Document:

EXHIBIT 10.1

 

PROMISSORY NOTE 

  

	$500,000.00	September 20, 2013

  

FOR VALUE RECEIVED,
Strategic Realty Trust, Inc., a Maryland corporation (“Borrower”), promises to pay to the order of Glenborough
Property Partners, LLC, a Delaware limited liability company (“Lender”), at 400 S. El Camino Real, Suite 1100,
San Mateo, California 94402, or at such other place as Lender may from time to time in writing designate, in lawful money of the
United States of America, the principal sum of Five Hundred Thousand AND NO/100THS DOLLARS ($500,000.00) or so much thereof as
may be advanced hereunder from time to time, together with interest on the principal balance of this Note outstanding from time
to time, from the date of this Note until fully repaid at the rates hereinafter set forth. .

  

1.          Definitions.
As used herein, the terms “Borrower” and “Lender” have the meanings assigned in the preceding
paragraph, and the following terms have the following meanings:

 

(a)          “Business
Day” means any day that is not a Saturday, Sunday or legal holiday on which Lender is authorized or required by law to
close. All references in this Note to a “day” or a “date” shall be to a calendar day unless specifically
referenced as a Business Day.

 

(b)          
“Default Rate” means the lesser of (a) a fixed annual rate equal to the Interest Rate plus five percent (5%)
and (b) the maximum rate of interest permitted by applicable law.

 

(c)          “Event
of Default”. Any of the following events shall be deemed an “Event of Default” hereunder:

 

          (i)          Borrower
fails to pay any installment of principal or interest on the Note, when due.

 

          (ii)          Borrower,
or any Guarantor of the Loan, shall file a voluntary petition in bankruptcy or such a petition shall be filed against Borrower
or any Guarantor of the Loan or and is not dismissed within sixty (60) days after filing; or if Borrower or any Guarantor shall
file any petition or answer seeking or acquiescing in any reorganization, arrangement, composition, readjustment, liquidation,
dissolution or similar relief for itself under any present or future federal, state or other statute, law or regulation relating
to bankruptcy, insolvency or other relief for debtors; or Borrower, or any Guarantor of the Loan, shall seek or consent to or acquiesce
in the appointment of any trustee, receiver or liquidator of Borrower, or any Guarantor of the Loan, or for all or any part of
the Property, or for any or all of the royalties, revenues, rents, issues or profits thereof, or shall make any general assignment
for the benefit of creditors, or shall admit in writing its inability to pay its debts generally as they become due.

 

          (iii)          A
court of competent jurisdiction shall enter an order, judgment or decree approving a petition filed against Borrower, or any Guarantor
of the Loan, seeking any reorganization, dissolution or similar relief under any present or future federal, state or other statute,
law or regulation relating to bankruptcy, insolvency or other relief for debtors, and such order, judgment or decree shall remain
unvacated and unstayed for an aggregate of sixty (60) days (whether or not consecutive) from the first date of entry thereof; or
any trustee, receiver or liquidator of Borrower or any Guarantor or of all or any part of the Property, or of any or all of the
royalties, revenues, rents, issues or profits thereof, shall be appointed without the consent or acquiescence of Borrower or any
affected Guarantor and such appointment shall remain unvacated and unstayed for an aggregate of sixty (60) days (whether or not
consecutive).

 

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          (iv)          A
notice of Lien, levy, or assessment is filed or a writ of execution or attachment or any similar process is issued or levied with
respect to all or a part of the assets of Borrower or any Guarantor or any judgment involving monetary damages shall be entered
against Borrower and become a Lien on the assets of Borrower or any Guarantor, or any portion thereof or interest therein and Borrower
or Guarantor fails, within thirty (30) days, to satisfy or have the same released or to deposit with Lender cash or sufficient
corporate surety bond or other security satisfactory to Lender in an amount sufficient to discharge the Lien, levy, assessment,
writ or similar process or judgment plus any costs, attorney’s fees or other charges that could accrue as a result of a foreclosure
or sale under the Lien, levy, assessment, writ or similar process or judgment.

 

          (v)          Any
Guarantor of the Loan defaults under its Guaranty.

 

          (vi)          Any
Guaranty of the Loan ceases to be in full force and effect or any such Guarantor asserts that any such Guaranty is not in full
force and effect.

 

(d)          “Guaranty”
means that certain Guaranty Agreement of even date herewith, whereby Strategic Holdings guaranties the obligations of the Borrower
hereunder.

 

(e)          
“Interest Rate” means a rate per annum of seven percent (7%).

 

(f)          “Loan”
means the loan evidenced by this Note.

 

(g)          
“Loan Amount” means the then-current outstanding balance of the Loan, stated in U.S. Dollars.

 

(h)          
“Loan Term” means the period commencing on the Closing Date, through and including the Maturity Date.

 

(i)          
“Maturity Date” means the earlier of February 28, 2014 or the occurrence of an Acceleration Event as that term
is defined in the following sentence. An “Acceleration Event” is defined for purposes of this note as the occurrence
of any of the following: (i) SRT Advisor, LLC receives any notice of termination of that certain Advisory Agreement dated as of
August 10, 2013 among the REIT and the Operating Partnership on the one hand, and SRT Advisor, LLC on the other hand (the “Advisory
Agreement”), other than a notice of termination for Cause, as that term is defined in the Advisory Agreement or (ii) the
Advisory Agreement expires without renewal on terms acceptable to SRT Advisor, LLC.

 

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(j)          “Note”
means this Promissory Note and any renewals, extensions, amendments or supplements hereof.

 

(k)          “Operating
Partnership” means Strategic Realty Operating Partnership, LP (formerly known as TNP Strategic Retail Operating Partnership,
LP).

 

(l)          “Payment
Date” is defined in Section 3(b) of this Note.

