Document:

EX-10.1 ESCROW AGREEMENT

EXHIBIT 10.1

			
	 	 	 
	
	 	ESCROW AGREEMENT

     THIS ESCROW AGREEMENT (the “Agreement”) is made and entered into as of the
9th day of July, 2009, by and among TNP Strategic Retail Trust, Inc., a Maryland
corporation (the “Company”), TNP Securities, LLC, a Delaware limited liability company
(the “Dealer Manager”), and CommerceWest Bank, N.A., as escrow agent (the “Escrow
Agent”).

RECITALS

     WHEREAS, the Company proposes to offer for sale (the “Offering”), on a continuing
basis, up to $1,100,000,000 shares of the Company’s common stock, par value $0.01 per share (the
“Shares”), pursuant to the terms of the prospectus (the “Prospectus”) contained in
the Company’s Registration Statement on Form S-ll, filed with the Securities and Exchange
Commission under the Securities Act of 1933, as amended, a copy of which is attached as
Exhibit E hereto;

     WHEREAS, the Dealer Manager, a registered broker-dealer and member of the Financial Industry
Regulatory Authority Inc. (“FINRA”), has agreed to serve as the dealer manager for the
Offering and will offer the Shares through other registered broker-dealers that are members of
FINRA (the “Dealers”);

     WHEREAS, it is anticipated that investors subscribing to purchase Shares
(“Subscribers”) will provide the Dealer Manager with subscription payments for such Shares
(“Subscription Payments”), which subscriptions will be contingent upon (i) their
respective acceptances by the Company and (ii) the Company’s acceptance of subscriptions
aggregating at least $2,000,000 in subscription proceeds from investors who are not directors,
officers or affiliates of the Company (the “Minimum
Subscription”);

     WHEREAS, the Company and the Dealer Manager desire to deposit Subscription Payments
contributed by Subscribers with the Escrow Agent, to be held for the benefit of the Subscribers
and the Company until such time as subscriptions for the Minimum Subscription have been deposited
into escrow or otherwise in accordance with the terms of this Agreement;

     WHEREAS, the Escrow Agent has agreed to (i) receive and hold in escrow all Subscription
Payments until the earlier of (A) such time as subscriptions for the Minimum Subscription have
been received and accepted by the Company or (B) the close of business on the date exactly one (1)
year after the original effective date of the Prospectus (the Company shall provide written notice
of such date to the Escrow Agent) (the “Minimum Subscription Termination Date”), and (ii)
to hold and distribute such Subscription Payments in accordance with the terms and conditions
herein set forth; and

     WHEREAS, the Escrow Agent is willing to accept appointment as the Company’s escrow agent for
only the expressed duties, terms and conditions outlined herein.

     NOW, THEREFORE, in consideration of the foregoing and the agreements set forth herein, the
parties hereto, intending to be legally bound, hereby agree as follows:

			
	 	 	 
	ES-003(07/09)
	 	Page 1 of 12

 

 

			
	
	 	ESCROW AGREEMENT

1. Appointment of Escrow Agent. The Company and the Dealer Manager hereby appoint
the Escrow Agent to serve as escrow agent, and the Escrow Agent hereby accepts such
appointment, each in accordance with the terms of this Agreement. The Company and the
Dealer Manager hereby acknowledge that the status of the Escrow Agent is that of agent only for
the limited purposes set forth herein, and hereby agree that they will not represent that the
Escrow Agent has investigated the desirability or advisability of investment in the Shares or has
approved, endorsed or passed upon the merits of the investment therein. The Company and the
Dealer Manager further agree that the name of the Escrow Agent shall not be used in any manner
in connection with the offer or sale of the Shares other than to state that the Escrow Agent has
agreed to serve as escrow agent for the limited purposes set forth herein.

2. Proceeds.

     (i) Until such time as the Company has received subscriptions for Shares resulting in total
subscription proceeds equal to or greater than the Minimum Subscription, Subscribers will be
instructed by the Dealer Manager or the Dealers to remit Subscription Payments to the Dealer
Manager or the Dealers in the form of checks, drafts, or money orders (“Payment
Instruments”) payable to the order of “CommerceWest Bank, N.A., as escrow agent for TNP
Strategic Retail Trust, Inc.,” or a recognizable contraction or abbreviation thereof. By noon of
the next business day after receipt of any Payment Instrument, the Dealer Manager or the Dealers
shall remit such Payment Instrument to the Escrow Agent. Any Payment Instruments made payable to a
party other than the Escrow Agent (or after the Minimum Subscription is received, made payable to
a party other than the party designated by the Dealer Manager) shall be returned to the Dealer
Manager or Dealer who submitted such Payment Instruction. Subscribers may also remit subscription
proceeds directly to the Escrow Account (as defined below) using the wire instructions provided by
the Escrow Agent.

     (ii) All Payment Instruments delivered to the Escrow Agent by the Dealer Manager pursuant
hereto shall be deposited within one (1) business day of receipt thereof by the Escrow Agent in a
separate deposit account designated as the “TNP Strategic Retail Trust Sub. Esc.” or such similar
designation as the parties may agree (the “Escrow
Account”). All Payment Instruments and
wire transfers so deposited shall be considered the property of the Subscribers and shall be held
for the benefit of such Subscribers and shall not be (a) commingled with the monies or become an
asset of the Company, or (b) subject to any liens or charges by the Company or the Escrow Agent,
or judgments or creditors’ claims against the Company, until released to the Company as
hereinafter provided.

     (iii) In the event that any Payment Instruments deposited in the Escrow Account prove
uncollectible after the funds represented thereby have been released by the Escrow Agent to the
Company, then the Dealer Manager or the Company shall promptly reimburse the Escrow Agent for any
and all costs incurred in connection therewith, upon request, and the Escrow Agent shall deliver
the uncollectible Payment Instrument to the Company. If any Subscriber exercises any right
provided by law to rescind his or her subscription, the Escrow Agent shall, upon notice from the
Company or the Dealer Manager, return to such Subscriber all Subscription Payments pertaining to
such subscription or the Payment Instrument delivered to the Escrow Agent with respect to any
Subscription Payment paid by such Subscriber if such Payment Instrument has not

			
	 	 	 
	ES-003 (07/09)
	 	Page 2 of 12

 

 

			
	
	 	ESCROW AGREEMENT

been processed for collection prior to such time, together with any earnings thereon during the
period that such Subscription Payments were held by the Escrow Agent under this Agreement,

3. Subscriber Identity. With each receipt of a Payment Instrument by the Escrow Agent,
the Dealer Manager shall furnish to the Escrow Agent (i) the accepted Subscriber’s name,
address, social security number or tax identification number, (ii) the number of Shares purchased
by such Subscriber and (iii) the Subscription Payment remitted. The information comprising the
identity of Subscribers shall be provided to the Escrow Agent in the format set forth on
Exhibit D to this Agreement (the “List of
Investors”). The Escrow Agent will not use the
information
provided to it by the Company for any purpose other than to fulfill its obligations as the Escrow
Agent pursuant to this Agreement. The Escrow Agent agrees to treat all Subscriber information
as confidential.

