EMPLOYEE AND DIRECTOR


 


INCENTIVE RESTRICTED SHARE PLAN


 


OF


 


AMERICAN REALTY CAPITAL DAILY NET ASSET VALUE
TRUST, INC.


 


SECTION 1.   PURPOSES OF THE PLAN AND DEFINITIONS


 


1.1  Purposes .  The
purposes of the Employee and Director Incentive Restricted Share Plan (this “Plan”) of American
Realty Capital Daily Net Asset Value Trust, Inc. (the “Company”) are to:


 


(1)   provide incentives to
individuals chosen to receive share-based awards because of their ability to improve operations and increase profits;


 


(2)   encourage selected persons
to accept positions with or continue to provide services to the Company, the Advisor and Affiliates of the Company; and


 


(3)   increase the interest
of Directors in the Company’s welfare through their participation in the growth in value of the Company’s Shares.


 


To accomplish these purposes, this Plan provides
a means whereby employees of the Advisor and Affiliates of the Company, officers of the Company, the Advisor and Affiliates of
the Company, Directors and other enumerated persons may receive Awards.


 


1.2    Definitions .  For
purposes of this Plan, the following terms have the following meanings:


 


“Advisor” means the
Person or Persons, if any, appointed, employed or contracted with by the Company to be responsible for directing or performing
the day-to-day business affairs of the Company, including any Person to whom the Advisor subcontracts substantially all such functions.  The
initial Advisor is American Realty Capital Advisors II, LLC.


 


“Affiliate” means any
Person (other than an Advisor), whose employees, directors or officers are eligible to receive Awards under this Plan.  The
determination of whether a Person is an Affiliate shall be made by the Board acting in its sole and absolute discretion.


 


“Applicable Laws” means
the requirements relating to the administration of Awards under state corporation laws, U.S. federal and state securities laws,
the Code, any stock exchange or quotation system on which the Shares are listed or quoted and the applicable laws of any foreign
country or jurisdiction where Awards are, or will be, granted under this Plan.


 


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


 


“Award” means any award
of Restricted Shares under this Plan.


 



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“Award Agreement” means,
with respect to each Award, the written agreement executed by the Company and the Participant or other written document approved
by the Board setting forth the terms and conditions of the Award.


 


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


 


“Code” means the Internal
Revenue Code of 1986, as amended from time to time.


 


 “Committee”
means the Board or a duly appointed committee of the Board to which the Board has delegated its powers and functions hereunder.


 


“Company” means American
Realty Capital Daily Net Asset Value Trust, Inc.


 


“Director” means a
person elected or appointed and serving as a member of the Board in accordance with the Articles of Incorporation and the Maryland
General Corporation Law.


 


“Director Shares” means
Shares issued under Section 6.


 


“Effective Date” has
the meaning given it in Section 15.


 


“Employment Termination”
means that a Participant has ceased, for any reason and with or without cause, to be an employee or Director of, or a consultant
to, the Company, the Advisor or any Affiliate of the Company.  However, the term “Employment Termination”
shall not include a transfer of a Participant from the Company to the Advisor or any Affiliate of the Company or the Advisor or
vice versa, or from any such Affiliate to another, or a leave of absence duly authorized by the Company
unless the Board has provided otherwise.


 


“Exchange Act” means
the Securities Exchange Act of 1934, as amended from time to time.


 


“Fair Market Value”
means with respect to Shares:


 


(i)   If the Shares are listed on any
established stock exchange or a national market system, their Fair Market Value shall be the closing sales price for the Shares,
or the mean between the high bid and low asked prices if no sales were reported, as quoted on such system or exchange (or, if the
Shares are listed on more than one exchange, then on the largest such exchange) for the date the value is to be determined (or
if there are no sales or bids for such date, then for the last preceding business day on which there were sales or bids), as reported
in The Wall Street Journal .


 


(ii)   If the Shares are regularly
quoted by a recognized securities dealer but selling prices are not reported, or if there is no secondary trading market for the
Shares, their Fair Market Value shall be determined in good faith by the Board.


 


“Grant Date” has the
meaning set forth in Section 5.1(c) .


 


“Non-Employee Director”
means a person who is a Director of the Company, but who is not also an employee or officer of the Company or the Advisor.


 


“Participant” means
an eligible person who is granted an Award.


 


“Person” means an individual,
a corporation, partnership, trust, association, or any other entity.


