing expenses, including, but not limited to,
travel expenses for leasing personnel, (iv) travel and entertainment, (v) printing and stationery, (vi) advertising, (vii) marketing,
(viii) signage, (ix) long distance phone calls, (x) electronic filing expenses, and (xi) 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 PECO agree in writing to another basis for allocation. The costs of roving maintenance
personnel are 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 PECO for Employee Benefits
of Property Personnel in an amount equal to 20% of the total compensation payable to each employee. Employee Benefits reimbursed
to Owner 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 PECO any additional amounts to the extent that the amounts reimbursed to PECO for Employee Benefits
of an employee is less than the actual amount of Employee Benefits paid by PECO to such employee, and PECO will not be required
to reimburse Owner to the extent the Employee Benefits paid by PECO to an employee are less than the amount of Employee Benefits
reimbursed by Owner to PECO for such employee.

 

9.5.          Additional
Services. For each Property for which PECO provides Additional Services as defined in the Property Addendum, Owner will pay
to PECO the fees for the Additional Services at market rates for the geographic area in which the applicable Property is located,
as may be more fully set forth on the applicable Property Addendum or another writing executed by PECO and Owner.

 

		10.	Insurance.

 

10.1.          General.
PECO will obtain and keep in full force and effect at Owner’s expense insurance (1) on the Properties, and (2) on activities
at the Properties against such hazards as Owner and PECO deems appropriate and as may be required under any mortgage binding upon
Owner. PECO will procure insurance sufficient to comply with the leases and the Ownership Agreements. All liability policies shall
provide sufficient insurance satisfactory to both Owner and PECO and shall contain waivers of subrogation for the benefit of PECO
and the applicable Owner.

 

10.2.          Workers
and Employers. PECO will obtain and keep in full force and effect, in accordance with the laws of the state in which each Property
is located, worker’s compensation insurance covering all employees of PECO at the Properties and all persons engaged in the
performance of any work required under this Agreement. PECO will also obtain and keep in full force and effect, in accordance with
the laws of the state in which each Property is located, employer’s liability, employee theft, commercial general liability,
and umbrella insurance, and PECO will furnish Owner certificates of insurers naming Owner as co-insureds and evidencing that the
insurance is in effect and that insurer will provide directly to Owner no less than 30 days’ notice of any cancellation or
non-renewal. If any work under this Agreement is subcontracted, then PECO shall include in each subcontract a provision that the
subcontractor shall also furnish Owner, as appropriate, with a certificate evidencing coverage (and any other coverage PECO deems
appropriate in the circumstances) and name Owner as co-insured and evidence that such insurance is in effect and that insurer will
provide directly to Owner no less than 30 days’ notice of any cancellation or non-renewal, as well as indemnification as
is customary. The cost of insurance procured by PECO is reimbursable to the same extent as provided in this Agreement. The Properties
may be added to blanket policies of insurance for the coverage required under this Section so long as such blanket insurance policies
provide similar coverage to Owner as would be provided by separate insurance policies.

 

    	 	- 15 -	 

     

    

 

10.3.          Access.
PECO 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. PECO shall use its good faith efforts
in a commercially reasonable manner to comply with all requirements of insurers.

 

10.4.          Reporting.
PECO 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. PECO will prepare for approval by Owner all reports required by the applicable insurance company in
connection with any such accident, claim, damage, or destruction. Owner will reimburse PECO’s internal or third party costs
in connection with the same. All reports will be given to Owner promptly; if any report is not given within 10 days after the occurrence
of the accident, claim, damage or destruction, then PECO will noted that in the monthly reports delivered to Owner. PECO is authorized
to settle any claim against an insurance company arising out of any policy and, in connection with such claim, to execute proofs
of loss and adjustments of loss and to collect and provide receipts for loss proceeds using commercially reasonable good faith
efforts.

 

		11.	Liability of PECO.         PECO
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 PECO 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 of PECO and which is not otherwise covered by insurance held by Owner. Owner shall name
PECO as an “additional insured” or “co-insured” on any and all liability insurance policies for the Properties.
PECO 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 PECO, which is not otherwise covered by insurance held by Owner. The indemnification obligations of the parties
shall survive the expiration or termination of this Agreement.

