Document:

Exhibit 10.4

 

PHILLIPS EDISON GROCERY CENTER REIT III,
INC.

UP TO $220 MILLION IN CLASS A SHARES OF COMMON
STOCK

 

offered to accredited investors only

 

DEALER MANAGER AGREEMENT

 

October 12, 2016

 

Griffin Capital Securities, LLC

18191 Von Karman Avenue, Suite 300

Irvine, California 92612

 

Ladies and Gentlemen:

 

Phillips Edison Grocery
Center REIT III, Inc., a Maryland corporation (the “Company”) proposes that the Company issue and sell up to
$220 million in Class A shares (the “Shares”) of its common stock, $0.01 par value per share, to “accredited
investors,” as that term is defined in the Securities Act of 1933, as amended (the “Securities Act”) and
Regulation D promulgated thereunder (the “Offering”). The Offering shall consist of up to $200 million in Shares
to be offered in the primary portion of the Offering at an initial purchase price of $10.00 per share, and $20 million in Shares
to be offered pursuant to the Company’s distribution reinvestment plan (the “DRP”) at a purchase price
of $9.50 per share, all upon the other terms and subject to the conditions set forth in the Company’s Confidential Private
Placement Memorandum dated October __, 2016 (as amended or supplemented from time to time, the “Private Placement Memorandum”).
The Company reserves the right to reallocate the Shares offered between the primary portion of the Offering and the DRP. The Company
desires for Griffin Capital Securities, LLC (the “Dealer Manager”) to act as its agent in connection with the
Offering.

 

It is anticipated that
the Dealer Manager will enter into Participating Dealer Agreements (each, a “Participating Dealer Agreement”)
in the form attached to this Dealer Manager Agreement with other broker-dealers participating in the Offering (each dealer being
referred to herein as a “Dealer” and said dealers being collectively referred to herein as the “Dealers”).
The Company shall have the right to approve any material modifications or addendums to the form of the Participating Dealer Agreement.
Terms not defined herein shall have the same meaning as in the Private Placement Memorandum.

 

In connection therewith,
the Company hereby agrees with the Dealer Manager, as follows:

 

1.          Representations
and Warranties of the Company.

 

As an inducement to the
Dealer Manager to enter into this Agreement, the Company represents and warrants to the Dealer Manager and to each Dealer with
whom the Dealer Manager enters into a Participating Dealer Agreement that:

 

1.1           The
Private Placement Memorandum with respect to the Offering has been prepared by the Company in accordance with applicable requirements
of the Securities Act, and the applicable rules and regulations (the “Rules and Regulations”) of the Securities
and Exchange Commission (the “SEC”) promulgated thereunder, for offerings solely to accredited investors as
set forth in Regulation D promulgated thereunder. Copies of such Private Placement Memorandum and each amendment thereto have been
or will be delivered to the Dealer Manager.

 

     

     

    

 

1.2           The
Offering is exempt from registration pursuant to Rule 506 of Regulation D promulgated under the Securities Act of 1933, as amended
(the “Securities Actˮ), and applicable state securities law exemptions.

 

1.3           The
Company has been duly organized and is validly existing as a corporation under the laws of the State of Maryland, has the power
and authority to conduct its business as described in the Private Placement Memorandum.

 

1.4           The
Private Placement Memorandum complies with the Securities Act and the Rules and Regulations, and the Private Placement Memorandum
and any and all authorized printed sales literature or other sales materials prepared and authorized by the Company for use with
potential investors in connection with the Offering (“Authorized Sales Materials”), during such time as such
Authorized Sales Material are authorized by the Company for use, when used in conjunction with the Private Placement Memorandum,
do not contain any untrue statements of material facts or omit to state any material fact required to be stated therein or necessary
in order to make the statements therein, in light of the circumstances under which they are made, not misleading; provided, however,
that (i) the Company undertakes to immediately notify the Dealer Manager in writing (electronic or otherwise) at the time any of
the Authorized Sales Materials are no longer authorized by the Company for use, which notice shall (notwithstanding the provisions
of Section 14 hereof) be effective upon receipt by the Dealer Manager, and (ii) the foregoing provisions of this Section 1.3 will
not extend to such statements contained in or omitted from the Private Placement Memorandum or Authorized Sales Materials as are
primarily within the knowledge of the Dealer Manager or any of the Dealers and are based upon information either (a) furnished
by a Dealer in writing to the Dealer Manager or the Company, or (b) furnished by the Dealer Manager in writing to the Company specifically
for inclusion therein.

 

1.5           The
Company intends to use the funds received from the sale of the Shares as set forth in the Private Placement Memorandum.

 

1.6           No
consent, approval, authorization or other order of any governmental authority is required in connection with the execution or delivery
by the Company of this Dealer Manager Agreement or the issuance and sale by the Company of the Shares, except such as may be required
under the Securities Act or applicable state securities laws or from the Financial Industry Regulatory Authority (“FINRA”).

 

1.7           There
are no actions, suits or proceedings pending or to the knowledge of the Company, threatened against the Company at law or in equity
or before or by any federal or state commission, regulatory body or administrative agency or other governmental body, domestic
or foreign, which would be reasonably expected to have a material adverse effect on the business or property of the Company taken
as a whole.

 

1.8           The
execution and delivery of this Dealer Manager Agreement, the consummation of the transactions herein contemplated and compliance
with the terms of this Dealer Manager Agreement by the Company will not conflict with or constitute a default under any charter,
bylaw, indenture, mortgage, deed of trust, lease, rule, regulation, writ, injunction or decree of any government, governmental
instrumentality or court, domestic or foreign, having jurisdiction over the Company, except (i) to the extent that the enforceability
of the indemnity and/or contribution provisions contained in Section 5 of this Dealer Manager Agreement may be limited under applicable
securities laws, and (ii) for such conflicts or defaults that would not reasonably be expected to have a material adverse effect
on the business or property of the Company taken as a whole.

 

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1.9           The
Company has full legal right, power and authority to enter into this Dealer Manager Agreement and to perform the transactions contemplated
hereby, except to the extent that the enforceability of the indemnity and/or contribution provisions contained in Section 5 of
this Dealer Manager Agreement may be limited under applicable securities laws.

 

1.10         The
Shares, when subscribed for, paid for and issued in accordance with the Company’s charter and as contemplated in the Private
Placement Memorandum, will be duly and validly issued, fully paid and non-assessable and will conform to the description thereof
contained in the Private Placement Memorandum; no holder thereof will be subject to personal liability for the obligations of the
Company solely by reason of being such a holder; such Shares are not subject to the preemptive rights of any stockholder of the
Company; and all corporate action required to be taken for the authorization, issuance and sale of such Shares shall have been
validly and sufficiently taken.

 

1.11         The
Company is not in violation of its Articles of Incorporation or its Bylaws.

 

1.12         The
financial statements of the Company included in the Private Placement Memorandum, if any, present fairly in all material respects
the financial position of the Company as of the date indicated and the results of its operations for the periods indicated;
said financial statements have been prepared in conformity with generally accepted accounting principles applied on a consistent
basis, except as may be expressly stated in the related notes thereto.

 

1.13         The
Company does not intend to conduct its business so as to be an “investment company” as that term is defined in the
Investment Company Act of 1940, as amended, and the rules and regulations thereunder, and it will exercise reasonable diligence
to ensure that it does not become an “investment company” within the meaning of the Investment Company Act of 1940,
as amended.

 

1.14         None
of the Company, any of its predecessors, any affiliated issuer, any director, executive officer, other officer of the Company participating
in the Offering, any beneficial owner (as that term is defined under Rule 13d-3 under the Securities Exchange Act of 1934, as amended
(the “Exchange Act”)) of 20% or more of the Company’s outstanding voting equity securities, calculated
on the basis of voting power, nor any promoter (as that term is defined in Rule 405 under the Securities Act) connected with the
Company in any capacity at the time of sale (each, a “Company Covered Person” and, together, “Company
Covered Persons”) is subject to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i) to
(viii) under the Securities Act (a “Disqualification Event”), except for a Disqualification Event covered by
Rule 506(d)(2) or (d)(3) under the Securities Act. The Company has exercised, and during the term of the Offering will continue
to exercise, reasonable care to determine whether any Company Covered Person, any Dealer Manager Covered Person (as defined in
Section 3.3 below) and any Dealer Covered Person (as defined in Section 3.4 below) is subject to a Disqualification Event. The
Company will immediately comply, to the extent applicable, with its disclosure obligations under Rule 506(e), and will immediately
effect the preparation of an amended or supplemented Private Placement Memorandum that will contain any such required disclosure
and will, at no expense to the Dealer Manager, promptly furnish the Dealer Manager with such number of printed copies of such amended
or supplemented Private Placement Memorandum containing any such required disclosure, including any exhibits thereto, as the Dealer
Manager may reasonably request.

 

1.15         
The Company is not aware of any person (other than any Company Covered Person, Dealer Manager Covered Person or Dealer Covered
Person) that has been or will be paid (directly or indirectly) remuneration for solicitation of purchasers in connection with the
sale of any Shares.

 

1.16         With
respect to each Company Covered Person, the Company has established procedures reasonably designed to ensure that the Company receives
notice from each such Company Covered Person of (i) any Disqualification Event relating to that Company Covered Person, and (ii)
any event that would, with the passage of time, become a Disqualification Event relating to that Company Covered Person.

 

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1.17         The
representations and warranties in Sections 1.13 through 1.15 are and shall be continuing representations and warranties throughout
the term of the Offering. The Company will promptly notify the Dealer Manager in writing upon becoming aware of any fact which
makes any such representation or warranty untrue.

 

		2.	Covenants of
the Company.

 

The Company covenants and
agrees with the Dealer Manager that:

 

2.1           It
will furnish the Dealer Manager, at no expense to the Dealer Manager, with such number of printed copies of the Private Placement
Memorandum, including all amendments and exhibits thereto, as the Dealer Manager may reasonably request. It will similarly furnish
to the Dealer Manager and others designated by the Dealer Manager as many copies as the Dealer Manager may reasonably request in
connection with the offering of the Shares of this Dealer Manager Agreement.

 

2.2           It
will timely file a Form D relating to the Offering with the SEC under Regulation D of the Securities Act and with each applicable
state securities regulatory agency in accordance with applicable state securities laws and regulations.

 

2.3           It
will comply with all applicable provisions of Rule 506, Regulation D, the Securities Act, the Securities Exchange Act of 1934,
as amended, and state securities laws and regulations; provided that, except for items expressly required to be performed by it
under this Dealer Manager Agreement, it shall not be responsible for the compliance by the Dealer Manager and its Dealers with
such applicable laws and regulations.

 

2.4           It
will prepare and file with the appropriate regulatory authorities, at no expense to the Dealer Manager, the Authorized Sales Materials.
In addition, it will furnish the Dealer Manager, at no expense to the Dealer Manager, with such number of printed copies of Authorized
Sales Materials as the Dealer Manager may reasonably request.

 

2.5           It
will furnish such proper information and execute and file such documents as may be necessary for the Company to offer and sell
the Shares under applicable exemptions from the registration requirements under the Securities Act and the securities laws of such
jurisdictions as the Company and the Dealer Manager may mutually agree and will file and make in each year such statements and
reports as may be required by such jurisdictions. The Company will furnish to the Dealer Manager a copy of such papers filed by
the Company in connection with any such exemption upon the Dealer Manager’s request.

 

2.6           If
at any time during the Offering any event occurs as a result of which, in the opinion of either the Company or the Dealer Manager,
the Private Placement Memorandum would include an untrue statement of a material fact or, in view of the circumstances under which
they were made, omit to state any material fact necessary to make the statements therein not misleading, the Company will promptly
notify the Dealer Manager thereof (unless the information shall have been received from the Dealer Manager) and will effect the
preparation of an amended or supplemental Private Placement Memorandum which will correct such statement or omission.

 

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2.7           Each
of the representations and warranties contained in this Dealer Manager Agreement are true and correct as of the date of this agreement
unless another date is specified therein and the Company will comply with each covenant and agreement contained in this Dealer
Manager Agreement.

 

2.8           It
will be duly qualified to do business as a foreign corporation in each jurisdiction in which it will own or lease property of a
nature, or transact business of a type that will make such qualification necessary.

 

2.9           It
intends to satisfy the requirements of the Internal Revenue Code of 1986, as amended (the “Code”), for qualification
of the Company as a real estate investment trust. The Company will elect to be treated as a real estate investment trust under
the Code at such time as it so qualifies and will direct the investment of the proceeds of the offering of the Shares in such a
manner, and will exercise reasonable diligence to operate the business of the Company so as to comply with such requirements.

 

2.10         The
Company will notify the Dealer Manager in writing, promptly upon the occurrence of (i) any Disqualification Event relating to any
Company Covered Person and (ii) any event that would, with the passage of time, become a Disqualification Event relating to any
Company Covered Person.

 

		3.	Covenants and
Agreements of the Dealer Manager.

 

		3.1	Dealer Manager covenants and agrees with the Company that:

 

		(a)	Dealer Manager shall require Dealers in the Participating
Dealer Agreement to agree, to not offer or sell the Shares by means of any form of general solicitation or general advertising,
including but not limited to, the following:

 

(i)          any
advertisement, article, notice, or other communication published in any newspaper, magazine or similar media, cold mass mailings,
broadcasts over television or radio, material contained on a website available to the public or an e-mail message sent to a large
number of previously unknown persons;

 

(ii)         any
seminar or meeting whose attendees have been invited by any general solicitation or general advertising; or

 

(iii)        any
letter, circular, notice, or other written communication constituting a form of general solicitation or general advertising.

 

		(b)	Dealer Manager shall require Dealers in the Participating
Dealer Agreement to agree to provide each offeree with a numbered copy of the Private Placement Memorandum (including any amended
and restated Private Placement Memorandum), and all supplements or amendments thereto, and to keep on file memoranda indicating
to whom each Private Placement Memorandum, supplement or amendment thereto and supplemental material was delivered, which memoranda
shall further indicate by number to whom each initial Private Placement Memorandum and any amended and restated Private Placement
Memorandum was delivered.

 

		(c)	Dealer Manager shall require Dealers in the Participating
Dealer Agreement to agree to the following in connection with any offer or sale of the Shares:

 

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(i)          to
comply in all respects with statements set forth in the Private Placement Memorandum and any supplements or amendments to the Private
Placement Memorandum;

 

(ii)         not
to make any statement inconsistent with the statements in the Private Placement Memorandum and any supplements or amendments to
the Private Placement Memorandum;

 

(iii)        not
to make any untrue or misleading statements of a material fact in connection with the Shares; and

 

(iv)        not
to provide any written information, statements, or sales materials other than the Private Placement Memorandum and any supplements
or amendments thereto and any Authorized Sales Materials, unless approved in writing by the Dealer Manager.

 

		(d)	Dealer Manager shall require Dealers in the Participating
Dealer Agreement to agree to advise each offeree of Shares in the Company at the time of the initial offering to such offeree
that the Company shall, during the course of the Offering and a reasonable time before sale, afford offeree and offeree’s
agents or representatives, if any, the opportunity to ask questions and receive answers concerning the terms and conditions of
the Offering and to obtain any additional information, to the extent possessed or obtainable by the Company without unreasonable
effort or expense, that is necessary to verify the accuracy of the information contained in the Private Placement Memorandum.

 

		(e)	Dealer Manager shall require Dealers in the Participating
Dealer Agreement to agree to make, before the sale of any of the Shares, reasonable inquiry to determine if the offeree is acquiring
the Shares for offeree’s own account or on behalf of other persons, and that the offeree understands the limitations on
the offeree’s disposition of the Shares set forth in Rule 502(d) of Regulation D. This includes a determination by the Dealer
that the offeree understands that he must bear the economic risk of the investment for an indefinite period of time because the
Shares have not been registered under the Securities Act and, thus, cannot be sold unless the Shares are subsequently registered
under the Securities Act or an exemption from registration under the Securities Act is available.

 

		(f)	Dealer Manager shall require Dealers in the Participating
Dealer Agreement to agree that, before the sale of any of the Shares, to:

 

(i)          have
reasonable grounds to believe that each subscriber is an “accredited investor” as that term is then defined in Rule
501(a) of Regulation D; and

 

(ii)         have
sufficient information concerning the offeree to determine that the offeree has such knowledge and experience in financial and
business matters that the offeree is capable of evaluating the merits and risks of an investment in the Company.

 

		(g)	The Dealer Manager shall not, and in the Participating
Dealer Agreement with Dealers shall require that the Dealers shall not, distribute a Private Placement Memorandum, supplement
or amendment thereto or any supplemental information to any offeree with whom the Dealer Manager or such Dealer, as applicable,
does not have a pre-existing substantive relationship, as defined from time to time by the SEC.

 

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		(h)	The Dealer Manager shall not, and in the Participating
Dealer Agreement with Dealers shall require that the Dealers shall not, utilize any registration statement on Form S-11 filed
by the Company with the SEC or any draft registration statement submitted confidentially to the SEC pursuant to Section 6(e) of
the Securities Act (the “Registration Statement”) or the prospectus that forms a part thereof in connection
with the marketing of this Offering or offer or sell Shares in this Offering to any person who contacts the Dealer Manager or
the Dealer, as applicable, as a result of reviewing or receiving the Registration Statement or the prospectus that forms a part
thereof.

 

		(i)	The Dealer Manager and Dealers will suspend or terminate
offering of the Shares upon request of the Company at any time and will resume offering the Shares upon subsequent request of
the Company.

 

3.2           The
Dealer Manager will provide the Company with such information relating to the offer and sale of the Shares by it as the Company
may from time to time reasonably request or as may be requested to enable the Company to prepare such reports of sale as may be
required to be filed under applicable federal or state securities laws.

 

3.3           The
Dealer Manager represents that neither it, nor any of its directors, executive officers, general partners, managing members or
other officers participating in the offering of Shares, nor any of the directors, executive officers or other officers participating
in the offering of Shares of any such general partner or managing member, nor any other officers, employees or associated persons
of the Dealer Manager or any such general partner or managing member that have been or will be paid (directly or indirectly) remuneration
for solicitation of purchasers in connection with the sale of any Shares (each, a “Dealer Manager Covered Person”
and, together, “Dealer Manager Covered Persons”), is subject to any Disqualification Event except for a Disqualification
Event (i) contemplated by Rule 506(d)(2) of the Securities Act and (ii) a description of which has been furnished in writing to
the Company prior to the date hereof.

 

3.4           In
its agreements with the Dealers, the Dealer Manager will require the Dealers to represent that neither the Dealer, nor any of its
directors, executive officers, general partners, managing members or other officers participating in the offering of Shares, nor
any of the directors, executive officers or other officers participating in the offering of Shares of any such general partner
or managing member, nor any other officers, employees or associated persons of the Dealer or any such general partner or managing
member that have been or will be paid (directly or indirectly) remuneration for solicitation of purchasers in connection with the
sale of any Shares (each, a “Dealer Covered Person” and, together, “Dealer Covered Persons”),
is subject to any Disqualification Event except for a Disqualification Event (i) contemplated by Rule 506(d)(2) of the Securities
Act and (ii) a description of which has been furnished in writing to the Dealer Manager prior to the date of the Participating
Dealer Agreement between the Dealer Manager and such Dealer.

 

3.5           The
Dealer Manager represents that it is not aware of any person (other than any Company Covered Person, Dealer Manager Covered Person
or Dealer Covered Person) that has been or will be paid (directly or indirectly) remuneration for solicitation of purchasers in
connection with the sale of any Shares. The Dealer Manager will notify the Company of any agreement entered into between the Dealer
Manager and any such person in connection with such sale.

 

3.6           The
representations, warranties and covenants in Sections 3.3 through 3.5 above are and shall be continuing representations, warranties
and covenants throughout the term of the Offering. The Dealer Manager will notify the Company in writing promptly upon the occurrence
of (i) any Disqualification Event relating to any Dealer Manager Covered Person not previously disclosed to the Company in accordance
with Section 3.3 above, and (ii) any event that would, with the passage of time, become a Disqualification Event relating to any
Dealer Manager Covered Person.

 

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3.7           In
its agreements with the Dealers, the Dealer Manager will require that the Dealers notify the Dealer Manager in writing promptly
upon the occurrence of (i) any Disqualification Event relating to any Dealer Covered Person not previously disclosed to the Dealer
Manager, and (ii) any event that would, with the passage of time, become a Disqualification Event relating to any Dealer Covered
Person. The Dealer Manager will notify the Company in writing promptly upon receiving notification from any Dealer of the occurrence
of any such event described in this paragraph.

 

3.8           The
Dealer Manager acknowledges that, with respect to each Dealer Manager Covered Person and Dealer Covered Person, the Company is
relying upon the representations, covenants and agreements of the Dealer Manager set forth in this Section 3 and the representations,
covenants and agreements of the Dealers referred to in this Section 3 as procedures reasonably designed to ensure that the Company
receives notice from each such Dealer Manager Covered Person or Dealer Covered Person of (i) any Disqualification Event relating
to that Dealer Manager Covered Person or Dealer Covered Person, and (ii) any event that would, with the passage of time, become
a Disqualification Event relating to that Dealer Manager Covered Person or Dealer Covered Person.

 

3.9           The
Dealer Manager will provide, and in its agreements with the Dealers will require the Dealers to provide, such certifications, documentation,
and other information reasonably requested by the Company from time to time which the Company deems to be necessary or advisable
to carry out the exercise of reasonable care under Rule 506(d) and (e) under the Securities Act in connection with this Offering.

 

		4.	Obligations
and Compensation of the Dealer Manager.

 

4.1           The
Company hereby appoints the Dealer Manager as its agent and principal distributor for the purpose of selling for cash up to a maximum
of $220 million in Shares through the Dealers, all of whom shall be members of FINRA. The Dealer Manager may also sell Shares for
cash directly to its own clients and customers at the offering price and subject to the terms and conditions stated in the Private
Placement Memorandum. The Dealer Manager hereby accepts such agency and distributorship and agrees to use its best efforts to sell
the Shares on said terms and conditions. The Dealer Manager represents to the Company that it is a member of FINRA and that it
and its employees and representatives have all required licenses and registrations to act under this Dealer Manager Agreement.

 

The Dealer Manager agrees
to be bound to the terms of the Escrow Agreement executed by and among UMB Bank, N.A., as escrow agent, the Dealer Manager and
the Company.

 

4.2           Promptly
after the date of this Agreement, the Dealer Manager and the Dealers shall commence the offering of the Shares for cash to the
public in jurisdictions in which the Shares are registered or qualified for sale or in which such offering is exempt or otherwise
permitted. The Dealer Manager and the Dealers will suspend or terminate offering of the Shares upon request of the Company at any
time and will resume offering the Shares upon subsequent request of the Company. The Dealer
Manager, through the Participating Dealer Agreement with the Dealers, shall cause Dealers to agree to deliver to each prospective
investor, prior to any submission by such prospective investor of a written offer to buy any Shares,
a copy of the Private Placement Memorandum.

 

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4.3           Except
as otherwise provided in the “Plan of Distribution” section of the Private Placement Memorandum, as compensation for
the services rendered by the Dealer Manager, the Company agrees that it will pay to the Dealer Manager, at the time of sale of
shares, sales commissions in the amount of 7.0% of the gross proceeds of the Shares sold in the primary portion of the Offering,
and the Company agrees that it will pay to the Dealer Manager an aggregate dealer manager fee in the amount of 3.0% of gross proceeds
of Shares sold in the primary portion of the Offering. The Dealer Manager may, in its discretion, re-allow to Dealers up to 100%
of the selling commissions and dealer manager fees. No selling commissions or dealer manager fee shall be paid with respect to
Shares sold pursuant to the Company’s distribution reinvestment plan. The Company will not be liable or responsible to any
Dealer for direct payment of commissions or dealer manager fees to any Dealer, it being the sole and exclusive responsibility of
the Dealer Manager for payment of such to Dealers. Notwithstanding the above, at the discretion of the Company, the Company may
act as agent of the Dealer Manager by making direct payment of commissions or dealer manager fees to Dealers on behalf of the Dealer
Manager without incurring any liability.

 

Notwithstanding the foregoing,
until the release of funds from Benefit Plan investors as described in the Private Placement Memorandum, investments from Benefit
Plan investors will be held in an account held by UMB Bank, N.A., as escrow agent, and no commissions, dealer manager fee or other
payments will be paid thereon to the Dealer Manager under this Section 4.3 unless and until such investments from Benefit Plan
investors are released to the Company from escrow.

 

Notwithstanding anything
to the contrary contained herein, in the event that the Company pays any commission or fees to the Dealer Manager for a sale by
it or a Dealer of one or more Shares and the subscription is subsequently rescinded as to one or more of the Shares covered by
such subscription, the Company shall decrease the next payment of commissions or other compensation otherwise payable to the Dealer
Manager by the Company under this Agreement by an amount equal to the applicable rate established in Section 4.3 of this Agreement,
multiplied by the price of the Shares as to which the subscription is rescinded. In the event that no payment of commissions or
other compensation is due to the Dealer Manager after such rescinded subscription occurs, the Dealer Manager shall pay the amount
specified in the preceding sentence to the Company within seven (7) days following receipt of notice by the Dealer Manager from
the Company stating the amount owed as a result of rescinded subscriptions.

 

4.4           The
Dealer Manager represents and warrants to the Company that the information under the caption “Plan of Distribution”
in the Private Placement Memorandum and all other information furnished or to be furnished to the Company by the Dealer Manager
in writing expressly for use in the Private Placement Memorandum, or any amendment or supplement thereto, does not and will not
contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances under which they are made, not misleading.

 

4.5           The
Dealer Manager represents and warrants to the Company that it will not use any sales literature not authorized and approved by
the Company, use any “broker-dealer use only” materials with members of the public, or make any unauthorized verbal
representations in connection with offers or sales of the Shares.

 

4.6           The
Dealer Manager is a duly organized and validly existing limited liability company under the laws of the State of Delaware. The
Dealer Manager is not in violation of its operating agreement.

 

4.7           No
consent, approval, authorization or other order of any governmental authority is required in connection with the execution or delivery
by the Dealer Manager of this Dealer Manager Agreement, except such as may be required under the Securities Act or applicable state
securities laws.

 

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4.8           There
are no actions, suits or proceedings pending or to the knowledge of the Dealer Manager, threatened against the Dealer Manager at
law or in equity or before or by any federal or state commission, regulatory body or administrative agency or other governmental
body, domestic or foreign, which could be reasonably expected to have a material adverse effect on the Dealer Manager or the ability
of the Dealer Manager to perform its obligations under this Agreement or to participate in the Offering as contemplated by the
Private Placement Memorandum.

 

4.9           The
execution and delivery of this Dealer Manager Agreement, the consummation of the transactions herein contemplated and compliance
with the terms of this Dealer Manager Agreement by the Dealer Manager will not conflict with or constitute a default under any
operating agreement or other similar agreement, indenture, mortgage, deed of trust, lease, rule, regulation, writ, injunction or
decree of any government, governmental instrumentality or court, domestic or foreign, having jurisdiction over the Dealer Manager,
except to the extent that the enforceability of the indemnity and/or contribution provisions contained in Section 5 of this Dealer
Manager Agreement may be limited under applicable securities laws.

 

4.10         The
Dealer Manager has full legal right, power and authority to enter into this Dealer Manager Agreement and to perform the transactions
contemplated hereby, except to the extent that the enforceability of the indemnity and/or contribution provisions contained in
Section 5 of this Dealer Manager Agreement may be limited under applicable securities laws.

 

4.11         Except
for Participating Dealer Agreements, no agreement will be made by the Dealer Manager with any person permitting the resale, repurchase
or distribution of any Shares purchased by such person.

 

4.12         The
Dealer Manager represents and warrants to the Company that it will not represent or imply that the escrow agent, as identified
in the Private Placement Memorandum, has investigated the desirability or advisability of investment in the Company, or has approved,
endorsed or passed upon the merits of the Shares or the Company, nor will they use the name of said escrow agent in any manner
whatsoever in connection with the offer or sale of the Shares other than by acknowledgement that it has agreed to serve as escrow
agent.

 

4.13         Dealer
Manager represents and warrants that it is currently, and at all times while performing its functions under this Dealer Manager
Agreement will be, a properly registered broker-dealer under the Exchange Act, and under state securities laws to the extent necessary
to perform the duties described in this Dealer Manager Agreement, and that it is a member in good standing of FINRA. The Dealer
Manager agrees to notify the Company immediately in writing if it ceases to be a member in good standing with FINRA, is subject
to a FINRA suspension, or its registration as a broker-dealer under the Exchange Act is terminated or suspended. The Dealer Manager
hereby agrees to abide by all applicable NASD Conduct Rules under FINRA and other applicable FINRA Rules.

 

4.14         The
Dealer Manager will not offer the Shares, and in its agreements with Dealers will require that the Dealers not offer Shares, in
any jurisdiction unless and until (a) the Dealer Manager has been advised by the Company in writing that the Shares are either
registered in accordance with, or exempt from, the securities laws of such jurisdiction, (b) the Dealer Manager has all required
licenses and registrations to offer Shares in that jurisdiction, and (c) any Dealer offering shares in such jurisdiction has represented
that it has all required licenses and registrations to offer Shares in that jurisdiction

 

    	 	10	 

     

    

 

4.15         In
connection with the Dealer Manager’s participation in the offer and sale of Shares (including, without limitation, any resales
and transfers of Shares), the Dealer Manager will comply, and in its agreements with Dealers will require that the Dealers comply,
with all requirements and obligations imposed upon any of them by (a) the Securities Act, the Exchange Act and the rules and regulations
of the SEC promulgated under both such acts; (b) all applicable state securities laws and regulations as from time to time in effect;
(c) the applicable rules of FINRA; (d) all applicable rules and regulations relating to the suitability of the investors; (e) any
other state and federal laws and regulations applicable to the Offering, the sale of Shares or the activities of the Dealer Manager
pursuant to this Agreement, including without limitation the privacy standards and requirements of state and federal laws, including
the Gramm-Leach-Bliley Act of 1999, and the laws governing money laundering abatement and anti-terrorist financing efforts, including
the applicable rules of the SEC and FINRA, the Bank Secrecy Act, as amended, the USA Patriot Act of 2001 and regulations administered
by the Office of Foreign Asset Control at the Department of the Treasury; and (f) this Dealer Manager Agreement and the Private
Placement Memorandum as amended and supplemented.