 

(m)          ”Strategic
Holdings” means SRT Secured Holdings, LLC (formerly known as TNP SRT Secured Holdings, LLC).

 

(m)          “REIT”
means Strategic Realty Trust, Inc. (formerly known as TNP Strategic Retail Trust, Inc.).

 

2.          Interest.
During the Loan Term and until the entire principal balance of this Note is paid in full, the principal balance of this Note outstanding
from time to time shall bear interest at the Interest Rate. In computing the number of days during which interest accrues, the
day on which funds are advanced shall be included regardless of the time of day such advance is made, payments made by Borrower
to Lender under this Note shall be credited to Borrower on the Business Day such payment is received by Lender at the address set
forth in the preamble of this Note (or at such other address as Lender may direct in writing to Borrower); provided, however, any
payment received by Lender after 3:00 p.m., California time, on a Business Day shall be deemed received on the next following Business
Day. Interest shall be computed under this Note on a 365/360 Basis; that is, by applying the ratio of the annual interest rate
over a year of 360 days, multiplied by the outstanding principal balance, multiplied by the actual number of days the principal
balance is outstanding.

 

3.          Monthly
Payments.

 

(a)          Interest
Only. From and including the Closing Date, until the Note is paid in full, Borrower shall make payments to Lender of interest
only, in arrears, at the Interest Rate. Interest shall be paid on the fifth (5th) day of each calendar month.

 

(b)          Failure
to Timely Pay Interest. At Lender’s option, any interest that has accrued but is not paid as required under this Note
shall be compounded and added to the principal balance of this Note on the first day following the date such interest was required
to be paid. For purposes of making payments hereunder, but not for purposes of calculating interest accrual periods, if
the day on which such payment is due is not a Business Day, then amounts due on such date shall be due on the immediately following
Business Day.

 

(c)          Final
Payment. On the Maturity Date, Borrower shall make a final payment that shall include any unpaid principal, any interest accrued
and unpaid thereon, and any and all other sums due under this Note.

 

4.          Prepayment;
No Re-Borrowing. Borrower may prepay all or any portion of the Loan at any time or from time to time, without penalty. Once
the total amount of principal set forth above has been advanced, Borrower shall not be entitled to further loan advances. No amount
repaid hereunder may be re-borrowed.

 

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5.          Application
of Payments. All payments and prepayments received by Lender pursuant to this Note shall be applied in the following manner:
first, to the payment of all expenses, charges, costs (including, but not limited to the enforcement costs set forth in Section
11 below) and fees incurred by or payable to Lender and for which Borrower is obligated pursuant to the terms of the Loan (in
such order and manner as Lender, in its sole discretion, may elect); second, to the payment of all interest accrued to the date
of such payment; and third, to the payment of the Loan Amount. Notwithstanding anything to the contrary contained herein, after
the occurrence and during the continuation of an Event of Default (as hereinafter defined), all amounts received by Lender from
any party (other than pursuant to a guarantee) shall be applied in such order as Lender, in its sole discretion, may elect. Borrower
hereby waives any rights or benefits that may arise under or by virtue of California Civil Code Section 2822. If any installment
payment provided for herein is not sufficient to pay the entire amount of the accrued but unpaid interest hereunder, then the accrued
but unpaid interest shall be added to principal and shall accrue interest as principal.

 

6.          Maximum
Rate of Interest. Notwithstanding any provision in this Note, the total liability for payments of interest and payments in
the nature of interest, including without limitation, all charges, fees or any sums which may at any time be deemed to be interest,
shall not exceed the amount which Lender may lawfully collect. In the event the total liability for payments of interest and payments
in the nature of interest, including without limitation, all charges, fees or other sums which may at any time be deemed to be
interest, shall, for any reason whatsoever, result in an effective rate of interest, which for any month or other interest payment
period exceeds the amount which Lender may lawfully collect, all sums in excess of those lawfully collectible as interest for the
period in question shall, without further notice to any party hereto, be applied as a premium-free reduction of the principal balance
hereof immediately upon receipt of such sums by Lender, with the same force and effect as though Borrower had specifically designated
such excess sums to be so applied to the reduction of principal; provided, however, that Lender may, at any time, and from time
to time, elect, by notice in writing to Borrower, to waive, reduce or limit the collection of any sums (or refund to Borrower any
sums collected) in excess of those lawfully collectible as interest rather than accept such sums on prepayment of principal.

 

7.          Late
Charge. If all or any portion of any payment or deposit required hereunder (other than the payment due on the Maturity Date)
is not paid or deposited on or before the day on which such payment or deposit is due, Borrower shall pay a late or collection
charge, as liquidated damages, equal to five percent (5%) of the amount of such unpaid payment or deposit. Borrower acknowledges
that Lender will incur additional expenses as a result of any late payments or deposits hereunder, which expenses would be impracticable
to quantify, and that Borrower's payments under this Section 7 are a reasonable estimate of such expenses.

 

8.          Default
Interest. Time is of the essence hereof and if the entire balance of principal, accrued interest and any other amount due hereunder
are not paid in full on the Maturity Date, or upon acceleration of this Note, as applicable, then, without waiving or modifying
in any way any of the rights, remedies or recourse Lender may have under this Note by virtue thereof, the entire unpaid balance
of principal, accrued interest and any other amounts due hereunder shall bear interest from the Maturity Date or the date of acceleration
until paid in full at the Default Rate. In addition, the holder hereof shall have any and all other rights and remedies available
at law or in equity. If the Default Rate is triggered as a result of an Event of Default and Borrower subsequently cures the Event
of Default, then all amounts owing hereunder will resume bearing interest at the Interest Rate, rather than the Default Rate, on
the date the Event of Default is cured; provided, however, that the interest owing hereunder may again accrue at the Default Rate
upon the occurrence of a subsequent Event of Default. Borrower acknowledges that it would be extremely difficult or impracticable
to determine Lender’s actual damages resulting from Borrower’s failure to pay on the Maturity Date or upon acceleration
of this Note, as applicable, and such interest at the Default Rate is a reasonable estimate of those damages and does not constitute
a penalty. Interest at the Default Rate shall be paid without prejudice to the right of Lender to collect any other amounts provided
to be paid or to declare a default under this Note or the other Loan Documents.

