Document:

Ex 10.1

 

Settlement
AGREEMENT

 

This AGREEMENT, dated
as of January 22, 2014 (the “Agreement”), is by and among Strategic Realty Trust, Inc., a Maryland corporation
(the “Company”), Glenborough Property Partners, LLC, a Delaware limited liability company (“Glenborough”)
and the persons and entities listed on Schedule A hereto (collectively, the “Coalition”).

 

RECITALS

 

WHEREAS, the Company
has scheduled its 2013 annual meeting of stockholders for February 7, 2014 (as the same may be adjourned or postponed
from time to time, the “2013 Annual Meeting”);

 

WHEREAS, the Company
has filed a definitive Proxy Statement nominating Andrew Batinovich for election to the Company’s board of directors (the
“Board of Directors”) as a Class I director at the 2013 Annual Meeting;

 

WHEREAS, the Coalition
has filed a definitive Proxy Statement (the “Coalition Proxy Statement”) in connection with the 2013 Annual
Meeting stating that the Coalition intends to (i) nominate Todd Spitzer for election to the Board of Directors as a Class
I director at the 2013 Annual Meeting, in place of Mr. Batinovich; and (ii) make a proposal (the “Removal Proposal”)
at the 2013 Annual Meeting to remove each of the other members of the Board of Directors (other than Mr. Spitzer) and replace the
current Board of Directors with the following nominees: Dianne Costa, Jerome Hagley, Michael Karas and Marshall Karr (and direct
Mr. Spitzer to appoint these individuals to the board); and

 

WHEREAS, the Company,
Glenborough and the Coalition (collectively, the “Parties”) wish to avoid the cost, distraction and expense
of a protracted proxy contest, and wish to enter into certain agreements related thereto, upon the terms and conditions set forth
in this Agreement.

 

NOW, THEREFORE, in
consideration of the mutual promises of the Parties contained herein and for other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the Parties hereby agree as follows:

 

1.           Definitions.

 

“2014 Annual
Meeting” means the next annual meeting of Company’s stockholders that is held after the 2013 Annual Meeting.

 

“Affiliate”
has the meaning set forth in Rule 12b-2 promulgated under the 1934 Act.

 

“Associate”
has the meaning set forth in Rule 12b-2 promulgated under the 1934 Act.

 

    	 

    	 

    

 

“Beneficially
own” has the meaning set forth in the regulations included in Rule 13d-3 promulgated under the 1934 Act; provided, however,
that any option, warrant, right, conversion privilege or arrangement to purchase, acquire or vote Company Voting Securities, regardless
of the time period during or the time at which it may be exercised and regardless of the consideration paid, shall be deemed to
give the holder thereof beneficial ownership of the Company Voting Securities to which it relates. Any Company Voting Securities
that are subject to such options, warrants, rights, conversion privileges or other arrangements shall be deemed to be outstanding
for purposes of computing the percentage of outstanding securities owned by such Person but shall not be deemed to be outstanding
for purposes of computing the percentage of outstanding securities owned by any other Person.

 

“Company Voting
Securities” means all classes of capital stock of the Company which are then entitled to vote generally in the election
of directors and any securities exchanged for such classes of capital stock and any securities convertible into or exchangeable
or exercisable for such classes of capital stock. For purposes of determining the amount or percentage of outstanding Company Voting
Securities beneficially owned by a Person, and for purposes of calculating the aggregate voting power relating to such Company
Voting Securities, securities that are deemed to be outstanding shall be included to the extent provided in the definition of “beneficially
own.”

 

“Effective Time”
means the date of this Agreement.

 

“1933 Act”
means the Securities Act of 1933, as amended, and the regulations promulgated under such statute.

 

“1934 Act”
means the Securities Exchange Act of 1934, as amended, and the regulations promulgated under such statute.

 

“Person”
means a natural person or any legal, commercial or governmental entity, including, but not limited to, a corporation, partnership,
joint venture, trust, limited liability company, group acting in concert or any person acting in a representative capacity.

 

“Representatives”
of a party means (i) the officers, directors or partners of such party or (ii) the employees, agents or advisors of such
party acting on behalf of such party.

 

“SEC”
means the Securities and Exchange Commission.

 

“Standstill
Period” means the period commencing on the Effective Date of this Agreement and terminating on the earlier of: (i) June
30, 2016, (ii) upon notice by any member of the Coalition to the Company that it has elected to terminate the Standstill Period
due to a material breach of Sections 2, 3, 5, 6.5, 9, 10 or 12 of this Agreement if such breach has not been, or cannot satisfactorily
be, cured by the 15th day after notice of such breach or (iii) upon notice by the Company to the Coalition that it has elected
to terminate the Standstill Period due to a material breach of Sections 6, 7 or 12 of this Agreement if such breach has not been,
or cannot satisfactorily be, cured by the 15th day after notice of such breach.

 

“Stockholder”
means a holder of the Company’s common stock, par value $0.01 per share.

 

    	 

    	 

    

 

2.           Board
Composition and Related Matters.

 

2.1.          Concurrently
herewith, (a) John B. Maier II shall resign from the Board of Directors, (b) the Company shall name Mr. Maier Chairman
Emeritus of the Company for a period of one year and (c) Anthony Thompson shall resign from the Board of Directors. In exchange
for Mr. Maier’s service as Chairman Emeritus, the Company shall pay $20,000 in October, 2014 to the John B. Maier II Children’s
Irrevocable Trust, with Glenborough or one of its Affiliates remitting $10,000 to the Company (in cash or as an offset of fees
otherwise due) to partially offset this Company expense.

 

2.2.          Concurrently
with the resignation of John B. Maier II from the Board of Directors, the Company shall fill the vacancy created thereby by appointing
Mr. Spitzer to the Board of Directors as a Class II director whose term shall expire at the 2014 Annual Meeting.

 

2.3.          Contemporaneously
with his appointment as a member of the Board of Directors, the Board of Directors shall appoint Mr. Spitzer to serve (a) as
the Chairman of the Board of Directors and (b) as Co-Chair of the Audit Committee of the Board of Directors (the “Audit
Committee”).

 

2.4.          The
Board of Directors shall remain four directors unless approved by (a) unanimous vote of all of the members of the Board of
Directors or (b) Stockholder approved resolution. No new committees of the Board of Directors shall be established unless
approved by unanimous vote of all of the members of the Board.

 

2.5.          The
Parties acknowledge and agree that for so long as Mr. Spitzer shall serve as a member of the Board of Directors, he shall have
all of the same legal rights, duties and obligations as the other directors of the Company in respect of their service as such
under Maryland law. The Company shall provide Mr. Spitzer with the same indemnification agreement that it has provided to the other
existing members of the Board of Directors.

 

2.6.          Concurrently
herewith, the Special Committee of the Board of Directors shall be dissolved.

 

3.           Management
Changes.

 

3.1.          Concurrently
herewith, Mr. Batinovich shall resign as Chief Financial Officer of the Company.

 

3.2.          Immediately
following the resignation of Mr. Batinovich from the position of Chief Financial Officer of the Company, the Board of Directors
shall appoint Terri Garnick to serve as Chief Financial Officer of the Company.

 

4.           Broker-Dealer
Advisory Committee.

 

4.1.          Concurrently
herewith, the Company shall take all necessary and appropriate action and the Board of Directors shall adopt resolutions to create
a Broker Dealer Advisory Committee (the “BDAC”) to consult with the Company.

 

    	 

    	 

    

 

4.2.          The
Company shall invite each of Centaurus Financial Inc., J.P. Turner & Co., LLC, Independent Financial Group, LLC and Berthel
Fisher & Co. to contribute a representative to serve on the BDAC. If any one of the foregoing broker-dealers cannot or will
not contribute a representative to serve on the BDAC, the Company shall invite Newbridge Securities Corp. to contribute a representative
to serve on the BDAC. The BDAC shall have a maximum of four members.

 

4.3.          If
any of the members of the BDAC resign, or are unable or unwilling to serve on the BDAC, as the case may be, the Company shall invite
the broker-dealer represented by such member to contribute a replacement representative to serve on the BDAC.

 

4.4.          Members
of the BDAC shall be unpaid except for reimbursement of their reasonable travel costs in connection with the meetings referenced
in Section 4.5.

 

4.5.          At
least once per quarter, the BDAC shall have the opportunity to meet in person with the Company’s management. At least two
times per year, the BDAC shall have the opportunity to present, in person, concerns or initiatives to the Board of Directors. The
time and place of such meetings shall be determined by the Company after consultation with a representative of the BDAC.

 

5.           Changes
to Bylaws and Articles of Incorporation.

 

5.1.          The
Board of Directors has adopted, and delivered to the Coalition certified copies of, resolutions, which will be effective as of
the Effective Time, that provide for the approval and adoption of the Third Amended and Restated Bylaws of the Company, attached
hereto as Exhibit A.

 

5.2.          The
Board of Directors has adopted, and delivered to the Coalition certified copies of, resolutions, which will be effective as of
the Effective Time, that provide for the Company to opt out of the provisions of Sections 3-804(a), 3-804(b) and 3-805 of the Maryland
General Corporation Law. Within one business day of the Effective Date, the Company shall file Articles Supplementary with the
Secretary of State of Maryland to opt out of the provisions of Sections 3-804(a), 3-804(b) and 3-805 of the Maryland General Corporation
Law.

 

5.3.          Unless
unanimously opposed by all of the members of the Board of Directors, in connection with the 2014 Annual Meeting, the Board of Directors
shall (a) recommend an amendment to the Company’s Articles of Incorporation to provide that directors may be removed
without cause; (b) include such proposal in the Company’s proxy statement for the 2014 Annual Meeting; and (c) use reasonable
efforts to seek Stockholder approval for such proposal, including soliciting proxies with respect thereto. Prior to the 2014 Annual
Meeting, each of the members of the Board of Directors shall agree to resign upon the passage of a Stockholder resolution to remove
such director without cause.

 

    	 

    	 

    

 

5.4.         Unless
unanimously opposed by all of the members of the Board of Directors, in connection with the 2014 Annual Meeting, the Board of Directors
shall (a) recommend: (i) an amendment to the Company’s Articles of Incorporation to provide that special meetings
of Stockholders shall be called by the secretary of the Company upon the written request of the holders of shares entitled to cast
not less than one-third of all the votes entitled to be cast at the meeting, which amendment shall be conditioned on Stockholder
approval of the amendment referenced in the following clause (a)(ii), and (ii) an amendment to the Company’s Articles of
Incorporation to provide that a quorum at a Stockholder meeting shall be the presence in person or by proxy of Stockholders entitled
to cast at least one-third of all of the votes entitled to be cast at such meeting on any matter, which amendment shall be conditioned
on Stockholder approval of the amendment referenced in the foregoing clause (a)(i); (b) include such proposals in the Company’s
proxy statement for the 2014 Annual Meeting; and (c) use reasonable efforts to seek Stockholder approval for such proposals, including
soliciting proxies with respect thereto.

 

5.5.         Unless
unanimously opposed by all of the members of the Board of Directors, in connection with the 2014 Annual Meeting, the Board of Directors
shall

 

a.           recommend
that the Stockholders (i) elect to opt out of the provisions of Section 3-804(c) of the Maryland General Corporation Law at this
time and to (ii) clarify the role of Independent Directors and Stockholders with respect to filling vacancies on the Board of Directors,
in both cases by replacing the last paragraph of Section 7.1 of the Company’s Articles of Incorporation with the following:

 

Independent Directors shall nominate
replacements for vacancies among board positions previously held or required to be held by Independent Directors except when such
nominations are made by a stockholder.

 

b.           include
such proposal in the Company’s proxy statement for the 2014 Annual Meeting; and

 

c.           use
reasonable efforts to seek Stockholder approval for such proposal, including soliciting proxies with respect thereto.

 

6.           2013
Annual Meeting and 2014 Annual Meeting.

 

6.1.          The
Coalition shall immediately cease, and shall cause all of their Affiliates to cease, any and all efforts with respect to the solicitation
of proxies for the 2013 Annual Meeting. Promptly following the Effective Time, the Coalition shall notify the SEC that it is terminating
its proxy contest with respect to the 2013 Annual Meeting.

 

6.2.          No
member of the Coalition shall make any proposal from the floor at the 2013 Annual Meeting.

 

6.3.          No
member of the Coalition shall vote or cause to be voted any proxies that may have been received pursuant to the Coalition Proxy
Statement.

 

    	 

    	 

    

 

6.4.          The
Coalition shall cease all support for the election of Mr. Spitzer to the Board of Directors as a Class I director at the 2013 Annual
Meeting and for the Removal Proposal at the 2013 Annual Meeting. All members of the Coalition shall vote their shares in favor
of Mr. Batinovich’s election at the 2013 Annual Meeting. If Mr. Batinovich is not elected at the 2013 Annual Meeting and
is up for election at the 2014 Annual Meeting as a Class I director, the Coalition shall vote their shares in favor of Mr. Batinovich’s
election at the 2014 Annual Meeting and shall publicly disclose their intention to vote for Mr. Batinovich. If requested by the
Company, James Ronald King Sr. shall join in a press release announcing his intention to vote in favor of Mr. Batinovich’s
election at the 2014 Annual Meeting and the reasons therefor.

 

6.5.          The
Company shall take all of the following actions with respect to Mr. Spitzer’s nomination and election as a Class II director
of the Company at the 2014 Annual Meeting: (a) at least 45 days prior to the first date on which a Stockholder may submit
a proposal or nomination for the 2014 Annual Meeting pursuant to the Company’s amended and restated bylaws, the Board of
Directors shall nominate Mr. Spitzer for election as a Class II director of the Company at the 2014 Annual Meeting and shall publicly
announce such nomination; (b) the Board of Directors shall recommend that the Company’s Stockholders vote to elect Mr. Spitzer;
(c) the Company shall include the foregoing recommendation in its proxy materials; (d)  the Company’s form of proxy
shall solicit authority to vote for Mr. Spitzer; and (e) the Company shall use reasonable efforts to solicit proxies
for the election of Mr. Spitzer, which efforts shall be equivalent to those used to elect any other Company nominee, if any, at
the 2014 Annual Meeting. If Mr. Spitzer is unable or unwilling or ceases to serve as a director, the Coalition shall be entitled
to designate a replacement that is independent of the Coalition and the Company (within the meaning of the New York Stock Exchange
independence rules and within the meaning of the Company’s Articles of Incorporation) which shall be reasonably acceptable
to the Board. The Board of Directors shall promptly appoint such replacement to the Board of Directors and all references in this
Agreement to Mr. Spitzer shall be deemed to apply to his replacement.

 

6.6.          If
any Person other than the Company or its Affiliates initiates any “solicitation” of any “proxy” within
the meaning of Rule 14a-1 promulgated by the SEC under the 1934 Act to vote any shares of Company stock with respect to any proposal
for the election of Mr. Thompson or an Affiliate of Mr. Thompson as a director of the Company or that supports the rehiring of
Mr. Thompson or his Affiliates as advisor or property manager or as an officer or employee of the Company, including a proposal
for the nomination or election of a director candidate who publicly supports such hiring, the Coalition shall not publicly support
such solicitation. If requested by the Company, Mr. King shall join in a press release acceptable to Mr. King that states Mr. King’s
intention to vote in favor of the Company’s recommendations with respect to such solicitation and the reasons therefor, which
press release shall not contain any disparaging or negative statements about Thompson National Properties, LLC or its Affiliates.

 

6.7.          After
giving effect to the stock sale provided for in Section 9, neither Anthony Thompson nor Sharon Thompson (nor any Affiliates of
either of them) shall acquire or beneficially own any Company Voting Securities.

 

7.           Standstill
and Related Matters.

 

7.1.          Each
of the members of the Coalition agrees that neither it nor any of its Affiliates will, without the written consent of the Company,
directly or indirectly:

 

    	 

    	 

    

 

a.           form,
join in or in any other way participate in a “partnership, limited partnership, syndicate or other group” within the
meaning of Section 13(d)(3) of the 1934 Act with respect to any Company Voting Securities, or deposit any Company Voting Securities
in a voting trust or similar arrangement or subject any Company Voting Securities to any voting agreement or pooling arrangement;

 

b.           solicit
proxies or written consents of Stockholders, or otherwise conduct any nonbinding referendum with respect to any Company Voting
Securities, or make, or in any way participate in, any “solicitation” of any “proxy” within the meaning
of Rule 14a-1 promulgated under the 1934 Act to vote any shares of Company stock with respect to any matter, or become a “participant”
in any solicitation with respect to the Company (as such terms are defined or used under the 1934 Act) other than solicitations
or acting as a “participant” in support of the Company’s proposals or nominees, or seek to advise or influence
any Person with respect to the voting of any Company Voting Securities or voting securities of any of the Company’s subsidiaries
in any contested solicitation except in support of the Company’s proposals or nominees;

 

c.           seek
to call, or to request the call of, a special meeting of the Stockholders of the Company, or seek to make, or make, a Stockholder
proposal at any meeting of the Stockholders of the Company or make a request for a list of the Company’s Stockholders or
otherwise acting alone, or in concert with others, seek to control or influence the governance or policies of the Company;

 

d.           
publicly disclose, or cause or facilitate the public disclosure (including without limitation the filing of any document or report
with the SEC or any other governmental agency or any disclosure to any journalist, member of the media or securities analyst) of
any intent, purpose, plan or proposal to obtain any waiver, or consent under, or any amendment of, any of the provisions of this
Section 7.1, or otherwise publicly seek to obtain any waiver, or consent under, or any amendment of, any provision of this Section
7.1.; or

 

e.           enter
into any arrangements, understanding or agreements (whether written or oral) with, or advise, finance, assist, or knowingly encourage,
any Person in connection with any of the foregoing.