 

		5.	Indemnification.

 

5.1           The
Company will indemnify and hold harmless the Dealer Manager, its officers and directors and each person, if any, who controls such
Dealer Manager within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act from and against any losses,
claims, damages or liabilities, joint or several, to which Dealer Manager, its officers and directors, or such controlling person
may become subject, under the Securities Act or the Exchange Act or otherwise, insofar as such losses, claims, damages or liabilities
(or actions in respect thereof) arise out of or are based upon (a) any untrue statement or alleged untrue statement of a material
fact contained in any (i) Private Placement Memorandum, (ii) Authorized Sales Material, or (iii) Form D filing under Regulation
D or other document executed by the Company or on its behalf specifically for the purpose of qualifying for exemption any or all
of the Shares for sale under the securities laws of any jurisdiction or based upon written information furnished by the Company
under the securities laws thereof (“Regulation D Filing”), or (b) the omission or alleged omission to state in the
Private Placement Memorandum, any Authorized Sales Material or any Regulation D Filing a material fact required to be stated therein
or necessary to make the statements therein in light of the circumstances under which they were made not misleading. The Company
will reimburse the Dealer Manager, as appropriate, and its officers and directors and controlling persons, for any reasonable legal
or other expenses reasonably incurred by the Dealer Manager, and their officers and directors and controlling persons, in connection
with investigating or defending such loss, claim, damage, liability or action; provided that the Company will not be liable in
any such case to the extent that any such loss, claim, damage or liability arises out of, or is based upon an untrue statement
or alleged untrue statement or omission or alleged omission made in reliance upon and in conformity with written information furnished
(x) to the Company by the Dealer Manager or its affiliates or (y) to the Company or the Dealer Manager by or on behalf of any Dealer
specifically for use in the preparation of the Private Placement Memorandum or any such amendment thereof or supplement thereto,
any such Authorized Sales Materials, or any such Regulation D Filing; and further provided that the Company will not be liable
in any such case if it is determined that the Dealer Manager had knowledge of the matter or event giving rise to or resulting in
such loss, claim, damage, liability or action.

 

    	 	11	 

     

    

 

5.2           The
Dealer Manager will indemnify and hold harmless the Company its officers and directors, and each person, if any, who controls the
Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against any losses,
claims, damages or liabilities to which any of the aforesaid parties may become subject, under the Securities Act or the Exchange
Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based
upon (a) any untrue statement of a material fact contained (i) in the Private Placement Memorandum or any amendment thereof or
supplement thereto, or (ii) in any Authorized Sales Materials, or (iii) in any Regulation D Filing, or (b) the omission to state
in the Private Placement Memorandum or any amendment thereof or supplement thereto or in any Authorized Sales Materials or in any
Regulation D Filing a material fact required to be stated therein or necessary to make the statements therein in light of the circumstances
under which they were made not misleading, in each case described in clauses (a) and (b) to the extent, but only to the extent,
that such untrue statement or omission was made in reliance upon and in conformity with written information furnished to the Company
by or on behalf of the Dealer Manager or its affiliates specifically for use with reference to the Dealer Manager in the preparation
of the Private Placement Memorandum or any such amendment thereof or supplement thereto or any Authorized Sales Materials or any
such Regulation D Filing, or (c) any use of sales literature not authorized or approved by the Company or any use of “broker-dealer
use only” materials with members of the public or unauthorized verbal representations in connection with offers or sales
of the Shares by the Dealer Manager, or (d) any untrue statement made by the Dealer Manager or its representatives or agents or
omission to state a fact necessary in order to make the statements made, in light of the circumstances under which they were made,
not misleading in connection with the offer and sale of the Shares, or (e) any material violation of this Dealer Manager Agreement,
or (f) any failure to comply with applicable laws governing money laundering abatement and anti-terrorist financing efforts, including
applicable FINRA Rules, SEC Rules and the USA PATRIOT Act of 2001, or (g) any other failure to comply with applicable FINRA Rules,
SEC Rules or state securities laws and the rules and regulations promulgated thereunder. The Dealer Manager will reimburse the
aforesaid parties for any reasonable legal or other expenses reasonably incurred by them and their officers and directors and controlling
persons, in connection with investigation or defending such loss, claim, damage, liability or action. This indemnity agreement
will be in addition to any liability which the Dealer Manager may otherwise have.

 

5.3           The
Company will severally indemnify and hold harmless each Dealer, its officers and directors and each person, if any, who controls
such Dealer within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act from and against any losses,
claims, damages or liabilities, joint or several, to which such Dealer, its officers and directors, or any such controlling person
may become subject, under the Securities Act or the Exchange Act or otherwise, insofar as such losses, claims, damages or liabilities
(or actions in respect thereof) arise out of or are based upon (a) any untrue statement or alleged untrue statement of a material
fact contained in the Private Placement Memorandum, Authorized Sales Materials (when read in conjunction with the Private Placement
Memorandum) or any Regulation D Filing, or (b) the omission or alleged omission to state in the Private Placement Memorandum, Authorized
Sales Materials (when read in conjunction with the Private Placement Memorandum) or in any Regulation D Filing a material fact
required to be stated therein or necessary to make the statements therein not misleading. The Company will reimburse Dealers and
their officers and directors and controlling persons, for any reasonable legal or other expenses reasonably incurred by such Dealers
and their officers and directors and controlling persons, in connection with investigating or defending such loss, claim, damage,
liability or action; provided that the Company will not be liable in any such case to the extent that any such loss, claim, damage
or liability arises out of, or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made
in reliance upon and in conformity with written information furnished to the Company or the Dealer Manager by or on behalf of the
Dealers specifically for use in the preparation of the Private Placement Memorandum, such Authorized Sales Materials or any such
Regulation D Filing; and further provided that neither the Company nor the Dealer Manager will be liable in any such case if it
is determined in a legal proceeding that the Dealers had knowledge of the matter or event giving rise to or resulting in such loss,
claim, damage, liability or action.

 

    	 	12	 

     

    

 

5.4           The
Dealer Manager will severally indemnify and hold harmless each Dealer, its officers and directors and each person, if any, who
controls such Dealer within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act from and against
any losses, claims, damages or liabilities, joint or several, to which such Dealer, its officers and directors, or any such controlling
person may become subject, under the Securities Act or the Exchange Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon (a) any untrue statement or alleged untrue statement
of a material fact contained in the Private Placement Memorandum, Authorized Sales Materials (when read in conjunction with the
Private Placement Memorandum) or any Regulation D Filing, or (b) the omission or alleged omission to state in the Private Placement
Memorandum, Authorized Sales Materials (when read in conjunction with the Private Placement Memorandum) or in any Regulation D
Filing a material fact required to be stated therein or necessary to make the statements therein not misleading. The Dealer Manager
will reimburse Dealers and their officers and directors and controlling persons, for any reasonable legal or other expenses reasonably
incurred by such Dealers and their officers and directors and controlling persons, in connection with investigating or defending
such loss, claim, damage, liability or action; provided that the Dealer Manager will not be liable in any such case to the extent
that any such loss, claim, damage or liability arises out of, or is based upon an untrue statement or alleged untrue statement
or omission or alleged omission made in reliance upon and in conformity with written information furnished to the Dealer Manager
by or on behalf of the Dealers specifically for use in the preparation of the Private Placement Memorandum, such Authorized Sales
Materials or any such Regulation D Filing; and further provided that the Dealer Manager will not be liable in any such case if
it is determined in a legal proceeding that the Dealers had knowledge of the matter or event giving rise to or resulting in such
loss, claim, damage, liability or action.

 

5.5           Each
Dealer severally will indemnify and hold harmless the Company, the Dealer Manager and each of their officers and directors, and
each person, if any, who controls the Company and the Dealer Manager within the meaning of Section 15 of the Securities Act or
Section 20 of the Exchange Act from and against any losses, claims, damages or liabilities to which the Company, the Dealer Manager,
any such director or officer, or controlling person may become subject, under the Securities Act or the Exchange Act or otherwise,
insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (a) any untrue
statement or alleged untrue statement of a material fact contained (i) in the Private Placement Memorandum or any amendment thereof
or supplement thereto, or (ii) in any Authorized Sales Materials, or (iii) in any Regulation D Filing, or (b) the omission or alleged
omission to state in the Private Placement Memorandum or any amendment thereof or supplement thereto or in any Authorized Sales
Materials or in any Regulation D Filing a material fact required to be stated therein or necessary to make the statements therein
not misleading, in each case described in clauses (a) and (b) to the extent, but only to the extent, that such untrue statement
or alleged untrue statement or omission or alleged omission was made in reliance upon and in conformity with written information
furnished to the Company or the Dealer Manager by or on behalf of such Dealer specifically for use with reference to such Dealer
in the preparation of the Private Placement Memorandum or any such amendments thereof or supplements thereto or any such Authorized
Sales Materials or any such Regulation D Filing, or (c) any use of sales literature not authorized or approved by the Company or
use of “broker-dealer use only” materials with members of the public or unauthorized verbal representations in connection
with offers and sales of the Shares by such Dealer or Dealer’s representatives or agents, or (d) any untrue statement made
by such Dealer or its representatives or agents or omission to state a fact necessary in order to make the statements made, in
light of the circumstances under which they were made, not misleading in connection with the offer and sale of the Shares, or (e)
any failure to comply with Section X or Section XIII or any other material violation of the Participating Dealer Agreement, or
(f) any failure to comply with applicable laws governing money laundry abatement and anti-terrorist financing efforts, including
applicable FINRA Rules, SEC Rules and the USA PATRIOT Act of 2001, or (g) any other failure to comply with applicable FINRA Rules,
SEC Rules or state securities laws and the rules and regulations promulgated thereunder. Each such Dealer will reimburse the Company
and the Dealer Manager and any such directors or officers, or controlling person for any reasonable legal or other expenses reasonably
incurred by the Company and the Dealer Manager and their officers and directors and controlling persons in connection with investigating
or defending any such loss, claim, damage, liability or action. This indemnity agreement will be in addition to any liability which
such Dealer may otherwise have.

 

    	 	13	 

     

    

 

5.6           Promptly
after receipt by an indemnified party under this Section 5 of notice of the commencement of any action (but in no event in excess
of 30 days after receipt of actual notice), such indemnified party will, if a claim in respect thereof is to be made against any
indemnifying party under this Section 5, notify in writing the indemnifying party of the commencement thereof and the failure so
to notify the indemnifying party will relieve it from any liability under this Section 5 as to the particular item for which indemnification
is then being sought, but not from any other liability which it may have to any indemnified party. In case any such action is brought
against any indemnified party, and it notifies an indemnifying party of the commencement thereof, the indemnifying party will be
entitled, to the extent it may wish, jointly with any other indemnifying party similarly notified, to participate in the defense
thereof, with separate counsel. Such participation shall not relieve such indemnifying party of the obligation to reimburse the
indemnified party for reasonable legal and other expenses (subject to Section 5.7) incurred by such indemnified party in defending
itself, except for such expenses incurred after the indemnifying party has deposited funds sufficient to effect the settlement,
with prejudice, of the claim in respect of which indemnity is sought. Any such indemnifying party shall not be liable to any such
indemnified party on account of any settlement of any claim or action effected without the consent of such indemnifying party.

 

5.7           The
indemnifying party shall pay all reasonable legal fees and expenses of the indemnified party in the defense of such claims or actions;
provided, however, that the indemnifying party shall not be obliged to pay legal expenses and fees to more than one law firm in
connection with the defense of similar claims arising out of the same alleged acts or omissions giving rise to such claims notwithstanding
that such actions or claims are alleged or brought by one or more parties against more than one indemnified party. If such claims
or actions are alleged or brought against more than one indemnified party, then the indemnifying party shall only be obliged to
reimburse the expenses and fees of the one law firm that has been selected by a majority of the indemnified parties against which
such action is finally brought; and in the event a majority of such indemnified parties is unable to agree on which law firm for
which expenses or fees will be reimbursable by the indemnifying party, then payment shall be made to the first law firm of record
representing an indemnified party against the action or claim. Such law firm shall be paid only to the extent of services performed
by such law firm and no reimbursement shall be payable to such law firm on account of legal services performed by another law firm.

 

5.8           The
indemnity agreements contained in this Section 5 shall remain operative and in full force and effect regardless of (a) any investigation
made by or on behalf of any Dealer, or any person controlling any Dealer or by or on behalf of the Company, the Dealer Manager
or any officer or director thereof, or by or on behalf of the Company or the Dealer Manager, (b) delivery of any Shares and payment
therefor, and (c) any termination of this Dealer Manager Agreement or any Participating Dealer Agreement. A successor of any Dealer
or of any of the parties to this Dealer Manager Agreement, as the case may be, shall be entitled to the benefits of the indemnity
agreements contained in this Section 5.

 

		6.	Survival of
Provisions.

 

The respective agreements,
representations and warranties of the Company and the Dealer Manager set forth in this Dealer Manager Agreement shall remain operative
and in full force and effect regardless of (a) any termination of this Dealer Manager Agreement, (b) any investigation made by
or on behalf of the Dealer Manager or any Dealer or any person controlling the Dealer Manager or any Dealer or by or on behalf
of the Company or any person controlling the Company, and (c) the acceptance of any payment for the Shares.

 

    	 	14	 

     

    

 

		7.	Applicable Law
and Venue.

 

This Dealer Manager Agreement
was executed and delivered in, and its validity, interpretation and construction shall be governed by, the laws of the State of
New York; provided however, that causes of action for violations of federal or state securities laws shall not be governed by this
Section. The Company, the Dealer Manager and each Dealer hereby agree that venue for any action brought in connection with this
Dealer Manager Agreement shall lie exclusively in Los Angeles, California.

 

		8.	Counterparts.

 

This Dealer Manager Agreement
may be executed in any number of counterparts. Each counterpart, when executed and delivered, shall be an original contract, but
all counterparts, when taken together, shall constitute one and the same agreement.

 

		9.	Successors and
Amendments.

 

9.1           This
Dealer Manager Agreement shall inure to the benefit of and be binding upon the Dealer Manager, the Company, and their respective
successors, and to the benefit of the Dealers to the extent set forth in Sections 1 and 5 hereof. Nothing in this Dealer Manager
Agreement is intended or shall be construed to give to any other person any right, remedy or claim, except as otherwise specifically
provided herein.

 

9.2           This
Dealer Manager Agreement may be amended by the written agreement of the Dealer Manager and the Company.

 

		10.	Term.

 

10.1         This
Dealer Manager Agreement may be terminated by either party (a) immediately upon notice to the other party in the event that the
other party shall have materially failed to comply with any of the material provisions of this Dealer Manager Agreement on its
part to be performed during the term of this Dealer Manager Agreement or if any of the representations, warranties, covenants or
agreements of such party contained herein shall not have been materially complied with or satisfied within the times specified
or (b) by either party on 60 days’ written notice.

 

10.2         In
any case, this Dealer Manager Agreement shall expire at the close of business on the effective date that the primary portion of
the Offering is terminated. The provisions of Sections 5 and 7 hereof shall survive such termination. In addition, the Dealer Manager,
upon the expiration or termination of this Dealer Manager Agreement, shall (1) promptly deposit any and all funds in its possession
which were received from investors for the sale of Shares into the appropriate escrow account or, if the minimum number of Shares
have been sold and accepted by the Company, into such other account as the Company may designate; and (2) promptly deliver to the
Company all records and documents in its possession which relate to the Offering which are not designated as dealer copies. The
Dealer Manager, at its sole expense, may make and retain copies of all such records and documents, but shall keep all such information
confidential. The Dealer Manager shall use its best efforts to cooperate with the Company to accomplish any orderly transfer of
management of the Offering to a party designated by the Company. Upon expiration or termination of this Dealer Manager Agreement,
the Company shall pay to the Dealer Manager all commissions to which the Dealer Manager is or becomes entitled under Section 4
at such time as such commissions become payable.

 

    	 	15	 

     

    

 

		11.	Confirmations.

 

The Company hereby agrees
to prepare and send confirmations to all purchasers of Shares whose subscriptions for the purchase of Shares are accepted by the
Company.

 

		12.	Suitability
of Investors.

 

12.1         The
Dealer Manager will offer Shares, and in its agreements with Dealers will require that the Dealers offer Shares, only to persons
who meet the financial qualifications and suitability standards set forth in the Private Placement Memorandum or in any suitability
letter or memorandum sent to it by the Company and will only make offers to persons in the states in which it is advised in writing
that the Shares are qualified for sale or that such qualification is not required. In offering Shares, the Dealer Manager will,
and in its agreements with Dealers, the Dealer Manager will, require that the Dealer comply with the provisions of all applicable
rules and regulations relating to suitability of investors, including without limitation, the provisions of Regulation D, Rule
506 promulgated under the Securities Act and FINRA Rule 2111.

 

12.2         The
Dealer Manager shall maintain, or in its agreements with Dealers shall require the Dealers to maintain, for the period required
by applicable law, a record of the information obtained to determine that an investor meets the financial qualification and suitability
standards imposed on the offer and sale of the Shares (both at the time of the initial subscription and at the time of any additional
subscriptions, including initial enrollments and increased participations in the DRP).

 

12.3         In
making these determinations as to financial qualification and suitability, the Dealer Manager may rely on representations from
(a) investment advisers who are not affiliated with a Dealer or (b) banks acting as trustees or fiduciaries. With respect to the
Dealer Manager’s obligation to maintain records of an investor’s financial qualification and suitability, the Company
agrees that the Dealer Manager can satisfy its obligations by contractually requiring such information to be maintained by the
investment advisers or banks discussed in the preceding sentence.

 

		13.	Submission of
Orders.

 

13.1         Subscribers
may purchase Shares utilizing checks, drafts, wires, Automatic Clearing House (ACH) or money orders. Those persons who purchase
Shares will be instructed by the Dealer Manager or the Dealer to make their instruments of payment payable to the Company, except
with respect to Benefit Plan investors. Checks from Benefit Plan investors must be made payable to “UMB Bank, N.A., as escrow
agent for Phillips Edison Grocery Center REIT III, Inc.” until the Company determines that it is no longer necessary to limit
participation by Benefit Plan investors as described in the Private Placement Memorandum (the “Benefit Plan Determination”).The
Dealer Manager and any Dealer receiving an instrument of payment not conforming to the foregoing instructions shall return such
instrument of payment directly to such subscriber promptly the next business day following its receipt. Instruments of payment
received by the Dealer Manager or Dealer which conform to the foregoing instructions shall be transmitted for deposit by noon of
the next business day pursuant to one of the methods described in this Section 13. Transmittal of received investor funds will
be made in accordance with the following procedures.

 

13.2         Where,
pursuant to a Dealer’s internal supervisory procedures, internal supervisory review is conducted at the same location at
which subscription documents and instruments of payment are received from subscribers, instruments of payment will be transmitted
promptly the next business day following receipt by the for deposit directly with the Company, except for investments from Benefit
Plan investors. The Dealer will transmit checks from Benefit Plan investors for deposit to the escrow agent for the Company or,
after the Benefit Plan Determination has been made, to the Company or its agent.

 

    	 	16	 

     

    

 

13.3         Where,
pursuant to a Dealer’s internal supervisory procedures, final internal supervisory review is conducted at a different location,
instruments of payment will be transmitted promptly the next business day following receipt by the Dealer to the office of the
Dealer conducting such final internal supervisory review (the “Final Review Office”). The Final Review Office
will in turn transmit promptly the next business day following receipt at a different location by the Final Review Office such
instruments of payment for deposit directly with the Company, except for investments from Benefit Plan investors. The Final Review
Office will transmit checks from Benefit Plan investors for deposit to the escrow agent for the Company or, after the Benefit Plan
Determination has been made, to the Company or its agent..

 

		14.	Notice.

 

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

 

	 	To Company:	
        Phillips Edison
        Grocery Center REIT III, Inc.

        Attention: Jeffrey
        S. Edison

        222 S. Main Street,
        Suite 1730

        Salt Lake City,
        UT 84101

         

	 	 	
        with a copy to:

         

        DLA Piper LLP (US)

        Attention:
        Robert Bergdolt, Esq.

        4141 Parklake Drive,
        Suite 300

        Raleigh, North
        Carolina 27612

         

	 	To Dealer Manager:	
        Griffin Capital
        Securities, LLC

        Attention: Kevin
        A. Shields

        1520 E. Grand Ave.

        El Segundo, California
        90245

         

        with a copy to:

         

        Griffin Capital Securities, LLC

        Attention: Charles Huang

        18191 Von Karman Avenue, Suite 300

        Irvine, California 92612

 

Any party may at any time
give notice in writing to the other party of a change in its address for the purposes of this Section 14.

 

    	 	17	 

     

    

 

		15.	Severability.

 

In the event that any court
of competent jurisdiction declares any provision of this Dealer Manager Agreement invalid, such invalidity shall have no effect
on the other provisions hereof, which shall remain valid and binding and in full force and effect, and to that end the provisions
of this Dealer Manager Agreement shall be considered severable.

 

		16.	No Waiver.

 

Failure by either party
to promptly insist upon strict compliance with any of the obligations of the other party under this Dealer Manager Agreement shall
not be deemed to constitute a waiver of the right to enforce strict compliance with respect to any obligation hereunder.

 

		17.	Assignment.

 

This Dealer Manager Agreement
may not be assigned by either party, except with the prior written consent of the other party. This Dealer Manager Agreement shall
be binding upon the parties hereto, their heirs, legal representatives, successors and permitted assigns.

 

If the foregoing correctly
sets forth our understanding, please indicate your acceptance thereof in the space provided below for that purpose, whereupon this
letter and your acceptance shall constitute a binding agreement between us as of the date first above written.

 

	 	Very truly yours,
	 	 
	 	PHILLIPS EDISON GROCERY CENTER REIT III, INC.
	 	 	 	 
	 	By:	/s/ Jeffrey S. Edison	 
	 	 	Jeffrey S. Edison	 
	 	 	Chief Executive Officer	 

 

	 	Accepted and agreed as of the date first above written.	 
	 	 	 
	 	GRIFFIN CAPITAL SECURITIES, LLC	 
	 	 	 	 
	 	By:	/s/ Kevin A. Shields	 
	 	 	 
	 	Kevin A. Shields, Chief Executive Officer	 

 

    	 	18	 

     

    

 

Exhibit
a to dealer manager agreement

 

PHILLIPS EDISON GROCERY CENTER REIT III, INC.

 

Up to
$220 million in Class A Shares of Common Stock

Offered to accredited investors only

 

FORM OF PARTICIPATING DEALER AGREEMENT

 

Ladies and Gentlemen:

 

Griffin Capital Securities, LLC, as the dealer
manager (the “Dealer Manager”) for Phillips Edison Grocery Center REIT III, Inc. (the “Company”),
a Maryland corporation, invites you (the “Dealer”) to participate in the distribution of shares of common stock
(the “Shares”) of the Company, consisting of Class A shares, subject to the following terms:

 

		I.	Dealer Manager Agreement.

 

The Dealer Manager and the Company have entered
into that certain Dealer Manager Agreement, dated October __, 2016, in the form attached hereto. By your acceptance of this Participating
Dealer Agreement, you will become one of the Dealers referred to in such Dealer Manager Agreement between the Company and the Dealer
Manager and will be entitled and subject to the indemnification provisions contained in such Dealer Manager Agreement, including
specifically the provisions of Section 5.6 of such Dealer Manager Agreement, wherein each Dealer severally agrees to indemnify
and hold harmless the Company, the Dealer Manager and each officer and director thereof, and each person, if any, who controls
the Company and the Dealer Manager within the meaning of the Securities Act of 1933, as amended (the “Securities Act”)
or the Securities Exchange Act of 1934, as amended (the “Exchange Act”) for the matters set forth in Section
5.6 of the Dealer Manager Agreement. Such indemnification obligations shall survive the termination of this Participating Dealer
Agreement. Except as otherwise specifically stated herein, all terms used in this Participating Dealer Agreement but not otherwise
defined herein shall have the meanings provided in the Dealer Manager Agreement. The Shares are offered solely through broker-dealers
who are members of the Financial Industry Regulatory Authority (“FINRA”).

 

Dealer hereby agrees to use its best efforts
to sell the Shares for cash on the terms and conditions stated in the Company’s Confidential Private Placement Memorandum
dated October __, 2016, as it may be amended or supplemented from time to time (the “Private Placement Memorandum”).
Nothing in this Participating Dealer Agreement shall be deemed or construed to make Dealer an employee, agent, representative or
partner of the Dealer Manager or of the Company, and Dealer is not authorized to act for the Dealer Manager or the Company or to
make any representations except as set forth in the Private Placement Memorandum and Authorized Sales Materials.

 

		II.	Submission of Orders.

 

Those persons who purchase Shares will be instructed
by the Dealer to make their instruments of payment payable to Phillips Edison Grocery Center REIT III, Inc., except with respect
to Benefit Plan investors. Checks from Benefit Plan investors must be made payable to “UMB Bank, N.A., Escrow Agent for Phillips
Edison Grocery Center REIT III, Inc.” until the Benefit Plan Determination has been made. The Dealer will return any instrument
of payment it receives not conforming to the foregoing instructions directly to such subscriber not later than noon Eastern Time
of the next business day following its receipt. Instruments of payment received by the Dealer which conform to the foregoing instructions
shall be transmitted for deposit pursuant to one of the methods in this Article II. Transmittal of received investor funds will
be made in accordance with the following procedures:

 

    	 	A-1	 

     

    

 

Where, pursuant to the Dealer’s internal
supervisory procedures, internal supervisory review is conducted at the same location at which subscription documents and instruments
of payment are received from subscribers, instruments of payment will be transmitted by noon of the next business day following
receipt by the Dealer to the Company’s transfer agent for deposit directly with the Company, except for investments from
Benefit Plan investors. The Dealer will transmit checks from Benefit Plan investors for deposit to the escrow agent for the Company
or, after the Benefit Plan Determination has been made, to the Company or its agent.

 

Where, pursuant to the Dealer’s internal
supervisory procedures, final internal supervisory review is conducted at a different location, instruments of payment will be
transmitted by noon of the next business day following receipt by the Dealer to the office of the Dealer conducting such final
internal supervisory review (the “Final Review Office”). The Final Review Office will in turn transmit by 5:00
pm of the next business day following receipt by the Final Review Office such instruments of payment to the Company’s transfer
agent for deposit directly with the Company, except for investments from Benefit Plan investors. The Final Review Office will transmit
checks from Benefit Plan investors for deposit to the escrow agent for the Company or, after the Benefit Plan Determination has
been made, to the Company or its agent.

 

		III.	Pricing.

 

Except as may be otherwise provided for in the
“Plan of Distribution” section of the Private Placement Memorandum (as amended and supplemented), the Shares shall
be offered at an initial offering price of $10.00 per Share and Shares shall be offered pursuant to the Company’s distribution
reinvestment plan at a purchase price of $9.50 per Share. Except as otherwise indicated in the Private Placement Memorandum or
in any letter or memorandum sent to the Dealer by the Company or Dealer Manager, a minimum initial purchase of $100,000 in Shares
is required. The Shares are nonassessable.

 

		IV.	Representations and Warranties
of Dealer.

 

Dealer
represents and warrants to the Company and the Dealer Manager and agrees that:

 

A.           Dealer
will undertake all reasonable investigation, review, and inquiry to ensure, to the best of its reasonable knowledge and belief,
that the investment is suitable for such potential investor upon the basis of the information known to Dealer or disclosed by such
potential investor as to his other security holdings and as to his financial situation and needs. Dealer shall keep written records
for the period required by applicable law supporting this representation and warranty and such records shall be made available
to the Company or Dealer Manager promptly upon request.

 

B.           Dealer
shall deliver to each prospective investor, prior to any submission by such prospective investor, a written offer to buy any Shares,
a copy of the Private Placement Memorandum.

 

C.           Dealer
will not deliver to any offeree any written documents pertaining to the Company or the Shares, other than the Private Placement
Memorandum, Authorized Sales Materials, and any other materials specifically designated for distribution to prospective investors
that are supplied to Dealer by the Company or its affiliates. Without intending to limit the generality of the foregoing, Dealer
shall not deliver to any prospective investor any material pertaining to the Company or any of its affiliates that has been furnished
as “broker/dealer information only.”

 

    	 	A-2	 

     

    

 

D.           Dealer
will make reasonable inquiry to determine whether a prospective investor is acquiring Shares for his own account or on behalf of
other persons and not for the purpose of resale or other distribution thereof.

 

E.           Dealer
will not give any information or make any representation or warranty in connection with the Offering, the Company or the Shares
other than those contained in the Private Placement Memorandum and any Authorized Sales Materials.

 

F.           Dealer
will abide by, and will take reasonable precautions to ensure compliance by prospective investors from whom Dealer has solicited
an offer to purchase, all provisions contained in the Private Placement Memorandum regulating the terms and manner of the Offering.

 

G.           In
its solicitation of offers for the Shares, Dealer will comply with all applicable requirements of the Securities Act, the Exchange
Act, as well as the published rules and regulations promulgated under each of the Securities Act and the Exchange Act, and the
rules and regulations of all state securities authorities.

 

H.           Dealer
is (and will continue to be) a member in good standing with FINRA, will abide by the rules and regulations of FINRA, is in full
compliance with all applicable requirements under the Exchange Act, and is registered as a broker-dealer in all of the jurisdictions
in which Dealer solicits offers to purchase the Shares.

 

I.           Dealer
will not take any action in conflict with, or omit to take any action the omission of which would cause Dealer to be in conflict
with, the conditions and requirements of the Securities Act, the Exchange Act, or applicable state securities or blue sky laws.

 

J.           Dealer
will use reasonable efforts to ensure that all investors who are acquiring Shares have and will satisfy all conditions described
in the Private Placement Memorandum and the Subscription Agreement.

 

K.          Each
of the representations and warranties made by each prospective investor to the Company under the Subscription Agreement, is, to
the Dealer’s best knowledge, information, and belief, after due inquiry, true and correct as of the date thereof and as of
the date of purchase of the Shares by such investor.