 

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9.          Default.
Upon the occurrence of any Event of Default, Lender, at its option and without further notice, demand, or presentment for payment
to Borrower or others, may declare immediately due and payable the unpaid principal balance of this Note and interest accrued thereon
together with all other sums owed by Borrower under this Note (including, but not limited to attorneys’ fees), anything in
this Note to the contrary notwithstanding. Payment of such sums may be enforced and recovered in whole or in part at any time by
one or more of the remedies provided to Lender in this Note.

 

10.          Remedies
Cumulative. The remedies of Lender in this Note shall be cumulative and concurrent and may be pursued singly, successively
or together, at the sole discretion of Lender, and may be exercised as often as occasion therefor shall occur; and the failure
to exercise any such right or remedy shall in no event be construed as a waiver or release thereof.

 

11.          Enforcement
Costs. In the event of (a) any action or proceeding that involves the protection, preservation or enforcement of Lender’s
rights or Borrower’s obligations under this Note (including, but not limited to, Lender’s defense of any action by
Borrower in connection with the Loan or a case or proceeding under Title 11 of the United States Code, Section 101 et seq.),
(b) Lender’s collection or enforcement without institution of litigation proceedings, or (c) Lender’s participation
in any proceeding which is authorized under the terms of this Note, Lender shall be entitled to payment, upon demand, from Borrower
of all costs and expenses associated therewith, including reasonable attorneys’ fees and litigation expenses. Borrower will
pay Lender, upon demand, all reasonable attorneys’ fees and expenses incurred in the representation of Lender in any aspect
of any bankruptcy or insolvency proceeding initiated by or on behalf of Borrower that concerns any of its obligations to Lender.
In the event of a judgment against one party concerning any aspect of this Note, the right to recover post-judgment attorneys’
fees incurred in enforcing the judgment shall not be merged into and extinguished by any money judgment. The provisions of this
Section constitute a distinct and severable agreement from the other contractual rights created by this Note.

 

12.          Waivers.
Borrower waives diligence, presentment for payment, demand, notice of demand, notice of nonpayment or dishonor, protest and notice
of protest of this Note, and all other notices in connection with the delivery, acceptance, performance, default, or enforcement
of the payment of this Note. Borrower further waives all right of offset that it may now have or hereafter become entitled to with
respect to Lender. Lender shall not be deemed, by any act of omission or commission, to have waived any of its rights or remedies
hereunder unless such waiver is in writing and signed by Lender, and then only to the extent specifically set forth in the writing.
The acceptance by Lender of any payment hereunder which is less than payment in full of all amounts due and payable at the time
of such payment, including but not limited to acceptance of interest or other payments after the Maturity Date, shall not constitute
a waiver of the right to exercise any of the foregoing options at that time or at any subsequent time or nullify any prior exercise
of any such option without the express written consent of Lender. If Lender delays in exercising or fails to exercise any of its
rights under this Note, such delay or failure shall not constitute a waiver of any Lender rights or of any breach, default, or
failure of condition under this Note. No waiver by Lender of any of its rights or of any such breach, default, or failure of condition
shall be effective, unless the waiver is expressly stated in a writing signed by Lender. A waiver with reference to one event shall
not be construed as continuing or as a bar to or waiver of any right or remedy as to a subsequent event. Borrower hereby waives
any rights pursuant to California Civil Code sections 1479 and 2822 (and any amendments or successors thereto), to designate how
payments will be applied, and acknowledges and agrees that Lender shall have the right in its sole discretion to determine the
order and method of the application of payments on this Note or any other Loan Document.

 

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13.          JURY
TRIAL WAIVER; JUDICIAL REFERENCE. TO THE EXTENT PERMITTED BY APPLICABLE LAW, IN ANY JUDICIAL ACTION OR PROCEEDING ARISING FROM
OR RELATING TO THE LOAN OR THE LOAN DOCUMENTS, INCLUDING ANY ACTION OR PROCEEDING INVOLVING A CLAIM BASED ON OR ARISING FROM AN
ALLEGED TORT, BORROWER HEREBY WAIVES ANY RIGHT IT OR THEY MAY HAVE TO REQUEST OR DEMAND A TRIAL BY JURY. VENUE FOR ANY ACTION RELATED
TO THE LOAN OR LOAN DOCUMENTS SHALL BE IN AN APPROPRIATE COURT IN SAN MATEO COUNTY, CALIFORNIA SELECTED BY LENDER TO WHICH BORROWER
HEREBY CONSENTS. IN THE EVENT SUCH WAIVER IS UNENFORCEABLE OR INEFFECTIVE UNDER CALIFORNIA LAW, BORROWER AGREES THAT SUCH WAIVER
SHALL BE SEVERED FROM THIS AGREEMENT, AND THAT THE CALIFORNIA JUDICIAL REFERENCE AGREEMENT BETWEEN THE PARTIES SHALL GOVERN THE
METHOD, PROCESS AND FORUM FOR THE RESOLUTION OF ANY AND ALL DISPUTES ARISING FROM OR RELATING TO THE LOAN OR THE LOAN DOCUMENTS,
INCLUDING ANY CLAIM BASED ON OR ARISING FROM AN ALLEGED TORT.

 

14.          Commercial
Loan. Borrower warrants that the Loan evidenced by this Note is being made solely to acquire or carry on a business
or commercial enterprise, and/or Borrower is a business or commercial organization. Borrower further warrants that all of the proceeds
of this Note shall be used for commercial purposes and stipulates that the Loan evidenced by this Note shall be construed for all
purposes as a commercial loan, and is made for other than personal family or household purposes.

