Document:

Exhibit 10.5

  

GLOBAL NET LEASE, INC.

 

2015 ADVISOR MULTI-YEAR OUTPERFORMANCE
AGREEMENT

 

This 2015 ADVISOR MULTI-YEAR
OUTPERFORMANCE AGREEMENT (this “Agreement”) made as of June 2, 2015 (the “Grant Date”), by
and among GLOBAL NET LEASE INC., a Maryland corporation (the “Company”), its subsidiary Global
Net Lease Operating Partnership, L.P., a Delaware limited partnership and the entity through which the Company conducts
substantially all of its operations (the “Partnership”), and Global
Net Lease Advisors, LLC, a Delaware limited liability company, the Company’s manager (the “Advisor”).

 

RECITALS

 

The Advisor provides
services to the Company pursuant to the Amended and Restated Advisory Agreement by and among the Company, the Partnership and the
Advisor, dated as of November 7, 2012, as amended from time to time.

 

The Board of Directors
of the Company (the “Board”), or a committee of the Board designated by the Board, approved this Agreement to
provide the Advisor with the incentive compensation described in this Agreement (the “Award”) and thereby provide
additional incentive for the Advisor to promote the progress and success of the business of the Company and its affiliates, including
the Partnership. This Agreement evidences the Award and is subject to the terms and conditions set forth herein and in the Partnership
Agreement (as defined herein).

 

NOW, THEREFORE, the
Company, the Partnership and the Advisor agree as follows:

 

1.          Administration. The Award granted under
this Agreement shall be administered by a Committee appointed by the Board from time to time to administer the Plan (the “Committee”);
provided that all powers of the Committee hereunder can be exercised by the full Board if the Board so elects. To the extent
that no Committee exists that has the authority to administer this Agreement, the functions of the Committee shall be exercised
by the Board and the Board shall be considered the “Committee” hereunder. The Committee shall have the discretionary
authority to make all determinations regarding the Award, including, without limitation, the interpretation and construction of
the Award and the determination of relevant facts; provided such determinations are made in good faith and are consistent with
the purpose and intent of the Award. Except as expressly provided herein, no such action by the Committee shall adversely affect
the rights of the Advisor to any earned and outstanding Award LTIP Units (as defined below). Subject to the terms hereof, all decisions
made by the Committee shall be final, conclusive and binding on all persons, including the Company, the Partnership and the Advisor.
No member of the Committee, nor any other member of the Board or any officer or employee of the Company acting on behalf of the
Committee, shall be personally liable for any action, determination or interpretation taken or made in good faith with respect
to the Award, and all members of the Committee and each other member of the Board and any officer or employee of the Company acting
on their behalf shall, to the extent permitted by law, be fully indemnified and protected by the Company in respect of any such
action, determination or interpretation.

 

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2.           Definitions.
The definitions for certain terms used herein are set forth in Exhibit A.

 

3.           Outperformance
Award.

 

a.           On
the Grant Date the Advisor was granted the Award, consisting of 9,041,801 LTIP Units (the “Award LTIP Units”),
which will be subject to forfeiture and vesting to the extent provided in this Section 3 and Section 4 hereof.

 

b.           As
soon as practicable following each Valuation Date, but as of such Valuation Date, the Committee will determine the applicable Annual
Amount and divide the resulting dollar amount by the Common Stock Price calculated as of the applicable Valuation Date (appropriately
adjusted to the extent that the Conversion Factor is greater or less than 1.0); the resulting number of unit equivalents determined
for each Valuation Date referred to herein as the “Annual OPP Unit Equivalent”.

 

c.           As
soon as practicable following the Second Valuation Date, but as of the Second Valuation Date, the Committee will determine the
Interim Amount and divide the resulting dollar amount by the Common Stock Price calculated as of the Second Valuation Date (appropriately
adjusted to the extent that the Conversion Factor is greater or less than 1.0); the resulting number of unit equivalents determined
as of the Second Valuation Date referred to herein as the “Interim OPP Unit Equivalent”.

 

d.           As
soon as practicable following the Final Valuation Date, but as of the Final Valuation Date, the Committee will:

 

(i)          determine
the Final Absolute TRS Amount;

 

(ii)          determine
the Final Relative TRS Amount;

 

(iii)          determine
the Total Outperformance Amount; and

 

(iv)          divide
the resulting dollar amounts by the Common Stock Price calculated as of the Final Valuation Date (appropriately adjusted to the
extent that the Conversion Factor is greater or less than 1.0); the resulting number of unit equivalents determined as of the Final
Valuation Date referred to herein as the “Final OPP Unit Equivalent.”

 

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If the Total OPP Unit
Equivalent is smaller than the number of Award LTIP Units previously issued to the Advisor, as of the Final Valuation Date, the
Advisor shall forfeit the number of Award LTIP Units equal to the difference without payment of any consideration by the Partnership
or the Company; thereafter the term Award LTIP Units will refer only to the Award LTIP Units that were not so forfeited and neither
the Advisor nor any of its successors, members or their respective assigns or personal representatives will have any further rights
or interests in the Award LTIP Units that were so forfeited. If the Total OPP Unit Equivalent is greater than the number of Award
LTIP Units previously issued to the Advisor: (A) the Company shall cause the Partnership to issue to the Advisor, as of the
Final Valuation Date, a number of additional LTIP Units equal to the difference; (B) such additional LTIP Units shall be added
to the Award LTIP Units previously issued, if any, and thereby become part of this Award; and (C) the Company and the Partnership
shall take such action as is necessary to accomplish the grant of such additional LTIP Units; provided that such issuance
will be subject to the Advisor executing and delivering such documents, comparable to the documents executed and delivered in connection
with this Agreement, as the Company and/or the Partnership reasonably request in order to comply with all applicable legal requirements,
including, without limitation, federal and state securities laws. If the Total OPP Unit Equivalent is the same as the number of
Award LTIP Units previously issued to the Advisor, then there will be no change to the number of Award LTIP Units under this Award.

 

e.            If
any of the Award LTIP Units have been earned based on performance as provided in Sections 3(b), (c) and (d), subject
to Section 4 hereof, the Award LTIP Units shall become vested in the following amounts and at the following times,
provided that the Continuous Service of the Advisor must continue through the applicable vesting date:

 

(i)          one-third
(1/3) on June 2, 2018;

 

(ii)          one-third
(1/3) on June 2, 2019; and

 

(iii)          one-third
(1/3) on June 2, 2020.

 

f.            Within
thirty (30) days following each vesting date under Section 3(e), the Advisor, in its sole discretion, shall be entitled
to convert such Award LTIP Units that vested on such date into OP Units in accordance with the terms of the Partnership Agreement.

 

g.            Any
Award LTIP Units that do not become vested pursuant to Section 3(e) or Section 4 hereof shall, without
payment of any consideration by the Partnership or the Company automatically and without notice be forfeited and be and become
null and void, and neither the Advisor nor any of its successors, heirs, assigns, members or their respective assigns or personal
representatives will thereafter have any further rights or interests in such forfeited Award LTIP Units.

 

4.           Termination/Change
of Control.

 

a.          In
the event the Company terminates the Advisor’s Continuous Service for any reason prior to the Final Valuation Date, the calculations
provided in Sections 3(b), (c) and (d) hereof shall be performed as of the Valuation Date next following such termination (and
if such Valuation Date is not the Final Valuation Date, on the Final Valuation Date as well) as if the termination of Continuous
Service had not occurred and the Advisor shall be fully (100%) vested in the Total OPP Unit Equivalent as so determined. Within
thirty (30) days of the date such calculations are completed, the Advisor, in its sole discretion, shall be entitled to convert
the Total OPP Unit Equivalent so determined into OP Units or common stock in accordance with the terms of the Partnership Agreement.

 

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b.          In
the event the Company terminates the Advisor’s Continuous Service for any reason after the Final Valuation Date, any then
unvested Award LTIP Units shall be fully (100%) vested and non-forfeitable hereunder. Within thirty (30) days of the date such
termination, the Advisor, in its sole discretion, shall be entitled to convert such Award LTIP Units into OP Units or common stock
in accordance with the terms of the Partnership Agreement.