 

L.           Further,
the Dealer specifically agrees as set forth below:

 

(1)         Shares
shall not be offered and/or sold by the Dealer by means of any form of general solicitation or general advertising, including,
but not limited to, the following:

 

		(a)	any advertisement, article, notice, or other communication published in any newspaper, magazine or similar media, cold mass
mailings, broadcasts over television or radio, material contained on a website available to the public or an e-mail message sent
to a large number of previously unknown persons;

 

		(b)	any seminar or meeting whose attendees have been invited
by any general solicitation or general advertising; or

 

    	 	A-3	 

     

    

 

		(c)	any letter, circular, notice, or other written communication
constituting a form of general solicitation or general advertising.

 

(2)         In
connection with any offer or sale of the Shares, the Dealer agrees to the following:

 

		(a)	to comply in all respects with statements set forth in the Private Placement Memorandum and any supplements or amendments to
the Private Placement Memorandum;

 

		(b)	not to make any statement inconsistent with the statements in the Private Placement Memorandum and any supplements or amendments
to the Private Placement Memorandum;

 

		(c)	not to make any untrue or misleading statements of a material fact in connection with the Shares; and

 

		(d)	not to provide any written information, statements, or sales materials other than the Private Placement Memorandum and any
supplements or amendments thereto and any Authorized Sales Materials, unless approved in writing by the Dealer Manager.

 

(3)         The
Dealer:

 

		(a)	acknowledges that any Registration Statement on Form S-11 or any draft registration statement submitted
confidentially to the SEC pursuant to Section 6(e) of the Securities Act for an initial public offering of the shares of common
stock of the Company (the “Registration Statement”) relates only to the initial public offering of shares of
common stock of the Company and not to this Offering;

 

		(b)	agrees that it will not utilize the Registration Statement or the prospectus that forms a part
thereof in connection with the marketing of this Offering; and

 

		(c)	agrees that it will not offer or sell Shares in this Offering
to any person who contacts the Dealer as a result of reviewing or receiving the Registration Statement or the prospectus that
forms a part thereof.

 

(4)         The
Dealer shall advise each offeree of Shares in the Company at the time of the initial offering to such offeree that the Company
shall, during the course of the Offering and a reasonable time before sale, accord offeree and offeree’s agents or representatives,
if any, the opportunity to ask questions and receive answers concerning the terms and conditions of the Offering and to obtain
any additional information, to the extent possessed or obtainable by the Company without unreasonable effort or expense, that is
necessary to verify the accuracy of the information contained in the Private Placement Memorandum.

 

    	 	A-4	 

     

    

 

(5)         Before
the sale of any of the Shares, the Dealer shall make reasonable inquiry to determine if the offeree is acquiring the Shares for
offeree’s own account or on behalf of other persons, and that the offeree understands the limitations on the offeree’s
disposition of the Shares set forth in Rule 502(d) of Regulation D. This includes a determination by the Dealer that the offeree
understands that he must bear the economic risk of the investment for an indefinite period of time because the Shares have not
been registered under the Securities Act and, thus, cannot be sold unless the Shares are subsequently registered under the Securities
Act or an exemption from registration under the Securities Act is available.

 

(6)         Before
the sale of any of the Shares, the Dealer shall:

 

		(a)	have reasonable grounds to believe that each subscriber is an “accredited investor” as that term is then defined
in Rule 501(a) of Regulation D; and

 

		(b)	have sufficient information concerning the offeree to determine that the offeree has such knowledge and experience in financial
and business matters that the offeree is capable of evaluating the merits and risks of an investment in the Company.

 

(7)         The
Dealer shall not distribute a Private Placement Memorandum, supplement or amendment thereto or any supplemental information to
any offeree with whom the Dealer does not have a pre-existing substantive relationship, as defined from time to time by the SEC.
The SEC makes this determination on a case-by-case basis, taking into account all relevant facts and circumstances. However, generally,
such relationship must exist before the date on which the Dealer enters into this Agreement and must allow the Dealer to determine
and understand the prospective investor’s investment objectives, sophistication and financial situation and whether an investment
in the Shares is suitable for such prospective investor.

 

(8)         The
Dealer shall complete and deliver to the Dealer Manager or the Company such certifications or other documentation requested by
such parties regarding the Dealer’s determinations referenced in paragraphs (4) through (7) above, including, without limitation,
a certificate stating the number of each Private Placement Memorandum delivered to each offeree, and a confirmation that the Dealer
reasonably believes that each such offeree is an “accredited investor” as that term is then defined in Rule 501(a)
of Regulation D.

 

(9)         Shares shall not be sold by the
Dealer to any non-accredited investors.

 

M.          The
Dealer represents that neither it, nor any of its directors, executive officers, general partners, managing members or other officers
participating in the offering of Shares, nor any of the directors, executive officers or other officers participating in the offering
of Shares of any such general partner or managing member, nor any other officers, employees or associated persons of the Dealer
or any such general partner or managing member that have been or will be paid (directly or indirectly) remuneration for solicitation
of purchasers in connection with the sale of any Shares (each, a “Dealer Covered Person” and, together, “Dealer
Covered Persons”), is subject to any Disqualification Event except for a Disqualification Event (i) contemplated by Rule
506(d)(2) of the Securities Act and (ii) a description of which has been furnished in writing to the Dealer Manager prior to the
date hereof.

 

    	 	A-5	 

     

    

 

N.           The
Dealer represents that it is not a party to any agreement other than this Agreement regarding the payment (directly or indirectly)
of remuneration for solicitation of purchasers in connection with the sale of any Shares. The Dealer will notify the Dealer Manager
of any such agreement entered into between the Dealer and any other person.

 

O.           The
representations and warranties in Sections IV M. and N. above are and shall be continuing representations and warranties throughout
the term of the Offering. The Dealer will notify the Dealer Manager in writing promptly upon the occurrence of (i) any Disqualification
Event relating to any Dealer Covered Person not previously disclosed to the Company in accordance with Section IV M. above, and
(ii) any event that would, with the passage of time, become a Disqualification Event relating to any Dealer Covered Person.

 

P.           The
Dealer shall provide to the Dealer Manager or the Company such certifications, documentation and other information as reasonably
requested from time to time by the Dealer Manager or the Company as such parties deem necessary or advisable to carry out the exercise
of reasonable care under Rule 506(d) and (e) under the Securities Act in connection with this Offering.

 

Q.           The
Dealer agrees to be bound by the terms of the Escrow Agreement dated October __, 2016, among UMB Bank, N.A., as escrow agent, the
Dealer Manager and the Company, and the Dealer further agrees that it will not represent or imply that UMB Bank, N.A., as the escrow
agent identified in the Private Placement Memorandum, has investigated the desirability or advisability of an investment in the
Company or has approved, endorsed or passed upon the merits of the Shares or of the Company, nor will the Dealer use the name of
said escrow agent in any manner whatsoever in connection with the offer or sale of the Shares other than by acknowledgment that
it has agreed to serve as escrow agent.

 

		V.	Dealer’s Commissions.

 

Except as otherwise provided in the “Plan
of Distribution” section of the Private Placement Memorandum (as amended and supplemented), the Dealer’s sales commission
applicable to the Shares sold by the Dealer, which it is authorized to sell hereunder, is 7.0% of the gross proceeds of the Shares
sold by it and accepted and confirmed by the Company, which commissions will be payable by the Dealer Manager. In
addition, as set forth in the Private Placement Memorandum, the Dealer Manager may, in its sole discretion, re-allow a portion
of its dealer manager fee to Dealers participating in the offering of Shares as marketing fees, reimbursement of costs and expenses
of attending educational conferences or to defray other distribution-related expenses pursuant to a separate marketing fee agreement.
No sales commissions or dealer manager fees shall be paid with respect to Shares issued and sold pursuant to the Company’s
distribution reinvestment plan. For these purposes, shares shall be deemed to be “sold” if and only if a transaction
has closed with a subscriber for Shares pursuant to all applicable offering and subscription documents, the Company has accepted
the subscription agreement of such subscriber, and such Shares have been fully paid for. The Dealer affirms that the Dealer Manager’s
liability for commissions and dealer manager fees payable is limited solely to the proceeds of commissions and dealer manager fees
receivable from the Company, and the Dealer hereby waives any and all rights to receive payment of commissions and dealer manager
fees due until such time as the Dealer Manager is in receipt of the commissions and dealer manager fees from the Company.

 

The parties hereby agree that the foregoing
commissions and dealer manager fees are not in excess of the usual and customary distributors’ or sellers’ commission
received in the sale of securities similar to the Shares, that Dealer’s interest in the offering is limited to such commissions
and dealer manager fees from the Dealer Manager and Dealer’s indemnity referred to in Section 5 of the Dealer Manager Agreement
and that the Company is not liable or responsible for the direct payment of such commissions or dealer manager fees to the Dealer.
In addition, as set forth in the Private Placement Memorandum, the Dealer Manager may reimburse Dealer for reasonable bona fide
due diligence expenses incurred by Dealer. The Dealer Manager shall have the right to require the Dealer to provide a detailed
and itemized invoice as a condition to the reimbursement of any such due diligence expenses.

 

    	 	A-6	 

     

    

 

		VI.	Survival; Applicability
of Indemnification.

 

Each of the Dealer and Dealer
Manager hereby acknowledges and agrees that it will be subject to the obligations set forth in, and entitled to the benefits of
all the provisions of, the Dealer Manager Agreement, including but not limited to, the representations and warranties and the indemnification
obligations contained in such Dealer Manager Agreement, including specifically the provisions of Sections 5.3 through 5.5 of the
Dealer Manager Agreement. Such indemnification obligations shall survive the termination of this Participating Dealer Agreement
and the Dealer Manager Agreement. The respective agreements, representations and warranties of the Dealer and the Dealer Manager
set forth in this Participating Dealer Agreement, shall survive the termination of this Participating Dealer Agreement and the
Dealer Manager Agreement.

 

		VII.	Payment.

 

Payments of sales commissions will be made by
the Dealer Manager (or by the Company as provided in the Dealer Manager Agreement) to the Dealer within 30 days of the receipt
by the Dealer Manager of the gross commission payments from the Company. Dealer acknowledges that, if the Company pays selling
commissions or dealer manager fees, as applicable, to the Dealer Manager, the Company is relieved of any obligation for selling
commissions or dealer manager fees, as applicable, to the Dealer. The Company may rely on and use the preceding acknowledgment
as a defense against any claim by the Dealer for selling commissions or dealer manager fees, as applicable, the Company pays to
Dealer Manager but that Dealer Manager fails to remit to the Dealer.

 

		VIII.	Right to Reject Orders or Cancel Sales.

 

All orders, whether initial or additional, are
subject to acceptance by and shall only become effective upon confirmation by the Company, which reserves the right to reject any
order. Orders not accompanied by a Subscription Agreement Signature Page and the required instrument of payment in payment for
the Shares may be rejected. Issuance of the Shares will be made only after actual receipt of payment therefor. If any instrument
of payment is not paid upon presentment, or if the Company is not in actual receipt of clearinghouse funds or cash, certified or
cashier’s check or the equivalent in payment for the Shares within 15 days of sale, the Company reserves the right to cancel
the sale without notice. In the event an order is rejected, canceled or rescinded for any reason, the Dealer agrees to return to
the Dealer Manager any commission theretofore paid with respect to such order within 30 days thereafter and, failing to do so,
the Dealer Manager shall have the right to offset amounts owed against future commissions due and otherwise payable to the Dealer.

 

		IX.	Representations, Covenants and Agreements of the Dealer
Manager.

 

		9.1	The Dealer Manager represents that neither it, nor any
of its directors, executive officers, general partners, managing members or other officers participating in the offering of Shares,
nor any of the directors, executive officers or other officers participating in the offering of Shares of any such general partner
or managing member, nor any other officers, employees or associated persons of the Dealer Manager or any such general partner
or managing member that have been or will be paid (directly or indirectly) remuneration for solicitation of purchasers in connection
with the sale of any Shares (each, a “Dealer Manager Covered Person” and, together, “Dealer Manager
Covered Persons”), is subject to any Disqualification Event except for a Disqualification Event (i) contemplated by
Rule 506(d)(2) of the Securities Act and (ii) a description of which has been furnished in writing to the Dealer prior to the
date hereof.

 

    	 	A-7	 

     

    

 

		9.2	The Dealer Manager will notify the Dealer in writing promptly
upon the occurrence of (i) any Disqualification Event relating to any Dealer Manager Covered Person not previously disclosed to
the Dealer in accordance with Section 9.1 above, and (ii) any event that would, with the passage of time, become a Disqualification
Event relating to any Dealer Manager Covered Person. The Dealer Manager will also notify the Dealer in writing promptly upon receiving
notification from (x) the Company of the occurrence of any Disqualification Event relating to any Company Covered Persons and
any event that would, with the passage of time, become a Disqualification Event relating to any Company Covered Persons, or (y)
any other Dealer of the occurrence of any Disqualification Event relating to any such Dealer’s Dealer Covered Persons and
any event that would, with the passage of time, become a Disqualification Event relating to any such Dealer’s Dealer Covered
Persons.

 

		X.	Private Placement Memorandum and Sales Literature.

 

Dealer is not authorized or permitted to give,
and will not give, any information or make any representation (written or oral) concerning the Shares, except as set forth in the
Private Placement Memorandum as amended and supplemented or in the Authorized Sales Materials. The Dealer Manager will supply Dealer
with reasonable quantities of the Private Placement Memorandum, including amendments of and supplements to the Private Placement
Memorandum, and any Authorized Sales Materials, for delivery to investors, with each such initial Private Placement Memorandum
and any amended Private Placement Memorandum being numbered. Dealer will deliver a copy of the Private Placement Memorandum, including
any amendments and supplements thereto, each identified by number, to each investor to whom an offer is made prior to or simultaneously
with the first solicitation of an offer to sell the Shares to an investor. When a supplement or amendment to the Private Placement
Memorandum is prepared and delivered to the Dealer by the Company or the Dealer Manager after delivery of the Private Placement
Memorandum to an investor, the Dealer shall distribute each such supplement or amendment to the Private Placement Memorandum to
every person who has previously received a copy of the Private Placement Memorandum from the Dealer. The Dealer shall keep memoranda
in its records indicating to whom each Private Placement Memorandum, supplement or amendment thereto, and supplemental material
was delivered, which memoranda shall further indicate by number to whom each initial Private Placement Memorandum and any amended
and restated Private Placement Memorandum was delivered. The Dealer further agrees to make such records available to the Dealer
Manager and the Company upon request and to make them available to representatives of the SEC and FINRA and applicable state securities
administrators upon the Dealer’s receipt of a subpoena or other appropriate document request from such agency. Dealer will
not send or give any Authorized Sales Materials to an investor unless it has previously sent or given a Private Placement Memorandum
to that investor or has simultaneously sent or given a Private Placement Memorandum with such Authorized Sales Materials.

 

Dealer agrees that it will not show or give
to any investor or prospective investor or reproduce any material or writing which is supplied to it by the Dealer Manager and
marked “broker-dealer use only” or otherwise bearing a legend denoting that it is not to be used in connection with
the sale of Shares to members of the public. Dealer agrees that it will not use in connection with the offer or sale of Shares
any material or writing supplied to it by the Company or the Dealer Manager bearing a legend which states that such material may
not be used in connection with the offer or sale of the Shares or any other securities of the Company. Dealer further agrees that
it will not use in connection with the offer or sale of Shares any materials or writings which have not been previously authorized
or approved by the Dealer Manager. On becoming a Dealer, and in offering and selling Shares, the Dealer agrees to comply with all
the applicable requirements under the Securities Act, the Exchange Act, applicable rules and regulations promulgated by the SEC,
including Regulation D promulgated under the Securities Act, and applicable state securities laws and regulations.

 

    	 	A-8	 

     

    

 

		XI.	License and Association Membership.

 

Dealer’s
acceptance of this Participating Dealer Agreement constitutes a representation to the Company and the Dealer Manager that Dealer
is a properly registered broker-dealer under the Exchange Act, is duly licensed as a broker-dealer and authorized to sell Shares
under Federal and state securities laws and regulations and in all states where it offers or sells Shares, and that it is a member
in good standing of FINRA. Dealer agrees to notify the Dealer Manager immediately in writing and this Participating Dealer Agreement
shall automatically terminate if Dealer ceases to be a member in good standing of FINRA, is subject to a FINRA suspension, or its
registration as a broker-dealer under the Exchange Act is terminated or suspended. Dealer hereby agrees to abide by all applicable
rules of FINRA (the “FINRA Rules”).

 

Dealer
Manager represents and warrants that it is currently, and at all times while performing its functions under this Participating
Dealer Agreement will be, a properly registered broker-dealer under the Exchange Act and under state securities laws to the extent
necessary to perform the duties described in this Participating Dealer Agreement, and that it is a member in good standing of FINRA.
The Dealer Manager agrees to notify Dealer immediately in writing if it ceases to be a member in good standing with FINRA, is subject
to a FINRA suspension, or its registration as a broker-dealer under the Exchange Act is terminated or suspended. The Dealer Manager
hereby agrees to abide by all applicable NASD Conduct Rules under FINRA and other applicable FINRA Rules.

 

		XII.	Anti-Money Laundering Compliance Programs.

 

Dealer’s
acceptance of this Participating Dealer Agreement constitutes a representation to the Company and the Dealer Manager that Dealer
has established and implemented an anti-money laundering compliance program (“AML Program”) in accordance with
applicable law, including applicable NASD Conduct Rules under FINRA and other applicable FINRA Rules, SEC Rules and Section 352
of the Money Laundering Abatement Act, reasonably expected to detect and cause the reporting of suspicious transactions in connection
with the sale of Shares of the Company. Dealer hereby agrees to furnish, upon request, a copy of its AML Program to the Dealer
Manager for review and to promptly notify the Dealer Manager of any material changes to its AML Program.

 

		XIII.	Limitation of Offer and Suitability.

 

Dealer
will offer Shares only to persons who meet the suitability standards set forth in the Private Placement Memorandum or in any suitability
letter or memorandum sent to it by the Company or the Dealer Manager and will only make offers to persons in the states in which
it is advised in writing that the Shares are qualified for sale or that such qualification is not required.

 

In
offering Shares, Dealer will comply with the provisions of the applicable NASD Conduct Rules under FINRA and other applicable FINRA
Rules, as well as all other applicable rules and regulations relating to suitability of investors, including without limitation,
the provisions of Regulation D, Rule 506 promulgated under the Securities Act and FINRA Rule 2111. Nothing contained in this Participating
Dealer Agreement shall be construed to impose upon the Company or the Dealer Manager the responsibility of assuring that prospective
investors meet the suitability standards set forth in the Private Placement Memorandum, or to relieve Dealer from the responsibility
of assuring that prospective investors meet the suitability standards in accordance with the terms and provisions of the Private
Placement Memorandum.

 

    	 	A-9	 

     

    

 

Dealer
further represents, warrants and covenants that no Dealer, or person associated with Dealer, shall offer or sell Shares in any
jurisdiction except to investors who satisfy the investor suitability standards and minimum investment requirements under the most
restrictive of the following: (1) applicable provisions of the Private Placement Memorandum; (2) the laws of the jurisdiction of
which such investor is a resident; or (3) NASD Conduct Rules under FINRA and other applicable FINRA Rules including FINRA Rule
2110. Dealer agrees to ensure that, in recommending the purchase, sale or exchange of Shares to an investor, each Dealer, or person
associated with Dealer, shall have reasonable grounds (as required by FINRA Rule 2111) to believe, on the basis of information
obtained from the investor concerning his age, other investments, financial situation and needs, tax status, investment objectives,
investment experience, investment time horizon, liquidity needs, risk tolerance and any other information known to Dealer, or person
associated with Dealer, that the investment is suitable for the investor. Dealer further represents, warrants and covenants that
Dealer, or a person associated with Dealer, will make every reasonable effort to determine the suitability and appropriateness
of an investment in Shares of each proposed investor by reviewing documents and records disclosing the basis upon which the determination
as to suitability was reached as to each purchaser of Shares pursuant to a subscription solicited by Dealer, whether such documents
and records relate to accounts which have been closed, accounts which are currently maintained, or accounts hereafter established.
Dealer agrees to retain such documents and records in Dealer’s records for the period required by applicable law and to make
such documents and records available to (i) the Dealer Manager and the Company upon request, and (ii) to representatives of the
SEC, FINRA and applicable state securities administrators upon your firm’s receipt of an appropriate document subpoena or
other appropriate request for documents from any such agency. Dealer shall not purchase any Shares for a discretionary account
without obtaining the prior written approval of Dealer’s customer and his or her signature on a Subscription Agreement.

 

		XIV.	Due Diligence and Adequate Disclosure.

 

Dealer
understands that the Company, the Dealer Manager or third party due diligence providers may from time to time furnish Dealer with
certain information which is non-public, confidential or proprietary in nature (the “Due Diligence Information”)
in connection with its due diligence obligations under FINRA rules and federal securities laws. Dealer agrees that the Due Diligence
Information will be kept confidential and shall not, without the Company’s, the Dealer Manager’s or such third party’s
prior written consent, be disclosed by Dealer, or by Dealer’s affiliates, agents, representatives or employees, in any manner
whatsoever, in whole or in part, and shall not be used by Dealer, its agents, representatives or employees, other than in connection
with Dealer’s due diligence evaluation of the Offering. Dealer agrees to reveal the Due Diligence Information only to its
affiliates, agents, representatives and employees who need to know the Due Diligence Information for the purpose of the due diligence
evaluation. Further, Dealer and its affiliates, agents, representatives and employees will not disclose to any person the fact
that the Due Diligence Information has been made available to it.

 

The
term “Due Diligence Information” shall not include information which (1) is already in Dealer’s possession or
in the possession of Dealer’s parent corporation or affiliates, provided that such information is not known by Dealer to
be subject to another confidentiality agreement with or other obligation of secrecy to the Company or another party, (2) is or
becomes generally available to the public other than as a result of a disclosure by Dealer, its affiliates, or their respective
directors, officers, employees, agents, advisors and representatives in violation of this agreement, (3) becomes available to Dealer
or its affiliates on a non-confidential basis from a source other than the Company or its advisors, provided that such source is
not known by Dealer or its affiliates to be bound by a confidentiality agreement with or other obligation of secrecy to the Company
or another party or (4) is independently developed by Dealer or by its affiliates without use of the Due Diligence Information.

 

    	 	A-10	 

     

    

 

Dealer
agrees that its obligation of non-disclosure, non-use and confidentiality of the Due Diligence Information as set forth herein
shall terminate upon the termination of the primary portion of the Offering.

 

Notwithstanding
the foregoing, each Dealer may rely upon the results of an inquiry conducted by an independent third party retained for that purpose
or another Dealer, provided that: (1) such Dealer has reasonable grounds to believe that such inquiry was conducted with due care
by said independent third party or such other Dealer; (2) the results of the inquiry were provided to Dealer with the consent of
the other Dealer conducting or directing the inquiry; and (3) no Dealer that participated in the inquiry is an affiliate of the
Company.

 

Prior
to the sale of the Shares, each Dealer shall inform each prospective purchaser of Shares of pertinent facts relating to the Shares
including specifically the lack of liquidity and lack of marketability of the Shares during the term of the investment.

 

		XV.	Compliance with Record Keeping Requirements.

 

Dealer
agrees to comply with the record keeping requirements of the Exchange Act, including but not limited to, Rules 17a-3 and 17a-4
promulgated under the Exchange Act. Dealer further agrees to keep such records with respect to each customer who purchases Shares,
his suitability and the amount of Shares sold and to retain such records for such period of time as may be required by the SEC,
any state securities commission, FINRA or the Company.

 

		XVI.	Customer Complaints.

 

Each
party hereby agrees to promptly provide to the other party copies of any written or otherwise documented complaints from customers
of Dealer received by such party relating in any way to the Offering (including, but not limited to, the manner in which the Shares
are offered by the Dealer Manager or Dealer), the Shares or the Company.

 

		XVII.	Effectiveness, Termination and Amendments.

 

This
Participating Dealer Agreement shall become effective upon the execution hereof by Dealer and receipt of such executed Participating
Dealer Agreement by the Dealer Manager.

 

Dealer
will immediately suspend or terminate its offer and sale of Shares upon the request of the Company or the Dealer Manager at any
time and will resume its offer and sale of Shares hereunder upon subsequent request of the Company or the Dealer Manager. Any party
may terminate this Participating Dealer Agreement by written notice. Such termination shall be effective 48 hours after the mailing
of such notice. This Participating Dealer Agreement and the exhibits hereto are the entire agreement of the parties and supersedes
all prior agreements, if any, between the parties hereto.

 

This
Participating Dealer Agreement may be amended at any time by the Dealer Manager by written notice to the Dealer, and any such amendment
shall be deemed accepted and agreed to by Dealer upon placing an order for sale of Shares after he has received such notice.

 

    	 	A-11	 

     

    

 

		XVIII.	Privacy Laws.

 

The
Dealer Manager and Dealer (each referred to individually in this section as “party”) agree as follows:

 

A.           Each
party agrees to abide by and comply with (1) the privacy standards and requirements of the Gramm-Leach-Bliley Act of 1999 (“GLB
Act”), (2) the privacy standards and requirements of any other applicable Federal or state law, and (3) its own internal
privacy policies and procedures, each as may be amended from time to time.

 

B.           Dealer
agrees to provide privacy policy notices required under the GLB Act resulting from purchases of Shares made by its customers pursuant
to this Participating Dealer Agreement.

 

C.           Each
party agrees to refrain from the use or disclosure of nonpublic personal information (as defined under the GLB Act) of all customers
who have opted out of such disclosures except as necessary to service the customers or as otherwise necessary or required by applicable
law; and

 

D.           Each
party shall be responsible for determining which customers have opted out of the disclosure of nonpublic personal information by
periodically reviewing and, if necessary, retrieving a list of such customers (the “List”) to identify customers
that have exercised their opt-out rights. In the event either party uses or discloses nonpublic personal information of any customer
for purposes other than servicing the customer, or as otherwise required by applicable law, that party will consult the List to
determine whether the affected customer has exercised his or her opt-out rights. Each party understands that each is prohibited
from using or disclosing any nonpublic personal information of any customer that is identified on the List as having opted out
of such disclosures.

 

		XIX.	Notice.

 

Any
notice in this Participating Dealer Agreement permitted to be given, made or accepted by either party to the other, must be in
writing and may be given or served by (1) overnight courier, (2) depositing the same in the United States mail, postpaid, certified,
return receipt requested, or (3) facsimile transfer. Notice deposited in the United States mail shall be deemed given when mailed.
Notice given in any other manner shall be effective when received at the address of the addressee. For purposes hereof the addresses
of the parties, until changed as hereafter provided, shall be as follows:

 

	 	To Dealer Manager:	Griffin Capital Securities, LLC
	 	 	Attention: Charles Huang 
	 	 	18191 Von Karman Avenue Suite 300
	 	 	Irvine, California 92612
	 	 	Fax: 310-606-5910
	 	 	 
	 	To Dealer:	Address Specified By Dealer on Dealer Signature Page

 

		XX.	Attorney’s Fees, Applicable Law and Venue.

 

In
any action to enforce the provisions of this Participating Dealer Agreement or to secure damages for its breach, the prevailing
party shall recover its costs and reasonable attorney’s fees. This Participating Dealer Agreement shall be construed under
the laws of the State of California and shall take effect when signed by Dealer and countersigned by the Dealer Manager. Dealer
and Dealer Manager hereby acknowledge and agree that venue for any action brought hereunder shall lie exclusively in Los Angeles,
California.

 

    	 	A-12	 

     

    

 

		XXI.	Severability.

 

In the event
that any court of competent jurisdiction declares any provision of this Participating Dealer Agreement invalid,
such invalidity shall have no effect on the other provisions hereof, which shall remain valid and binding and in full force and
effect, and to that end the provisions of this Participating Dealer Agreement shall be considered severable.

 

		XXII.	No Waiver.

 

Failure by either
party to promptly insist upon strict compliance with any of the obligations of the other party under this Participating Dealer
Agreement shall not be deemed to constitute a waiver of the right to enforce strict compliance
with respect to any obligation hereunder.

 

		XXIII.	Assignment.

 

This Participating
Dealer Agreement may not be assigned by either party, except with the prior written consent of the other
party. This Participating Dealer Agreement shall be binding upon the parties hereto, their heirs, legal representatives, successors
and permitted assigns.

 

		XXIV.	Authorization.

 

Each party represents
to the other that all requisite corporate proceedings have been undertaken to authorize it to enter into and perform under this
Participating Dealer Agreement as contemplated herein, and that the individual who has signed this Participating Dealer Agreement
below on its behalf is a duly elected officer that has been empowered to act for and on behalf of such party with respect to the
execution of this Participating Dealer Agreement.

 

	 	THE DEALER MANAGER:
	 	 
	 	GRIFFIN CAPITAL SECURITIES, LLC
	 	 	 
	 	By:	 
	 	 	Kevin A. Shields,
	 	 	Chief Executive Officer

 

    	 	A-13	 

     

    

 

PHILLIPS
EDISON GROCERY CENTER REIT III, INC.

Participating
Dealer Agreement

SIGNATURE
PAGE

 

We have
read the foregoing Participating Dealer Agreement and we hereby accept and agree to the terms and conditions therein set forth.
We hereby represent that the list below of jurisdictions in which we are registered or licensed as a broker or dealer and are fully
authorized to sell securities is true and correct, and we agree to advise you of any changes to the information listed on this
signature page during the term of this Participating Dealer Agreement.

 

Identity
of Dealer:

 

	Name:	 

 

	Type of entity:	 	 
	 	(to be completed by Dealer)	(corporation, partnership or proprietorship)

 

	Organized in the State of:	 	 
	 	(to be completed by Dealer)	(State)

 

	Licensed as broker-dealer in the following States:	 

 

	 
	(to be completed by Dealer)

 

	Tax I.D. #:	 

 

Person to receive notice
pursuant to Section XIX:

 

	Name:	 

 

	Company:	 
	 	 
	Address:	 

 

	City, State and Zip Code:	 

 

Telephone
No.:(         )__________________________________________________________________________________

 

Fax
No.:(         )_______________________________________________________________________________________

 

 

AGREED TO
AND ACCEPTED BY THE DEALER:

 

	 	 
	(Dealer’s Firm Name)	 

 

	By:	 	 
	 	Signature	 

 

	Name (Print):	 

 

	Title:	 
	 	 
	Date:	 

 

    	 	A-14Exhibit 10.5

 

REAL ESTATE PURCHASE AND SALE AGREEMENT

 

THIS
REAL ESTATE PURCHASE AND SALE AGREEMENT (this “Agreement”) is made as of the 22nd day of November, 2016 (the
“Effective Date”), by and between KRG ST. CLOUD 13TH, LLC, a Delaware limited liability company (“Seller”),
with an office at 30 S. Meridian Street, Suite 1100, Indianapolis, Indiana 46204, and THE PHILLIPS EDISON GROUP LLC, an
Ohio limited liability company (“Purchaser”), with an office at 11501 Northlake
Drive, Cincinnati, Ohio 45249.