 

7.2.         The
members of the Coalition hereby inform the Company that, as of the date of this Agreement, no Stockholders have informed the members
of the Coalition that they have any present or future intention of participating in any “solicitation” of any “proxy”
within the meaning of Rule 14a-1 promulgated by the SEC under the 1934 Act with respect to the Company.

 

7.3.         Notwithstanding
the foregoing, nothing in Section 6.6. or this Section 7 shall be deemed to restrict or limit the ability of members of the Coalition
to (a) discuss any matter confidentially with the Company, the Board of Directors or any of its members, (b) take any
action required by applicable law (whether or not otherwise restricted by this Section 7), (c) communicate, on a confidential
basis, with attorneys, accountants or other advisors, (d) participate in the BDAC or exercise its rights pursuant to Section 4,
(e) take any action required to be taken by any member of the Coalition pursuant to this Agreement, (f) vote its Voting Securities
on any matter (except as required pursuant to Section 6.4) or, if asked, to non-publicly disclose how it intends to vote or has
voted or (g) take any action with respect to the Existing Litigation.

 

    	 

    	 

    

 

8.          Press
Release and Non-disparagement. Immediately following the Effective Time, (a) the Company and the Coalition shall issue
the joint press release attached hereto as Exhibit B (the “Settlement Press Release”) and
(b) the Company shall file with the SEC a Current Report on Form 8-K to disclose this Agreement in a manner consistent with
the Settlement Press Release. None of the Parties nor any Affiliate of any Party shall (x) make any public statements (including
in any filing with the SEC or any other regulatory or governmental agency, including any stock exchange) that contradict the statements
in the Settlement Press Release; (y) otherwise make any public statements that may reasonably be understood to be disparaging of
any of the other Parties or their Affiliates; or (z) issue or cause the publication of any press release or other public announcement
with respect to this Agreement, without the prior written consent of the Parties (provided that the Coalition may file a copy of
the Settlement Press Release or disclose the matters set forth in the Company’s 8-K disclosing this Agreement as a supplement
to its proxy materials). Notwithstanding the foregoing, any Party may make any statement reasonably believed to be required by
law or required in connection with the exercise of duties as a director of the Company. In addition, nothing in Section 7 or Section
8 shall prevent the Company, Glenborough, Mr. Thompson, Thompson National Properties, LLC or any of their respective Affiliates
from asserting any defense, affirmative defense, claim or counterclaim, or making any argument, asking the tribunal to take judicial
notice of any matter or presenting any evidence, in any court case, arbitration, mediation, regulatory investigation or other proceeding
not strictly related to the proxy contest relating to the 2013 Annual Meeting or any part or aspect thereof (the “Proxy
Contest”), including without limitation (a) the securities class action that is presently pending against the Company
and others in federal court in California, (b) the civil action that is presently pending in state court in California relating
to the termination of agreements to manage the Company’s properties, (c) any arbitration that may be commenced relating to
the agreements to manage the Company’s properties and the termination thereof, (d) any civil action that may be commenced
relating to any alleged breach by Mr. Thompson or any entity controlled by him of duties owed to the Company in providing services
to the Company or cooperating in the transition to the Company’s new service providers, or (e) the inquiries or investigations
by FINRA and the SEC that are currently ongoing against Mr. Thompson and entities controlled by him (the claims, actions, arbitrations
and inquiries described in clauses (a) through (e), and the matters relating thereto, collectively, the “Existing Litigation”).

 

9.          Buyout
of Anthony Thompson and Sharon Thompson. Concurrently herewith, Glenborough, Mr. Thompson, Ms. Thompson and Thompson National
Properties, LLC have entered into the agreement attached hereto as Exhibit C, pursuant to which Glenborough has agreed to
buy, and Mr. Thompson, Ms. Thompson and Thompson National Properties, LLC each have agreed to sell, all of the Company Voting Securities
beneficially owned by either Mr. Thompson, Ms. Thompson or Thompson National Properties, LLC at a price of $8.00 per share.

 

10.         Payment
of Expenses. The Company shall reimburse the Coalition for up to $200,000 of the third-party expenses it incurred in connection
with the solicitation of proxies in connection with the 2013 Annual Meeting, including, without limitation, reasonable legal fees
and expenses, printing and mailing expenses, and other reasonable expenses. Such payment shall be made on the date hereof via wire
transfer of cash to the SRT Shareholders Coalition pursuant to the wire instructions previously provided to the Company.

 

    	 

    	 

    

 

11.         Representations
and Warranties.

 

11.1.       The
Company hereby represents and warrants as follows:

 

a.           The
Company has the power and authority to execute, deliver and carry out the terms and provisions of this Agreement and to consummate
the transactions contemplated hereby.

 

b.           This
Agreement has been duly and validly authorized, executed and delivered by the Company, constitutes a valid and binding obligation
and agreement of the Company and is enforceable against the Company in accordance with its terms.

 

11.2.       Each
member of the Coalition severally, and not jointly, represent and warrant as follows:

 

a.           Each
member of the Coalition has the power and authority to execute, deliver and carry out the terms and provisions of this Agreement
and to consummate the transactions contemplated hereby.

 

b.           This
Agreement has been duly and validly authorized, executed and delivered by each member of the Coalition, constitutes a valid and
binding obligation and agreement of each such member and is enforceable against each such member in accordance with its terms.

 

11.3.       Glenborough
hereby represents and warrants as follows:

 

a.           Glenborough
has the power and authority to execute, deliver and carry out the terms and provisions of Section 9 of this Agreement and to consummate
the transactions contemplated hereby.

 

b.           This
Agreement has been duly and validly authorized, executed and delivered by Glenborough, constitutes a valid and binding obligation
and agreement of Glenborough and is enforceable against Glenborough in accordance with its terms.

 

    	 

    	 

    

 

12.         Releases.

 

12.1.          Each
of the Company and Glenborough: (a) fully releases, remises, exonerates and forever and unconditionally discharges each of the
Coalition and its respective Affiliates, Associates, Representatives, employees, agents and advisors (each, a “Coalition
Releasee”) from any and all liability and responsibility for any and all Company Claims (as hereinafter defined); and
(b) covenants and agrees not to participate in, commence or permit (to the extent within its control) the assertion or commencement
of any demand, allegation, litigation, proceeding or action, including any derivative claim, relating to any Company Claim, and
not to encourage, assist or cooperate with any Person in pursuing or asserting any Company Claim, whether directly or derivatively,
against any Coalition Releasee. As used in this agreement, “Company Claim” means any actual or alleged liability,
claim, action, suit, cause of action, obligation, debt, controversy, promise, contract, lien, judgment, account, reckoning, bond,
bill, covenant, agreement, demand, of any kind or nature, loss, cost, damage, penalty or expense (including, without limitation,
reasonable attorneys’ fees and expenses, and the cost of investigation and litigation), whether in law or in equity, whether
known or unknown, whether matured or unmatured and whether foreseen or unforeseen, that the Company may or could have had or now
or hereafter may have, for, upon, or by reason of, any matter, cause or thing whatsoever, resulting from, arising out of, relating
to, connected in any way with, or alleged, suggested or mentioned in connection with, (i) the Proxy Contest or any part or aspect
thereof, (ii) any action taken, or statement made, in connection with the Proxy Contest, or (iii) any action, failure to act, representation,
event, transaction, occurrence or other subject matter resulting from, arising out of, relating to, connected in any way with,
or alleged, suggested or mentioned, in connection with the Proxy Contest or with the actions, omissions, decisions and conduct
of the Coalition or any Coalition Releasee prior to the execution of this Agreement relating to the Proxy Contest; provided, however,
that for the avoidance of doubt, Company Claim shall not include any claim arising out of the performance of this Agreement or
the Existing Litigation.

 

12.2.          Each
of the Coalition parties: (a) fully releases, remises, exonerates and forever and unconditionally discharges the Company and
each of its Affiliates, Associates, Representatives, employees, agents and advisors (each, a “Company Releasee”)
from any and all liability and responsibility for any and all Coalition Claims (as hereinafter defined); and (b) covenants
and agrees not to participate in, commence or permit (to the extent within its respective control) the assertion or commencement
of any demand, allegation, litigation, proceeding or action, including any derivative action, relating to any Coalition Claim,
and not to encourage, assist or cooperate with any Person in pursuing or asserting any Coalition Claim, whether directly or derivatively,
against any Company Releasee. As used in this Agreement, “Coalition Claim” means any actual or alleged liability,
claim, action, suit, cause of action, obligation, debt, controversy, promise, contract, lien, judgment, account, reckoning, bond,
bill, covenant, agreement, demand of any kind or nature, loss, cost, damage, penalty or expense (including, without limitation,
reasonable attorneys’ fees and expenses, and the costs of investigation and litigation), whether in law or in equity, whether
known or unknown, whether matured or unmatured and whether foreseen or unforeseen, that any Coalition party may or could have had
or now or hereafter may have, for, upon, or by reason of, any matter, cause or thing whatsoever, resulting from, arising out of,
relating to, connected in any way with, or alleged, suggested or mentioned in connection with, (i) the Proxy Contest or any part
or aspect thereof, (ii) any action taken, or statement made, in connection with the Proxy Contest, or (iii) any action, failure
to act, representation, event, transaction, occurrence or other subject matter resulting from, arising out of, relating to, connected
in any way with, or alleged, suggested or mentioned in connection with the Proxy Contest or with the actions, omissions, decisions
and conduct of the Company, the Company Board or any of its committees or any other Company Releasee prior to the execution of
this Agreement relating to the Proxy Contest; provided, however, that, for the avoidance of doubt, Coalition Claim shall not include
(w) any claim arising out of the performance of this Agreement, (x) the Existing Litigation, (y) any indemnification rights under
any agreement, the Company’s Articles of Incorporation or the Company’s Bylaws or (z) the guarantee fees, an estimate
of and request of payment of which has been provided to the Company concurrently herewith.

 

    	 

    	 

    

 

13.         Miscellaneous.

 

13.1.          This
Agreement constitutes the entire agreement of the Parties with respect to its subject matter and supersedes any and all prior representations,
agreements or understandings, whether written or oral, between or among any of them with respect to such subject matter. This Agreement
may be amended only by a written agreement duly executed by the Parties.

 

13.2.          All
representations, warranties, covenants and agreements made by the Parties in this Agreement shall survive the date hereof until
the end of the Standstill Period, at which time this Agreement shall terminate. Notwithstanding the foregoing, Sections 1, 12 and
13 shall survive the Standstill Period.

 

13.3.          This
Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of Maryland without regard
to its conflict of law principles. If any Party commences a lawsuit or other proceeding relating to or arising from this Agreement,
the Parties hereto agree that any federal or state court located in the State of California shall have sole and exclusive jurisdiction
over any such lawsuit or proceeding. Any of these courts located in California shall be proper venue for any such lawsuit or judicial
proceeding and the Parties hereto waive any objection to such venue. The Parties consent to and agree to submit to the jurisdiction
of any of the foregoing courts located in California and agree to accept service of process to vest personal jurisdiction over
them in any of these courts.

 

13.4.          Notwithstanding
any provision of this Agreement, nothing in this Agreement shall be deemed to restrict the authority of any of the Company’s
directors to take any action in order to fulfill his or her duties as a director under Maryland law.

 

13.5.          Nothing
in this Agreement shall be deemed to constitute an admission by any person. Except where necessary to enforce the terms of this
Agreement, neither this Agreement nor any of the terms of this Agreement shall be admissible as evidence in any court case, arbitration
or other adversarial proceeding.

 

13.6.          Each
Party hereto hereby acknowledges and agrees, on behalf of itself and its Affiliates, that irreparable harm would occur in the event
any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached.
It is accordingly agreed that the Parties will be entitled to specific relief hereunder, including, without limitation, an injunction
or injunctions to prevent and enjoin breaches of the provisions of this Agreement and to enforce specifically the terms and provisions
hereof in any state or federal court in the State of California, in addition to any other remedy to which they may be entitled
at law or in equity. Any requirements for the securing or posting of any bond with such remedy are hereby waived.

 

13.7.          This
Agreement may not be assigned by any Party without the prior written consent of the other Parties. This Agreement shall be binding
upon, and inure to the benefit of, the respective successors and permitted assigns of the Parties.

 

    	 

    	 

    

 

13.8.          Any
waiver by any Party of a breach of any provision of this Agreement shall not be deemed to be a waiver of any other breach of such
provision or of any breach of any other provision of this Agreement.

 

13.9.          This
Agreement may be executed in counterparts, each of which shall constitute an original but all of which shall together constitute
a single instrument. A Party may deliver this Agreement via .pdf or facsimile, which delivery shall constitute delivery of an original
signature to this Agreement.

 

13.10.         If
any of the covenants or other provisions contained in this Agreement, or any part thereof, are invalid or unenforceable, it will
not affect the validity or enforceability of the remaining terms of this Agreement.

 

13.11.         Each
Party agrees to take or cause to be taken such further actions, and to execute, deliver and file or cause to be executed, delivered
and filed such further documents and instruments, and to obtain such consents, as may be reasonably required or requested by the
other Party in order to effectuate fully the terms and conditions of this Agreement.

 

14.         Notices.
All notices, consents, requests, instructions, approvals and other communications provided for herein and all legal process in
regard hereto shall be in writing and shall be deemed validly given, made or served, when actually received during normal business
hours at the address specified in this subsection:

 

if
to the Company:

 

Strategic Realty Trust,
Inc.

400 South El Camino
Real, Suite 1100

San Mateo, California,
94402

 

with a copy to:

 

DLA Piper LLP (US)

4141 Parklake Ave, Suite 300

Raleigh, NC 27612

Attention: Robert H. Bergdolt

 

if to the Coalition:

 

SRT Shareholders Coalition

2300 E. Katella Ave, Suite 235

Anaheim, CA 92806

 

    	 

    	 

    

 

with a copy to:

 

Bingham McCutchen LLP

355 South Grand Avenue, Suite 4400

Los Angeles, CA 90071-3106

Attention: David Robbins and Janice Liu

 

if
to Glenborough:

 

Strategic Property
Partners, LLC

400 South El Camino
Real, Suite 1100

San Mateo, California,
94402

Attention: Chip Burns 

 

    	 

    	 

    

 

IN WITNESS WHEREOF,
each of the Parties hereto has executed this Agreement, or caused the same to be executed by its duly authorized representative
as of the date first above written.

 

	 	STRATEGIC REALTY TRUST, INC.
	 	 	 
	 	By:	/s/ Andrew Batinovich
	 	 	Name: Andrew Batinovich
	 	 	Title: Chief Executive Officer
	 	 	 
	 	GLENBOROUGH PROPERTY PARTNERS, LLC1
	 	 	 
	 	By:	/s/ Andrew Batinovich
	 	 	Name: Andrew Batinovich
	 	 	Title: Chief Executive Officer
	 	 	 
	 	Thompson National Properties, LLC
	 	 	 
	 	By:	/s/ Anthony W. Thompson
	 	 	Name: Anthony W. Thompson
	 	 	Title: Chief Executive Officer
	 	 	 
	 	Tina Aldatz
	 	 	 
	 	By:	/s/ Tina Aldatz
	 	 	Tina Aldatz
	 	 	 
	 	Bernece Davis
	 	 	 
	 	By:	/s/ Bernece Davis
	 	 	Bernece Davis

 

 

1
Glenborough Properties Partners, LLC joins in this Agreement solely for the purposes set forth in Section 2.1, 9,
11.3, 12.1, 13 and 14 hereof.

 

    	 

    	 

    

 

	 	Robert Hoh
	 	 	 
	 	By:	/s/ Robert Hoh
	 	 	Robert Hoh
	 	 	 
	 	James Ronald King Sr.
	 	 	 
	 	By:	/s/ James Ronald King Sr.
	 	 	James Ronald King Sr.
	 	 	 