 

15.          Governing
Law. This instrument shall be governed by and construed according to the laws of the State of California, without giving effect
to its conflict of law principles.

 

16.          Choice
of Venue. If there is a lawsuit, Borrower agrees upon Lender’s request to submit to the jurisdiction of the courts of
San Mateo County, State of California.

 

17.          Construction
of Certain Terms. Whenever used, the singular shall include the plural, the plural shall include the singular, and the words
“Lender” and “Borrower” shall be deemed to include their respective heirs, administrators, executors, successors
and assigns.

 

18.          Notice.
All notices which Lender or Borrower may be required or permitted to give hereunder shall be made in writing, and shall be given
by hand, by facsimile transmission, by courier or overnight carrier or by registered or certified mail. Notices to the Lender shall
be addressed to Lender at the address set forth herein. Notices to the Borrower shall be given to the address for notice then in
effect under the terms of the Advisory Agreement. Any party hereto may at any time give notice in writing to the other parties
of a change in its addresses for the purposes of this Section.

 

19.          Severability
of Provisions. In the event any one or more of the provisions hereof shall be invalid, illegal or unenforceable in any respect,
the validity of the remaining provisions hereof shall be in no way affected, prejudiced or disturbed thereby.

 

20.          Sale
of Interest. Borrower acknowledges that Lender intends to sell one or more participations in the Loan, and may, in its sole
discretion, sell all or any part of its interest in the Loan as evidenced by this Note and, in connection therewith, Lender may
assign all or any portion of this Note. Any such sale and assignment may be at a discount or premium, subject to a brokerage fee
or involve a servicing agreement, and shall not alter any of Borrower’s obligations hereunder or under any of the Loan Documents.

 

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21.          Integration. This
Note and the Guaranty constitute the entire understanding of Borrower and Lender with respect to the matters discussed herein,
and supersede all prior and contemporaneous discussions, agreements and representations, whether oral or written. This Note may
only be modified in a writing signed by Lender and Borrower.

 

22.          Relationship.
The relationship of the parties hereto is that of borrower and lender and it is expressly understood and agreed that nothing contained
herein shall be interpreted or construed to make the parties partners, joint venturers or participants in any other legal relationship
except for borrower and lender.

 

23.          Joint
and Several Liability. If Borrower is composed of more than one entity or person, then each such entity person comprising Borrower
shall be jointly and severally liable for the obligations, covenants and agreements created by or arising out of this Note.

 

24.          Headings.
The section captions are inserted for convenience of reference only and shall in no way alter or modify the text of such sections.

 

[Signatures
appear on following page.]

 

    	Promissory Note
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IN WITNESS WHEREOF, Borrower, intending
to be legally bound hereby, has duly executed this Note the day and year first above written.

 

BORROWER:

Strategic Realty Trust, Inc.

a Maryland corporation

 

	 	By:  	/s/ Jack Maier	 
	 	 	Jack Maier, Director and Authorized Signatory	 

 

    	Promissory Note
Signature PageEXHIBIT 10.2

 

GUARANTY

  

THIS GUARANTY (this “Guaranty”)
is made as of September 20, 2013, by SRT Secured Holdings, LLC, a Delaware limited liability company (“Guarantor”),
in favor of Glenborough Property Partners, LLC, a Delaware limited liability company (“Lender”), with reference
to the following facts:

 

RECITALS

 

A.          Lender
has agreed to make a loan to Strategic Realty Trust, Inc., a Maryland corporation (“Borrower”) in the principal amount
of

Five Hundred Thousand and No/100ths Dollars ($500,000.00) (the “Loan”).

 

B.          The
Loan is evidenced by a Promissory Note of even date herewith made by Borrower in favor of Lender (the “Note”).

 

C.          The
Loan is recourse to Borrower and Borrower will be personally liable under the Note and for the repayment of the Loan. The Loan
is unsecured.

 

D.          It
is a condition precedent to making the Loan that Guarantor execute and deliver this Guaranty to Lender and Lender is making the
Loan in reliance on this Guaranty.

 

E.          Guarantor
will derive substantial direct and indirect benefits from Lender making the Loan.

 

GUARANTY

 

NOW, THEREFORE, in consideration of Lender
making the Loan to Borrower, and as an inducement to Lender to do so, Guarantor hereby agrees, covenants and warrants as follows:

 

1.          Guaranty.
Guarantor hereby unconditionally and irrevocably guarantees to Lender, and its successors, endorsees, transferees and assigns,
the full and prompt payment when due (whether at stated maturity, by required prepayment, declaration, acceleration, demand or
otherwise) of Borrower’s obligations under the Note (the “Guaranteed Obligations”), the terms of which
are incorporated herein as if set forth in full herein.

 

2.          Liability
of Guarantor. The liability of Guarantor under this Guaranty shall be irrevocable, absolute, independent and unconditional,
and shall not be affected by any circumstance which might constitute a discharge of a surety or guarantor other than the indefeasible
payment and performance in full of all Guaranteed Obligations. In furtherance of the foregoing and without limiting the generality
thereof, Guarantor agrees as follows:

 

(a)          Guarantor’s
liability hereunder shall be the immediate, direct, and primary obligation of the Guarantor and shall not be contingent upon Lender’s
exercise or enforcement of any remedy it may have against Borrower or any other person, or against any collateral for the Loan
(the “Collateral”), whether now existing or later granted, securing the Guaranteed Obligations.

 

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(b)          Lender
may enforce this Guaranty upon the occurrence of a condition or conditions causing recourse or personal liability to Borrower under
any of the Guaranteed Obligations, or upon notwithstanding the existence of any dispute between Lender and Borrower with respect
to the existence of such condition or conditions.

