Document:

EXCLUSIVE

MANAGEMENT AGREEMENT 

 

This Management Agreement ("Agreement")
is made this 15th day of December, 2011 by and between ARHC MNPERIL001, LLC, a Delaware limited liability company ("Owner")
having its principal place of business at 106 York Road, Jenkintown, Pennsylvania 19046, and Dasco Realty Illinois LLC, an Illinois
limited liability company or its affiliates ("Agent") having its principal place of business at 11360 Jog Road, Suite
200, Palm Beach Gardens, Florida, 33418, hereinafter collectively referred to as the "Parties".

 

RECITALS

 

		A.	Owner owns that certain property more commonly known as The Methodist Services Office Building, (the "Facility"),
located in Peoria, IL.

 

		B.	Agent is experienced in the management, construction, marketing, leasing, maintenance of accounting for and general operation
of the Facility.

 

		C.	Owner desires to engage Agent to manage the Facility on its behalf and Agent agrees to manage the Facility pursuant to the
terms of this Agreement.

 

AGREEMENT

 

NOW THEREFORE, in consideration
of the mutual promises, covenants and agreements herein contained, and for other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the Parties agree as follows:

 

ARTICLE I

 

APPOINTMENT OF AGENT

 

Owner hereby appoints Agent as its exclusive
managing agent for the Facility and Agent accepts such appointment.

 

ARTICLE II 

 

GENERAL MANAGEMENT AND OPERATIONS 

 

2.01
General Management Services. Subject to the provisions of this Agreement, Agent shall
manage the Facility on behalf of Owner. In furtherance thereof, Agent shall:

 

		a.	Manage the Facility in accordance with the terms and conditions of any mortgage, or other similar encumbrance to which the
Facility is subject, provided that copies of said encumbrances and adequate funds, to the extent applicable, have been provided
to Agent;

 

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		b.	Implement administrative, accounting, budgeting, marketing, personnel, and operational policies
and practices relating to or affecting Facility operations, as further described in this Article II; and

  

		c.	At Owners cost and expense, arrange for the Facility to be furnished with water, electricity, gas,
power, telephone, fire, vermin extermination, trash removal, equipment maintenance, security and such other services as are necessary
for the proper operation and maintenance of the Facility as contemplated by this Agreement and consistent with any lease obligations.

 

2.02 Operating
Plan and Budget. Agent shall, within 30 days of the signing of this Agreement and on or before September 30 of each year thereafter,
prepare and deliver to Owner a preliminary operating plan and budget for the next ensuing operating year ("Operating Plan
and Budget") setting forth in reasonable detail (detailed line item backup) an estimate of the income and expense of the Facility
for the next ensuing operating year, including, but not limited to, estimated expenditures for all Capital Improvements required
by Sections 2.03(b) and 2.03(c). As used in this Agreement, the term "operating year" shall mean each calendar year during
the term of this Agreement, or a portion thereof if applicable to the first or last operating year. The Operating Plan and Budget
shall, subject to the provisions of this Agreement, be submitted to Owner for approval, which approval shall be deemed to have
been obtained in the event that Owner does not provide Agent with objections thereto within forty-five (45) days after Owner's
receipt thereof from Agent.

 

2.03 Maintenance. Repairs and Capital Improvements. 

 

		a.	Agent shall cause the Facility to be maintained and repaired in accordance with the Operating Plan
and Budget for the current operating year. Such maintenance and repair services shall include, but not be limited to, cleaning,
purchase of supplies, painting, decorating, plumbing, carpentry, grounds care, and such other maintenance and repair work as may
be necessary.

 

		b.	In furtherance of Section 2.03a Agent shall:

 

		(i)	Give special attention to preventive maintenance and, to the extent requested by Owner, maintain
preventive logs (in such detail as reasonably requested by Owner). Where and when possible, the services of regular maintenance
employees will be budgeted for and used;

 

		(ii)	On owner's behalf, Agent shall contract with qualified independent contractors for the maintenance
and repair of air-conditioning systems, and with the prior written approval of Owner (except in the case of emergency) for extraordinary
repairs beyond the capability of regular maintenance employees; and

 

Systematically and promptly receive
and investigate all service requests from tenants; take such action thereon as may be justified, and keep records of the same.
Emergency requests will be received and serviced as appropriate. Complaints of a material nature will be reported to Owner after
investigation.

 

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		c.	Agent shall arrange for all necessary Capital Improvements to be made to the Facility (as used
in this Agreement, the term "Capital Improvements" shall mean those items which for accounting purposes may not be expensed
but must be capitalized according to generally accepted accounting principles in effect on the date hereof including but not limited
to tenant improvements and any and all modernization or rehabilitation projects in, on, or around the Facility); provided. however.
that:

 

		(i)	Any Capital Improvement in excess of $5,000 in any one instance (or related Capital Improvements
that in the aggregate exceed $5,000) must have the prior approval of Owner (which approval shall be required notwithstanding that
such Capital Improvement is included in the current approved Operating Plan and Budget or that such Capital Improvements are required
under any tenant lease);

 

		(ii)	All permits, licenses and authorizations required to be procured in connection with any Capital
Improvement shall be procured, or caused to be procured, by Agent as the same are required;

 

		(iii)	Any Capital Improvement shall be made promptly in a good and workmanlike manner; and

 

		(iv)	The cost of any Capital Improvement shall be paid promptly, or caused to be paid by Agent as directed
by Owner with Facility, Capital Reserve Account or Owner-supplied funds so that the Facility shall at all times be free from any
lien, encumbrance, mortgage, chattel mortgage, conditional sales agreement, title retention agreement or other charge for labor,
services or materials supplied or claimed to have been supplied to the Facility and used or expended for such Capital Improvement.
Any lien, encumbrance, etc. arising out of disputes as to workmanship, quality of or specifications of any Capital Improvement
shall be subject to a reasonable period of time to cure any such violations, the ultimate dispensation of which will be at the
discretion of Owner.

 

		d.	Notwithstanding any of the foregoing provisions, the prior notification of the Owner shall not
be required in connection with the maintenance and repair of the Facility for emergency repairs involving manifest danger to persons
or property, or as required to avoid suspension of any necessary service to the Facility. In all such cases, Agent shall notify
Owner as promptly as possible.

 

		e.	For any services for the Facility managed by Agent pursuant to this Agreement, Agent is required
to follow certain global minimum safety requirement promulgated from time to time by affiliates of Agent, which shall be conveyed
to Owner.

 

2.04 Rentals. Collections and
Bank Accounts. During the term of this Agreement, Agent shall:

 

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		a.	Owner and/or Owner's lender shall designate a bank (the "Bank") in which the rents and
other revenues from the Facility shall be deposited (the "Owner's Operating Account"). Owner shall periodically transfer
funds from the Owner's Operating Account into a client trust account maintained by the Agent and named as follows: "ARHC Odessa
Building Operating Account" (the "Bank Account"). The Bank Account will also be used to pay all approved and authorized
expenses for the Facility, as set forth herein. Agent is authorized as "Agent for Owner" to draw on the Bank Account
in accordance with the provisions of this Agreement, provided, however, Owner shall have the right to revoke such authorization
at any time during the Term of this Agreement.

 

		b.	Collect, deposit, and disburse security deposits and advance rents, as applicable, in accordance
with the terms of each lease and state law. Security deposits and advance rents will be deposited by Agent in a bank designated
by Owner and in the Owner's name.

 

		c.	With the prior consent of Owner (other than in the ordinary course of business) terminate tenancies,
sign and serve such notices as are required or deemed appropriate by Agent; institute and prosecute actions to oust tenants and
recover possession of the leased premises, sue for and recover rent, and when expedient, settle, compromise and release such actions
or suits or reinstate such tenancies. The taking of any such action and cost thereof shall be borne by Owner or Facility.

 

		d.	At Owner's sole discretion, maintain a Capital Reserve Account in accordance with Section 2.05(iv).

 

2.05 Authority To Disburse
Funds. 

 

a.            From
the monies in the Bank Account, Agent shall be authorized to make the following disbursements promptly when
payable:

 

Reimbursement to Agent for compensation
payable to employees and for taxes and assessments payable to local, state, and federal govermnents in connection with the employment
of such personnel.

 

		(ii)	A single aggregate payment required to be made monthly by the Owner to the Mortgaczee.

 

		(iii)	All sums due and payable by Owner as expenses of the Facility to be incurred by Agent under the
terms of this Agreement, including compensation payable to Agent.

 

		(iv)	A transfer of funds into a separate account for the purpose of providing a reserve for Capital
Improvements using_ funds available from the monthly net cash flow of the Facility operations and in accordance with the current
year Operating Plan and Budget. As used in this Agreement, the term "net cash flow" shall mean cash available after the
payment of costs and expenses enumerated in Sections

 

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2.05(a)(i) through 2.05(a)(iii). This
account will be carried in the Owner's name and designated of record as the Capital Reserve Account. Additionally, Agent shall
be authorized to transfer monies from the Capital Reserve Account into the Bank Account to make disbursements for Capital Improvements
in accordance with Section 2.03(c).

 

 (v)Distributions
to Owner no more frequently than once per month.

 

		b.	In the event that the balance in the Bank Account becomes at
any time insufficient to pay disbursements when due and payable, Agent shall immediately inform Owner of the amount of the deficiency.
Owner shall thereafter remit to the Agent sufficient funds to cover the deficiency. In no event shall Agent be required to use
its own funds to pay such deficiencies.

 

2.06 Accounting. Books. Records and Financial Statements.

 

		a.	Agent shall establish and maintain a system
of books of account and other records relating to or reflecting, the results of the operation of the Facility in accordance with
generally accepted accounting principles applied on a consistent basis. All such books of account and other records shall be approved
as to form by Owner and made available to Owner upon reasonable advance notice for examination, audit, inspection and copying.
Agent shall also maintain depreciation and amortization schedules for the Facility and Capital Improvements on a tax basis. Agent
acknowledges that Owner is a subsidiary of a company which is required to comply with rules and regulations of the Securities and
Exchange Commission ("SEC"). Agent also acknowledges that Owner's primary accounting system is MRI. Owner, at Owner's
expense, shall provide Agent access to its MRI system for the purposes necessary to fulfill its accounting, and reporting requirements
under this Agreement. Agent will assist Owner in the transfer of necessary monthly accounting data to facilitate the consolidation
of the results of the Facility's operations to meet the Owner's SEC reporting requirements.