	 	Dr. David Larsen
	 	 
	 	By:	/s/ David Larsen
	 	 	Dr. David Larsen
	 	 	 
	 	John Skeffington
	 	 	 
	 	By:	/s/ John Skeffington
	 	 	John Skeffington
	 	 	 
	 	Anthony W. Thompson
	 	 	 
	 	By:	/s/ Anthony W. Thompson
	 	 	Anthony W. Thompson
	 	 	 
	 	Sharon Thompson
	 	 	 
	 	By:	/s/ Sharon Thompson
	 	 	Sharon Thompson

 

    	 

    	 

    

 

Schedule A

 

Tina Aldatz

 

Bernece Davis

 

Robert Hoh

 

James Ronald King Sr.

 

Dr. David Larsen

 

John Skeffington

 

Anthony Thompson

 

Sharon Thompson

 

Thompson National Properties, LLC 

 

    	 

    	 

    

 

EXHIBIT A

 

Third Amended and Restated Bylaws of Strategic
Realty Trust, Inc. 

 

    	 

    	 

    

 

THIRD AMENDED AND RESTATED BYLAWS 

OF

STRATEGIC REALTY TRUST, INC.

 

ARTICLE I

OFFICES

 

Section 1. PRINCIPAL
OFFICE. The principal office of Strategic Realty Trust, Inc. (“the Corporation”) in the State of Maryland shall
be located at such place as the Board of Directors of the Corporation (the “Board of Directors”) may designate.

 

Section 2. ADDITIONAL
OFFICES. The Corporation may have additional offices, including a principal executive office, at such places as the Board of
Directors may from time to time determine or the business of the Corporation may require.

 

ARTICLE II

MEETINGS OF STOCKHOLDERS

 

Section 1. PLACE.
All meetings of stockholders shall be held at the principal executive office of the Corporation or at such other place as shall
be set by the Board of Directors and stated in the notice of the meeting.

 

Section 2. ANNUAL
MEETING. An annual meeting of the stockholders for the election of directors and the transaction of any business within the
powers of the Corporation shall be held on the date and at the time set by the Board of Directors, beginning in the year 2009.

 

Section 3. SPECIAL
MEETINGS.

 

(a) General. The Board of Directors or a
majority of the Independent Directors (as defined in Section I.B.14 of the North American Securities Administrators Association’s
Statement of Policy Regarding Real Estate Investment Trusts, as revised and adopted May 7, 2007, (the “NASAA REIT Guidelines”))
may call a special meeting of stockholders. Except as provided in Section 3(b)(4), a special meeting of stockholders shall
be held on the date and at the time and place set by whoever has called the meeting. Subject to Section 3(b), a special meeting
of stockholders shall also be called by the secretary of the Corporation, to act on any matter that may properly be considered
at a special meeting of stockholders, upon the written request of the holders of shares of the Corporation (the “Shares”)
entitled to cast not less than ten percent of all the votes entitled to be cast on such matter at such meeting (a “Stockholder-Requested
Meeting”).

 

(b) Stockholder-Requested Special Meetings.
(1) Any stockholder of record seeking to have stockholders request a special meeting shall, by sending written notice in proper
form to the secretary of the Corporation (the “Record Date Request Notice”) at the principal executive office of the
Corporation by registered mail, return receipt requested, request the Board of Directors to fix a record date to determine the
stockholders entitled to request a special meeting (the “Request Record Date”). To be in proper form, the Record Date
Request Notice shall (i) set forth the purpose of the meeting and the matters proposed to be acted on at it , (ii) be
signed by one or more stockholders of record as of the date of signature (or his, her or their agent or agents duly authorized
in a writing accompanying the Record Date Request Notice), (iii) bear the date of signature of each such stockholder (or such
agent) and (iv) set forth all information relating to each such stockholder and each matter proposed to be acted on at the
special meeting that would be required to be disclosed in connection with the solicitation of proxies for the election of directors
in an election contest (even if an election contest is not involved), or would otherwise be required in connection with such a
solicitation, in each case pursuant to Regulation l4A (or any successor provision) under the Securities Exchange Act of 1934, as
amended, and the rules and regulations promulgated thereunder (the “Exchange Act”). Upon receiving the Record Date
Request Notice, the Board of Directors may fix a Request Record Date. The Request Record Date shall not precede and shall not be
more than 10 days after the close of business on the date on which the resolution fixing the Request Record Date is adopted by
the Board of Directors. If the Board of Directors, within 10 days after the date on which a valid Record Date Request Notice is
received, fails to adopt a resolution fixing the Request Record Date, the Request Record Date shall be the close of business on
the 10th day after the first date on which such Record Date Request Notice is received by the secretary.

 

    	 

    	 

    

 

(2) In order for any stockholder to request
a special meeting to act on any matter that may properly be considered at a special meeting of stockholders, one or more written
requests for a special meeting (collectively, the “Special Meeting Request”) in proper form and signed by stockholders
of record (or their agents duly authorized in a writing accompanying the request) as of the Request Record Date entitled to cast
not less than ten percent of all of the votes entitled to be cast on such matter at such meeting (the “Special Meeting Percentage”)
shall be delivered to the secretary at the principal executive office of the Corporation. To be in proper form, the Special Meeting
Request shall (i) set forth the purpose of the meeting and the matters proposed to be acted on at it (which shall be limited
to those lawful matters set forth in the Record Date Request Notice received by the secretary or, if applicable, called for in
the preliminary proxy statement referenced in the last sentence of Section 3(b)(1)), (ii) bear the date of signature of each
such stockholder (or such agent) signing the Special Meeting Request, (iii) set forth (A) the name and address, as they
appear in the Corporation’s books, of each stockholder signing such request (or on whose behalf the Special Meeting Request
is signed), and (B) the class, series and number of all shares of stock of the Corporation which are owned of record by each
such stockholder, (iv) be sent to the secretary by registered mail, return receipt requested, and (v) be received by
the secretary within 60 days after the Request Record Date. Any requesting stockholder (or agent duly authorized in a writing
accompanying the revocation of the Special Meeting Request) may revoke his, her or its request for a special meeting at any time
by written revocation delivered to the secretary.

 

(3) The secretary shall inform the requesting
stockholders of the reasonably estimated cost of preparing and mailing or delivering the notice of the Stockholder-Requested Meeting.
The secretary shall not be required to call a special meeting upon stockholder request and such meeting shall not be held unless,
in addition to the documents required by Section 3(b)(2), the secretary receives payment of such reasonably estimated cost prior
to the preparation and mailing or delivery of such notice of the Stockholder-Requested Meeting.

 

(4) Within ten days after the secretary of
the Corporation actually receives (i) a valid Special Meeting Request (the “Delivery Date”) and (ii) payment from
the requesting stockholders of the estimated cost of preparing and mailing the notice of the Stockholder Requested Meeting as provided
in Section 3(b)(3), the secretary of the Corporation shall provide all stockholders with written notice, either in person or by
mail, of such Stockholder-Requested Meeting. Such meeting shall be held at such place, date and time as may be designated by the
Board of Directors in its sole discretion; provided that such date is not less than 15 days nor more than 60 days after the secretary’s
delivery of such notice. In fixing a date for a Stockholder-Requested Meeting, the Board of Directors may consider such factors
as it deems relevant, including, without limitation, the nature of the matters to be considered, the facts and circumstances surrounding
any request for the meeting and any plan of the Board of Directors to call an annual meeting or a special meeting. The record date
for any Stockholder-Requested Meeting shall be set by the Board of Directors in its sole discretion. Notwithstanding anything to
the contrary in these bylaws, the Board of Directors may submit its own proposal or proposals for consideration at any such special
meeting.

 

    	 

    	 

    

 

(5) If written revocations of the Special
Meeting Request have been delivered to the secretary and the result is that stockholders of record (or their agents duly authorized
in writing), as of the Request Record Date, entitled to cast less than the Special Meeting Percentage have delivered, and not revoked,
requests for a special meeting on the matter to the secretary: (i) if the notice of meeting has not already been sent to the
stockholders of the Corporation, the secretary shall refrain from sending the notice of the meeting and shall send to all requesting
stockholders who have not revoked such requests written notice of any revocation of a request for a special meeting on the matter,
or (ii) if the notice of meeting has been sent to the stockholders of the Corporation, and if the secretary first sends to
all requesting stockholders who have not revoked requests for a special meeting on the matter written notice of any revocation
of a request for the special meeting and written notice of the Corporation’s intention to revoke the notice of and to cancel
the meeting or for the chairman of the meeting to adjourn the meeting without action on the matter, (A) the secretary may
revoke the notice of and cancel the meeting at any time before 10 days before the commencement of the meeting or (B) the
chairman of the meeting may call the meeting to order and adjourn the meeting without acting on the matter. Any request for a special
meeting received after a revocation by the secretary of a notice of a meeting shall be considered a request for a new special meeting.

 

(6) The secretary shall not accept, and the
secretary and the Corporation shall consider ineffective, any request from any stockholder to hold a special meeting or to establish
a Request Record Date that (i) does not comply with this Section 3 or (ii) proposes or includes an item of business
to be transacted at such special meeting that is not a proper subject for stockholder action under the charter of the Corporation,
these bylaws or applicable law.

 

(7) For purposes of these bylaws, “Business
Day” shall mean any day other than a Saturday, a Sunday or a day on which banking institutions in the State of New York or
the State of Maryland are authorized or obligated by law or executive order to close.

 

Section 4. NOTICE.
Except as provided otherwise in Section 3 of this Article II, not less than ten nor more than 90 days before each
meeting of stockholders, the secretary shall give to each stockholder entitled to vote at such meeting and to each stockholder
not entitled to vote who is entitled to notice of the meeting, written or printed notice stating the time and place of the meeting
and, in the case of a special meeting or as otherwise may be required by any applicable statute, the purpose for which the meeting
is called, either by mail, by presenting it to such stockholder personally, by leaving it at the stockholder’s residence
or usual place of business or by any other means permitted by Maryland law. If mailed, such notice shall be deemed to be given
when deposited in the United States mail addressed to the stockholder at the stockholder’s address as it appears on the records
of the Corporation, with postage thereon prepaid. A single notice shall be effective as to all stockholders who share an address,
except to the extent that a stockholder at such address objects to such single notice. Failure to give notice of any meeting to
one or more stockholders, or any irregularity in such notice, shall not affect the validity of any meeting fixed in accordance
with this Article II, or the validity of any proceedings at any such meeting.

 

Subject to Section
11(a) of this Article II, any business of the Corporation may be transacted at an annual meeting of stockholders without being
specifically designated in the notice, except such business as is required by any applicable statute to be stated in such notice.
No business shall be transacted at a special meeting of stockholders except as specifically designated in the notice. The Corporation
may postpone or cancel a meeting of stockholders by making a “public announcement” (as defined in Section 11(c)(3))
of such postponement or cancellation prior to the meeting.

 

    	 

    	 

    

 

Section 5. ORGANIZATION
AND CONDUCT. Every meeting of stockholders shall be conducted by an individual appointed by the Board of Directors to be chairman
of the meeting or, in the absence of such appointment, by the chairman of the board or, in the case of a vacancy in the office
or absence of the chairman of the board, by one of the following officers present at the meeting: the vice chairman of the board,
if there be one, the president, the vice presidents in their order of rank and seniority, or, in the absence of such officers,
a chairman chosen by the stockholders by the vote of a majority of the votes cast by stockholders present in person or by proxy.
The secretary, or, in the secretary’s absence, an assistant secretary, or in the absence of both the secretary and assistant
secretaries, an individual appointed by the Board of Directors or, in the absence of such appointment, an individual appointed
by the chairman of the meeting shall act as secretary. In the event that the secretary presides at a meeting of the stockholders,
an assistant secretary, or in the absence of assistant secretaries, an individual appointed by the Board of Directors or the chairman
of the meeting, shall record the minutes of the meeting. The order of business and all other matters of procedure at any meeting
of stockholders shall be determined by the chairman of the meeting. The chairman of the meeting may prescribe such rules, regulations
and procedures and take such action as, in the discretion of the chairman and without any action by the stockholders, are appropriate
for the proper conduct of the meeting, including, without limitation, (a) restricting admission to the time set for the commencement
of the meeting; (b) limiting attendance at the meeting to stockholders of record of the Corporation, their duly authorized
proxies and other such individuals as the chairman of the meeting may determine; (c) limiting participation at the meeting
on any matter to stockholders of record of the Corporation entitled to vote on such matter, their duly authorized proxies and other
such individuals as the chairman of the meeting may determine; (d) limiting the time allotted to questions or comments by
participants; (e) determining when the polls should be opened and closed; (f) maintaining order and security at the meeting;
(g) removing any stockholder or any other individual who refuses to comply with meeting procedures, rules or guidelines as set
forth by the chairman of the meeting; (h) concluding a meeting or recessing or adjourning the meeting to a later date and
time and at a place announced at the meeting; and (i) complying with any state and local laws and regulations concerning safety
and security. Unless otherwise determined by the chairman of the meeting, meetings of stockholders shall not be required to be
held in accordance with the rules of parliamentary procedure.

 

Section 6. QUORUM.
At any meeting of stockholders, the presence in person or by proxy of stockholders entitled to cast at least 50% of all the votes
entitled to be cast at such meeting on any matter shall constitute a quorum; but this section shall not affect any requirement
under any statute or the charter of the Corporation (“the Charter”) for the vote necessary for the adoption of any
measure. If, however, such quorum shall not be present at any meeting of the stockholders, the chairman of the meeting shall have
the power to adjourn the meeting from time to time to a date not more than 120 days after the original record date without
notice other than announcement at the meeting. At such adjourned meeting at which a quorum shall be present, any business may be
transacted which might have been transacted at the meeting as originally notified.

 

The stockholders present
either in person or by proxy, at a meeting which has been duly called and at which a quorum was established, may continue to transact
business until adjournment, notwithstanding the withdrawal of enough stockholders to leave less than a quorum.

 

Section 7. VOTING.
The holders of a majority of the Shares present in person or by proxy at an annual meeting at which a quorum is present may, without
the necessity for concurrence by the Board of Directors, vote to elect a director. A majority of the votes cast at a meeting of
stockholders duly called and at which a quorum is present shall be sufficient to approve any other matter which may properly come
before the meeting, unless more than a majority of the votes cast is required by statute or by the Charter. Unless otherwise provided
by statute or by the Charter, each outstanding Share, regardless of class, shall be entitled to one vote on each matter submitted
to a vote at a meeting of stockholders. On any uncontested matter, voting on any question or in any election may be viva voce
unless the chairman of the meeting shall order that voting be by ballot.

 

    	 

    	 

    

 

Section 8. PROXIES.
A stockholder may cast the votes entitled to be cast by the holder of the Shares owned of record by the stockholder in person or
by proxy executed by the stockholder or by the stockholder’s duly authorized agent in any manner permitted by law. Such proxy
or evidence of authorization of such proxy shall be filed with the secretary of the Corporation before or at the meeting. No proxy
shall be valid more than eleven months after its date unless otherwise provided in the proxy.

 

Section 9. VOTING
OF STOCK BY CERTAIN HOLDERS. Shares registered in the name of a corporation, partnership, trust or other entity, if entitled
to be voted, may be voted by the president or a vice president, a general partner or trustee thereof, as the case may be, or a
proxy appointed by any of the foregoing individuals, unless some other person who has been appointed to vote such Shares pursuant
to a bylaw or a resolution of the governing body of such corporation or other entity or agreement of the partners of a partnership
presents a certified copy of such bylaw, resolution or agreement, in which case such person may vote such Shares. Any director
or other fiduciary may vote Shares registered in his or her name in his or her capacity as such fiduciary, either in person or
by proxy.

 

Shares directly or
indirectly owned by the Corporation shall not be voted at any meeting and shall not be counted in determining the total number
of outstanding Shares entitled to be voted at any given time, unless they are held by it in a fiduciary capacity, in which case
they may be voted and shall be counted in determining the total number of outstanding Shares at any given time.

 

The Board of Directors
may adopt by resolution a procedure by which a stockholder may certify in writing to the Corporation that any Shares registered
in the name of the stockholder are held for the account of a specified person other than the stockholder. The resolution shall
set forth the class of stockholders who may make the certification, the purpose for which the certification may be made, the form
of certification and the information to be contained in it; if the certification is with respect to a record date, the time after
the record date within which the certification must be received by the Corporation; and any other provisions with respect to the
procedure which the Board of Directors considers necessary or desirable. On receipt of such certification, the person specified
in the certification shall be regarded as, for the purposes set forth in the certification, the stockholder of record of the specified
stock in place of the stockholder who makes the certification.

 

Section 10. INSPECTORS.
The Board of Directors or the chairman of the meeting may appoint, before or at the meeting, one or more independent inspectors
for the meeting and any successor thereto. The inspectors, if any, shall (a) determine the number of Shares represented at
the meeting, in person or by proxy, and the validity and effect of proxies, (b) receive and tabulate all votes, ballots or
consents, (c) report such tabulation to the chair of the meeting, (d) hear and determine all challenges and questions
arising in connection with the right to vote, and (e) do such acts as are proper to conduct the election or vote with fairness
to all stockholders. Each such report shall be in writing and signed by him or her or by a majority of them if there is more than
one inspector acting at such meeting. If there is more than one inspector, the report of a majority shall be the report of the
inspectors. The report of the inspector or inspectors on the number of Shares represented at the meeting and the results of the
voting shall be prima facie evidence thereof.