4. Disbursement of Proceeds.

     (i) On a weekly basis (or more frequently, if requested by the Company), and at the end of
the third (3rd) business day following the Minimum Subscription Termination Date, the
Escrow Agent shall notify the Company of the amount of Subscription Payments the Escrow Agent has
received as of such date (the “Collected Funds”). If at any time prior to the Minimum
Subscription Termination Date the Collected Funds ( from all sources but exclusive of any
Subscription Payments received from entities which the Company has notified the Escrow Agent are
affiliated with the Company) are equal to or greater than the Minimum Subscription, the Escrow
Agent shall promptly deliver a written notice to the Company and the Dealer Manager stating that
the Collected Funds are equal to or greater than the Minimum Subscription (the “Minimum
Subscription Notice”). After receipt of the Minimum Subscription Notice, the Company and the
Dealer Manager shall deliver to the Escrow Agent a written instruction that provides for the
Company’s acceptance of the Minimum Subscription and the delivery of all Collected Funds in the
Escrow Account to the Company (the “Disbursement Instruction”). The Escrow Agent shall
deliver all Collected Funds in the Escrow Account and all earnings thereon to the Company in the
manner set forth in the Disbursement Instruction. Following such disbursement, the Escrow Account
shall terminate and thereafter the Escrow Agent shall forward directly to the Company, upon
receipt, any Payment Instruments or wire transfers received from Subscribers.

     (ii) If on the Minimum Subscription Termination Date the Collected Funds are not greater than
or equal to the Minimum Subscription, the Escrow Agent shall (a) promptly notify the Company and
the Dealer Manager immediately following the Minimum Subscription Termination Date and (b) within
a reasonable time following the Minimum Subscription Termination Date, but in no event more than
thirty (30) days after the Minimum Subscription Termination Date, refund to each Subscriber (x) by
check and by first-class mail, the amount of the Subscription Payment paid by such Subscriber
(together with any interest or income earned thereon) or (y) the Payment Instrument delivered to
the Escrow Agent with respect to any Subscription Payment paid by such Subscriber if such Payment
Instrument has not been processed for collection prior to such time.

     (iii) No later than five (5) business days after receipt by the Escrow Agent of notice from
the Company or Dealer Manager that the Company intends to reject an investor’s subscription, the
Escrow Agent shall (a) pay, by check and by first-class mail, the amount of the

			
	 	 	 
	ES-003 (07/09)
	 	Page 3 of l2

 

 

			
	
	 	ESCROW AGREEMENT

Subscription Payment paid by such Subscriber (together with any interest or income earned
thereon), or (b) deliver the Payment Instrument delivered to the Escrow Agent with respect to any
Subscription Payment paid by such Subscriber if such Payment Instrument has not been processed for
collection prior to such time.

5. Duty and Liability of the Escrow Agent,

     (i) The duties, responsibilities and obligations of Escrow Agent are purely ministerial in
nature and shall be limited to those expressly set forth herein and no duties, responsibilities,
covenants or obligations, fiduciary or otherwise, shall be inferred or implied, against the Escrow
Agent by reason of this Agreement. The Escrow Agent shall not be subject to, nor required to
comply with, any other agreement between or among the Company or to which the Company is a party,
even though reference thereto may be made herein, or to comply with any direction or instruction
(other than those contained herein or delivered in accordance with this Agreement) from the
Company or the Dealer Manager. The Escrow Agent shall be under no duty to determine whether the
Company or the Dealer Manager is complying with requirements of this Agreement or the Prospectus
in tendering to the Escrow Agent the Subscription Payments. The Escrow Agent shall have the right
to perform any of its duties hereunder through its agents, attorneys, custodians or nominees. The
Escrow Agent may conclusively rely upon and shall be protected in acting upon any statement,
certificate, notice, request, consent, order or other document reasonably believed by it to be
genuine and to have been signed or presented by the proper party or parties. The Escrow Agent
shall have no duty or liability to verify any such statement, certificate, notice, request,
consent, order or other document, and its sole responsibility shall be to act only as expressly
set forth in this Agreement. The Escrow Agent shall be under no obligation to institute or defend
any action, suit or proceeding in connection with this Agreement unless first indemnified to its
satisfaction. The Escrow Agent may consult and hire counsel in respect of any question arising
under this Agreement, and the Escrow Agent shall not be liable for any action taken or omitted in
good faith upon advice of such counsel. The expenses associated with such retention of counsel
shall be borne by the Company and Dealer Manager, jointly and severally.

     (ii) In no event shall the Escrow Agent be liable, directly or indirectly, for any (a)
damages, losses or expenses arising out of the services provided by the Escrow Agent hereunder,
other then damages, losses or expenses which have been finally adjudicated to have directly
resulted from the Escrow Agent’s gross negligence or willful misconduct, or (b) special, indirect
or consequential losses or damages of any kind whatsoever (including without limitation lost
profits), even if the Escrow Agent has been advised of the possibility of such losses or damages
and regardless of the form of action. The parties agree that the Escrow Agent has no role in the
preparation of the documents used in the Offering (the
“Offering Documents”), has not
reviewed any such documents and makes no representations or warranties with respect to the
information contained therein or omitted therefrom. The Escrow Agent agrees that it may be named
in the Prospectus and other Offering Documents, to the extent necessary to describe this Agreement
and the duties of the Escrow Agent herein, and for no other purpose. The Escrow Agent shall have
no obligation, duty or liability with respect to compliance with any federal or state securities,
disclosure or tax laws concerning the Offering Documents or the issuance, offering or sale of the
Shares. The Escrow Agent shall have no duty or obligation to monitor the application

			
	 	 	 
	ES-003 (07/09)
	 	Page 4 of 12

 

 

			
	
	 	ESCROW AGREEMENT

and use of Collected Funds once transferred to the Company, that being the sole obligation and
responsibility of the Company.

6. Escrow Agent Fee. The Escrow Agent shall be entitled to compensation for its services,
as stated in the fee schedule attached hereto as Exhibit A, which compensation shall be
paid by
the Company. Subject to the provisions of Section 10 hereof, the fee agreed upon for the
services rendered hereunder in Exhibit A is intended as full compensation for the Escrow
Agent’s services as contemplated by this Agreement. Any fee, reimbursement for costs and
expenses, indemnification for damages incurred by the Escrow Agent or other monies of any sort
may be paid out of or chargeable to the income of assets of the Escrow Account if such is not
paid by the Company or Dealer manager within thirty (30) days of demand by Escrow Agent.