 

c.          In
the event of a Change in Control prior to the Final Valuation Date, (i) the Advisor shall become fully (100%) vested in any Award
LTIP Units that had been earned but were unvested prior to the Change in Control and within thirty (30) days of the date such Change
in Control, the Advisor, in its sole discretion, shall be entitled to convert such Earned Annual and Interim OPP Units into OP
Units or common stock in accordance with the terms of the Partnership Agreement; and (ii) the calculations provided in Sections
3(b), (c) and (d) hereof shall be performed as of the Valuation Date next following such Change in Control (and if such Valuation
Date is not the Final Valuation Date, on the Final Valuation Date as well) and the Advisor shall be fully (100%) vested in the
Total OPP Unit Equivalent as so determined and within thirty (30) days of the date such calculations are completed, the Advisor,
in its sole discretion, shall be entitled to convert the number of Award LTIP Units so determined into OP Units or common stock
in accordance with the terms of the Partnership Agreement.

 

d.          In
the event of a Change in Control after the Final Valuation Date, , subject to the Continuous Service of the Advisor through the
date of such Change in Control, any then unvested Award LTIP Units shall be fully (100%) vested and non-forfeitable hereunder.
Within thirty (30) days of the date such Change in Control, the Advisor, in its sole discretion, shall be entitled to convert such
Award LTIP Units into OP Units or common stock in accordance with the terms of the Partnership Agreement.

 

5.           Rights
of Advisor. The Advisor shall have no rights with respect to this Agreement (and the Award evidenced hereby) unless the Advisor
shall have accepted this Agreement prior to the close of business on the Effective Date by signing and delivering to the Partnership
a copy of this Agreement. Upon acceptance of this Agreement by the Advisor, the Partnership Agreement shall be amended to reflect
the issuance to the Advisor of the Award LTIP Units so accepted. Thereupon, the Advisor shall have all the rights of a Limited
Partner of the Partnership with respect to the Award LTIP Units, as set forth in the Partnership Agreement, subject, however, to
the restrictions and conditions specified herein. Award LTIP Units constitute and shall be treated for all purposes as the property
of the Advisor, subject to the terms of this Agreement and the Partnership Agreement.

 

6.           Distributions.

 

a.          The
Advisor shall be entitled to receive distributions with respect to the Award LTIP Units to the extent provided for in the Partnership
Agreement.

 

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b.          The
LTIP Unit Distribution Participation Date (as defined in the Partnership Agreement) with respect to any Award LTIP Unit shall be
the date as of which such Award LTIP Unit is earned pursuant to Sections 3(b), (c) and (d), and on such date, the Partnership
will pay the Advisor, for each Award LTIP Unit earned, an amount in cash equal to the difference of (i) the quotient of (A) the
per unit amount of all distributions paid with respect to each OP Unit on or after the Effective Date and before the date on which
such Award LTIP Unit is earned (other than those with respect to which an adjustment was made pursuant to Section 8 hereof)
divided by (B) the Conversion Factor minus (ii) any amounts previously distributed by the Partnership with respect to such Award
LTIP Unit.

 

c.          All
distributions paid with respect to Award LTIP Units shall be fully vested and non-forfeitable when paid, whether or not the underlying
LTIP Units have been earned based on performance or have become vested based on the passage of time as provided in Section 3
or Section 4 hereof.

 

7.           Restrictions
on Transfer. Except as otherwise permitted by the Committee in its sole discretion, none of the Award LTIP Units granted hereunder
nor any of the OP Units of the Partnership into which such Award LTIP Units may be converted (the “Award OP Units”)
shall be sold, assigned, transferred, pledged, hypothecated, given away or in any other manner disposed of, encumbered, whether
voluntarily or by operation of law (each such action a “Transfer”). The transferee in any Transfers of
Award LTIP Units or Award OP Units permitted by the Committee must agree in writing with the Company and the Partnership to be
bound by all the terms and conditions of this Agreement and that subsequent transfers shall be prohibited except those in accordance
with this Section 7. Additionally, all Transfers of Award LTIP Units or Award OP Units must be in compliance with all
applicable securities laws (including, without limitation, the Securities Act) and the applicable terms and conditions of the Partnership
Agreement. In connection with any Transfer of Award LTIP Units or Award OP Units, the Partnership may require the Advisor to provide
an opinion of counsel, satisfactory to the Partnership, that such Transfer is in compliance with all federal and state securities
laws (including, without limitation, the Securities Act). Any attempted Transfer of Award LTIP Units or Award OP Units not in accordance
with the terms and conditions of this Section 7 shall be null and void, and the Partnership shall not reflect on its
records any change in record ownership of any Award LTIP Units or Award OP Units as a result of any such Transfer, shall otherwise
refuse to recognize any such Transfer and shall not in any way give effect to any such Transfer of any Award LTIP Units or Award
OP Units. Except as provided in this Section 7, this Agreement is personal to the Advisor, is non-assignable and is
not transferable in any manner, by operation of law or otherwise.

 

8.           Changes
in Capital Structure. If (i) the Company shall at any time be involved in a merger, consolidation, dissolution, liquidation,
reorganization, exchange of shares, sale of all or substantially all of the assets or stock of the Company or other transaction
similar thereto, (ii) any reorganization, recapitalization, reclassification, stock dividend, stock split, reverse stock split,
significant repurchases of stock, or other similar change in the capital stock of the Company, (iii) any cash dividend or
other distribution to holders of share of Common Stock or OP Units shall be declared and paid other than in the ordinary course,
or (iv) any other extraordinary corporate event shall occur that in each case in the good faith judgment of the Committee
necessitates action by way of equitable or proportionate adjustment in the terms of this Agreement or the Award LTIP Units to avoid
distortion in the value of this Award, the Committee shall make equitable or proportionate adjustment and take such other action
as it deems necessary to maintain the Advisor’s rights hereunder so that they are substantially proportionate to the rights
existing under this Award and the terms of the Award LTIP Units prior to such event, including, without limitation: (A) interpretations
of or modifications to any defined term in this Agreement; (B) adjustments in any calculations provided for in this Agreement,
and (C) substitution of other awards. All adjustments made by the Committee shall be final, binding and conclusive.

 

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9.           Miscellaneous.

 

a.           Amendments.
This Agreement may be amended or modified only with the consent of the Company and the Partnership acting through the Committee;
provided that any such amendment or modification that adversely affects the rights of the Advisor hereunder must be consented
to by the Advisor to be effective as against it. Notwithstanding the foregoing, this Agreement may be amended in writing signed
only by the Company and the Partnership to correct any errors or ambiguities in this Agreement and/or to make such changes that
do not adversely affect the Advisor’s rights hereunder.

 

b.           Legend.
The records of the Partnership evidencing the Award LTIP Units shall bear an appropriate legend, as determined by the Partnership
in its sole discretion, to the effect that such Award LTIP Units are subject to restrictions as set forth herein and in the Partnership
Agreement.

 

c.           Compliance
With Law. The Partnership and the Advisor will make reasonable efforts to comply with all applicable securities laws. In addition,
notwithstanding any provision of this Agreement to the contrary, no Award LTIP Units will become vested or be paid at a time that
such vesting or payment would result in a violation of any such law.

 

d.           Advisor
Representations; Registration.

 

(i)          The
Advisor hereby represents and warrants that (A) it understands that it is responsible for consulting its own tax advisor with respect
to the application of the U.S. federal income tax laws, and the tax laws of any state, local or other taxing jurisdiction to which
the Advisor is or by reason of this Award may become subject, to its particular situation; (B) the Advisor has not received or
relied upon business or tax advice from the Company, the Partnership or any of their respective Affiliates (as defined in the Partnership
Agreement), employees, agents, consultants or advisors, in their capacity as such; (C) the Advisor provides services to the Partnership
on a regular basis and in such capacity has access to such information, and has such experience of and involvement in the business
and operations of the Partnership, as the Advisor believes to be necessary and appropriate to make an informed decision to accept
this Award; (D) Award LTIP Units are subject to substantial risks; (E) the Advisor has been furnished with, and has reviewed and
understands, information relating to this Award; (F) the Advisor has been afforded the opportunity to obtain such additional information
as it deemed necessary before accepting this Award; and (G) the Advisor has had an opportunity to ask questions of representatives
of the Partnership and the Company, or persons acting on their behalf, concerning this Award.