 

    	 

    	 

    

 

Section 11. ADVANCE
NOTICE OF STOCKHOLDER NOMINEES FOR DIRECTOR AND OTHER STOCKHOLDER PROPOSALS.

 

(a) Annual Meetings
of Stockholders.

 

(1) Nominations
of individuals for election to the Board of Directors and the proposal of other business to be considered by the stockholders may
only be made at an annual meeting of stockholders (i) pursuant to the Corporation’s notice of meeting (or any amendment
thereto), (ii) by or at the direction of the Board of Directors or (iii) by any stockholder of the Corporation who was
a stockholder of record both at the time of giving of notice by the stockholder as provided for in this Section 11(a) and at the
time of the annual meeting, who is entitled to vote at the meeting on the election of each individual so nominated or on any such
other business and who has complied with this Section 11(a). Clause (iii) of the immediately preceding sentence shall be the sole
and exclusive means for a stockholder to make nominations or other business proposals before an annual meeting of stockholders
(other than matters properly brought under, and to the extent required by, Rule 14a-8 under the Exchange Act and included in the
Corporation’s notice of meeting).

 

(2) Without qualification
or limitation, subject to Section 11(a)(4), for nominations or other business to be properly brought before an annual meeting of
stockholders by a stockholder pursuant to clause (iii) of paragraph (a)(1) of this Section 11, the stockholder must have
given timely notice thereof in writing to the secretary of the Corporation and such other business must otherwise be a proper matter
for action by the stockholders. To be timely, a stockholder’s notice shall set forth all information required under this
Section 11 and shall be delivered to the secretary at the principal executive office of the Corporation not earlier than the
150th day nor later than 5:00 p.m., Pacific Time, on the 120th day prior to the first anniversary of the date of the proxy
statement (as defined in Section 11(c)(3) of this Article II) for the preceding year’s annual meeting; provided,
however, that in the event that the date of the annual meeting is advanced or delayed by more than 30 days from the first
anniversary of the date of the preceding year’s annual meeting, in order for notice by the stockholder to be timely, such
notice must be so delivered not earlier than the 150th day prior to the date of such annual meeting and not later than 5:00 p.m.,
Pacific Time, on the later of the 120th day prior to the date of such annual meeting, as originally convened, or the tenth day
following the day on which public announcement of the date of such meeting is first made. The public announcement of a postponement
or adjournment of an annual meeting shall not commence a new time period for the giving of a stockholder’s notice as described
above.

 

(3) A stockholder’s notice described
in Section 11(a)(2) shall set forth:

 

(i) as to each individual whom the stockholder
proposes to nominate for election or reelection as a director (each, a “Proposed Nominee”), all information relating
to the Proposed Nominee that would be required to be disclosed in connection with the solicitation of proxies for the election
of the Proposed Nominee as a director in an election contest (even if an election contest is not involved), or would otherwise
be required in connection with such solicitation, in each case pursuant to Regulation 14A (or any successor provision) under the
Exchange Act;

 

(ii) as to any other business that the stockholder
proposes to bring before the meeting, a description of such business, the stockholder’s reasons for proposing such business
at the meeting and any material interest in such business of such stockholder or any Stockholder Associated Person (as defined
below), individually or in the aggregate, including any anticipated benefit to the stockholder or the Stockholder Associated Person
therefrom;

 

    	 

    	 

    

 

(iii) as to the stockholder giving the notice,
any Proposed Nominee and any Stockholder Associated Person: (A) the class, series and number of all shares of stock or other
securities of the Corporation or any affiliate thereof (collectively, the “Company Securities”), if any, which are
owned (beneficially or of record) by such stockholder, Proposed Nominee or Stockholder Associated Person; (B) any derivative,
swap or other transaction or series of transactions engaged in, directly or indirectly, by such stockholder, Proposed Nominee or
Stockholder Associated Person, the purpose or effect of which is to give such stockholder, Proposed Nominee or Stockholder Associated
Person economic risk similar to ownership of shares of any class or series of the Corporation, including due to the fact that the
value of such derivative, swap, or other transactions are determined by reference to the price, value or volatility of any shares
of any class or series of the Corporation, or which derivative, swap or other transactions provide, directly or indirectly, the
opportunity to profit from any increase in the price or value of shares of any class or series of the Corporation (“Synthetic
Equity Interests”), which Synthetic Equity Interests shall be disclosed without regard to whether (x) the derivative,
swap or other transactions convey any voting rights in such shares to such stockholder, Proposed Nominee or Stockholder Associated
Person, (y) the derivative, swap or other transactions are required to be, or are capable of being, settled through delivery
of such shares or (z) such stockholder, Proposed Nominee or Stockholder Associated Person may have entered into other transactions
that hedge or mitigate the economic effect of such derivative, swap or other transactions; (C) any proxy, contract, arrangement,
understanding or other relationship pursuant to which such stockholder, Proposed Nominee or Stockholder Associated Person has a
right to vote any shares of any security of the Corporation; (D) any short interest in any security of the Corporation (for
purposes of these bylaws, a person shall be deemed to have a short interest in a security if such person directly or indirectly,
through any contract, arrangement, understanding, relationship or otherwise, has the opportunity to profit or share in any profit
derived from any decrease in the value of the subject security); (E) any rights to dividends on the shares of the Corporation
owned beneficially by such stockholder, Proposed Nominee or Stockholder Associated Person that are separated or separable from
the underlying shares of the Corporation; (F) any proportionate interest in shares of the Corporation or Synthetic Equity
Interests held, directly or indirectly, by a general or limited partnership in which such stockholder,
Proposed Nominee or Stockholder Associated Person is a general partner or, directly or indirectly, beneficially owns an interest
in a general partner; (G) any performance-related fees (other than an asset-based fee) that such stockholder, Proposed Nominee
or Stockholder Associated Person is entitled to based on any increase or decrease in the value of shares of the Corporation, if
any, as of the date of such notice, including, without limitation, any such interests held by members of such stockholder’s,
Proposed Nominee’s or Stockholder Associated Person’s immediate family sharing the same household (which information
required by this subsection (iii) shall be supplemented by such stockholder, Proposed Nominee or Stockholder Associated Person
and beneficial owner, if any, not later than 10 days after the record date for the meeting to disclose such ownership as of
the record date); (H) any substantial interest, direct or indirect (including, without limitation, any existing or prospective
commercial, business or contractual relationship with the Corporation), by security holdings or otherwise, of such stockholder,
Proposed Nominee or Stockholder Associated Person, in the Corporation or any affiliate thereof, other than an interest arising
from the ownership of Company Securities where such stockholder, Proposed Nominee or Stockholder Associated Person receives no
extra or special benefit not shared on a pro rata basis by all other holders of the same class or series; and (I) any
other information relating to such stockholder, Proposed Nominee or Stockholder Associated Person and beneficial owner, if any,
that would be required to be disclosed in a proxy statement or other filings required to be made in connection with solicitation
of proxies for, as applicable, the proposal and/or for the election of directors in a contested election pursuant to Regulation
14A (or any successor provision) of the Exchange Act; and

 

(iv) as to the stockholder giving the notice,
any Stockholder Associated Person with an interest or ownership referred to in clauses (ii) or (iii) of this Section 11(a)(3)
and any Proposed Nominee: the name and address of such stockholder, as they appear on the Corporation’s stock ledger, and
the current name and business address, if different, of each such Stockholder Associated Person and any Proposed Nominee.

 

(4) A stockholder’s notice described
in Section 11(a)(2) or Section 11(b), as the case may be, shall, with respect to any Proposed Nominee, be accompanied
by a certificate executed by the Proposed Nominee (i) certifying that such Proposed Nominee (a) is not, and will not
become a party to, any agreement, arrangement or understanding with any person or entity other than the Corporation in connection
with service or action as a director of the Corporation that has not been disclosed to the Corporation and (b) will serve
as a director of the Corporation if elected; and (ii) attaching a completed Proposed Nominee questionnaire (which questionnaire
shall be provided by the Corporation, promptly upon request, to the stockholder providing the notice and shall include all information
relating to the Proposed Nominee that would be required to be disclosed in connection with the solicitation of proxies for the
election of the Proposed Nominee as a director in an election contest (even if an election contest is not involved), or would otherwise
be required in connection with such solicitation, in each case pursuant to Regulation 14A (or any successor provision) under the
Exchange Act and the rules thereunder, or would be required pursuant to the rules of any national securities exchange on which
any securities of the Corporation are listed or over-the-counter market on which any securities of the Corporation are traded).

 

    	 

    	 

    

 

(5) Notwithstanding anything in this Section 11(a) to
the contrary, in the event that the number of directors to be elected to the Board of Directors is increased, and there is no public
announcement of such action at least 130 days prior to the first anniversary of the date of the proxy statement (as defined
in Section 11(c)(3) of this Article II) for the preceding year’s annual meeting, a stockholder’s notice required
by this Section 11(a) shall also be considered timely, but only with respect to nominees for any new positions created
by such increase, if it shall be delivered to the secretary at the principal executive office of the Corporation not later than
5:00 p.m., Pacific Time, on the tenth day following the day on which such public announcement is first made by the Corporation.
Notwithstanding anything in this Section 11(a) to the contrary, in the event that the number of directors to be elected
to the Board of Directors is decreased after the date that a stockholder has timely provided valid notice of director nominations,
such stockholder shall be permitted to amend such notice to reduce the number of directors to be nominated.  Such amendment
shall be considered timely, but only with respect to the reduction in nominees created by such decrease, if it shall be delivered
to the secretary at the principal executive office of the Corporation not later than 5:00 p.m., Pacific Time, on the tenth
day following the day on which such public announcement is first made by the Corporation.

 

(6) For purposes of these bylaws, “Stockholder
Associated Person” of any stockholder shall mean (i) any person acting in concert with such stockholder (other than
by virtue of furnishing a revocable proxy), (ii) any beneficial owner of shares of stock of the Corporation owned of record
or beneficially by such stockholder (other than a stockholder that is a depositary) and (iii) any person that directly, or
indirectly through one or more intermediaries, controls, is controlled by or is under common control with, such stockholder or
such Stockholder Associated Person.

 

(b) Special Meetings of Stockholders. Only
such business shall be conducted at a special meeting of stockholders as shall have been brought before the meeting pursuant to
the Corporation’s notice of meeting.

 

(c) General. (1) If information submitted
pursuant to this Section 11 by any stockholder proposing a nominee for election as a director or any proposal for other business
at a meeting of stockholders shall be inaccurate in any material respect, such information may be deemed not to have been provided
in accordance with this Section 11. Any such stockholder shall (i) notify the Corporation of any material inaccuracy
or change (within two Business Days of becoming aware of such inaccuracy or change) in any such information and (ii) promptly
update and supplement the information previously provided to the Corporation pursuant to this Section 11, if necessary, so
that the information provided or required to be provided shall be true and correct as of the record date for the meeting and as
of the date that is 10 Business Days prior to the meeting or any adjournment or postponement thereof, and such update and
supplement shall be delivered to the secretary at the principal executive office of the Corporation. Without limiting the foregoing,
upon written request by the secretary or the Board of Directors, any such stockholder shall provide, within five Business Days
of delivery of such request (or such other period as may be specified in such request), (A) written verification, satisfactory,
in the discretion of the Board of Directors or any authorized officer of the Corporation, to demonstrate the accuracy of any information
submitted by the stockholder pursuant to this Section 11, (B) a written update of any information (including, if requested
by the Corporation, written confirmation by such stockholder that it continues to intend to bring such nomination or other business
proposal before the meeting) submitted by the stockholder pursuant to this Section 11 as of an earlier date and (C) any
other information requested by the Corporation as may reasonably be required to determine the eligibility of any Proposed Nominee
to serve as an independent director of the Corporation or that would be material to a reasonable stockholder’s understanding
of the independence, or lack thereof, of such Proposed Nominee. If a stockholder fails to provide such written verification or
written update within such period, the information as to which written verification or a written update was requested may be deemed
not to have been provided in accordance with this Section 11.

 

    	 

    	 

    

 

(2) Only such individuals who are nominated
in accordance with this Section 11 shall be eligible for election by stockholders as directors, and only such business shall
be conducted at a meeting of stockholders as shall have been brought before the meeting in accordance with this Section 11
except as required pursuant to Rule 14a-8 under the Exchange Act or such similar rule promulgated by the Securities and Exchange
Commission (the “SEC”) that governs the inclusion of stockholder proposals in proxy materials or consideration at a
stockholders’ meeting. The chairman of the meeting shall have the power to determine whether a nomination or any other business
proposed to be brought before the meeting was made or proposed, as the case may be, in accordance with these bylaws and, if any
proposed nomination or other business is not in compliance with these bylaws, to declare that no action shall be taken on such
nomination or other proposal, and such nomination or other proposal shall be disregarded.

 

(3) For purposes of this Section 11:
(i) “the date of the proxy statement” shall have the same meaning as “the date of the company’s proxy
statement released to shareholders” as used in Rule 14a-8(e) promulgated under the Exchange Act, as interpreted by the
SEC from time to time; and (ii) “public announcement” shall mean disclosure (A) in a press release reported
by the Dow Jones News Service, Associated Press, Business Wire, PR Newswire or other widely circulated news or wire service or
(B) in a document publicly filed by the Corporation with the SEC pursuant to the Exchange Act.

 

(4) Notwithstanding the foregoing provisions
of this Section 11, a stockholder shall also comply with all applicable requirements of state law and of the Exchange Act
and the rules and regulations thereunder with respect to the matters set forth in this Section 11. Nothing in this Section 11
shall be deemed to affect any right of a stockholder to request inclusion of a proposal in, or the right of the Corporation to
omit a proposal from, the Corporation’s proxy statement pursuant to Rule 14a-8 (or any successor provision) under the
Exchange Act. Nothing in this Section 11 shall require disclosure of revocable proxies received by the stockholder or Stockholder
Associated Person pursuant to a solicitation of proxies after the filing of an effective Schedule 14A by such stockholder or Stockholder
Associated Person under Section 14(a) of the Exchange Act.

 

Section 12. CONTROL
SHARE ACQUISITION ACT. Notwithstanding any other provision of the Charter or these Bylaws, Title 3, Subtitle 7 of
the Maryland General Corporation Law (the “MGCL”) (or any successor statute) shall not apply to any acquisition by
any person of Shares. This section may be repealed, in whole or in part, at any time, whether before or after an acquisition of
control shares and, upon such repeal, may, to the extent provided by any successor bylaw, apply to any prior or subsequent control
share acquisition.

 

ARTICLE III

DIRECTORS

 

Section 1. GENERAL
POWERS. The business and affairs of the Corporation shall be managed under the direction of its Board of Directors.

 

    	 

    	 

    

 

Section 2. NUMBER,
TENURE AND QUALIFICATIONS. At any regular meeting or at any special meeting called for that purpose, the number of directors
may be established, increased or decreased by the unanimous vote of the Board of Directors or by a vote of the stockholders, provided
that the number thereof shall never be less than the minimum number required by the MGCL (or, upon the commencement of the initial
public offering, three) nor more than 15, and further provided that the tenure of office of a director shall not be affected by
any decrease in the number of directors.

 

Section 3. ANNUAL
AND REGULAR MEETINGS. An annual meeting of the Board of Directors shall be held immediately after and at the same place as
the annual meeting of stockholders, no notice other than this Bylaw being necessary. In the event such meeting is not so held,
the meeting may be held at such time and place as shall be specified in a notice given as hereinafter provided for special meetings
of the Board of Directors. The Board of Directors may provide, by resolution, the time and place for the holding of regular meetings
of the Board of Directors without other notice than such resolution.

 

Section 4. SPECIAL
MEETINGS. Special meetings of the Board of Directors may be called by or at the request of the chairman of the board, the chief
executive officer, the president or by a majority of the directors then in office. The person or persons authorized to call special
meetings of the Board of Directors may fix any place as the place for holding any special meeting of the Board of Directors called
by them. The Board of Directors may provide, by resolution, the time and place for the holding of special meetings of the Board
of Directors without other notice than such resolution.

 

Section 5. NOTICE.
Notice of any special meeting of the Board of Directors shall be delivered personally or by telephone, electronic mail, facsimile
transmission, United States mail or courier to each director at his or her business or residence address. Notice by personal delivery,
telephone, electronic mail or facsimile transmission shall be given at least 24 hours prior to the meeting. Notice by United States
mail shall be given at least three days prior to the meeting. Notice by courier shall be given at least two days prior to the meeting.
Telephone notice shall be deemed to be given when the director or his or her agent is personally given such notice in a telephone
call to which the director or his or her agent is a party. Electronic mail notice shall be deemed to be given upon transmission
of the message to the electronic mail address given to the Corporation by the director. Facsimile transmission notice shall be
deemed to be given upon completion of the transmission of the message to the number given to the Corporation by the director and
receipt of a completed answer-back indicating receipt. Notice by United States mail shall be deemed to be given when deposited
in the United States mail properly addressed, with postage thereon prepaid. Notice by courier shall be deemed to be given when
deposited with or delivered to a courier properly addressed. Neither the business to be transacted at, nor the purpose of, any
annual, regular or special meeting of the

Board of Directors need be stated in the
notice, unless specifically required by statute or these Bylaws.