7. Investment of Subscription Payments.

     (i) The Escrow Agent shall invest and reinvest all Collected Funds in the Money Market
Account, or a successor or similar fund or account offered by the Escrow Agent (each, a
“Permitted Investment”) as set forth in Exhibit C hereto, or as set forth in any
subsequent written instruction.

     (ii) Any interest received by the Escrow Agent with respect to the Collected Funds, including
reinvested interest, shall become part of the proceeds of the Escrow Account, and shall be
disbursed to the Company in accordance with Section 4 hereof in the event that the Collected Funds
are greater than or equal to the Minimum Subscription prior to the Minimum Subscription
Termination Date. The Escrow Agent shall have no responsibility or liability for any loss which
may result from any investment or sale of investment made pursuant to this Agreement unless such
loss is the result of willful misconduct or gross negligence of the Escrow Agent.

     (iii) The parties recognize and agree that the Escrow Agent will not provide supervision,
recommendations or advice relating to either the investment of moneys held in the Escrow Account.

     (iv) The Escrow Agent shall send statements to the Company on a monthly basis reflecting
activity in the Escrow Account for the preceding month, provided that no such statement need be
rendered for the Escrow Account if no activity occurred for such month.

     (v) The Company and the Dealer Manager acknowledge and agree that the delivery of the
escrowed property is subject to the sale and final settlement of Permitted Investments. Proceeds
of a sale or settlement of Permitted Investments will be delivered on the business day on which
the appropriate instructions are delivered to the Escrow Agent if received prior to the deadline
for same day sale of such permitted investments. If such instructions are received after the
applicable deadline, proceeds will be delivered on the next succeeding business day.

8. Tax Reporting.

     (i) As of each calendar year-end and to the extent required under the provisions of the
Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder (the
“Code”), whether or not such income was disbursed during a such calendar year, the Escrow
Agent shall report to the Internal Revenue Service (the “IRS”) all income earned from the
investment of any sum held in the Escrow Account to the person or entity receiving the interest or
other taxable income.

			
	 	 	 
	ES-003 (07/09)
	 	Page 5 of 12

 

 

			
	
	 	ESCROW AGREEMENT

     (ii) Prior to closing, the Company shall provide the Escrow Agent with certified tax
identification numbers by furnishing appropriate IRS forms W-9 or W-8 and other forms and documents
that the Escrow Agent may reasonably request. The parties hereto understand that if such tax
reporting documentation is not so certified to the Escrow Agent, the Escrow Agent may be required
by the Code to withhold a portion of any interest or other income earned on the Collected Funds.

     (iii) To the extent that the Escrow Agent becomes liable for the payment of any taxes in
respect of income derived from the investment of funds held or payments made hereunder, the Escrow
Agent shall satisfy such liability to the extent possible from the Collected Funds. The Company
and Dealer Manager, jointly and severally, agrees to indemnify and hold the Escrow Agent harmless
from and against any taxes, additions for late payment, interest, penalties and other expenses
that may be assessed against the Escrow Agent on or with respect to any payment or other
activities under this Agreement unless any such tax, addition for late payment, interest,
penalties and other expenses shall arise out of or be caused by the gross negligence or willful
misconduct of the Escrow Agent, The indemnification provided by this Section 8(iii) and the
indemnification provided in Section 10 shall survive the resignation or removal of the Escrow
Agent and the termination of this Agreement.

9. Notices. All notices, requests, demands and other communications under this Agreement
shall be in writing and shall be deemed to have been duly given (a) on the date of service if
served personally on the party to whom notice is to be given, (b) on the day of transmission if
sent by facsimile transmission to the facsimile number given below, and written confirmation of
receipt is obtained promptly after completion of transmission, (c) on the day after delivery to
the United Parcel Service or similar overnight courier or the Express Mail service maintained by
the United States Postal Service and sent via overnight delivery or (d) on the fifth day after
mailing, if mailed to the party to whom notice is to be given, by first class mail, registered or
certified, postage prepaid, and properly addressed, return receipt requested, to the party as
follows:

If to Company:

TNP Strategic Retail Trust, Inc.

1900 Main Street, Suite 700

Irvine, California 92614

Attention: Jack R. Maurer

Fax: 949-252-0212

If to the Dealer Manager:

TNP Securities, LLC

1900 Main Street, Suite 700

Irvine, California 92614

Attention: Jack R. Maurer

Fax: 949-252-0212

			
	 	 	 
	ES-003 (07/09)
	 	Page 6 of 12

 

 

			
	
	 	ESCROW AGREEMENT

If to the Escrow Agent:

CommerceWest Bank, N.A.

2111 Business Center Drive

Irvine, California 92612

Attention: Judith M. Pollock

Fax: 949-251-6958

Wires to the Escrow Agent should be directed to the following:

CommerceWest Bank, N.A.

ABA # 122243334

Account #1218304

Re: TNP Strategic Retail Trust, Inc.

Attention: Judith M. Pollock

Any party hereto may change its address for purposes of this paragraph by giving the other party
written notice of the new address in the manner set forth above.

10. Indemnification of the Escrow Agent. The Company and the Dealer Manager hereby
agree to jointly and severally indemnify and hold the Escrow Agent and its officers, directors,
employees and agents harmless from and against any and all loss, claim, liability, cost, damage
and expense, including, without limitation, reasonable attorney’s fees and expenses, which the
Escrow Agent may suffer or incur by reason of any action, claim or proceeding brought against
the Escrow Agent arising out of or relating in any way to this Agreement or any transaction to
which this Agreement relates, unless such action, claim or proceeding is the result of the willful
misconduct or gross negligence of the Escrow Agent. The provisions of this Section 10 shall
survive the termination of this Agreement and the resignation or removal of the Escrow Agent.

11. Attachment of Escrow Property; Compliance with Legal Orders. In the event that
any property held under escrow hereunder (“Escrow Property”) shall be attached, garnished
or
levied upon by any court order, or the delivery thereof shall be stayed or enjoined by an order of
a court, or any order, judgment or decree shall be made or entered by any court order affecting
the Escrow Property, the Escrow Agent is hereby expressly authorized, in its sole discretion, to
respond as it deems appropriate or to comply with all writs, orders or decrees so entered or
issued, or which it is advised by legal counsel of its own choosing is binding upon it, whether
with or without jurisdiction. In the event that the Escrow Agent obeys or complies with any such
writ, order or decree it shall not be liable to the Company or the Dealer Manager or to any other
person, firm or corporation, should, by reason of such compliance notwithstanding, such writ,
order or decree be subsequently reversed, modified, annulled, set aside or vacated,

12. Successors and Assigns.

     (i) Except as otherwise provided in this Agreement, no party hereto shall assign this
Agreement or any rights or obligations hereunder without the prior written consent of the other
parties hereto and any such attempted assignment without such prior written consent shall be null

			
	 	 	 
	ES-003 (07/09)
	 	Page 7 of 12

 

 

			
	
	 	ESCROW AGREEMENT

and void and of no force and effect. This Agreement shall inure to the benefit of and shall be
binding upon the heirs, executors, administrators, successors and permitted assigns of the
parties hereto,

     (ii) Notwithstanding the above, any corporation or association into which the Escrow Agent
may be converted or merged, or with which it may be consolidated, or to which it may sell or
transfer all or substantially all of its corporate trust business and assets as a whole or
substantially as a whole, or any corporation or association resulting from any such conversion,
sale, merger, consolidation or transfer to which the Escrow Agent is a party, shall be and become
the successor Escrow Agent under this Agreement and shall have and succeed to the rights, powers,
duties, immunities and privileges as its predecessor, without the execution or filing of any
instrument or paper or the performance of any further act.

