AMENDED AND RESTATED 


 


ADVISORY AGREEMENT


 


BY AND AMONG


 


AMERICAN REALTY CAPITAL TRUST III, INC.,


 


AMERICAN REALTY CAPITAL OPERATING PARTNERSHIP
III, L.P.,


 


AND


 


AMERICAN REALTY CAPITAL ADVISORS III,
LLC


 


Dated as of August 7, 2012


 


 


 


 


 



    	 



    	 



    

 


TABLE OF
CONTENTS


 


	 	 	 	 	Page
	  1.	 	DEFINITIONS	 	1
	 	 	 	 	 
	  2.	 	APPOINTMENT	 	6
	 	 	 	 	 
	  3.	 	DUTIES OF THE ADVISOR	 	7
	 	 	 	 	 
	  4.	 	AUTHORITY OF ADVISOR	 	8
	 	 	 	 	 
	  5.	 	FIDUCIARY RELATIONSHIP	 	9
	 	 	 	 	 
	  6.	 	NO PARTNERSHIP OR JOINT VENTURE	 	9
	 	 	 	 	 
	  7.	 	BANK ACCOUNTS	 	9
	 	 	 	 	 
	  8.	 	RECORDS; ACCESS	 	9
	 	 	 	 	 
	  9.	 	LIMITATIONS ON ACTIVITIES	 	9
	 	 	 	 	 
	 10.	 	FEES	 	9
	 	 	 	 	 
	 11.	 	EXPENSES	 	10
	 	 	 	 	 
	 12.	 	OTHER SERVICES	 	12
	 	 	 	 	 
	 13.	 	REIMBURSEMENT TO THE ADVISOR	 	12
	 	 	 	 	 
	 14.	 	OTHER ACTIVITIES OF THE ADVISOR	 	13
	 	 	 	 	 
	 15.	 	THE AMERICAN REALTY CAPITAL NAME	 	13
	 	 	 	 	 
	 16.	 	TERM OF AGREEMENT	 	14
	 	 	 	 	 
	 17.	 	TERMINATION BY THE PARTIES	 	14
	 	 	 	 	 
	 18.	 	ASSIGNMENT TO AN AFFILIATE	 	14
	 	 	 	 	 
	 19.	 	PAYMENTS TO AND DUTIES OF ADVISOR UPON TERMINATION	 	14
	 	 	 	 	 
	 20.	 	INCORPORATION OF THE ARTICLES OF INCORPORATION AND THE OPERATING PARTNERSHIP AGREEMENT	 	15
	 	 	 	 	 
	 21.	 	INDEMNIFICATION BY THE COMPANY AND THE OPERATING PARTNERSHIP	 	15
	 	 	 	 	 
	 22.	 	INDEMNIFICATION BY ADVISOR	 	16
	 	 	 	 	 
	 23. 	 	NOTICES	 	16
	 	 	 	 	 
	 24.	 	MODIFICATION	 	17
	 	 	 	 	 
	 25.	 	SEVERABILITY	 	17
	 	 	 	 	 
	 26.	 	GOVERNING LAW	 	17







    	 



    	 



    
 


 


	 	 	 	 	 
	 27.	 	ENTIRE AGREEMENT	 	17
	 	 	 	 	 
	 28.	 	NO WAIVER	 	17
	 	 	 	 	 
	 29.	 	PRONOUNS AND PLURALS	 	17
	 	 	 	 	 
	 30.	 	HEADINGS	 	17
	 	 	 	 	 
	 31.	 	EXECUTION IN COUNTERPARTS	 	17
	 	 	 	 	 


 



    	 



    	 



    

 


ADVISORY AGREEMENT


 


THIS AMENDED AND RESTATED ADVISORY AGREEMENT
(this “Agreement”) dated as of August 7, 2012, is entered into among American Realty Capital Trust III,
Inc., a Maryland corporation (the “Company”), American Realty Capital Operating Partnership III, L.P., a Delaware
limited partnership (the “Operating Partnership”), and American Realty Capital Advisors III, LLC, a Delaware
limited liability company.


 


WITNESSETH


 


WHEREAS, the Company is a Maryland corporation
created in accordance with Maryland General Corporation Law and intends to qualify as a REIT;


 


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


 


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


 


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


 


WHEREAS, the Company, the Operating Partnership
and the Advisor entered into that certain Advisory Agreement (the “Original Advisory Agreement”), dated as of
March 31, 2011, as amended on June 23, 2011 and April 13, 2012; and


 


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


 


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


 


1.           
DEFINITIONS.   As used in this Agreement, the following terms have the definitions set forth below:


 


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


 


“Acquisition Fee”
means the fees payable to the Advisor or its assignees pursuant to Section 10(a).


 


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



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“ Affiliate” or
“ Affiliated” means with respect to any Person, (i) any other Person directly or indirectly owning,
controlling or holding, with the power to vote, ten percent (10%) or more of the outstanding voting securities of such Person;
(ii) any other Person ten percent (10%) or more of whose outstanding voting securities are directly or indirectly owned, controlled
or held, with the power to vote, by such Person; (iii) any other Person directly or indirectly controlling, controlled by
or under common control with such Person; (iv) any executive officer, director, trustee or general partner of such Person;
and (v) any legal entity for which such Person acts as an executive officer, director, trustee or general partner.  For
purposes of this definition, the terms “controls,” “is controlled by,” or “is under common control
with” shall mean the possession, direct or indirect, of the power to direct or cause the direction of the management and
policies of an entity, whether through ownership or voting rights, by contract or otherwise.


 


“Agreement” has
the meaning set forth at the head of this Agreement, and such term shall include any amendment or supplement hereto from time to
time.