 

Section 6. QUORUM.
A majority of the directors shall constitute a quorum for transaction of business at any meeting of the Board of Directors, provided
that, if less than a majority of such directors is present at such meeting, a majority of the directors present may adjourn the
meeting from time to time without further notice, and provided further that if, pursuant to applicable law, the Charter or these
Bylaws, the vote of a majority or other percentage of a particular group of directors is required for action, a quorum must also
include a majority of such group.

 

The directors present
at a meeting which has been duly called and at which a quorum was established may continue to transact business until adjournment,
notwithstanding the withdrawal of enough directors to leave less than a quorum.

 

    	 

    	 

    

 

Section 7. VOTING.
The action of a majority of the directors present at a meeting at which a quorum is present shall be the action of the Board of
Directors, unless the concurrence of a greater proportion is required for such action by applicable law, the Charter or these Bylaws.
If enough directors have withdrawn from a meeting to leave less than a quorum but the meeting is not adjourned, the action of the
majority of that number of directors necessary to constitute a quorum at such meeting shall be the action of the Board of Directors,
unless the concurrence of a greater proportion is required for such action by applicable law, the Charter or these Bylaws. A majority
of the Independent Directors must also approve any action of the Board of Directors to which the following sections of the NASAA
REIT Guidelines apply: II.A., II.C., II.F., II.G., IV.A., IV.B., IV.C., IV.D., IV.E., IV.F., IV.G., V.E., V.H., V.J., VI.A., VI.B.4,
and VI.G.

 

Section 8. ORGANIZATION.
At each meeting of the Board of Directors, the chairman of the board or, in the absence of the chairman, the vice chairman of the
board, if any, shall act as chairman of the meeting. In the absence of both the chairman and vice chairman of the board, the chief
executive officer or in the absence of the chief executive officer, the president or in the absence of the president, a director
chosen by a majority of the directors present, shall act as chairman of the meeting. The secretary or, in his or her absence, an
assistant secretary of the Corporation, or in the absence of the secretary and all assistant secretaries, a person appointed by
the chairman of the meeting, shall act as secretary of the meeting.

 

Section 9. TELEPHONE
MEETINGS. Directors may participate in a meeting by means of a conference telephone or other communications equipment if all
persons participating in the meeting can hear each other at the same time. Participation in a meeting by these means shall constitute
presence in person at the meeting.

 

Section 10. CONSENT
BY DIRECTORS WITHOUT A MEETING. Any action required or permitted to be taken at any meeting of the Board of Directors may be
taken without a meeting, if a consent in writing or by electronic transmission to such action is given by each director and is
filed with the minutes of proceedings of the Board of Directors.

 

Section 11. VACANCIES.
If for any reason any or all the directors cease to be directors, such event shall not terminate the Corporation or affect these
Bylaws or the powers of the remaining directors hereunder. Unless the Corporation is subject to Section 3-804(c) of the MGCL and
except as may be provided by the Board of Directors in setting the terms of any class or series of preferred stock, any vacancy
on the Board of Directors shall be filled by either (x) a majority of the remaining directors, even if such majority is less
than a quorum, or (y) the stockholders; and any individual so elected as director shall serve until the next annual meeting
of stockholders and until his or her successor is elected and qualifies. At such time as the Corporation is subject to Section 3-804(c)
of the MGCL and except as may be provided by the Board of Directors in setting the terms of any class or series of preferred stock,
any vacancy on the Board of Directors shall be filled only by a majority of the remaining directors, even if the remaining directors
do not constitute a quorum, and any director elected to fill a vacancy shall serve for the remainder of the full term of the directorship
in which the vacancy occurred and until a successor is elected and qualifies.

 

Section 12. COMPENSATION.
Directors shall not receive any stated salary for their services as directors but, by resolution of the Board of Directors, may
receive compensation per year and/or per meeting and/or per visit to real property or other facilities owned or leased by the Corporation
and for any service or activity they performed or engaged in as directors. For the years 2014 and 2015, such compensation shall
not exceed $40,000 per director per year, excluding reasonable reimbursement of expenses and the vesting of any previously granted
equity awards, except that the chairman or chairmen of the audit committee shall be entitled to up to an additional $2,500 per
quarter. Directors may be reimbursed for expenses of attendance, if any, at each annual, regular or special meeting of the Board
of Directors or of any committee thereof and for their expenses, if any, in connection with each property visit and any other service
or activity they performed or engaged in as directors; but nothing herein contained shall be construed to preclude any directors
from serving the Corporation in any other capacity and receiving compensation therefor.

 

    	 

    	 

    

 

Section 13. LOSS
OF DEPOSITS. No director shall be liable for any loss which may occur by reason of the failure of the bank, trust company,
savings and loan association, or other institution with whom moneys or stock have been deposited.

 

Section 14. SURETY
BONDS. Unless required by law, no director shall be obligated to give any bond or surety or other security for the performance
of any of his or her duties.

 

Section 15. RELIANCE.
Each director and officer of the Corporation shall, in the performance of his or her duties with respect to the Corporation, be
entitled to rely on any information, opinion, report or statement, including any financial statement or other financial data, prepared
or presented by an officer or employee of the Corporation whom the director or officer reasonably believes to be reliable and competent
in the matters presented, by a lawyer, certified public accountant or other person, as to a matter which the director or officer
reasonably believes to be within the person’s professional or expert competence, or, with respect to a director, by a committee
of the Board of Directors on which the director does not serve, as to a matter within its designated authority, if the director
reasonably believes the committee to merit confidence.

 

Section 16. CERTAIN
RIGHTS OF DIRECTORS, OFFICERS, EMPLOYEES AND AGENTS. The directors shall have no responsibility to devote their full time to
the affairs of the Corporation. Any director, officer, employee or agent of the Corporation, in his or her personal capacity or
in a capacity as an affiliate, employee or agent of any other person, or otherwise, may have business interests and engage in business
activities similar to, in addition to or in competition with those of or relating to the Corporation.

 

Section 17. RATIFICATION.
The Board of Directors or the stockholders may ratify and make binding on the Corporation any action or inaction by the Corporation
or its officers to the extent that the Board of Directors or the stockholders could have originally authorized the matter. Moreover,
any action or inaction questioned in any stockholders’ derivative proceeding or any other proceeding on the ground of lack
of authority, defective or irregular execution, adverse interest of a director, officer or stockholder, non-disclosure, miscomputation,
the application of improper principles or practices of accounting, or otherwise, may be ratified, before or after judgment, by
the Board of Directors or by the stockholders, and if so ratified, shall have the same force and effect as if the questioned action
or inaction had been originally duly authorized, and such ratification shall be binding upon the Corporation and its stockholders
and shall constitute a bar to any claim or execution of any judgment in respect of such questioned action or inaction.

 

Section 18. EMERGENCY
PROVISIONS. Notwithstanding any other provision in the Charter or these Bylaws, this Section 18 shall apply during the
existence of any catastrophe, or other similar emergency condition, as a result of which a quorum of the Board of Directors under
Article III of these Bylaws cannot readily be obtained (an “Emergency”). During any Emergency, unless otherwise provided
by the Board of Directors, (a) a meeting of the Board of Directors or a committee thereof may be called by any director or
officer by any means feasible under the circumstances; (b) notice of any meeting of the Board of Directors during such an
Emergency may be given less than 24 hours prior to the meeting to as many directors and by such means as may be feasible at the
time, including publication, television, radio or e-mail, and (c) the number of directors necessary to constitute a quorum
shall be one-third of the entire Board of Directors.

 

    	 

    	 

    

 

ARTICLE IV

COMMITTEES

 

Section 1. NUMBER,
TENURE AND QUALIFICATIONS. The Board of Directors may appoint from among its members committees, composed of one or more directors,
to serve at the pleasure of the Board of Directors. A majority of the members of each committee shall be Independent Directors.

 

Section 2. POWERS.
The Board of Directors may delegate to committees appointed under Section 1 of this Article IV any of the powers of the
Board of Directors, except as prohibited by law.

 

Section 3. MEETINGS.
Notice of committee meetings shall be given in the same manner as notice for special meetings of the Board of Directors. A majority
of the members of the committee shall constitute a quorum for the transaction of business at any meeting of the committee. The
act of a majority of the committee members present at a meeting shall be the act of such committee. The Board of Directors may
designate a chairman of any committee, and such chairman or, in the absence of a chairman, any two members of any committee (if
there are at least two members of the committee) may fix the time and place of its meeting unless the Board of Directors shall
otherwise provide. In the absence of any member of any such committee, the members thereof present at any meeting, whether or not
they constitute a quorum, may appoint another director to act in the place of such absent member. Each committee shall keep minutes
of its proceedings.

 

Section 4. TELEPHONE
MEETINGS. Members of a committee of the Board of Directors may participate in a meeting by means of a conference telephone
or other communications equipment if all persons participating in the meeting can hear each other at the same time. Participation
in a meeting by these means shall constitute presence in person at the meeting.

 

Section 5. CONSENT
BY COMMITTEES WITHOUT A MEETING. Any action required or permitted to be taken at any meeting of a committee of the Board of
Directors may be taken without a meeting, if a consent in writing or by electronic transmission to such action is given by each
member of the committee and is filed with the minutes of proceedings of such committee.

 

Section 6. VACANCIES.
Subject to the provisions hereof, the Board of Directors shall have the power at any time to change the membership of any committee,
to fill any vacancy, to designate an alternate member to replace any absent or disqualified member or to dissolve any such committee.

 

ARTICLE V

OFFICERS

 

Section 1. GENERAL
PROVISIONS. The officers of the Corporation shall include a president, a secretary and a treasurer and may include a chairman
of the board, a vice chairman of the board, a chief executive officer, one or more vice presidents, a chief operating officer,
a chief financial officer, one or more assistant secretaries and one or more assistant treasurers. In addition, the Board of Directors
may from time to time elect such other officers with such powers and duties as they shall deem necessary or desirable. The officers
of the Corporation shall be elected annually by the Board of Directors, except that the chief executive officer or president may
from time to time appoint one or more vice presidents, assistant secretaries and assistant treasurers or other officers. Each officer
shall serve until his or her successor is elected and qualifies or until his or her death, or his or her resignation or removal
in the manner hereinafter provided. Any two or more offices except president and vice president may be held by the same person.
Election of an officer or agent shall not of itself create contract rights between the Corporation and such officer or agent.

 

    	 

    	 

    

 

Section 2. REMOVAL
AND RESIGNATION. Any officer or agent of the Corporation may be removed, with or without cause, by the Board of Directors if
in its judgment the best interests of the Corporation would be served thereby, but such removal shall be without prejudice to the
contract rights, if any, of the person so removed. Any officer of the Corporation may resign at any time by giving written notice
of his or her resignation to the Board of Directors, the chairman of the board, the president or the secretary. Any resignation
shall take effect immediately upon its receipt or at such later time specified in the notice of resignation. The acceptance of
a resignation shall not be necessary to make it effective unless otherwise stated in the resignation. Such resignation shall be
without prejudice to the contract rights, if any, of the Corporation.

 

Section 3. VACANCIES.
A vacancy in any office may be filled by the Board of Directors for the balance of the term.

 

Section 4. CHIEF
EXECUTIVE OFFICER. The Board of Directors may designate a chief executive officer. In the absence of such designation, the
chairman of the board shall be the chief executive officer of the Corporation. The chief executive officer shall have general responsibility
for implementation of the policies of the Corporation, as determined by the Board of Directors, and for the management of the business
and affairs of the Corporation. He or she may execute any deed, mortgage, bond, contract or other instrument, except in cases where
the execution thereof shall be expressly delegated by the Board of Directors or by these Bylaws to some other officer or agent
of the Corporation or shall be required by law to be otherwise executed; and in general shall perform all duties incident to the
office of chief executive officer and such other duties as may be prescribed by the Board of Directors from time to time.

 

Section 5. CHIEF
OPERATING OFFICER. The Board of Directors may designate a chief operating officer. The chief operating officer shall have the
responsibilities and duties as determined by the Board of Directors or the chief executive officer.

 

Section 6. CHIEF
FINANCIAL OFFICER. The Board of Directors may designate a chief financial officer. The chief financial officer shall have the
responsibilities and duties as determined by the Board of Directors or the chief executive officer.

 

Section 7. CHAIRMAN
OF THE BOARD. The Board of Directors may designate a chairman of the board. The chairman of the board shall preside over the
meetings of the Board of Directors and, except as provided in Section 5 of Article II of these Bylaws, of the meetings of the stockholders
at which he or she shall be present. The chairman of the board shall, in consultation with the president, establish the agenda
for each meeting of the Board of Directors. The chairman of the board shall perform such other duties as may be assigned to him
or her by the Board of Directors.

 

Section 8. PRESIDENT.
In the absence of a chief executive officer, the president shall in general supervise and control all of the business and affairs
of the Corporation. In the absence of a designation of a chief operating officer by the Board of Directors, the president shall
be the chief operating officer. He or she may execute any deed, mortgage, bond, contract or other instrument, except in cases where
the execution thereof shall be expressly delegated by the Board of Directors or by these Bylaws to some other officer or agent
of the Corporation or shall be required by law to be otherwise executed; and in general shall perform all duties incident to the
office of president and such other duties as may be prescribed by the Board of Directors from time to time.

 

    	 

    	 

    

 

Section 9. VICE
PRESIDENTS. In the absence of the president or in the event of a vacancy in such office, the vice president (or in the event
there be more than one vice president, the vice presidents in the order designated at the time of their election or, in the absence
of any designation, then in the order of their election) shall perform the duties of the president and when so acting shall have
all the powers of and be subject to all the restrictions upon the president; and shall perform such other duties as from time to
time may be assigned to such vice president by the president or by the Board of Directors. The Board of Directors may designate
one or more vice presidents as executive vice president, senior vice president, or as vice president for particular areas of responsibility.

 

Section 10. SECRETARY.
The secretary shall (a) keep the minutes of the proceedings of the stockholders, the Board of Directors and committees of
the Board of Directors in one or more books provided for that purpose; (b) see that all notices are duly given in accordance
with the provisions of these Bylaws or as required by law; (c) be custodian of the corporate records and of the seal of the
Corporation; (d) keep a register of the post office address of each stockholder which shall be furnished to the secretary
by such stockholder; (e) have general charge of the stock transfer books of the Corporation; and (f) in general perform
such other duties as from time to time may be assigned to him or her by the chief executive officer, the president or by the Board
of Directors.

 

Section 11. TREASURER.
The treasurer shall have the custody of the funds and securities of the Corporation and shall keep full and accurate accounts of
receipts and disbursements in books belonging to the Corporation and shall deposit all moneys and other valuable effects in the
name and to the credit of the Corporation in such depositories as may be designated by the Board of Directors. In the absence of
a designation of a chief financial officer by the Board of Directors, the treasurer shall be the chief financial officer of the
Corporation.

 

The treasurer shall
disburse the funds of the Corporation as may be ordered by the Board of Directors, taking proper vouchers for such disbursements,
and shall render to the president and Board of Directors, at the regular meetings of the Board of Directors or whenever it may
so require, an account of all his or her transactions as treasurer and of the financial condition of the Corporation.

 

Section 12. ASSISTANT
SECRETARIES AND ASSISTANT TREASURERS. The assistant secretaries and assistant treasurers, in general, shall perform
such duties as shall be assigned to them by the secretary or treasurer, respectively, or by the president or the Board of Directors.

 

Section 13. COMPENSATION.
The compensation of the officers shall be fixed from time to time by or under the authority of the Board of Directors and no officer
shall be prevented from receiving such compensation by reason of the fact that he or she is also a director.

 

ARTICLE VI

CONTRACTS, LOANS, CHECKS AND DEPOSITS

 

Section 1. CONTRACTS.
The Board of Directors may authorize any officer or agent to enter into any contract or to execute and deliver any instrument in
the name of and on behalf of the Corporation and such authority may be general or confined to specific instances. Any agreement,
deed, mortgage, lease or other document shall be valid and binding upon the Corporation when duly authorized or ratified by action
of the Board of Directors and executed by an authorized person.

 

    	 

    	 

    

 

Section 2. CHECKS
AND DRAFTS. All checks, drafts or other orders for the payment of money, notes or other evidences of indebtedness issued in
the name of the Corporation shall be signed by such officer or agent of the Corporation in such manner as shall from time to time
be determined by the Board of Directors.