13. Term. This Agreement shall terminate within thirty (30) days of receipt of written
notice
of termination by the Company and the Dealer Manager to the Escrow Agent In the event of the
release of all Collected Funds and all accrued interest thereon in accordance with Section 4 of
this Agreement, this Agreement shall terminate and the Escrow Agent shall be relieved of all
responsibilities in connection with the Escrow Account, except claims which are occasioned by
its gross negligence or willful misconduct.

14. Governing Law; Jurisdiction. This Agreement shall be construed, performed, and
enforced in accordance with, and governed by, the laws of the State of California, without giving
effect to the principles of conflicts of laws thereof. Each party hereto hereby consents to the
personal jurisdiction and venue of any court of competent jurisdiction in the State of California,
County of Orange.

15. Severability. In the event that any part of this Agreement is declared by any court
or
other judicial or administrative body to be null, void or unenforceable, said provision shall
survive to the extent it is not so declared, and all of the other provisions of this Agreement
shall
remain in full force and effect.

16. Amendments; Waivers. This Agreement may be amended or modified, and any of the
terms, covenants, representations, warranties or conditions hereof may be waived, only by a
written instrument executed by the parties hereto or, in the case of a waiver, by the party waiving
compliance. Any waiver by any party of any condition, or of the breach of any provision, term,
covenant, representation or warranty contained in this Agreement, in any one or more instances,
shall not be deemed to be nor construed as further or continuing waiver of any such condition, or
of the breach of any other provision, term, covenant, representation or warranty of this
Agreement

17. Entire Agreement; Counterparts. This Agreement contains the entire understanding
among the parties hereto with respect to the subject matter of this Agreement and supersedes and
replaces all prior and contemporaneous agreements and understandings, oral or written, with
regard to the subject matter of this Agreement This Agreement, and any amendments hereto,
may be executed by the parties hereto in two or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same instrument.

			
	 	 	 
	ES-003 (07/09)
	 	Page 8 of 12

 

 

			
	
	 	ESCROW AGREEMENT

18. Section Headings. The section headings in this Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Agreement.

19. Disputes.

     (i) In the event of a disagreement among any of the parties to this Agreement, or among them
or any other person resulting in adverse claims and demands being made in connection with or from
any property in the Escrow Account, the Escrow Agent shall be entitled to refuse to comply with
any such claims or demands as long as such disagreement may continue, and in so refusing, shall
make no delivery or other disposition of any property then held by it in the Escrow Account under
this Agreement, and in so doing, the Escrow Agent shall be entitled to continue to refrain from
acting until (a) the right of adverse claimants shall have been finally settled by binding
arbitration or finally adjudicated in a court assuming and having jurisdiction of the property
involved herein or affected hereby or (b) all differences shall have been adjusted by agreement
and the Escrow Agent shall have been notified in writing of such agreement signed by the parties
hereto.

     (ii) In the event of such a dispute, the Escrow Agent shall be entitled, in its discretion
and judgment, to tender into the registry or custody of any court of competent jurisdiction all
money or property in its hands under this Agreement, together with such legal pleadings as the
Escrow Agent deems a ppropriate, and thereupon be discharged from all further duties and
liabilities under this Agreement. In the event of any uncertainty as to its duties hereunder, the
Escrow Agent may refuse to act under the provisions of this Agreement pending order of a court of
competent jurisdiction and the Escrow Agent shall have no liability to the Company, the Dealer
Manager, any Dealer or to any other person as a result of such action. Any such legal action may
be brought in such court as the Escrow Agent shall determine to have jurisdiction thereof. The
filing of any such legal proceedings shall not deprive the Escrow Agent of its compensation earned
under this Agreement.

     (iii) The prevailing party in any court action arising under this Agreement shall be
entitled to its attorney fees and costs.

20. Limited Purpose. The Company and the Dealer Manager hereby acknowledge that
the Escrow Agent is serving as the escrow agent only for the limited purposes herein set forth,
and hereby agree that they will not represent or imply that the Escrow Agent, by serving as the
Escrow Agent hereunder or otherwise, has investigated the desirability or advisability of
investment in the Company or has approved, endorsed or passed upon the merits of the Shares,
nor shall they use its name in any manner whatsoever in connection with the offer or sale of the
Shares other than by acknowledgment that the Escrow Agent has agreed to serve as the Escrow
Agent for the limited purposes set forth herein.

21. Resignation. The Escrow Agent may resign upon thirty (30) days advance written notice
to the Company and the Dealer Manager (a “Resignation Notice”). Such resignation shall
become effective on the date specified in a Resignation Notice, which shall be not earlier than
thirty (30) days after such Resignation Notice has been given. In the event of any such
resignation, a successor escrow agent, which shall be a bank or trust company organized under
the laws of the United States of America, shall be appointed by the mutual agreement of the

			
	 	 	 
	ES-003 (07/09)
	 	Page 9 of 12

 

 

			
	
	 	ESCROW AGREEMENT

Company and the Dealer Manager. Any such successor escrow agent shall deliver to the Company and
the Dealer Manager a written instrument accepting such appointment, and thereupon shall succeed to
all the rights and duties of the Escrow Agent hereunder and shall be entitled to receive the
Escrow Account from the Escrow Agent, The Escrow Agent shall promptly pay the Subscription
Payments in the Escrow Account, including interest thereon, to the successor escrow agent If a
successor escrow agent is not appointed by the Company or the Dealer Manager within the thirty
(30) day period following delivery of a Resignation Notice by the Escrow Agent, the Escrow Agent
may petition any court of competent jurisdiction to name a successor escrow agent. All costs,
expenses and reasonable attorney’s fees the Escrow Agent incurs in connection with such proceeding
shall be paid by the Company.