 

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(ii)          The
Advisor hereby acknowledges that: (A) there is no public market for Award LTIP Units or Award OP Units and neither the Partnership
nor the Company has any obligation or intention to create such a market; (B) sales of Award LTIP Units and Award OP Units
are subject to restrictions under the Securities Act and applicable state securities laws; and (C) because of the restrictions
on transfer or assignment of Award LTIP Units and Award OP Units set forth in the Partnership Agreement and in this Agreement,
the Advisor may have to bear the economic risk of its ownership of the Award LTIP Units covered by this Award for an indefinite
period of time.

 

e.           Section 83(b)
Election. In connection with each separate issuance of LTIP Units under this Award pursuant to Section 3 hereof,
the Advisor may elect to include in gross income in the year of transfer the applicable Award LTIP Units pursuant to Section 83(b)
of the Code substantially in the form attached hereto as Exhibit B and to supply the necessary information in accordance
with the regulations promulgated thereunder. The Advisor agrees to file such election (or to permit the Partnership to file such
election on the Advisor’s behalf) within thirty (30) days after the Grant Date with the IRS Service Center where the Advisor
files its personal income tax returns, provide a copy of such election to the Partnership and the Company, and to file a copy of
such election with the Advisor’s U.S. federal income tax return for the taxable year in which the LTIP Units are awarded
to the Advisor. So long as the Advisor holds any Award LTIP Units, the Advisor shall disclose to the Partnership in writing such
information as may be reasonably requested with respect to ownership of LTIP Units as the Partnership may deem reasonably necessary
to ascertain and to establish compliance with provisions of the Code applicable to the Partnership or to comply with requirements
of any other appropriate taxing authority.

 

f.           Severability.
If, for any reason, any provision of this Agreement is held invalid, such invalidity shall not affect any other provision of this
Agreement not so held invalid, and each such other provision shall to the full extent consistent with law continue in full force
and effect. If any provision of this Agreement shall be held invalid in part, such invalidity shall in no way affect the rest of
such provision not held so invalid, and the rest of such provision, together with all other provisions of this Agreement, shall
to the full extent consistent with law continue in full force and effect.

 

g.           Governing
Law. This Agreement is made under, and will be construed in accordance with, the laws of State of Delaware, without giving
effect to the principles of conflict of laws of such state.

 

h.           No
Obligation to Continue Service as a Consultant or Advisor. Neither the Company nor any affiliate is obligated by or as a result
of this Agreement to continue to have the Advisor as a consultant, advisor or other service provider and this Agreement shall not
interfere in any way with the right of the Company or any affiliate to terminate the Advisor’s service relationship at any
time.

 

i.           Notices.
Any notice to be given to the Company shall be addressed to the Secretary of the Company at 405 Park Avenue, 14th Floor,
New York, New York, 10022, and any notice to be given the Advisor shall be addressed to the Advisor at the Advisor’s address
as it appears on the records of the Company, or at such other address as the Company or the Advisor may hereafter designate in
writing to the other.

 

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j.           Withholding
and Taxes. The Advisor shall be solely responsible for all federal, state, local, foreign, or other taxes or any taxes under
the Federal Insurance Contributions Act with respect to this Award. Notwithstanding the foregoing, if at any time the Company or
Partnership are required to withhold any such taxes, the Advisor shall make arrangements satisfactory to the Committee regarding
the payment of any United States federal, state, local, foreign, or other taxes required by law to be withheld with respect to
such amount; provided, however, that if any Award LTIP Units or Award OP Units are withheld (or returned), the number
of Award LTIP Units or Award OP Units so withheld (or returned) shall be limited to the number which have a fair market value on
the date of withholding equal to the aggregate amount of such liabilities based on the minimum statutory withholding rates for
federal, state, local and foreign income tax and payroll tax purposes that are applicable to such supplemental taxable income.
The obligations of the Company under this Agreement will be conditional on such payment or arrangements, and the Company and its
affiliates shall, to the extent permitted by law, have the right to deduct any such taxes from any payment otherwise due to the
Advisor.

 

k.           Headings.
The headings of paragraphs hereof are included solely for convenience of reference and shall not control the meaning or interpretation
of any of the provisions of this Agreement.

 

l.           Counterparts.
This Agreement may be executed in multiple counterparts with the same effect as if each of the signing parties had signed the same
document. All counterparts shall be construed together and constitute the same instrument.

 

m.           Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and any successors to the
Company and the Partnership, on the one hand, and any successors to the Advisor, on the other hand, by will or the laws of descent
and distribution, but this Agreement shall not otherwise be assignable or otherwise subject to hypothecation by the Advisor.

 

n.           Section
409A. This Agreement shall be construed, administered and interpreted in accordance with a good faith interpretation of Section 409A
of the Code. Any provision of this Agreement that is inconsistent with Section 409A of the Code, or that may result in penalties
under Section 409A of the Code, shall be amended, with the reasonable cooperation of the Advisor and the Company and the Partnership,
to the extent necessary to exempt it from, or bring it into compliance with, Section 409A of the Code.

 

[Signature page follows]

 

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IN
WITNESS WHEREOF, the undersigned have caused this Agreement to be executed as of the 2nd day of June, 2015.

 

	 	GLOBAL NET LEASE, INC.	 
	 	 	 
	 		By:	/s/ Scott J. Bowman	 
	 	Name: Scott J. Bowman	 
	 	Title: Chief Executive Officer	 
	 	 	 
	 	Global Net Lease Operating

 Partnership, L.P.	 
	 	 	 
	 	By:  Global Net Lease, Inc., its general partner	 
	 	 	 
	 	 	By:	/s/ Scott J. Bowman	 
	 	Name: Scott J. Bowman	 
	 	Title: Chief Executive Officer	 
	 	 	 
	 	Global Net Lease Advisors, LLC	 
	 	 	 
	 	 	By:	/s/ Scott J. Bowman	 
	 	Name: Scott J. Bowman	 
	 	Title: Chief Executive Officer	 

 

[Signature Page to Outperformance Award
Agreement]

 

    	 

    	 

    

 

EXHIBIT A

 

DEFINITIONS

 

“Additional
Shares” means (without double-counting), as of a particular date of determination, the sum of (A) the number of shares
of Common Stock plus (B) the REIT Shares Amount for all Partnership Units (assuming that such Partnership Units were converted,
exercised, exchanged or redeemed for OP Units as of such date of determination at the applicable conversion, exercise, exchange
or redemption rate (or rate deemed applicable by the Committee if there is no such stated rate) and such OP Units were then tendered
to the Partnership for redemption pursuant to the Partnership Agreement as of such date) other than those Partnership Units held
by the Company, in the case of each (A) and (B), to the extent issued after the Effective Date and on or before such date of determination
in a capital raising transaction, in exchange for assets or securities, or upon the acquisition of another entity; provided,
that for the avoidance of doubt, this definition of “Additional Shares” shall exclude: (i) shares of Common Stock issued
after the Effective Date upon exercise of stock options or upon the exchange (directly or indirectly) of LTIP Units or other Partnership
Units issued to employees, non-employee directors, consultants, advisors or other persons or entities as incentive or other compensation,
(ii) shares of Common Stock awarded after the Effective Date to employees or other persons or entities in exchange for services
provided or to be provided to the Company or any of its affiliates, and (iii) all Initial Shares.

 

“Adjusted
Market Cap” means (A) the Company’s Initial Market Cap minus the value of any Buyback Shares based on the Common
Stock Price repurchased or redeemed since the Effective Date plus the value of any Additional Shares based on the Common Stock
Price issued after the Effective Date (prorated to reflect the number of days they were outstanding since the Effective Date) with
respect to the calculation of (i) the Annual Amount on the First Valuation Date, (ii) the Interim Amount, (iii) the Final Absolute
TRS Amount and (iv) the Final Relative TRS Amount, and (B) the Company’s Adjusted Market Cap calculated pursuant to (A) as
of the prior Valuation Date minus the value of any Buyback Shares based on the Common Stock Price repurchased or redeemed since
the prior Valuation Date plus the value of any Additional Shares based on the Common Stock Price issued after the prior Valuation
Date (prorated to reflect the number of days they were outstanding since the prior Valuation Date) with respect to the calculation
of the Annual Amount on the Second Valuation Date and the Final Valuation Date.