 

(c)          Guarantor’s
payment of a portion, but not all, of the Guaranteed Obligations shall in no way limit, affect, modify or abridge Guarantor’s
liability for any portion of the Guaranteed Obligations remaining unsatisfied.

 

(d)          Guarantor’s
liability with respect to the Guaranteed Obligations shall remain in full force and effect without regard to, and shall not be
impaired or affected by, nor shall Guarantor be exonerated or discharged by, any of the following events:

 

(i)          any
insolvency, bankruptcy, reorganization, arrangement, adjustment, composition, assignment for the benefit of creditors, liquidation,
winding up or dissolution of Borrower, Guarantor, any other guarantor or any other person;

 

(ii)          the
liability of Borrower, Guarantor, any other guarantor or any other person for any Guaranteed Obligations due to any statute, regulation
or rule of law, or any invalidity or unenforceability in whole or in part of any of the Guaranteed Obligations;

 

(iii)          any
merger, acquisition, consolidation or change in structure of Borrower, Guarantor or any other guarantor or person, or any sale,
lease, transfer or other disposition of any or all of the assets or shares of Borrower, Guarantor, any other guarantor or other
person;

 

(iv)          any
assignment or other transfer, in whole or in part, of Lender’s interests in and rights under this Guaranty or under the Note,
including Lender’s right to receive payment of the Guaranteed Obligations, or any assignment or other transfer, in whole
or in part, of Lender’s interests in and to any of the Collateral or other collateral securing the Guaranteed Obligations;

 

(v)          any
claim, defense, counterclaim or setoff, other than that of prior performance, that Borrower, Guarantor, any other guarantor or
other party may have or assert, including any defense of incapacity or lack of corporate or other authority to execute the Note;

 

(vi)          Lender’s
amendment, modification, renewal, extension, cancellation or surrender of any Guaranteed Obligations, any Collateral or other collateral
securing the Guaranteed Obligations, or Lender’s exchange, release, or waiver of any Collateral or of any other collateral
securing the Guaranteed Obligations;

 

(vii)          Lender’s
exercise or nonexercise of any power, right or remedy with respect to any of the Collateral, or any other collateral securing any
of the Guaranteed Obligations, including Lender’s compromise, release, settlement or waiver with or of Borrower, Guarantor,
any other guarantor or any other party;

 

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(viii)          Lender’s
vote, claim, distribution, election, acceptance, action or inaction in any bankruptcy case related to the Guaranteed Obligations;

 

(ix)          any
impairment or invalidity of any of the Collateral or any other collateral securing any of the Guaranteed Obligations or any failure
to perfect any of Lender’s liens thereon or therein; or

 

(x)          any
other guaranty, whether by Guarantor or any other party, of all or any part of the Guaranteed Obligations or any other indebtedness,
obligations or liabilities of Borrower to Lender.

 

3.          Consents
of Guarantor. Guarantor hereby unconditionally consents and agrees that, without notice to or further assent from Guarantor,
and all without impairing, abridging, releasing or affecting this Guaranty:

 

(a)          The
amount of the Guaranteed Obligations may be increased or decreased and additional indebtedness or obligations of Borrower may be
incurred, by one or more amendments, modifications, renewals or extensions or otherwise;

 

(b)          The
time, manner, place or terms of any payment may be extended or changed, including by an increase or decrease in the interest rate
on any Guaranteed Obligation or any fee or other amount payable, by an amendment, modification or renewal or otherwise;

 

(c)          The
time for Borrower’s (or any other party’s) performance of or compliance with any term, covenant or agreement on its
part to be performed or observed may be extended, or such performance or compliance waived, or failure in or departure from such
performance or compliance consented to, all in such manner and upon such terms as Lender may deem proper;

 

(d)          Lender
may discharge or release, in whole or in part, any other guarantor or any other party liable for the payment and performance of
all or any part of the Guaranteed Obligations, and may permit or consent to any such action or any result of such action, and shall
not be obligated to demand or enforce payment upon any of the collateral for the Loan, nor shall Lender be liable to Guarantor
for any failure to collect or enforce payment or performance of the Guaranteed Obligations from any party or to realize on the
collateral therefor;

 

(e)          Lender
may take and hold Collateral (legal or equitable) of any kind, at any time, for the Guaranteed Obligations, and may, from time
to time, in whole or in part, exchange, sell, surrender, release, subordinate, modify, waive, rescind, compromise or extend such
security and may permit or consent to any such action or the result of any such action, and may apply such security and direct
the order or manner of sale thereof;

 

(f)          Lender
may request and accept other guarantees of the Guaranteed Obligations and any other indebtedness, obligations or liabilities of
Borrower to Lender and may, from time to time, in whole or in part, surrender, release, subordinate, modify, waive, rescind, compromise
or extend any such guaranty and may permit or consent to any such action or the result of any such action; and

 

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(g)          Lender
may exercise, or waive or otherwise refrain from exercising, any other right, remedy, power or privilege (including the right to
accelerate the maturity of any Loan and any power of sale) granted by the note or other security document or agreement, or otherwise
available to Lender, with respect to the Guaranteed Obligations, any of the collateral for the Loan or other security for any or
all of the Guaranteed Obligations, even if the exercise of such right, remedy, power or privilege affects or eliminates any right
of subrogation or any other right of Guarantor against Borrower.