 

		b.	On a monthly basis, the Agent will
furnish a report summarizing the financial operations of the Facility ("Financial Report"). This report will be due to
the Owner on the 5th Business Day of the month and will include operations for the previous month end. The Financial
Report will include the following.:

 

		a)	Balance Sheet and Reconciliation of Assets and Liabilities

		b)	Quarter vs. Quarter at the end of each Quarter if Owner's MRI system will accommodate such reports

		c)	Actual vs. Prior Month Operating Statement if Owner's MRI system will accommodate such reports

		d)	Actual vs. Budget Operating, Statement

		e)	Accounts Receivable Aging Report and report of follow-up with tenants and action items for all past due receivables

		f)	Rent Roll

 

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		g)	Cash Receipts Detail

		h)	Cash Disbursement Detail

		i)	Security Deposit Ledger

		j)	Current Month General Ledger

		k)	Current Month Bank Reconciliation

		1)	Lockbox and other banking services

		m)	Monthly Closing Process and Procedures provided by Owner

		n)	Year end and/or periodic Tenant CAM Reconciliation/True-Ups and monthly accruals to True-up Tenant CAM reconciliation to Actuals

 

Non-standard Accounting Services 

If Owner requests Agent
to perform accounting services in addition to the standard services provided by Agent, there shall be an additional charge. The
cost shall be mutually agreed upon in writing prior to the delivery of these additional services. The following, are examples of
additional services/reporting information that would necessitate an additional charge to the Owner:

 

		a)	Issuance of specially formatted or non-standard reports in place of or in addition to standard reporting.

		b)	Management of negative cash flow for the Facility.

		c)	Management of manual check signing process or owner co-signature requirements instead of our standard
facsimile signature cartridge. Checks will be signed on facsimile signature, but will be signed manually if this feature is not
in place at the commencement of this Agreement.

		d)	Management of loan funding process with Owner and lender.

		e)	Maintenance of detailed fixed asset sub-ledgers and corresponding depreciation and amortization schedules.

		f)	Maintenance of "Ownership level" or Joint Venture transactions of the Facility books and records.

 

These reports shall be
in a format reasonably approved by Owner and shall include, among other items, each tenant's name, gross monthly rentals,
prepaid rents, total delinquent rents, vacancies, occupancy reports, miscellaneous income and security deposits received, an operating
statement for the month with a year to date comparison on a line by line basis to the Operating Plan and Budget, variances therefrom,
calculation of the monthly management fee, and a balance sheet. On a quarterly basis, Agent shall provide any additional schedules
that are reasonably necessary to enable Owner to consolidate Facility account balances for Owner's SEC reporting requirements.

 

		c.	Agent acknowledges that Owner is subject to the internal control documentation and testing laws
under Section 404 of the Sarbanes Oxley Act of 2002. Agent shall assist Owner in the documentation of Agent's internal controls
over accounting, and reporting procedures and allow Owner and its auditors to test Agent's internal controls as necessary for the
purpose of complying, with SEC rules and regulations.

 

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2.07 Personnel. 

 

		a.	Agent
shall select such managerial, maintenance, bookkeeping, clerical and other employees as it determines to be necessary for the operation
of the Facility (it is acknowledged that, in some cases, maintenance support is contracted with third parties). Such positions
and compensation amounts shall be set forth in the Operating Plan and Budget.

 

		b.	All personnel shall be employees of Agent but employed at Owner's cost and expense. Agent shall be responsible for hiring,
discharge or replacement of said employees.

 

2.08 Governmental
Compliance. The Owner represents that to the best of its knowledge, the Facility and equipment comply with all statutes, ordinances,
laws and regulations of applicable governmental bodies and public authorities and authorizes the Agent to disclose the name of
the Owner or the ownership of the Facility to any such officials. In the event it is alleged or charged that any building on the
Facility or any equipment therein or any act or failure to act by the Owner with respect to the Facility or the sale, rental, or
other disposition thereof fails to comply with constitutional provisions, statutes, ordinances, laws, or regulations of any governmental
body or any order or ruling, of any public authority or official thereof having or claiming, to have jurisdiction thereover, and
the Agent, in its sole and absolute discretion, considers that the action or position of the Owner or registered managing agent
with respect thereto may result in damage or liability to the Agent, the Agent shall have the right to cancel this Agreement at
any time by written notice to the Owner of its election so to do, which cancellation shall be effective upon the service of such
notice. Such notice may be served personally or by registered mail, on or to the person named to receive the Agent's monthly statement
at the address designated for such person, and if served by mail shall be deemed to have been served when deposited in the mail.
Such cancellation shall not release the indemnities of the Owner set forth in this Agreement and shall not terminate any liability
or obligation of the Owner to the Agent for any payment, reimbursement, or other sum of money then due and payable to the Agent
hereunder.

 

Subject to the
other provisions of this Agreement, at Owner's expense, Agent shall use reasonable efforts to cause the Facility to comply with
federal, state and municipal laws, all known ordinances, regulations and orders relative to the leasing, use, operation, repair
and maintenance of the Facility and with the rules, regulations or orders of the local Board of Fire Underwriters or other similar
body. Agent shall use reasonable efforts to remedy the violation of any such law, ordinance, rule, regulation or order of which
it has actual knowledge and which violation occurs after the date hereof, at Owner's expense

 

2.09 Licenses and Authorizations.

 

		(a)	Agent shall obtain and keep in full force and effect all licenses,
permits, consents and authorizations as may be necessary for the maintenance, operation, management, repair, servicing or occupancy
of the Facility. All of such licenses, permits, consents and authorizations shall be in the name of Owner, if required in writing
by Owner.

 

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		(b)	Agent shall obtain and keep in full force and effect all real estate and business licenses and governmental authorizations,
at Owner's expense, (including qualifications to do business) as may be necessary for the proper performance by Agent of its duties
and obligations under this Agreement. All such licenses and authorizations shall be in the name of Agent.

 

ARTICLE III 

 

MANAGEMENT FEES. AND REIMBURSABLE EXPENSES

 

3.01 Management Fee. 

 

Owner shall pay Agent a Management
Fee, for all of the services provided by Agent under this Agreement, equal to the greater of Two Thousand and No/100 Dollars ($2,000.00)
per month or Two and One-half Percent (2.5%) of all monthly gross receipts from the operation of the Facility during the period
this Agreement remains in effect or such other amount agreed to by tenant as a pass through. Notwithstanding the foregoing, the
Management Fee shall not exceed $3,054.25 per month or such other amount agreed to by tenant so long as Agent is providing its
services in accordance with Section 5 (c) of those certain leases by and between Owner and Methodist Services. Inc., as tenant,
dated July 7, 2008, as amended. The term "gross receipts," as used herein, includes, but is not limited to, (i) all gross
amounts actually collected from tenants on behalf of the Facility pursuant to any lease related document, including fixed rents,
percentage rents, and cost of living adjustments; (ii) all gross amounts collected from licenses and concessionaires, including
amounts collected in respect of vending machines, laundry machines, and coin-operated telephones; (iii) all proceeds of rents or
business interruption insurance collected by the Owner, to the extent in lieu of any amounts provided for in subdivisions (i) and
(ii) above; (iv) receipts from the operations of any parking garages serving the Facility (to the extent not subcontracted to a
third party); and (v) real estate tax, operating expense, or similar escalation charges or charges for electricity or over-time
HVAC services (whether said charges for electricity or over-time HVAC services are included in fixed rents), but shall not include
(1) charges to tenants for above-standard work reimbursed at the time of construction; (2) tenant security deposits and interest
thereon (except to the extent applied toward the payment of rent); (3) interest on any funds of Owner's, whether or not held by
Agent, (4) insurance proceeds (except for business interruption insurance); (5) amounts received on account of abatement, reduction
or refund of taxes; (6) condemnation awards; (7) discounts and dividends on insurance policies; (8) proceeds from the sale, exchange,
financing, or refinancing of all or any portion of the property; and (9) applicable state sales tax.

 

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3.02 Reimbursement
of Costs and Expenses. In addition to the costs and expenses to be paid for out of the Bank Account or Owner-supplied funds
as specifically enumerated in Sections 2.01c, 2.03c(iv), and 2.05a(i), 2.05a(ii), 2.05a(iii), 2.05a(iv) and 2.05a(v), Owner shall
reimburse Agent out of the Bank Account for all costs and expenses incurred by Agent for Owner's account in the ordinary course
of business under the terms and provisions of this Agreement relating to:

 

		a.	Personnel costs incurred to operate the Facility as set forth in the Operating Plan and Budget;

 

		b.	Auditing, expenses, finance and accounting materials and services, and tenant rent payment statements;

 

		c.	Maintenance and repairs;

 

3.03 Costs
and Expenses of Agent. Except as otherwise expressly provided herein, all costs and expenses incurred by or on behalf of Agent
in performing its obligations hereunder shall be borne solely by Agent, including, without limitation, the following expenses or
costs in connection with the operation and management of the Property:

 

		(a)	Cost of gross salary and wages, payroll taxes, insurance, worker's compensation, pension benefits
and any other benefits of Agent's supervisory and home and recfional office personnel;

 

		(b)	Standard accounting, and reporting services, as described under Exhibit B, as such services are
considered to be within the reasonable scope of Agent's responsibilities to Owner, and except for such services as are provided
by persons for whom Agent is reimbursed pursuant to Section 9.2(a);

 

		(c)	Cost of forms, stationery, ledgers and other supplies and equipment used in Agent's home office
or regional home office, except for such items as are specifically required for, or proprietary to, the Property;

 

		(d)	Cost or pro rata cost of telephone and general office expenses incurred on the Property by Agent
for the operation and management of properties other than the Property;

 

		(e)	Cost or pro rata cost of data-processing equipment, whether located at the Agent's home or regional office;

 

		(f)	Cost or pro rata cost of data processing provided by computer service companies not performed for the property;

 

		(g)	Cost of all bonuses, incentive compensation, profit sharing, or any pay advances to employees employed
by Agent in connection with the operation and management of the Property, except for payments to individuals specifically approved
in writing by Owner in advance; or in the annual budget.

 

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		(h)	Cost of automobile purchases and/or rentals, unless the automobile is being provided by Owner;

 

Costs attributable to claims, losses
and liabilities arising from (i) any breach of this Agreement by Agent or (ii) the negligence, recklessness, willful misconduct,
fraud or criminal acts of Agent's employees, agents, contractors, subcontractors or associates;

 

		(j)	Cost of comprehensive crime insurance purchased by Agent for its own account;

 

		(k)	Costs for meals, travel and hotel accommodations for Agent's home or regional office personnel
who travel to and from the Property, unless expressly authorized by Owner.

 

		(1)	Agent shall pay all taxes and special assessments affecting the Property as they become due and
before any delinquency date. Owner shall pay all insurance premiums and mortgage payments affecting the Property, except that Owner
reserves the right, at its option, to give written instructions to Agent to make any such payments from the Bank Account.

 

3.03 Insufficient
Funds in Bank Account. Agent shall not be required to expend any of its own funds for disbursements chargeable to Owner. If
there are insufficient funds in the Bank Account for a disbursement, Agent may, after notifying Owner of such insufficiency in
writing, defer making any disbursement until Owner has furnished the funds necessary for such disbursement.

 

3.04 Nonpayment.
If Agent fails to make any payment when required or fails to perform any act required under this Agreement, then Owner, after 10
days' written notice to Agent (or, in the case of any emergency, without notice) and without waiving or releasing Agent from any
of its obligations hereunder, may (but shall not be required to) make such payment or perform such act. Owner shall have (in addition
to any other right or remedy) the right to offset all fines, penalties and additional costs and expenses incurred in exercising
its rights under this Section 3.04 against any sums due or to become due to Agent, including, without limitation, the Management
Fee and any costs and expenses reimbursable by Owner pursuant to Section 3.02.