 

“Annual Absolute
TRS” means, as of each Valuation Date, a dollar amount equal to four percent (4%) of the dollar amount by which,
if any, the amount of the Company’s Total Return, determined as of such date, exceeds the Threshold Amount, determined as
of such date.

 

“Annual Amount”
means, as of a Valuation Date, an amount equal to up to one and one quarter percent (1.25%) of the Company’s Initial
Market Cap based on the level of achievement of Annual Absolute TRS and Annual Relative TRS as of such Valuation Date for the period
commencing on (A) the Effective Date with respect to the First Valuation Date and (B) the prior Valuation Date with respect to
the Second Valuation Date and the Final Valuation Date.

 

    	Exhibit A - 1

    	 

    

 

“Annual Relative
TRS” means, as of each Valuation Date, a dollar amount equal to four percent (4%) of any amount by which the
Company’s Total Return for the period commencing on (A) the Effective Date with respect to the First Valuation Date and (B)
the prior Valuation Date with respect to the Second Valuation Date and the Final Valuation Date, exceeds the Relative Threshold
Amount as of such date; provided, that the amount so earned will be subject to reduction in accordance with a ratable sliding
scale factor so that (A) if the Company’s TRS Percentage for the applicable period is six percent (6%) or more, there will
be no reduction to Annual Relative TRS for such period; (B) Annual Relative TRS for such period shall be reduced by fifty percent
(50%) if such TRS Percentage for the applicable period is zero percent (0%); (C) Annual Relative TRS for such period shall be reduced
based on a linear interpolation between the foregoing reduction factors if the Company’s TRS Percentage for the applicable
period is between zero percent (0%) and six percent (6%) (e.g., if the Company achieved a TRS Percentage of three percent
(3%), the value of any award would be reduced by a factor of twenty-five percent (25%)); and (D) Annual Relative TRS for such period
shall be reduced by one hundred percent (100%) if the TRS Percentage for the applicable period is below zero percent (0%).

 

“Award OP
Units” has the meaning set forth in Section 7 hereof.

 

“Award LTIP
Units” has the meaning set forth in Section 3(a) hereof.

 

“Beneficial
Owner” has the meaning set forth in Rule 13d-3 under the Exchange Act.

 

“Buyback
Shares” means (without double-counting), as of a particular date of determination, (A) shares of Common Stock
or (B) the REIT Shares Amount for Partnership Units (assuming that such Partnership Units were converted, exercised, exchanged
or redeemed for OP Units as of such date of determination at the applicable conversion, exercise, exchange or redemption rate (or
rate deemed applicable by the Committee if there is no such stated rate) and such OP Units were then tendered to the Partnership
for redemption pursuant to the Partnership Agreement as of such date), other than those Partnership Units held by the Company,
in the case of each (A) and (B), to the extent repurchased by the Company after the Effective Date and on or before such date
of determination in a stock buyback transaction or in a redemption of Partnership Units for cash pursuant to the Partnership Agreement;
provided, that for the avoidance of doubt, this definition of “Buyback Shares” shall exclude: (i) shares of
Common Stock issued after the Effective Date upon exercise of stock options or upon the exchange (directly or indirectly) of LTIP
Units or other Partnership Units issued to employees, non-employee directors, consultants, advisors or other persons or entities
as incentive or other compensation, and (ii) shares of Common Stock awarded after the Effective Date to employees or other persons
or entities in exchange for services provided or to be provided to the Company or any of its affiliates.

 

“Change of
Control” means and includes any of the following events:

 

    	Exhibit A - 2

    	 

    

 

(i)          any
Person is or becomes Beneficial Owner, directly or indirectly, of securities of the Company representing thirty percent (30%) or
more of the combined voting power of the then outstanding securities of the Company, excluding (A) any Person who becomes
such a Beneficial Owner in connection with a transaction described in clause (x) of subsection (ii) below and (B) any
Person who becomes such a Beneficial Owner through the issuance of such securities with respect to purchases made directly from
the Company; or

 

(ii)          the
consummation of a merger or consolidation of the Company with any other Person or the issuance of voting securities of the Company
in connection with a merger or consolidation of the Company (or any direct or indirect subsidiary of the Company) pursuant to applicable
stock exchange requirements, other than (x) a merger or consolidation which would result in the voting securities of the Company
outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being
converted into voting securities of the surviving entity or any parent thereof) seventy percent (70%) or more of the combined voting
power of the securities of the Company or such surviving entity or any parent thereof outstanding immediately after such merger
or consolidation, or (y) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction)
in which no Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing thirty
percent (30%) or more of the combined voting power of the then outstanding securities of the Company; or

 

(iii)          the
consummation of a sale or disposition by the Company of all or substantially all of the assets of the Company; or

 

(iv)          persons
who, as of the Effective Date, constitute the Board (the “Incumbent Directors”) cease for any reason, including,
without limitation, as a result of a tender offer, proxy contest, merger or similar transaction, to constitute at least a majority
of the Board, provided that any person becoming a director of the Company subsequent to such date shall be considered an
Incumbent Director if such person’s election was approved by or such person was nominated for election a vote of at least
a majority of the Incumbent Directors.

 

Notwithstanding the foregoing, with respect
to any payment that is triggered upon a Change in Control, a transaction shall not be deemed to be a Change in Control unless such
transaction constitutes a “change in control event” within the meaning of Section 409A of the Code.

 

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

 

“Common Stock”
means the Company’s common stock, par value $0.01 per share, either currently existing or authorized hereafter.

 

“Common Stock
Price” means, as of the Effective Date, $10.50 and, as of any other date, the average of the Fair Market Value of
one share of Common Stock over the fifteen (15) consecutive trading days ending on, and including, such date (or, if such date
is not a trading day, the most recent trading day immediately preceding such date); provided, however, that if such
date is the date upon which a Transactional Change of Control occurs, the Common Stock Price as of such date shall be equal to
the fair value, as determined by the Committee, of the total consideration paid or payable in the transaction resulting in the
Transactional Change of Control for one share of Common Stock.

 

    	Exhibit A - 3

    	 

    

 

“Continuous
Service” means the Advisor’s continuous service as manager of the Company without interruption or termination.

 

“Conversion
Factor” has the meaning set forth in the Partnership Agreement.

 

“Effective
Date” means June 2, 2015.

 

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

 

“Fair Market
Value” means, as of any given date, the fair market value of a security determined by the Committee using any reasonable
method and in good faith (such determination will be made in a manner that satisfies Section 409A of the Code and in good-faith
as required by Section 422(c)(1) of the Code); provided that (A) if such security is admitted to trading on a
national securities exchange, the fair market value of such security on any date shall be the closing sale price reported for such
security on the principal stock exchange or, if applicable, any other national exchange on which the security is traded or admitted
to trading on such date on which a sale was reported; and (B) if such security is admitted to quotation on the National Association
of Securities Dealers Automated Quotation System (“NASDAQ”) or a successor quotation system, the fair market
value of such security on any such date shall be the average of the highest bid and lowest asked prices for such security on the
system on such date on which both the bid and asked prices were reported.

 

“Final Absolute
TRS Amount” means, as of the Final Valuation Date, a dollar amount equal to four percent (4%) of the dollar amount
by which, if any, the amount of the Company’s Total Return, determined as of such date, exceeds the Threshold Amount, determined
as of such date.

 

“Final Relative
TRS Amount” means, as of the Final Valuation Date, a dollar amount equal to four percent (4%) of any amount
by which the Company’s Total Return for the period commencing on the Effective Date through the Final Valuation Date exceeds
the Relative Threshold Amount as of such date; provided, that the amount so earned will be subject to reduction in accordance
with a ratable sliding scale factor so that (A) if the Company’s TRS Percentage for the period commencing on the Effective
Date through the Final Valuation Date is eighteen percent (18%) or more, there will be no reduction to the Final Relative TRS Amount;
(B) the Final Relative TRS Amount shall be reduced by fifty percent (50%) if such TRS Percentage is zero percent (0%); (C) the
Final Relative TRS Amount shall be reduced based on a linear interpolation between the foregoing reduction factors if the Company’s
TRS Percentage is between zero percent (0%) and eighteen percent (18%) (e.g., if the Company achieved a TRS Percentage of
nine percent (9%), the value of any award would be reduced by a factor of twenty-five percent (25%)); and (D) the Final Relative
TRS Amount shall be reduced by one hundred percent (100%) if such TRS Percentage is below zero percent (0%).