 

    	 	- 16 -	 

     

    

 

		13.	Termination.         This
Agreement may be terminated by either party upon thirty (30) days’ written notice, in toto or only with respect to any Property,
provided that any termination will not affect any rights or obligations accrued to either party prior to termination (subject
to any offsetting claims for damages), including without limitation the payment of property management fees, leasing fees and
construction management fees earned, or reimbursable expenses incurred, to the date of termination. If a termination occurs before
a construction project is completed, then the construction management fee to be earned shall be prorated based upon the reasonably
estimated portion of the applicable project that had been completed up to the date of termination. If this Agreement is terminated,
only commissions and management fees with respect to any Properties that are subject to such termination, and reimbursable expenses
incurred, and that have accrued prior to the termination date will be due to PECO. Notwithstanding anything to the contrary contained
in this Agreement, if either Owner or PECO defaults in performing any of its obligations under this Agreement, then the other
party may terminate this Agreement effective upon delivery of notice of default. PECO’s obligations under this Agreement
for property management, leasing and construction management may, at Owner’s election, terminate as to any particular Property
upon its sale, provided that PECO’s obligations for the performance of accounting and other so-called “back office
functions” will terminate only when 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. PECO will 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, and the cost of which services will be reimbursed by Owner through the final date of
service.

 

		14.	PECO’S Obligations After Termination.         Upon
the termination of this Agreement, PECO will have the following duties, for which the obligations to perform will survive the
termination of this Agreement:

 

14.1.          Records.
PECO 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.          Assignment.
PECO 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 PECO. PECO will also, for a period of sixty (60) days immediately following the
date of termination (with respect to this entire Agreement or any Property), make itself available to consult with and advise Owner,
or its designee, regarding the operation, maintenance and leasing of the Properties.

 

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

 

    	 	- 17 -	 

     

    

 

14.4.          Services.
PECO will provide accounting services and related services for so long as required to wind-down the operation of the owner entity
which owned the Property, including without limitation preparing and filing tax returning and corporate governance documentation
for so long as required by governing authorities. Owner will reimburse PECO a reasonable fee for 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 PECO under this Agreement are in any way or in any manner deemed to create any obligations of
PECO to any third party with the exception of Owner.

 

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

 

		17.	PECO'S Action on Tenant’s Default.         If
any tenant is in default under its lease with Owner, and the reasonably expected costs are less than a threshold agreed upon by
PECO and Owner (or the value of the lease or contract is less than that threshold), then PECO has the right, in its own name or
in the name of Owner, to take all actions, including distraint, which PECO deems advisable and which Owner has the right to take.
Nothing in this paragraph is deemed to require PECO to institute legal action against any tenant. If the reasonably expected costs
exceed the agreed upon thresholds, then Owner shall only be responsible for the costs if Owner pre-approves such actions. In addition,
if Owner desires to commence legal action notwithstanding PECO’s recommendation to the contrary, then Owner will pay all
costs and reasonable attorneys' fees in connection with that action.

 

		18.	Binding Effect.         This
Agreement and all its provisions are binding upon, and inure to the benefit of, the parties and their respective successors and
assigns.

 

		19.	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.

 

		20.	Assignment.         PECO
may delegate partially or in full its duties and rights under this Agreement but only with the prior written consent of Owner.

 

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

 

    	 	- 18 -	 

     

    

 

		22.	Other Business.         Nothing
contained in this Agreement prevents PECO from engaging in other activities or business ventures, whether or not such 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 REITs) and the provision of services to other programs advised, sponsored or organized by PECO
or its affiliates or third parties. This Agreement does not limit or restrict the right of any director, officer, employee, or
stockholder of PECO 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. PECO may, with respect to any investment in which the Owner is a participant,
also render advice and service to each and every other participant therein. PECO will, however, report to the 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 PECO’s obligations to Owner and its obligations to or its interest in any other partnership, corporation,
firm, individual, trust or association.

 

		23.	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 communications 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
their respect name below or at any different address as either party shall have advised the other party in writing.