 

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3.05 Construction
Management. For Capital Improvements at the Facility, the Agent shall perform (or cause the performance of) said construction
in accordance with plans, specifications, and a budget mutually agreeable to Owner and Agent. No additional  compensation
shall be payable to Agent with respect to any Capital Improvements that in any one instance are equal to or less than $15,000.
As compensation therefor with respect to Capital Improvements that in any one instance exceed $15,000, the Agent shall receive
a fee based on the aggregate cost of construction paid for by Owner (labor and materials) of the job as follows:

 

	Construction Cost	 	Fee - % of Construction Cost	 
	$15,000 — $25,000	 	By Mutual Agreement	 
	$25,001 — $100,000	 	5% 
	$100,001 - $250,000	 	4%	
	$250,001 - $500,000	 	3%	
	Greater than $500,000	 	 	By Mutual Agreement	 

  

The Owner shall pay the costs for
material and labor, in stages reasonably agreeable to Owner and Agent, upon receipt by the Owner of evidence reasonably satisfactory
to the Owner that the work for which payment has been requested has been performed. The Agent shall carry insurance relating to
the construction reasonably satisfactory to the Owner.

 

The Agent shall not make any structural
changes to the building or make any major alterations or additions in or to the building or equipment therein, or incur any expense
chargeable to the Owner other than expenses related to exercising the express powers above vested in the Agent without the prior
written direction of persons designated from time to time by Owner.

 

3.04 Payment
of Fees and Expenses. All fees and reimbursement of expenses payable to Agent under Article III shall be drawn out of the Bank
Account and paid to Agent on the last day of the current month.

 

ARTICLE IV

 

TERM AND TERMINATION

 

4.01 Term of Agreement. 

 

		a.	The services to be provided by Agent under this Agreement shall be for a term of five (5) years,
commencing on the date listed above and terminating, unless otherwise extended as provided herein, on the 60th month
thereafter.

 

		b.	This Agreement shall continue in force after the expiration of the initial term established in
Section 4.01a or a successive term hereunder, upon the same conditions for a successive term or terms, each one year in duration
unless either Party gives written notice of cancellation to the other not less than Sixty (60) days prior to the expiration of
the initial term or any successive term.

 

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4.02 Termination
for Cause. If at any time during the term of this Agreement any of the following events ("Event of Termination")
shall occur, then Owner may, at its option, terminate this Agreement by giving notice to Agent ("Notice of Termination")
specifying a date, not earlier than Fifteen (15) days after the giving of such notice, when this Agreement shall terminate:

 

		a.	If Agent shall breach any material representation, warranty or covenant contained in this Agreement,
or shall default in the performance of any such obligation hereunder and shall not commence to and diligently pursue cure of such
default within 10 business days of such written notice by Owner;

 

		b.	If Agent shall apply for or consent to the appointment of a receiver, trustee or liquidator of
all or a substantial part of its assets or make a general assignment for the benefit of its creditors, or file a voluntary petition
in bankruptcy or a petition seeking reorganization, composition, arrangement with creditors, liquidation or similar relief under
any present or future statute, law or regulation, or file any answer admitting the material allegations of a petition filed against
it in any such proceeding, or be adjudicated as bankrupt or insolvent, or take any action looking toward dissolution; or

 

		c.	If any final order, judgment or decree (that is, an order, judgment or decree affirmed on appeal
to a court of last resort or after the expiration of any period to appeal) shall be entered without the application, approval or
consent of Agent by any court of competent jurisdiction, approving a petition seeking reorganization, composition, arrangement
with creditors, liquidation or similar relief under any present or future statute, law or regulation with respect to Agent, or
appointing a receiver, trustee or liquidator of all or a substantial part of Agent's assets and such order, judgment or decree
shall continue unstayed and in effect for an aggregate of Sixty (60) days (whether or not consecutive).

 

		d.	If any building on the Property is destroyed and Owner, for any reason, elects not to rebuild the
building., then this Agreement shall terminate as of the date of notice to Agent that Owner has elected not to rebuild the building
after such destruction.

 

		e.	In the event there is a condemnation of all or any substantial part of the Property, then this Agreement shall automatically
terminate as of the date of such taking.

 

4.03 Termination
by Owner Upon Sale. In the event that Owner sells the Facility to an unaffiliated (directly or indirectly) third party, Owner
shall have the right to terminate this Agreement effective upon sale, said right to be exercised within Ten (10) business days
of notice from Owner as to the identity of the new Purchaser.

 

4.04 Actions
to be Taken on Termination. Upon termination of this Agreement for any reason, the Agent shall deliver the following to the
Owner's duly appointed agent on or before ten (10) days following the termination date:

 

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		a.	A final accounting, reflecting the balance of income, expenses, assets and liabilities for the Facility as of the date of termination;

 

		b.	Any balance or moneys due to the Owner or tenant security deposits, or both, held by the Agent with respect to the Facility;
and

 

		c.	Originals of the records, contracts, drawings, leases, correspondence, receipts for deposits, unpaid
bills, summary of all leases in existence at the time of termination, and other papers or documents which pertain to the Facility.
Such data and information and all such documents shall at all times be the property of the Owner, subject to the right of the Agent
to photocopy same.

 

Any fees and amounts due the Agent
at termination shall be paid simultaneously with delivery of items set forth in Sections (a), (b) and (c) immediately above together
with a termination expense fee of $1,000.00.

 

ARTICLE V

 

ASSIGNMENTS 

 

5.01      By Agent.
Agent shall not assign, transfer or convey all or any of its right, title and interest under this Agreement to any entity
of which is not affiliated (directly or indirectly) with Lend Lease DASCO, LLC, without Owner's prior approval which shall not
be unreasonably withheld.

 

5.02 By Owner.
Owner shall have the right, without Agent's approval, to assign, transfer or convey its right, title and interest in the Facility.-

 

b.

 

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ARTICLE VI

 

INDEMNIFICATION

 

6.01Indemnification.

 

		(a)	Owner
shall indemnify, defend (using counsel acceptable to Agent) and hold harmless Agent and their respective affiliates, directors, officers, employees, agents and representatives from and against any
and all liabilities, obligations, claims, losses, awards, judgments, settlements, demands, damages, costs, penalties and fees
(including attorneys' fees) (as used in this Article VI, "Claims") to the extent attributable to or in connection with
the Property, the management of the Property, or the performance or exercise by Agent of the duties, obligations, powers, or authorities
herein, except to the extent Agent is obligated to indemnify Owner pursuant to Section 6.01(b) below.

 

		(b)	Agent agrees to indemnify- and hold harmless Owner
and its affiliates, from and against any and all Claims to the extent attributable to (i) any acts or omissions of Agent which have been held to be grossly
negligent and are not otherwise insured under property or liability policies, required to be maintained by Owner, or (ii) any acts
of Agent that are beyond the scope of Agent's authority hereunder. However, it is agreed that, under no circumstances shall Agent
be held liable to Owner or to any other party for loss or damage arising out of alleged or actual terrorist acts.

 

		(c)	"Indemnified Party" and "Indemnitor" shall mean Agent and Owner, respectively, as to Section
                                                                6.01(a) and shall mean Owner and Agent, respectively, as to Section 6.01(b). If any action or proceeding is brought against
                                                                the Indemnified Party with respect to which indemnity may be sought under this Section 6.01, the Indemnitor, upon
                                                                written notice, from the Indemnified Party, shall assume the investigation and defense thereof, including the employment of
                                                                counsel and payment of all reasonable expenses. The Indemnified Party shall have the right to employ separate counsel in any
                                                                such action or proceeding and to participate in the defense thereof, but the Indemnitor shall not be required to pay the fees
                                                                and expenses of such separate counsel, unless such separate counsel is employed with the written approval and consent of the
                                                                Indemnitor.

 

6.0 2Waiver of Claims.
Notwithstanding anything to the contrary contained herein, Owner and Agent each hereby waives its rights of recovery against
each other and its respective agents, officers and employees for any losses or damage that are insured against or required to
be insured against under this Agreement or with respect to the Property. Such waiver shall apply regardless of whether the loss
or claim is caused in whole or in part by the acts or omissions of a released party, and regardless of whether the waiving party
maintains a third party policy against, or self-insures, all or any portion of the risks required to be insured against hereunder.
Each of Owner and Agent agree to make such disclosure to its insurance carrier(s) and to use best efforts to obtain any necessary
consents or endorsements to effect the foregoing.

 

    	14

    	 

    

 

6.03 Waiver
of Damages. Notwithstanding anything to the contrary contained herein, neither Owner or Agent shall be liable for any lost
or prospective profits or any other indirect, consequential, special, incidental, punitive or other exemplary losses or damages,
whether in tort, contract or otherwise, regardless of the foreseeability or the cause thereof, that would not otherwise be covered
under the standard liability or property insurance forms required of the parties hereunder.

 

6.04Owner. For the purposes of this Article VI, the
term "Owner" shall be construed as meaning Owner, Owner's Representative and Owner's Asset Agent, and their respective
affiliates, directors, officers, employees, agents and representatives.

 

6.05 This Article VI shall survive expiration or termination
of this Agreement.

 

ARTICLE VII 

 

MISCELLANEOUS 

 

7.01 Bids and Purchase Discounts.
Rebates or Commissions. Within Agent's scope of authority under this Agreement:

 

		a.	Agent shall obtain contract materials, supplies and services on the terms most advantageous to Owner, and secure and
                                                               credit to the Facility all discounts, rebates or commissions. All goods and services purchased from individuals or companies
                                                               affiliated with Agent shall be purchased at costs not to exceed those that would be incurred in an arms length purchase of
                                                               said goods and services.

 

		b.	Agent shall solicit written cost estimates (i.e. bids) from at least three contractors or suppliers for any work
                                                               item (excluding service maintenance contracts) which Agent estimates will cost $15,000 or more and for any contract or
                                                               ongoing supply or service arrangement which is estimated to exceed $15,000 per year. Agent shall accept the bid
                                                               which represents the most advantageous price taking into consideration the bidder's reputation for quality of workmanship and
                                                               materials and timely performance and the time frame within which the service or goods are to be provided.

 

7.02 Agent's
Authority to Bind Owner. Notwithstanding anything in this Agreement to the contrary, Agent shall have no authority to execute
any lease on behalf of the Owner. Owner shall provide Agent with a sample form lease it intends to use for the Facility. If Agent
executes such a lease agreement without Owner's written consent in violation of this Section 7.02, then Agent shall be in breach
of this Agreement and shall be fully responsible for all damages and expenses incurred by Owner with regard to Agent's breach including
attorneys' fees and other costs and expenses incurred by Owner to enforce this provision. In addition, Agent shall have no authority
to bind owner in respect to a sale of the Facility, and no commission shall be payable to Agent in the event of a sale of the Facility
without the express written consent of Owner.

 

7.03[Intentionally Omitted]

 

    	15

    	 

    

 

7.04 Governing
Law. The Parties agree that all disputes relating to the performance and/or interpretation of any term or provision of this
Agreement shall be governed by the laws of Texas.

 

7.05 No Waiver
of Breach. No failure by Agent or Owner to insist upon the strict performance of any covenant, agreement, term or provision
of this Agreement, or to exercise any right or remedy consequent upon a breach thereof, shall constitute a waiver of any such breach
or any subsequent breach of such covenant, agreement, term or provision. No waiver of any such breach shall affect or alter this
Agreement, but each and every covenant, agreement, term and provision of this Agreement shall continue in full force and effect
with respect to any other then existing or subsequent breach thereof.

 

7.06 Severability
of Provisions. If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to
any extent, be invalid or unenforceable, the remainder to this Agreement and the application of such term or provision to persons
or circumstances other than those as to which it is held invalid or unenforceable, as the case may be, shall not be affected thereby,
and each term and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.