 


“Articles of Incorporation”
means the charter of the Company, as the same may be amended from time to time.


 


“Asset Management Fee”
means the fee payable to the Advisor pursuant to Section 10(d). 


  


“ Average Invested Assets
” has the meaning set forth in the Articles of Incorporation.  For an equity interest owned in a Joint Venture,
the calculation of Average Invested Assets shall take into consideration the underlying Joint Venture’s aggregate book value
for the equity interest.


 


“Board of Directors”
or “Board” means the Board of Directors of the Company.


 


“By-laws” means
the by-laws of the Company, as amended and as the same are in effect from time to time.


 


“ Cause” means
(i) fraud, criminal conduct, willful misconduct or illegal or negligent breach of fiduciary duty by the Advisor, or (ii) if any
of the following events occur:  (A) the Advisor shall breach any material provision of this Agreement, and after written
notice of such breach, shall not cure such default within thirty (30) days or have begun action within thirty (30) days to cure
the default which shall be completed with reasonable diligence; (B) the Advisor shall be adjudged bankrupt or insolvent by a court
of competent jurisdiction, or an order shall be made by a court of competent jurisdiction for the appointment of a receiver, liquidator,
or trustee of the Advisor, for all or substantially all its property by reason of the foregoing, or if a court of competent jurisdiction
approves any petition filed against the Advisor for reorganization, and such adjudication or order shall remain in force or unstayed
for a period of thirty (30) days; or (C) the Advisor shall institute proceedings for voluntary bankruptcy or shall file a petition
seeking reorganization under the federal bankruptcy laws, or for relief under any law for relief of debtors, or shall consent to
the appointment of a receiver for itself or for all or substantially all its property, or shall make a general assignment for the
benefit of its creditors, or shall admit in writing its inability to pay its debts, generally, as they become due.


 


“ Change of Control
” means a change of control of the Company of a nature that would be required to be reported in response to the disclosure
requirements of Schedule 14A of Regulation 14A promulgated under the Securities Exchange Act of 1934, as amended (the “ Exchange
Act ”), as enacted and in force on the date hereof, whether or not the Company is then subject to such reporting requirements;
provided, however , that, without limitation, a Change of Control shall be deemed to have occurred if:  (i) any
“person” (within the meaning of Section 13(d) of the Exchange Act, as enacted and in force on the date hereof) is or
becomes the “beneficial owner” (as that term is defined in Rule 13d-3, as enacted and in force on the date hereof,
under the Exchange Act) of securities of the Company representing 9.8% or more of the combined voting power of the Company’s
securities then outstanding; (ii) there occurs a merger, consolidation or other reorganization of the Company which is not approved
by the Board of Directors; (iii) there occurs a sale, exchange, transfer or other disposition of substantially all the assets of
the Company to another Person, which disposition is not approved by the Board of Directors; or (iv) there occurs a contested proxy
solicitation of the Stockholders that results in the contesting party electing candidates to a majority of the Board of Directors’
positions next up for election.


 



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


 


“Common Stock”
means the shares of the Company’s common stock, par value $0.01 per share.


 


“Company” has
the meaning set forth at the head of this Agreement.


 


“Competitive Real Estate Commission”
means a real estate or brokerage commission for the purchase or sale of an asset which is reasonable, customary and competitive
in light of the size, type and location of the asset.


 


“Contract Purchase Price”
has the meaning set forth in the Articles of Incorporation.


 


“Contract Sales Price”
means the total consideration received by the Company for the sale of an Investment.


 


“Cost of Assets”
means, with respect to a Real Estate Asset, the purchase price,


Acquisition Expenses, capital expenditures and other customarily
capitalized costs, but shall exclude Acquisition Fees associated with such Real Estate Asset.


 


“Dealer Manager”
means Realty Capital Securities, LLC, or such other Person selected by the Board of Directors to act as the dealer manager for
the Offering.


 


“Dealer Manager Fee”
means the fee from the sale of Shares in a Primary Offering, payable to the Dealer Manager for serving as the dealer manager of
such Primary Offering.


 


“Director” means
a director of the Company.


 


“Distributions”
means any distributions of money or other property by the Company to Stockholders, including distributions that may constitute
a return of capital for U.S. federal income tax purposes.


 


“Excess Amount” has
the meaning set forth in Section 13.


 


“Expense Year”
has the meaning set forth in Section 13.


 


“FFO” means funds
from operations, as defined by the National Association of Real Estate Investment Trusts.


 


“Financing Coordination Fee” means
the fees payable to the Advisor pursuant to Section 10(e).


 


“FINRA” means
the Financial Industry Regulatory Authority, Inc.


 


“GAAP” means United
States generally accepted accounting principles, consistently applied.


 


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


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




 


“Included Assets”
has the meaning set forth in Section 19(b)(ii).


 


“Indemnitee” has
the meaning set forth in Section 21.


 


“Independent Director”
has the meaning set forth in the Articles of Incorporation.


 


“Investments”
means any investments by the Company or the Operating Partnership, directly or indirectly, in Real Estate Assets, Real Estate Related
Loans or any other asset.


 


“Joint Ventures”
means the joint venture or partnership or other similar arrangements (other than between the Company and the Operating Partnership)
in which the Company or the Operating Partnership or any of their subsidiaries is a co-venturer, limited liability company member,
limited partner or general partner, which are established to acquire or hold Investments.


 


“Listing”
means the listing of the Common Stock on a national securities exchange, or the trading of Common Stock in the over-the-counter-market.


 


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


 


“Management Agreement”
means the Property Management Agreement, dated as of March 31, 2011, among the Company, the Operating Partnership and American
Realty Capital Properties III, LLC, as the same may be amended from time to time.