 

	REIT:	PHILLIPS EDISON GROCERY CENTER REIT III, INC.
	 	11501 Northlake Drive
	 	Cincinnati, OH 45249
	 	Attention: Vice-President
	 	 
	With a copy to:	DLA Piper LLP (US)
	 	4141 Parklake Drive, Suite 300
	 	Raleigh, North Carolina 27612
	 	Attention: Robert Bergdolt, Esq.
	 	 
	OP:	PHILLIPS EDISON GROCERY CENTER OP III L.P.
	 	11501 Northlake Drive
	 	Cincinnati, Ohio 45249
	 	Attention: Vice President
	 	 
	With a copy to:	DLA Piper LLP (US)
	 	4141 Parklake Drive, Suite 300
	 	Raleigh, North Carolina 27612
	 	Attention: Robert Bergdolt, Esq.
	 	 
	PECO:	Phillips Edison & Company Ltd.
	 	11501 Northlake Drive
	 	Cincinnati, OH 45249
	 	Attention: Chief Operating Officer
	 	 
	With a copy to:	Phillips Edison & Company Ltd.
	 	222 South Main Street, Suite 1730
	 	Salt Lake City, Utah 84101
	 	Attention: General Counsel

 

    	 	- 19 -	 

     

    

 

		24.	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,
constitutes a waiver of that or any other right, unless otherwise expressly provided in this Agreement.

 

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

 

		26.	Severability.         If
any term, covenant or condition of this Agreement or the application thereof to any Person or circumstance shall, to any extent,
be held to be invalid or unenforceable, then the remainder of this Agreement, or the application of such term, covenant or condition
to persons or circumstances other than those as to which it is held to be invalid or unenforceable, shall not be affected, and
each term, covenants or condition of this Agreement shall be valid and shall be enforced to the fullest extent permitted by law.

 

		27.	Governing Law.          This
Agreement shall 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 is to be maintained in a binding arbitration proceeding before the American Arbitration
Association in Cincinnati, Ohio.

 

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

 

		29.	Audit Right. PECO will 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, REIT has the right to conduct an audit of
PECO’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 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 PECO will be responsible for the reasonable expenses of such Fee Audit.

 

Signatures on next page.

 

    	 	- 20 -	 

     

    

 

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

 

OWNER:

 

PHILLIPS EDISON GROCERY CENTER REIT III, INC.

a Maryland corporation

 

	By:	/s/ Jeffrey S. Edison	 
	 	  Jeffrey S. Edison	 
	 	  Chief Executive Officer	 

 

PHILLIPS EDISON GROCERY CENTER OP III L.P.

a Delaware limited partnership

 

	 	By: Phillips Edison Grocery Center REIT III, Inc.
	 	Its: General Partner
	 	 	 	 
	 	By:	/s/ Jeffrey S. Edison	 
	 	 	  Jeffrey S. Edison	 
	 	 	  Chief Executive Officer	 

 

PECO:

 

PHILLIPS EDISON & COMPANY LTD.,

a Delaware limited liability company

 

	By:	/s/ Robert F. Myers	 
	 	Robert F. Myers, Chief Operating Officer	 

 

     

     

    

 

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:

 

		þ	Property Management Services as specified in this Agreement
with:

 

	 	______	No changes
	 	 	 
	 	______	Changes as follows:  __________________________________________________________________
	 	 	 
	 	 	 
	 	 	 

 

Property Management Fees:

 

		x	Property Management Fee: 4.0% of Gross Receipts, as specified in Section 9.1; but in no event will
the management fee be less than $3,000.00 per month.