 

7.07 Notices.
All notices, requests, approvals, demands and other communications required or permitted to be given under this Agreement shall
be in writing and shall be deemed to have been duly given and to be effective upon hand delivery, depositing, in the United States
mail as registered or certified matter, postage prepaid, return receipt requested, or delivery to an independent overnight courier,
addressed to each Party at the address first set forth above or to such other address as any Party may give notice to the other
Party from time to time.

 

7.08 Limitation
on Pledging, Owner's Credit. Agent shall not borrow any money or execute any promissory note, bill of exchange or other obligation,
mortgage or encumbrance in the name and on behalf of Owner to pledge the credit of Owner without Owner's prior written consent
except for purchases made in the ordinary course of business in the management of the Facility within the scope of this Agreement.

 

7.09 Counterparts.
This Agreement may be executed in several counterparts, each of which shall be an original, but all of which shall constitute but
one and the same instrument.

 

7.10 Amendments.
Neither this Agreement nor any term or provision hereof may be changed, waived, discharged or terminated orally, but only by an
instrument in writing, signed by the Party against which the enforcement of the change, waiver, discharge or termination is sought.

 

7.11Schedules. {Intentionally Omitted}.

 

7.12 Attorney's
Fees. In the event either of the Parties hereto shall institute any action or proceeding against the other Party relating
to this Agreement, the unsuccessful party in such action or proceeding shall reimburse the successful party for its
disbursements incurred in connection therewith and for its reasonable
attorney's fees as fixed by the court.

 

    	16

    	 

    

 

ARTICLE VIII 

 

INSURANCE 

 

8.01 Insurance Covering. the Property and its Management.

 

		(a)	It is the intention of the parties to secure the broadest and most cost-effective insurance available
to cover, defend and protect Owner and Agent in the operation of the Property, including any project or construction management
services performed relating to the Property. Therefore, Owner shall maintain the following insurance during the Term:

 

		(i)	"All risk" direct damage property insurance for the Property
on a replacement cost basis. If the Property is under construction, "all risk" builder's risk insurance shall be carried
covering, the full cost of construction.

 

Commercial general liability insurance
(current ISO form CG 00 01) on an "occurrence" basis in an amount not less than $10.000.000 each occurrence, which may
be satisfied through primary and umbrella coverage.

 

		(iii)	Loss of rental income, business interruption and extra expense coverage or similar insurance protecting.
against lost income due to damage to the Property.

 

		(iv)	Boiler and machinery insurance covering the building, fixtures and equipment located at the Property
for mechanical failure or explosion of pipes or boilers (such insurance to include loss of use coverage/business interruption due
to such failures).

 

All policies providing for such coverage
shall waive all the insurer's right of subrogation against Agent and its affiliates, and under (ii) above, shall include Agent
as a real estate manager and insured by definition. Owner shall furnish Agent certificates of insurance evidencing the insurance
coverage required by this Section. Such insurance shall be the primary insurance for claims arising, at or on the Property and
any policy of Agent shall be excess and non-contributing in all respects. Agent shall be included as a real estate Agent on the
commercial general liability and umbrella insurance policies. Any deductibles or self-insured retentions associated with the policies
will be wholly for the account of Owner and, with respect to Agent, will be treated as though it were first dollar insurance.
To the extent that Owner or the Property has insurance covering any environmental liability at the Property, Owner shall undertake
to have Agent added as an additional insured to such policy.Should Owner's insurance coverage be cancelled or non renewed
for any reason, Owner shall endeavor to provide Agent 30 days prior written notice of such cancellation or non renewal. Upon Owner's
request, Agent shall refer Owner to a qualified insurance agent or broker to assist Owner in procuring such property, liability
or other related insurance for Owner relating to the Property, at Owner's sole expense. In connection with any such referral,
Owner acknowledges that (i) Agent does not provide a guaranty for the services of the agent or broker or the types or amounts
of insurance provided under any issued policies, (ii) Agent is not responsible for the financial viability of the insurance company
issuing any such policies and (iii) Agent or an affiliate thereof may receive a third party referral fee in connection with the
arrangement. 

 

    	17

    	 

    
 

		(b)	During the Term, Agent shall maintain the following, insurance relating, to its services hereunder:

 

	INSURANCE	LIMITS
	 	 
	Workers' Compensation	As required by statute in the state where the Property is located and where Agent has employees performing services pursuant to this Agreement.
	 	 
	Employer's Liability	$1,000,000 per accident
	 	 
	Commercial	 
	General Liability Insurance	$1,000,000 per occurrence/ $2,000,000 aggregate
	 	 
	Business Automobile Coverage	$1,000,000 per accident
	 	 
	Professional Liability Insurance	$1,000,000 per occurrence and annual aggregate
	 	 
	Fidelity or Commercial Crime	$2,000,000 per occurrence
	(Employee Dishonesty)	 
	 	 
	Umbrella Liability Insurance	$5,000,000 per occurrence and annual aggregate

 

Agent may fulfill its liability insurance obligations
through primary or umbrella coverage. Upon request, Agent shall furnish Owner certificates of insurance evidencing the insurance
coverage required under this subsection. Should Agent's insurance coverage be cancelled or non renewed for any reason, Agent shall
endeavor to provide Owner 30 days prior written notice of such cancelation or non renewal.

 

    	18

    	 

    

 

(c)
Vendor Insurance. (i) Except as provided hereafter, Agent shall require and use reasonable
commercial efforts to obtain from Vendors hired to perform work at the Property the following insurance, in the following amounts,
or such other amounts as reasonably appropriate for the Vendor services performed:

 

	INSURANCE	MINIMUM LIMITS
	 	 
	Workers' Compensation	As required by statute in the state where the Property is located and where any operations relating to the contract are located, with waiver of subrogation against Owner and Agent.
	 	 
	Employer's Liability	$3,000,000 each accident.
	 	 
	Commercial General Liability* 	$3,000,000 per occurrence and aggregate 
	 	 
	Business Automobile Coverage 	$3,000,000 (any auto/owned/non- owned/hired) per accident 

 

*Vendors may fulfill their insurance
obligations through the use of any combination of primary and umbrella coverage. This coverage shall be primary to Owner's and
Agent's insurance and will cover Owner and Agent as Additional Insureds for claims arising out of the Vendor's ongoing and completed
operations for or on behalf of Owner or Agent. Owner and Agent shall be named as Additional Insureds by endorsement to Vendor's
Commercial General Liability and Auto Liability insurance policies.

 

		(ii)	If a Vendor's work involves professional design or engineering, special evidence of $1,000,000
in professional liability coverage may also be required by Owner.

 

		(iii)	If a Vendor's work involves any hazardous or toxic substances or materials such as Asbestos or
Asbestos abatement, special evidence of $1,000,000 in Contractor's Pollution Liability coverage may also be required by Owner.

 

    	19

    	 

    
 

		(iii)	Owner or Agent may require additional coverage as they deem reasonable and may waive certain limits
or requirements on a case-by-case basis.Agent shall require each Vendor to submit certificates of insurance and endorsements in
form and substance satisfactory to Owner or Agent as evidence of the coverages required. Each required policy will provide for
(A) waiver of subrogation against Owner and Agent; and (B) if Vendor's liability insurance limit is subject to a policy aggregate,
the aggregate limit must apply per project, or per location. All such policies will provide for 30 days' prior written notice to
Agent or Owner of cancellation and shall be issued by insurers with a Best's rating of A - VII or higher as reported in the most
recent Property & Casualty Reports Key Rating Guide edition.

 

		(iv)	For Projects in which Agent acts as project manager, Owner will require any such Contractors to
extend broad form indemnities to both Owner and Agent and name Owner and Agent as additional insured.

 

ARTICLE VI 

 

ENVIRONMENTAL MATTERS

 

9.01 Environmental
Risk Management.

 

		(a)	Notwithstanding anything to the contrary contained herein, Owner acknowledges and understands that
Agent is not qualified to (x) evaluate the presence or absence of hazardous or toxic substances, mold, waste, materials, electromagnetic
field, radon, radioactive materials, or other environmental concerns under applicable law, upon, within, above, or beneath the
Property (collectively, "Hazardous Materials"); (y) maintain or evaluate compliance with environmental, Hazardous Materials
or waste laws, rules and regulations; or (z) conduct or ensure clean-up or remediation of Hazardous Material spills or contamination.
Any environmental assessment report of the Property will be obtained from an independent environmental consultant retained by Owner.
In no event will Agent make an independent determination as to the presence or absence of Hazardous Materials, or whether Owner,
the Property or any particular tenant is in violation or compliance with any laws relating to Hazardous Materials ("Hazardous
Materials Laws"). Agent shall have no obligation or liability with respect to the abatement, clean-up or remediation of any
spill of or contamination from any Hazardous Materials relating to the Property. Owner agrees that, with respect to any abatement,
clean-up or remedial action, Owner shall employ a qualified and licensed environmental clean-up company to undertake such responsibilities.

  

    	20

    	 

    
 

		(b)	Owner hereby agrees to indemnify, defend, and hold harmless Agent and its affiliates from any claim,
liability, demand, damages, penalty, injury or expense (including attorneys' fees) arising out of or relating to (A) the act or
omissions of Agent within the scope of this Agreement or otherwise following Owner's or Owner's consultants' directions; (B) the
failure of Owner to authorize and fully fund expenses for the fulfillment of recommendations contained in any environmental assessment
reports; (C) the acts, omissions or negligence of Owner or Owner's environmental remediation contractors or environmental consultant,
or the failure of any such contractor or consultant to fulfill its obligations with respect to the Property; (D) any actual or
alleged violation of the Property with respect to Hazardous Materials Laws; (E) any personal or property damage caused as a result
of Hazardous Materials on the property; (F) any attempt to designate Agent as an "operator" or "generator"
under applicable law, or otherwise liable as a party under any other environmental law; and (G) any condition or circumstance arising
initially prior to the date of this Agreement (regardless of whether such condition or circumstance continues). The indemnities
herein shall survive expiration or termination of this Agreement.

 

		(c)	Owner has provided Agent a copy of its most current Phase I survey, if any, covering, the Property
and has implemented or will implement within 60 days of the Commencement Date an Operations and Maintenance Program consistent
with market standards. Owner will provide Agent with copies of any subsequent Phase I survey documents and changes to the Operations
and Maintenance Program.

 

    	21

    	 

    
 

IN WITNESS WHEREOF, the Parties have executed this Agreement
on the day and year above written.

 

	WITNESS:	 	OWNER:
		 	 
	/s/ Witness	 	ARHC MNPERIL001, LLC. a Delaware limited

 liability company
	 	 	 
	/s/ Lisa Marie Battisti	 	 	 
	 	 	 	 
	 	 	By: 	/s/ William M. Kahane 
	 	 		William M. Kahane, its President
	 	 	 
		 	AGENT:
	 	 	 
		 	DASCO REALTY ILLINOIS LLC, an Illinois 
	 	 	limited liability company
	 	 	 
	 	 	By:	 
	 	 		Malcolm Sina, its Authorized Representative
	 	 	 
	 	 	 

  

    	 

    	 

    
 

IN WITNESS WHEREOF,
the Parties have executed this Agreement on the day and year above written.