  


“NAREIT
FFO” means funds from operations, or FFO, consistent with the standards established by the White Paper on FFO approved
by the Board of Governors of the National Association of Real Estate Investment Trusts, or NAREIT, as revised in February 2004
and as modified by NAREIT from time to time.


 


“NASAA REIT Guidelines”
means the Statement of Policy Regarding Real Estate Investment Trusts as revised and adopted by the North American Securities Administrators
Association on May 7, 2007, as the same may be amended from time to time.


 


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


  


“Notice” has the
meaning set forth in Section 23.


 


“Offering” means
any public offering and sale of Shares pursuant to an effective registration statement filed under the Securities Act.


 


“Operating Partnership”
has the meaning set forth at the head of this Agreement.


 


“Operating Partnership Agreement”
means the Agreement of Limited Partnership of the Operating Partnership, among the Company, the Operating Partnership and American
Realty Capital  Trust III Special Limited Partner, LLC, as the same may be amended from time to time.


 



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“OP Units” means
units of limited partnership interest in the Operating Partnership.


 


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





 


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


 


“Other Liquidity Event”
means a liquidation or the sale of all or substantially all the Investments (regardless of the form in which such sale shall occur).  For
clarification purposes, a transaction of the type described in clause (ii) of the definition of Listing shall not be an Other Liquidity
Event.


 


“Person” has the
meaning set forth in the Articles of Incorporation.


  


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


  


“Property Disposition Fee”
means the fee payable to the Advisor pursuant to Section 10(c) .


 


“Prospectus” means
a final prospectus of the Company filed pursuant to Rule 424(b) of the Securities Act, as the same may be amended or supplemented
from time to time. 


 


“Real Estate Assets”
means any investment by the Company or the Operating Partnership in unimproved and improved Real Property (including fee or leasehold
interests, options and leases), directly, through one or more subsidiaries or through a Joint Venture.


 


“Real Estate Related Loans”
means any investments in mortgage loans and other types of real estate related debt financing, including, mezzanine loans, bridge
loans, convertible mortgages, wraparound mortgage loans, construction mortgage loans, loans on leasehold interests and participations
in such loans, by the Company or the Operating Partnership, directly, through one or more subsidiaries or through a Joint Venture.


 


“Real Property”
means (i) land, (ii) rights in land (including leasehold interests), and (iii) any buildings, structures, improvements, furnishings,
fixtures and equipment located on or used in connection with land and rights or interests in land.


 


“REIT” means a
corporation, trust, association or other legal entity (other than a real estate syndication) that is engaged primarily in investing
in equity interests in real estate (including fee ownership and leasehold interests) or in loans secured by real estate or both,
as defined pursuant to Sections 856 through 860 of the Code and any successor or other provisions of the Code relating to real
estate investment trusts (including provisions as to the attribution of ownership of beneficial interests therein) and the regulations
promulgated thereunder.


 


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


 



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 “Securities Act”
means the Securities Act of 1933, as amended from time to time, or any successor statute thereto. Reference to any provision of
the Securities Act shall mean such provision as in effect from time to time, as the same may be amended, and any successor provision
thereto, as interpreted by any applicable regulations as in effect from time to time. 


 


“Selling Commission”
means the fee payable to the Dealer Manager and reallowable to Soliciting Dealers with respect to Shares sold by them in a Primary
Offering.


 


“Shares” means
the shares of beneficial interest or of common stock of the Company of any class or series, including Common Stock, that has the
right to elect the Directors of the Company.


 


“Soliciting Dealers”
means broker-dealers that are members of FINRA, or that are exempt from broker-dealer registration, and that, in either case, have
executed soliciting dealer or other agreements with the Dealer Manager to sell Shares.


 


“Sponsor” means
American Realty Capital II, LLC, a Delaware limited liability company.


 


“Stockholders”
means the holders of record of the Shares as maintained on the books and records of the Company or its transfer agent.


  


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


 


“ Total Operating Expenses”
has the meaning set forth in the Articles of Incorporation.  The definition of “Total Operating Expenses”
set forth above is intended to encompass only those expenses which are required to be treated as Total Operating Expenses under
the NASAA REIT Guidelines.  As a result, and notwithstanding the definition set forth above, any expense of the Company
which is not part of Total Operating Expenses under the NASAA REIT Guidelines shall not be treated as part of Total Operating Expenses
for purposes hereof.


 


“2%/25% Guidelines”
has the meaning set forth in Section 13.


 


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


 


 



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3.           
DUTIES OF THE ADVISOR.   The Advisor will use its reasonable best efforts to present to the Company and the Operating
Partnership potential investment opportunities and to provide a continuing and suitable investment program consistent with the
investment objectives and policies of the Company as determined and adopted from time to time by the Board.  In performance
of this undertaking, subject to the supervision of the Board and consistent with the provisions of the Articles of Incorporation,
By-laws and the Operating Partnership Agreement, the Advisor, directly or indirectly, will:  


 


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


 


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


 


(c)           investigate,
select and, on behalf of the Company and the Operating Partnership, engage and conduct business with and supervise the performance
of such Persons as the Advisor deems necessary to the proper performance of its obligations hereunder (including consultants, accountants,
correspondents, lenders, technical advisors, attorneys, brokers, underwriters, corporate fiduciaries, escrow agents, depositaries,
custodians, agents for collection, insurers, insurance agents, banks, builders, developers, property owners, property managers,
real estate management companies, real estate operating companies, securities investment advisors, mortgagors, the registrar and
the transfer agent and any and all agents for any of the foregoing), including Affiliates of the Advisor and Persons acting in
any other capacity deemed by the Advisor necessary or desirable for the performance of any of the foregoing services (including
entering into contracts in the name of the Company and the Operating Partnership with any of the foregoing);