22. Removal. The Escrow Agent may be jointly removed by the Company and the Dealer
Manager at any time, by written notice executed by both of them (a “Removal Notice”), which
Removal Notice shall become effective on the date specified in such Removal Notice. The
removal of the Escrow Agent shall not deprive the Escrow Agent of its compensation earned
prior to such removal. In the event of any such removal, a successor escrow agent, which shall
be a bank or trust company organized under the laws of the United States of America, shall be
appointed by the mutual agreement of the Company and the Dealer Manager. Any such
successor escrow agent shall deliver to the Company and the Dealer Manager a written
instrument accepting such appointment, and thereupon shall succeed to all the rights and duties
of the Escrow Agent hereunder and shall be entitled to receive the Escrow Account from the
Escrow Agent. The Escrow Agent shall promptly pay the Subscription Payments in the Escrow
Account, including interest thereon, to the successor escrow agent. If a successor escrow agent
is not appointed by the Company or the Dealer Manager within the thirty (30) day period
following delivery of a Removal Notice, the Escrow Agent may petition any court of competent
jurisdiction to name a successor escrow agent. All costs, expenses and reasonable attorneys fees
the Escrow Agent incurs in connection with such proceeding shall be paid by the Company.

23. Maintenance of Records. The Escrow Agent shall maintain accurate records of all
transactions hereunder. Promptly after the termination of this Agreement, and as may from time
to time be reasonably requested by the Company before such termination, the Escrow Agent
shall provide the Company with a copy of such records, certified by the Escrow Agent to be a
complete and accurate account of all transactions hereunder. The authorized representatives of
the Company and the Dealer Manager shall also have access to the Escrow Agent’s books and
records to the extent relating to its duties hereunder, during normal business hours upon
reasonable notice to the Escrow Agent, and at the requesting party’s expense.

24. Force Majeure. No party to this Agreement shall be liable to any other party for losses
arising out of, or the inability to perform its obligations under the terms of this Agreement, due
to acts of God, which shall include, but shall not be limited to, fire, floods, strikes, mechanical
failure, war, riot, nuclear accident, earthquake, terrorist attack, computer piracy,
cyber-terrorism
or other acts beyond the control of the parties hereto.

25. Representatives. The applicable persons designated on Exhibit B hereto have
been duly appointed to act as the representatives of the Company or Dealer Manager, as applicable,

			
	 	 	 
	ES-003 (07/09)
	 	Page 10 of 12

 

 

			
	
	 	ESCROW AGREEMENT

hereunder and have full power and authority to execute and deliver any written directions, to
amend, modify or waive any provision of this Agreement and to take any and all other actions on
behalf of the Company or Dealer Manager, as applicable, under this Agreement, all without further
consent or direction from, or notice to, the Company or Dealer Manager, as applicable, or any
other party.

26. USA Patriot Act. The Company and Dealer Manager acknowledge that a portion of the
identifying information set forth on Exhibit B is being requested by the Escrow Agent in
connection with the USA Patriot Act, Pub.L. 107-56 (the
“Patriot Act”), and the Company and
Dealer Manager agree to provide any additional information requested by the Escrow Agent in
connection with the Patriot Act or any similar legislation or regulation to which Escrow Agent is
subject, in a timely manner. The Company and the Dealer Manager each represents that its
respective identifying information set forth on Exhibit B, including without limitation,
its
Taxpayer Identification Number assigned by the Internal Revenue Service or any other taxing
authority, is true and complete on the date hereof and will be true and complete at the time of any
disbursement of the Collected Funds.

27. Illegal Activities. The Escrow Agent shall have the right in its sole discretion to
not
accept appointment as escrow agent and reject funds and collateral from any party in the event
that Escrow Agent has reason to believe that such funds or collateral violate applicable banking
practices or applicable laws or regulations, including but not limited to the Patriot Act. In the
event of suspicious or illegal activity and pursuant to all applicable laws, regulations and
practices, the other parties to this Agreement will assist Escrow Agent and comply with any
reviews, investigations and examinations directed against the deposited funds.

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the
date first set forth above.

	 	 	 	 	 
	 	

TNP STRATEGIC RETAIL TRUST, INC., a Maryland Corporation

 	 
	 	By:  	
/s/  Wendy J. Worcester
 	 
	 	Name:  	Wendy J. Worcester  	 
	 	Title:  	Chief Financial Officer, Treasurer and Secretary 	 
	 
	 	TNP SECURITIES, LLC, a Delaware limited liability

company, as Dealer Manager

 	 
	 	By:  	/s/ Wendy J. Worcester
 	 
	 	Name:  	Wendy J. Worcester 	 
	 	Title:  	Co-Chief Compliance Officer 	 
	 

			
	 	 	 
	ES-003 (07/09)
	 	Page 11 of 12

 

 

			
	
	 	ESCROW AGREEMENT

	 	 	 	 	 
	 	COMMERCEWEST BANK, N. A.,

as Escrow Agent

 	 
	 	By:  	/s/ Marshell Montgomery
 	 
	 	Name:  	Marshell Montgomery    	 
	 	Title:  	Executive Vice President & Chief
Administrative Officer 	 
	 

			
	 	 	 
	ES-003 (07/09)
	 	Page 12 of 12

 

 

EXHIBIT A

Fee Schedule — CommerceWest Bank

ANNUAL FEE — $2,500.00

 

 

EXHIBIT B

	 	 	 
	Company 

Representative:

	 	The following individual(s) is hereby appointed as representative of the
Company under the Agreement:

	 	 	 	 	 	 	 	 	 
	Name:

	 	 	 	 	 	Specimen Signature:	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name:

	 	 	 	 	 	Specimen Signature:	 	 
	 

	 	 
	 	 	 	 	 	 

	 	 	 
	Dealer Manager

Representative:

	 	The following individual(s) is hereby appointed as representative of the
Dealer Manager under the Agreement:

	 	 	 	 	 	 	 	 	 
	Name:

	 	 	 	 	 	Specimen Signature:	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name:

	 	 	 	 	 	Specimen Signature:	 	 
	 

	 	 
	 	 	 	 	 	 

 

 

			
	
	 	ESCROW AGREEMENT

EXHIBIT C

Agency and Custody Account Direction

For Cash Balances

CommerceWest Bank, N.A.

ABA #122243334

Money Market Account # 1218304

Titled: TNP Strategic Retail Trust, Inc.

Attention: Judith M. Pollock

 

 

			
	
	 	ESCROW AGREEMENT

EXHIBIT D

List of Investors

Pursuant to the Agreement dated ___by and
between TNP Strategic Retail Trust, Inc., a Maryland corporation, (the “Company”), TNP
Securities, LLC, a Delaware limited liability company, (the “Dealer Manager”) and CommerceWest
Bank, National Association, as escrow agent (the “Escrow Agent”), the Company and the Dealer
Manager hereby certify that the following Subscribers have paid money for the purchase of
Shares and the money has been deposited with the Escrow Agent:

	1.	 	Name of Subscriber

Address

Tax Identification Number

Amount of Securities subscribed for

Amount of money paid and deposited with Escrow Agent
	 
	2.	 	Name of Subscriber

Address

Tax Identification Number

Amount of Securities subscribed for

Amount of money paid and deposited with Escrow Agent

	 	 	 
	Company:
	 	 
	 

	 	 
	By:
	 	 
	 

	 	 
	Its:
	 	 
	 

	 	 
	Date:
	 	 
	 

	 	 
	 
	 	 
	Dealer Manager:
	 	 
	 

	 	 
	By:
	 	 
	 

	 	 
	Its:
	 	 
	 

	 	 
	Date:EX-10.2 ADVISORY AGREEMENT

EXHIBIT 10.2

ADVISORY AGREEMENT

AMONG

TNP STRATEGIC RETAIL TRUST, INC.,

TNP STRATEGIC RETAIL OPERATING PARTNERSHIP, LP,

AND

TNP STRATEGIC RETAIL ADVISOR, LLC

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	1.