 


“Plan” means this Employee
and Director Incentive Restricted Share Plan.


 


“Restricted Shares”
means an Award granted under Section 5.2 .


 



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“Retainer” has the
meaning given it in Section 6.3 .


 


“Rule 16b-3” means
Rule 16b-3 adopted under Section 16(b) or any successor rule, as it may be amended from time to time, and references to paragraphs
or clauses of Rule 16b-3 refer to the corresponding paragraphs or clauses of Rule 16b-3 as it exists at the Effective Date or the
comparable paragraph or clause of Rule 16b-3 or successor rule, as that paragraph or clause may thereafter be amended.


 


“Section 16(b)” means
Section 16(b) of the Exchange Act.


 


“Section 409A
of the Code” means the nonqualified deferred compensation rules under Section 409A of the Code and any applicable
Treasury regulation or other official guidance promulgated thereunder.


 


“Securities Act” means
the Securities Act of 1933, as amended from time to time.


 


“Shares” means common
shares of capital stock of the Company, $0.01 par value per share.


 


SECTION 2.   ELIGIBLE PERSONS


 


Every person who, at or as of the Grant Date,
is:


 


(a)   a full-time employee of the Advisor,
the Company or any Affiliate of the Company;


 


(b)   an officer of the Company, the
Advisor or any Affiliate of the Company;


 


(c)   a Director of the Company;


 


(d)   a director of the Advisor or
any Affiliate of the Company; or


 


(e)   someone whom the Board designates
as eligible for an Award because the person:


 


(i)   performs bona fide consulting
or advisory services for the Company, the Advisor or any Affiliate of the Company pursuant to a written agreement (other than services
in connection with the offer or sale of securities in a capital-raising transaction), and


 


(ii)   has a direct and significant
effect on the financial development of the Company or any Affiliate of the Company,


 


shall be eligible to receive Awards hereunder.


 


Directors of the Company who are not full-time employees are only
eligible to receive Director Shares under Section 6 .


 


SECTION 3.   SHARES SUBJECT TO THIS PLAN


 


The total number of Shares that may be issued
under Awards shall not exceed 5.0% of the Company’s outstanding Shares on a fully diluted basis at any time and
in any event will not, exceed 7,500,00 Shares.  The number of Shares reserved for issuance under this Plan is subject
to adjustment in accordance with the provisions for adjustment in Section 5.1 .  If any Shares awarded under this
Plan are forfeited for any reason, the number of forfeited Shares shall again be available for purposes of granting Awards under
this Plan.


 



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SECTION 4.  ADMINISTRATION


 


4.1  Administration.  This
Plan shall be administered by the Committee.


 


4.2  Committee’s Powers.  Subject
to the express provisions of this Plan, the Committee shall have the authority, in its sole discretion:


 


(a)   to adopt, amend and rescind administrative
and interpretive rules and regulations relating to this Plan;


 


(b)   to determine the eligible persons
to whom, and the time or times at which, Awards shall be granted;


 


(c)   to determine the number of Shares
that shall be the subject of each Award;


 


(d)   to determine the terms and provisions
of each Award (which need not be identical) and any amendments thereto, including provisions defining or otherwise relating to:


 


(i)   the extent to which the transferability
of Shares issued or transferred pursuant to any Award is restricted;


 


(ii)   the effect of Employment Termination
on an Award;


 


(iii)   the effect of approved leaves
of absence; and


 


(iv)   to construe the respective Award
Agreements and this Plan.


 


   (e)   to make determinations
of the Fair Market Value of Shares;


 


   (f)   to waive any provision,
condition or limitation set forth in an Award Agreement;


 


   (g)   to delegate its
duties under this Plan to such agents as it may appoint from time to time; and


 


   (h)   to make all other
determinations, perform all other acts and exercise all other powers and authority necessary or advisable for administering this
Plan, including the delegation of those ministerial acts and responsibilities as the Committee deems appropriate.


 


The Committee may correct any defect, supply
any omission or reconcile any inconsistency in this Plan, in any Award or in any Award Agreement in the manner and to the extent
it deems necessary or desirable to implement this Plan, and the Committee shall be the sole and final judge of that necessity or
desirability.  The determinations of the Committee on the matters referred to in this Section 4.2 shall be final
and conclusive.  Notwithstanding any provision in this Plan to the contrary, Awards will be made to Non-Employee Directors
only under Section 6 of this Plan.  In addition, except as provided in Section 5.1(b) herein, the Committee
may not in any manner exercise discretion under this Plan with respect to any Awards made to Non-Employee Directors.