 

RECITALS

 

A.            Seller is the owner of a certain parcel of land (the “Land”) in the City of St. Cloud, State of Florida (the
“State”), which Land is more particularly described in Exhibit A attached hereto and incorporated herein,
and upon which is located a commercial shopping center commonly known as Publix at St. Cloud.

 

B.            Seller
desires to sell to Purchaser, and Purchaser desires to purchase from Seller, the Property (as hereinafter defined), each in accordance
with and subject to the terms and conditions set forth in this Agreement.

 

THEREFORE, in consideration
of the above Recitals, the mutual covenants and agreements herein set forth and the benefits to be derived therefrom, and other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Purchaser and Seller agree as follows:

 

1.             PURCHASE
AND SALE.

 

Subject to and in accordance
with the terms and conditions set forth in this Agreement, Purchaser shall purchase from Seller, and Seller shall sell to Purchaser,
the Land, together with: (i) all buildings and improvements located on, in, under, or upon the Land (the “Improvements”)
and any and all rights, hereditaments, tenements, easements, licenses, profits, issues and privileges presently thereon or appertaining
to the Land or Improvements (all of the foregoing, collectively with the Land and Improvements shall be referred to herein as the
“Real Property”); (ii) Seller’s right, title and interest in and to the Leases (as defined in Section
9.1.5) and any security deposits paid by tenants or subtenants under the Leases and any guaranties thereof; (iii) all furniture,
furnishings, fixtures, equipment (excluding computer hardware and software), tools and other tangible property (collectively, the
“Personal Property”), if any, owned by Seller, located on the Real Property and used solely in connection therewith;
and (iv) to the extent assignable or transferable and, subject to the terms hereof, all of Seller’s right, title, and interest
in and to all intangible property (the “Intangible Property”), if any, pertaining to the Land, the Improvements
or the Personal Property or the use thereof, including without limitation, an assignment of all roof warranties together with the
consent of the warrantor, if required (provided that such consent may be obtained immediately post-Closing if required under the
warranty), and all other warranties and guarantees (provided that Seller shall not be responsible for any costs related to the
transfer of any warranties and guarantees, including any work required to be performed in order to effectuate such transfer), permits,
certificates of occupancy, licenses, approvals, governmental authorizations, transferable utility contracts, and any plans and
specifications (items (i) through (iv) above, together with the Land, are collectively referred to in this Agreement as the “Property”).
All of the foregoing expressly excludes all property owned by tenants, subtenants or other users or occupants of the Property pursuant
to the Leases.

 

     

     

    

 

2.             PURCHASE
PRICE.

 

The total consideration
to be paid by Purchaser to Seller for the Property is FOURTEEN MILLION SIX HUNDRED THOUSAND AND NO/100 DOLLARS ($14,600,000.00)
(the “Purchase Price”). The Purchase Price shall be paid as follows:

 

2.1           Earnest
Money.

 

2.1.1        Purchaser
shall deliver to Fidelity National Title Group National Commercial Services – Atlanta, Attn. Linda Hart (the “Title
Company”) within one (1) business day of the Effective Date earnest money in the sum of ONE HUNDRED FIFTY THOUSAND AND
NO/100 DOLLARS ($150,000.00) (together with any interest thereon, net of investment costs, the “Initial Earnest Money”).
Purchaser’s failure to timely deliver the Initial Earnest Money as provided herein shall render this Agreement null and void.
In the event Purchaser shall have timely delivered the Notice to Proceed (as hereinafter defined), as provided in Section 4.1.1
below, on or prior to the expiration of the Review Period (as hereinafter defined), then Purchaser shall, within one (1) business
day after the expiration of the Review Period, deliver to the Title Company additional earnest money in the sum of ONE HUNDRED
FIFTY THOUSAND AND NO/100 DOLLARS ($150,000.00) (the “Additional Earnest Money”). If this Agreement is terminated,
the Earnest Money shall be refunded to Purchaser or delivered to Seller as provided for below and neither party shall have any
further liability to the other hereunder (except for liabilities that expressly survive termination of this Agreement). The Initial
Earnest Money and the Additional Earnest Money, together with any interest earned thereon, net of investment costs, are collectively
referred to in this Agreement as the “Earnest Money.” The Earnest Money shall be held and, at Purchaser’s
election, invested by the Title Company in an interest bearing account with a federally insured financial institution reasonably
acceptable to Purchaser. Any and all interest earned on the Earnest Money shall be reported to Purchaser’s federal tax identification
number.

 

2.1.2        If
the transaction contemplated by this Agreement (the “Transaction”) closes in accordance with the terms of this
Agreement, the Earnest Money shall be applied as a credit to the Purchase Price, and the Title Company shall deliver the Earnest
Money to Seller as partial payment of the Purchase Price on the Closing Date (as hereinafter defined).

 

2.1.3        Notwithstanding
anything in this Agreement to the contrary, a portion of the Earnest Money in the amount of $100.00 shall be non-refundable and
shall be distributed to Seller upon any termination of this Agreement as independent consideration for Seller’s performance
under this Agreement and for the rights granted to Purchaser hereunder. Such $100.00 independent consideration shall be deducted
from any refund or delivery of the Earnest Money to Purchaser pursuant to this Agreement and shall simultaneously be distributed
to Seller.

 

2.2           Cash
at Closing. At Closing, Purchaser shall pay to Seller, with current, federal funds wire transferred to Title Company, an amount
equal to the Purchase Price, minus the sum of the Earnest Money which Seller shall receive at Closing from the Title Company, and
plus or minus, as the case may require, the closing prorations and adjustments to be made pursuant to Section 5.4 below
(collectively, the “Cash Amount”).

 

    	 	2	 

     

    

 

3.             EVIDENCE
OF TITLE.

 

3.1           Seller
shall convey to Purchaser all of its right, title and interest in and to the Real Property at Closing by a special warranty deed
subject only to (1) all real estate taxes and assessments due and payable after the date of Closing, (2) all encumbrances,
rights-of-way, easements, covenants, conditions, restrictions and other matters of record, (3) zoning and other governmental
restrictions and regulations, (4) all unrecorded written leases and the rights of tenants as tenants only thereunder, and (5) all
matters that would be disclosed by a diligent inspection and/or an accurate survey of the Property (collectively, the “Permitted
Exceptions”).

 

3.2           Purchaser
has ordered, to be paid for by Seller, at its sole cost and expense, a current standard coverage title insurance commitment for
an ALTA 2006 owner’s policy of title insurance committing the Title Company to insure Purchaser in the amount of the Purchase
Price as the fee simple owner of the Real Property, without standard exceptions (the “Title Commitment”), together
with copies of all recorded encumbrances and exceptions to title, from the Title Company. Seller has delivered to Purchaser a copy
of that certain ALTA/ACSM Land Title Survey of the Real Property, dated January 28, 2010, and performed by Johnston’s Surveying
Inc., as Job No. 10-006 (the “Existing Survey”). Purchaser may order an updated survey of the Real Property
at Purchaser’s sole cost and expense. If Purchaser shall obtain an updated survey of the Real Property prior to the expiration
of the Title Objection Period (as defined below), such updated survey shall be the “Survey”; otherwise, the
Existing Survey shall be the “Survey”. Purchaser shall have until 5:00 p.m. (Eastern Standard Time) on November
23, 2016 (the “Title Objection Period”) within which to object, by written notice to Seller, to any exceptions
to title set forth in the Title Commitment and/or to any state of facts in or disclosed by the Survey (the “Title Objection
Notice”). Purchaser shall be deemed to have accepted all matters shown in the Title Commitment and the form and substance
of the Survey, except only for matters expressly objected to in the Title Objection Notice prior to the expiration of the Title
Objection Period. Seller shall have until 5:00 p.m. (Eastern Standard Time) on November 28, 2016 (such day, the “Seller
Response Date”) in which to notify Purchaser that (i) Seller will cure the Title Objection Notice exceptions from title
or, if applicable, cure the matters as shown on the Survey on or before the Closing Date; provided, that in no event shall Seller
be obligated hereunder to effect such a cure, or (ii) Seller elects not to cause such exceptions or matters to be cured. If Seller
fails to notify Purchaser of its election by the Seller Response Date, then Seller shall be deemed to have given notice under clause
(ii) above. If Seller gives (or is deemed to have given) notice under clause (ii) above, then Purchaser shall have until the expiration
of the Review Period in which to notify Seller and the Title Company that (x) Purchaser will nevertheless proceed with the Transaction
and take title to the Real Property subject to such exceptions and such matters without reduction of the Purchase Price, or (y)
Purchaser is terminating this Agreement. If Purchaser does not provide any notice contemplated by the immediately preceding sentence,
then Purchaser shall be deemed to have elected to take title to the Real Property pursuant to clause (x) above. If this Agreement
is terminated pursuant to clause (y), then this Agreement shall terminate and be of no further force and effect, no party hereto
shall have any further rights or obligations hereunder (except for rights, liabilities or obligations that expressly survive termination
of this Agreement), and the Title Company shall immediately return the Earnest Money to Purchaser. If Seller elects to cure the
Title Objection Notice exceptions from title or to cure the matters as shown on the Survey, the Seller will use good faith efforts
to do so. After the title review, objection and response periods, provided that this Agreement has not been terminated, Purchaser
may seek to obtain from the Title Company a proforma policy of title insurance acceptable to Purchaser in its sole discretion,
issued by the Title Company in accordance with the updated Title Commitment showing Purchaser as the insured thereunder in the
amount of the Purchase Price and being subject only to (1) all real estate taxes and assessments due and payable after the date
of Closing, (2) the rights of tenants under the Leases, as tenants only, (3) the encumbrances or exceptions to title shown on the
Title Commitment to which Purchaser does not object pursuant to the terms hereof or which are otherwise allowed pursuant to this
Agreement or which with Purchaser’s consent are waived and accepted, and (4) any matters shown on the Survey to which Purchaser
does not object pursuant to the terms hereof or which are otherwise allowed pursuant to this Agreement or which with Purchaser’s
consent are waived and accepted and expressly excluding (i) the “standard” exceptions, (ii) Monetary Liens (as defined
below), and (iii) taxes and assessments with respect to Seller and/or the Real Property which are past due as of Closing (the “Proforma
Policy”) and shall seek the Title Company’s irrevocable commitment to issue the Title Policy in accordance with
the Proforma Policy.

 

    	 	3	 

     

    

 

3.3           Notwithstanding
anything in this Section 3 to the contrary, (a) Purchaser shall have no obligation to object to any mortgages, deeds
of trust, mechanic’s liens, materialmen’s liens or judgment liens, excluding any of the foregoing monetary liens caused
by or resulting from the acts of tenants or Purchaser (collectively, “Monetary Liens”), and all Monetary Liens
are hereby deemed title objections, (b) Seller shall be obligated to satisfy, release, and discharge all Monetary Liens encumbering
the Property on or before the Closing Date (provided, however, that if Monetary Liens are paid off as of Closing and the Title
Company insures over such Monetary Liens as of Closing, the recordable release may be delivered after Closing so long as Seller
uses diligent efforts to obtain such releases as soon as practicable after Closing) regardless of whether Purchaser specifically
objects to them, and (c) except as provided in clause (b) above, Seller shall have no obligation to take any steps, bring any action
or proceeding or incur any effort or expense whatsoever to eliminate, modify or cure any objection Purchaser may have pursuant
to this Section 3 or otherwise.

 

3.4           To
the extent that Purchaser may elect, at its option, to request the Title Company to issue endorsements to Purchaser’s owner’s
policy of title insurance to be issued pursuant to the Title Commitment (the “Title Policy”), (i) the issuance
of such endorsements shall be solely at Purchaser’s cost and expense unless Seller specifically agreed to provide any such
endorsement to cure or remove a title or survey defect in response to Purchaser’s Title Objection Notice, and (ii) no such
endorsements shall be a pre-condition to Purchaser’s obligation to consummate the Transaction.

 

4.             CONTINGENCIES
AND CONDITIONS PRECEDENT.

 

4.1           Due
Diligence Contingency.

 

4.1.1           Review
Period. Purchaser shall have until 5:00 p.m. (Eastern Standard Time) on November 29, 2016 (the “Review Period”)
to inspect the Property. Purchaser shall have the right, at any time prior to the end of the Review Period, in its sole discretion,
to notify Seller: (i) that Purchaser elects to proceed with the Transaction contemplated by this Agreement beyond the expiration
of the Review Period (the “Notice to Proceed”), and, in the event of such notice, Purchaser shall have no further
right to terminate this Agreement pursuant to this Section 4.1.1, and the parties shall proceed to Closing, subject to satisfaction
or waiver of the conditions set forth in Section 4.3 and Section 4.4; or (ii) of Purchaser’s termination of
this Agreement, in which event this Agreement shall be of no further force or effect, the Earnest Money shall be returned to Purchaser,
and neither party shall have any further liability or obligation hereunder except those that expressly survive termination. If
Purchaser fails to deliver the Notice to Proceed prior to the expiration of the Review Period, this Agreement shall be deemed to
have terminated automatically and, in such event this Agreement shall be of no further force or effect, the Earnest Money shall
be returned to Purchaser, and neither party shall have any further liability or obligation hereunder except those that expressly
survive termination.

 

    	 	4	 

     

    

 

4.1.2           Access
During Review Period. Purchaser and its agents, contractors, consultants, licensees and representatives (collectively, “Purchaser’s
Representatives”) shall have reasonable access to the Property, including tenant spaces subject to the rights of tenants,
during normal business hours, for the purpose of conducting necessary inspections and tests of the Property as Purchaser deems
reasonably necessary or desirable, including surveys and architectural, engineering and environmental inspections and tests; provided
that: (i) Purchaser must give Seller at least forty-eight (48) hours’ prior telephone or written notice (which may be given
via e-mail to both Mitch Rippe at mrippe@kiterealty.com and Christian Trani at ctrani@kiterealty.com) of any such
inspection or test. Seller shall use reasonable efforts to facilitate Purchaser’s request to inspect any tenant spaces, including
the giving of any notices required by tenant Leases. With respect to any intrusive inspection or test (e.g., boring, drilling or
core sampling), including, without limitation, a Phase II environmental assessment, any test required in connection with a Phase
II environmental assessment or geotechnical analysis (and any invasive inspections in connection therewith), Purchaser must obtain
Seller’s prior written consent, at Seller’s sole discretion, to such tests or inspections. Purchaser shall bear the
cost of all such inspections, tests, investigations, or studies. Notwithstanding anything herein contained to the contrary, in
the event that (x) the phase I environmental site assessment of the Real Property that Purchaser shall obtain during its investigation
of the Property (i) shall recommend that a phase II environmental site assessment of the Real Property be conducted, and (ii) indicates
the existence of a recognized environmental condition at the Real Property, and (y) Purchaser delivers to Seller a proposal by
Purchaser’s environmental consultant indicating the scope of the phase II environmental site assessment (including the location
of any borings to be located on the Real Property) and Seller consents to the same in accordance with this Section 4.1.2
prior to the expiration of the Review Period, then Purchaser shall have an additional fifteen (15) days after the expiration of
the Review Period (the “Phase II Period”) to perform the phase II environmental site assessment in accordance
with the approved proposal. If the phase II environmental site assessment finds contamination on, at, under or migrating from the
Real Property in excess of applicable state or federal commercial/industrial regulatory limits, then Purchaser shall have the right
to terminate this Agreement prior to the expiration of the Phase II Period, in which event this Agreement shall be of no further
force or effect, the Earnest Money shall be returned to Purchaser, and neither party shall have any further liability or obligation
hereunder except those that expressly survive termination. If the phase II environmental site assessment does not find contamination
on, at, under or migrating from the Real Property in excess of applicable state or federal commercial/industrial regulatory limits
of if Purchaser does not terminate the Agreement in accordance with the previous sentence, then the Closing Date, subject to satisfaction
or waiver of the conditions set forth in Section 4.3 and Section 4.4, shall be extended to be the date that is fifteen (15) days
after the expiration of the Phase II Period. At Seller’s election, Seller may designate and notify Purchaser in writing of
the name of a representative of Seller to accompany Purchaser or Purchaser’s Representatives while on the Property, in which
event Purchaser or Purchaser’s Representatives shall not enter onto the Property unless so accompanied. Seller will use reasonable
efforts to make its representative available at all reasonable times proposed by Purchaser for entry onto the Property, provided
that, if a representative of Seller is not available at the time of a scheduled entry by Purchaser or Purchaser’s Representatives,
Purchaser and Purchaser’s Representatives shall nonetheless have the right to enter upon the Property for the purpose of
conducting such inspections and tests of the Property.

 

    	 	5	 

     

    

 

4.1.3           Terms
of Access. In conducting any inspections, tests, investigations or studies of the Property, Purchaser shall (and shall cause
Purchaser’s Representatives to): (i) not disturb the tenants at the Property or interfere with their use of the Property
pursuant to their respective Leases or subleases in any material way; (ii) not unreasonably interfere with the operation and maintenance
of the Property in any material way; (iii) not damage any part of the Property or any personal property owned or held by any tenant
or any third party; (iv) not injure or otherwise cause bodily harm to Seller, its property manager, or their respective agents,
guests, invitees, licensees, contractors, agents, or employees, or any tenants or their guests or invitees; (v) comply with all
applicable laws; (vi) promptly pay when due the costs of all inspections, tests, investigations, and studies done with regard to
the Property; (vii) not permit any liens to attach to the Property or any portion thereof by reason of the exercise of its rights
hereunder; (viii) promptly and diligently restore any damage caused to the Real Property and restore any areas disturbed by such
tests or studies; and (ix) not reveal or disclose any information obtained concerning the Property or the Property Documents (as
hereinafter defined) to anyone except as may be otherwise required by law, rule or regulation or court order, or in connection
with the enforcement or defense to enforcement of this Agreement, or which is a matter of public record and may not make any reproductions,
other than handwritten summaries or notes and self-generated computer records, of any item of confidential information described
in Section 13.7 without the prior written consent of Seller. Notwithstanding anything to the contrary contained herein,
Purchaser may disclose any information to partners, directors, officers and employees of Purchaser and/or Purchaser’s Representatives,
Purchaser’s Representatives, Purchaser’s investors and financial advisors, and such parties’ outside counsel
and accounting firms, who, in Purchaser’s reasonable judgment, need to know such information for the purpose of evaluating
the possible purchase of the Property by Purchaser, provided further, that such persons are informed of the confidential nature
of any confidential information described in Section 13.7.

 

4.1.4           Indemnification
by Purchaser Related to Access and Due Diligence. Purchaser, for and on behalf of itself, its affiliates and their respective
officers, directors, employees, independent contractors, agents and anyone else acting on Purchaser’s or its affiliates’
behalf, and Purchaser’s Representatives shall and hereby does indemnify, defend, release, discharge and forever hold harmless
Seller and its officers, members, managers, directors, employees, partners, brokers, agents, shareholders, and any person, firm,
corporation, trust, partnership, limited liability company or other entity claiming by through or under Seller (collectively, “Indemnified
Parties”) from and against any and all actions, claims, demands, liabilities, liens, losses, costs (including court costs),
damages (but not consequential damages), awards and expenses (including reasonable attorney’s fees) (collectively, “Losses”)
as a result of any injury to or death of persons, damage to property or liens recorded against the Property, to the extent caused
by: (i) Purchaser’s access or entry onto the Property; (ii) the use of or access to the Property by Purchaser and Purchaser’s
Representatives in connection with this Agreement; (iii) any tests or inspections performed by Purchaser or Purchaser’s Representatives;
or (iv) any breach by Purchaser of the terms of this Agreement including, without limitation, the breach by Purchaser (or by any
other person for whom Purchaser has responsibility hereunder) of the confidentiality provisions of Section 13.7 hereof.
Seller’s and Indemnified Parties’ right to indemnity from Purchaser shall in no way be limited to the amount recoverable
under any insurance maintained by Purchaser as required in this Agreement. The provisions of this Section 4.1.4 shall survive
the Closing or the termination of this Agreement, whichever is applicable.

 

    	 	6	 

     

    

 

4.1.5           Property
Documents. Seller has delivered to Purchaser (or made available through an online data room) certain documents in Seller’s
possession related to the Property (the “Property Documents”). To Seller’s knowledge, the Property Documents
are true, accurate and complete copies of all such documents in Seller’s possession. Seller shall make all other documents,
books, records and other information related to the Property in Seller’s possession, however stored or maintained, that Seller
does not deem proprietary or confidential, available to Purchaser for Purchaser’s review at Seller’s offices upon not
less than one (1) Business Days’ notice. If this Agreement is terminated for any reason, Purchaser shall immediately return
to Seller all written and other physical materials received from Seller (including, but not limited to, the Property Documents),
and permanently delete all electronic deliveries, correspondence and documents received from Seller or Seller’s agents relating
to the Property or Seller. Except as otherwise expressly set forth in this Agreement, Seller makes no representations or warranties,
either expressed or implied, and shall have no liability with respect to the accuracy or completeness of the information, data
or conclusions contained in any information provided to Purchaser (including, but not limited to, the Property Documents), and
Purchaser shall make its own independent inquiry regarding the economic feasibility, physical condition and environmental state
of the Property during the Review Period.

 

4.1.6           Service
Contracts. Seller shall terminate, as of the Closing Date, at its sole cost and expense, all Service Contracts, existing property
management and broker leasing agreements with respect to the Property.

 

4.1.7           Insurance.
Prior to accessing or entering upon the Property and performing any inspection or test at or on the Property, Purchaser must deliver
a certificate of insurance to Seller evidencing that Purchaser (or the applicable Purchaser’s Representative that will be
accessing the Property) has in place commercial general liability and property damage insurance in the amount of Two Million Dollars
in the aggregate and not less than Two Million Dollars for any injury or death of one or more persons in an occurrence, and not
less than Two Million Dollars for damage to tangible property (including loss of use) in any one occurrence, and workers compensation
insurance for its activities on the Property in terms and amounts reasonably satisfactory to Seller and covering any accident arising
in connection with the presence of Purchaser or Purchaser’s Representatives on the Property, which insurance shall name Seller
as an additional insured thereunder, contain a cross liability provision, and contain a provision that the insurance provided by
Purchaser hereunder shall be primary and noncontributing with any other insurance available to Seller and its successors, assigns
and affiliates.

 

4.2           Intentionally
omitted.

 

4.3           Conditions
Precedent – Purchaser. The following shall be conditions precedent to Purchaser’s obligation to proceed to Closing:

 

    	 	7	 

     

    

 

4.3.1           Seller
shall have obtained and delivered to Purchaser at least one (1) business day prior to the Closing Date an Estoppel Certificate
executed by (i) Publix Super Markets, Inc. (“Major Tenant”), and (ii) other tenants of the Property under Leases
which shall be in effect at Closing such that the Estoppel Certificates from such other tenants collectively cover at least seventy-five
percent (75%) of the area leased by tenants (other than Major Tenant) under Leases of the Property as of the Closing Date (the
“Estoppel Threshold”). As used herein, “Estoppel Certificate” shall mean a certificate (i)
in substantially the form attached hereto as Exhibit J-1, such other form as required by the applicable Lease, or such form
standardly used by any tenant, and (ii) that (a) does not allege any pending or threatened defaults or unperformed material obligation
of Seller, defects or material issues with respect to the Property, or other facts contrary in any material respect to the facts
contained in the Leases, and (b) is dated no earlier than thirty (30) days prior to the Closing Date. Notwithstanding anything
herein to the contrary, Seller’s failure to obtain a sufficient number of Estoppel Certificates to reach the Estoppel Threshold
at least one (1) business day prior to the Closing Date (the “Estoppel Condition”) shall not be a default under
this Agreement. Seller shall use diligent, commercially reasonable good-faith efforts to obtain from, and deliver to Purchaser,
Estoppel Certificates from all tenants.

 

With respect to any
tenants for which Seller is unable to obtain an Estoppel Certificate by the date that is one (1) business day prior to the Closing
Date (other than Major Tenant) sufficient to reach the seventy-five percent (75%) threshold for tenants other than Major Tenant
provided herein, Seller, in its sole discretion, shall have the option of delivering and executing at Closing an estoppel certificate
(a “Seller Estoppel”) confirming, with respect to the applicable tenant Lease, the lease documents and additional
agreements, financial terms, and no defaults (except as set forth on Exhibit I-2 hereto), in generally the same form as
the Estoppel Certificate that was to be obtained from the tenant hereunder with the applicable lease information completed therein,
which Seller Estoppel shall survive the Closing for the Survival Period (as hereinafter defined). If Seller obtains an Estoppel
Certificate from a tenant after a Seller Estoppel has been provided to satisfy the Estoppel Threshold, the Seller Estoppel shall
be deemed retracted and Purchaser may only rely on the substituted Estoppel Certificate. This Section 4.3.1 shall survive
the Closing of this Agreement and shall not merge into the deed.

 

4.3.2           As
of the Closing Date, none of the following shall exist or shall have been commenced against or with respect to Seller: (a) commencement
of a case under Title 11 of the U.S. Code or under any other applicable federal or state bankruptcy or similar law; (b) appointment
of a trustee or receiver of any property interest; (c) an assignment for the benefit of creditors; (d) an attachment, execution
or other judicial seizure of a substantial property interest; or (e) a dissolution or liquidation.

 

4.3.3           Seller
shall have performed, observed and complied in all material respects with all of the covenants, agreements and conditions required
by this Agreement to be performed, observed and complied with by Seller at or prior to Closing, including, without limitation,
the delivery of the items described in Section 5.2.

 

4.3.4           All
of Seller’s representations and warranties contained in Section 9.1 shall have been true and correct in all material
respects when made and remain true and correct as of the Closing Date, subject to any Disclosure Notices (as hereinafter defined).

 

    	 	8	 

     

    

 

4.3.5           The
absence as of Closing of a Material Adverse Change. A Material Adverse Change is defined as “the Major Tenant ceases operating
from the Real Property, terminates its Lease and/or files for protection from its creditors under the Federal Bankruptcy Act or
any similar state equivalent and/or announces that it shall be so ceasing operations, terminating its Lease and/or filing for such
protection”.

 

4.3.6           The
irrevocable commitment by the Title Company to issue an ALTA 2006 owner’s policy of title insurance as of the date and time
of Closing insuring Purchaser as the fee simple owner of the Real Property in the amount of the Purchase Price being subject only
to (1) all real estate taxes and assessments due and payable after the date of Closing, (2) the rights of tenants under the Leases,
as tenants only, (3) the encumbrances or exceptions to title shown on the Title Commitment to which Purchaser does not object pursuant
to the terms hereof or which are otherwise allowed pursuant to this Agreement or which with Purchaser’s consent are waived
and accepted, and (4) any matters shown on the Survey to which Purchaser does not object pursuant to the terms hereof or which
are otherwise allowed pursuant to this Agreement or which with Purchaser’s consent are waived and accepted but expressly
excluding (i) the “standard” exceptions, (ii) Monetary Liens, and (iii) taxes and assessments with respect to Seller
and/or the Real Property which are past due as of Closing.

 

4.3.7           Major
Tenant shall have either (a) delivered on or before the Closing a written waiver of its right of first offer with respect to the
Property (the “ROFO”), or, (b) after having received the requisite written notice of this Agreement in the form
required, allowed the period during which Major Tenant was entitled to exercise its right of first offer to pass without exercising
such right on or before Closing. Notwithstanding the foregoing, Seller and Purchaser agree that that certain waiver letter from
Major Tenant, dated as of October 26, 2016, is sufficient to satisfy the condition set forth in this Section 4.3.7 for the
Transaction as contemplated by the specific terms of this Agreement.

 

4.3.8           Seller
shall have obtained and delivered to Purchaser the FFY Lease executed by FFY (as hereinafter defined) upon the terms and conditions
set forth in the LOI attached hereto as Exhibit 4.3.8.

 

4.4           Conditions
Precedent – Seller. It shall be conditions precedent to Seller’s obligation to sell the Property to Purchaser that
(i) Purchaser shall have performed, observed and complied in all material respects with all of the covenants, agreements and conditions
required by this Agreement to be performed, observed and complied with by Purchaser at or prior to Closing, including, without
limitation, the delivery of the items described in Section 5.3, (ii) all of Purchaser’s representations and warranties
contained in Section 9.3 shall have been true and correct in all material respects when made and remain true and correct
as of the Closing Date, (iii) Major Tenant has either delivered on or before the Closing a waiver of its ROFO, or, after having
received the requisite written notice of this Agreement, has allowed the period during which Major Tenant was entitled to exercise
its ROFO to pass without exercising such right (provided, however, that Seller and Purchaser agree that that certain waiver letter
from Major Tenant, dated as of October 26, 2016, is sufficient to satisfy the condition set forth in this Section 4.4(iii)
for the Transaction as contemplated by the terms of this Agreement).

 

    	 	9	 

     

    

 

4.5           Failure
of Condition Precedent. If any condition set forth in Section 4.3 above is not satisfied by Seller or waived by Purchaser
in writing at or prior to Closing, then (a) if Seller’s default is a cause of such failure, Purchaser shall have the rights
set forth in Section 8.1, and (b) if Seller’s default is not the cause of such failure, Purchaser shall have the right
to terminate this Agreement by providing written notice to Seller, at which time the Earnest Money shall be promptly returned to
Purchaser, and neither party shall have any further rights, liabilities or obligations under this Agreement, except for those that
expressly survive termination. Notwithstanding the foregoing, Seller or Purchaser may extend the Closing Date for a period of up
to thirty (30) days by written notice to the other party to permit Seller additional time to attempt to satisfy any condition in
Section 4.3 that is not satisfied as of the Closing Date. If any condition set forth in Section 4.4 is not satisfied
by Purchaser or waived by Seller at or prior to Closing, then Seller shall have the rights set forth in Section 8.2.