 

		x	Additional Property Management Fees (in addition to the foregoing):

 

 ̈
As to any sale(s) of land associated with the Property (but not the entire Property), a sales commission of six percent (6%) of
the gross sale price, payable out of the closing proceeds, which may be increased by the lesser of (i) 150% of the sales commission,
or (ii) the third party broker fee directly related to such sale;

 

 ̈
If the Property is sold during the term of this agreement, a sales commission of three percent (3%) of the gross sales price shall
be paid from the sale proceeds which may be increased by the lesser of (i) 150% of the sales commission, or (ii) the third party
broker fee directly related to such sale;

 

     

     

    

 

 ̈
As to real estate tax appeals, 40% of any Property tax savings and interest received as a result of assessment reductions on any
property, for the period that includes all open assessment years. Property tax savings shall be equal to (a) the difference between
(i) the original property tax assessment and (ii) the final property tax settlement for the open tax years, which settlement is
less than the original property tax assessment, multiplied by (b) appropriate tax rates, multipliers or equalizations;

 

 ̈
As to economic development incentives, 40% of any tax credit or savings received from the federal, state or local governing authority
or utility provider, or 5% of any incentive grant or similar award (but not to exceed $100,000) awarded by a state or local governing
authority or a utility provider that is directly related to operation of the Property in such community.

 

			 ̈ As to lease assignments, 40%
of the fees collected for lease assignments and similar agreements;

 

 ̈
As to short-term leases, periodic tenancy agreements, licenses agreements and similar instruments originated by PECO, 40% of the
total gross rent under the agreement;

 

 ̈
PECO shall be reimbursed for out-of-pocket expenses incurred with third parties engaged by PECO for the benefit of Owner.

 

     

     

    

 

		þ	Leasing Agreement duties as specified in Section 6 of the Agreement except as specified below:

 

	 	______	No changes
	 	 	 
	 	______	Changes as follows:  __________________________________________________________________
	 	 	 
	 	 	 
	 	 	 

 

		x	Leasing Agreement Fees:

 

		 ̈	New Lease Commission Percentage: Six percent (6.0%) of the gross amount of all base rent under the first five (5) years of
the primary term of said leases, plus four percent (4.0%) of the gross amount of all base rent under the next five (5) years of
the primary term, plus three percent (3.0%) of the gross amount of all base rent under any additional years of the primary term,
payable one-half upon the full execution of the lease and one-half upon tenant opening for business.

 

		 ̈	Notwithstanding the foregoing, for any Major Lease, the leasing commission shall calculated as set forth above, provided that
it shall not be less than Three Dollars ($3.00) per square foot of leasable area.

 

		 ̈	Renewals: For any renewal or extension of a lease (including the exercise of an existing lease option), PECO shall be
paid: three percent (3.0%) of the gross amount of all base rent under the primary term of said lease, payable upon execution of
such renewal or extension

 

		 ̈	Expansions:  For each lease amendment or modification
in which the tenant expands its premises, Owner will pay PECO a leasing commission of six percent (6.0%) of the gross amount of
the base rent represented by the net new space under the balance of the then current term of the lease, plus six percent (6.0%)
of the gross amount of all base rent represented by the net new space under any additional years of the primary term, payable
one-half upon execution of the amendment or modification document and one-half upon the tenant opening for business from the expansion
space.

 

		 ̈	Co-Brokers:   As leasing agent for the Properties,
PECO may cooperate with independent real estate brokers or agents. If PECO hires a co-broker in order to assist PECO in securing
a tenant or if an opportunity is brought to PECO by an independent broker, the applicable leasing commission payable to PECO by
Owner shall be increased by the lesser of (i) the amount of the fee owed to the co-broker or (ii) an amount equal to 50% of the
applicable leasing commission payable to PECO by Owner as set forth above. PECO shall be responsible for payment of the co-broker
fee from the applicable leasing commission paid to PECO by Owner.

 

     

     

    

 

		 ̈	Payment terms (if other than specified above): ____________________

 

		þ	Construction Management Services as specified in Section 7 of the Agreement except as specified below. In particular, the construction
management will include the following (add attachments as necessary):

 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 

 

		x	Construction Management Fees:

 

			 ̈ As to Construction Management, (A) for ground-up construction
and redevelopment projects, a fee of 5% of the total project hard costs plus architectural and engineering costs payable at final
completion of the project; and (B) for tenant buildouts and tenant improvement allowances, 5% of the total project cost payable
upon completion of the project and tenant opening for business; and (C) 5% of the total cost of all other Construction Management
Services, including, but not limited to, services related to the investigation and remediation of environmental conditions at the
Properties.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00271-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00271-of-00352.parquet"}]]