 


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


 


(e)           subject
to the provisions of Section 4 , (i) participate in formulating an investment strategy and asset allocation framework;
(ii) locate, analyze and select potential Investments; (iii) structure and negotiate the terms and conditions of transactions
pursuant to which acquisitions and dispositions of Investments will be made; (iv) research, identify, review and recommend
acquisitions and dispositions of Investments to the Board and make Investments on behalf of the Company and the Operating Partnership
in compliance with the investment objectives and policies of the Company; (v) arrange for financing and refinancing and make
other changes in the asset or capital structure of, and dispose of, reinvest the proceeds from the sale of, or otherwise deal with,
Investments; (vi) enter into leases and service contracts for Real Estate Assets and, to the extent necessary, perform all
other operational functions for the maintenance and administration of such Real Estate Assets; (vii) actively oversee and
manage Investments for purposes of meeting the Company’s investment objectives and reviewing and analyzing financial information
for each of the Investments and the overall portfolio; (viii) select Joint Venture partners, structure corresponding agreements
and oversee and monitor these relationships; (ix) oversee, supervise and evaluate Affiliated and non-Affiliated property managers
who perform services for the Company or the Operating Partnership; (x) oversee Affiliated and non-Affiliated Persons with
whom the Advisor contracts to perform certain of the services required to be performed under this Agreement; (xi) manage accounting
and other record-keeping functions for the Company and the Operating Partnership, including reviewing and analyzing the capital
and operating budgets for the Real Estate Assets and generating an annual budget for the Company; (xii) recommend various
liquidity events to the Board when appropriate; and (xiii) source and structure Real Estate Related Loans; 


 


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


 





 



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


 


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


 


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


 


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


 


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


 


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


 





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


 


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


 


(o)           perform
investor-relations and Stockholder communications functions for the Company;


  


(p)           render
such services as may be reasonably determined by the Board of Directors consistent with the terms and conditions herein;


 


(q)           maintain
the Company’s accounting and other records and assist the Company in filing all reports required to be filed by it with the
SEC, the Internal Revenue Service and other regulatory agencies; and


 


(r)           do
all things reasonably necessary to assure its ability to render the services described in this Agreement.


 


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


 


4.           
AUTHORITY OF ADVISOR.


 


(a)           Pursuant
to the terms of this Agreement (including the restrictions included in this Section 4 and in Section 9),
and subject to the continuing and exclusive authority of the Board over the supervision of the Company, the Company, acting on
the authority of the Board of Directors, hereby delegates to the Advisor the authority to perform the services described in Section 3.


 



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(b)           Notwithstanding
anything herein to the contrary, all Investments will require the prior approval of the Board, any particular Directors specified
by the Board or any committee of the Board specified by the Board, as the case may be.


 


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


 


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


 


5.           
FIDUCIARY RELATIONSHIP.   The Advisor, as a result of its relationship with the Company and the Operating Partnership
pursuant to this Agreement, has a fiduciary responsibility and duty to the Company, the Stockholders and the partners in the Operating
Partnership. 


 


6.           
NO PARTNERSHIP OR JOINT VENTURE.   The parties to this Agreement are not partners or joint venturers with each other
and nothing herein shall be construed to make them partners or joint venturers or impose any liability as such on either of them.


 


7.           
BANK ACCOUNTS.   The Advisor may establish and maintain one or more bank accounts in the name of the Company or the
Operating Partnership and may collect and deposit into any such account or accounts, and disburse from any such account or accounts,
any money on behalf of the Company or the Operating Partnership, under such terms and conditions as the Board may approve; provided,
that no funds shall be commingled with the funds of the Advisor; and, upon request, the Advisor shall render appropriate accountings
of such collections and payments to the Board and to the auditors of the Company. 





 


8.           
RECORDS; ACCESS.   The Advisor shall maintain appropriate records of all its activities hereunder and make such records
available for inspection by the Directors and by counsel, auditors and authorized agents of the Company, at any time and from time
to time.  The Advisor shall at all reasonable times have access to the books and records of the Company and the Operating
Partnership.


 


9.           
LIMITATIONS ON ACTIVITIES   Notwithstanding anything herein to the contrary, the Advisor shall refrain from taking
any action which, in its sole judgment, or in the sole judgment of the Company, made in good faith, would (a) adversely affect
the status of the Company as a REIT, unless the Board has determined that REIT qualification is not in the best interests of the
Company and its Stockholders, (b) subject the Company to regulation under the Investment Company Act of 1940, as amended,
or (c) violate any law, rule, regulation or statement of policy of any governmental body or agency having jurisdiction over
the Company, the Operating Partnership or the Shares, or otherwise not be permitted by the Articles of Incorporation or By-laws,
except if such action shall be ordered by the Board, in which case the Advisor shall notify promptly the Board of the Advisor’s
judgment of the potential impact of such action and shall refrain from taking such action until it receives further clarification
or instructions from the Board.  In such event, the Advisor shall have no liability for acting in accordance with the
specific instructions of the Board so given.


 


10.         FEES.


 


(a)           
Acquisition Fee.  The Company shall pay an Acquisition Fee to the Advisor or its assignees as compensation
for services rendered in connection with the investigation, selection and acquisition (by purchase, investment or exchange) of
Investments. If the Advisor is terminated without cause pursuant to Section 17(a), the Advisor or its assignees shall be entitled to
an Acquisition Fee for any Investments acquired after the Termination Date for which a contract to acquire any such Investment
had been entered into at or prior to the Termination Date. The total Acquisition Fee payable to the Advisor or its assignees shall
equal one percent (1.0%) of the Contract Purchase Price of each asset acquired.  The purchase price allocable for an
Investment held through a Joint Venture shall equal the product of (i) the Contract Purchase Price of the asset and (ii) the
direct or indirect ownership percentage in the Joint Venture held directly or indirectly by the Company or the Operating Partnership.  For
purposes of this section, “ownership percentage” shall be the percentage of capital stock, membership interests, partnership
interests or other equity interests held by the Company or the Operating Partnership, without regard to classification of such
equity interests.  The Company shall pay to the Advisor or its assignees the Acquisition Fee promptly upon the closing
of the Investment.  In addition, if during the period ending two years after the close of the initial Offering, the Company
sells an Investment and then reinvests in other Investments, the Company will pay to the Advisor or its assignees one percent (1.0%)
of the Contract Purchase Price. 