 

4.6           REA
Estoppel Certificates. Seller shall use diligent, commercially reasonable good-faith efforts to obtain from, and deliver to
Purchaser, by the Closing Date an executed estoppel certificate (an “REA Estoppel Certificate”) from each counterparty
to that certain Reciprocal Agreement of Restrictions, Covenants and Conditions and Grant of Easements, recorded in Official Records
Book 2149, Page 2693 and that certain Easement recorded in Official Records Book 2149, Page 2720 (as amended, collectively the
“REA”), in the form attached hereto as Exhibit J-2, provided, however, that (i) Seller’s failure
to obtain any REA Estoppel Certificates shall not be a default under this Agreement, and (ii) Purchaser’s obligation to purchase
the Property shall not be conditioned upon receipt of any REA Estoppel Certificates.

 

5.             CLOSING.

 

5.1           Closing
Date. The “Closing” of the Transaction shall occur at or through the offices of the Title Company on a mutually
agreeable date no later than fifteen (15) days after the expiration of the Review Period, or on such earlier date as Seller and
Purchaser may mutually agree in writing. The “Closing Date” shall be the date of Closing. If the date for Closing
above provided for falls on a Saturday, Sunday or legal holiday, then the Closing Date shall be the next business day.

 

5.2           Seller’s
Closing Deliveries. At Closing, Seller shall execute (where appropriate) and deliver to Purchaser (via the closing escrow established
with the Title Company) the following (collectively referred to herein as “Seller’s Closing Documents”),
each in the form attached to this Agreement (where applicable) or as reasonably acceptable to Purchaser:

 

5.2.1           a
Special Warranty Deed, subject only to the Permitted Exceptions, in the form attached hereto as Exhibit E, along with any
required real estate transfer tax/documentary/deed tax affidavits, applications, notices and the like;

 

5.2.2           a
bill of sale in the form attached hereto as Exhibit F;

 

5.2.3           a
letter advising tenants under the Leases of the change in ownership of the Property in the form attached hereto as Exhibit G,
which Purchaser shall deliver promptly after the Closing Date;

 

    	 	10	 

     

    

 

5.2.4           an
Assignment and Assumption of Leases and Security Deposits (“Assignment of Leases”) in the form attached hereto
as Exhibit H;

 

5.2.5           a
General Assignment and Assumption Agreement (the “General Assignment”) in the form attached hereto as Exhibit
K, pursuant to which Seller will assign to Purchaser all Intangible Property;

 

5.2.6           a
certificate stating Seller’s U.S. taxpayer identification number and that Seller is not a foreign person within the meaning
of Section 1445 of the Internal Revenue Code in the form of Exhibit M;

 

5.2.7           an
owner’s certificate in form acceptable to Seller and as reasonably required by the Title Company in order to delete the ‘standard’
exceptions to the Title Policy (except for the standard survey exception);

 

5.2.8           evidence
of Seller’s authority to consummate the transactions described herein, as required by the Title Company to issue the Title
Policy;

 

5.2.9           a
closing statement agreed upon by Purchaser and Seller (the “Closing Statement”) setting forth the prorations
and adjustments to the Purchase Price as required by Section 5.4 or otherwise in this Agreement;

 

5.2.10         an
update of the Rent Roll dated no earlier than two (2) business days prior to the Closing Date and a certificate stating that such
updated Rent Roll is, as of Closing, true, accurate and complete or, if applicable, noting any material differences between the
Rent Roll attached to this Agreement and the update of the Rent Roll. For purposes of this Agreement, the term “Rent Roll”
shall mean a rent roll, in the form of the rent roll attached hereto as Exhibit I-1, dated as of the applicable date required
by the text of this Agreement;

 

5.2.11         originals
(to the extent received by Seller, or copies if originals were not received by Seller) of the Estoppel Certificates and Seller
Estoppels, in each case signed by the applicable party making such estoppel statements;

 

5.2.12         a
Form 1099-S Statement;

 

5.2.13         reasonable
evidence that all Service Contracts have been terminated as of the Closing Date;

 

5.2.14         a
“bring down” certificate in the form of Exhibit O attached hereto, providing that each and every representation
and warranty of Seller expressed in this Agreement shall be true, complete and accurate in all material respects as of the Closing
Date (as the same may be revised as of the Closing Date in order to address matters contained in a Disclosure Notice in the form
of Exhibit N, with the representations and warranties contained therein to survive for a period of one hundred eighty (180)
days after Closing;

 

    	 	11	 

     

    

 

5.2.15         any
additional documents that the Title Company may reasonably require for the proper consummation of the Transaction or that may be
usual and customary in closing similar transactions in the State;

 

5.2.16         if
required by the warrantor(s) of the roof warranties applicable to the Improvements, a separate assignment of such roof warranties,
in the form required by the warrantor together with any requisite warrantor consent; and

 

5.2.17         a
recorded instrument, in form reasonably acceptable to Seller and Purchaser, assigning to Purchaser Seller’s interest, if
any, as declarant, developer or the like under the REA, , in order for Purchaser to be the successor declarant, developer or the
like under such REA.

 

5.3           Purchaser’s
Closing Deliveries. At Closing, Purchaser shall execute (where appropriate) and deliver to Seller the following (collectively
referred to herein as “Purchaser’s Closing Documents”) (via the closing escrow established with the Title
Company):

 

5.3.1           the
Cash Amount;

 

5.3.2           a
counterpart original of the Closing Statement;

 

5.3.3           counterpart
originals of the Assignment of Leases and the General Assignment;

 

5.3.4           such
evidence of Purchaser’s power and authority as the Title Company may reasonably require;

 

5.3.5           a
certificate providing that each and every representation and warranty of Purchaser expressed in this Agreement shall be true, complete
and accurate in all material respects as of the Closing Date, with the representations and warranties contained therein to survive
for a period of one hundred eighty (180) days after Closing; and

 

5.3.6           any
additional documents the Title Company may reasonably require for the proper consummation of the Transaction or that may be usual
and customary in closing similar transactions in the State.

 

5.4           Closing
Prorations and Adjustments. Seller shall prepare the Closing Statement of the prorations and adjustments required by this Agreement
and submit it to Purchaser for Purchaser’s review and approval at least four (4) business days prior to the Closing Date.
The following items are to be prorated or adjusted (as appropriate) as of the close of business on the Closing Date, it being understood
that for purposes of prorations and adjustments, Seller shall be deemed the owner of the Property prior to such day and Purchaser
shall be deemed the owner of the Property as of the Closing Date; provided, however, that if Purchaser’s funds are not received
by Seller prior to 5:00 p.m. (Eastern Standard Time) on the Closing Date, then Seller shall be deemed the owner of the Property
on such day and Purchaser shall be deemed the owner of the Property as of the day after the Closing Date:

 

5.4.1           Current
real estate and personal property taxes and assessments shall be prorated in accordance with Section 5.6 hereof;

 

    	 	12	 

     

    

 

5.4.2           all
rents, including without limitation all basic rent, additional rent, percentage rent, CAM charges, tenant real estate tax reimbursements
and all amounts actually collected by Seller prior to Closing from tenants under the Leases (collectively referred to as “Rents”),
shall be prorated and adjusted as of the Closing Date based upon the number of days in the month in which the Closing occurs with
Rents from and after the date of Closing allocated to Purchaser; provided, however Rents that are due and payable to Seller by
any tenant but uncollected as of the Closing (collectively, “Delinquent Amounts”) shall not be adjusted, but
Purchaser shall cause such Delinquent Amounts to be remitted to Seller if, as and when collected subject to this Section 5.4.2.
At Closing, Seller shall deliver to Purchaser a schedule of all such Delinquent Amounts (provided, however, that in the event any
Delinquent Amount is inadvertently omitted from such schedule, Seller shall not be deemed to have waived its rights to such Delinquent
Amounts). Any amounts collected by Purchaser after Closing from tenants that had Delinquent Amounts shall be applied as follows:
(i) first, in payment of current Rents at the time of receipt, (ii) second, to Delinquent Amounts, if any, which became due on
or after Closing, (iii) third, in payment of Rents owed by such tenant for the month in which the Closing occurs, and (iv) then,
to Delinquent Amounts, if any, which became due prior to the Closing. Any prepaid Rents attributable to the Closing Date or later
shall be credited to Purchaser;

 

5.4.3           the
amount of unapplied security deposits held by Seller under the Leases (including all interest earned thereon if required by applicable
law) will be credited to Purchaser;

 

5.4.4           Intentionally
omitted;

 

5.4.5           water,
electric, telephone, sewer and all other utility and fuel charges, common area maintenance charges and other operating expenditures
through the day prior to Closing shall be paid by Seller, and Purchaser shall establish new accounts with such utility providers
as of the Closing Date; any Seller deposits with utility companies shall remain the property of the Seller and shall not be prorated
or credited; and any fuel on hand (at cost plus sales tax) will be assigned to the Purchaser and credited to the Seller. If final
readings have not been taken, estimated charges based on the most recent statements received shall be prorated between the parties,
and post-closing adjustments shall be made when the actual billings are received;

 

5.4.6           assignable
license and permit fees; and

 

5.4.7.          other
similar items of income, expenses of operation and other accounts receivable.

 

5.5           Rent
Credit. Seller and Purchaser acknowledge that at the time of Closing, fixed base and additional rent payments of Fun Frozen
Yogurt, LLC (the “FFY Tenant”) will not begin until August 31, 2017. Seller and Purchaser further acknowledge
that the FFY Tenant will be occupying the premises currently occupied by Dr. Christopher McNichols, d/b/a East Lake Chiropractic
and Injury Center (the “ECIC Tenant”) With respect to the Lease with the FFY Tenant (the “FFY Lease”)
and the Lease with the ECIC Tenant (the “ECIC Lease”), Purchaser shall receive at the Closing a credit against
the Purchase Price in an amount equal to (i) the Base Rent (as such term is defined in the FFY Lease) that would have been paid
had FFY Tenant commenced payment of the Base Rent under the FFY Lease prior to Closing, for the period between the Closing Date
and August 31, 2017, plus (ii) the Additional Rent (as such term is defined in the FFY Lease) that would have been paid had the
FFY Tenant commenced payment of Additional Rent under the FFY Lease prior to Closing, for the period between the Closing Date and
May 31, 2017, less (iii) the Fixed Rent (as such term is defined in the ECIC Lease) payable under the ECIC Lease for the period
between the Closing Date and January 31, 2017, and further less (iv) the Common Area Maintenance, Insurance Charges, Taxes (as
such terms are defined in the ECIC Lease) payable under the ECIC Lease for the period between the Closing Date and January 31,
2017.

 

    	 	13	 

     

    

 

5.6           Taxes.
Notwithstanding anything contained in Section 5.4 above, all taxes and assessments shall be prorated based (i) on the parties’
respective periods of ownership, and (ii) on the most recent ascertainable tax bill if the current bill is not then available and
based upon the maximum discount rate allowed in the applicable jurisdiction. To the extent that the actual taxes and assessments
for the current year differ from the amount apportioned at Closing, the parties shall make all necessary adjustments by appropriate
payments between themselves pursuant to the provisions of Section 5.8 of this Agreement. Any and all refunds, credits, or
increases respecting the amount of any real property taxes or other taxes or assessments charged in connection with the Property
related to the period prior to the Closing Date shall belong to Seller and those related to the Closing Date and later shall belong
to Purchaser. To the extent that any tenant pays its real property tax and assessment obligations directly to the taxing authority,
the portion of real property taxes and assessments attributable to such tenant shall not be prorated hereunder and Purchaser shall
not receive a credit at Closing with respect thereto. Except as set forth herein, taxes and assessments, special and otherwise,
which are a lien against the Real Property and which are due and payable on or prior to the date of Closing, and any other taxes
which are assessed and due or owing by Seller with respect to the period prior to the date of Closing, shall be paid (or caused
to be paid) by Seller at or prior to Closing. This Section 5.6 shall survive the Closing.

 

5.7           Utilities.
Seller agrees to cause all of its accounts for water, electric, telephone and all other utility services of any kind to be terminated
as of the Closing Date. Purchaser shall cause new accounts to be opened in favor of Purchaser as of the Closing Date. Seller covenants
and agrees that it will cause all utility charges, fees, expenses, penalties or other amounts attributable to periods prior to
the Closing to be paid and discharged on or before their due date. Any utility deposits established in Seller’s name shall
be returned to Seller, and Purchaser shall establish new deposits with the applicable utility companies.

 

5.8           Post-Closing
Proration. Except as otherwise provided herein, any expense amount which cannot be ascertained with certainty as of Closing
(and for which Seller and Purchaser are unable to adjust and/or allocate at or prior to Closing) shall be prorated on the basis
of the parties’ reasonable estimates of such amount. Purchaser and Seller shall cooperate and use good faith diligent efforts
to prepare a reconciliation statement and final proration statement within one hundred fifty (150) days after the end of the year
in which Closing occurs. Upon Seller’s and Purchaser’s mutual approval of the reconciliation statement, Seller shall
pay Purchaser, or Purchaser shall pay Seller, as the case may be, for any adjustments that need to be made as against the Closing
Statement. With respect to any reproration of expense contributions, real estate tax contributions and other Tenant reimbursements
and additional rent (including common area maintenance or other operating cost pass-throughs reimbursements) payable by Tenants
to Seller pursuant to the Leases (collectively, the “Tenant Contributions”), such reproration shall not be made
on the basis of a per diem method of allocation, but shall instead be apportioned between Seller and Purchaser on the basis of
the relative share of actual expenses in question incurred by Seller and Purchaser during the calendar year in question. Seller
covenants to provide Purchaser with any information, books or records necessary to finalize such calculation. To the extent any
Tenants are due refunds as a result of the post-Closing reconciliation performed by Purchaser, Seller shall pay to Purchaser Seller’s
pro rata portion of such refunds with respect to periods prior to Closing within thirty (30) days after receipt of an invoice therefor
from Purchaser; provided, Seller’s pro rata portion shall be reduced by any amounts which may have been credited to Purchaser
at Closing with respect to such refunds owed to Tenants. To the extent any additional amounts are due from Tenants with respect
to periods prior to Closing, Purchaser shall promptly pay to Seller its pro rata share of such reimbursements or percentage rents
to the extent actually collected by Purchaser from such Tenants after Closing.

 

    	 	14	 

     

    

 

5.9           Third
Party Payments. Notwithstanding any term, condition or provision of this Agreement to the contrary, any of the amounts which
are allocable between the Seller and Purchaser as set forth in Sections 5.4, 5.5, and 5.6, above that are
payable by any tenant directly to a third party shall not be apportioned hereunder, and (i) Purchaser shall accept fee simple title
to the Property subject to any of such amounts unpaid and Purchaser shall look solely to the tenant responsible therefor for the
payment of same, and (ii) if Seller shall have paid any of such amounts on behalf of any tenant, subject to the other terms of
this Agreement, upon receipt of such amounts from such Tenant, Purchaser shall promptly pay to Seller such amounts to the extent
the amounts paid are attributable to periods from and after the Closing Date to the extent actually collected by Purchaser from
such tenant after Closing.

 

5.10         Leasing
Commissions and Costs. Notwithstanding anything in this Agreement to the contrary, Seller shall be responsible for all Leasing
Costs (as hereinafter defined) that are payable by reason of (i) the execution of a Lease which occurs prior to the Effective Date
(an “Existing Lease”), (ii) the exercise by a tenant of any renewal, extension, expansion or other option under
an Existing Lease, which exercise occurs prior to the Effective Date, (iii) any amendment of an Existing Lease entered into prior
to the Effective Date, and (iv) the execution of the FFY Lease, regardless of whether the FFY Lease is executed prior to or after
the Effective Date.  Purchaser and Seller shall be responsible for all Leasing Costs that become due and payable as a result
of (1) any Leases first entered into on or after the Effective Date (“New Leases”), (2) amendments to Leases
entered into after the Effective Date to renew, extend, expand or otherwise amend Existing Leases or New Leases, and (3) the exercise
by a tenant of any renewal, extension, expansion or other option under an Existing Lease, which exercise occurs on or after the
Effective Date (all such Leasing Costs incurred with respect to each of the foregoing clauses (1), (2) and (3) being herein collectively
called the “Shared Leasing Costs”), in each case prorated as follows:  (i) Seller’s portion shall
be equal to the Shared Leasing Costs times a fraction, the numerator of which shall be the amount of fixed rent due and payable
during the term of such New Lease, amendment, renewal, extension or expansion described above, for the period commencing on the
Effective Date and ending on the day immediately preceding the Closing Date, and the denominator of which shall be equal to the
total amount of the fixed rent payable during the term of such New Lease, amendment, renewal, extension or expansion, and (ii)
Purchaser’s portion shall be equal to the balance of the Shared Leasing Costs payable in respect of each such New Lease,
amendment, renewal, extension or expansion described above.  Purchaser shall assume the economic effect of any “free
rent” or other rent concessions pertaining to the period from and after the Closing under (x) any New Lease, (y) any amendments
to Leases entered into after the Effective Date to renew, extend, expand or otherwise amend Existing Leases or New Leases, and
(z) any exercise by a tenant of any renewal, extension, expansion or other option under an Existing Lease, which exercise occurs
on or after the Effective Date.  For purposes hereof, “Leasing Costs” shall mean, with respect to a particular
Lease, all capital costs, expenses incurred for capital improvements, equipment, painting, decorating, partitioning and other items
to satisfy the construction obligations of the landlord under such Lease (including any expenses incurred for architectural or
engineering services in respect of the foregoing), “tenant allowances” in lieu of or as reimbursements for the foregoing
items, payments made for purposes of satisfying or terminating the obligations of the tenant under such Lease to the landlord under
another lease (i.e., lease buyout costs), relocation costs, temporary leasing costs, leasing commissions, brokerage commissions,
legal, design and other professional fees and costs, in each case, to the extent the landlord is responsible for the payment of
such cost or expense under the relevant Lease or any other agreement relating to such Lease.  If, as of the Closing Date,
Seller shall have paid any Leasing Costs for which Purchaser is responsible pursuant to the foregoing provisions, Purchaser shall
reimburse Seller therefor at Closing.  Seller shall pay (or cause to be paid), prior to Closing, or credit Purchaser at Closing
(to the extent unpaid) all Leasing Costs for which any Seller is responsible pursuant to the foregoing provisions.

 

    	 	15	 

     

    

 

5.11         Right
of Seller for Past Due Rents; Risk and Collection of Uncollected Items. Seller reserves and shall have the right for 180 days
after Closing, at its option and expense, but without obligation to do so, to pursue former and current tenants for Delinquent
Amounts attributable to dates prior to the Closing Date, provided, however, that Seller (a) shall be required to notify Purchaser
in writing of its intention to pursue any legal proceedings and shall keep Purchaser reasonably informed of the status and progress
of any such proceedings; (b) shall be permitted to commence or pursue any such legal proceedings only after the date that is one
(1) month after the Closing Date, and (c) shall not be permitted to commence or pursue any legal proceedings against any tenant
seeking eviction or termination of the applicable Lease or otherwise disturb tenant’s tenancy interest. Seller shall be solely
responsible for, and Purchaser shall have no obligations whatsoever with respect to, any costs or expenses in connection with the
collection of any amounts due to Seller from tenants or other third parties that are to be prorated at Closing but for which Seller
has not received payment by Closing.

 

5.12         Transaction
Costs. Purchaser shall pay (a) the costs of the premium for the Title Policy and all endorsements required by Purchaser, (b)
the costs related to any lender’s policy of title insurance (including any endorsements thereto), (c) the recording fees
for the Deed and for any documents to be recorded, if any, in connection with Purchaser’s financing, (d) any documentary
stamp tax, mortgage tax or intangible tax payable in connection with Purchaser’s financing and (e) the costs of its consultants,
engineers and other professionals in connection with its due diligence (including the cost of the Survey). Purchaser and Seller
shall each pay one-half of the Title Company’s standard closing fees, escrow fees, and other standard closing costs. Seller
shall pay (i) the documentary stamp tax payable in connection with the deed from Seller to Purchaser, (ii) all title search, commitment
and examination fees, (iii) the recording fees for any releases of any Monetary Liens, and (iv) the costs, if any, incurred by
Seller in satisfying the Estoppel Condition. Seller and Purchaser shall, however, be responsible for the fees of their respective
attorneys.

 

5.13         Possession.
Upon Closing, Seller shall deliver to Purchaser exclusive possession of the Property, subject only to the Permitted Exceptions.

 

    	 	16	 

     

    

 

5.14         Tenant
Audits. If, after the Closing, any tenant commences an audit of any year-end reconciliations of tenant pass-through or reimbursable
expenses under the Leases (a “Tenant Audit”) for periods, in whole or in part, prior to the Closing, or if any
Tenant Audits that have been commenced prior to Closing have not been fully completed and resolved as of the Closing, then each
of Seller and Purchaser shall be responsible after the Closing for providing information in its possession requested by tenants
and otherwise cooperating with the other in the resolution of such Tenant Audits. To the extent any tenants are due refunds as
a result of such Tenant Audits, Seller shall pay such amounts as are attributable to the period of its ownership of the Property
(not on the basis of a per diem method of allocation but instead on the basis of the relative share of actual expenses in question
incurred by Seller during the calendar year in question), and Purchaser shall pay such amounts as are attributable to the period
of its ownership of the Property (not on the basis of a per diem method of allocation but instead on the basis of the relative
share of actual expenses in question incurred by Purchaser during the calendar year in question). To the extent any tenants are
required to make additional payments as a result of such Tenant Audits, Seller shall be entitled to such amounts as are attributable
to the period of its ownership of the Property in accordance with the foregoing sentence (and may net any such amounts against
any amounts payable by Seller under the preceding sentence), and Purchaser shall be entitled to such amounts as are attributable
to the period of its ownership of the Property in accordance with the foregoing sentence. Each of Seller and Purchaser shall make
its books and records available after Closing to the other and to tenants per the terms of the Leases for the purposes of audit
rights granted to such tenants.

 

5.15         Post-Closing
Seller Deliveries.  On or before one (1) business day after Closing, Seller
shall deliver to Purchaser’s offices at 11501 Northlake Drive, Cincinnati, Ohio 45249, Attention Director of Lease Administration,
all original Leases, lease files, correspondence files and other books and records, keys to all leased premises, security
codes, if any, and maintenance agreements (e.g., HVAC maintenance agreement) relating solely to the Property in Seller’s
and/or its property and/or asset manager’s possession and all existing plans and specifications (including construction
drawings) in Seller’s possession or control relating to the improvements located upon the Property; all licenses and certificates
of occupancy or such other comparable certificates or documents issued by the appropriate governmental authorities with respect
to the Property or any part thereof, to the extent in Seller’s possession.

 

5.16         Sections
5.4 through 5.15 shall survive the Closing of this Agreement and shall not merge into the deed.

 

6.             CASUALTY
LOSS AND CONDEMNATION.

 

6.1           If
the Property is damaged by fire, storm, or other casualty prior to Closing, Seller shall immediately notify Purchaser in writing
of the same (“Casualty Notice”) and if the cost of repairing such damage is estimated by a licensed architect
selected by Seller:

 

6.1.1           to
be equal to or less than TWO HUNDRED FIFTY THOUSAND AND NO/100 DOLLARS ($250,000), then Purchaser and Seller shall proceed with
Closing as set forth herein without repair of the casualty damage and Purchaser shall receive a credit against the Purchase Price
in the amount of the deductible under Seller’s property casualty insurance coverage for the Property and Seller shall absolutely
assign, transfer and set over to Purchaser all of the right, title and interest of Seller in and to all insurance proceeds from
any insurance on the Property (including any rent loss insurance allocable to the period from and after Closing and less amounts
used, after Seller’s receipt of Purchaser’s prior written consent to the same, for reasonable repairs, provided that
no such prior written consent shall be required for repairs necessitated by emergency) that may thereafter be paid for such damage
or destruction.

 

    	 	17	 

     

    

 

6.1.2           to
be greater than TWO HUNDRED FIFTY THOUSAND AND NO/100 DOLLARS ($250,000), or, in the event that as a result of such casualty Major
Tenant has the right to terminate its Lease, then, notwithstanding anything herein contained to the contrary, either (i) Purchaser
may (as its sole and exclusive remedy) terminate this Agreement by giving notice to such effect to Seller within ten (10) business
days after receipt of the Casualty Notice (in which event the Earnest Money shall be returned to Purchaser and, except for rights,
liabilities and obligations that expressly survive termination, neither Seller nor Purchaser shall have any further rights, obligations
or liabilities under this Agreement) or (ii) Purchaser may proceed with Closing as set forth herein without repair of the casualty
damage and receive an absolute assignment of Seller’s rights, title and interest in any such casualty proceeds (including
all rights, title and interest of Seller in and to all insurance proceeds from Seller’s insurance covering the Property,
including any rent loss insurance allocable to the period from and after Closing and less amounts used, after Seller’s receipt
of Purchaser’s prior written consent to the same, for reasonable repairs, provided that no such prior written consent shall
be required for repairs necessitated by emergency), and a credit against the Purchase Price in the amount of the deductible under
Seller’s insurance coverage for the Property plus any amounts previously paid to Seller as insurance proceeds in connection
with such casualty. The Closing Date, if necessary, shall be extended in order to provide Purchaser with the full ten (10) business
days in which to elect to terminate following receipt of the Casualty Notice. Purchaser’s failure to give timely notice under
Section 6.1.2(i) shall be deemed to be an election under Section 6.1.2(ii).

 

6.2           If
notice of any action, suit or proceeding shall be given prior to Closing for the purpose of condemning any part of the Property,
or if a Material Portion of the Real Property is taken by eminent domain or becomes subject to a taking by eminent domain or a
deed in lieu of condemnation prior to Closing, Seller shall immediately notify Purchaser in writing of the same (the “Eminent
Domain Notice”) and Purchaser must elect, within ten (10) business days after receipt of the Eminent Domain Notice (as
its sole and exclusive remedy) to either (i) terminate this Agreement by giving notice to such effect to Seller (in which event,
the Earnest Money shall be returned to the Purchaser, this Agreement shall terminate and, except for rights, liabilities and obligations
that expressly survive termination, neither Seller nor Purchaser shall have any further rights, obligations or liabilities under
this Agreement), or (ii) proceed with Closing as set forth herein and accept title to the Real Property subject to such taking
or proceeding together with an assignment of all of Seller’s rights, title and interest in and to any proceedings, and proceeds
or compensation that remain unpaid to Seller in connection with such taking and a credit against the Purchase Price for any amounts
previously paid to Seller as condemnation proceeds or compensation in connection with such taking. The Closing Date, if necessary,
shall be extended in order to provide Purchaser with the full ten (10) business days in which to elect to terminate following receipt
of the Eminent Domain Notice. Purchaser’s failure to give timely notice under Section 6.2(i) shall be deemed to be
an election under Section 6.2(ii). As used herein, “Material Portion” shall mean that such taking by
eminent domain or a deed in lieu of condemnation, (a) would reduce the value of the Real Property by TWO HUNDRED FIFTY THOUSAND
AND NO/100 DOLLARS ($250,000) or more, (b) would allow Major Tenant to terminate its Lease, (c) would permanently reduce the parking
ratio at the Property below current zoning requirements or the requirements set forth in Major Tenant’s Lease; or (d) which
would permanently impede in any material way any of the vehicular access points into the Real Property through the condemnation
(or the tendering of a deed in lieu thereof) of any such access points or through the permanent closure or material reduction in
the utility of any of the roadways adjoining the Real Property or in proximity to the Real Property (e.g., the reduction of the
number of lanes within a roadway servicing the Real Property or the actual closure of any such roadway). In the event a portion
of the Real Property that is not a Material Portion is taken or to be taken by eminent domain or becomes subject to a taking by
eminent domain or a deed in lieu of condemnation prior to Closing, then Purchaser and Seller shall proceed with Closing as set
forth herein and Purchaser shall accept title to the Real Property subject to such taking or proceeding, together with an assignment
of all of Seller’s rights, title and interest in and to any proceedings, and proceeds or compensation that remain unpaid
to Seller in connection with such taking and shall receive a credit against the Purchase Price for any amounts previously paid
to Seller as condemnation proceeds or compensation in connection with such taking.

 

    	 	18	 

     

    

 

7.             BROKERAGE.
Seller and Purchaser represent and warrant that the only broker they have used in connection with this transaction is HFF (“Broker”).
If and only if Closing occurs, Seller agrees to pay any and all brokerage commission or other fees due to Broker pursuant to a
separate agreement for services rendered in connection with the sale and purchase of the Property and Seller shall indemnify and
hold harmless Purchaser from and against any liability in connection with any and all brokerage commission or other fees due to
Broker. Seller and Purchaser shall each indemnify and hold the other harmless from and against any and all claims of all other
brokers and finders claiming by, through or under the indemnifying party and in any way related to the sale and purchase of the
Property, this Agreement or otherwise, including, without limitation, reasonable attorneys’ fees and expenses incurred by
the indemnified party in connection with such claim. Seller and Purchaser acknowledge that Broker shall not make and Broker has
no authority to make on behalf of Seller any representations regarding the Property or its condition, use or cost. This Section
7 shall survive the termination of this Agreement.