	 	Definitions
	 	 	1	 
	 
	 	 	 	 	 	 
	2.

	 	Appointment
	 	 	8	 
	 
	 	 	 	 	 	 
	3.

	 	Duties of the Advisor
	 	 	8	 
	 
	 	 	 	 	 	 
	4.

	 	Authority of Advisor
	 	 	10	 
	 
	 	 	 	 	 	 
	5.

	 	Bank Accounts
	 	 	10	 
	 
	 	 	 	 	 	 
	6.

	 	Records; Access
	 	 	11	 
	 
	 	 	 	 	 	 
	7.

	 	Limitations on Activities
	 	 	11	 
	 
	 	 	 	 	 	 
	8.

	 	Relationship with Director
	 	 	11	 
	 
	 	 	 	 	 	 
	9.

	 	Fees
	 	 	11	 
	 
	 	 	 	 	 	 
	10.

	 	Expenses
	 	 	13	 
	 
	 	 	 	 	 	 
	11.

	 	Other Services
	 	 	15	 
	 
	 	 	 	 	 	 
	12.

	 	Reimbursement to the Advisor
	 	 	15	 
	 
	 	 	 	 	 	 
	13.

	 	Business Combination
	 	 	15	 
	 
	 	 	 	 	 	 
	14.

	 	Investment Opportunities
	 	 	16	 
	 
	 	 	 	 	 	 
	15.

	 	The TNP Name
	 	 	16	 
	 
	 	 	 	 	 	 
	16.

	 	Other Activities of the Advisor
	 	 	16	 
	 
	 	 	 	 	 	 
	17.

	 	Term of Agreement
	 	 	17	 
	 
	 	 	 	 	 	 
	18.

	 	Termination by the Parties
	 	 	17	 
	 
	 	 	 	 	 	 
	19.

	 	Assignment to an Affiliate
	 	 	17	 
	 
	 	 	 	 	 	 
	20.

	 	Payments to and duties of Advisor Upon Termination
	 	 	17	 
	 
	 	 	 	 	 	 
	21.

	 	Indemnification by the Company and the Operating Partnership
	 	 	18	 
	 
	 	 	 	 	 	 
	22.

	 	Indemnification by Advisor
	 	 	19	 
	 
	 	 	 	 	 	 
	23.

	 	Notices
	 	 	19	 
	 
	 	 	 	 	 	 
	24.

	 	Modification
	 	 	20	 
	 
	 	 	 	 	 	 
	25.

	 	Severability
	 	 	20	 
	 
	 	 	 	 	 	 
	26.

	 	Construction
	 	 	20	 

 

 

	 	 	 	 	 	 	 
	27.

	 	Entire Agreement
	 	 	20	 
	 
	 	 	 	 	 	 
	28.

	 	Indulgences, Not Waivers
	 	 	21	 
	 
	 	 	 	 	 	 
	29.

	 	Gender
	 	 	21	 
	 
	 	 	 	 	 	 
	30.

	 	Titles Not to Affect Interpretation
	 	 	21	 
	 
	 	 	 	 	 	 
	31.

	 	Execution in Counterparts
	 	 	21	 

- 3 -

 

ADVISORY AGREEMENT

     THIS
ADVISORY AGREEMENT (this “Agreement”), dated as of
the 10th day of July, 2009,
and effective as of the date that that the Registration Statement (as defined below) is declared
effective by the Securities and Exchange Commission (the “Effective Date”), is entered into
by and among TNP Strategic Retail Trust, Inc., a Maryland corporation (the “Company”), TNP
Strategic Retail Operating Partnership, LP, a Delaware limited partnership (the “Operating
Partnership”), and TNP Strategic Retail Advisor, LLC, a Delaware limited liability company (the
“Advisor”). Capitalized terms used herein shall have the meanings ascribed to them in
Section 1 below.

W I T N E S S E T H

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

     WHEREAS, the Company is the general partner of the Operating Partnership and intends to
conduct all of its business and make all Investments through the Operating Partnership;

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

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

     NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements
contained herein, the parties hereto, intending to be legally bound, hereby agree as follows:

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

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

     Acquisition Fees. Any and all fees and commissions, exclusive of Acquisition
Expenses, paid by any Person to any other Person (including any fees or commissions paid by or to
any Affiliate of the Company, the Operating Partnership or the Advisor) in connection with the
purchase, development or construction of any Real Estate Asset or other Investment,

 

 

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

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

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

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

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

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

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

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

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

- 2 -

 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

- 3 -

 

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

     Indemnitee. The terms “Indemnitee” and “Indemnitees” shall have the meaning set forth
in Section 21.

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

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

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

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

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

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

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

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

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

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

- 4 -

 

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

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

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

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

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

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

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

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

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

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

- 5 -

 

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

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

     Registration Statement. Registration Statement shall mean the Company’s registration
statement on Form S-11 (Registration Number
333-154975), as amended from time to time, to offer and sell
to the public on a continuous basis up to 110,526,316 Shares originally filed with the Securities
and Exchange Commission on November 4, 2008.

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

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

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

- 6 -

 

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

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

     Special Committee. The term “Special Committee” shall have the meaning as provided in
Section 13(a).

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

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

     Stockholders. The registered holders of the Shares.

     Termination Date. The date of termination of this Agreement.

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

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

- 7 -

 

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

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

     3. DUTIES OF THE ADVISOR. As of the Effective Date, the Advisor undertakes to use its best
efforts to present to the Company and the Operating Partnership potential investment opportunities
and to provide a continuing and suitable investment program consistent with the investment
objectives and policies of the Company as determined and adopted from time to time by the Board.
In performance of this undertaking, subject to the supervision of the Board and consistent with the
provisions of the Articles of Incorporation and Bylaws of the Company and the Operating Partnership
Agreement, the Advisor shall, either directly or by engaging an Affiliate:

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

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

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

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

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

- 8 -

 

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

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

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

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

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

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

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

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

- 9 -

 

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

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

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

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

     4. AUTHORITY OF ADVISOR.

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

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

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

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

          (e) The Board may, at any time upon the giving of notice to the Advisor, modify or revoke the
authority set forth in this Section 4; provided, however, that such modification or revocation
shall be effective upon receipt by the Advisor and shall not be applicable to investment
transactions to which the Advisor has committed the Company or the Operating Partnership prior to
the date of receipt by the Advisor of such notification.