 


4.3  Term of Plan.  No
Awards shall be granted under this Plan after 10 years from the Effective Date of this Plan.


 



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SECTION 5.   CERTAIN TERMS AND CONDITIONS OF AWARDS


 


5.1  All Awards.  All
Awards shall be subject to the following terms and conditions:


  


(a)   Changes in Capital Structure.  If
the number of outstanding Shares is increased by means of a share dividend payable in Shares, a share split or other subdivision
or by a reclassification of Shares, then, from and after the record date for such dividend, subdivision or reclassification, the
number and class of Shares subject to this Plan shall be increased in proportion to such increase in outstanding Shares.  If
the number of outstanding Shares is decreased by means of a reverse share split or other combination or by a reclassification of
Shares, then, from and after the record date for such combination or reclassification, the number and class of Shares subject
to this Plan shall be decreased in proportion to such decrease in outstanding Shares.


 


(b)   Certain Corporate Transactions
   In the event of any change in the capital structure or business of the Company by reason of any recapitalization,
reorganization, merger, consolidation, split-up, subdivision, combination, exchange of Shares or any similar change affecting the
Company’s capital structure or business, then the aggregate number and kind of Shares which thereafter may be issued under
this Plan shall be appropriately adjusted consistent with such change in such manner as the Committee or the Board may deem equitable
to prevent substantial dilution or enlargement of the rights granted to, or available for, Participants under this Plan, and any
such adjustment determined by the Committee or the Board in good faith shall be binding and conclusive on the Company and all Participants
and employees and their respective heirs, executors, administrators, successors and assigns.


 


(c)   Grant Date.  Each
Award Agreement shall specify the date as of which it shall be effective (the “Grant Date”).


 


(d)   Vesting.  Each
Award shall vest, and any restrictions thereunder shall lapse, as the case may be, at such times and in such amounts as may be
specified by the Committee in the applicable Award Agreement.


 


(e)   Nonassignability of Rights.  Awards
shall not be transferable other than with the consent of the Committee or the Board or by will or the laws of descent and distribution.


 


(f)   Termination of Employment
from the Company, the Advisor or any Affiliate of the Company.  The Committee shall establish, in respect of each
Award when granted, the effect of an Employment Termination on the rights and benefits thereunder and in so doing may, but need
not, make distinctions based upon the cause of termination (such as retirement, death, disability or other factors) or which party
effected the termination (the employer or the employee).


 


(g)   Minimum Purchase Price.  Notwithstanding
any provision of this Plan to the contrary, if authorized but previously unissued Shares are issued under this Plan, such Shares
shall not be issued for a consideration which is less than as permitted under Applicable Law, and in no event, shall such consideration
be less than the par value per Share multiplied by the number of Shares to be issued.


 


(h)   Other Provisions.  Each
Award Agreement may contain such other terms, provisions and conditions not inconsistent with this Plan, as may be determined by
the Committee.


 


5.2  Restricted Shares.  Restricted
Shares shall be subject to the following terms and conditions:


 


(a)   Grant.  The
Committee may grant one or more Awards of Restricted Shares to any Participant other than Non-Employee Directors.  Each
Award of Restricted Shares shall specify the number of Shares to be issued to the Participant, the date of issuance and the restrictions
imposed on the Shares including the conditions of release or lapse of such restrictions.  Upon the issuance of Restricted
Shares, the Participant may be required to furnish such additional documentation or other assurances as the Committee may require
to enforce restrictions applicable thereto.


 


(b)   Restrictions.  Except
as specifically provided elsewhere in this Plan or the Award Agreement regarding Restricted Shares, Restricted Shares may not
be sold, assigned, transferred, pledged or otherwise disposed of or encumbered, either voluntarily or involuntarily, until the
restrictions have lapsed and the rights to the Shares have vested.  The Committee may in its sole discretion provide
for the lapse of such restrictions in installments and may accelerate or waive such restrictions, in whole or in part, based on
service, performance or such other factors or criteria as the Committee may determine.