 

	WITNESS:	 	OWNER:
		 	 
		 	ARHC MNPERIL001, LLC. a Delaware limited liability company
	 	 	 
		 	By:	 
	 	 		William M. Kahane, its President 
	 	 	 
		 	AGENT:
	 	 	 
	/s/ Witness 	 	DASCO REALTY ILLINOIS LLC, an Illinois 

limited liability company
	 	 	 
	 	 	By:	/s/ Malcolm Sina
	 	 	Malcolm Sina, its Authorized Representative 
	/s/ WitnessLIMITED LIABILITY COMPANY AGREEMENT

 

OF

 

ARCHCT DASCO PEORIA, LLC

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	ARTICLE	 	 	PAGE
	 	 	 	 
	1	DEFINITIONS AND INTERPRETATION	1
	 	1.1	Definitions	1
	 	1.2	Interpretation 	7
	 	 	 	 
	2	FORMATION; NAME; PRINCIPAL PLACE OF BUSINESS	8
	 	2.1	Formation	8
	 	2.2	Name	8
	 	2.3	Principal Place of Business, Registered Office and Registered Agent	8
	 	 	 	 
	3	PURPOSE; TERM	8
	 	3.1	Purpose and Scope of Company Business	8
	 	3.2	Ownership and Title to Company Property	8
	 	3.3	Term	9
	 	 	 	 
	4	CAPITAL CONTRIBUTIONS AND CAPITAL ACCOUNTS	9
		4.1 	Initial Capital Contributions	9
	 	 	4.1.1 ARC	9
	 	 	4.1.2 DASCO	9
	 	4.2	Intentionally Omitted	9
	 	4.3	Additional Capital Contributions	9
	 	 	4.3.1 Requests for Additional Capital Contributions	9
	 	4.4	Failure to Fund Capital Contributions	10
	 	 	4.4.1 Contribution Option	10
	 	 	4.4.2 Member Loan	10
	 	 	4.4.3 Intentionally Omitted	11
	 	 	4.4.4 Exclusivity of Remedies	11
	 	4.5	No Other Capital Contributions	11
	 	4. 6	No Third Party Rights	11
	 	4.7     	Withdrawal of Capital; Interest on Capital	11
	 	4.8	Capital Accounts	11
	 	 	 	 
	5	DISTRIBUTIONS	12
	 	5.1	Distributions of Net Cash Flow	12
	 	5.2	REIT Compliance	12
	 	5.3 	Withholding	12
	 	5.4	No Third-Party Beneficiaries	13
	 	 	 	 
	6	ALLOCATIONS OF PROFIT AND LOSS	13
	 	6.1	Allocation of Profits and Losses	13
	 	6.2	Varying Interests	13
	 	6.3	Regulatory Allocations	13
	 	 	6.3.1 Minimum Gain Chargeback	13
	 	 	6.3.2 Qualified Income Offset	14
	 	 	6.3.3 Gross Income Allocation	14
	 	 	6.3.4 Nonrecourse Deductions	14
	 	 	6.3.5 Member Nonrecourse Debt	14

 

    	i

    	 

    

 

TABLE OF CONTENTS

(continued)

 

	ARTICLE	 	PAGE
	 	 	 
	 	 	6.3.6  Interpretation	14
	 	6.4	Tax Allocations	14
	 	 	6.4.1  General	14
	 	 	6.4.2  Depreciation Recapture	14
	 	6.5	6.4.3  Section 704(c) Allocations	15
	 	 	6.4.4  Tax Credits	15
	 	 	6.4.5  Tax Purposes	15
	 	 	Allocation of Excess Nonrecourse Liabilities	15
	 	 	 	 

	7	MANAGEMENT	16
	 	7.1	Management by Manager	16
	 	7.2	Annual Budgets	17
	 	7.3	Major Decisions	17
	 	7.4	Engagements by the Company	17
	 	7.5	Other Activities Permitted	17
	 	7.6	Devotion of Time	18
	 	7.7	Duties	18
	 	7.8	Liability of Manager; Indemnity	18
	 		7.8.1  Limitation on Liability of Manager	18
	 		7.8.2  Indemnification by Company	18
	 	7.9	Deposit of Company Funds	18
	 	7.10	REIT Compliance	19
	 	7.11	Replacement of Manager	19
	 	 	 	 
	8	RIGHTS AND DUTIES OF MEMBERS	19
	 	8.1	Admission of Members	19
	 	8.2	No Individual Authority	19
	 	8.3	No Compensation	20
	 	8.4	Indemnification by the Members	20
	 	8.5	Indemnification by the Company	20
	 	8.6	Rights of a Former Member	20
	 	 	 	 
	9	TRANSFER OF MEMBERSHIP INTEREST	20
	 	9.1	Restrictions on Transfer	20
	 		9.1.1  Condition to All Transfers	21
	 	9.2	Indirect Transfers	22
	 	9.3	Certain Permitted Transfers	22
	 		9.3.1  Transfers by ARC	22
	 		9.3.2  Intentionally Omitted	22
	 		9.3.3  Indirect Transfers	22
	 		9.3.4  Transfers to Transfer Affiliates	22
	 		9.3.5  Transfers of Registered Securities	23
	 		9.3.6  Continuation of Guaranty	23
	 	9.4	Intentionally Omitted	23
	 	9.5	Go-Along Obligation	23

 

    	ii

    	 

    

 

TABLE OF CONTENTS

(continued)

 

	ARTICLE	 	PAGE
	 	 	 	 
	 	9.6	Terminating Event to Member	23
	 	 	9.6.1 Effect of Terminating Event	23
	 	 	9.6.2 Right of Remaining Member to Purchase	24
	 	9.7	Priority of Purchase Rights	25
	 	9.8	Liabilities; Indemnity	25
	 	9.9	Releases	25
	 	9.10 Form of Payment of Purchase Price	25
	 	9.11 Procedures for Closing of Purchase and Sale Transactions	25
	 	 	9.11.1 Location and Time Periods	26
	 	 	9.11.2 Closing Documents	26
	 	 	9.11.3 Payment of Loans	26
	 	 	9.11.4 Closing Costs and Prorations	26
	 	 	9.11.5 Specific Performance	27
	 	 	9.11.6 Right to Assign	27
	 	9.12 Assignees	27
	 	9.13 Termination on Sale	27
	 	9.14 No Partitions or Withdrawal from Company	28
	 	9.15 Appraisals	28
	 	 	9.15.1 Specification of Appraisal Parameters	28
	 	 	9.15.2 Appraisal Procedure	28
	 	 	9.15.3 Determination of Fair Market Value of Interest	30
	 	 	9.15.4 Costs and Fees	30
	 	 	 	 
	10 BOOKS OF ACCOUNT; TAX AND ACCOUNTING MATTERS	30
	 	10.1 Maintenance of Records and Documents	30
	 	10.2 Reports	31
	 	10.3 Location	31
	 	 	10.3.1 List of Members	31
	 	 	10.3.2 Certificate	31
	 	 	10.3.3 Tax Returns	31
	 	 	10.3.4 Agreement	31
	 	 	10.3.5 Financial Statements	31
	 	 	10.3.6 Books and Records	32
	 	 	10.3.7 Other Information	32
	 	10.4 Tax Matters Partner	32
	 	10.5 Disposition of Documents and Records on Occurrence of Certain Events	32
	 	 	 
	11	DISSOLUTION AND LIQUIDATION	32
	 	11.1 Termination and Dissolution	32
	 	 	11.1.1 Decision of Members	32
	 	 	11.1.2 Sale of Assets	32
	 	11.2 Procedure	33
	 	11.3 Distribution of Assets	33
	 	 	11.3.1 Creditors	33
	 	 	11.3.2 Reserves	33

 

    	iii

    	 

    

 

TABLE OF CONTENTS

(continued)

 

	ARTICLE	 	PAGE
	 	 	 	 
	 	 	11.3.3 Balance	33
	 	 	11.3.4 Deficit Make-Up Not Required	33
	 	11.4 Distributions and Allocations	33
	 	11.5 Effective Date of Dissolution; In Kind Assets	34
	 	11.6 Certificate of Cancellation	34
	 	 	 	 
	12 REPRESENTATIONS AND WARRANTIES	34
	 	12.1 Representations and Warranties of ARC	34
	 	12.2 Representations and Warranties of DASCO	35
	 	12.3 Brokers	36
	 	12.4 Survival	36
	 	 	 
	13 MISCELLANEOUS	36
	 	13.1 Amendments	36
	 	13.2 Notices	36
	 	13.3 Construction	37
	 	13.4 Further Assurances; Covenant to Sign Documents	37
	 	13.5 Successors and Assigns	37
	 	13.6 Entire Agreement	38
	 	13.7 No Waiver	38
	 	13.8 Governing Law	38
	 	13.9 Severability	38
	 	13.10 Approvals	38
	 	13.11 Days	38
	 	13.12 Counterparts	38

 

    	iv

    	 

    

 

LIMITED LIABILITY COMPANY AGREEMENT

 

OF

 

ARCHCT DASCO PEORIA, LLC

 

THIS LIMITED LIABILITY
COMPANY AGREEMENT (this "Agreement") of ARCHCT DASCO PEORIA, LLC, a Delaware limited liability company (the
"Company"), is entered into as of December 15, 2011, by and between American Realty Capital Healthcare Trust Operating
Partnership, L.P., a Delaware limited partnership ("ARC"), and Peoria MOB Investors LLC, a Florida limited liability
company ("DASCO").

 

RECITALS:

 

A.           The
parties desire to form the Company as a limited liability company under the Act.

 

B.           The
parties desire to enter into this Agreement to set forth the terms and provisions governing the ownership and operation of the
Company.

 

NOW, THEREFORE, in consideration of
the foregoing Recitals and the mutual covenants and agreements contained herein, the parties agree as follows:

 

ARTICLE 1 

 

DEFINITIONS AND INTERPRETATION

 

1.1           Definitions.
As used in this Agreement, the following terms shall have the meanings set forth below:

 

Accountants. The firm of independent
certified public accountants selected from time to time by the Manager to act as accountants for the Company.

 

Act. The Delaware Limited Liability Company Act,
as amended from time to time.

 

Adjusted Balance.
The Capital Account balance of a Member, increased by any Minimum Gain or Partner Nonrecourse Debt Minimum Gain allocable
to such Member under Regulations Section 1.704.-2.

 

Adjusted Capital
Account Deficit. With respect to any Member, the deficit balance, if any, in the Member's Capital Account as of the end
of the relevant fiscal year, after giving effect to the following adjustments: (i) crediting thereto (A) that portion of any deficit
Capital Account balance that the Member is required to restore under the terms of this Agreement, (B) the amount of the Member's
shares of Minimum Gain and Member Nonrecourse Debt Minimum Gain, and (C) the amount of Company liabilities allocated to such Member
under Section 752 of the Code with respect to which the Member bears the economic risk of loss (as defined in Regulations Section
1.752-2(a)), to the extent such liabilities do not constitute Member Nonrecourse Debt under Regulations Section 1.752-2 and (ii)
reduced by all reasonably expected adjustments, allocations and distributions
described in Regulations Sections 1.704-1(b)(2)(ii)(d)(4), (5) and (6).

 

    	 

    	 

    

 

Advisor. American Realty Capital
Healthcare Advisors, LLC, and any successors thereto as the Advisor under the Advisory Agreement.

 

Advisory Agreement. The Advisory
Agreement dated February 18, 2011, between the Company, Advisor and ARC REIT, as amended from time to time.