 

4.          Guarantor’s
Waivers.

 

(a)          Guarantor
waives and agrees not to assert:

 

(i)          any
right to require Lender to marshal assets in favor of Borrower, Guarantor, any other guarantor or any other person or entity (a
“Party”), to proceed against Borrower, any other guarantor or any other Party, to proceed against or exhaust
any of the Collateral held for the Guaranteed Obligations, to give notice of the terms, time and place of any public or private
sale of personal property security constituting the collateral for the loan or comply with any other provisions of Section 9611
of the California Uniform Commercial Code (or any equivalent provision of any other applicable law) or to pursue any other right,
remedy, power or privilege of Lender whatsoever;

 

(ii)          the
defense of the statute of limitations in any action hereunder or for the collection or performance of the Guaranteed Obligations;

 

(iii)          any
defense arising by reason of any lack of corporate or other authority or any other defense of Borrower, Guarantor or any other
Party;

 

(iv)          any
defense based upon Lender’s errors or omissions in the administration of the Guaranteed Obligations;

 

(v)          any
rights to set-offs and counterclaims;

 

(vi)          Guarantor’s
rights of subrogation, reimbursement, indemnification, and contribution and any other rights and defenses that are or may become
available to Guarantor by reason of California Civil Code Sections 2787 to 2855, inclusive;

 

(vii)          if
and to the extent any real property is taken as Collateral for the Loan, any rights or defenses Guarantor may have in respect of
his or her obligations as a guarantor or other surety by reason of any election of remedies by the creditor;

 

(viii)          if
and to the extent any real property is taken as Collateral for the Loan, any rights or defenses Guarantor may have because the
Loan obligation is secured by real property or an estate for years. These rights or defenses include, but are not limited to, any
rights or defenses that are based upon directly or indirectly, the application of Sections 580a, 580b, 580d or 726 of the
California Code of Civil Procedure to the Loan;

 

    	4

    	 

    

 

(ix)          if
and to the extent any real property is taken as Collateral for the Loan, any rights or defenses that Guarantor may have because
the Loan is secured by real property. This means, among other things: (A) Lender may collect from Guarantor without first
foreclosing on any real or personal property collateral pledged by Borrower; and (B) If Lender forecloses on any real property
collateral pledged by Borrower: (1) The amount of the Guaranteed Obligations may be reduced only by the price for which that
collateral is sold at the foreclosure sale, even if the collateral is worth more than the sale price; and (2) Lender may collect
from Guarantor even if Lender, by foreclosing on the real property collateral, has destroyed any right Guarantor may have to collect
from Borrower. This is an unconditional and irrevocable waiver of any rights and defenses Guarantor may have because Borrower’s
debt is secured by real property. These rights and defenses include, but are not limited to, any rights or defenses based upon
Sections 580a, 580b, 580d, or 726 of the California Code of Civil Procedure;

 

(x)          if
and to the extent any real property is taken as Collateral for the Loan, any rights or defenses arising out of an election of remedies
by Lender, even though that election of remedies, such as a nonjudicial foreclosure with respect to security for the Guaranteed
Obligations has destroyed Guarantor’s rights of subrogation and reimbursement against the principal by the operation of California
Code of Civil Procedure Section 580d or otherwise; and

 

(xi)          without
limiting the generality of the foregoing, to the fullest extent permitted by law, any defenses or benefits that may be derived
from or afforded by applicable law limiting the liability of or exonerating guarantors or sureties, or which may conflict with
the terms of this Guaranty.

 

(b)          Guarantor
waives any and all notice of the acceptance of this Guaranty, and any and all notice of the creation, renewal, modification, extension
or accrual of the Guaranteed Obligations, or the reliance by Lender upon this Guaranty, or the exercise of any right, power or
privilege hereunder. The Guaranteed Obligations shall conclusively be deemed to have been created, contracted, incurred and permitted
to exist in reliance upon this Guaranty. Guarantor waives promptness, diligence, presentment, protest, demand for payment, notice
of default, dishonor or nonpayment and all other notices to or upon Borrower, Guarantor or any other Party with respect to the
Guaranteed Obligations.

 

(c)          The
obligations of Guarantor hereunder are independent of and separate from the obligations of Borrower and any other guarantor and
upon the occurrence and during the continuance of any Event of Default (as defined in the Note), a separate action or actions may
be brought against Guarantor, whether or not Borrower or any such other guarantor is joined therein or a separate action or actions
are brought against Borrower or any such other guarantor.

 

(d)          Guarantor
shall not have any right to require Lender to obtain or disclose any information with respect to: (i) the financial condition
or character of Borrower or the ability of Borrower to pay and perform the Guaranteed Obligations; (ii) the Guaranteed Obligations;
(iii) the Collateral for the Loan or other security for any or all of the Guaranteed Obligations; (iv) the existence
or nonexistence of any other guarantees of all or any part of the Guaranteed Obligations; (v) any action or inaction on the
part of Lender or any other Party; or (vi) any other matter, fact or occurrence whatsoever.

 

    	5

    	 

    

 

5.          Waiver
of Subrogation Rights. Guarantor shall not have, shall not directly or indirectly exercise, and hereby waives (a) any
rights that it may acquire by way of subrogation under this Guaranty, by any payment hereunder or otherwise, (b) any rights
of contribution, indemnification, reimbursement or similar suretyship claims arising out of this Guaranty, and (c) any other
right which it might otherwise have or acquire (in any way whatsoever) which could entitle it at any time to share or participate
in any right, remedy or security of Lender as against Borrower or other guarantors, whether in connection with the Note or otherwise.
If any amount shall be paid to Guarantor on account of the foregoing rights at any time when all the Guaranteed Obligations shall
not have been paid in full, such amount shall be held in trust for the benefit of Lender and shall forthwith be paid to Lender
to be credited and applied to the Guaranteed Obligations, whether matured or unmatured, in accordance with the terms of the Note.