 

8.             DEFAULT
AND REMEDIES.

 

8.1           Notwithstanding
anything to the contrary contained in this Agreement, if Seller fails to perform any of its obligations or agreements contained
herein prior to Closing in accordance with the terms of this Agreement and fails to cure such default within five (5) business
days following written notice thereof from Purchaser, then, as Purchaser’s sole and exclusive remedy, Purchaser shall elect
either: (i) to terminate this Agreement, in which event, the Title Company shall immediately return the Earnest Money to Purchaser,
and, Seller shall within 10 days after receipt of a reasonably detailed statement therefor from Purchaser, together with reasonable
supporting documentation evidencing such costs and expenses, reimburse to Purchaser all third party out of pocket costs and expenses
incurred by Purchaser in connection with the Transaction, up to a maximum of $30,000.00, including reasonable legal fees and due
diligence expenses, and upon such termination and payment of such reimbursement, neither party shall have any further rights, liabilities
or obligations under this Agreement (except for those that expressly survive termination), or (ii) to enforce specific performance
of this Agreement, provided that any suit for specific performance must be brought within thirty (30) days after Seller’s
default, failing which, Purchaser shall be deemed to have waived its right to specific performance to the maximum extent permitted
by law. In the event specific performance is not available to Purchaser because Seller has sold, transferred, or otherwise
conveyed the Property to a bona fide third party in breach of this Agreement, then, in the event
of termination of this Agreement by Purchaser, in addition to the return of the Earnest Money to Purchaser and payment of such
reimbursement amount as aforesaid up to a maximum of $30,000.00, Seller shall, within five (5) business days thereafter, pay to
Purchaser, as liquidated damages and not as a penalty, an amount equal to the amount of the Earnest Money, the same being deemed
Purchaser’s damages on account thereof, the exact amount of damages to be suffered by Purchaser on account of any such default
being difficult if not impossible to ascertain and Purchaser and Seller agreeing that such amount is a reasonable approximation
of the damages to be suffered by Purchaser on account thereof.

 

    	 	19	 

     

    

 

8.2           Notwithstanding
anything to the contrary contained in this Agreement, if Purchaser fails to perform any of its obligations or agreements contained
herein in accordance with the terms of this Agreement and fails to cure such default within five (5) business days following written
notice thereof from Seller (provided, however, that no cure period shall extend into 2017 for Purchaser’s failure to close
on the Closing Date), then Seller, as Seller’s sole and exclusive remedy hereunder may terminate this Agreement and receive
the Earnest Money as liquidated damages, and upon such termination, neither party shall have any further rights, liabilities or
obligations under this Agreement (except for those that expressly survive termination). The parties acknowledge and agree that
the actual damages in the event of a default by Purchaser are uncertain in amount and difficult to ascertain, and that the Earnest
Money, as a liquidated damages amount, is reasonable.

 

8.3           Notwithstanding
anything to the contrary contained in this Agreement, in no event shall either party hereto be liable for, and each party, on behalf
of itself and its respective successors and assigns, hereby waives any claim against the other for, any consequential, special,
indirect, or punitive damages arising under or in connection with this Agreement.

 

8.4           The
provisions of this Section shall not limit Purchaser’s or Seller’s right to pursue and recover on a claim with respect
to any of obligations surviving the Closing.

 

9.             REPRESENTATIONS
AND WARRANTIES.

 

9.1           Representations
and Warranties of Seller. As of the Effective Date, Seller represents and warrants to Purchaser as follows, subject to the
other provisions of this Agreement:

 

9.1.1           Seller
is a limited liability company, duly formed, validly existing and in good standing, and is qualified to do business under, the
laws of the State of Delaware.

 

9.1.2           Seller
is the sole owner of the Property and has the right to execute this Agreement and, except for the rights of Major Tenant to purchase
the Property pursuant to the terms of its Lease, to sell the Property without obtaining the consent, approval, release, or signature
of any other party. Seller has full power, right and authority to enter into and perform its obligations under this Agreement and
the Seller’s Closing Documents and bind Seller hereto. The execution, delivery and performance of this Agreement and Seller’s
Closing Documents by Seller and the signatories hereof have been duly and properly authorized by proper limited liability company
action in accordance with applicable law and with the operating agreement of Seller such that this Agreement constitutes a valid
and legally binding obligation of Seller, enforceable against Seller in accordance with its terms.

 

    	 	20	 

     

    

 

9.1.3           To
Seller’s knowledge, Seller has not received from any governmental authority written notice of any violation of any building,
fire, health code, environmental, zoning ordinance or the Americans with Disabilities Act or any other federal, state or local
statute, ordinance, rule or other law (collectively referred to herein as “Applicable Laws”) that remains uncured
and would be applicable to the Property.

 

9.1.4           Attached
hereto as Exhibit C is a true and complete listing of all union, maintenance, service, brokerage, advertising and other
like contracts and agreements to which Seller is a party affecting the ownership and operation of the Property (collectively, the
“Service Contracts”). Other than as set forth in the Service Contracts, Seller has not contracted for any services
or employment at the Real Property. Seller has made no commitments or obligations therefor which will bind Purchaser as a successor-in-interest
with respect to the Real Property.

 

9.1.5           Exhibit
I-1 is a rent roll which is a true and correct list of all leases in effect at the Property (the “Leases”),
except for those listed as “Deep Green” and “Divisions Maintenance Group”. To Seller’s knowledge,
except as disclosed on Exhibit I-2, the rent roll truly, accurately, fully and completely sets forth the information to
be contained therein, the Leases are in full force and effect, no tenant is in default under any Lease, and Seller has not received
written notice that Seller is in default under any Lease. To Seller’s knowledge, the Leases delivered to Purchaser by Seller
are all of the lease documents and/or occupancy agreements with respect to the Real Property in Seller’s possession and are
true, accurate and complete copies of the Leases in Seller’s possession. To Seller’s knowledge, none of the tenants
under the Leases have any options or rights of first refusal to acquire the Real Property except for Major Tenant.

 

9.1.6           Except
as set forth on Exhibit L attached hereto (the “Pending Litigation List”), Seller has not received written
notice of any litigation, arbitration, mediation, action, suit, investigation, proposed condemnation or any other proceeding of
any kind pending, or to Seller’s knowledge, threatened or contemplated against the Property.

 

9.1.7           Seller
and all persons or entities having beneficial interests in the Property are “United States Persons,” and are not “foreign
persons”, “foreign partnerships,” “foreign trusts,” or “foreign estates” as defined in
Section 1445(f)(3) and Section 7701(g) of the Internal Revenue Code of 1986, as amended and the purchase of the Property by Purchaser
as contemplated herein will not be subject to the withholding requirements of Section 1445(a) of the Code.

 

9.1.8           The
execution and delivery of this Agreement and the Seller’s Closing Documents and the consummation of the Transaction will
not result in any breach of the terms of, conditions of, or constitute a default under, any instrument or obligation by which Seller
or the Property is bound, or violate any order, writ, injunction or decree of any court in any litigation or statute, rule or regulation
which is applicable to Seller or to the Property.

 

    	 	21	 

     

    

 

9.1.9           Seller
is not a person or entity that and shall not be a person or entity that: (i) is acting, directly or indirectly, on behalf of terrorists
or terrorist organizations, including those persons or entities that are included on any of the applicable lists issued by the
U.S. Office of Foreign Assets Control (“OFAC”); (ii) resides or has a place of business in a country or territory
named on any of such lists or which is designated as a Non-Cooperative Jurisdiction by the Financial Action Task Force on Money
Laundering (“FATF”); (iii) is a “Foreign Shell Bank” within the meaning of the USA Patriot Act;
or (iv) resides in or is organized under the laws of a jurisdiction designated by the U.S. Secretary of the Treasury under Sections
311 or 312 of the USA Patriot Act as warranting special measures due to money laundering concerns. Seller is not engaging in such
transaction, directly or indirectly, in violation of any Laws relating to drug trafficking, money laundering or predicate crimes
to money laundering. The investment of direct or indirect equity owners in Seller is not prohibited by applicable law and neither
the transaction contemplated hereby nor this Agreement is or will be in violation of applicable law. Seller has and will continue
to implement procedures, and has consistently and will continue consistently to apply those procedures, to ensure the foregoing
representations and warranties remain true and correct at all times prior to Closing.

 

9.1.10         Except
as set forth in the Leases, no tenants of the Real Property are entitled to any concessions, rebates, allowances, or free rent
or any other Leasing Costs for any period after the Closing. Except as set forth in Exhibit I-2, none of the Leases or other
instruments that will be assigned to Purchaser at Closing provide for leasing or brokerage commissions payable by the owner of
the Property that have not yet been paid by Seller.

 

9.1.11         Seller
has no employees at the Real Property and is not a party to any collective bargaining agreement, and neither Seller nor any of
its affiliates (as described in Section 414(b), (c) and (m) of the Internal Revenue Code) has incurred any liability which could
subject Purchaser or any asset to be acquired by Purchaser pursuant to this Agreement to any lien or material liability under Sections
302(f), 4062, 4063, 4064, 4201 or 4301(b) of the Employee Retirement Income Security Act of 1974, as amended, or Section 401(a)
(29) or 412 of the Internal Revenue Code.

 

9.1.12         Seller
has no knowledge that Major Tenant intends to cease operations from the Real Property. To the extent Seller obtains such knowledge
during the term of this Agreement prior to Closing, Seller shall promptly inform Purchaser of the same, failing of which, the same
shall be deemed a breach of the foregoing representations and warranties.

 

9.1.13         Seller
has not received written notice from any counterparty to the REA that Seller or the Property is in default under the REA.

 

9.1.14         The
operating budget, operating statements, general ledgers, capital budgets, reconciliation statements and all other financial statements
delivered or to be delivered or made available for review and copying by Seller to Purchaser, are used by Seller in the ordinary
course of Seller’s business.

 

9.2           Seller’s
Knowledge. When used in this Agreement, the term “to Seller’s knowledge” (a) shall mean and be limited to
the actual (and not imputed, implied or constructive) current knowledge, without duty of inquiry, of Christian Trani, Asset Manager
(the “Knowledge Individual”) and not to any other persons or entities, and (b) shall not apply to or be construed
to apply to information or material which may be in the possession of Seller generally or incidentally, but which is not actually
known to the Knowledge Individual. Similarly, any reference to any written notice, claim, litigation, filing or other correspondence
or transmittal to Seller set forth herein shall be limited to refer to only those actually received by or known to the Knowledge
Individual in the limited manner provided in clauses (a) - (b) above. Notwithstanding anything to the contrary set forth in this
Agreement, the Knowledge Individual shall have no personal liability whatsoever with respect to any matters set forth in this Agreement
or any of Seller’s representations and/or warranties herein being or becoming untrue, inaccurate or incomplete.

 

    	 	22	 

     

    

 

9.3           Representations
and Warranties of Purchaser. As of the Effective Date, Purchaser represents and warrants to Seller as follows:

 

9.3.1           Purchaser
is a limited liability company, duly incorporated, validly existing and in good standing under the laws of the State of Delaware;

 

9.3.2           Purchaser
has full power, right and authority to enter into and perform its obligations under this Agreement, and the execution, delivery
and performance of this Agreement by Purchaser have been duly and properly authorized by proper limited liability company action
in accordance with applicable law and with the governing documents of Purchaser, such that this Agreement constitutes a valid and
legally binding obligation of Purchaser, enforceable against Purchaser in accordance with its terms.

 

9.3.3           Purchaser
is not a person or entity that and shall not be a person or entity that: (i) is acting, directly or indirectly, on behalf of terrorists
or terrorist organizations, including those persons or entities that are included on any of the applicable lists issued by OFAC;
(ii) resides or has a place of business in a country or territory named on any of such lists or which is designated as a Non-Cooperative
Jurisdiction by FATF; (iii) is a “Foreign Shell Bank” within the meaning of the USA Patriot Act; or (iv) resides in
or is organized under the laws of a jurisdiction designated by the U.S. Secretary of the Treasury under Sections 311 or 312 of
the USA Patriot Act as warranting special measures due to money laundering concerns; and

 

9.3.4           The
execution and delivery of this Agreement and all other documents executed by Purchaser in connection with the Transaction, and
the consummation of the Transaction will not result in any breach of the terms of, conditions of, or constitute a default under,
any instrument or obligation by which Purchaser is bound, or violate any order, writ, injunction or decree of any court in any
litigation to which Purchaser is a party.

 

9.4           Survival
of Representations and Warranties. The representations and warranties set forth in this Section 9 shall be deemed to
be remade as of Closing and shall survive the Closing and the delivery of the deed for a period of one hundred eighty (180) days
from the Closing Date (the “Survival Period”). Notice of any claim as to a breach of any representation or warranty
must be made to Seller (or to Purchaser, as applicable) prior to the expiration of such Survival Period. Provided notice is sent
within such Survival Period, the party making the claim shall have until the later of (x) thirty (30) days after the non-claiming
party provides written notice of its denial of the claim, or (y) thirty (30) days after the expiration of the Survival Period to
commence an action with respect to the claim. If an action is not commenced within the applicable 30-day period above, the claiming
party will be deemed to have waived its right to assert such claim.

 

    	 	23	 

     

    

 

9.5           Modifications
of Representations and Warranties. If at any time after the Effective Date and prior to Closing, either Purchaser or Seller
becomes aware of information that causes a representation and warranty contained in Section 9.1 or Section 9.3 to
become untrue in any material respect, said party shall promptly disclose said information in writing to the other party hereto
(a “Disclosure Notice”). If Closing occurs, such representations and warranties shall be deemed qualified and
amended as set forth in the Disclosure Notice (and, in such event, Seller shall no longer have any liability hereunder with respect
to that portion of the representation, warranty or certification superseded herein). Further, all representations and warranties
of Seller are deemed updated by virtue of the contents and disclosures set forth in any Estoppel Certificate delivered to Purchaser
in connection with this Agreement.

 

9.6           Purchaser
Knowledge. Notwithstanding anything contained in this Agreement to the contrary, all of the representations, warranties and
certifications (collectively, the “Representations”) which are made by Seller and set forth herein or in any
of the documents or instruments required to be delivered by Seller hereunder, shall be subject to the following conditions and
limitations: (a) there shall be no liability on the part of Seller for any breach of a Representation arising from any matter or
circumstance of which Purchaser had knowledge at Closing (including matters and circumstances described in any Disclosure Notice);
and (b) in the event that prior to the time of Closing, during the course of Purchaser’s inspections, studies, tests and
investigations conducted pursuant to Section 4.1 hereof, or through other sources (including any Disclosure Notice), Purchaser
gains knowledge of a fact or circumstance which, by its nature, indicates that a Representation was or has become untrue or inaccurate,
and such fact or circumstance was not intentionally withheld from Purchaser by Seller with the intent to defraud Purchaser, then
Purchaser shall not have the right to bring any lawsuit or other legal action against Seller, nor pursue any other remedies against
Seller, as a result of the breach of the Representation caused thereby, but Purchaser’s sole and exclusive right and remedy
shall be to terminate this Agreement, in which event the Earnest Money shall be returned to Purchaser and neither party shall have
any further obligations to the other party hereunder, except for the obligations that expressly survive termination of this Agreement;
provided, however, that such right of termination shall not be available for breaches of Representations that have no material
impact on the value of the Property. The parties hereto expressly acknowledge and agree that none of Seller’s representations,
warranties or covenants herein may be relied on by the Title Company, whether by subrogation or otherwise.

 

9.7           Limitation
on Liability. Purchaser agrees that its sole remedies with respect to any untruth or inaccuracy of Seller’s representations
and warranties that are discovered after the Closing are set forth in this Section 9.7. Until the expiration of the Survival
Period, Seller shall indemnify, defend and hold harmless Purchaser of and from any and all losses, costs, liabilities, damages
and expenses, including attorneys’ fees and costs, incurred by Purchaser on account of the breach by Seller of any one or
more of the Representations. Purchaser’s failure to (i) deliver written notice to Seller asserting a claim, on or before
the expiration of the Survival Period, and (ii) file suit in a court of competent jurisdiction with respect thereto in accordance
with the time periods set forth in Section 9.4 above, shall be deemed a waiver and release of all claims for losses resulting
from any breach of Seller’s representations and warranties that were first discovered by Purchaser after Closing. Notwithstanding
the foregoing, in no event shall the amount of such losses, costs, liabilities, damages and expenses for which Seller shall be
liable under this indemnification exceed, when aggregated together with all other losses for which Seller is liable pursuant to
this Agreement, THREE HUNDRED FIFTY THOUSAND AND NO/100 DOLLARS ($350,000.00) (the “Maximum Loss Amount”). For
purposes hereof, Purchaser agrees that unless the total aggregate damages incurred by Purchaser exceed TWENTY THOUSAND AND NO/100
DOLLARS ($20,000.00) (the “Floor”), Purchaser shall not make any claim against Seller in connection therewith
and Seller shall have no liability in connection therewith, but for the avoidance of doubt, in the event damages exceed the Floor,
Seller’s liability shall extend to the entire amount of Purchaser’s damages (not to exceed the Maximum Loss Amount).
Kite Realty Group, L.P. (“Member”) hereby joins in the execution of this Agreement to evidence its guaranty
of all sums due from Seller under the foregoing indemnity. This Section 9.7 shall survive the Closing until the expiration
of the Survival Period, if Closing shall occur, and shall survive termination of this Agreement, if this Agreement is terminated.

 

    	 	24	 

     

    

 

10.           AS-IS.

 

10.1         ACKNOWLEDGING
THE PRIOR USE OF THE PROPERTY AND PURCHASER’S OPPORTUNITY TO INSPECT THE PROPERTY, EXCEPT AS OTHERWISE PROVIDED IN THIS AGREEMENT
AND SELLER’S CLOSING DOCUMENTS (INCLUDING THE EXPRESS REPRESENTATIONS AND WARRANTIES CONTAINED HEREIN), PURCHASER AGREES
TO TAKE THE PROPERTY “AS IS”, “WHERE IS”, WITH ALL FAULTS AND CONDITIONS THEREON. EXCEPT AS OTHERWISE PROVIDED
IN THIS AGREEMENT AND SELLER’S CLOSING DOCUMENTS (INCLUDING THE EXPRESS REPRESENTATIONS AND WARRANTIES CONTAINED HEREIN),
ANY INFORMATION, REPORTS, STATEMENTS, DOCUMENTS OR RECORDS (“DISCLOSURES”) PROVIDED OR MADE TO PURCHASER OR ITS CONSTITUENTS
BY SELLER, ITS AGENTS OR EMPLOYEES CONCERNING THE CONDITION (INCLUDING, BUT NOT LIMITED TO, THE ENVIRONMENTAL CONDITION) OF THE
PROPERTY SHALL NOT BE REPRESENTATIONS OR WARRANTIES, UNLESS SPECIFICALLY SET FORTH IN THIS AGREEMENT OR SELLER’S CLOSING
DOCUMENTS. PURCHASER SHALL NOT RELY ON DISCLOSURES (OTHER THAN THOSE EXPRESSLY PROVIDED IN THIS AGREEMENT OR SELLER’S CLOSING
DOCUMENTS), BUT RATHER, PURCHASER SHALL RELY ONLY ON ITS OWN INSPECTION OF THE PROPERTY. PURCHASER ACKNOWLEDGES THAT THE PURCHASE
PRICE REFLECTS AND TAKES INTO ACCOUNT THAT THE PROPERTY IS BEING SOLD “AS IS”.

 

    	 	25	 

     

    

 

10.2         PURCHASER
ACKNOWLEDGES AND AGREES THAT EXCEPT AS SPECIFICALLY SET FORTH IN THIS AGREEMENT AND SELLER’S CLOSING DOCUMENTS (INCLUDING
THE EXPRESS REPRESENTATIONS AND WARRANTIES CONTAINED HEREIN), SELLER HAS NOT MADE, DOES NOT MAKE AND SPECIFICALLY DISCLAIMS ANY
REPRESENTATIONS, WARRANTIES, PROMISES, COVENANTS, AGREEMENTS OR GUARANTIES OF ANY KIND OR CHARACTER WHATSOEVER, WHETHER EXPRESS
OR IMPLIED, ORAL OR WRITTEN, PAST, PRESENT OR FUTURE, OF, AS TO, CONCERNING OR WITH RESPECT TO (A) THE NATURE, QUALITY OR CONDITION
OF THE PROPERTY, INCLUDING, WITHOUT LIMITATION, THE WATER, SOIL AND GEOLOGY, (B) THE INCOME TO BE DERIVED FROM THE PROPERTY, (C)
THE SUITABILITY OF THE PROPERTY FOR ANY AND ALL ACTIVITIES AND USES WHICH PURCHASER MAY CONDUCT THEREON, (D) THE COMPLIANCE OF
OR BY THE PROPERTY OR ITS OPERATION WITH ANY LAWS, RULES, ORDINANCES OR REGULATIONS OF ANY APPLICABLE GOVERNMENTAL AUTHORITY OR
BODY, (E) THE HABITABILITY, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF THE PROPERTY, (F) THE MANNER OR QUALITY OF THE
CONSTRUCTION OR MATERIALS, IF ANY, INCORPORATED INTO THE PROPERTY, (G) THE MANNER, QUALITY, STATE OF REPAIR OR LACK OF REPAIR OF
THE PROPERTY, (H) ANY LEASES, SERVICE CONTRACTS OR OTHER AGREEMENTS AFFECTING THE PROPERTY, OR (I) ANY OTHER MATTER WITH RESPECT
TO THE PROPERTY, AND SPECIFICALLY DISCLAIMS ANY REPRESENTATIONS REGARDING TERMITES OR WASTES, AS DEFINED BY THE U.S. ENVIRONMENTAL
PROTECTION AGENCY REGULATIONS AT 40 C.F.R., OR ANY HAZARDOUS SUBSTANCE, AS DEFINED BY THE COMPREHENSIVE ENVIRONMENTAL RESPONSE
COMPENSATION AND LIABILITY ACT OF 1980 (“CERCLA”), AS AMENDED, AND REGULATIONS PROMULGATED THEREUNDER. PURCHASER, ITS
SUCCESSORS AND ASSIGNS, HEREBY WAIVE, RELEASE AND AGREE NOT TO MAKE ANY CLAIM OR BRING ANY COST RECOVERY ACTION OR CLAIM FOR CONTRIBUTION
OR OTHER ACTION OR CLAIM AGAINST SELLER OR ITS AFFILIATES, DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, ATTORNEYS, OR ASSIGNS (COLLECTIVELY,
OR INDIVIDUALLY AS THE CONTEXT REQUIRES, “SELLER AND/OR ITS AFFILIATES”) BASED ON (I) ANY FEDERAL, STATE, OR LOCAL
ENVIRONMENTAL OR HEALTH AND SAFETY LAW OR REGULATION, INCLUDING CERCLA OR ANY STATE EQUIVALENT, OR ANY SIMILAR LAW NOW EXISTING
OR HEREAFTER ENACTED, (II) ANY DISCHARGE, DISPOSAL, RELEASE, OR ESCAPE OF ANY CHEMICAL, OR ANY MATERIAL WHATSOEVER, ON, AT, TO,
OR FROM THE PROPERTY; OR (III) ANY ENVIRONMENTAL CONDITIONS WHATSOEVER ON, UNDER, OR IN THE VICINITY OF THE PROPERTY.

 

10.3        PURCHASER REPRESENTS
TO SELLER THAT PURCHASER HAS CONDUCTED, OR WILL CONDUCT PRIOR TO CLOSING, SUCH INVESTIGATIONS OF THE PROPERTY, INCLUDING, BUT NOT
LIMITED TO, THE PHYSICAL AND ENVIRONMENTAL CONDITIONS THEREOF, AS PURCHASER DEEMS NECESSARY OR DESIRABLE TO SATISFY ITSELF AS TO
THE CONDITION OF THE PROPERTY AND THE EXISTENCE OR NONEXISTENCE OR CURATIVE ACTION TO BE TAKEN WITH RESPECT TO ANY HAZARDOUS OR
TOXIC SUBSTANCES ON OR DISCHARGED FROM THE PROPERTY, AND, EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT (INCLUDING THE EXPRESS
REPRESENTATIONS AND WARRANTIES CONTAINED HEREIN), AND IN SELLER’S CLOSING DOCUMENTS, WILL RELY SOLELY UPON SAME AND NOT UPON
ANY INFORMATION PROVIDED BY OR ON BEHALF OF SELLER OR ITS AGENTS OR EMPLOYEES WITH RESPECT THERETO. UPON CLOSING, PURCHASER SHALL
ASSUME THE RISK THAT ADVERSE MATTERS, INCLUDING BUT NOT LIMITED TO, CONSTRUCTION DEFECTS AND ADVERSE PHYSICAL AND ENVIRONMENTAL
CONDITIONS, MAY NOT HAVE BEEN REVEALED BY PURCHASER’S INVESTIGATIONS, AND PURCHASER, UPON CLOSING, SHALL BE DEEMED TO HAVE
WAIVED, RELINQUISHED AND RELEASED SELLER AND/OR ITS AFFILAIATES FROM AND AGAINST ANY AND ALL CLAIMS, DEMANDS, CAUSES OF ACTION
(INCLUDING CAUSES OF ACTION IN TORT), LOSSES, DAMAGES, LIABILITIES, COSTS AND EXPENSES (INCLUDING REASONABLE ATTORNEYS’ FEES)
OF ANY AND EVERY KIND OR CHARACTER, KNOWN OR UNKNOWN, WHICH PURCHASER MIGHT HAVE ASSERTED OR ALLEGED AGAINST SELLER AND/OR
ITS AFFILIATES AT ANY TIME BY REASON OF OR ARISING OUT OF ANY LATENT OR PATENT CONSTRUCTION DEFECTS OR PHYSICAL CONDITIONS, VIOLATIONS
OF ANY APPLICABLE LAWS AND ANY AND ALL OTHER ACTS, OMISSIONS, EVENTS, CIRCUMSTANCES OR MATTERS REGARDING THE PROPERTY. 

 

    	 	26	 

     

    

 

10.4         PURCHASER,
WITH PURCHASER’S COUNSEL, HAS FULLY REVIEWED THE DISCLAIMERS AND WAIVERS SET FORTH IN THIS AGREEMENT, INCLUDING, WITHOUT
LIMITATION, IN THIS SECTION 10, AND UNDERSTANDS THEIR SIGNIFICANCE AND EFFECT. PURCHASER ACKNOWLEDGES AND AGREES THAT THE
DISCLAIMERS AND OTHER AGREEMENTS SET FORTH IN THIS AGREEMENT, INCLUDING, WITHOUT LIMITATION, IN THIS SECTION 10, ARE AN
INTEGRAL PART OF THIS AGREEMENT, AND THAT SELLER WOULD NOT HAVE AGREED TO SELL THE PROPERTY TO PURCHASER FOR THE PURCHASE PRICE
WITHOUT THE DISCLAIMERS AND OTHER AGREEMENTS SET FORTH IN THIS AGREEMENT, INCLUDING, WITHOUT LIMITATION, IN THIS SECTION 10.
THE TERMS AND CONDITIONS OF THIS SECTION 10 WILL EXPRESSLY SURVIVE THE CLOSING OR ANY TERMINATION OF THIS AGREEMENT AND
WILL NOT MERGE WITH THE PROVISIONS OF ANY CLOSING DOCUMENTS.

 

11.           LIMITATION
OF LIABILITY. Except as specifically set forth in Section 9.7 of this Agreement, no constituent member in, manager or
agent of Seller, nor any advisor, trustee, director, officer, employee, beneficiary, shareholder, participant, representative or
agent of any corporation or trust that is or becomes a constituent member in Seller (including, but not limited to, Kite Realty
Group, L.P. and Kite Realty Group Trust). shall have any personal liability, directly or indirectly, under or in connection with
this Agreement or any agreement or document made, delivered or entered into under or pursuant to the provisions of this Agreement
or any amendment or amendments to any of the foregoing made at any time or times, heretofore or hereafter, and Purchaser and its
successors and assigns and, without limitation, all other persons and entities, shall look solely to Seller’s estate and
interest in the Property (and all profits, awards, income and other proceeds therefrom) for satisfaction of any liability of Seller
with respect to this Agreement and all documents, agreements, understandings, and arrangements relating to the Transaction, and,
except as provided herein, Purchaser, on behalf of itself and its successors and assigns, hereby waives any and all such personal
liability. The provisions of this Section 11 shall survive termination of this Agreement

 

12.           OPERATION
OF THE PROPERTY

 

From the Effective Date
until the Closing Date or earlier termination of this Agreement, Seller shall own, manage and operate the Property in a manner
consistent with past practices. Specifically, Seller hereby covenants and agrees to the following:

 

    	 	27	 

     

    

 

12.1         Seller
may (subject to the remaining provisions of this Section 12.1 and Section 12.2), in the ordinary course and consistent
with Seller’s current practices, negotiate with prospective tenants. Between the Effective Date and the date three (3) business
days prior to the expiration of the Review Period, Seller may enter into any new written leases, contracts, easements or other
agreements affecting the Property or its operation (or any modifications, renewals, supplements, terminations, extensions, side
letters or other agreements relating to any existing Leases, contracts, easements or agreements) and shall provide Purchaser notice
thereof, together with a copy of such lease, contract, easement or other agreement, on or before the date three (3) business days
prior to the expiration of the Review Period. From and after the date three (3) business days prior to the expiration of the Review
Period, Seller shall not enter into any new leases, contracts, easements or other agreements affecting the Property or its operation
(or any modifications, renewals, supplements, terminations, extensions, side letters or other agreements relating to any existing
Leases, contracts, easements or agreements), other than (a) any lease agreement or amendment or termination which is required pursuant
to an existing Lease or memorializes an exercise of an existing right or option under an existing Lease, and (b) service contracts
or other agreements entered into in the ordinary course of business and which are cancelable by Seller without penalty on or before
the Closing Date, unless Seller obtains Purchaser’s prior written consent, which consent, after the date three (3) business
days prior to the expiration of the Review Period, may be given or denied in Purchaser’s sole discretion. In any case where
Purchaser’s consent is required under this Section 12.1, if Purchaser does not respond to Seller’s consent request
within five (5) business days of Seller’s request, Purchaser shall be deemed to have consented to the subject of the consent
request. No rents or deposits with respect to the Property are or on the Closing Date will be held by Seller, except security deposits
and prepaid rents for the current month.

 

12.2         Any
leases consented to (or deemed consented to) by Purchaser pursuant to Section 12.1 shall constitute Leases for all purposes
under this Agreement (and any references herein to the term “Leases” shall mean and include those consented to pursuant
to Section 12.1) and shall be added to Exhibit I-2 attached hereto. Notwithstanding Section 12.1 of this Agreement,
Seller shall have the unilateral right, in Seller’s sole but reasonable discretion, in an emergency situation to enter into
any contract or agreement necessary to protect the Property and/or the persons thereon, provided that (a) Seller fully performs
all obligations under such contract or agreement (monetary or non-monetary) and (b) the contract or agreement is terminated on
or before the Closing Date.

 

12.3 Seller shall continue
to offer the Property for lease in the same manner as currently conducted pursuant to its normal course of business and shall keep
Purchaser reasonably informed as to the status of leasing prior to the Closing Date.