 

Section 3. DEPOSITS.
All funds of the Corporation not otherwise employed shall be deposited or invested from time to time to the credit of the Corporation
as the Board of Directors, the chief executive officer, the chief financial officer or any other officer designated by the Board
of Directors may determine.

 

ARTICLE VII

STOCK

 

Section 1. CERTIFICATES.
Unless otherwise provided by the Board of Directors, the Corporation shall not issue stock certificates. In the event that the
Corporation issues Shares represented by certificates, such certificates shall be in such form as prescribed by the Board of Directors
or a duly authorized officer, shall contain the statements and information required by the MGCL and shall be signed by the officers
of the Corporation in the manner permitted by the MGCL. Upon the issuance of uncertificated Shares, to the extent then required
by the MGCL, the Corporation shall provide to the record holders of such Shares a written statement of the information required
by the MGCL to be included on stock certificates. There shall be no differences in the rights and obligations of stockholders based
on whether or not their Shares are represented by certificates. If a class or series of stock is uncertificated, no stockholder
shall be entitled to a certificate or certificates representing any Shares of such class or series of stock held by such stockholder
unless otherwise determined by the Board of Directors and then only upon written request by such stockholder to the secretary of
the Corporation.

 

Section 2. TRANSFERS.
All transfers of Shares shall be made on the books of the Corporation, by the holder of the Shares, in person or by his or her
attorney, in such manner as the Board of Directors or any officer of the Corporation may prescribe and, if such Shares are certificated,
upon surrender of certificates duly endorsed. The issuance of a new certificate upon the transfer of certificated Shares is subject
to the determination of the Board of Directors that such Shares shall no longer be represented by certificates. Upon the transfer
of uncertificated Shares, to the extent then required by the MGCL, the Corporation shall provide to record holders of such Shares
a written statement of the information required by the MGCL to be included on stock certificates.

 

The Corporation shall
be entitled to treat the holder of record of any Share as the holder in fact thereof and, accordingly, shall not be bound to recognize
any equitable or other claim to or interest in such Share or on the part of any other person, whether or not it shall have express
or other notice thereof, except as otherwise provided by the laws of the State of Maryland.

 

Notwithstanding the
foregoing, transfers of Shares of any class or series of stock will be subject in all respects to the Charter and all of the terms
and conditions contained therein.

 

Section 3. REPLACEMENT
CERTIFICATE. Any officer of the Corporation may direct a new certificate or certificates to be issued in place of any certificate
or certificates theretofore issued by the Corporation alleged to have been lost, destroyed, stolen or mutilated, upon the making
of an affidavit of that fact by the person claiming the certificate to be lost, destroyed, stolen or mutilated; provided, however,
if such Shares have ceased to be certificated, no new certificate shall be issued unless requested in writing by such stockholder
and the Board of Directors has determined that such certificates may be issued. Unless otherwise determined by an officer of the
Corporation, the owner of such lost, destroyed, stolen or mutilated certificate or certificates, or his or her legal representative,
shall be required, as a condition precedent to the issuance of a new certificate or certificates, to give the Corporation a bond
in such sums as it may direct as indemnity against any claim that may be made against the Corporation.

 

    	 

    	 

    

 

Section 4. FIXING
OF RECORD DATE. The Board of Directors may set, in advance, a record date for the purpose of determining stockholders entitled
to notice of or to vote at any meeting of stockholders or determining stockholders entitled to receive payment of any dividend
or the allotment of any other rights, or in order to make a determination of stockholders for any other proper purpose. Such date,
in any case, shall not be prior to the close of business on the day the record date is fixed and shall be not more than 90 days
and, in the case of a meeting of stockholders, not less than ten days, before the date on which the meeting or particular action
requiring such determination of stockholders of record is to be held or taken.

 

When a determination
of stockholders entitled to vote at any meeting of stockholders has been made as provided in this section, such determination shall
apply to any adjournment or postponement thereof, except when the meeting is adjourned or postponed to a date more than 120 days
after the record date fixed for the original meeting, in which case a new record date shall be determined as set forth herein.

 

Section 5. STOCK
LEDGER. The Corporation shall maintain at its principal office or at the office of its counsel, accountants or transfer agent,
an original or duplicate stock ledger containing the name and address of each stockholder and the number of Shares of each class
held by such stockholder.

 

Section 6. FRACTIONAL
STOCK; ISSUANCE OF UNITS. The Board of Directors may issue fractional stock or provide for the issuance of scrip, all on such
terms and under such conditions as they may determine. Notwithstanding any other provision of the Charter or these Bylaws, the
Board of Directors may issue units consisting of different securities of the Corporation. Any security issued in a unit shall have
the same characteristics as any identical securities issued by the Corporation, except that the Board of Directors may provide
that for a specified period securities of the Corporation issued in such unit may be transferred on the books of the Corporation
only in such unit.

 

ARTICLE VIII

ACCOUNTING YEAR

 

The
Board of Directors shall have the power, from time to time, to fix the fiscal year of the Corporation by a duly adopted resolution.

 

ARTICLE IX

DISTRIBUTIONS

 

Section 1. AUTHORIZATION.
Dividends and other distributions upon the stock of the Corporation may be authorized by the Board of Directors and declared by
the Corporation, subject to the provisions of law and the Charter. Dividends and other distributions may be paid in cash, property
or stock of the Corporation, subject to the provisions of law and the Charter.

 

Section 2. CONTINGENCIES.
Before payment of any dividends or other distributions, there may be set aside out of any assets of the Corporation available for
dividends or other distributions such sum or sums as the Board of Directors may from time to time, in its absolute discretion,
think proper as a reserve fund for contingencies, for equalizing dividends, for repairing or maintaining any property of the Corporation
or for such other purpose as the Board of Directors shall determine, and the Board of Directors may modify or abolish any such
reserve.

 

    	 

    	 

    

 

ARTICLE X

INVESTMENT POLICY

 

Subject to the provisions
of the Charter, the Board of Directors may from time to time adopt, amend, revise or terminate any policy or policies with respect
to investments by the Corporation as it shall deem appropriate in its sole discretion.

 

ARTICLE XI

SEAL

 

Section 1. SEAL.
The Board of Directors may authorize the adoption of a seal by the Corporation. The seal shall contain the name of the Corporation
and the year of its incorporation and the words “Incorporated Maryland.” The Board of Directors may authorize one or
more duplicate seals and provide for the custody thereof.

 

Section 2. AFFIXING
SEAL. Whenever the Corporation is permitted or required to affix its seal to a document, it shall be sufficient to meet the
requirements of any law, rule or regulation relating to a seal to place the word “(SEAL)” adjacent to the signature
of the person authorized to execute the document on behalf of the Corporation.

 

ARTICLE XII

WAIVER OF NOTICE

 

Whenever any notice
is required to be given pursuant to the Charter or these Bylaws or pursuant to applicable law, a waiver thereof in writing, signed
by the person or persons entitled to such notice, whether before or after the time stated therein, shall be deemed equivalent to
the giving of such notice. Neither the business to be transacted at nor the purpose of any meeting need be set forth in the waiver
of notice, unless specifically required by statute. The attendance of any person at any meeting shall constitute a waiver of notice
of such meeting, except where such person attends a meeting for the express purpose of objecting to the transaction of any business
on the ground that the meeting is not lawfully called or convened.

 

ARTICLE XIII

AMENDMENT OF BYLAWS

 

The Board of Directors
shall have the exclusive power to adopt, alter or repeal any provision of these Bylaws and to make new Bylaws.

 

Adopted January 2014 

 

    	 

    	 

    

 

EXHIBIT B

 

Settlement Press Release

 

    	 

    	 

    

 

Strategic Realty Trust, Inc.

 

	Press Release	Contact:
	 	Andrew Batinovich
	 	(650) 343-9300
	 	andrew.batinovich@glenborough.com

 

Strategic Realty Trust and SRT Shareholders Coalition Reach
Agreement to End Current Proxy Contest; Todd Spitzer to be Appointed Chairman of the Board; Coalition Supports Andrew Batinovich
as Director; Organizational Documents Amended to Strengthen Shareholder Rights; and “Standstill” Reached Regarding
Upcoming Elections

 

Glenborough to Remain as Advisor and Become Largest Shareholder
with Purchase of TNP Shares

 

San Mateo, CA, January 23, 2014: Strategic Realty Trust (“SRT”
or the “Company”) announced today that it and the SRT Shareholders Coalition (“Coalition”) have signed
an agreement to end their proxy contest.

 

The agreement calls for:

 

		·	The Coalition to support the reelection of Andrew Batinovich, the
Company’s CEO, to the Board of Directors at the Company’s upcoming February 7th shareholders’ meeting
by voting for Mr. Batinovich at the shareholders’ meeting.

 

		·	The Board of Directors to appoint Todd Spitzer to the Board to take
the seat of retiring Chairman, Jack Maier, who will be named Chairman Emeritus.

 

		·	Mr. Spitzer will be elected Chairman of the Board and Co-Chair of
the Audit Committee.

 

		·	The Company has agreed to support the nomination and reelection of
Mr. Spitzer at the end of his term.

 

		·	Mr. Batinovich will resign as CFO of the Company and the Board will
appoint Ms. Terri Garnick, currently SVP of Glenborough, LLC, as CFO. Mr. Batinovich shall remain as the Company’s President,
CEO and Director.

 

		·	An affiliate of Glenborough will buy out all 133,333 shares in SRT
owned by Thompson National Properties and affiliates, the Company’s former advisor and property manager, for $8 per share.

 

		·	Anthony Thompson shall resign as a Director and the Special Committee
of the Board shall be dissolved.

 

		·	The members of the Coalition, including Anthony Thompson and Ron King,
have signed standstill agreements that restrict their participation in proxy contests until June 30, 2016.

 

    	 

    	 

    

 

In addition the agreement calls for certain changes to the Company’s
organizational documents that will reduce ongoing costs and provide for greater shareholder rights, including the following:

 

		·	SRT’s Board of Directors has agreed to opt out of certain provisions
of the Maryland Unsolicited Takeover Act (“MUTA”) such that 

 

		o	directors may be removed by the vote of a majority of the shares entitled to vote, which is the lowest vote threshold permitted
under Maryland law;

 

		o	the number of directors may be fixed by the shareholders; and

 

		o	special meetings of shareholders may be called by fewer than a majority of the shares entitled to be cast.

 

		·	Limiting the Director compensation for 2014 and 2015 to $40,000 per
year plus any Committee Chair fees.

 

		·	The Company has agreed to seek shareholder approval to amend its charter
so that:

 

		o	a quorum will exist, and a shareholder special meeting shall be called, with at least one-third of all the votes entitled to
be cast;

 

		o	directors can be removed without cause; and

 

		o	vacancies on the Board of Directors may be filled by shareholders.

 

		·	Directors may change the size of the Board only by unanimous vote.

 

Ron King, CEO of Centaurus Financial and a leader of the Coalition,
said “I wish to personally thank Andrew Batinovich, Anthony Thompson, Jack Maier, Jeffrey Rodgers, Phil Levin and Todd Spitzer
for coming together on behalf of the shareholders to forge an agreement that we hope will pave the way for a brighter future for
the hard-working, everyday folks who are the owners of this Trust. I also want to thank the other members of the Coalition who
donated their time and all of the registered representatives and broker dealers who expended countless hours meeting with clients
and keeping them informed along the way so that we could achieve something positive for shareholders. By working together, we overcame
long odds and I truly believe that SRT is better off today than when we started. Going forward, we have full confidence that Todd
Spitzer will provide the oversight that shareholders expect and we intend to provide Mr. Batinovich and his team with the help
that Centaurus can provide so that this REIT can succeed.”

 

Andrew Batinovich, the Company’s CEO, commented “It
has been a true pleasure serving with Jack on the Board of SRT. Under his leadership as Chairman, we were given the support needed
to accomplish a number of challenging objectives, first among them, to restore the Company to a position of financial stability
and allowing the Company to focus on its objectives of building shareholder value and paying distributions to shareholders. I look
forward to working with Todd, as the new Chairman, to continue to move SRT forward.”

 

    	 

    	 

    

 

Jack Maier said “I am very pleased to have concluded my
role as Chairman of SRT and believe that I am leaving the Trust on solid footing. Over the last year we have worked tirelessly
to return SRT to a position of financial stability. The REIT is now in its strongest financial position since I joined the board
in 2012. I wish to thank my fellow board members and the fine people at Glenborough for their good work and dedication to SRT and
its shareholders.”

 

In response to the agreement, Todd Spitzer commented “Over
the last few months, I’ve been out meeting with shareholders, listening to their concerns, advocating for change and now
I’m excited about the opportunity to serve them. As Chairman, I will work diligently with members of this Board and Glenborough
and will seek input from all available resources to ensure that this Trust is working on behalf of shareholders.”

 

The Company’s new CFO, Terri L. Garnick, currently serves
a Senior Vice President for Glenborough, LLC where she oversees all property management accounting, financial statement preparation,
SEC reporting, cash management, internal audit, external audit coordination, and tax returns for the company and its investment
affiliates, as well as IT and HR functions. Ms. Garnick and Glenborough have been providing accounting services to SRT since May
2013. Before joining a Glenborough affiliate in 1989, Ms. Garnick was Controller at August Financial Corporation, a real estate
investment and management company and a Senior Accountant at Deloitte, Haskins & Sells. Ms. Garnick earned a CPA designation
and has a BS in Accounting from San Diego State University.

 

The Coalition has agreed to terminate its proxy solicitation
for the 2013 annual meeting and will not be voting any of the Green proxy cards.

 

Strategic Realty Trust, Inc. is a non-traded real estate
investment trust which owns a portfolio of primarily grocery anchored shopping centers. The company's portfolio consists of 16
shopping centers containing approximately 1.6 million square feet that are anchored by such grocers as Publix, Kroger and Wal-Mart.
For more information you may visit the company’s website at www.srtreit.com.

 

FORWARD LOOKING STATEMENTS 

This Press Release contains
certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E
of the Securities Exchange Act of 1934, as amended, which are identified by the use of the words “believe,” “expect,”
“anticipate,” “estimate,” “will,” “contemplate,” “would” and similar
expressions that contemplate future events. Such forward-looking statements are based on management’s reasonable current
assumptions and expectations. Numerous important factors, risks and uncertainties, including, but not limited to, those contained
in our documents and reports filed with the Securities and Exchange Commission (the “SEC”), affect our operating results
and could cause our actual results, levels of activity, performance or achievement to differ materially from the results expressed
or implied by these or any other forward-looking statements made by us or on our behalf. There can be no assurance that future
results will meet expectations. You should carefully review the cautionary statements described in the documents and reports we
file from time to time with the SEC, specifically our Annual Reports on Form 10-K, our Quarterly Reports on Form 10-Q and our Current
Reports on Form 8-K. Readers are cautioned not to place undue reliance on any forward-looking statements contained in this Press
Release, which reflect management’s opinions only as of the date hereof. Except as required by law, we undertake no obligation
to revise or publicly release the results of any revision to any forward-looking statements.

 

    	 

    	 

    

 

EXHIBIT C

 

Stock Purchase Agreement 

 

    	 

    	 

    

 

PARTNERSHIP
UNIT AND SHARE PURCHASE Agreement

 

This Partnership Unit
and Share Purchase Agreement (this “Agreement”) is made as of January 22, 2014, by and among TNP Strategic Retail
Advisor, LLC, a Delaware limited liability company (“TNP Advisor”), Thompson National Properties, LLC, a Delaware
limited liability company (“Thompson LLC”), Sharon Thompson, as Trustee of the Sharon D. & Anthony Thompson
Living Trust, Sole & Sep Property of Sharon Thompson (“Mrs. Thompson” and together with TNP Advisor and
Thompson LLC, the “Thompson Parties”), Glenborough Property Partners, LLC, a Delaware limited liability company
(“Assignee”), and solely for the purpose Section 7 hereof, Strategic Realty Trust, Inc., a Maryland corporation
(the “Company”), solely in its capacity as the General Partner of Strategic Realty Operating Partnership, L.P.,
a Delaware limited partnership (the “OP”). The Thompson Parties, Assignee and the Company are collectively referred
to herein as the “Parties”.

 

WHEREAS, TNP Advisor
is the owner of 100 units of limited partnership interest of the OP (the “Transferred Units”), Thompson LLC
is the owner of 22,222.22 shares of common stock, par value $0.01 per share, of the Company and Mrs. Thompson is the owner of 111,111.11
shares of the common stock, par value $0.01 per share, of the Company (the “Transferred Shares”);

 

WHEREAS, the Transferred
Units are subject to the rights and restrictions set forth in that certain Limited Partnership Agreement of the OP, dated as of
December 31, 2008, as amended (the “Partnership Agreement”);

 

WHEREAS, pursuant to
the Partnership Agreement, the admission of Assignee as a Substituted
Limited Partner of the OP is conditioned upon the consent of the Company,
in its capacity as general partner of the OP; and

 

WHEREAS, the Thompson
Parties desire to sell, and Assignee desires to purchase the Transferred Units and the Transferred Shares on the terms and subject
to the conditions set forth herein.