 

6.          Reinstatement.
This Guaranty shall continue to be effective or shall be reinstated and revived, as the case may be, if, for any reason, any payment
of the Guaranteed Obligations by or on behalf of Borrower (or receipt of any proceeds of Collateral) shall be rescinded, invalidated,
declared to be fraudulent or preferential, set aside, voided or otherwise required to be repaid to Borrower, its estate, trustee,
receiver or any other person or entity (including under the bankruptcy code or other state or federal law), or must otherwise be
restored by Lender, whether as a result of proceedings in bankruptcy or reorganization or otherwise. To the extent any payment
is so rescinded, set aside, voided or otherwise repaid or restored, the Guaranteed Obligations shall be revived in full force and
effect without reduction or discharge for such payment. All losses, damages, costs and expenses that Lender may suffer or incur
as a result of any voided or otherwise set aside payments shall be specifically covered by the indemnity in favor of Lender contained
in this Agreement.

 

7.          Payments.
Guarantor hereby agrees, in furtherance of the foregoing provisions of this Guaranty and not in limitation of any other right which
Lender or any other person or entity may have against Guarantor by virtue hereof, upon the failure of Borrower to pay any of the
Guaranteed Obligations when and as the same shall become due, whether at stated maturity, by required prepayment, declaration,
acceleration, demand or otherwise (including amounts that would become due but for the operation of the automatic stay under Section 362(a)
of the bankruptcy code), Guarantor shall forthwith pay, or cause to be paid, in cash, to Lender an amount equal to the amount of
the Guaranteed Obligations then due as aforesaid (including interest which, but for the filing of a petition in bankruptcy with
respect to Borrower, would have accrued on such Guaranteed Obligations, whether or not a claim is allowed against Borrower for
such interest in any such bankruptcy proceeding). Guarantor shall make each payment hereunder, unconditionally in full, without
set-off, counterclaim or other defense, or deduction for any taxes, on the day when due, in U.S. dollars and in immediately available
funds, to Lender as provided in the Note. All such payments shall be promptly applied from time to time by Lender as provided in
the Note.

 

8.          Representations
and Warranties. Guarantor represents and warrants to Lender that:

 

(a)          This
Guaranty constitutes the legal, valid and binding obligation of Guarantor, enforceable against Guarantor in accordance with its
terms.

 

    	6

    	 

    

 

(b)          Immediately
prior to and after and giving effect to the incurrence of Guarantor’s obligations under this Guaranty, Guarantor will not
be insolvent.

 

(c)          Guarantor
has received at least “reasonably equivalent value” (as such phrase is used in Section 548 of the bankruptcy code,
in Section 3439.04 of the California Uniform Fraudulent Transfer Act and in comparable provisions of other applicable law)
and more than sufficient consideration to support its obligations hereunder in respect of the Guaranteed Obligations.

 

(d)          Guarantor
hereby acknowledges that it has undertaken its own independent investigation of the financial condition of Borrower and all other
matters pertaining to this Guaranty and further acknowledges that it is not relying in any manner upon any representation or statement
of Lender with respect thereto. Guarantor represents and warrants that it has received and reviewed copies of the Note and that
it is in a position to obtain, and it hereby assumes full responsibility for obtaining, any additional information concerning the
financial condition of Borrower and any other matters pertinent hereto that Guarantor may desire. Guarantor is not relying upon
or expecting Lender to furnish to Guarantor any information now or hereafter in Lender’s possession concerning the financial
condition of Borrower or any other matter.

 

10.          Further
Assurances. So long as any Guaranteed Obligations shall remain unsatisfied or Lender shall have any outstanding commitment
to fund the Loan or any portion thereof, Guarantor will execute, acknowledge, deliver, file, notarize and register at its own expense
all such further agreements, instruments, certificates, documents and assurances and perform such acts as Lender shall deem necessary
or appropriate to effectuate the purposes of this Guaranty, and promptly provide Lender with evidence of the foregoing, in form
and substance satisfactory to Lender.

 

11.          Notices.
All notices and other communications provided for hereunder shall, unless otherwise stated herein, be in writing (including by
facsimile) and shall be mailed, sent or delivered (a) if to Lender, at or to its address or facsimile number set forth on
the signature page hereof, and (b) if to Guarantor, at or to its address set forth below its name on the signature page hereof,
or at or to such other address as such party shall have designated in a written notice to the other party. All such notices and
communications shall be effective (a) if delivered by hand, upon delivery, and (b) if sent by mail, upon the earlier
of the date of receipt or seventy-two (72) hours after deposit in the mail, first class (or air mail, with respect to communications
to be sent to or from the United States), postage prepaid.

 

12.          No
Waiver; Cumulative Remedies. No failure on the part of Lender to exercise, and no delay in exercising, any right, remedy, power
or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, remedy, power
or privilege preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The
rights and remedies under this Guaranty are cumulative and not exclusive of any rights, remedies, powers and privileges that may
otherwise be available to Lender.

 

    	7

    	 

    

 

13.          Costs
and Expenses; Indemnification.

 

(a)          In
the event of (i) any action or proceeding that involves the protection, preservation or enforcement of Lender’s rights
or Guarantor’s obligations under this Guaranty, or (ii) Lender’s collection or enforcement without institution
of litigation proceedings, Lender shall be entitled to payment, upon demand, from Guarantor of all costs and expenses associated
therewith, including reasonable attorneys’ fees and litigation expenses. Guarantor will pay Lender, upon demand, all reasonable
attorneys’ fees and expenses incurred in the representation of Lender in any aspect of any bankruptcy or insolvency proceeding
initiated by or on behalf of Guarantor that concerns any of its obligations to Lender under this Guaranty, or otherwise. In the
event of a judgment against one party concerning any aspect of this Guaranty, the right to recover post-judgment attorneys’
fees incurred in enforcing the judgment shall not be merged into and extinguished by any money judgment. The provisions of this
Section constitute a distinct and severable agreement from the other contractual rights created by this Guaranty.