 

12.4         Seller
shall conduct the business of the Property in the ordinary course and Seller shall not (i) sell, further pledge, or otherwise transfer
or dispose of all or any part of any Property (except for such items of Personal Property as become obsolete or are disposed of
in the ordinary course of business) or any direct interest in Seller, or enter into any agreement to do so; (ii) create or agree
to any easements, liens, mortgages, encumbrances or other interests that would affect the Property or Seller’s ability to
comply with this Agreement; (iii) fail to maintain and repair the Property in at least the manner that Seller has done previously;
and/or (iv) terminate any tax appeals, condemnation awards proceedings, insurance settlement negotiations or proceedings, zoning
changes, public roadway and/or traffic realignment negotiations with public authorities or the like, and/or storm water management
agreements, and the like benefiting the Property. In the event that Seller receives any notices of violation of laws or municipal
ordinances, regulations, orders or requirements of departments of housing, building, fire, labor, health, or other state, city
or municipal departments or other governmental authorities having jurisdiction against or affecting the Property or the use or
operation thereof, and Seller does not promptly comply with the same, Purchaser may elect to terminate this Agreement and, in such
event this Agreement shall be of no further force or effect and the Earnest Money shall be returned to Purchaser and neither party
shall have any further liability or obligation hereunder except those that expressly survive termination.

 

    	 	28	 

     

    

 

12.5         Seller
shall terminate (or deliver written notice of termination with respect to) all Service Contracts so that all Service Contracts
are terminated on or before the Closing Date.

 

12.6         Seller
shall maintain in full force and effect its current or equivalent property insurance on the Property and shall give Purchaser prompt
written notice of any fire or other casualty or any notice regarding condemnation, eminent domain or any other taking affecting
the Property after the Effective Date.

 

12.7         Seller
shall use best efforts to promptly deliver to Purchaser copies of any written communications (including e-mails, letters, invoices
and the like) sent by Seller to, or received by Seller from, any tenants of the Property or service or materials providers to the
Property relating to defaults, audits, repair requests, lease or other contract modifications, terminations, extensions, payment
requests, and other similar communications of a material nature sent or received from and after the Effective Date up through the
Closing.

 

13.           MISCELLANEOUS.

 

13.1         All
prior understandings and agreements heretofore between Seller and Purchaser with respect to the Property are merged in this Agreement
and Seller’s Closing Documents. This Agreement, Seller’s Closing Documents and Purchaser’s Closing Documents
fully and completely express the agreement of the parties, there are no written or oral agreements between the parties relating
to this transaction that are not expressly set forth herein and this Agreement supersedes all prior oral or written agreements
relating to this Transaction. Purchaser further acknowledges that, except as expressly provided in this Agreement and the Seller’s
Closing Documents, neither Seller nor Purchaser nor any agent or representative of such party has made, and Seller or Purchaser,
as applicable, is not liable for or bound in any manner by, any express or implied warranties, guarantees, promises, statements,
inducements, representations or information pertaining to the Property.

 

13.2         Purchaser’s
rights and obligations hereunder shall not be assignable without the prior written consent of Seller in Seller’s sole discretion.
Notwithstanding the foregoing, Purchaser shall have the right, without the necessity of obtaining Seller’s consent but with
prior written notice to Seller, to assign its right, title and interest in and to this Agreement to any subsidiary of either of
its affiliates Phillips Edison Grocery Center REIT I or Phillips Edison Grocery Center REIT II or other entity that is wholly-owned
or controlled by Purchaser or its principals, at any time before the Closing Date. Purchaser shall in no event by released from
any of its obligations or liabilities hereunder in connection with any assignment. Subject to the foregoing, this Agreement shall
inure to the benefit of and shall be binding upon Seller and Purchaser and their respective successors and assigns.

 

13.3         This
Agreement shall not be modified or amended except in a written document signed by Seller and Purchaser.

 

    	 	29	 

     

    

 

13.4         This
Agreement shall be governed and interpreted in accordance with the laws of the State, without reference to its choice of law principles.

 

13.5         Any
notice required or permitted to be delivered hereunder shall be in writing and be deemed received when (i) personally delivered
(including delivery via email, provided that such email specifically states that it is intended to be notice as required pursuant
to Section 13.5 of this Agreement and delivery is confirmed), or (ii) one (1) business day after being deposited with a
nationally recognized overnight courier service, charges prepaid, and properly addressed for next-day delivery, addressed as follows:

 

		1.	If to Seller:

 

KRG St. Cloud 13th, LLC

c/o Kite Realty Group, L.P.

30 S. Meridian Street

Suite 1100

Indianapolis, IN 46204

Attn: Daniel R. Sink, Executive
Vice President and Chief Financial

    Officer

Email:  dsink@kiterealty.com

 

With a copy to:

 

Kite Realty Group, L.P.

30 S. Meridian Street

Suite 1100

Indianapolis, IN 46204

Attn: Scott E. Murray, Executive
Vice President, General Counsel

     and Corporate Secretary

Email:  smurray@kiterealty.com

 

And with a copy to:

 

Ice Miller LLP

One American Square

Suite 2900

Indianapolis, IN 46282-0200

Attn: April Sparks Pyatt, Esq.

Email: April.Pyatt@icemiller.com

 

		2.	If to Purchaser:

 

The Phillips Edison Group
LLC

11501 Northlake Drive

Cincinnati, Ohio 45249

Attn: Mr. Stephen Bien

Fax: (513) 956-5660

E-mail: sbien@phillipsedison.com

 

    	 	30	 

     

    

 

And

 

The Phillips Edison Group
LLC

222 South Main Street,
Suite 1730

Salt Lake City, Utah
84101

Attn: Mr. Hal Scudder

Fax: (801) 521-6952

E-mail: hscudder@phillipsedison.com

 

With a copy to:

 

Honigman Miller Schwartz and Cohn LLP

39400 Woodward Avenue, Suite 101

Bloomfield Hills, Michigan 48304-5151

Attention: J. Adam Rothstein, Esq.

Fax: (248) 566-8479

E-mail: jrothstein@honigman.com

And

Attention: Sarah G. Deson, Esq.

Fax: (248) 566-8613

E-mail:sdeson@honigman.com

 

		3.	If to Title Company:

 

Fidelity National Title Group

5565 Glenridge
Connector, Suite 300

Atlanta,
Georgia 30342

Attention:
Linda Hart

Fax: (404)
968-2182 

Email: linda.hart@fntg.com

 

Notice may be given by and/or to counsel
for the parties. All notices given in accordance with the terms hereof shall be deemed received on the next business day if sent
by overnight courier and on the same day if sent by email before 5:00 P.M. (Eastern Standard Time), or when delivered personally
or otherwise received. Either party may change its address for notice from time to time by delivery of at least three (3) business
days’ prior written notice of such change to the other party hereto in the manner prescribed herein.

 

    	 	31	 

     

    

 

13.6         WAIVER
OF RIGHT TO JURY TRIAL. PURCHASER AND SELLER EACH DO HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THEIR RIGHT TO A TRIAL
BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, OR UNDER OR IN CONNECTION WITH THIS AGREEMENT, THE DOCUMENTS
DELIVERED BY PURCHASER AT CLOSING OR SELLER AT CLOSING, OR ANY COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS (WHETHER ORAL
OR WRITTEN) OR ANY ACTIONS OF EITHER PARTY ARISING OUT OF OR RELATED IN ANY MANNER WITH THIS AGREEMENT OR THE PROPERTY (INCLUDING
WITHOUT LIMITATION, ANY ACTION TO RESCIND OR CANCEL THIS AGREEMENT AND ANY CLAIMS OR DEFENSES ASSERTING THAT THIS AGREEMENT WAS
FRAUDULENTLY INDUCED OR IS OTHERWISE VOID OR VOIDABLE). IN ADDITION, PURCHASER WAIVES ANY RIGHT TO SEEK RESCISSION OF THE TRANSACTION.
THIS WAIVER IS A MATERIAL INDUCEMENT FOR SELLER TO ENTER INTO AND ACCEPT THIS AGREEMENT AND THE DOCUMENTS DELIVERED BY PURCHASER
AT CLOSING AND SHALL SURVIVE THE CLOSING OR ANY TERMINATION OF THIS AGREEMENT.

 

13.7         Except
as may be required by law, rule or regulation or court order, or in connection with the enforcement or defense to enforcement of
this Agreement, or which is a matter of public record, without the prior written consent of Seller, Purchaser shall not disclose
to any third party the existence of this Agreement or any term or condition thereof or the results of any inspections or studies
undertaken in connection herewith. Purchaser agrees to keep confidential and not to use, other than in connection with its determination
whether to proceed with the purchase of the Property in accordance with Section 4 hereof, any of the documents, material
or information regarding the Property supplied to Purchaser by Seller or by any third party at the request of Seller, including,
without limitation any environmental site assessment reports furnished to Purchaser, except Purchaser may share such documents,
material and information with Purchaser’s consultants, agents, potential lenders and potential investors and joint venture
partners on a “need to know” basis, unless Purchaser is compelled to disclose such documents, material or information
by law or by subpoena. The foregoing confidentiality provisions and limitations of disclosure shall not apply with respect to any
information which was lawfully in the possession of Purchaser prior to disclosure by Seller or is generally available to the public
(other than as a result of wrongful Purchaser’s disclosure thereof). Purchaser agrees to indemnify and hold harmless Seller
from and against any and all losses, damages (but not consequential damages), claims and liabilities of any kind (including, without
limitation, reasonable attorneys’ fees) arising out of Purchaser’s breach of this Section 13.7. In the event
that the Closing does not occur in accordance with the terms of this Agreement, Purchaser shall promptly destroy all of the documents,
materials and information regarding the Property supplied to Purchaser by Seller or at the request of Seller, return such documents,
materials and information to Seller. The provisions of this Section 13.7 shall survive termination of this Agreement. Upon
Closing, Purchaser and Seller shall have the right to issue press releases, filings and other publicity concerning the transaction
contemplated hereby, provided that any such press releases, filings or other publicity prior to Closing shall be subject to Seller’s
and Purchaser’s approval, not to be unreasonably withheld, conditioned or delayed.

 

13.8         Intentionally
omitted.

 

13.9         This
Agreement or any notice or memorandum hereof shall not be recorded in any public record. A violation of this prohibition shall
constitute a material breach by Purchaser, entitling Seller to terminate this Agreement.

 

    	 	32	 

     

    

 

13.10       Seller
and Purchaser hereby designate Title Company to act as and perform the duties and obligations of “reporting person”
with respect to the transaction contemplated by this Agreement for purposes of 26 C.F.R Section 1.6045-4(e)(5) relating to the
requirements for information reporting on real estate transactions closed on or after January 1, 1991. In this regard, Seller and
Purchaser each agree to execute at Closing, and to cause the Title Company to execute at Closing, a Form 1099-S Statement, designating
Title Company as the reporting person with respect to the transaction contemplated by this Agreement.

 

13.11       The
captions and headings used in this Agreement are for convenience only and do not in any way limit, amplify, or otherwise modify
the provisions of this Agreement.

 

13.12       If
any provision of this Agreement is held to be illegal, invalid or unenforceable under present or future laws, such provision shall
be fully severable; this Agreement shall be construed and enforced as if such illegal, invalid or unenforceable provision had never
composed a part of this Agreement, and the remaining provisions of this Agreement shall remain in full force and effect and shall
not be affected by such illegal, invalid, or unenforceable provision or by its severance from this Agreement.

 

13.13       Whenever
the words “include,” “includes” or “including” are used in this Agreement, they shall be understood
to be followed by the words “without limitation.”

 

13.14       No
covenant, term or condition of this Agreement, other than as expressly set forth herein, shall be deemed to have been waived by
Seller or Purchaser unless such waiver is in writing and executed by Seller or Purchaser, as the case may be. A waiver by any party
of a performance obligation or default under any provision of this Agreement shall not be deemed (i) a waiver of a further obligation
or default under the same provision or (ii) a waiver of an obligation or default under any other provision.

 

13.15       Nothing
contained in this Agreement shall be construed as authorizing Purchaser to apply for a zoning change, variance, subdivision maps,
lot line adjustment, or other discretionary governmental act, approval or permit with respect to the Property prior to the Closing,
and Purchaser agrees not to do so. Purchaser agrees not to submit any reports, studies or other documents, including plans and
specifications, impact statements for water, sewage, drainage or traffic, environmental reports, or energy conservation checklists
to any governmental agency prior to the Closing. Purchaser’s obligation to purchase the Property shall not be subject to
or conditioned upon Purchaser’s obtaining any variances, zoning amendments, subdivision maps, lot line adjustment or other
discretionary governmental act, approval or permit.

 

13.16       If
an action by any party requires the consent or approval of another party, that consent or approval shall be given, if at all, in
writing, and any consent or approval given in one instance shall not be deemed a consent or approval in any other instance.

 

13.17       Any
list of examples set forth in this Agreement shall be deemed to be illustrative, not exhaustive, unless explicitly specified otherwise.
Whenever the context may require, any pronouns used in this Agreement shall include the corresponding masculine, feminine or neuter
forms, and the singular form of nouns and pronouns shall include the plural, and vice versa. The use of the neuter singular pronoun
to refer to any party shall be a proper reference even though that party may be an individual, a business entity, or a group of
two or more individuals or business entities. All attachments referenced within the Agreement shall be deemed incorporated in the
Agreement by such reference.

 

    	 	33	 

     

    

 

14.           NO
THIRD PARTY BENEFICIARIES.

 

PURCHASER AND SELLER
HEREBY ACKNOWLEDGE AND AGREE THAT, EXCEPT AS EXPRESSLY SET FORTH HEREIN TO THE CONTRARY, THERE ARE NO THIRD PARTY BENEFICIARIES
TO THIS AGREEMENT, AND, ACCORDINGLY, EXCEPT AS EXPRESSLY SET FORTH HEREIN TO THE CONTRARY, NO THIRD PARTY (INCLUDING, WITHOUT LIMITATION,
ANY BROKER AND THE TITLE COMPANY) SHALL HAVE THE RIGHT TO ENFORCE THIS AGREEMENT FOR THE BENEFIT OF SUCH THIRD PARTY OR AGAINST
THE INTERESTS OF PURCHASER OR SELLER. EITHER OF SELLER OR PURCHASER IS HEREBY AUTHORIZED TO FILE A COPY OF THIS SECTION IN ANY
PROCEEDING BROUGHT BY ANY SUCH THIRD PARTY AGAINST SELLER OR PURCHASER IN CONNECTION WITH THIS AGREEMENT AS CONCLUSIVE EVIDENCE
OF THE PARTIES’ INTENTIONS.

 

15.           TIME
OF PERFORMANCE. Time is of the essence in this Agreement. In the event the provisions of this Agreement provide for the performance
of an obligation by Purchaser or Seller on a day other than a business day, then the time for the performance of such obligation
shall be automatically adjourned to the first (1st) business day immediately succeeding the day on which such obligation would
otherwise be required to be performed. In the event the provisions of this Agreement provide that Purchaser or Seller shall have
the right to adjourn the performance of an obligation by Purchaser or Seller, as applicable, to a day that is other than a business
day, then Purchaser or Seller, as applicable, shall have the right to adjourn the time for the performance of such obligation to
the first (1st) business day immediately succeeding the day on which such adjourned obligation would otherwise be required to be
performed. As used herein, the term “business day” means any day other than a Saturday, Sunday, or any day that is
a federal holiday.

 

16.           COUNTERPART
EXECUTION; EXECUTION BY FACSIMILE. This Agreement may be executed in more than one identical counterpart, each of which, when
taken together, shall be deemed to be one (1) instrument. Facsimile signatures or signatures transmitted via email (as a .pdf file
or .tif file) shall be treated as originals for all purposes.

 

17.           LEGAL
REPRESENTATION. Each party hereto has been represented by legal counsel in connection with the negotiation of the transactions
herein contemplated and the drafting and negotiation of this Agreement. Each party hereto and its counsel has had an opportunity
to review and suggest revisions to the language of this Agreement. Accordingly, no provision of this Agreement shall be construed
for or against or interpreted to the benefit or disadvantage of any party by reason of any party having or being deemed to have
structured or drafted such provision, notwithstanding any contrary rule of construction or interpretation at law or in equity.

 

18.           NO
SPECIAL RELATIONSHIP BETWEEN SELLER AND PURCHASER. Purchaser and Seller acknowledge and agree that the relationship between
Purchaser and Seller is solely a commercial relationship, and the execution of this Agreement by Purchaser and Seller shall not
create (and neither Purchaser nor Seller intends to create) any relationship of principal and agent between Purchaser and Seller,
or any partnership or joint venture relationship between Purchaser and Seller. Neither Purchaser nor Seller shall be deemed to
be a fiduciary of the other party.

 

    	 	34	 

     

    

 

19.           ATTORNEYS’
FEES. If any action, suit, arbitration or other proceeding is instituted by any party to this Agreement for the purpose of
interpreting any of the terms hereof or to prevent or remedy a default hereunder by any other party, for otherwise relating to
this Agreement, the prevailing party shall be reimbursed by the non-prevailing party for all of such prevailing party’s reasonable
attorneys’ fees incurred in each and every such action, suit, arbitration or other proceeding, including any and all appeals
or petitions therefrom. As used in this paragraph, (i) “attorneys’ fees” shall be deemed to mean the reasonable,
actual costs of any legal services actually performed in connection with the matters involved, calculated on the basis of the usual
fee charged by the attorney and any paralegals and legal staff performing such service, and (ii) “prevailing party”
includes, but is not limited to, a party who obtains legal counsel or brings any action against the other party by reason of an
alleged breach or default and obtains substantially the relief sought, whether by compromise, settlement or judgment.

 

20.           FURTHER
ASSURANCES. Each party hereto agrees that, from and after the Closing, upon the reasonable request of the other party hereto
and without further consideration, such party will execute and deliver to such other party such documents and further assurances
and will take such other actions (without cost to such party) as such other party may reasonably request in order to carry out
the purpose and intention of this Agreement, including, but not limited, to the effective consummation of the transactions contemplated
under the provisions of this Agreement. The provisions of the Section 20 shall survive the Closing.

 

21.           RADON
GAS. Radon is a naturally occurring radioactive gas that, when it has accumulated in a building in sufficient quantities, may
present health risks to persons who are exposed to it over time. Levels of radon that exceed federal and state guidelines have
been found in buildings in Florida. Additional information regarding radon and radon testing may be obtained from your county health
department.

 

22.           SEC
FILINGS.

 

(a) Seller’s
Filings. Seller has advised Purchaser that Seller may be required to file, in compliance with certain laws and regulations
(including, without limitation, Regulation S-X of the Securities and Exchange Commission), audited financial statements, proforma
financial statements or other financial information related to the Property for the period of time related to its period of ownership
of the Property (the “Financial Information”). Following Closing, Purchaser agrees to use commercially reasonable
efforts to cooperate with Seller and its representatives and agents (at Seller’s sole cost and expense and without any liability
to Purchaser) in the preparation of the Financial Information for Seller’s benefit, including providing Seller with copies
of or reasonable access to any books and records related to the Property that Seller may reasonably request after Closing, to the
extent the same are in the possession or control of Purchaser. Furthermore, Purchaser agrees to provide any reasonably required
representations to the auditors with respect to such Financial Information for Seller’s benefit. Notwithstanding the foregoing,
Purchaser shall not be required to incur any costs and expenses in connection with the preparation of such Financial Information
for Seller’s benefit or its cooperation with Seller hereunder. This Section 22 shall survive Closing.

 

    	 	35	 

     

    

 

(b) Purchaser’s
Filings. Purchaser has advised Seller that Purchaser may be required to file, in compliance with certain laws and regulations
(including, without limitation, Regulation S-X of the Securities and Exchange Commission), audited financial statements, pro forma
financial statements and other financial information related to the Property for up to 18 months prior to Closing and any interim
period during the fiscal year in which the Closing occurs (the “Financial Information”). Following the Closing, Seller
agrees to use its commercially reasonable efforts to cooperate with Purchaser and its representatives and agents (at Purchaser’s
sole cost and expense and without any liability to Seller) in the preparation of the Financial Information; provided, however,
Seller shall not be required to incur any out of pocket expenses or costs unless Purchaser reimburses Seller for the same. Seller
shall maintain and allow access to, during normal business hours, such books and records of Seller and Seller’s manager of
the Property reasonably related to the Property that Seller does not deem proprietary or confidential. Further, so long as the
persons in charge of management of the Property at the time of Closing remains in the employ of Seller or an affiliate of Seller,
Seller will make such persons available for interview.  Notwithstanding the foregoing, Seller shall not be required to provide
any information concerning (a) Seller’s capital structure or debt, (b) Seller’s financial analyses or projections,
investment analyses, account summaries or other documents prepared solely for Seller’s internal purposes and not directly
related to the operation of the Property, (c) Seller’s tax returns or (d) financial statements of Seller or any affiliate
of Seller (other than Property-level financial statements).  Purchaser may not use the results of its review under this
Section to pursue any claim against Seller under the terms of this Agreement. This Section shall survive Closing.

 

23.           LIKE-KIND
EXCHANGE. Seller and Purchaser acknowledge and agree that the purchase and sale of the Property may be part of a tax-free exchange
under Section 1031 of the Internal Revenue Code for either Seller or Purchaser. Each party hereby agrees to take all reasonable
steps necessary before, on or after the Closing Date, to facilitate such exchange if requested by the other party at the sole cost
of the exchanging party; provided, that the party making such accommodation shall not be required to acquire any substitute property
or incur any cost, expense or other obligation in connection with such exchange, and provided, further, that the Closing shall
not be delayed, impaired or complicated thereby. The cooperating party shall not be required to take title to or convey any real
or personal property other than the Property, and the cooperating party shall only be required to execute the standard facilitator
documents customarily utilized by qualified intermediaries (e.g. assignment of purchase agreement forms) and such other agreements
which may be reasonably requested by the other party.

 

24.           NO
ASSUMPTION OF LIABILITIES. The parties acknowledge that the purchase and sale of the Property involves only the purchase and
sale of the Property and that Seller is not selling a business nor do the parties intend that Purchaser be deemed a successor of
Seller with respect to any liabilities of Seller to any third parties other than the tenants under the Leases. Accordingly, Purchaser
shall neither assume nor be liable for the Seller Debts or any of the debts, liabilities, taxes or obligations of, or claims against
any other person or entity, of any kind or nature, whether existing now, upon Closing or at any time thereafter, which shall be
solely those of Seller, and Seller hereby agrees to indemnify, defend and hold harmless Purchaser against any loss, cost, liability,
damage or expense with respect thereto. This Section 24 shall survive Closing for the Survival Period. Seller’s Debts
is defined as “the following debts, liabilities, taxes, obligations and claims: (i) all payments and benefits owed to past
and/or present employees of Seller in connection with the business being conducted on or from the Real Property as may have accrued
through Closing, including, but not limited to, salaries, wages, commissions, bonuses, vacation pay, health and welfare contributions,
pensions, profit sharing, severance or termination pay, or any other form of compensation or fringe benefit; (ii) all claims related
to third-party lawsuits filed or threatened against Seller in connection with personal injury or property damage caused by Seller
and occurring or alleged to have occurred prior to Closing; (iii) fines or penalties levied or assessed against Seller by a governmental
authority for violations of laws committed by Seller at the Property with respect to the period prior to Closing, but specifically
excluding any fines or penalties that are levied or assessed for violations of laws committed by a tenant or other third party
(or for any violations of laws, the curing of which is a responsibility of a tenant under its Lease); and (iv) liabilities and
obligations of Seller under the Service Contracts.”

 

    	 	36	 

     

    

 

25.           FURTHER
COVENANT. Seller shall advise Purchaser of any knowledge Seller has or comes into with respect to (i) a Material Adverse Change
prior to Closing, or (ii) one or more tenants ceasing operations from the Property.

 

26.           The
following exhibits and schedule are attached to this Agreement and are incorporated into this Agreement by this reference and made
a part hereof for all purposes:

 

		(a)	Exhibit A, Legal Description of Property

		(b)	Exhibit B, Intentionally omitted

		(c)	Exhibit C, List of Service Contracts

		(d)	Exhibit D, Intentionally omitted

		(e)	Exhibit E, Special Warranty Deed

		(f)	Exhibit F, Bill of Sale

		(g)	Exhibit G, Tenant Notice Letter

		(h)	Exhibit H, Assignment and Assumption of Leases and Security
Deposits

		(i)	Exhibit I-1, Rent Roll

Exhibit I-2, Exceptions to Lease
Representations and Warranties

		(j)	Exhibit J-1, Form of Estoppel Certificate

Exhibit J-2, Form of REA Estoppel

		(k)	Exhibit K, Form of General Assignment

		(l)	Exhibit L, List of Pending Litigation

		(m)	Exhibit M, Form of Non Foreign Person Certificate

		(n)	Exhibit N, Form of Disclosure Notice

		(o)	Exhibit O, Form of Bring Down Certificate

		(p)	Exhibit 4.3.8, FFY LOI

 

[Signature page follows]

 

    	 	37	 

     

    

 

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

 

	 	SELLER:
	 	 
	 	KRG ST. CLOUD 13TH, LLC,
	 	a Delaware limited liability company
	 	 	 
	 	By:	/s/ Daniel R. Sink
	 	 	Daniel R. Sink, Executive Vice President 
	 	 	and Chief Financial Officer

 

    	 	S-1	 

     

    

 

Kite Realty Group,
L.P., a Delaware limited partnership (“Member”), hereby joins in the execution of this Agreement to evidence
Member’s guaranty of Seller’s obligations under Section 9.7 above. Member hereby waives all requirements of
notice of the acceptance of this guaranty and all requirements of notice of breach or nonperformance by Seller. A separate action
or actions may, at Purchaser’s option, be brought and prosecuted against Member, whether or not any action is first or subsequently
brought against Seller, or whether or not Seller is joined in any such action, and Member may be joined in any action or proceeding
commenced by Purchaser against Seller arising out of, in connection with or based upon the provisions of Section 9.7 above.
Member waives any right to require Purchaser to proceed against Seller or pursue any other remedy in Purchaser’s power whatsoever.
This guaranty shall remain in full force and effect notwithstanding the institution by or against Seller of bankruptcy, reorganization,
readjustment, receivership or insolvency proceedings of any nature, or the disaffirmance of this Agreement in any such proceedings
or otherwise. This guaranty shall be applicable to and binding upon the heirs, executors, administrators, representatives, successors
and assigns of Purchaser, Seller and Member. Purchaser may, without notice, assign this guaranty in whole or in part. In the event
that Purchaser should institute any suit against Member for violation of or to enforce any of the covenants or conditions of this
guaranty or to enforce any right of Purchaser hereunder, or should Member institute any suit against Purchaser arising out of or
in connection with this guaranty, or should either party institute a suit against the other for a declaration of rights hereunder,
or should either party intervene in any suit in which the other is a party to enforce or protect its interest or rights hereunder,
the prevailing party in any such suit shall be entitled to the fees of its attorney(s) in the reasonable amount thereof, to be
determined by the court and taxed as a part of the costs therein. This guaranty shall survive Closing; notwithstanding the foregoing,
this guaranty shall terminate and be of no further force and effect upon the expiration of the Survival Period (as defined in the
Agreement).

 

[The rest of this page has been intentionally
left blank.]

 

    	 	S-2	 

     

    

 

	Dated: November 22, 2016	KITE REALTY GROUP, L.P., a Delaware 
	 	limited partnership
	 	 	 
	 	By:	/s/ Daniel R. Sink
	 	 	Daniel R. Sink, Executive Vice 
	 	 	President and Chief Financial Officer

 

    	 	S-3	 

     

    

 

	 	PURCHASER:
	 	 
	 	THE PHILLIPS EDISON GROUP LLC,
	 	an Ohio limited liability company
	 	 	 	 	 
	 	By:	Phillips Edison Limited Partnership,
	 	 	a Delaware limited partnership,
	 	 	Managing Member
	 	 	 	 	 
	 	 	By:	Phillips Edison & Company, Inc.,
	 	 	 	a Maryland corporation,
	 	 	 	General Partner
	 	 	 	 	 
	 	 	 	By:	/s/ Robert F. Myers
	 	 	 	Name: 	Robert F. Myers
	 	 	 	Title:	Chief Operating Officer and Secretary

 

    	 	S-4	 

     

    

 

EARNEST MONEY ACKNOWLEDGMENT

 

The undersigned hereby
acknowledges receipt of the portion or portions of the Earnest Money referred to below (to the extent the Earnest Money is to be
paid in more than one portion, this page shall be completed where indicated below as to each portion received, executed by the
undersigned and dated as of such receipt and then delivered to Seller and Purchaser to evidence its receipt of such portions of
the Earnest Money). The undersigned agrees to hold the same, as escrow agent, pursuant to terms of the Agreement to which this
Acknowledgment is attached and pursuant to applicable law. The liability of the undersigned is limited by the terms and conditions
expressly set forth herein and by the laws of the state in which the Real Property is located and in no event shall the liability
of the undersigned exceed the amount of the portion or portions of Earnest Money then being held. The undersigned shall have no
liability whatsoever on account of or occasioned by any failure or negligence on the part of any bank, savings and loan or other
savings institution wherein the Earnest Money is deposited, provided, however, that such institution is, at the time of deposit
of the Earnest Money, federally insured. In the event of litigation affecting the duties of the undersigned as escrow agent relating
to this Agreement and the Earnest Money, Seller and Purchaser, jointly, and not jointly and severally, shall reimburse the undersigned
for all expenses incurred by the undersigned, including reasonable attorneys’ fees, unless such litigation results from or
is caused by the gross negligence or misfeasance of the undersigned. In the event of any dispute between Seller and Purchaser pertaining
to the Earnest Money, the undersigned may commence an interpleader action and deposit the portion of the Earnest Money then being
held by it with a court of competent jurisdiction and in such event, the undersigned shall be relieved of all further obligation
and liability hereunder.