 


 



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(b)           
Limitation on Total Acquisition Fees, Financing Coordination Fees and Acquisition Expenses.  The total
of all Acquisition Fees, Financing Coordination Fees and Acquisition Expenses payable in connection with any Investment or any
reinvestment shall be reasonable and shall not exceed an amount equal to four and one-half percent (4.5%) of the Contract
Purchase Price of the Investment acquired or four and one-half percent (4.5%) of the amount advanced for an Investment; provided,
however, that once all the proceeds from the initial Offering have been fully invested, the total of all Acquisition Fees and
Financing Coordination Fees shall not exceed one and one-half percent (1.5%) of the Contract Purchase Price of all the Investments
acquired; provided, further, however, that a majority of the Directors (including a majority of the Independent
Directors) not otherwise interested in the transaction may approve fees and expenses in excess of these limits if they determine
the transaction to be commercially competitive, fair and reasonable to the Company.


 


(c)           
Property Disposition Fee.  In connection with a Sale of a Real Estate Asset in which the Advisor or any
Affiliate of the Advisor provides a substantial amount of services, as determined by the Independent Directors, the Company shall
pay to the Advisor or its assignees a Property Disposition Fee up to the lesser of (i) one percent (1.0%) of the Contract
Sales Price of such Real Estate Asset or (ii) one-half of the Competitive Real Estate Commission paid if a non-Affiliate broker
is also involved; provided, however, that in no event may the Property Disposition Fee, when added to all other real estate
commissions paid to non-Affiliates of the Advisor in connection with such Sale, exceed the lesser of six percent (6.0%) of the
Contract Sales Price and a Competitive Real Estate Commission.





 


(d)           
Asset Management Fee.   The Company shall pay an Asset Management Fee to the Advisor or its assignees as
compensation for services rendered in connection with the management of the Company’s assets in an amount equal to 0.75%
per annum of the Cost of Assets; provided, however, that the Asset Management Fee shall be reduced by any amounts
payable as an Oversight Fee (as defined in the Management Agreement), such that the aggregate of the Asset Management Fee and the
Oversight Fee does not exceed 0.75% per annum of the Cost of Assets. The Asset Management Fee is payable on the first business
day of each month for the respective current month in the amount of 0.0625% of the Cost of Assets as of such date. The Asset Management
Fee will be reduced to the extent that NAREIT FFO, as adjusted, during the six months ending on the last day of the calendar quarter
immediately preceding the date that such Asset Management Fee is payable, is less than the Distributions paid with respect to such
six month period. For purposes of this determination, NAREIT FFO, as adjusted, is NAREIT FFO adjusted to (i) include acquisition
fees and related expenses, which is deducted in computing NAREIT FFO; and (ii) include non-cash restricted stock grant amortization,
if any, which is deducted in computing NAREIT FFO.


 


(e)           
Financing Coordination Fee.   The Company shall pay a Financing Coordination Fee to the Advisor or its
assignees in connection with the financing of any Investment, assumption of any Loans with respect to any Investment or refinancing
of any Loan in an amount equal to one percent (1.0%) of the amount made available and/or outstanding under any such Loan, including
any assumed Loan.  The Advisor may reallow some of or all this Financing Coordination Fee to reimburse third parties
with whom it may subcontract to procure any such Loan.


  


(f)           
Payment of Fees.   In connection with the Acquisition Fee, Property Disposition Fee and Financing Coordination
Fee, the Company shall pay such fees to the Advisor or its assignees in cash or in Shares, or a combination of both, the form of
payment to be determined in the sole discretion of the Advisor. The Asset Management Fee shall be payable, at the discretion of
the Board of Directors, in cash, Shares or grants of restricted Shares, or any combination thereof. For the purposes of the payment
of any fees in Shares, (i) if at the applicable time an Offering is underway, each Share shall be valued at the per-share offering
price of the Shares in such Offering minus the maximum selling commissions and dealer manager fee allowed in such Offering; and
(ii) at all other times, each Share shall be valued by the Board in good faith (A) at the estimated value thereof, calculated in
accordance with the provisions of NASD Rule 2340(c)(1) (or any successor or similar FINRA rule), or (B) if no such rule shall then
exist, at the fair market value thereof; provided, however, that in the case of Asset Management Fees payable in grants of restricted
Shares, each Share shall be valued in accordance with the provisions of the equity incentive plan of the Company pursuant to which
such grants are to be made.


  



    	10



    	 



    

 








(g)         
   Exclusion of Certain Transactions. 


 


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


 


(ii)          Neither
the Company nor the Operating Partnership shall make Loans to the Advisor or any Affiliate thereof or certain of the Stockholders
except Mortgages (as defined in the Articles of Incorporation) pursuant to Section 9.3(iii) of the Articles of Incorporation (or
any successor provision) or loans to wholly owned subsidiaries of the Company. None of the Advisor nor any Affiliate thereof, or
certain of the Stockholders shall make loans to the Company or the Operating Partnership, or to Joint Ventures, unless approved
by a majority of the Directors (including a majority of the Independent Directors) not otherwise interested in such transaction
as fair, competitive, and commercially reasonable, and no less favorable to the Company or Operating Partnership, as applicable,
than comparable loans between unaffiliated parties.