     5. BANK ACCOUNTS. The Advisor may establish and maintain one or more bank accounts in its own
name for the account of the Company or the Operating Partnership or in the name of the Company and
the Operating Partnership and may collect and deposit into any such account or accounts, and
disburse from any such account or accounts, any money on behalf of the Company or the Operating
Partnership, under such terms and conditions as the Board may approve, provided that no funds shall
be commingled with the funds of the Advisor; and the

- 10 -

 

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

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

     7. LIMITATIONS ON ACTIVITIES. Anything else in this Agreement to the contrary
notwithstanding, the Advisor shall refrain from taking any action which, in its sole judgment made
in good faith, would (a) adversely affect the status of the Company as a REIT, (b) subject the
Company to regulation under the Investment Company Act of 1940, as amended, or (c) violate any law,
rule, regulation or statement of policy of any governmental body or agency having jurisdiction over
the Company or its Shares, or otherwise not be permitted by the Articles of Incorporation or Bylaws
of the Company, except if such action shall be ordered by the Board, in which case the Advisor
shall notify promptly the Board of the Advisor’s judgment of the potential impact of such action
and shall refrain from taking such action until it receives further clarification or instructions
from the Board. In such event, the Advisor shall have no liability for acting in accordance with
the specific instructions of the Board so given. Notwithstanding the foregoing, the Advisor, its
directors, officers, employees and members, and the partners, directors, officers, members and
stockholders of the Advisor’s Affiliates shall not be liable to the Company or to the Directors or
Stockholders for any act or omission by the Advisor, its directors, officers, employees, or
members, and the partners, directors, officers, members or stockholders of the Advisor’s Affiliates
taken or omitted to be taken in the performance of their duties under this Agreement except as
provided in Section 22 of this Agreement.

     8. RELATIONSHIP WITH DIRECTORS. Subject to Section 7 of this Agreement and to restrictions
advisable with respect to the qualification of the Company as a REIT, directors, officers and
employees of the Advisor or an Affiliate of the Advisor or any corporate parent of an Affiliate,
may serve as a Director and as officers of the Company, except that no director, officer or
employee of the Advisor or its Affiliates who also is a Director or officer of the Company shall
receive any compensation from the Company for serving as a Director or officer other than
reasonable reimbursement for travel and related expenses incurred in attending meetings of the
Board and no such Director shall be deemed an Independent Director for purposes of satisfying the
Director independence requirement set forth in the Articles of Incorporation.

     9. FEES.

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

- 11 -

 

respect to investments in and origination of Real Estate Related Loans, the Company will pay the
Advisor an Origination Fee in lieu of the Acquisition Fee. With respect to the acquisition of Real
Estate Assets through a Joint Venture, the Acquisition Fee payable by the Company to the Advisor
shall equal 2.5% of the Company’s allocable cost of such Real Estate Assets, including Acquisition
Expenses and any debt attributed to such Investments. The Advisor shall submit an invoice to the
Company following the closing or closings of each Investment, accompanied by a computation of the
Acquisition Fee. The Company shall pay the Acquisition Fee promptly following receipt of the
invoice.

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

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

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

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

- 12 -

 

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

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

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

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

     10. EXPENSES.

          (a) In addition to the compensation paid to the Advisor pursuant to Section 9 hereof, the
Company or the Operating Partnership shall pay directly or reimburse the Advisor for all of the
expenses paid or incurred by the Advisor or its Affiliates in connection with the services it
provides to the Company and the Operating Partnership pursuant to this Agreement, including, but
not limited to:

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

- 13 -

 

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

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

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

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

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

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

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

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

               (x) expenses connected with payments of Distributions;

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

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

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

               (xiv) audit, accounting and legal fees.

- 14 -

 

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

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

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

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

     13. BUSINESS COMBINATION.

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

- 15 -

 

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

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

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

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

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

     14. INVESTMENT
OPPORTUNITIES. In the
event that the Advisor identifies an investment opportunity that
meets the Company's investment criteria in an income-producing retail property,
 for which the Company has sufficient uninvested funds, the investment opportunity will first be
offered to the Company.  With respect to potential non-retail property investments, in the event
 that an investment opportunity becomes available that is suitable, under all of the factors
 considered by the Advisor for both the Company and one or more other Sponsor Affiliates and
 for which more than one of these entities has sufficient uninvested funds, then the entity
 that has had the longest time elapse since it was offered an investment opportunity will first
 be offered such opportunity.  Unless the Board of Directors decides not to proceed with an
 investment opportunity presented to it, the investment opportunity will not be presented to
 a Sponsor Affiliate; provided, however, that any such investment opportunity shall not be
 required to be presented to the Company during any period in which the Company does not have
 sufficient available funds, or a reasonable opportunity of obtaining available funds, with which
 to make an investment.  The Company shall not make any Investment unless the Advisor has
 recommended the Investment to the Company.

     15. THE
TNP NAME. The Advisor and its Affiliates have a proprietary interest in the name “TNP.”
The Advisor hereby grants to the Company a non-transferable, non-assignable, non-exclusive royalty-free right
and license to use the name “TNP” during the term of this Agreement.  Accordingly, and in
 recognition of this right, if at any time the Company ceases to retain the Advisor or one of its
 Affiliates to perform advisory services for the Company, the Company will, promptly after
 receipt of written request from the Advisor, cease to conduct business under or use the name
 “TNP” or any derivative thereof and the Company shall change its name and the names
 of any of its subsidiaries to a name that does not contain the name “TNP” or any other word
 or words that might, in the reasonable discretion of the Advisor, be susceptible of indication
 of some form of relationship between the Company and the Advisor or any of its Affiliates.
 At such time, the Company will also make any changes to any trademarks, servicemarks or other
 marks necessary to remove any reference to the word “TNP.”  Consistent with the foregoing,
 it is specifically recognized that the Advisor or one or more of its Affiliates has in the past
 and may in the future organize, sponsor or otherwise permit to exist other investment
 vehicles (including vehicles for investment in real estate loans, real estate-related
 debt securities and other real estate assets) and financial and service organizations having
 “TNP” as a part of their name, all without the need for any consent (and without the
 right to object thereto) by the Company.

     16. OTHER ACTIVITIES OF THE ADVISOR. Nothing herein contained shall prevent the Advisor or
any of its Affiliates from engaging in or earning fees from other activities, including, without
limitation, the rendering of advice to other Persons (including other REITs) and the management of
other programs advised, sponsored or organized by the Advisor or its Affiliates; nor shall this
Agreement limit or restrict the right of any director, officer, member, partner, employee, or
stockholder of the Advisor or its Affiliates to engage in or earn fees from any other business or
to render services of any kind to any other partnership, corporation, firm, individual, trust or
association and earn fees for rendering such services. The Advisor may, with respect to any
investment in which the Company is a participant, also render advice and service to each and every
other participant therein, and earn fees for rendering such advice and service. Specifically, it
is contemplated that the Company may enter into joint ventures or other similar co-investment
arrangements with certain Persons, and pursuant to the agreements governing such joint ventures or
arrangements, the Advisor may be engaged to provide advice and service to such Persons, in which
case the Advisor will earn fees for rendering such advice and service.