 

NOW THEREFORE, in consideration
of the promises and the mutual agreements and covenants hereinafter set forth, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

 

1.           Sale
of Transferred Units and Transferred Shares.

 

		a.	At the Closing, TNP Advisor hereby irrevocably sells, conveys, assigns and transfers to Assignee:
(i) all of TNP Advisor’s right, title and interest in the Transferred Units; and (ii) all other right, title and interest
of TNP Advisor with respect to the Transferred Units under the Partnership Agreement, including, without limitation, all rights
to capital, profits, losses thereunder and all distributions from and after the date of this Agreement (the “Unit Sale”).
At the Closing, Assignee hereby (i) purchases the Transferred Units for $8.00 per share, for an aggregate cash purchase price of
$800.00 (the “Unit Consideration”), (ii) accepts the assignment of the Transferred Units, and (iii) assumes
all the liabilities and obligations of TNP Advisor under the Partnership Agreement with respect to the Transferred Units arising
on and after the Closing.

 

    	 

    	 

    

 

		b.	At the Closing, Thompson LLC hereby irrevocably sells, conveys, assigns and transfers to Assignee
at the Closing all of its right, title and interest in 22,222.22 of the Transferred Shares (the “TNP Share Sale”).
At the Closing, Mrs. Thompson hereby irrevocably sells, conveys, assigns and transfers to Assignee all of her right, title and
interest in 111,111.11 of the Transferred Shares (together with the TNP Share Sale, the “Share Sale”). The Share
Sale and the Unit Sale collectively are referred to as the “Sale.” At the Closing, Assignee hereby (i) purchases
the Transferred Shares for $8.00 per share, for an aggregate cash purchase price of $1,066,666.67 (together with the Unit Consideration,
the “Consideration”) and (ii) accepts the assignment of the Transferred Shares.

 

2.           Closing.

 

		a.	The closing of the Sale (the “Closing”) and the payment of the Consideration
shall occur on the date hereof.

 

		b.	At the Closing, the Thompson Parties shall deliver to Assignee duly executed stock powers representing
the Transferred Units and Transferred Shares.

 

		c.	At the Closing, Assignee shall deliver, or cause to be delivered, to the Thompson Parties the Consideration
by wire transfer to one or more bank accounts designated by the Thompson Parties.

 

3.           Cooperation.
If at any time Assignee shall consider or be advised that any further assignment, conveyance or assurance is necessary or advisable
to vest, perfect or confirm of record in Assignee the title to the Transferred Units or Transferred Shares, TNP Advisor and the
other Thompson Parties shall execute and deliver any and all proper deeds, assignments, and assurances and do all things necessary
or proper to vest, perfect or convey title in Assignee. Each Party agrees to take or cause to be taken such further actions, and
to execute, deliver and file or cause to be executed, delivered and filed such further documents and instruments, and to obtain
such consents, as may be reasonably required or requested by the other party in order to effectuate the terms and conditions of
this Agreement.

 

4.           Representations
of the Thompson Parties. TNP Advisor, Thompson LLC and Mrs. Thompson hereby, severally and not jointly, represent, warrant
and covenant (only with respect to representations regarding themselves) to Assignee as follows:

 

    	2

    	 

    

 

		a.	TNP Advisor is a limited liability company validly existing under the laws of the State of Delaware
and has all requisite power, authority and legal capacity to execute and deliver this Agreement and to consummate the transactions
contemplated hereby. Thompson LLC is a limited liability company validly existing under the laws of the State of Delaware and has
all requisite power, authority and legal capacity to execute and deliver this Agreement and to consummate the transactions contemplated
hereby. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly
authorized by all required individual action on the part of such Thompson Party. This Agreement has been duly and validly executed
and delivered by such Thompson Party, and (assuming the due authorization, execution and delivery by the other parties hereto)
this Agreement constitutes the legal, valid and binding obligation of such Thompson Party, enforceable against such Thompson Party
in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium and similar laws affecting
creditors’ rights and remedies generally, and subject, as to enforceability, to general principles of equity, including principles
of commercial reasonableness, good faith and fair dealing (regardless of whether enforcement is sought in a proceeding at law or
in equity).

 

		b.	Neither (i) the execution and delivery by such Thompson Party of this Agreement, (ii) the consummation
of the transactions contemplated hereby, nor (iii) compliance by such Thompson Party with any of the provisions hereof will conflict
with, result in any violation of or default (with or without notice or lapse of time, or both) under, or give rise to a right of
termination or cancellation under, any provision of (w) its Organizational Documents; (x) any contract or Permit to which
such Thompson Party is a party or by which any of the properties or assets of such Thompson Party is bound; (y) any Order of any
Governmental Body applicable to such Thompson Party or by which any of the properties or assets of such Thompson Party are bound;
or (z) any applicable law.

 

		c.	(i) TNP Advisor is the sole record and beneficial owner of the Transferred Units, (ii) Thompson
LLC is the record and beneficial owner of 22,222.22 Transferred Shares, (iii) Mrs. Thompson is the record and beneficial holder
of 111,111.11 Transferred Shares and (iv) Anthony W. Thompson may be deemed to be the beneficial owner of the Transferred
Shares held by Thompson LLC because of his ownership of Thompson LLC and may be deemed to be the beneficial owner of the Transferred
Shares held by Mrs. Thompson because Sharon Thompson is his spouse. Subject to compliance with applicable securities laws and the
provisions of the Partnership Agreement (including as set forth in Section 6 and Section 7), such Thompson Party
has the individual power and authority to sell, transfer, convey, assign and deliver its Transferred Units and/or Transferred Shares
as provided in this Agreement, and such delivery will convey to Assignee good and marketable title thereto, free and clear of any
lien, encumbrance, pledge, mortgage, deed of trust, security interest, claim, lease, charge, option, right of first refusal, easement,
servitude or transfer restriction. Except as set forth in this Section 4(c), such Thompson Party and its affiliates have
no beneficial or record ownership of any equity interests in the OP or the Company.

 

    	3

    	 

    

 

		d.	There are no Legal Proceedings pending or, to the knowledge of such Thompson Party, threatened
that are reasonably likely to prohibit or restrain the ability of such Thompson Party to enter into this Agreement or consummate
the transactions contemplated hereby.

 

		e.	No consent, waiver, approval, Order, Permit or authorization of, declaration or filing with, or
notification to, any person, entity or Governmental Body is required on the part of such Thompson Party in connection with the
execution and delivery of this Agreement, or the compliance by such Thompson Party with any of the provisions hereof, or the consummation
of the transactions contemplated hereby.

 

5.           Representations
of Assignee. Assignee represents and warrants to the Thompson Parties as follows:

 

		a.	Assignee is a limited liability company validly existing under the laws of the State of Delaware
and has all requisite power, authority and legal capacity to execute and deliver this Agreement and to consummate the transactions
contemplated hereby. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby
have been duly authorized by all required limited liability company action on the part of Assignee. This Agreement has been duly
and validly executed and delivered by Assignee, and (assuming the due authorization, execution and delivery by the other parties
hereto) this Agreement constitutes the legal, valid and binding obligation of Assignee, enforceable against Assignee in accordance
with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium and similar laws affecting creditors’
rights and remedies generally, and subject, as to enforceability, to general principles of equity, including principles of commercial
reasonableness, good faith and fair dealing (regardless of whether enforcement is sought in a proceeding at law or in equity).

 

		b.	Neither the execution and delivery by Assignee of this Agreement, the consummation of the transactions
contemplated hereby, nor compliance by Assignee with any of the provisions hereof will conflict with, or result in any violation
of or default (with or without notice or lapse of time, or both) under, or give rise to a right of termination or cancellation
under, any provision of (i) the Organizational Documents of Assignee, (ii) any contract or Permit to which Assignee is a party
or by which any of the properties or assets of Assignee are bound; (iii) any Order of any Governmental Body applicable to Assignee
or by which any of the properties or assets of Assignee are bound; or (iv) any applicable law.

 

    	4

    	 

    

 

		c.	There are no Legal Proceedings pending or, to the knowledge of Assignee, threatened that are reasonably
likely to prohibit or restrain the ability of Assignee to enter into this Agreement or consummate the transactions contemplated
hereby.

 

		d.	No consent, waiver, approval, Order, Permit or authorization of, declaration or filing with, or
notification to, any person, entity or Governmental Body is required on the part of Assignee in connection with the execution and
delivery of this Agreement, or the compliance by Assignee with any of the provisions hereof, or the consummation of the transactions
contemplated hereby.

 

6.           Additional
Covenants and Agreements

 

		a.	Assignee hereby acknowledges and agrees that Assignee will be subject to all of the terms and conditions
of the Partnership Agreement with respect to its ownership of the Transferred Units, including, without limitation, Section 9.2
of the Partnership Agreement, which provides that Assignee may not substitute a transferee as a Limited Partner without the consent
of the General Partner, which consent may be granted or withheld in its sole and absolute discretion.

 

		b.	In connection with its admission as a Substituted Limited Partner of the OP with beneficial ownership
of the Transferred Units as of the Closing, Assignee shall sign and deliver to the OP a counterpart signature page to the Partnership
Agreement in the form attached hereto as Exhibit A.

 

		c.	As of the Closing, Assignee shall irrevocably appoint the General Partner of the OP as its true
and lawful attorney-in-fact to exercise any of the powers set forth in Section 8.2 of the Partnership Agreement.

 

		d.	Assignee hereby acknowledges and agrees that, following the Closing, it will not sell, assign or
otherwise transfer the Transferred Units or any fraction thereof, whether voluntarily or by operation of law or at judicial sale
or otherwise, to any person or entity who does not make the representations and warranties to the General Partner set forth in
Section 9.1(a) of the Partnership Agreement and similarly agree not to sell, assign or transfer such Transferred Units or
fraction thereof to any Person who does not similarly represent, warrant and agree.

 

7.           Company’s
Consent. The Company, in its capacity as General Partner of the OP, hereby consents to the Sale and the admission, as of the
Closing, of Assignee as a Substituted Limited Partner of the OP. At the Closing, the Company shall record Assignee as the owner
of record of the Transferred Units on the books and records of the OP. Assignee and the Company agree that, after the Closing,
none of TNP Advisor, the Company or the OP shall have any further liabilities or obligations under the Partnership Agreement.

 

    	5

    	 

    

 

8.           Miscellaneous.

 

		a.	This Agreement, and all claims or causes of action (whether based on contract, tort or any other
theory) that may be based upon, arise out of or be related to this Agreement or the negotiation, execution or performance of this
Agreement, shall be governed by and construed in accordance with the laws of the State of Delaware applicable to contracts negotiated,
made and performed in such state without giving effect to the choice of law principles of such state that would require or permit
the application of the laws of another jurisdiction.

 

		b.	The parties to this Agreement hereby consent to the sole and exclusive jurisdiction of the federal
or state courts located in Los Angeles, California for any action, suit, or proceeding arising out of or relating to this Agreement
(including but not limited to the negotiation, validity, performance, breach or termination thereof). The parties to this Agreement
further irrevocably and unconditionally waive any objection to the laying of venue of any such action, suit or proceeding in the
federal or state courts located in Los Angeles, CA and hereby further irrevocably and unconditionally waive and agree not to plead
or claim in such court that any such action, suit or proceeding brought in such court has been brought in an inconvenient forum.
Each of the parties agrees that his, her or its submission to jurisdiction and his, her or its consent to service of process in
the manner described above are made to the benefit of the other parties.

 

		c.	EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT
MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUIT, ACTION OR OTHER PROCEEDING ARISING OUT OF THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY. EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE,
THAT SUCH PARTY WOULD NOT, IN THE EVENT OF ANY ACTION, SUIT OR PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES
THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT, BY, AMONG OTHER THINGS, THE MUTUAL WAIVER
AND CERTIFICATIONS IN THIS SECTION 8(c).

 

    	6

    	 

    

 

		d.	The parties agree that irreparable damage would occur if any of the provisions of this Agreement
were not performed in accordance with their specific terms or were otherwise breached, and that monetary damages, even if available,
would not be an adequate remedy therefor. It is accordingly agreed that any party to this Agreement shall be entitled to seek an
injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement
in any federal or state court located in Los Angeles, CA and each party hereto hereby waives any requirement for the securing or
posting of any bond in connection with such remedy, this being in addition to any other remedy to which such party is entitled
at law or in equity.

 

		e.	No provision of this Agreement may be amended or modified except in a written document signed by
the party against which enforcement is sought.

 

		f.	Neither this Agreement nor any of the rights, interests or obligations under this Agreement shall
be assigned or delegated, in whole or in part, by operation of law or otherwise by any of the parties hereto without the prior
written consent of the other parties; provided, that Assignee shall be permitted to assign the right to acquire the Transferred
Units or Transferred Shares pursuant to Section 1 to an affiliate of Assignee without the prior written consent of any other party
hereto; provided, further, that no such assignment shall relieve Assignee of any of its obligations hereunder. This Agreement will
be binding upon, inure to the benefit of, and be enforceable by, Assignee and the Thompson Parties and their respective successors
and assigns and is made solely and specifically for their benefit. No other person (including, for the avoidance of doubt, the
Company and the OP) shall have any rights, interest or claims hereunder or be entitled to any benefits under or on account of this
Agreement as a third-party beneficiary or otherwise.

 

		g.	No failure or delay by any party hereto to exercise any right, power or privilege hereunder shall
operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or
the exercise of any other right, power or privilege. Any agreement on the part of a party hereto to any extension or waiver with
respect to any of the terms of this Agreement shall be valid only if set forth in an instrument in writing signed on behalf of
such party. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by
law.

 

		h.	This Agreement and the Settlement Agreement, dated January 22, 2014, among the Company, Assignee
and the Coalition (as defined therein) constitutes the entire agreement and supersedes all prior agreements and understandings,
both written and oral, between the parties hereto with respect to the subject matter of this Agreement and is not intended to confer
upon any person other than the parties hereto any rights or remedies.

 

    	7

    	 

    

 

		i.	This Agreement may be executed in any number of counterparts, all of which shall be considered
one and the same agreement and shall become effective when counterparts have been signed by each of the parties and delivered to
the other party (including via facsimile or other electronic transmission), it being understood that each party need not sign the
same counterpart.

 

		j.	If any provision of this Agreement shall be declared illegal, invalid, or unenforceable in any
jurisdiction, then such provision shall be deemed to be severable from this Agreement (to the extent permitted by law) and in any
event, such illegality, invalidity or unenforceability shall not affect the remainder hereof.

 

		k.	The parties agree that the terms and language of this Agreement are the result of negotiations
between the parties and their respective advisors and, as a result, there shall be no presumption that any ambiguities in this
Agreement shall be resolved against any party. Any controversy over construction of this Agreement shall be decided without regard
to events of authorship or negotiation.

 

		l.	The representations and warranties and other agreements of the parties hereunder shall survive
the Closing until the expiration of the applicable statute of limitations.

 

		m.	Capitalized terms used but not otherwise defined herein shall have the meanings set forth in the
Partnership Agreement unless the context requires otherwise.

 

		n.	Each party shall bear its own expenses incurred or to be incurred in connection with the negotiation
and execution of this Agreement and each other agreement, document and instrument contemplated by this Agreement and the consummation
of the Sale.

 

9.           Notices.
All notices, consents, requests, instructions, approvals and other communications provided for herein and all legal process in
regard hereto shall be in writing and shall be deemed validly given, made or served, when actually received during normal business
hours at the address specified in this subsection:

 

If to TNP Advisor, Thompson LLC
or Mrs. Thompson:

 

c/o Thompson
National Properties, LLC

3151 Airway
Ave, Suite G-3

Costa Mesa,
CA 92626

 

    	8

    	 

    

 

with a copy
to:

 

Bingham McCutchen
LLP

355 S. Grand
Avenue, Suite 4400

Los Angeles,
CA

Attention:
David K. Robbins and Janice A. Liu

 

If to Assignee:

 

Glenborough
Property Partners, LLC

400 S. El
Camino Real, Suite 1100

San Mateo,
Ca 94402

 

If to the Company:

 

Strategic
Realty Trust, Inc.

400 S. El
Camino Real, Suite 1100

San Mateo,
Ca 94402

 

with a copy
to:

 

DLA Piper
LLP (US)

4141 Parklake
Ave, Suite 300

Raleigh,
NC 27612

Attention:
Robert Bergdolt

 

10.          Definitions.
For purposes of this Agreement, the following terms shall have the meanings specified in this Section 10:

 

“Governmental
Body” means any government or governmental or regulatory body thereof, or political subdivision thereof, whether federal,
state, local or foreign, or any department, agency, instrumentality or authority thereof, or any court.

 

“Legal
Proceeding” means any judicial, administrative or arbitral action, investigation, suit or proceeding (public or private)
by or before a Governmental Body.