 

Affiliate.
Any Person that directly, or through one or more intermediaries, controls or is controlled by or is under common control with
a Member; any Person that is an officer, director, partner, member, principal, manager or trustee of or serves in a similar capacity
with respect to a Member; or any Entity in which a Member, directly or indirectly through one or more intermediaries, is a partner,
principal, shareholder, member, beneficiary or otherwise an owner. For all purposes of this Agreement, the term "control"
and variations thereof shall mean possession of the authority to direct or cause the direction of the management and policies
of the applicable Entity, through the direct or indirect ownership of equity interests therein, by contract or otherwise.

 

Annual Budget. As defined in Section 7.2.

 

Appraiser.
A firm that (i) is nationally recognized as knowledgeable and experienced and has been actively engaged in the acquisition, disposition,
and financing of real property comparable to the Properties, or in providing investment advisory, asset management or valuation
services in connection with the acquisition, disposition, operation and financing of real property comparable to the Properties,
for a period of no less than the immediately preceding five (5) years, and (ii) is not an Affiliate of any Member.

 

ARC REIT. American Realty Capital Healthcare
Trust, Inc., a Maryland corporation.

 

Business Day. Any day other than
a Saturday, Sunday or any other day on which banks in New York are required or permitted to be closed.

 

Capital Account. The capital
account established and maintained for each Member under Section 4.8.

 

Capital Contribution.
For each Member, the aggregate amount of cash and the Gross Asset Value of any property contributed or deemed contributed
by that Member to the capital of the Company under Article 4.

 

Certificate.
The Certificate of Formation of the Company, as amended from time to time.

 

Code. The
Internal Revenue Code of 1986, as amended, or corresponding provisions of subsequent, superseding federal revenue laws.

 

Depreciation.
With regard to any Company asset for any Fiscal Year or other period, the depreciation, depletion or amortization, as
the case may be, allowed or allowable for federal income tax purposes; provided, however, that if there is a difference
between the Gross Asset Value and the adjusted tax basis of the asset, Depreciation shall mean "book depreciation, depletion
or amortization" as determined under Section 1.704-1(b)(2)(iv)(g)(3) of the Regulations.

 

    	2

    	 

    

 

Distribution.
Any cash or other property distributed by the Company to a Member arising from its Interest in the Company, excluding
payments to a Member (i) in reimbursement of Company expenses, or (ii) in payment of the principal of or interest on any loans
made by such Member to the Company.

 

Entity.
Any general partnership, limited partnership, joint venture, trust, business trust, limited liability company or
other association or other form of business or legal entity.

 

Fair Market Value.
As defined in Section 9.15.1.

 

Fiscal
Year. Each calendar year, provided that the first Fiscal Year shall be the period from the date of this Agreement
to the immediately following December 31, and the last Fiscal Year shall be the portion of the calendar year ending on the date
the Company is terminated (or such other period required by the Code or Regulations).

 

Gross Asset
Value. With respect to any Company asset, the adjusted basis of that asset for federal income tax purposes, except
as follows:

 

(a)          The
initial Gross Asset Value of any asset contributed by a Member to the Company will be the fair market value of the asset on the
date of the contribution, as set forth in this Agreement or, if not set forth herein, as determined by the Manager.

 

(b)          The
Gross Asset Values of all assets will be adjusted to equal the respective fair market values of the assets, as reasonably determined
by the Manager, as of (1) the acquisition of an additional interest in the Company by any new or existing Member in exchange for
more than a de minimis capital contribution, (2) the distribution by the Company to a Member of more than a de minimis amount
of Company property as consideration for an interest in the Company if an adjustment is necessary or appropriate to reflect the
relative economic interests of the Members in the Company, (3) the liquidation of the Company within the meaning of Regulations
Section 1.704-1(b)(2)(ii)(g), and (4) the grant of an interest in the Company (other than a de minimis interest) as consideration
for the provision of services to or for the benefit of the Company.

 

(c)          The
Gross Asset Value of any asset distributed to any Member will be the gross fair market value of the asset on the date of distribution
as reasonably determined by the Manager.

 

(d)          The
Gross Asset Values of assets will be increased or decreased to reflect any adjustment to the adjusted basis of the assets under
Code Section 734(b) or 743(b), but only to the extent that the adjustment is taken into account in determining Capital Accounts
under Regulations Section 1.704-1(b)(2)(iv)(m), provided that Gross Asset Values will not be adjusted under this paragraph (d)
to the extent that the Manager determines that an adjustment under paragraph (b) above is necessary or appropriate in connection
with a transaction that would otherwise result in an adjustment under this paragraph (d).

 

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(e)          After
the Gross Asset Value of any asset has been determined or adjusted under paragraph (a), (b) or (d) above, Gross Asset Value
will be adjusted by the Depreciation taken into account with respect to the asset for purposes of computing Profits or
Losses.

 

Interest.
The interest of each Member in the Company attributable to its status as a Member of the Company, including the right of such
Member to any and all Distributions and other benefits (including management and voting rights) to which such Member may be entitled
as provided in this Agreement and under applicable law, subject to all liabilities and obligations of such Member as provided
in this Agreement and under applicable law.

 

Major Decisions. As defined in Section
7.3.

 

Majority in Interest.
Those Members owning more than fifty percent (50%) of the Percentage Interests owned by all of the Members (or owned by
such portion of the Members as may be specified).

 

Management Agreement.
The Property Management Agreement dated December 15, 2011, between the Company and the Property Manager, as amended from
time to time.

 

Manager.
The Person appointed as Manager of the Company pursuant to and in accordance with Section 7.1 or Section 7.11, for so long as
it shall serve as Manager in accordance with Section 7.11, and any replacement Manager appointed in accordance with Section 7.11.
The initial Manager shall be ARC.

 

Member Nonrecourse
Debt. "Partner nonrecourse debt" as defined in Regulations Section 1.704-2(b)(4).

 

Member Nonrecourse
Debt Minimum Gain. With respect to each Member Nonrecourse Debt, an amount equal to the Minimum Gain that would result
if such Member Nonrecourse Debt were treated as a Nonrecourse Liability, determined in accordance with Regulations Section 1.704-2(i)(3).

 

Member Nonrecourse
Deductions. "Partner nonrecourse deductions" as defined in Regulations Sections 1.704-2(0(1) and 1.704-2(i)(2).

 

Members.
ARC, DASCO and any other Persons admitted as Members pursuant to the terms of this Agreement by assignment or otherwise.

 

Minimum Gain.
As defined in Section 1.704-2(d) of the Regulations. A Member's share of Minimum Gain (and any net decrease thereof) at any time
shall be determined in accordance with Regulation Section 1.704-2(g).

 

    	4

    	 

    

 

Net
Cash Flow. With respect to any period, the gross cash receipts of the Company during such period from all sources
(including Capital Contributions, loan proceeds and proceeds from the sale or disposition of all or any portion of the Property)
plus reductions in funded Reserves made during such period, less all cash expenditures by the Company during such period, including:
(i) cash operating expenses of the Company, including normal and customary fees to Affiliates of any Member, paid during such
period, (ii) interest, principal and any other amounts paid during such period with respect to indebtedness of the Company, (iii)
expenditures by the Company for capital improvements and other items paid by the Company during such period, and (iv) additions
to Reserves made by the Company during such period.

 

Nonrecourse Deductions.
As defined in Section 1.704-2(b)(1) of the Regulations.

 

Nonrecourse Liability.
As defined in Section 1.704-2(b)(3) of the Regulations.

 

Percentage
Interest. The percentage set forth opposite such Member's name below, as adjusted from time to time pursuant to
Section 4.2.3.

 

	Member	 	 	Percentage
                                                                                    Interest	 
	 	 	 	 	 
	ARC	 	 	99	%
	DASCO	 	 	1	%

 

Person or
Persons. Individuals, Entities, governmental agencies or administrative tribunals.

 

Prime
Rate. For each calendar month, the highest prime rate reported in the Money Rates column or section of The Wall
Street Journal published on the second Business Day of that month, as having been the rate in effect for corporate loans at large
U.S. money center commercial banks (whether or not such rate has actually been charged by any such bank) as of the first calendar
day of such month. If The Wall Street Journal ceases publication of the Prime Rate, the "Prime Rate" shall mean the
prime rate (or base rate) announced by JPMorgan Chase & Co., New York, New York (whether or not such rate has actually been
charged by such bank). If such bank discontinues the practice of announcing the Prime Rate, the "Prime Rate" shall mean
the highest rate charged by such bank on short-term, unsecured loans to its most creditworthy large corporate borrowers.

 

Profits
or Losses. For each Fiscal Year or other period, an amount equal to the
taxable income or loss of the Company for the Fiscal Year or other period, determined in accordance with Section 703(a) of the
Code (including all items of income, gain, loss or deduction required to be stated separately under Section 703(a)(1) of the Code),
with the following adjustments:

 

(a)          Any
income that is exempt from federal income tax and not otherwise taken into account in computing Profits or Losses will be added
to taxable income or loss;

 

(b)          Any
expenditures described in Code Section 705(a)(2)(B) or treated as Section 705(a)(2)(B) expenditures under Regulations Section
1.704-1(b)(2)(iv)(i), and not otherwise taken into account in computing Profits or Losses, will be subtracted from taxable income
or loss;

 

    	5

    	 

    

 

(c)          Gain
or loss resulting from any disposition of property with respect to which gain or loss is recognized for federal income tax purposes
will be computed by reference to the Gross Asset Value of the property, notwithstanding that the adjusted tax basis of the property
differs from its Gross Asset Value;

 

(d)          In
lieu of depreciation, amortization and other cost recovery deductions taken into account in computing taxable income or loss,
there will be taken into account Depreciation for the taxable year or other period;

 

(e)          Any
items that are specially allocated under Section 7.3 shall not affect calculations of Profits or Losses; and

 

(f)          If
the Gross Asset Value of any Company asset is adjusted under paragraph (b), (c) or (d) of the definition thereof, the adjustment
will be taken into account as gain or loss from disposition of the asset for purposes of computing Profits or Losses.

 

Property
or Properties. The real property and interests in real property
owned by the Company, directly through the Property Entity, including the Property identified on Exhibit A, together with all
furnishings, equipment and other personal property from time to time owned by the Company in connection with the ownership and
operation of the Property.

 

Property
Entity. The entity directly owned by the Company that directly owns the Property: ARHC MNPERIL001, LLC, a Delaware
limited liability company.

 

Property
Manager. Dasco Realty Illinois, LLC, an Illinois limited liability company, as the manager of the Property under
the Management Agreement, any assignee of its rights under the Management Agreement as permitted by the Management Agreement,
or any replacement Manager of the Property pursuant to any subsequent agreement governing the management of all or any portion
of the Property.

 

Regulations.
The regulations promulgated by the United States Department of the Treasury pursuant to and in respect of provisions
of the Code. All references herein to sections of the Regulations shall include any corresponding provisions of succeeding, similar,
substitute proposed or final Regulations.

 

REIT.
A real estate investment trust within the meaning of Code Section 856.

 

Reserves.
The amounts of reserved cash set forth in an Annual Budget, or otherwise reasonably determined from time to time
or at any time by the Manager to be necessary or advisable, for (i) payment of debt service coming due within a reasonable future
time with respect to indebtedness of the Company; (ii) management, operation, improvement, maintenance, replacement or preservation
of the Property; (iii) payment of taxes, insurance premiums and other reasonably anticipated costs and expenses of the Company;
and (iv) increases in working capital and other contingencies.