 

(b)          In
addition, Guarantor hereby agrees to indemnify Lender, any affiliate thereof, and their respective directors, officers, employees,
agents, counsel and other advisors (each an “Indemnified Party”), against, and hold each of them harmless from,
any and all liabilities, obligations, losses, claims, damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind or nature whatsoever, including the reasonable fees and disbursements of counsel to an Indemnified Party (including
allocated costs of internal counsel), which may be imposed on, incurred by, or asserted against any Indemnified Party, (i) in
any way relating to or arising out of this Guaranty or the Guaranteed Obligations, or the transactions contemplated hereby or thereby,
or (ii) with respect to any investigation, litigation or other proceeding relating to any of the foregoing, irrespective of
whether the Indemnified Party shall be designated a party thereto (the “Indemnified Liabilities”); provided,
however, that Guarantor shall not be liable to any Indemnified Party for any portion of such Indemnified Liabilities to the
extent they are found by a final decision of a court of competent jurisdiction to have resulted from such Indemnified Party’s
negligence or willful misconduct. If and to the extent that the foregoing indemnification is for any reason held unenforceable,
Guarantor agrees to make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities which
is permissible under applicable law.

 

(c)          At
the election of any Indemnified Party, Guarantor shall defend such Indemnified Party using legal counsel satisfactory to such Indemnified
Party in such Party’s sole discretion, at the sole cost and expense of Guarantor.

 

(d)          Any
amounts payable to Lender under this Section if not paid upon demand shall bear interest from the date of such demand until paid
in full, at the highest rate of interest provided for in the Note.

 

14.          Survival.
All covenants, agreements, representations and warranties made in this Guaranty survive the execution and delivery of this Guaranty,
and shall continue in full force and effect so long as any Guaranteed Obligations remain unsatisfied. Without limiting the generality
of the foregoing, the obligations of Guarantor under Section 13 hereof, with respect to the matters arising prior to
the satisfaction of the Guaranteed Obligations, shall survive the satisfaction of the Guaranteed Obligations.

 

    	8

    	 

    

 

15.          Benefits
of Agreement. This Guaranty is entered into for the sole protection and benefit of Lender and its successors and assigns, and
no other Party shall be a direct or indirect beneficiary of, or shall have any direct or indirect cause of action or claim in connection
with, this Guaranty. Lender, by its acceptance of this Guaranty, shall not have any obligations under this Guaranty to any person
or entity other than Guarantor, and such obligations shall be limited to those expressly stated herein.

 

16.          Binding
Effect; Assignment. This Guaranty shall be binding upon Guarantor and its successors and assigns, and inure to the benefit
of and be enforceable by Lender and its successors, endorses, transferees and assigns. Guarantor shall not have the right to assign
or transfer its rights and obligations hereunder without the prior written consent of Lender.

 

17.          Entire
Agreement; Amendments and Waivers. This Guaranty constitutes the entire agreement of Guarantor with respect to the matters
set forth herein and supersedes any prior agreements, commitments, drafts, communications, discussions and understandings, oral
or written, with respect thereto. There are no conditions to the full effectiveness of this Guaranty. This Guaranty may not be
amended except by a writing signed by Guarantor and Lender. No waiver of any rights of Lender under any provision of this Guaranty
or consent to any departure by Guarantor therefrom shall be effective unless in writing and signed by Lender. Any such amendment,
waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.

 

18.          Limitation
on Lender’s Liability. No claim shall be made by Guarantor against Lender or any of its affiliates, directors, employees,
attorneys or agents for any special, indirect, exemplary, consequential or punitive damages in respect of any breach or wrongful
conduct (whether or not the claim therefor is based on contract, tort or duty imposed by law), in connection with, arising out
of or in any way related to the transactions contemplated by this Guaranty or any act or omission or event occurring in connection
therewith, and Guarantor hereby waives, releases and agrees not to sue upon any such claim for any such damages, whether or not
accrued and whether or not known or suspected to exist in its favor.

 

19.          Interpretation.
This Guaranty is the result of negotiations between and have been reviewed by counsel to Lender and Guarantor and is the product
of the parties hereto. Accordingly, this Guaranty shall not be construed against Lender merely because of Lender’s involvement
in the preparation thereof.

 

20.          Severability.
Whenever possible, each provision of this Guaranty shall be interpreted in such manner as to be effective and valid under all applicable
laws and regulations. If, however, any provision of this Guaranty shall be prohibited by or invalid under any such law or regulation
in any jurisdiction, it shall, as to such jurisdiction, be deemed modified to conform to the minimum requirements of such law or
regulation, or, if for any reason it is not deemed so modified, it shall be ineffective and invalid only to the extent of such
prohibition or invalidity without affecting the remaining provisions of this Guaranty, or the validity or effectiveness of such
provision in any other jurisdiction.

 

21.          Governing
Law. THIS GUARANTY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF CALIFORNIA, WITHOUT GIVING
EFFECT TO THE PRINCIPLES OF CONFLICT OF LAWS.

 

22.          Definitions.
All initially capitalized terms used and not otherwise defined in this Guaranty shall have the meanings set forth in the Loan Agreement.

 

    	9

    	 

    

 

	 	IN WITNESS WHEREOF, Guarantor has executed this Guaranty, as of the date first above written.
	 	 	 	 
	Guarantor:	 	 
	SRT Secured Holdings, LLC	 
	 	 	 	 
	By:	SRT Secured Holdings Manager, LLC	 
	 	Its Managing Member	 
	 	 	 	 
	 	By:	/s/ Andrew Batinovich	 
	 	 	Andrew Batinovich, CEO	 
	 	 	 	 
	Read and Consented to by Strategic Realty Operating Partnership, L.P., as member in Guarantor:
	 	 	 	 
	By:	Strategic Realty Trust, Inc.	 
	 	Its General Partner	 
	 	 	 	 
	 	By:	 /s/ Jack Maier	 
	 	 	Jack Maier, Director and Authorized signatory

 

    	10

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