 



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(c)   Dividends.  Unless
otherwise determined by the Committee, cash dividends with respect to Restricted Shares shall be paid to the recipient of the Award
of Restricted Shares on the normal dividend payment dates, and dividends payable in Shares shall be paid in the form of Restricted
Shares having the same terms as the Restricted Shares upon which such dividend is paid.  Each Award Agreement for Awards
of Restricted Shares shall specify whether and, if so, the extent to which the Participant shall be obligated to return to the
Company any cash dividends paid with respect to any Restricted Shares which are subsequently forfeited.


 


(d)   Forfeiture of Restricted Shares.  Except
to the extent otherwise provided in the applicable Award Agreement, when a Participant’s Employment Termination occurs, the
Participant shall automatically forfeit all Restricted Shares still subject to restriction.


 


SECTION 6.   DIRECTOR SHARES


 


6.1 Automatic Grant.   Non-Employee
Directors shall receive 3,000 Restricted Shares on the date of each annual stockholders’ meeting.


 


6.2 Vesting.   Notwithstanding the
provisions of Section 5.1(d), Awards of Restricted Shares made to Non-Employee Directors shall vest over a five-year
period following the first anniversary of the Grant Date in increments of 20% per annum.


 


6.3  Election.  The
Company shall pay to each individual who is a Non-Employee Director an annual fee in the amount set from time to time by the Board
(the “Retainer”).  Each Non-Employee Director shall be entitled to receive his or her Retainer
exclusively in cash, exclusively in unrestricted Shares (“Director Shares”) or any portion in cash and
Director Shares.  Following the approval of this Plan by the stockholders of the Company, each Non-Employee Director
shall be given the opportunity, during the month in which the Non-Employee Director first becomes a Non-Employee Director, and
during each December thereafter, to elect among these choices for the balance of the calendar year (in the case of the election
made during the month the Non-Employee Director first becomes a Non-Employee Director) and for the ensuing calendar year (in the
case of a subsequent election made during any December).  If the Non-Employee Director chooses to receive at least some
of his or her Retainer in Director Shares, the election shall also indicate the percentage of the Retainer to be paid in Director
Shares.  If a Non-Employee Director makes no election during his or her first opportunity to make an election, the Non-Employee
Director shall be assumed to have elected to receive his or her entire Retainer in cash.


 


6.4  Issuance.  The
Company shall make the first issuance of Director Shares to electing Directors on the first business day following the last day
of the full calendar quarter following the approval of this Plan by the Company’s stockholders.  Subsequent issuances
of Director Shares shall be made on the first business day of each subsequent calendar quarter and shall be made to all persons
who are Non-Employee Directors on that day except any Non-Employee Director whose Retainer is to be paid entirely in cash.  The
number of Shares issuable to those Non-Employee Directors on the relevant date indicated above shall equal:


 


(% x R/4)/P, where:


 


% = the percentage of the Non-Employee Director’s
Retainer that the Non-Employee Director elected or is deemed to have elected to receive in the form of Director Shares, expressed
as a decimal;


 


R = the Non-Employee Director’s Retainer
for the year during which the issuance occurs; and


 


P = the Fair Market Value.


 


Director Shares shall not include any fractional Shares.  Fractions
shall be rounded to the nearest whole Share (with one-half being rounded upward).


 



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SECTION 7.   SECURITIES LAWS


 


Nothing in this Plan or in any Award or Award
Agreement shall require the Company to issue any Shares with respect to any Award if, in the opinion of counsel for the Company,
that issuance could constitute a violation of any Applicable Laws.  As a condition to the grant of any Award, the Company
may require the Participant (or, in the event of the Participant’s death, the Participant’s legal representatives,
heirs, legatees or distributees) to provide written representations concerning the Participant’s (or such other person’s)
intentions with regard to the retention or disposition of the Shares covered by the Award and written covenants as to the manner
of disposal of such Shares as may be necessary or useful to ensure that the grant or disposition thereof will not violate the Securities
Act, any other law or any rule of any applicable securities exchange or securities association then in effect.  The Company
shall not be required to register any Shares under the Securities Act or register or qualify any Shares under any state or other
securities laws.


 


SECTION 8.   EMPLOYMENT OR OTHER RELATIONSHIP


 


Nothing in this Plan or any Award shall in any
way interfere with or limit the right of the Company, the Advisor or any Affiliate of the Company to terminate any Participant’s
employment or status as a consultant or Director at any time, nor confer upon any Participant any right to continue in the employ
of, or as a Director or consultant of, the Company, the Advisor or any Affiliate of the Company.