 

“Final Valuation
Date” means June 2, 2018.

 

“First
Valuation Date” means June 2, 2016.

 

    	Exhibit A - 4

    	 

    

 

“Initial
Market Cap” means (A) $10.50 multiplied by (B) the number of Initial Shares outstanding on the Effective
Date.

 

“Initial
Shares” means the sum of (A) all shares of Common Stock outstanding as of the applicable date (including any
vested and nonvested restricted shares of Common Stock issued under any other incentive plan maintained by the Company prior to
the applicable date), plus (B) any shares of Common Stock representing the REIT Shares Amount for all Partnership Units
outstanding as of the applicable date (assuming such Partnership Units were converted, exercised, exchange or redeemed for OP Units
as of the applicable date at the applicable conversion, exercise, exchange or redemption rate (or rate deemed applicable by the
Committee if there is no such stated rate) and such OP Units were then tendered to the Partnership for redemption pursuant to the
Partnership Agreement as of such date) other than Partnership Units held by the Company; provided, that for the avoidance of doubt,
this definition of “Initial Shares” shall exclude shares of Common Stock issuable upon exercise of stock options or
upon the exchange (directly or indirectly) of LTIP Units or other Partnership Units issued to employees, non-employee directors,
consultants, advisors or other persons or entities as incentive or other compensation.

 

“Interim
Amount” means, as of the Second Valuation Date, an amount equal to (A) up to three percent (3%) of the Company’s
Initial Market Cap, less (B) any amount of the Annual Amount achieved through the Second Valuation Date (such that the maximum
level of achievement through the Second Valuation Date shall not exceed three percent (3%) of the Company’s Initial Market
Cap), based on the level of achievement of: (x) a dollar amount equal to four percent (4%) of the dollar amount by which, if any,
the amount of the Company’s Total Return, determined as of such date, exceeds the Threshold Amount, determined as of such
date (“Interim Absolute TSR”), and (y) as of the Second Valuation Date, a dollar amount equal to four
percent (4%) of any amount by which the Company’s Total Return for the period commencing on the Effective Date, exceeds
the Relative Threshold Amount as of such date (“Interim Relative TRS”); provided, that the amount
so earned will be subject to reduction in accordance with a ratable sliding scale factor so that (A) if the Company’s TRS
Percentage for the applicable period is twelve percent (12%) or more, there will be no reduction to Interim Relative TRS for such
period; (B) Interim Relative TRS for such period shall be reduced by fifty percent (50%) if such TRS Percentage for the applicable
period is zero percent (0%); (C) Interim Relative TRS for such period shall be reduced based on a linear interpolation between
the foregoing reduction factors if the Company’s TRS Percentage for the applicable period is between zero percent (0%) and
twelve percent (12%) (e.g., if the Company achieved a TRS Percentage of six percent (6%), the value of any award would be
reduced by a factor of twenty-five percent (25%)); and (D) Interim Relative TRS for such period shall be reduced by one hundred
percent (100%) if the TRS Percentage for the applicable period is below zero percent (0%). For the avoidance of doubt, any Interim
Amount will be determined based on the formula in the preceding sentence which provides for a reduction for any Annual Amounts
determined at the First and Second Valuation Dates, but not less than zero.

 

“LTIP Units”
means LTIP Units, as such term is defined in the Partnership Agreement.

 

    	Exhibit A - 5

    	 

    

 

“Maximum
Total Outperformance Amount” means five percent (5%) of the Company’s Initial Market Cap.1

 

“OP Units”
has the meaning set forth in the Partnership Agreement.

 

“Partnership
Agreement” means the Second Amended and Restated Agreement of Limited Partnership of the Partnership, dated as of
June 2, 2015, among the Company, as general partner, the Advisor, as a limited partner, and any limited partners that are admitted
from time to time to the Partnership and listed on Schedule A thereto, as amended, restated or supplemented from time to time.

 

“Partnership
Units” has the meaning set forth in the Partnership Agreement.

 

“Peer Group”
means Chambers Street Properties, Gramercy Property Trust Inc., Lexington Realty Trust, Select Income REIT, and W. P. Carey Inc.

 

“Peer Group
Return Percentage” means, the median percentage return to stockholders of the Peer Group (A) for the period commencing
on the Effective Date and ending on the First Valuation Date with respect to the calculation of Annual Relative TRS for the First
Valuation Date, (B) for the period commencing on the day after the prior Valuation Date and ending on the next Valuation Date with
respect to calculation of Annual Relative TRS for the Second Valuation Date and the Final Valuation Date and (C) for the period
commencing on the Effective Date and ending on the Second Valuation Date and the Final Valuation Date with respect to calculating
Interim Relative TRS and Final Relative TRS, respectively; in each case as calculated by an independent consultant engaged by the
Committee and as approved by the Committee in its reasonable discretion.

 

“Person”
means an individual, corporation, partnership, limited liability company, joint venture, association, trust, unincorporated organization,
other entity or “group” (as defined in the Exchange Act).

 

“REIT Shares
Amount” has the meaning set forth in the Partnership Agreement.

 

“Relative
Threshold Amount” means an amount calculated in the same manner as the Threshold Amount provided that instead of
the TRS Percentage the Peer Group Return Percentage shall be utilized in calculating the Threshold Amount.

 

“Second Valuation
Date” means June 2, 2017.

 

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

 

“Subsidiary”
means any corporation or other entity (other than the Company) in which the Company has more than a fifty percent (50%) interest,
either directly or indirectly.

 

 

1 Estimated to be approximately
$86 million.

 

    	Exhibit A - 6

    	 

    

 

“Threshold
Amount” means for each measurement period an amount equal to the difference between (I) the sum of (A) the Initial
Shares outstanding at the beginning of the measurement period multiplied by the initial Common Stock Price at the beginning of
the measurement period, plus an amount equal to (i) a seven percent (7%) non-compounded TRS Percentage for each annual measurement
period, (ii) a fourteen percent (14%) TRS Percentage for purposes of calculating Interim Absolute TRS and (iii) a twenty-one percent
(21%) TRS Percentage for purposes of calculating the Final Absolute TRS Amount, plus (B) the Additional Shares issued during the
applicable measurement period multiplied by the Common Stock Price on the date of issuance, plus an amount equal to the proportional
required return (based on a non-compounded daily rate of .0001918) on the Additional Shares based on the required TRS Percentage
for the applicable measurement period, minus (II) the Buyback Shares during the applicable measurement period multiplied by the
Common Stock Price on the buyback date, plus an amount equal to the proportional required return (based on a non-compounded daily
rate of .0001918) on the Buyback Shares based on the applicable required TRS Percentage for the applicable measurement period.

 

“Total Outperformance
Amount” means, as of the Final Valuation Date, a dollar amount equal to the algebraic sum of: (A) the Final
Absolute TRS Amount, (B) the Final Relative TRS Amount, (C) the Annual Amounts determined as of each Valuation Date and (D)
the Interim Amount; provided that (i) if the resulting amount is a negative number, the Total Outperformance Amount
shall be zero, and (ii) in no event shall the Total Outperformance Amount exceed the Maximum Total Outperformance Amount.
For the avoidance of doubt, the Total Outperformance Amount is based on (i) the Annual Amounts granted at the First, Second and
Final Valuation Dates, plus (ii) the Interim Amount less any Annual Amounts granted at the First and Second Valuation Dates, plus
(iii) the sum of the Final Absolute TRS Amount plus the Final Relative TRS Amount, less any Annual Amounts granted at the First,
Second and Third Valuation Dates and any Interim Amount granted at the Second Valuation Date, but not less than zero and not greater
than the Maximum Total Outperformance Amount.