 


(iii)           The
Company and the Operating Partnership may enter into Joint Ventures with the Advisor or its Affiliates provided that (a) a majority
of Directors (including a majority of Independent Directors) not otherwise interested in the transaction approves the transaction
as being fair and reasonable to the Company or Operating Partnership, as applicable, and (b) the investment by the Company or Operating
Partnership, as applicable, is on substantially the same terms as those received by other joint venturers.





 


 (iv)           If
the Board elects to internalize any management services provided by the Advisor, neither the Company nor the Operating
Partnership shall pay any compensation or other remuneration to the Advisor or its Affiliates in connection with such internalization
of management services.


 


11.        
  EXPENSES.


 


(a)           In
addition to the compensation paid to the Advisor pursuant to Section 10, the Company or the Operating Partnership shall
pay directly or reimburse the Advisor for all the expenses paid or incurred by the Advisor or its Affiliates in connection with
the services it provides to the Company and the Operating Partnership pursuant to this Agreement, including, the following:


 


(i)             Organization
and Offering Expenses, including third-party due diligence fees related to the Primary Offering, as set forth in detailed and itemized
invoices; provided, however, that the Company shall not reimburse the Advisor to the extent such reimbursement would cause
the total amount of Organization and Offering Expenses paid by the Company and the Operating Partnership to exceed one and one-half
percent (1.5%) of the Gross Proceeds raised in all Primary Offerings;


 


(ii)           Acquisition
Expenses incurred in connection with the selection and acquisition of Investments, subject to the aggregate four and one-half percent
(4.5%) cap on Acquisition Fees, Financing Coordination Fees and Acquisition Expenses set forth in Section 10(b) ;






    	11



    	 



    

 





 


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


 


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


 


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


 


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


 


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


 


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


 


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


 


(x)           expenses
connected with payments of Distributions;


 


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


 


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


  


(xiii)         administrative
service expenses, including all costs and expenses incurred by Advisor or its Affiliates in fulfilling its duties hereunder, including
reasonable salaries and wages, benefits and overhead of all employees directly involved in the performance of such services; provided
, however , that no reimbursement shall be made for costs of such employees of the Advisor or its Affiliates to the extent
that such employees perform services for which the Advisor receives a separate fee; and


 


(xiv)          audit,
accounting and legal fees.


 


(b)           Commencing
upon the earlier to occur of (i) the fifth fiscal quarter after the Company makes its first Investment or (ii) six (6) months after
the commencement of the initial Offering, expenses incurred by the Advisor on behalf of the Company and the Operating Partnership
or in connection with the services provided by the Advisor hereunder and payable pursuant to this Section 11 shall
be reimbursed, no less than monthly, to the Advisor.


 


12.         
OTHER SERVICES.    Should the Board request that the Advisor or any director, officer or employee thereof
render services for the Company and the Operating Partnership other than set forth in Section 3 , such services shall
be separately compensated at such customary rates and in such customary amounts as are agreed upon by the Advisor and the Board,
including a majority of the Independent Directors, subject to the limitations contained in the Articles of Incorporation, and shall
not be deemed to be services pursuant to the terms of this Agreement.


 


13.         
REIMBURSEMENT TO THE ADVISOR.    The Company shall not reimburse the Advisor at the end of any fiscal quarter
in which Total Operating Expenses incurred by the Advisor for the four (4) consecutive fiscal quarters then ended (the “Expense
Year”) exceed (the “Excess Amount”) the greater of two percent (2%) of Average Invested Assets or
twenty-five percent (25%) of Net Income (the “2%/25% Guidelines”) for such year.  Any Excess Amount
paid to the Advisor during a fiscal quarter shall be repaid to the Company or, at the option of the Company, subtracted from the
Total Operating Expenses reimbursed during the subsequent fiscal quarter.  If there is an Excess Amount in any Expense
Year and the Independent Directors determine that such excess was justified based on unusual and nonrecurring factors which they
deem sufficient, then the Excess Amount may be carried over and included in Total Operating Expenses in subsequent Expense Years
and reimbursed to the Advisor in one or more of such years, provided that there shall be sent to the Stockholders a written disclosure
of such fact, together with an explanation of the factors the Independent Directors considered in determining that such excess
expenses were justified.  Such determination shall be reflected in the minutes of the meetings of the Board.  All
figures used in the foregoing computation shall be determined in accordance with GAAP applied on a consistent basis.


 


 



    	12



    	 



    

 








14.         
OTHER ACTIVITIES OF THE ADVISOR.   Except as set forth in this Section 14 , nothing herein contained shall
prevent the Advisor or any of its Affiliates from engaging in or earning fees from other activities, including the rendering of
advice to other Persons (including other REITs) and the management of other programs advised, sponsored or organized by the Sponsor
or its Affiliates; nor shall this Agreement limit or restrict the right of any director, officer, member, partner, employee or
stockholder of the Advisor or any of its Affiliates to engage in or earn fees from any other business or to render services of
any kind to any other Person and earn fees for rendering such services; provided, however , that the Advisor must devote
sufficient resources to the Company’s business to discharge its obligations to the Company under this Agreement.  The
Advisor may, with respect to any investment in which the Company is a participant, also render advice and service to each and every
other participant therein, and earn fees for rendering such advice and service.  Specifically, it is contemplated that
the Company may enter into Joint Ventures or other similar co-investment arrangements with certain Persons, and pursuant to the
agreements governing such Joint Ventures or arrangements, the Advisor may be engaged to provide advice and service to such Persons,
in which case the Advisor will earn fees for rendering such advice and service.