 

“Order”
means any order, injunction, judgment, decree, ruling, writ, assessment or arbitration award of a Governmental Body.

 

“Organizational
Documents” means (i) in the case of a corporation, its charter and bylaws; (ii) in the case of a limited or
general partnership, its partnership certificate, certificate of formation or similar organizational document and its partnership
agreement; (iii) in the case of a limited liability company, its articles of organization, certificate of formation or similar
organizational documents and its operating agreement, limited liability company agreement, membership agreement or other similar
agreement; (iv) in the case of a trust, its certificate of trust, certificate of formation or similar organizational document
and its trust agreement or other similar agreement; and (v) in the case of any other entity, the organizational and governing
documents of such entity.

 

    	9

    	 

    

 

“Permit”
means any approval, authorization, consent, license, permit or certificate of a Governmental Body.

 

[REMAINDER OF THE PAGE INTENTIONALLY LEFT
BLANK] 

 

    	10

    	 

    

 

IN WITNESS WHEREOF,
the undersigned have caused this Agreement to be executed and delivered as of the date first written above.

 

	 	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
	 	 
	 	Thompson National Properties, LLC
	 	 
	 	By:	/s/ Anthony W. Thompson
	 	Name: Anthony W. Thompson
	 	Title: Chief Executive Officer
	 	 
	 	/s/ Sharon D. Thompson
	 	Sharon D. Thompson, as Trustee of the Sharon D. & Anthony Thompson Living Trust, Sole and Separate Property of Sharon Thompson.
	 	 
	 	Glenborough Property Partners, LLC
	 	A Delaware limited liability company
	 	 
	 	By:	/s/ Andrew Batinovich
	 	Name: Andrew Batinovich
	 	Title:  Chief Executive Officer

 

[Signature Page to Partnership Unit and
Share Transfer Agreement]

 

    	 

    	 

    

 

	 	Solely for the purposes of Section 7 hereof:
	 	 
	 	STRATEGIC REALTY Trust, inc.
	 	 
	 	By:	/s/ Andrew Batinovich
	 	Name:  Andrew Batinovich
	 	Title:  Chief Executive Officer

 

[Signature Page to Partnership Unit and
Share Transfer Agreement] 

 

    	 

    	 

    

 

EXHIBIT A

 

FORM OF LIMITED PARTNER SIGNATURE PAGE

 

Glenborough Property Partners, LLC, desiring
to become one of the within named Limited Partners of Strategic Realty Operating Partnership, L.P. (f/k/a TNP Strategic Retail
Operating Partnership, L.P.), hereby becomes a party to the Limited Partnership Agreement of Strategic Realty Operating Partnership,
L.P., as amended through the date hereof (the “Partnership Agreement”). Glenborough Property Partners, LLC agrees
that this signature page may be attached to any counterpart of the Partnership Agreement.

 

	 	Signature Line for Limited Partner:
	 	 
	 	Glenborough Property Partners, LLC 
	 	 
	 	By:	/s/ Andrew Batinovich
	 	Name:  Andrew Batinovich
	 	Title:  Chief Executive Officer
	 	 
	 	Address of Limited Partner:
	 	 
	 	400 S. El Camino Real, Suite 1100
	 	 
	 	San Mateo, Ca 94402

 

[Signature Page to Partnership Unit and
Share Transfer Agreement]Form of Voting Agreement

 

This Voting
Agreement (this “Agreement”), dated as of January 28, 2014, is between the undersigned shareholder
(“Shareholder”) of LCY Chemical Corp., a corporation organized under the laws of the Republic of China
(the “Company”), and Kraton Performance Polymers, Inc., a Delaware corporation
(“Kraton”). This Agreement refers to each of Shareholder and Kraton as a “Party” and
together as the “Parties.” Capitalized terms used but not otherwise defined in this Agreement have the
meanings given to them in the Combination Agreement (as defined in the Recitals below).

 

WHEREAS, promptly following
the execution of this Agreement, the Company is entering into a Combination Agreement with Kraton and other parties (as the same
may be amended, the “Combination Agreement”), providing for a business combination in which the Company will
contribute, directly or indirectly, its styrenic block copolymers business in exchange for ordinary shares of a new holding company
formed by Kraton (together with other transactions contemplated by the Combination Agreement and any related matters, the “Combination”),
subject to, among other things, approval by the shareholders of the Company pursuant to the Company Act and the Business Mergers
and Acquisitions Act of Taiwan; and

 

WHEREAS, as a condition
to Kraton’s willingness to enter into the Combination Agreement, Shareholder has agreed to execute and deliver this Agreement
with respect to the shares of common stock of the Company (“Company Stock”) beneficially owned by Shareholder
and set forth on Exhibit A hereto (the “Original Shares” and, together with any additional shares of
Company Stock acquired pursuant to Section 2, the “Shares”).

 

NOW, THEREFORE, the
Parties, intending to be legally bound, agree as follows:

 

1.           Agreement to Vote Shares.

 

(a)          Shareholder
irrevocably agrees to vote, or cause to be voted, all of the Shares in favor of the Combination at the London Stockholder Meeting,
and at every adjournment or postponement thereof, or in any other circumstance upon which a vote or approval of Shareholder with
respect to the Combination is sought (any such circumstance, a “Shareholder Meeting”). Shareholder further irrevocably
agrees to vote, or cause to be voted, all of the Shares at any Shareholder Meeting against any action that would (i) oppose, impede,
delay, postpone or be inconsistent with the Combination or the approval thereof or (ii) make impossible or unlikely the satisfaction
of any of the conditions to closing set forth in Article VII of the Combination Agreement. Shareholder will not take any action
that would knowingly induce or encourage other holders of Company Stock (A) not to attend a Shareholder Meeting; (B) not to vote
in favor of the Combination; or (C) to vote in favor of any action that would (I) oppose, impede, delay, postpone or be inconsistent
with the Combination or the approval thereof or (II) make impossible or unlikely the satisfaction of any of the conditions set
forth in Article VII of the Combination Agreement. Shareholder will not, and will not permit any entity under Shareholder’s
control to, deposit any of the Shares in a voting trust, grant any proxies with respect to the Shares or subject any of the Shares
to any arrangement with respect to the voting of the Shares other than this Agreement. Shareholder agrees to provide or cause the
Company to provide Kraton with reasonable documentation to demonstrate that the votes on all Shares are cast in accordance with
this Agreement.

 

    	 

    	 

    

 

(b)          Nothing
in this Agreement shall restrict Shareholder in any way from voting Shares in favor of, voting against or abstaining from voting
with respect to any matter presented to the holders of Company Stock, except, in each case, with respect to any matter subject
to the voting requirements of Section 1(a).

 

(c)          This
Section 1 shall not require Shareholder to exercise (or cause to be exercised) any warrants, options or other rights (if any) to
acquire shares of Company Stock.

 

2.           Transfer and Other Matters.

 

(a)          Shareholder
will not, directly or indirectly, sell, pledge, encumber or otherwise transfer (“Transfer”) any of the Shares,
except to a person who is a related party or affiliate of the Shareholder (or, if such person is not a related party or affiliate
of the Shareholder, with the written consent of Kraton, which consent shall not be unreasonably withheld or delayed) and provided
that such person agrees in writing to be bound by the terms of this Agreement as a precondition to such Transfer and provided that
a copy of such instrument is provided promptly to Kraton and, upon delivery to Kraton of such instrument, Shareholder’s obligations
under Section 1(a) of this Agreement to vote, or cause to be voted, such Transferred Shares shall cease, and such Transferred Shares
shall no longer be considered Shares for purposes of this Agreement, from and after the time of such Transfer, provided,
however, that Shareholder may pledge or encumber (including creating or incurring any lien upon) any of the Shares if such
pledge or encumbrance would not (i) prevent Shareholder from performing any of his or her obligations under this Agreement or (ii)
reasonably be expected to result in a foreclosure with respect to such Shares prior to the receipt of the London Stockholder Approval
(such encumbrances, “Restrictive Encumbrances”).

 

(b)          Shareholder
agrees and acknowledges that all shares of Company Stock that Shareholder purchases or otherwise acquires the right to vote for
his or her own account after the execution of this Agreement shall become subject to the terms of this Agreement and shall constitute
Shares as of the date of such acquisition for all purposes of this Agreement, except for purposes of Section 3.

 

(c)          Shareholder
has executed and delivered this Agreement solely in his or her capacity as a holder of Shares, and nothing in this Agreement shall
limit or affect any actions taken by him or her in his or her capacity as an officer, director or employee of the Company, and
any such actions shall not, individually or in the aggregate, be deemed to constitute a breach of this Agreement.

 

    	2

    	 

    

 

3.           Representations of Shareholder.
Shareholder represents and warrants that:

 

(a)          Shareholder
has full power and authority and legal capacity to execute and deliver this Agreement and to perform fully Shareholder’s
obligations hereunder (including the voting requirements described in Section 1(a)). This Agreement has been duly and validly executed
and delivered by Shareholder and constitutes the legal, valid and binding obligation of Shareholder, enforceable against Shareholder
in accordance with its terms. Shareholder owns, beneficially and, unless a different record holder is specified on Exhibit A hereto,
of record, all of the Original Shares listed on Exhibit A hereto free and clear of all Restrictive Encumbrances. Shareholder
does not beneficially own or have any right to acquire for his or her own account any shares of Company Stock other than the Original
Shares listed on Exhibit A hereto. Except pursuant to this Agreement, Shareholder has not entered into any Contract, option
or other arrangement of any character relating to the pledge, disposition or voting of any of the Original Shares, except as would
not (i) prevent Shareholder from performing any of his or her obligations under this Agreement or (ii) reasonably be expected to
result in a foreclosure with respect to such Original Shares prior to the receipt of the London Stockholder Approval, and there
are no outstanding proxies, voting trusts or voting agreements with respect to the Original Shares, except with respect to any
matter not subject to the voting requirements of Section 1(a). Shareholder has full and exclusive power to vote the Shares.

 

(b)          None
of the execution and delivery of this Agreement by Shareholder, the consummation by Shareholder of the transactions contemplated
by this Agreement or compliance by Shareholder with any provision of this Agreement will (i) conflict with or result in a breach
of, or constitute a default (with or without notice of lapse of time or both) under, any Contract or regulation that is binding
on Shareholder or any of his or her material properties or assets or (ii) require any consent, approval or authorization of any
Governmental Body or any third party (including the spouse, if any, of Shareholder), except where the failure to obtain any such
consent, individually or in the aggregate, would not (A) prevent Shareholder from performing any of his or her obligations under
this Agreement or (B) reasonably be expected to result in a foreclosure with respect to any Original Shares prior to the receipt
of the London Stockholder Approval.

 

4.           Termination. This Agreement
shall terminate upon the earliest to occur of (i) the date, if any, on which the London Stockholder Approval is obtained and (ii)
the date on which the Combination Agreement is terminated in accordance with its terms. In the event of any such termination, this
Agreement shall immediately become void and have no effect, without any liability or obligation on the part of the Parties, except
that no such termination such shall relieve the Shareholder of any liability under this Agreement arising out of any breach by
the Shareholder of this Agreement in the case of a termination of the Combination Agreement by reason of a failure to obtain the
London Stockholder Approval.

 

5.           Limitation of Liability.
Shareholder will not be liable under this Agreement for any breach or violation by any other person of any other agreement entered
into in connection with the Combination Agreement or the Combination, including any voting agreements entered into between any
other holder of Company Stock and Kraton.

 

6.           Remedies. The Parties agree that Kraton shall have
the right to seek specific performance and other equitable relief to enforce Shareholder’s performance of his or her obligations
under this Agreement, in addition to any and all other rights and remedies Kraton may have at law. The Parties agree that there
are no third party beneficiaries of this Agreement.

 

    	3

    	 

    

 

7.            Miscellaneous.

 

(a)          This
Agreement constitutes the entire agreement, and supersedes all prior agreements, written or oral, between the Parties, or any of
them, with respect to the subject matter hereof. This Agreement may not be amended, supplemented or otherwise modified except by
an express written agreement signed by Shareholder and Kraton. No waiver of any provision hereof by any Party shall be deemed a
waiver of any other provisions hereof by such Party, nor shall any such waiver be deemed a continuing waiver of any provision hereof
by such Party. This Agreement shall not confer upon any person other than Kraton and the Shareholder any rights or remedies hereunder.

 

(b)          
Nothing contained in this Agreement shall vest in Kraton any direct or indirect ownership or incidence of ownership with respect
to any Shares, except as otherwise provided herein. All rights, ownership and economic benefits of and relating to the Shares shall
remain vested in and belong to Shareholder, and Kraton shall have no authority to direct Shareholder in the voting or Transfer
of any of the Shares, except as otherwise provided herein.

 

(c)          Except
as otherwise provided in this Agreement, all notices, requests, claims, demands and other communications under this Agreement shall
be in writing and shall be given (and, in the case of delivery in person or by overnight courier, shall be deemed to have been
duly given upon receipt) by delivery in person or overnight courier to the respective parties at the following addresses, delivery
by facsimile transmission to the respective parties at the following fax numbers or delivery by electronic mail transmission to
the respective parties at the following email addresses, or at such other address, fax number or email address for a party as shall
be specified in a notice given in accordance with this Section 7(c); provided, however, that delivery by facsimile
transmission or electronic mail transmission shall be deemed to have been duly given upon receipt only if promptly confirmed by
telephone:

 

If to Shareholder:

 

[               ]

Attention: [               ]

Fax: [             ]

Email: [             ]

Telephone: [             ]

 

    	4

    	 

    

 

with a copy to:

 

LCY Chemical Corp.

4F., No. 83, Sec. 4, Bade Rd.,
Songshan Dist.

Taipei City 105, Taiwan (R.O.C.)

Attention: Linda Wu

Fax: +886-2-2764-5749

Email: linda.wu@lcygroup.com

Telephone: +886-2-2763-1611

 

If to Kraton:

 

Kraton Performance Polymers, Inc.

15710 John F. Kennedy Boulevard, Suite 300

Houston, Texas 77032

Attention: General Counsel

Fax: (281) 504-4741

Email: steve.duffy@kraton.com

Telephone: +1 (832) 204-5400

 

with a copy to:

 

Baker Botts L.L.P.

910 Louisiana

Houston, Texas 77002

Attention: Stephen Massad

Fax: (713) 229-7775

Email: stephen.massad@bakerbotts.com

Telephone: +1 (713) 229-1475

 

and a copy to:

 

Lee and Li, Attorneys-at-Law

9F, 201 Tun Hua N. Road

Taipei, Taiwan 10508, R. O. C.

Fax: (886) 2-27133966

Email: joycefan@leeandli.com

Telephone: (886) 2-27153300

 

or to such other address, facsimile number,
email address or telephone as either Party may, from time to time, designate in a written notice given in a like manner.

 

    	5

    	 

    

 

(d)          This
Agreement shall be governed by, and construed in accordance with, the laws of the Republic of China, without regard to any choice
of law provisions thereof that would result in the application of the laws of any other jurisdiction. Each Party irrevocably agrees
that any legal action with respect to this Agreement shall be brought exclusively in the District Court of Taipei. Each Party hereby
submits to the personal jurisdiction of that court.

 

(e)          Any
term or provision of this Agreement that is invalid or unenforceable in any circumstance shall, as to that circumstance, be ineffective
to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions
of this Agreement or affecting the validity or enforceability of any of the terms or provisions of this Agreement in any other
circumstance. If any provision of this Agreement is so broad as to be unenforceable, the provision shall be interpreted to be only
so broad as is enforceable.

 

(f)          This
Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which together
shall constitute one and the same instrument.

 

(g)          Neither
Party may assign any of its rights or obligations under this Agreement without the prior written consent of the other Party. Subject
to the foregoing, this Agreement shall be binding upon, shall inure to the benefit of and shall be enforceable by the Parties and
their respective successors and permitted assigns.,

 

(h)          The
language used in this Agreement shall be deemed to be the language the Parties have chosen to express their mutual intent, and
no rule of strict construction will be applied against any Party. The section headings contained in this Agreement are for reference
purposes only and shall not affect the meaning or interpretation of this Agreement.

 

(i)          The
voting of the Shares pursuant to this Agreement may be effected in person, by proxy, by written consent or in any other manner
permitted by rules and procedures applicable to a Shareholder Meeting and applicable Law. For the avoidance of doubt, voting of
the Shares pursuant to this Agreement need not make explicit reference to the terms of this Agreement.

 

[Remainder of Page Intentionally Left
Blank]

 

    	6

    	 

    

 

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

 

	 	KRATON PERFORMANCE POLYMERS, INC.
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	SHAREHOLDER
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

[Signature Page to Voting Agreement]

 

    	 

    	 

    

 

Exhibit A

 

Number of Original Shares of Company Stock
Beneficially Owned by Shareholder as of the date of this Agreement: _____________

 

    	A-1

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