 

	 	FIDELITY NATIONAL TITLE COMPANY
	 	 	 
	Initial Earnest Money received on:	 	 
	November 23, 2016   	By:	/s/ Linda Hart
	 	 	Linda Hart, Escrow Officer
	 	 	 
	 	Address:	     
	Additional Earnest Money received on:	 	 
	___________________	Fidelity National Title Group
	 	National Commercial Services - Atlanta
	 	5565 Glenridge Connector, Suite 300
	 	Atlanta, Georgia 30342
	 	(770) 325-2714 Direct Dial
	 	(770) 265-4678 Cell
	 	E-mail:  Linda.hart@fntg.com

 

    	 	S-5	 

     

    

 

EXHIBIT A

 

LEGAL DESCRIPTION

 

Lot 2, of DYLAN PLAZA, according to the
plat thereof recorded in Plat Book 14, Page 107, Public Records of Osceola County, Florida.

 

Also being described as follows:

 

A parcel of land lying in Section 4, Township
26 South, Range 30 East, Osceola County, Florida, being a portion of Lots 264, 263, 281, 282, 295, 296, 313, 314, 327, 328, 345,
346, 359, 360, 377 and a portion of a 30 foot wide platted right of way, SEMINOLE LAND AND INVESTMENT COMPANY’S LAKE FRONT
ADDITION TO TOWN OF ST. CLOUD, according to the plat thereof as recorded in Plat Book B, Pages 61 and 62, of the Public Records
of Osceola County, Florida and being more particularly described as follows:

 

Commence at the Northwest corner of the
Southeast 1⁄4 of said Section 4; thence run South 00°03’06” West, along the West line of the Southeast 1⁄4
of said Section 4, a distance of 317.33 feet to the Point of Beginning; thence run South 89°56’54” East, a distance
of 79.14 feet; thence run North 37°21’13” East, a distance of 356.59 feet; thence run North 52°38’47”
West, a distance of 15.00 feet; thence run North 37°21’13” East, a distance of 15.00 feet to a point on the Southerly
right of way line of U.S. Highway No. 192/441; thence run South 52°38’47” East, along said Southerly right of way
line, a distance of 56.00 feet; thence run South 37°21’13” West, a distance of 257.92 feet; thence run South 52°34’28”
East, a distance of 302.10 feet; thence run North 37°20’44” East, a distance of 258.30 feet to a point on aforesaid
Southerly right of way line of U.S. Highway No. 192/441; thence run South 52°38’47” East, along said Southerly
right of way line, a distance of 180.76 feet to the Northwesterly corner of Lil’ Champ Food Store property; thence run South
37°26’06” West, along the Westerly boundary of said Lil’ Champ Food Store property, a distance of 299.78
feet to the Southwest corner of said Lil’ Champ property; thence run South 52°38’47” East, along the Southerly
line of said Lil’ Champ Food Store property, a distance of 150.13 feet to a point on the Westerly right of way line of Kissimmee
Park Road as recorded in Official Records Book 822, Page 192, of the Public Records of Osceola County, Florida; thence run South
37°24’48” West, along said Westerly right of way line, a distance of 670.12 feet to a point on the Northerly line
of a 80 foot wide Department of Transportation Drainage Easement; thence run North 33°05’25” West, along said Northerly
line, a distance of 338.49 feet; thence run South 68°00’12” West, a distance of 71.97 feet to a point on the West
line of the Southeast 1⁄4 of said Section 4; thence run North 00°03’06” East, along said West line, a distance
of 627.27 feet to the Point of Beginning.

 

    Exhibit A – Page 1

     

    

 

EXHIBIT B

 

INTENTIONALLY OMITTED

 

    Exhibit B – Page 1

     

    

 

EXHIBIT C

 

LIST OF SERVICE CONTRACTS

 

		1.	Specialty
                                         License Agreement, dated December 8, 2015, by and between KRG St. Cloud 13th , LLC, and
                                         certain affiliated entities, and ValleyCrest Lanscape Maintenance, Inc.

		2.	Shopping
                                         Center Service Agreement, dated November 25, 2015, by and between KRG Management, LLC,
                                         and Deep Green Waste & Recycling, LLC.

		3.	Specialty
                                         License Agreement, dated September 1, 2015, by and between KRG Management, LLC, and Divisions
                                         Maintenance Group, Inc., as amended by that certain Amendment to Specialty License Agreement,
                                         dated February 19, 2016.

		4.	Master
                                         Shopping Center Service Agreement, dated September 1, 2015, by and between KRG Management,
                                         LLC, and Divisions, Inc.

		5.	Master
                                         Shopping Center Service Agreement, dated September 1, 2015, by and between KRG Management,
                                         LLC, and ValleyCrest Landscape Maintenance, Inc.

 

    Exhibit C – Page 1

     

    

 

EXHIBIT D

 

INTENTIONALLY OMITTED

 

    Exhibit D – Page 1

     

    

 

EXHIBIT E

 

FORM OF SPECIAL WARRANTY DEED

 

[TO BE CONFORMED TO STATUTORY REQUIREMENTS]

 

	
         

         

        Prepared by/return to:

        Grantee

        c/o Phillips Edison & Company

        11501 Northlake Drive

        Cincinnati, Ohio 45249

        Attn: Legal Services Department

         

        Property Appraiser’s Parcel I.D. (Folio) Number (s):

         

        Tax Identification No.

         

         
	
         

         

         

         

         

         

         

         

         

         

         

         

        This space for recorder’s use only

 

SPECIAL WARRANTY DEED

 

THIS SPECIAL WARRANTY
DEED, is made as of this _____ day of _________, 2016, between KRG ST. CLOUD 13TH, LLC, a Delaware limited liability
company, having an address of c/o Kite Realty Group, 30 South Meridian Street, Suite 1100, Indianapolis, Indiana 46204, hereinafter
called the Grantor, and _______________ Station LLC, a Delaware limited liability company, whose mailing address is c/o Phillips
Edison & Company, 11501 Northlake Drive, Cincinnati, Ohio 45249 hereinafter called the Grantee.

 

(Whenever used herein the terms
“GRANTOR” and “GRANTEE” shall include singular and plural, heirs, legal representatives, and assigns of
individuals, and the successors and assigns of corporations, wherever the context so admits or requires.)

 

WITNESSETH :

 

THAT said Grantor,
for and in consideration of the sum of TEN DOLLARS ($10.00), and other good and valuable consideration to said Grantor in hand
paid by said Grantee, the receipt whereof is hereby acknowledged, has granted, bargained and sold, subject to matters herein stated,
to the said Grantee and Grantee’s heirs and assigns forever, the following described land (the “Property”),
situate, lying and being in Osceola County, Florida:

 

SEE LEGAL DESCRIPTION ATTACHED HERETO AS Exhibit
A AND MADE A PART HEREOF FOR ALL PURPOSES.

 

TOGETHER with all improvements
thereon and all rights, interests, tenements, hereditaments and appurtenances thereto belonging or in anywise appertaining.

 

    Exhibit E – Page 1

     

    

 

AND said Grantor does
hereby specifically warrant the fee simple title to said land, subject to the Permitted Exceptions (as defined below), that Grantor
has good right and lawful authority to sell and convey the Property and will defend the same, subject to the Permitted Exceptions,
against the lawful claims of all persons claiming by, through or under Grantor, but not otherwise. Title to the property hereinabove
described is subject to the following exceptions (collectively, the “Permitted Exceptions”): (1) all real estate
taxes and assessments due and payable after the date hereof, (2) all encumbrances, rights-of-way, easements, covenants, conditions,
restrictions and other matters of record, (3) zoning and other governmental restrictions and regulations, (4) all written
unrecorded leases and the rights of tenants as tenants only thereunder, and (5) all matters that would be disclosed by a diligent
inspection and/or an accurate survey of the Property.

 

(Signature Page Follows.)

 

    Exhibit E – Page 2

     

    

 

IN WITNESS WHEREOF, said Grantor has hereunto
set Grantor’s hand and seal as of the day and year first above written.

 

	 	KRG ST. CLOUD 13TH, LLC, a Delaware limited liability company
	 	 
	 	[Exhibit Only- No Signature Required.]

 

	WITNESSES:	 
	 	 
	 	 
	 	 
	 	 
	Printed Name	 
	 	 
	 	 
	 	 
	 	 
	Printed Name	 
	 	 
	STATE OF INDIANA	)
	 	) SS:
	COUNTY OF MARION	)

 

The foregoing instrument
was acknowledged before me the _____ day of ____________, 2016, by ______________________, the _________________________________
of KRG St. Cloud 13th, LLC, a Delaware limited liability company, on behalf of said entity.

 

	 	 
	 	Notary Public

	 	Resident of	 	County

	 	Commission expires:	 

 

    Exhibit E – Page 3

     

    

 

EXHIBIT A TO DEED

 

    Exhibit E – Page 4

     

    

 

EXHIBIT F

 

BILL OF SALE

 

PUBLIX AT ST. CLOUD, ST. CLOUD, FLORIDA

 

For good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, KRG ST. CLOUD 13TH, LLC, a Delaware limited
liability company (“Seller”), does hereby sell, transfer and assign to ________________________, a ____________
limited liability company (“Purchaser”), without representation, warranty or recourse, the Personal Property
(as such term is defined in that certain Real Estate Purchase and Sale Agreement, dated ____________, 2016, by and between Seller
and Purchaser (the “Purchase Agreement”).

 

TO HAVE AND TO HOLD,
the Personal Property unto Purchaser, its successors and assigns.

 

The Personal Property
transferred pursuant to this Bill of Sale is conveyed AS-IS WHERE-IS WITHOUT ANY REPRESENTATION OF ANY KIND OR NATURE WHATSOEVER,
INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR NON-INFRINGEMENT.

 

This Bill of Sale is
delivered pursuant to the Purchase Agreement and is subject to all of the terms and conditions thereof, including without limitation
Section 10 thereof.

 

[SIGNATURE PAGE FOLLOWS]

 

    Exhibit F – Page 1

     

    

 

IN WITNESS WHEREOF,
Seller has executed this Bill of Sale as of the ______ day of _____________, 2016.

 

	 	SELLER:
	 	 
	 	KRG ST. CLOUD 13TH, LLC, 
	 	a Delaware limited liability company
	 	 	 
	 	By:	 
	 	 	 
	 	Name:	 
	 	 	 
	 	Title:  	 

 

    Exhibit F – Page 2

     

    

 

EXHIBIT G

 

TENANT NOTICE LETTER

 

NOTICE TO TENANTS

OF ________________ SHOPPING CENTER

[INSERT CITY, STATE]

 

_____________________________, 2016

 

	 	 
	[INSERT DBA] 	     	 
	 	 
	 	 
			

ATTN:

 

		RE:	Transfer of Ownership of ____________ Shopping Center

	[INSERT ADDRESS/CITY/STATE/ZIP]

 

Dear _______________:

 

Please be advised that
today, [INSERT SELLER ENTITY NAME] conveyed [INSERT NAME OF CENTER] Shopping Center and assigned your lease to ____________ Station
LLC. Your security deposit, if any, transferred to the new owner.

 

All amounts due prior
to the conveyance remain payable to [INSERT SELLER ENTITY NAME]. Beginning with your next payment, your rent should be sent to
the address provided in the enclosed Welcome Packet. Unless otherwise provided for in your lease agreement, your rental payment
is due and payable on the first of each month. The name of the Property Manager and Accounts Receivable contact can also be found
in the enclosed Welcome Packet.

 

	 	Sincerely,
	 	 
	 	[INSERT SELLER ENTITY NAME]
	 	 	 
	 	By:	 
	 	Name:	 
	 	Its:	 

 

    Exhibit G – Page 1

     

    

 

EXHIBIT H

 

ASSIGNMENT AND ASSUMPTION

OF LEASES AND SECURITY DEPOSITS

 

THIS ASSIGNMENT AND
ASSUMPTION OF LEASES AND SECURITY DEPOSITS (“Assignment”) is entered into as of the ___ day of ______, 2016,
by and between KRG ST. CLOUD 13TH, LLC, a Delaware limited liability company (“Assignor”), and _____________________,
a ________________ (“Assignee”). Reference is hereby made to that certain Real Estate Purchase and Sale Agreement,
dated ___, 2016, between Assignor and Assignee (the “Agreement”). Capitalized terms used herein but not defined
herein shall have the meanings ascribed to them in the Agreement.

 

1.             Property.
The “Property” means the real property located in St. Cloud, Florida, together with the buildings, structures
and other improvements located thereon as more fully described in the Agreement.

 

2.             Leases.
The “Leases” means those leases, tenancies, rental agreements and occupancy agreements affecting the Property
for the tenants identified in Exhibit A attached hereto.

 

3.             Security
Deposits. “Security Deposits” means those certain refundable security deposits held by or for Assignor on
account of tenants under the Leases as such deposits and with respect to which Assignee received a credit at the closing of the
transaction with respect to which this Assignment has been executed and delivered.

 

4.             Assignment.
For good and valuable consideration received by Assignor, the receipt and sufficiency of which are hereby acknowledged, Assignor
hereby grants, transfers and assigns and delivers to Assignee the entire right, title and interest of Assignor in and to the Leases
and the Security Deposits, but reserving unto Assignor all uncollected rent attributable to the period prior to the date hereof
pursuant to Section 5.11 of the Agreement. Subject to the limitations set forth in Section 9.7 of the Agreement and
Section 10 of the Agreement, Assignor does hereby indemnify, defend and hold Assignee free and harmless from and against
any and all costs, expenses, claims, losses or damages, liabilities and judgments which Assignee may suffer in respect of any claim
by a tenant under any Lease that Assignor failed to observe or perform any of its obligations under such Lease arising or accruing
prior to the date hereof, provided that Assignor’s obligations under this sentence shall apply only to claims for which Assignee
has given Assignor notice within the Survival Period (as such term is defined in the Agreement).

 

5.             Assumption.
Assignee hereby assumes the covenants, agreements and obligations of Assignor as landlord or lessor under the Leases which are
to be performed or arise from and after the date hereof, and Assignee further assumes all liability of Assignor for the proper
refund or return of the Security Deposits which are obligated to be refunded or returned from and after the date hereof if, when
and as required by the Leases. Assignee does hereby indemnify, defend and hold Assignor free and harmless from and against any
and all costs, expenses, claims, losses or damages, liabilities and judgments which Assignor may suffer in respect of any claim
by a tenant under any Lease that Assignee failed to observe or perform any of its obligations under such Lease arising or accruing
on or after the date hereof.

 

    Exhibit H – Page 1

     

    

 

6.             Attorneys’
Fees. If any action, suit, arbitration or other proceeding is instituted by any party to this Assignment for the purpose of
interpreting any of the terms hereof or to prevent or remedy a default hereunder by any other party, the prevailing party shall
be reimbursed by the non-prevailing party for all of such prevailing party’s reasonable attorneys’ fees incurred in
each and every such action, suit, arbitration or other proceeding, including any and all appeals or petitions therefrom. As used
in this paragraph, (i) attorneys’ fees shall be deemed to mean the reasonable, actual costs of any legal services actually
performed in connection with the matters involved, calculated on the basis of the usual fee charged by the attorney and any paralegals
and legal staff performing such service, and (ii) prevailing party” includes, but is not limited to, a party who obtains
legal counsel or brings any action against the other party by reason of an alleged breach or default and obtains substantially
the relief sought, whether by compromise, settlement or judgment.

 

7.             Successors
and Assigns. This Assignment shall be binding upon and inure to the benefit of Assignor and Assignee and their respective successors
and assigns.

 

8.             Counterparts.
This Assignment may be signed in any number of counterparts each of which shall be deemed to be an original and all of which taken
together shall constitute one and the same instrument.

 

[Signature Page Follows]

 

    Exhibit H – Page 2

     

    

 

IN WITNESS WHEREOF,
Assignor and Assignee have executed and delivered this Assignment the day and year first above written.

 

	 	ASSIGNOR:
	 	 
	 	KRG ST. CLOUD 13TH, LLC, 
	 	a Delaware limited liability company
	 	 	 
	 	By:	    
	 	 	 
	 	Name:	 
	 	 	 	 
	 	Title:	 
	 	 	 
	 	ASSIGNEE:
	 	 	 	 
	 	 	 	,
	 	an _____________ limited liability company
	 	 	 	 
	 	By:	 
	 	 	 	 
	 	Name:	            
	 	 	 	 
	 	Title:	 

 

    Exhibit H – Page 3

     

    

 

EXHIBIT A TO ASSIGNMENT AND ASSUMPTION

OF LEASES AND SECURITY DEPOSITS

 

    Exhibit H – Page 4

     

    

 

EXHIBIT I-1

 

RENT ROLL

 

[See attached pages.]

 

    Exhibit I – 1

     

    

 

EXHIBIT I-2

 

exceptions
to lease representations and warranties

 

Lease commission of $4,476.00
owed to Landquest Commercial pursuant to FFY Lease.

 

    Exhibit I – 2

     

    

 

EXHIBIT J-1

 

FORM
OF ESTOPPEL CERTIFICATE

 

		TO:	The Phillips Edison Group, its successors and assigns (“Purchaser”)

KRG St. Cloud 13th, LLC, a Delaware limited
liability company (“Landlord”)

 

________________________________________
(“Tenant”) hereby warrants and represents to and agrees with Purchaser and Landlord as follows, with the understanding
that Purchaser and Landlord are relying on such warranties, representations and agreements as an inducement to purchase and sell
the property which is described in the lease:

 

1.             Tenant
is the lessee under that certain lease (the “Lease”) pertaining to the Project which is dated _____________.

 

2.             The
name of the current Landlord (Seller) is: ____________.

 

3.             The
Lease is for the following portion of the Project ____________________________ (the “Demised Premises”) (if the entire
Project, so state):

 

4.             The
Lease has not been modified or amended except by the following documents (if none, so state): _________

 

5.             The
initial term of the Lease commenced on _________, 2____ and shall expire on ______, 2_____, unless sooner terminated in accordance
with the terms of the Lease. Tenant has no option to renew or extend the term of the Lease, except as follows (if none, so state):
______________

 

6.             The
Lease, as it may have been modified or amended, contains the entire agreement of Landlord and Tenant with respect to the Demised
Premises, and is in full force and effect.

 

7.             As
of the date hereof, Tenant is occupying the Demised Premises and is paying rent on a current basis under the Lease.

 

(a)           The
minimum monthly or base rent currently being paid by Tenant for the Demised Premises pursuant to the terms of the Lease is $______
per month and has been paid through ________________, 201___.

 

(b)           Percentage
rent (“Percentage Rent”), if any, due under the Lease has been paid through _____________, 201__ and the amount of
Percentage Rent for the last period paid was $________.

 

(c)           Common
area maintenance, taxes, insurance and other charges (the “Reimbursables”), if any, due under the Lease have been paid
through __________, 201__.

 

8.             Tenant
has accepted possession of the Demised Premises, and all items of an executory nature relating thereto to be performed by Landlord
have been completed, including, but not limited to, completion of construction thereof (and all other improvements required under
the Lease) in accordance with the terms of the Lease and within the time periods set forth in the Lease. Landlord has paid in full
any required contribution towards work to be performed by Tenant under the Lease, except as follows (if none, so state): __________________________.

 

    Exhibit J – 1 – Page 1

     

    

 

9.             No
default or event that with the passage of time or notice would constitute a default (hereinafter collectively a “Default”)
on the part of Tenant exists under the Lease in the performance of the terms, covenants and conditions of the Lease required to
be performed on the part of Tenant.

 

10.           To
the best of Tenant’s knowledge, no Default on the part of Landlord exists under the Lease in the performance of the terms,
covenants and conditions of the Lease required to be performed on the part of Landlord. Tenant has no defense as to its obligations
under the Lease and asserts no setoff, claim or counterclaim against Landlord

 

11.           Tenant
has no option or right to purchase all or any part of the Project.

 

12.           Tenant
has not assigned, sublet, transferred, hypothecated or otherwise disposed of its interest in the Lease and/or the Premises, or
any part thereof.

 

13.           Neither
the Lease nor any obligations of Tenant thereunder have been guaranteed by any person or entity, except as follows (if none, so
state): ______________________.

 

14.           No
rentals are accrued and unpaid under the Lease, except for Percentage Rent, if any, or Reimbursables, if any, which are not yet
due and payable.

 

15.           No
prepayments of rentals due under the Lease have been made for more than one month in advance. No security or similar deposit has
been made under the Lease, except for the sum of $_____ which has been deposited by Tenant with Landlord pursuant to the terms
of the Lease.

 

16.           Tenant
understands and acknowledges that Purchaser is about to purchase the Project and is relying upon the representations and warranties
contained herein in making such purchase.

 

17.           Tenant’s
street address (not a P.O. Box) for notice purposes is: ______________________________________.

 

18.           The
undersigned is authorized to execute this Tenant Estoppel Certificate on behalf of Tenant.

 

19.          This
Tenant Estoppel Certificate may be executed in any number of separate counterparts, each of which shall be deemed an original,
but all of which, collectively and separately, shall constitute one and the same instrument.

 

20.           Landlord
and Purchaser shall have the right to rely on this Estoppel Certificate

 

    Exhibit J – 1 – Page 2

     

    

 

EXECUTED this __________
day of _______________, __________.

 

	 	TENANT:	 
	 	 	 
	 	 	 
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    Exhibit J – 1 – Page 3

     

    

 

SIGNATURE PAGE OF GUARANTOR TO ACKNOWLEDGEMENT
OF TENANT ESTOPPEL CERTIFICATE

 

Acknowledgment of Guarantor

 

The undersigned guarantor
of the Tenant’s obligations under the Lease pursuant to that certain Guaranty dated _______________, ____ (“Guaranty”),
hereby certifies to ____________ that it has no defenses, claims or offsets to enforcement of the Guaranty against the undersigned.

 

EXECUTED this _____
day of _________________, 201_.

 

	 	GUARANTOR:
	 	 	 
	 	By:	 
	 	Name:	 
	 	Its:	 

 

    Exhibit J – 1 – Page 4

     

    

 

EXHIBIT J-2

 

FORM OF REA ESTOPPEL

 

_________________________, 201__

 

The Phillips Edison Group LLC,

and its successors and assigns

11501 Northlake Drive

Cincinnati, Ohio 45249

 

		Re:	[Declaration of Easements, Covenants and Conditions/Reciprocal Easement Agreement] dated _____________,
20__, recorded in Book __, Page ______, as amended (collectively, the “Declaration”)

	Shopping Center,

 

Ladies and Gentlemen:

 

At the request of _____________
(the “Owner”), the undersigned hereby certifies to you and your successors and assigns as prospective new owner (“New
Owner”) with regard to the captioned shopping center (the “Property”), and agrees as follows, recognizing that
New Owner will rely on the information contained herein:

 

1.             The
Declaration is in full force and effect and has not been amended, modified, supplemented or superseded; no other agreement exists
between the undersigned and the Owner with respect to the subject matter of the Declaration.

 

2.             Neither
the undersigned nor the Owner is in default under the Declaration and no event has occurred which, with the passage of time or
the giving of notice or both, would constitute a default by the Owner or the undersigned under the Declaration. There is no defense,
offset, claim or counterclaim by or in favor of the undersigned against the Owner under the Declaration or against the obligations
of the undersigned under the Declaration.

 

3.             The
Owner and the undersigned have performed all of their respective obligations under the Declaration through the date hereof. The
undersigned has no options to purchase, rights of first refusal, or similar rights to acquire all or any part of the Property under
the Declaration. Without limiting the generality of the foregoing, all improvements currently made to or erected upon the Property
fully comply with the provisions of the Declaration.

 

    Exhibit J – 2 – Page 1

     

    

 

4.             [The
Owner is obligated to make payments to the undersigned on account of ___________________________________.] [The undersigned is
obligated to make payments to Owner on account of ___________________________________.] Currently, the amount of such payments
are $__________ per [month] [quarter] [annum]. All such payments have been made through __________.

 

The undersigned acknowledges
that New Owner shall be relying on this letter in connection with a potential acquisition of the Property. This letter shall be
binding upon the undersigned and its successors and assigns.

 

Sincerely,

 

	 	,
	a ____________________________	 
	 	 
	By:	 	 
	Name: 	                                                      	 
	Title:	 	 

 

    Exhibit J – 2 – Page 2

     

    

 

EXHIBIT
K

 

GENERAL
ASSIGNMENT

 

THIS GENERAL ASSIGNMENT
(“Assignment”) is entered into as of the ___ day of ______, 2016, KRG ST. CLOUD 13TH, LLC, a Delaware limited
liability company (“Assignor”), in favor of ___________________, a ____________ limited liability company (“Assignee”).
Reference is hereby made to that certain Real Estate Purchase and Sale Agreement, dated ___, 2016, between Assignor and Assignee
(the “Agreement”). Capitalized terms used herein but not defined herein shall have the meaning ascribed to them
in the Agreement.

 

1.             Property.
The “Property” means the real property located in St. Cloud, Florida together with the buildings, structures
and other improvements located thereon as more fully described in the Agreement.

 

2.             Intangible
Property. The “Intangible Property” shall have the same definition ascribed to it in the Agreement.

 

3.             Assignment.
For good and valuable consideration received by Assignor, the receipt and sufficiency of which are hereby acknowledged, Assignor
hereby grants, transfers and assigns to Assignee the entire right, title and interest of Assignor in and to the Intangible Property,
including, without limitation, the Roof Warranty dated _________, issued by _____________ and in and to all trade names used in
connection with the Property.

 

4.             Attorneys’
Fees. If any action, suit, arbitration or other proceeding is instituted by any party to this Assignment for the purpose of
interpreting any of the terms hereof or to prevent or remedy a default hereunder by any other party, the prevailing party shall
be reimbursed by the non-prevailing party for all of such prevailing party’s reasonable attorneys’ fees incurred in
each and every such action, suit, arbitration or other proceeding, including any and all appeals or petitions therefrom. As used
in this paragraph, attorneys’ fees shall be deemed to mean the reasonable, actual costs of any legal services actually performed
in connection with the matters involved, calculated on the basis of the usual fee charged by the attorney and any paralegals and
legal staff performing such service.

 

5.             Successors
and Assigns. This Assignment shall be binding upon and inure to the benefit of Assignor and Assignee and their respective successors
and assigns.

 

6.             Counterparts.
This Assignment may be signed in any number of counterparts each of which shall be deemed to be an original and all of which taken
together shall constitute one and the same instrument.

 

[Signature Page Follows]

 

    Exhibit K – Page 1

     

    

 

IN WITNESS WHEREOF,
Assignor and Assignee have executed and delivered this Assignment the day and year first above written.

 

	 	ASSIGNOR:
	 	 
	 	KRG ST. CLOUD 13TH, LLC,
	 	a Delaware limited liability company
	 	 
	 	By:	 
	 	 	 
	 	Name:	 
	 	 	 
	 	Its:	 
	 	 
	 	ASSIGNEE:
	 	 
	 	__________________________ LLC,
	 	an Indiana limited liability company
	 	 
	 	By:	 
	 	 	 
	 	Name:	                                                    
	 	 	 
	 	Its:	 

 

    Exhibit K – Page 2

     

    

 

EXHIBIT
a TO GENERAL ASSIGNMENT AND ASSUMPTION AGREEMENT

 

    Exhibit K – Page 3

     

    

 

EXHIBIT L

 

LIST OF PENDING LITIGATION

 

None.

 

    Exhibit L – Page 1

     

    

 

EXHIBIT M

 

FORM OF NON FOREIGN PERSON CERTIFICATE

 

KITE
REALTY GROUP, L.P., a Delaware limited partnership ("Transferor"), is the sole member of KRG ST. CLOUD
13TH, LLC, a Delaware limited liability company ("Seller"). Seller is transferring to _________ STATION LLC, a
Delaware limited liability company ("Transferee"), that certain United States real property interest being more
particularly described on Exhibit A attached hereto and incorporated by reference herein (the "Real Estate").

 

Section 1445 of the
Internal Revenue Code (the "Code"), provides that a transferee of a United States property interest must withhold
tax if the transferor is a foreign person. For United States tax purposes (including Code Section 1445), the owner of a disregarded
entity (which has legal title to a United States real property interest under local law) will be the transferor of the United States
real property interest and not the disregarded entity. Seller is a disregarded entity under the Code. In order to inform the Transferee
that withholding of tax is not required upon the disposition by Transferor of the Real Estate, the undersigned Transferor declares
by means of this Certificate, the following on behalf of Transferor:

 

1.             Transferor
is not a foreign corporation, foreign partnership, foreign trust or foreign estate (as those terms are defined in the Internal
Revenue Code and Income Tax Regulations);

 

2.             Transferor
is not a disregarded entity as defined in Section 1.1445-2(b)(2)(iii);

 

3.             Transferor’s
U.S. Employer Identification Number is: 20-1453863; and

 

4.             Transferor’s
office address is: 30 S. Meridian, Suite 1100, Indianapolis, Indiana 46204.

 

Transferor understands
that this certification may be disclosed to the Internal Revenue Service by Transferee and that any false statement contained herein
could be punished by fine, imprisonment or both.

 

Dated:______________, 2016

 

	 	KITE REALTY GROUP, L.P.,
	 	a Delaware limited partnership
	 	 	 
	 	By:	 
	 	Name:	                     
	 	Its:	 

 

    Exhibit M – Page 1

     

    

 

EXHIBIT N

 

FORM OF DISCLOSURE NOTICE

 

    Exhibit N – Page 1

     

    

 

EXHIBIT O

 

FORM OF BRING DOWN CERTIFICATE

 

KRG ST. CLOUD 13TH,
LLC, a Delaware limited liability company (“Seller”), hereby certifies to __________________________ (“Buyer”)
that the representations and warranties of Seller contained in that certain Real Estate Purchase and Sale Agreement, dated ____________,
2016 (“Purchase Agreement”) between Seller, as Seller, and The Phillips Edison Group LLC, an Ohio limited liability
company, as Purchaser (as such Purchaser’s interest was assigned to _______________________ STATION LLC, a Delaware limited
liability company), are true and correct in all material respects as of the date hereof, and that such representations and warranties
shall survive for a period of one hundred eighty (180) days from the date hereof, subject to the provisions of the Purchase Agreement.
Capitalized terms used herein and not otherwise defined herein shall have the meanings set forth in the Purchase Agreement.

 

IN WITNESS WHEREOF,
the undersigned has executed this Bring Down Certificate as of _______________________, 2016.

 

	 	KRG ST. CLOUD 13TH, LLC,
	 	a Delaware limited liability company
	 	 	 
	 	By:	 
	 	Name:	                    
	 	Its:	 

 

    Exhibit O – Page 1

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