 

“Total Return”
means (without double-counting), as of a particular date of determination, a dollar amount equal to the sum of: (A) the Total
Shares as of such date of determination multiplied by the Common Stock Price as of such date, minus (B) (x) the Initial Market
Cap with respect to the calculation of (i) the Annual Amount on the First Valuation Date, (ii) the Interim Amount, (iii) the Final
Absolute TRS Amount and (iv) the Final Relative TRS Amount, and (y) the Adjusted Market Cap calculated as of the prior Valuation
Date with respect to the calculation of the Annual Amount on the Second Valuation Date and the Final Valuation Date, plus
(C) an amount equal to the sum of the total dividends and other distributions declared between the beginning of the applicable
measuring period and such date of determination so long as the “ex-dividend” date with respect thereto falls prior
to such date of determination (excluding dividends and distributions paid in the form of additional shares of Common Stock or Partnership
Units), in respect of the Total Shares as of such date of determination (it being understood, for the avoidance of doubt, that
such total dividends and distributions shall be calculated by reference to actual securities outstanding as of each record date
with respect to each applicable dividend or distribution payment date, and not by multiplying the aggregate amount of distributions
paid on one OP Unit that was outstanding as of the Effective Date between the Effective Date and such date of determination by
the number of Total Shares as of the date of determination).

 

    	Exhibit A - 7

    	 

    

 

“Total Shares”
means (without double-counting), as of a particular date of determination, the algebraic sum of: (A) the Initial Shares, plus
(B) the Additional Shares, minus (C) all Buyback Shares repurchased or redeemed between the Effective Date and
such date of determination.

 

“Total OPP
Unit Equivalent” means the aggregate of the (i) sum of Annual OPP Unit Equivalents and the Interim OPP Unit Equivalent
(the “Earned Annual and Interim OPP Unit Equivalents”) and (ii) the excess (if any) of the Final OPP
Unit Equivalent over the Earned Annual and Interim OPP Unit Equivalents.

 

“Transactional
Change of Control” means (A) a Change of Control described in clause (i) of the definition thereof where
the Person makes a tender offer for Common Stock, (B) a Change of Control described in clause (ii) of the definition
thereof where the Company is not the surviving entity, or (C) a Change of Control described in clause (iii) of the definition
thereof.

 

“Transfer”
has the meaning set forth in Section 7 hereof.

 

“TRS Percentage”
means, with respect to the Company, the cumulative total percentage return per share achieved by one share of the Company’s
Common Stock for each applicable measurement period, assuming contemporaneous reinvestment in Common Stock of all dividends and
other distributions, as calculated by an independent consultant engaged by the Committee, which calculation shall be approved by
the Committee in its reasonable discretion.

 

“Valuation Date”
means the First Valuation Date, the Second Valuation Date and the Final Valuation Date, as applicable.

 

    	Exhibit A - 8

    	 

    

 

EXHIBIT B

 

ELECTION TO INCLUDE IN GROSS INCOME
IN YEAR OF TRANSFER OF

PROPERTY PURSUANT TO SECTION 83(b) OF THE INTERNAL REVENUE CODE

 

The undersigned hereby makes an election
pursuant to Section 83(b) of the Internal Revenue Code with respect to the property described below and supplies the following
information in accordance with the regulations promulgated thereunder:

 

		1.	The name, address and taxpayer identification number of
the undersigned are:

 

Name: Global Net Lease Advisors, LLC (the “Taxpayer”)

 

Address:

 

 

   

Social Security No./Taxpayer Identification No.: ___-__-____

 

		2.	Description of property with respect to which the election
is being made: ______ LTIP Units in Global Net Lease Operating Partnership, L.P. (the “Partnership”).

 

		3.	The date on which the LTIP Units were transferred is [●],
2015. The taxable year to which this election relates is calendar year 2015.

 

		4.	Nature of restrictions to which the LTIP Units are subject:

 

		(a)	With limited exceptions, until the LTIP Units vest, the
Taxpayer may not transfer in any manner any portion of the LTIP Units without the consent of the Partnership.

 

		(b)	The Taxpayer’s LTIP Units vest in accordance with
the vesting provisions described in the Schedule attached hereto. Unvested LTIP Units are forfeited in accordance with the vesting
provisions described in the Schedule attached hereto.

 

		5.	The fair market value at time of transfer (determined without
regard to any restrictions other than restrictions which by their terms will never lapse) of the LTIP Units with respect to which
this election is being made was $[●] per LTIP Unit.

 

		6.	The amount paid by the Taxpayer for the LTIP Units was
$0 per LTIP Unit.

 

		7.	A copy of this statement has been furnished to the Partnership
and Global Net Lease, Inc.

 

	Dated:	 	 	Name:	 

 

    	Exhibit B - 1

    	 

    

 

SCHEDULE TO EXHIBIT B

 

Vesting Provisions of LTIP Units

 

The LTIP Units are
subject to time-based and performance-based vesting with the final vesting percentage equaling the product of the time-based vesting
percentage and the performance-based vesting percentage. Performance-based vesting will be from 0% to 100% based (i) 50% on Global
Net Lease, Inc.’s (the “Company’s”) per-share total return to shareholders and (ii) 50% on total
return against the total percentage return to stock holders of a specified peer group, in each case for the period from [●],
2016 to [●], 2018 (or earlier in certain circumstances). Under the time-based vesting hurdles, one-third (1/3) of the LTIP
Units will vest on June 2, 2018, one-third (1/3) of the LTIP Units will vest on June 2, 2019, and the remaining one-third (1/3)
of the LTIP Units will vest on June 2, 2020, provided that the Taxpayer continues its service relationship with the Company
and the Partnership through such dates, subject to acceleration in the event of certain extraordinary transactions or termination
of the Taxpayer’s service relationship with the Company under specified circumstances. Unvested LTIP Units are subject to
forfeiture in the event of failure to vest based on the determination of the performance-based percentage or the passage of time.

 

    	Schedule B - 2Exhibit 10.6

  

 

LISTING NOTE AGREEMENT

 

This Listing Note Agreement
(the “Listing Note”) is entered into by and between Global Net Lease Operating Partnership, L.P., a Delaware
limited partnership (f/k/a American Realty Capital Global Operating Partnership, L.P.) (the “Partnership”) and
Global Net Lease Special Limited Partner, LLC, a Delaware limited liability company (the “SLP”) this second
day of June, 2015. Capitalized terms used herein but not otherwise defined shall have the meaning ascribed to as the applicable
term in the Second Amended and Restated Agreement of Limited Partnership of Global Net Lease Operating Partnership, L.P. dated
as of June 2, 2015 (the “OP Agreement”).

 

WHEREAS, the SLP is
a special limited partner of the Partnership which is governed by the OP Agreement;

 

WHEREAS, Global Net
Lease, Inc., a Maryland corporation (the “Company”), is the general partner of the Partnership;

 

WHEREAS, pursuant to
Section 5.1(c) of the Amended and Restated Agreement of Limited Partnership of the Partnership dated as of July 2, 2013,
the Company, as General Partner of the OP, was required to cause the Partnership to make certain distributions to the SLP with
respect to its Special Limited Partner Interest upon a Listing; and

 

WHEREAS, a Listing
occurred on June 2, 2015;

 

NOW THEREFORE, in consideration
of the mutual covenants contained herein, and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties do hereby agree as follows:

 

		1.	Recitals.

 

The recitals to this Listing Note
are incorporated by reference herein and made a part hereof.

 

		2.	Redemption.

 

The Partnership hereby agrees to
distribute to the SLP, with respect to its Special Limited Partner Interest, an aggregate amount (referred to herein as the “Listing
Amount”) equal to (a) 15% of an amount equal to the difference (to the extent the result is a positive number) of (i)
the sum of (I) the Market Value plus (II) the sum of all distributions or dividends (from any source) paid by the Company
to its stockholders prior to the Occurrence Date, exceeds (ii) the sum of (I) the total Gross Proceeds plus (II) the total
amount of cash that, if distributed to the stockholders who purchased shares of Common Stock in any Offering or Offerings, would
have provided such stockholders a Priority Return on the Gross Proceeds as of the Occurrence Date minus (b) any distributions
received by the SLP pursuant to Section 5.02(b) of the OP Agreement prior to the Occurrence Date or Section 3 hereof.
The parties hereto understand that the Listing Amount is not be determinable until Market Value is determined. Notwithstanding
anything herein to the contrary, in accordance with Section 736 of the Internal Revenue Code, as amended (the “Code”),
this Listing Note shall be disregarded for applicable income tax purposes and the SLP shall continue to be treated as a partner
of the Partnership in respect of its Special Limited Partner Interest for such purposes until the Partnership has satisfied all
of its obligations under this Listing Note. Without limiting the foregoing, there shall be no other obligations to pay or accrue
any other amounts (including interest) with respect to the Listing Note, other than the Listing Amount; provided, that any
cash or property paid to the Special Limited Partner with respect to such interest shall be reported to the Special Limited Partner
on Internal Revenue Service Schedule K-1 to Form 1065 (or such successor schedule or form).