 

    	6

    	 

    

 

Secured
Lender. Any owner or holder of a mortgage or other secured claim or lien against all or any portion of the Property.

 

Terminating
Event. Any of the following events or actions with respect to a specified Person: (i) the adjudication of such
Person as a bankrupt or insolvent in an involuntary proceeding in, or the filing by such Person of any petition under, the then
existing insolvency laws or debtor relief statutes of the United States or of any state; (ii) the failure of such Person to have
any action filed against it under the insolvency laws or debtor relief statutes of the United States or any state, dismissed,
stayed or discharged within sixty (60) days after the filing thereof; (iii) the making of an assignment by such Person of all,
or substantially all, of its assets for the benefit of creditors; (iv) the appointment of a trustee, receiver, keeper or liquidator
of all, or substantially all, of such Person's assets, and, if such appointment is involuntary, such Person's failure to have
such appointment dismissed within sixty (60) days thereafter; (v) the attachment of, or the placing of a charging order on, or
other judicial seizure of, a Person's Interest (in the case of a Member) or all or substantially all of such Person's assets,
which attachment or charge order is not satisfied, released or dismissed within sixty (60) days thereafter; or (vi) the dissolution
of such Person, other than a dissolution of such Person (in the case of a Member) pursuant to which the entire Interest of the
Member is transferred to one or more persons to which the Member could have transferred such Interest without the consent of any
other Member.

 

Transfer.
As a noun, the transfer, sale, assignment, conveyance, gift, mortgage, pledge, hypothecation, charge or other encumbrance
of a Member's Interest (or, as the context may require, a direct or indirect interest in any Member), in whole or in part, whether
voluntarily or by operation of law, or the entry by a Member into any agreement or contract to do so (that is not conditioned
on any approval or other conditions required hereunder), or the consent by or permission of a Member to any of the foregoing with
respect to such Member's Interest (or a direct or indirect interest in such Member), or the sufferance by a Member of any third
person to do any of the foregoing; and as a verb, to take any of the preceding actions.

 

Transfer
Affiliate. With respect to each Member, any Person that directly, or through one or more intermediaries, controls
or is controlled by or is under common control with, such Member; or any Entity in which such Member has a direct, or indirect
through one or more intermediaries, controlling interest as a partner, member, manager, principal, shareholder, beneficiary or
otherwise as an owner.

 

1.2           Interpretation. The
definitions in Section 1.1 shall apply equally to both the singular and plural forms of the terms defined. Wherever the
context may require, any pronoun used in this Agreement shall include the corresponding masculine, feminine and neuter
forms. For all purposes of this Agreement, the term "control" and variations thereof shall mean possession of the
authority to direct or cause the direction of the management and policies of the specified Entity, through the direct or
indirect ownership of equity interests therein, by contract or otherwise. As used in this Agreement, the words
"include," "includes" and "including" shall be deemed to be followed by the phrase
"without limitation." As used in this Agreement, the terms "herein," "hereof' and
"hereunder" shall refer to this Agreement in its entirety. Any references in this Agreement to "Sections"
or "Articles" shall, unless otherwise specified, refer to Sections or Articles, respectively, in this Agreement.
Any references in this Agreement to an "Exhibit" shall, unless otherwise specified, refer to an Exhibit attached to
this Agreement. Each such Exhibit shall be deemed incorporated in this Agreement in full.

 

    	7

    	 

    

 

ARTICLE 2

 

FORMATION; NAME; PRINCIPAL PLACE OF BUSINESS

 

2.1           Formation.
The parties hereto agree to form a limited liability company under the Act. The rights and obligations of the Members
shall be as provided in the Act except as otherwise expressly provided in this Agreement. The Members agree to execute such certificates
or documents and to do such filings and recordings and all other acts, including the filing or recording of the Certificate and
any assumed name filings in the appropriate offices in the State of Delaware and any other applicable jurisdictions as may be
required to comply with applicable law.

 

2.2 Name. The name
of the Company shall be "ARCHT Dasco Peoria, LLC." The business of the Company shall be conducted solely under such
name or such other fictitious business names as may be designated by the Manager.

 

2.3           Principal
Place of Business, Registered Office and Registered Agent. The principal place of business of the Company shall be
located at the office of the Manager. The registered agent and the registered office of the Company shall be Corporation
Service Company, 2711 Centerville Road, Suite 400, Wilmington, DE 19808. The Manager may from time to time designate another
registered agent or another location for the registered office or principal place of business of the Company upon notice to
the Members.

 

ARTICLE 3

 

PURPOSE; TERM

 

3.1           Purpose
and Scope of Company Business. Subject to the terms and conditions contained in this Agreement, the purpose and scope
of business of the Company shall be to own and manage the Property Entity; to lease, finance and mortgage the Property or portions
thereof; to dispose of the Property; and to take all necessary or advisable actions in connection with the foregoing to carry
out such purposes, and otherwise to enter into, perform and participate in such activities as the Members deem prudent or reasonable
in connection with the foregoing activities. The Company may engage in any or all of its activities either directly or through
one or more Property Entity. The Company shall enter into such other agreements, do all such things as shall be desirable or necessary
in connection with, and undertake any and all business or activity in order to carry out the purposes of the Company, as determined
from time to time in accordance with the applicable provisions of this Agreement. Notwithstanding anything to the contrary herein
contained, this Agreement shall not be deemed to create a partnership between the Members with respect to any activities whatsoever.
Except as specifically provided herein, this Agreement shall not constitute any Member the agent of any other Member.

 

3.2           Ownership
and Title to Company Property. A Member's Interest shall be personal property for all purposes. All property owned by
the Company, whether real or personal, tangible or intangible, shall be
deemed to be owned by the Company as an entity and no Member individually shall have any ownership of such Company property.

 

    	8

    	 

    

 

3.3           Term.
The term of the Company shall commence upon the filing of the Certificate and shall continue perpetually until terminated,
dissolved or liquidated pursuant to the provisions of this Agreement. No Member shall have the right to dissolve, terminate or
liquidate the Company, except as provided in this Agreement.

 

ARTICLE 4

 

CAPITAL CONTRIBUTIONS AND CAPITAL ACCOUNTS

 

4.1           Initial
Capital Contributions.

 

4.1.1 ARC.
Concurrently with the execution of this Agreement, ARC shall contribute immediately available funds in the amount of $10,970,190
to the capital of the Company, which capital shall be contributed to the Property Entity and used to purchase the Property from
Peoria MOB Owners LLC ("Peoria MOB Owner") and attributed to 99% of the purchase price of the Property.

 

4.1.2 DASCO.
Concurrently with the execution of this Agreement, DASCO caused a 1% interest in Peoria MOB Owner to be conveyed to the
Company, which 1% interest is valued at $110,810 and shall be treated as DASCO's capital contribution to the Company (and the
remaining 1% of the purchase price of the Property).

 

4.2           Intentionally
Omitted.

 

4.3           Additional
Capital Contributions.

 

4.3.1 Requests
for Additional Capital Contributions. If, at any time, the Manager determines in good faith that the anticipated revenues
of the Company and the available funds of the Company at such time (including any Reserves, but only for the purpose for which
the applicable Reserve is maintained) are not sufficient to pay all expenditures of the Company and the Property Entity that are
authorized under this Agreement and anticipated during the next following 180 days (including amounts required to maintain Reserves),
the Manager shall have the right to deliver to each Member written notice stating the aggregate amount of funds then required
by the Company, each Member's Percentage Interest of such amount and the anticipated uses of such funds. Each Member shall contribute
to the capital of the Company immediately available funds in the amount of such Member's Percentage Interest of the aggregate
amount of funds then required by the Company as set forth in such notice (such Member's "Additional Contribution Amount").
Each Member shall furnish its Additional Contribution Amount to the Company within 7 days following the date of delivery of the
notice requesting such funds.

 

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4.4           Failure
to Fund Capital Contributions. If a Member fails to contribute an amount equal to the entire Additional Contribution Amount
required to be contributed by it within the applicable period specified in Section 4.3 (the "Failing Member"), and if
the other Member (the "Non-Failing Member") contributes its entire Additional Contribution Amount within the
applicable period and so notifies the Failing Member, and the Failing Member fails fully to remedy its failure to contribute within
five days after the delivery of notice by the Non-Failing Member with respect to a failure under this Section 4.4 (the "Notice
of Intention"), then the Non-Failing member, in its sole discretion, may elect any one of the following, which election shall
be specified in the Notice of Intention:

 

(a)          The
Non-Failing Member may require the Company to repay immediately to the Non-Failing Member the contribution it made pursuant to
the applicable request for additional capital contributions, together with any interest actually earned thereon by the Company
until repayment;

 

(b)          The
Non-Failing Member may make an additional contribution to the capital of the Company of up to the amount the Failing Member failed
to contribute under Section 4.3, in which case the Percentage Interests of the Members shall be adjusted as provided in Section
4.4.1 (the "Contribution Option"); or

 

(c)          The
Non-Failing Member may elect to advance to the Company, as a loan to the Failing Member, an amount equal to the amount the Failing
Member failed to contribute under Section 4.3 on the terms in Section 4.4.2 (a "Member Loan").

 

4.4.1 Contribution
Option. If a Non-Failing Member elects the Contribution Option, the Percentage Interests of the Members shall be
adjusted as follows:

 

(a)          The
Percentage Interest of the Failing Member shall be reduced by an amount equal to the product of (i) the Dilution Factor (as defined
below) multiplied by (ii) the ratio of (x) the Additional Contribution Amount required of the Failing Member and contributed by
the Non-Failing Member, to (y) the sum of all Capital Contributions previously made to the Company by all Members, including Additional
Contribution Amounts advanced by the Non-Failing Member on its own behalf and on behalf of the Failing Member; and

 

(b)          The
Percentage Interest of the Non-Failing Member shall be increased by the decrease in a Failing Member's Percentage Interest.

 

The "Dilution Factor"
shall mean 100% if the failure to contribute capital arose from a request under Section 4.3.

 

4.4.2 Member
Loan. Each Member Loan shall bear interest at an annual rate (compounded monthly) equal to the greater of 18% or
500 basis points over the Prime Rate, adjusting when and as the Prime Rate adjusts. Notwithstanding anything to the contrary in
this Agreement, a Member Loan shall be repaid by the Company paying amounts otherwise distributable by the Company to the Failing
Member directly to the Non-Failing Member until the Member Loan and all interest thereon is repaid (which payments will be applied
first to accrued interest on the outstanding principal balance of such loan and then outstanding principal balance of such loan).
Any amounts so applied shall be treated under this Agreement as having been distributed to the Failing Member. A Member Loan shall
be recourse to the Failing Member and any outstanding balance following dissolution of the Company shall be immediately due and
payable by the Failing Member. A Member Loan may be prepaid at any time or from time to time by a Failing Member.

 

    	10

    	 

    

 

4.4.3 Intentionally
Omitted.

 

4.4.4 Exclusivity
of Remedies. The rights and remedies of the Non-Failing Member and the Company set forth in this Section 4.4 with
respect to a failure by a Member to contribute its Additional Contribution Amount pursuant to a request for additional capital
contributions under Section 4.3 shall be the exclusive remedies available to the Company and the Non-Failing Member against the
Failing Member with respect to such failure.