 


SECTION 9.   AMENDMENT, SUSPENSION AND TERMINATION
OF THIS PLAN


 


The Board may at any time amend, suspend or discontinue
this Plan, provided that such amendment, suspension or discontinuance meets the requirements of Applicable Laws, including without
limitation, any applicable requirements for stockholder approval.  Notwithstanding the above, an amendment, suspension
or discontinuation shall not be made if it would impair the rights of any Participant under any Award previously granted, without
the Participant’s consent, except to conform this Plan and Awards granted to the requirements of Applicable Laws.  The
provisions of this Plan relating to Awards for Non-Employee Directors may not be amended more than once each six months.  Notwithstanding
any provision of the Plan to the contrary, if the Board determines that any Award may be subject to Section 409A of the
Code, the Board may adopt such amendment to the Plan and the applicable Award Agreement or adopt other policies and procedures
(including amendments, policies and procedures with retroactive effect), or take any other actions that the Board determines are
necessary or appropriate, without the consent of the Participant, to (a) exempt the Award from Section 409A of the Code
and/or preserve the intended tax treatment of the benefits provided with respect to the Award, or (b) comply with the requirements
of Section 409A of the Code.


 


SECTION 10.   LIABILITY AND INDEMNIFICATION OF THE
BOARD


 


No person constituting, or member of the group
constituting, the Board shall be liable for any act or omission on such person’s part, including but not limited to the exercise
of any power or discretion given to such member under this Plan, except for those acts or omissions resulting from such member’s
gross negligence or willful misconduct.  The Company shall indemnify each present and future person constituting, or
member of the group constituting, the Board against, and each person or member of the group constituting the Board shall be entitled
without further act on his or her part to indemnity from the Company for, all expenses (including the amount of judgments and the
amount of approved settlements made with a view to the curtailment of costs of litigation) reasonably incurred by such person in
connection with or arising out of any action, suit or proceeding to the fullest extent permitted by law and by the Articles of
Incorporation and Bylaws of the Company.


  


SECTION 11.   SEVERABILITY


 


If any provision of this Plan is held to be illegal
or invalid for any reason, that illegality or invalidity shall not affect the remaining portions of this Plan, but such provision
shall be fully severable and this Plan shall be construed and enforced as if the illegal or invalid provision had never been included
in this Plan.  Such an illegal or invalid provision shall be replaced by a revised provision that most nearly comports
to the substance of the illegal or invalid provision.  If any of the terms or provisions of this Plan or any Award Agreement
conflict with the requirements of Applicable Laws, those conflicting terms or provisions shall be deemed inoperative to the extent
they conflict with Applicable Law.


 



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SECTION 12.   SECTION 409A OF THE CODE


 


Awards granted under the Plan are intended to
be exempt from Section 409A of the Code.  To the extent that the Plan is not exempt from the requirements of Section
409A of the Code, the Plan is intended to comply with the requirements of Section 409A of the Code and shall be limited, construed
and interpreted in accordance with such intent.  Notwithstanding the foregoing, in no event whatsoever shall the Company
be liable for any additional tax, interest or penalty that may be imposed on a Participant by Section 409A of the Code or any damages
for failing to comply with Section 409A of the Code.


 


SECTION 13.   WITHHOLDING


 


The Company shall have the right to deduct from
any payment to be made to a Participant, or to otherwise require, prior to the issuance or delivery of any Shares or the payment
of any cash hereunder, payment by the Participant of, any federal, state or local taxes required by law to be withheld.  Upon
the vesting of Restricted Shares, or upon making an election under Section 83(b) of the Code, a Participant shall pay all required
withholding to the Company.  The Board may permit any such statutory withholding obligation with regard to any Participant
to be satisfied by reducing the number of Shares otherwise deliverable or by delivering Shares already owned.


 


SECTION 14.   GOVERNING LAW


 


This Plan shall be governed and construed in
accordance with the laws of the State of Maryland (regardless of the law that might otherwise govern under applicable principles
of conflict of laws).


 


SECTION 15.   EFFECTIVE DATE AND PROCEDURAL HISTORY


 


This Plan was originally approved by the Company’s
Board on August 15, 2011 (the “ Effective Date ”).  It was approved in that form by the holders
of the Company’s voting Shares on June 14, 2011.


 



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