 

    	1

    	 

    

 

		3.	Distributions in respect of the Listing Amount.

 

Upon closing any Asset Sale,
after the date of this Listing Note but before the Market Value is determined and that is not a Liquidity Event, the Partnership
shall make the distributions required by Section 5.02(b) of the OP Agreement, in accordance therewith.

 

		4.	Conversion and Exchange of Special Limited Partner Interest.

 

		(a)	Conversion. On and after such time as the Listing Amount is determined, the SLP shall have
the right, but not the obligation, to contribute the entire Special Limited Partner Interest to the Partnership in exchange for
OP Units in a transaction intended to qualify as a contribution of property pursuant to Section 721 of the Code. The SLP shall
provide written notice to the General Partner of its intention to contribute the Special Limited Partner Interest at least ten
(10) days prior to the date on which the contribution is to occur. The maximum number of OP Units issuable upon a contribution
of the entire Special Limited Partner Interest shall be equal to the quotient of (i) the Listing Amount divided by (ii)
the product of (A) in the case of a Listing or an Asset Sale that is a Liquidity Event, the Value of one REIT Share (as defined
in the OP Agreement) on the date of the contribution, or in the case of a Merger, the Market Value of one share of the Company’s
Common Stock pursuant to the terms of the applicable transaction document multiplied by (B) the Conversion Factor. Only
a whole number of OP Units will be issuable upon a contribution of the entire Special Limited Partner Interest. The SLP covenants
and agrees with the Partnership that the Special Limited Partner Interest shall be free and clear of all liens at the time of contribution.
The contribution of the entire Special Limited Partner Interest shall occur automatically after the close of business on the applicable
date of contribution, as of which time the SLP shall be credited on the books and records of the Partnership with the issuance
as of the opening of business on the next day of the number of OP Units issuable upon such contribution.

 

		(b)	Exchange. OP Units issuable upon a contribution of the Special Limited Partner Interest
in Section 4(a) above shall be exchangeable for cash or, at the option of the Partnership, for shares of the Company’s
Common Stock pursuant to Section 8.04 of the OP Agreement; provided, that such OP Units (including, for the avoidance
of doubt, any OP Units issued to the SLP as a result of any merger, consolidation or other business combination or reorganization
to which the Partnership or the Company is a party) shall have been outstanding for at least two years (or such lesser time as
determined by the Company in its sole and absolute discretion), which period shall include the period that the SLP held the Special
Limited Partner Interest prior to its conversion to OP Units pursuant to Section 4(a).

 

		(c)	OP Agreement. Except as otherwise set forth herein, this Listing Note, and the SLP’s
rights in respect thereof shall be governed by, and subject to, the terms and conditions of the OP Agreement.

 

    	2

    	 

    

 

		5.	Subordination. This Listing Note and the rights and obligations evidenced hereby are subordinated
in the manner and to the extent set forth in that certain Subordination Agreement (as amended, restated, modified or otherwise
supplemented from time to time, the “Subordination Agreement”), dated as of June 1, 2015, between the Partnership,
SLP and JPMorgan Chase Bank, N.A., as agent, to the “Obligations” (as defined therein), and the SLP, and any successor
holder of this Listing Note, irrevocably agrees to be bound by the provisions of the Subordination Agreement, including, without
limitation, any restrictions contained in the Subordination Agreement with respect to payments made under the Listing Note.

 

		6.	Lost or Mutilated Note. If this Listing Note shall be mutilated, lost, stolen or destroyed,
the Partnership shall execute and deliver, in exchange and substitution for and upon cancellation of this Listing Note (if
mutilated), or in lieu of or in substitution for this Listing Note (if lost, stolen or destroyed), a new listing note but only
upon receipt of evidence of such loss, theft or destruction of the Listing Note.

 

		7.	Cancellation. This Listing Note shall be of no further force or effect once the SLP has
received an amount equal to the Listing Amount. After all distributions have been paid, the SLP shall surrender this Listing Note
to the Partnership for cancellation.

 

		8.	Costs of Enforcement. In the event of the breach by the Partnership or the Company
of any provision of this Listing Note or the occurrence of an Event of Default (as defined below), the SLP shall, be entitled
to proceed to protect and enforce its rights hereunder by appropriate judicial proceedings and the SLP shall be entitled to exercise
all other rights and remedies available at law or in equity. The Partnership and the Company shall be obligated, jointly and severally,
to reimburse the SLP for all reasonable costs and expenses incurred in connection with the protection and enforcement of its rights
hereunder and collection of all amounts owing hereunder plus reasonable attorneys’ fees and expenses.

 

		9.	Events of Default. For purposes of this Listing Note, an “Event of Default”
will be deemed to have occurred if:

 

		(a)	the Partnership fails to pay any distributions in respect of the Listing Note or take any
other actions in respect thereof, all as set forth herein or in the OP Agreement;

 

		(b)	a Change of Control occurs with respect to the Partnership; or

 

		(c)	an Event of Bankruptcy occurs with respect to the Partnership.

 

		10.	Remedies Upon an Event of Default. The Partnership shall, within five (5) Business Days
after becoming aware thereof, notify the SLP of the occurrence of any Event of Default. If an Event of Default shall occur and
be continuing, the SLP shall be entitled to declare all amounts under this Listing Note due and payable.

 

    	3

    	 

    

 

		11.	Definitions.

 

		(a)	“Asset Sale” means any transaction or series of transactions whereby: (i) the
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 asset, real estate related loan or other investment
or portion thereof, including any event with respect to any real estate asset that gives rise to a significant amount of insurance
proceeds or condemnation awards; (ii) the 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 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 Partnership as a co-venturer,
member or partner sells, grants, transfers, conveys, or relinquishes its direct or indirect ownership of any real estate asset
or portion thereof, including any event with respect to any real estate asset which gives rise to insurance claims or condemnation
awards; or (iv) the 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 loan 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 in connection therewith;
or (v) the 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 investment asset not previously described in this definition
or any portion thereof.

 

		(b)	“Common Stock” means the common stock of the Company, $0.01 par value per share.
The term “Common Stock” shall, as the context requires, be deemed to refer to the class or series of Common Stock that
correspond to the class or series of Partnership Interests for which the reference to Common Stock is made.

 

		(c)	“General Partner” means the Company.

 

		(d)	“Gross Proceeds” means the aggregate purchase price of all shares of Common
Stock sold for the account of the Company through an Offering prior to the Occurrence Date, without deduction for Organization
and Offering Expenses. For the purpose of computing Gross Proceeds, the purchase price of any share of Common Stock for which reduced
selling commissions are paid to (i) Realty Capital Securities, LLC or any successor dealer manager to the General Partner or (ii)
any other broker-dealer (where net proceeds to the Company are not reduced) shall be deemed to be the full amount of the offering
price per share of Common Stock pursuant to the Registration Statement for such Offering without reduction.

 

		(e)	“Liquidity Event” means: (1) an Asset Sale involving all or substantially all
of the Assets owned directly or indirectly by the Company and distribution of the Net Sales Proceeds to the holders of the Company’s
Common Stock; (2) a Listing; or (3) a Merger, in which the holders of the Company’s Common Stock receive securities of another
entity that are listed and trading on a national securities exchange prior to, or that become listed on a national securities exchange
concurrent with consummation of the Merger, as applicable.

 

		(f)	“Listing” means the commencement of trading of the shares of the Company’s

Common Stock on a national securities exchange.

 

    	4

    	 

    

 

		(g)	“Market Value” means: (1) in the case of a Listing, the average closing price
of the shares of Common Stock over the Measurement Period multiplied by the number of shares of the Company’s Common Stock
outstanding on the day trading first commences or commenced upon a Listing; (2) in the case of a Merger, the value accorded to
the shares of the Company’s Common Stock in the applicable transaction documents governing the Merger multiplied by the number
of shares of the Company’s Common Stock outstanding immediately prior to the effective time of the Merger; and (3) in the
case of an Asset Sale that is a Liquidity Event, the Net Sales Proceeds distributed to the holders of the Common Stock. Notwithstanding
(1) above, if a definitive agreement relating to a Merger or an Asset Sale that is a Liquidity Event shall be entered into after
the shares of the Company’s Common Stock become Listed, but before the Measurement Period shall be completed, then Market
Value shall be determined with reference to the Merger or, in the case of an Asset Sale that is a Liquidity Event, the Net Sale
Proceeds distributed to the holders of the Company’s shares of Common Stock.