 


The Advisor shall report to the Board the
existence of any condition or circumstance, existing or anticipated, of which it has knowledge, which creates or could create a
conflict of interest between the Advisor’s obligations to the Company and its obligations to or its interest in any other
Person.  If the Advisor, Director or Affiliates thereof have sponsored other investment programs with similar investment
objectives which have investment funds available at the same time as the Company, the Advisor shall inform the Board of the method
to be applied by the Advisor in allocating investment opportunities among the Company and competing investment entities and shall
provide regular updates to the Board of the investment opportunities provided by the Advisor to competing programs in order for
the Board (including the Independent Directors) to fulfill its duty to ensure that the Advisor and its Affiliates use their reasonable
best efforts to apply such method fairly to the Company. 





 


15.         
THE AMERICAN REALTY CAPITAL NAME.   The Advisor and its Affiliates have or may have a proprietary interest in the
names “American Realty Capital,” “ARC” and “AR Capital.”  The Advisor hereby grants
to the Company, to the extent of any proprietary interest the Advisor may have in any of the names “American Realty Capital,”
“ARC” and “AR Capital,” a non-transferable, non-assignable, non-exclusive, royalty-free right and license
to use the names “American Realty Capital,” “ARC” and “AR Capital” during the term of this
Agreement. The Company agrees that the Advisor and its Affiliates will have the right to approve of any use by the Company of the
names “American Realty Capital,” “ARC” and “AR Capital,” such approval not to be unreasonably
withheld or delayed. Accordingly, and in recognition of this right, if at any time the Company ceases to retain the Advisor or
one of its Affiliates to perform advisory services for the Company, the Company will, promptly after receipt of written request
from the Advisor, cease to conduct business under or use the names “American Realty Capital,” “ARC” and
“AR Capital” or any derivative thereof and the Company shall change its name and the names of any of its subsidiaries
to a name that does not contain the names “American Realty Capital,” “ARC” and “AR Capital”
or any other word or words that might, in the reasonable discretion of the Advisor, be susceptible of indication of some form of
relationship between the Company and the Advisor or any its Affiliates. At such time, the Company will also make any changes to
any trademarks, servicemarks or other marks necessary to remove any references to the words “American Realty Capital,”
“ARC” and “AR Capital.” Consistent with the foregoing, it is specifically recognized that the Advisor or
one or more of its Affiliates has in the past and may in the future organize, sponsor or otherwise permit to exist other investment
vehicles (including vehicles for investment in real estate) and financial and service organizations having any of the names “American
Realty Capital,” “ARC” and “AR Capital” as a part of their name, all without the need for any consent
(and without the right to object thereto) by the Company.  Neither the Advisor nor any of its Affiliates makes any representation
or warranty, express or implied, with respect to the names “American Realty Capital,” “ARC” and “AR
Capital” licensed hereunder or the use thereof (including without limitation as to whether the use of the names “American
Realty Capital,” “ARC” and “AR Capital” will be free from infringement of the intellectual property
rights of third parties.  Notwithstanding the preceding, the Advisor represents and warrants that it is not aware of
any pending claims or litigation or of any claims threatened in writing regarding the use or ownership of the names “American
Realty Capital,” “ARC” and “AR Capital.”


   



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16.         
TERM OF AGREEMENT.   This Agreement shall continue in force for a period of one year from the date hereof.  Thereafter,
the term may be renewed for an unlimited number of successive one-year terms upon mutual consent of the parties.


 


17.         
TERMINATION BY THE PARTIES.   This Agreement may be terminated upon sixty (60) days’ written notice (a)
by the Independent Directors of the Company or the Advisor, without Cause and without penalty, (b) by the Advisor for Good Reason,
or (c) by the Advisor upon a Change of Control.  The provisions of Sections 19 through 31 of this
Agreement shall survive termination of this Agreement. 


 


18.         
ASSIGNMENT TO AN AFFILIATE.   This Agreement may be assigned by the Advisor to an Affiliate with the approval of
a majority of the Directors (including a majority of the Independent Directors).  The Advisor may assign any rights to
receive fees or other payments under this Agreement to any Person without obtaining the approval of the Directors.  This
Agreement shall not be assigned by the Company or the Operating Partnership without the consent of the Advisor, except in the case
of an assignment by the Company or the Operating Partnership to a Person which is a successor to all the assets, rights and obligations
of the Company or the Operating Partnership, in which case such successor Person shall be bound hereunder and by the terms of said
assignment in the same manner as the Company or the Operating Partnership, as applicable, is bound by this Agreement.


 


19.         
PAYMENTS TO AND DUTIES OF ADVISOR UPON TERMINATION.


 


(a)            
Amounts Owed .  After the Termination Date, the Advisor shall be entitled to receive from the Company
or the Operating Partnership within thirty (30) days after the effective date of such termination all amounts then accrued
and owing to the Advisor, including all its interest in the Company’s income, losses, distributions and capital by payment
of an amount equal to the then-present fair market value of the Advisor’s interest, subject to the 2%/25% Guidelines to the
extent applicable.





 


(b)           
Advisor’s Duties.  The Advisor shall promptly upon termination of this Agreement:


 


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


 


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


 


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


 



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


 


20.         INCORPORATION
OF THE ARTICLES OF INCORPORATION AND THE OPERATING PARTNERSHIP AGREEMENT.  To the extent that the Articles of Incorporation
or the Operating Partnership Agreement impose obligations or restrictions on the Advisor or grant the Advisor certain rights which
are not set forth in this Agreement, the Advisor shall abide by such obligations or restrictions and such rights shall inure to
the benefit of the Advisor with the same force and effect as if they were set forth herein.