- 16 -

 

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

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

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

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

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

     The
provisions of Sections 19 through 31 of this Agreement survive termination of this
Agreement.

     19. ASSIGNMENT TO AN AFFILIATE. This Agreement may be assigned by the Advisor to an Affiliate
with the approval of a majority of the Directors (including a majority of the Independent
Directors). The Advisor may assign any rights to receive fees or other payments under this
Agreement to any Person without obtaining the approval of the Directors. This Agreement shall not
be assigned by the Company or the Operating Partnership without the consent of the Advisor, except
in the case of an assignment by the Company or the Operating Partnership to a corporation, limited
partnership or other organization which is a successor to all of the assets, rights and obligations
of the Company or the Operating Partnership, in which case such successor organization shall be
bound hereunder and by the terms of said assignment in the same manner as the Company and the
Operating Partnership are bound by this Agreement.

     20. PAYMENTS TO AND DUTIES OF ADVISOR UPON TERMINATION.

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

          (b) The Advisor shall promptly upon termination:

               (i) pay over to the Company and the Operating Partnership all money collected and held for the
account of the Company and the Operating Partnership pursuant to this

- 17 -

 

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

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

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

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

     21. INDEMNIFICATION BY THE COMPANY AND THE OPERATING PARTNERSHIP. The Company and the
Operating Partnership shall indemnify and hold harmless the Advisor and its Affiliates, including
their respective directors (the “Indemnitees,” and each an “Indemnitee”), from all
liability, claims, damages or losses arising in the performance of their duties hereunder, and
related expenses, including reasonable attorneys’ fees, to the extent such liability, claims,
damages or losses and related expenses are not fully reimbursed by insurance, and to the extent
that such indemnification would not be inconsistent with the laws of the State of Maryland, the
Articles of Incorporation or the provisions of Section II.G of the NASAA REIT Guidelines.
Notwithstanding the foregoing, the Company and the Operating Partnership shall not provide for
indemnification of an Indemnitee for any loss or liability suffered by such Indemnitee, nor shall
they provide that an Indemnitee be held harmless for any loss or liability suffered by the Company
and the Operating Partnership, unless all of the following conditions are met:

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

          (b) the Indemnitee was acting on behalf of, or performing services for, the Company or the
Operating Partnership;

          (c) such liability or loss was not the result of negligence or misconduct by the Indemnitee;
and

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

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

- 18 -

 

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

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

          (c) a court of competent jurisdiction approves a settlement of the claims against the
Indemnitee and finds that indemnification of the settlement and the related costs should be made,
and the court considering the request for indemnification has been advised of the position of the
Securities and Exchange Commission and of the published position of any state securities regulatory
authority in which securities of the Company or the Operating Partnership were offered or sold as
to indemnification for violation of securities laws.

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

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

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

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

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

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

- 19 -

 

	 	 	 
	To the Directors and to the Company:

	 	TNP Strategic Retail Trust, Inc.
	 

	 	1901 Main Street
	 

	 	Suite 108
	 

	 	Irvine, California 92614
	 

	 	Telephone: (949) 833-8252
	 

	 	Facsimile: (949) 252-0212
	 

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

	 	 
	 
	 	 
	To the Operating Partnership:

	 	TNP Strategic Retail Operating Partnership, LP
	 

	 	1901 Main Street
	 

	 	Suite 108
	 

	 	Irvine, California 92614
	 

	 	Telephone: (949) 833-8252
	 

	 	Facsimile: (949) 252-0212
	 

	 	Attention: Wendy J. Worcester
	 

	 	
	 
	 	 
	To the Advisor:

	 	TNP Strategic Retail Advisor, LLC
	 

	 	1901 Main Street
	 

	 	Suite 108
	 

	 	Irvine, California 92614
	 

	 	Telephone: (949) 833-8252
	 

	 	Facsimile: (949) 252-0212
	 

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

	 	 

     Any party may at any time give notice in writing to the other parties of a change in its
address for the purposes of this Section 23.

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

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

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

     27. ENTIRE AGREEMENT. This Agreement contains the entire agreement and understanding among
the parties hereto with respect to the subject matter hereof, and supersedes all prior and
contemporaneous agreements, understandings, inducements and conditions, express

- 20 -

 

or implied, oral or written, of any nature whatsoever with respect to the subject matter hereof. The express terms
hereof control and supersede any course of performance or usage of the trade inconsistent with any
of the terms hereof. This Agreement may not be modified or amended other than by an agreement in
writing.

     28. INDULGENCES, NOT WAIVERS. Neither the failure nor any delay on the part of a party to
exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver
thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude
any other or further exercise of the same or of any other right, remedy, power or privilege, nor
shall any waiver of any right, remedy, power or privilege with respect to any occurrence be
construed as a waiver of such right, remedy, power or privilege with respect to any other
occurrence. No waiver shall be effective unless it is in writing and is signed by the party
asserted to have granted such waiver.

     29. 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.

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

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

[Remainder of page intentionally left blank]

- 21 -

 

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

	 	 	 	 	 	 	 
	 	 	TNP Strategic Retail Trust, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Wendy J. Worcester	 	 
	 	 	 
	 	 
	 
	 	Name:	 	/s/ Wendy J. Worcester	 	 
	 	 	 
	 	 
	 
	 	Title:	 	Chief Financial Officer, Treasurer and Secretary	 
	 	 	 
	 	 
	 
	 	 	 	 	 	 
	 	 	TNP Strategic Retail Operating Partnership, LP	 	 
	 
	 	 	 	 	 	 
	 
	 	By:	 	TNP Strategic Retail Trust, Inc.,

its General Partner	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	By: /s/ Wendy J. Worcester	 	 
	 

	 	 	 	 
	 	 
	 

	 	 	 	Name: /s/ Wendy J. Worcester	 	 
	 

	 	 	 	 
	 	 
	 

	 	 	 	Title: Chief Financial Officer, Treasurer and Secretary
	 

	 	 	 	 
	 	 
	 
	 	 	 	 	 	 
	 	 	TNP Strategic Retail Advisor, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	Thompson National Properties, LLC,

its sole member	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	By: /s/ Anthony W. Thompson	 	 
	 
	 	 	 	 
	 	 
	 
	 	 	 	Name: Anthony W. Thompson	 	 
	 
	 	 	 	 
	 	 
	 
	 	 	 	Title: Chief Executive Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}]]