 

		(h)	“Measurement Period” means the period of thirty (30) consecutive trading days
during which the shares of Common Stock are eligible for trading beginning on the hundred and eightieth (180th) day
after trading in the shares of Common Stock first commences or commenced on a national securities exchange.

 

		(i)	“Merger” means any merger, reorganization, business combination, share exchange
or acquisition by any Person or related group of Persons of beneficial ownership of all or substantially all of the shares of the
Company’s Common Stock in one or more related transactions, or another similar transaction involving the Company, pursuant
to which the holders of the Company’s Common Stock receive cash or the securities of another issuer that are listed on a
national securities exchange, as full or partial consideration for their shares of Common Stock.

 

		(j)	“Net Sales Proceeds” means the aggregate proceeds paid in cash received by the
Company or the Partnership in connection with an Asset Sale, net of (i) direct costs (including legal and accounting fees, disposition
fees, sales commissions and underwriting discounts and all title and recording expenses), (ii) all federal, state, provincial,
foreign and local taxes required to be accrued as a liability as a consequence thereof, (iii) all payments made by the Company
or the Partnership on any indebtedness that is secured by the assets subject to such Asset Sale in accordance with the terms of
any lien upon or with respect to such assets or that must, by the terms of such lien or by applicable law, be repaid out of the
proceeds from such Asset Sale and (iv) a reasonable reserve for the after-tax costs of any indemnification payments (fixed or contingent)
attributable to seller’s indemnities to the purchaser undertaken by the Company or the Company or the Partnership in connection
with the Asset Sale. Upon release from reserve or escrow or payment of any amounts referred to in clause (iv) above that are released
or paid to the Company or the Partnership or any reduction in the amount of taxes required to be accrued pursuant to clause (ii)
above resulting in a payment to the Partnership, such amounts shall then be deemed to be “Net Sales Proceeds.”

 

		(k)	“Occurrence Date” means the occurrence of a Liquidity Event which is deemed
to occur (x) in the case of a Listing, on the date that trading in the shares of the Company’s Common Stock commences; (y)
in the case of a Merger, the effective time of the Merger; and (z) in the case of an Asset Sale, upon distribution of the Net Sales
Proceeds to the holders of the Company’s Common Stock.

 

    	5

    	 

    

 

		(l)	“Offerings” means the public offering of shares of Common Stock pursuant to
a Registration Statement filed with, and declared effective by, the Securities and Exchange Commission prior to the Occurrence
Date of a Liquidity Event.

 

		(m)	“Organization and Offering Expenses” means all expenses incurred by or on behalf
of the Company in connection with or in preparing the Company for registration of and subsequently offering and distributing its
shares of Common Stock in an Offering or Offerings, which may include total underwriting and brokerage discounts and commission
expenses; expenses for printing, engraving and mailing; compensation of employees while engaged in sales activity; charges of transfer
agents, registrars, trustees, escrow holders, depositaries and experts; and expenses of qualification of the sale of the securities
under federal and state laws, including taxes and fees, accountants’ and attorneys’ fees.

 

		(n)	“Priority Return” means a 6% cumulative, non-compounded, pre-tax annual return
(based on a 365-day year).

 

		(o)	“Registration Statement” means the Registration Statement on Form S-11or Form
S-3, including shares to be issued pursuant to the distribution reinvestment plan or “DRP,” filed by the General Partner
with the Securities and Exchange Commission, and any amendments thereof at any time made, relating to the Common Stock.

 

		12.	Miscellaneous. 

 

		(a)	Notices. All notices, requests, demands, waivers and other communications required or permitted
to be given under this Listing Note shall be in writing and shall be deemed to have been duly given only if delivered (i) personally
against written receipt, (ii) by facsimile transmission against facsimile confirmation, (iii) mailed by prepaid first class certified
mail, return receipt requested, or (iv) mailed by prepaid overnight courier to the addresses set forth on the signature pages hereof.
All such notices, requests, demands, waivers and other communications shall be deemed to have been given, (x) in the case of clauses
(i) and (ii) above, on the date of such delivery and (y) in the case of clauses (iii) and (iv) above, when received.

 

		(b)	Amendments; Waivers.

 

		(i)	This Listing Note may be altered, amended or waived only by prior written agreement signed by the
party or parties against whom enforcement of any alteration, amendment or waiver is sought.

 

		(ii)	No failure or delay by either party in exercising any right, power or privilege under this Listing
Note shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise
thereof or the exercise of any other right, power or privilege. Except as otherwise provided herein, no action taken pursuant to
this Listing Note shall be deemed to constitute a waiver by the party taking such action of compliance with any agreements contained
in this Listing Note. The waiver by any party of a breach of any provision hereunder shall not operate or be construed as a waiver
of any prior or subsequent breach of the same or any other provision hereunder.

 

    	6

    	 

    

 

		(c)	Successors and Assigns. Neither party may assign or transfer this Listing Note or any of
its obligations or benefits under this Listing Note (other than by operation of law) in any manner whatsoever without the prior
written consent of the other party. The provisions hereof shall be binding upon the legal representatives, successors and permitted
assigns of the Partnership and the Company, and shall inure to the benefit of the SLP and its successors by operation
of law.

 

		(d)	Governing Law. This Listing Note shall be governed by and construed in accordance with the
laws of the State of New York without giving effect to the principles of conflicts of laws thereof that would require the application
of any other law.

 

		(e)	Entire Agreement. This Listing Note and the other agreements and instruments referred to
herein embody the final, entire agreement among the parties hereto and supersede any and all prior commitments, agreements, representations,
and understandings, whether written or oral, relating to the subject matter hereof and thereof and may not be contradicted or varied
evidence of prior, contemporaneous, or subsequent oral agreements or discussions of the parties hereto. There are no oral agreements
among the parties hereto with respect to the subject matter hereof.

 

		(f)	Severability. Any provision of this Listing Note that is prohibited or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating
the remaining provisions of this Listing Note or affecting the validity or enforceability of such provision in any other jurisdiction.
The application of such invalid or unenforceable provision to persons or circumstances other than those as to which it is held
invalid or unenforceable shall be valid and be enforced to the fullest extent permitted by applicable law. To the extent any provision
of this Listing Note is determined to be prohibited or unenforceable in any jurisdiction, the Partnership and the SLP agree to
use commercially reasonable efforts to substitute one or more valid, legal and enforceable provisions that, insofar as practicable,
implement the purposes and intent of the prohibited or unenforceable provision.

 

[Signature page follows]

    	7

    	 

    

 

IN WITNESS WHEREOF, the undersigned has executed
and delivered this Listing Note as of the day and year first above written. 

 

	 	THE PARTNERSHIP:
	 	 
	 	GLOBAL NET
LEASE Operating 

Partnership, L.P.
	 	 
	 	By: 	Global Net Lease, Inc.
	 	 	its General Partner
	 	 	 
	 	 	 
	 	By: 	/s/ Scott J. Bowman	 
	 	 	Name: Scott J. Bowman
	 	 	Title: Chief Executive Officer
	 	 	 
	 	Address for Notices:
	 	 
	 	Global Net Lease Operating Partnership, L.P.

405 Park Avenue

New York, New York 10022

Facsimile No.: (212) 421-5799

Attention: Scott Bowman
	 	 	 
	 	 	 

  

AGREED TO AND ACCEPTED:

 

SLP:

 

Global Net Lease
Special Limited Partner, LLC

 

	By: 	AR Capital Global Holdings, LLC,
	 	its Managing Member
	 	 
	 	 
	By: 	AR Capital, LLC
	 	its Member
	 	 
	By: 	/s/ William M. Kahane	 
	 	Name: William M. Kahane
	 	Title: Authorized Signatory

  

Address for Notices:

 

Global Net Lease Special Limited Partner, LLC

405 Park Avenue

New York, New York 10022

Facsimile No.: (212) 421-5799

 

 

 

    	8

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