 


21.         
INDEMNIFICATION BY THE COMPANY AND THE OPERATING PARTNERSHIP. 


 


(a)           The
Company and the Operating Partnership shall indemnify and hold harmless the Advisor and its Affiliates, as well as their respective
officers, directors, equity holders, members, partners, stockholders, other equity holders and employees (collectively, the “
Indemnitees ,” and each, an “ Indemnitee ”), from all liability, claims, damages or losses arising
in the performance of their duties hereunder, and related expenses, including reasonable attorneys’ fees, to the extent such
liability, claims, damages or losses and related expenses are not fully reimbursed by insurance, and to the extent that such indemnification
would not be inconsistent with the laws of the State of New York, the Articles of Incorporation or the provisions of Section II.G
of the NASAA REIT Guidelines.  Notwithstanding the foregoing, the Company and the Operating Partnership shall not provide
for indemnification of an Indemnitee for any loss or liability suffered by such Indemnitee, nor shall they provide that an Indemnitee
be held harmless for any loss or liability suffered by the Company and the Operating Partnership, unless all the following conditions
are met:


 


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


 


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


 


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


 


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


 


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





 


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


 


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


 


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


 



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


 


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


 


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


 


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


 


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


 


23.         
NOTICES.   Any notice, report or other communication (each a “ Notice ”) required or permitted
to be given hereunder shall be in writing unless some other method of giving such Notice is required by the Articles of Incorporation,
the By-laws, and shall be given by being delivered by hand, by courier or overnight carrier or by registered or certified mail
to the addresses set forth below: 


 


	To the Company:	 	American Realty Capital Trust III, Inc.
	 	 	405 Park Avenue
	 	 	New York, New York 10022
	 	 	Attention:  Nicholas S. Schorsch,
	 	 	                   Chief Executive Officer
	 	 	 
	 	 	with a copy to:
	 	 	 
	 	 	Proskauer Rose LLP
	 	 	Eleven Times Square
	 	 	New York, New York 10036
	 	 	Attention:  Peter M. Fass, Esq.


  


	To the Operating Partnership:	 	American Realty Capital Operating Partnership III, L.P.
	 	 	405 Park Avenue
	 	 	New York, New York 10022
	 	 	Attention:  Nicholas S. Schorsch
	 	 	 
	 	 	with a copy to:
	 	 	 
	 	 	Proskauer Rose LLP
	 	 	Eleven Times Square
	 	 	New York, New York 10036
	 	 	Attention:  Peter M. Fass, Esq.
	 	 	 


 


 



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	To the Advisor:	 	American Realty Capital Advisors III, LLC
	 	 	405 Park Avenue
	 	 	New York, New York 10022
	 	 	Attention:  Nicholas S. Schorsch
	 	 	 
	 	 	with a copy to:
	 	 	 
	 	 	Proskauer Rose LLP
	 	 	Eleven Times Square
	 	 	New York, New York 10036
	 	 	Attention:  Peter M. Fass, Esq.
	 	 	 


 


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


 


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


 


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


 


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


 


27.         
ENTIRE AGREEMENT.   This Agreement contains the entire agreement and understanding among the parties hereto with
respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements, understandings, inducements and
conditions, express or implied, oral or written, of any nature whatsoever with respect to the subject matter hereof.  The
express terms hereof control and supersede any course of performance or usage of the trade inconsistent with any of the terms hereof.
 


 


28.         
NO WAIVER.   Neither the failure nor any delay on the part of a party to exercise any right, remedy, power or privilege
under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or
privilege preclude any other or further exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver
of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or
privilege with respect to any other occurrence.  No waiver shall be effective unless it is in writing and is signed by
the party asserted to have granted such waiver.





 


29.         PRONOUNS
AND PLURALS.   Whenever the context may require, any pronoun used in this Agreement shall include the corresponding
masculine, feminine or neuter forms, and the singular form of nouns, pronouns and verbs shall include the plural and vice versa.


 


30.         
HEADINGS.   The titles of sections and subsections contained in this Agreement are for convenience only, and they
neither form a part of this Agreement nor are they to be used in the construction or interpretation hereof.


 


31.         
EXECUTION IN COUNTERPARTS.   This Agreement may be executed (including by facsimile transmission) with counterpart
signature pages or in any number of counterparts, each of which shall be deemed to be an original as against any party whose signature
appears thereon, and all of which shall together constitute one and the same instrument.


 



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


 


	 	AMERICAN REALTY CAPITAL TRUST III, INC.
	 	 	 	 
	 	By:	/s/ Nicholas S. Schorsch	 
	 	 	Name: Nicholas S. Schorsch	 
	 	 	Title: Chief Executive Officer	 
	 	 	 	 
	 	AMERICAN REALTY CAPITAL OPERATING PARTNERSHIP III, L.P.
	 	 	 	 
	 	By: 	American Realty Capital Trust III, Inc.	 
	 	 	 	 
	 	 	its General Partner	 
	 	 	 	 
	 	By:	/s/ Nicholas S. Schorsch	 
	 	 	Name: Nicholas S. Schorsch	 
	 	 	Title: Chief Executive Officer	 
	 	 	 	 
	 	AMERICAN REALTY CAPITAL ADVISORS III, LLC
	 	 	 	 
	 	By: 	American Realty Capital Trust III Special Limited Partner, LLC
	 	 	 	 
	 	 	its Member	 
	 	 	 	 
	 	By: 	AR Capital, LLC	 
	 	 	 	 
	 	 	its Managing Member	 
	 	 	 	 
	 	By:	/s/ Nicholas S. Schorsch	 
	 	 	Name: Nicholas S. Schorsch	 
	 	 	Title: Authorized Signatory	 


 


 






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