 

4.5           No
Other Capital Contributions. Except as provided in Sections 4.1, 4.2, 4.3, and 4.4, no Member shall be obligated
to make any Capital Contributions, and no Member shall have the right to make any additional Capital Contributions to the Company.
If a Member makes any voluntary advance of cash or property to the Company other than pursuant to Section 4.1, 4.2, 4.3, or 4.4,
such cash or property shall not constitute a Capital Contribution to the Company and shall not be credited to such Member's Capital
Account; the other Member shall not be obligated to make a proportionate, or any, contribution; and no Member's Percentage Interest
shall be adjusted by reason of any such voluntary contribution.

 

4.6           No
Third Party Rights. This Article 4 shall not be construed as conferring any rights or benefits to or upon any Person
not a party to this Agreement.

 

4.7           Withdrawal
of Capital; Interest on Capital. No Member shall be entitled to withdraw capital from the Company, or to receive
any Distributions or allocations of Profit or Loss from the Company, except as a Distribution or allocation made under Article
5, Article 6 or Article 11, as may apply. Interest earned
on Company funds shall inure solely to the benefit of the Company and, except as specifically provided herein, no interest shall
be paid upon any Capital Contributions, or advances to the capital of the Company, or upon any undistributed or reinvested income
or profits of the Company. No Member shall be personally liable for the return of the Capital Contributions made by the other
Member.

 

4.8           Capital
Accounts. A separate Capital Account shall be established and maintained for each Member in accordance with the
Code and the Regulations, including the rules regarding the maintenance of partners' capital accounts set forth in Regulation
Section 1.704-1. Subject to the immediately preceding sentence,
(i) each Member's Capital Account will be credited with (A) the amount of cash and the Gross Asset Value of any property contributed
by the Member to the Company, (B) the Member's distributive share of Profits, (C) any items in the nature of income or gain that
are specially allocated to the Member under Section 7.3, and (D) the amount of any Company liabilities that are assumed by the
Member or secured by any Company property distributed to the Member; and (ii) each Member's Capital Account will be debited with
(A) the amount of cash and the Gross Asset Value of any Company property distributed to the Member under any provision of this
Agreement, (B) the Member's distributive share of Losses, (C) any items
in the nature of deduction or loss that are specially allocated to the Member under Section 7.3, and (D) the amount of
any liabilities of the Member assumed by the Company or which are secured by any property contributed by the Member to the Company.
If property is contributed to the capital of the Company or if there is a revaluation of any Company property such that the Gross
Asset Value of such property differs from its adjusted tax basis, the Members' Capital Accounts shall be appropriately adjusted
for income, gain, loss and deduction as required by Regulation Section 1.704-1(b)(2)(iv)(g).

 

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ARTICLE 5 

 

DISTRIBUTIONS

 

5.1           Distributions
of Net Cash Flow. Net Cash Flow, if any, shall be distributed to the Members in accordance with their Percentage Interests
(subject to Section 4.4.2 and Section 5.3). Net Cash Flow shall be distributed at such times as the Manager may determine but
no less frequently than annually, unless the Members approve otherwise.

 

5.2           REIT
Compliance. Unless this provision is waived by ARC, to the fullest extent possible consistent with the distribution provisions
of this Article 5, the Manager shall cause the Company to distribute to ARC REIT by the end of the each Fiscal Year no less than
100% of the taxable income (including any net capital gain) allocated, directly or indirectly, to ARC REIT for federal income
tax purposes for such fiscal year so that ARC REIT may satisfy the requirements of Section 857(a)(1) of the Code for its taxable
year, and otherwise distribute 100% of its taxable income and net capital gain.

 

5.3           Withholding.

 

(a)          Each
Member hereby authorizes the Manager to cause the Company to withhold from, or pay on behalf of or with respect to, the Member
any amount of federal, state, local or foreign taxes that the Company is required to withhold or pay with respect to any amount
distributable or allocable to the Member under this Agreement, including any taxes required to be withheld or paid by the Company
under Section 1441, 1442, 1445, or 1446 of the Code.

 

(b)          Any
amount paid on behalf of or with respect to a Member under

Section 5.3(a) shall constitute a loan by the Company to the Member, which loan shall be repaid by the Member within 15 calendar
days after notice from the Manager that such payment must be made unless the Manager determines, in its sole and absolute discretion,
that such payment may be satisfied out of the available funds of the Company which would, but for such payment, be distributed
to the Member. Any amount withheld pursuant to the immediately preceding sentence shall be treated as having been distributed
to such Member.

 

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(c)          Any
amount payable by a Member to the Company under this Section 5.3 shall bear interest at the Prime Rate plus 500 basis points,
but in no event higher than the maximum lawful rate of interest on such obligation, such interest to accrue from the date such
amount is due (i.e., 15 calendar days after demand) until such amount is paid in full. Each Member hereby unconditionally and
irrevocably grants to the Company a security interest in the Member's Interest to secure the Member's obligation to pay to the
Company any amounts required to be paid under this Section 5.3. Each Member shall take such actions as the Company shall request
in order to perfect or enforce the security interest created hereunder.

 

5.4           No
Third-Party Beneficiaries. The foregoing priorities of application and distribution of Net Cash Flow are for the
benefit of the Members only and not for the benefit of any third party or creditor of the Company or of any Member, and neither
the Company, the Manager nor any Member shall be liable or responsible to any third party or creditor of the Company or of any
Member for any deviation from such priorities.

 

ARTICLE 6

 

ALLOCATIONS OF PROFIT AND LOSS

 

6.1           Allocation
of Profits and Losses. After giving effect to the allocations set forth in Section 6.3, all Profits and Losses
(including all items of income and expense entering into the determination of Profits and Losses), as finally determined for each
Fiscal Year, shall be allocated among the Members so as to cause each Member's Adjusted Balance as of the end of the Fiscal Year
to equal the amount of cash that would be distributed to the Member under Section 5.1 if, as of the end of the Fiscal Year, cash
in the amount of the sum of the Members' Adjusted Balances were distributed to the Members under Section 5.1.

 

6.2           Varying
Interests. If a Member has Transferred all or part of its Interest, all items of Profit or Loss for any Fiscal
Year shall be apportioned between the transferor and its transferee on the basis of the number of days in the Fiscal Year that
each was the holder of the Interest (making any adjustments necessary to comply with the provisions of Section 706(d)(2) of the
Code), without regard to the results of the Company's operations during the period before and after the date of the Transfer;
provided that if both the transferor and transferee consent, to the extent permitted by the Code and Regulations, a special closing
of the books shall be had as of the effective date of the Transfer and the apportionment of items of Profit and Loss shall be
made on the basis of actual operating results. In the case of an adjustment to the Percentage Interests, to the extent permitted
by the Code and Regulations, a special closing of the books shall be had as of the effective date of such adjustment, and the
apportionment of items of Profit and Loss shall be made on the basis of actual operating results.

 

6.3           Regulatory
Allocations.

 

6.3.1 Minimum
Gain Chargeback. Notwithstanding any other provision of this Agreement, if there is a net decrease in Minimum Gain
for a Company taxable year, each Member shall be allocated, before any other allocation of Company items for the taxable year,
items of gross income and gain for the year (and, if necessary, for subsequent years) in proportion to, and to the extent of,
the amount of the Member's share of the net decrease in Minimum Gain during the year. The income allocated under this Section
6.3.1 in any taxable year shall consist first of gains recognized from the disposition of property subject to one or more nonrecourse
liabilities of the Company, and any remainder shall consist of a pro rata portion of other items of income or gain of the Company.
The allocation otherwise required by this Section 6.3.1 shall not apply to a Member to the extent provided in Regulation Section
1.704-2(f)(2) through (5).

 

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6.3.2 Qualified
Income Offset. Notwithstanding any other provision of this Agreement, if a Member unexpectedly receives an adjustment,
allocation or distribution described in Regulation Section 1.704-1(b)(2)(ii)(d)(4), (5) or (6) that causes or increases an Adjusted
Capital Account Deficit with respect to the Member, items of Company gross income and gain shall be specially allocated to the
Member in an amount and manner sufficient to eliminate such Adjusted Capital Account Deficit as quickly as possible.

 

6.3.3 Gross
Income Allocation. If at the end of any Company taxable year, a Member has an Adjusted Capital Account Deficit,
the Member shall be specially allocated items of Company income or gain in an amount and manner sufficient to eliminate the Adjusted
Capital Account Deficit as quickly as possible.

 

6.3.4 Nonrecourse
Deductions. Any Nonrecourse Deductions shall be allocated among the Members in accordance with their Percentage
Interests.

 

6.3.5 Member
Nonrecourse Debt. Notwithstanding any other provision of this Agreement, any Member Nonrecourse Deductions shall
be allocated to those Members that bear the economic risk of loss for the applicable Member Nonrecourse Debt, and among such Members
in accordance with the ratios in which they share such economic risk, determined in accordance with Regulation Section 1.704-2(i).
If there is a net decrease for a Company taxable year in any Member Nonrecourse Debt Minimum Gain, each Member with a share of
such Member Nonrecourse Debt Minimum Gain as of the beginning of such year shall be allocated items of gross income and gain in
the manner and to the extent provided in Regulation Section 1.704-2(i)(4).

 

6.3.6 Interpretation.
The foregoing provisions of this Section 6.3 are intended to comply with Regulation Sections 1.704-1(b) and 1.704-2
and shall be interpreted consistently with this intention. Any terms used in such provisions that are not specifically defined
in this Agreement shall have the meaning, if any, given such terms in the Regulations cited above.

 

6.4           Tax
Allocations.

 

6.4.1 General.
Except as otherwise provided in this Section 6.4, items of income, gain, loss and deduction of the Company to be
allocated for income tax purposes shall be allocated among the Members on the same basis as the corresponding book items are allocated
under Sections 6.1 through 6.3.

 

6.4.2 Depreciation
Recapture. Subject to Section 6.4.3, if any portion of taxable gain recognized from the disposition of property
by the Company represents the "recapture" of previously allocated deductions by virtue of the application of Code Section
1(h)(1)(D), 1245 or 1250 ("Recapture Gain"), such Recapture Gain shall be allocated as follows:

 

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(a)          First,
to the Members in proportion to the lesser of each Member's (i) allocable share of the total taxable gain recognized from the
disposition of such property and (ii) share of depreciation or amortization with respect to such property (as determined in the
manner provided under Regulations Sections 1.1245-1(e)(2) and (3)), until each such Member has been allocated Recapture Gain equal
to such lesser amount.

 

(b)          Second,
the balance of Recapture Gain shall be allocated among the Members whose allocable shares of total taxable gain from the disposition
of such property exceed their shares of depreciation or amortization with respect to such property (as determined in the manner
provided under Regulations Sections 1.1245-1(e)(2) and (3)), in proportion to their shares of total taxable gain (including Recapture
Gain) from the disposition of such property; provided, however, that no Member shall be allocated Recapture Gain under this Section
6.4.2 in excess of the total taxable gain otherwise allocated to such Member from such disposition.

 

6.4.3 Section
704(c) Allocations. In accordance with Code Section 704(c) and the related Regulations, income, gain, loss and
deduction with respect to any property contributed to the capital of the Company, solely for income tax purposes, shall be allocated
among the Members so as to take account of any variation between the adjusted basis to the Company of the property for federal
income tax purposes and the initial Gross Asset Value of the property. If the Gross Asset Value of any Company asset is adjusted
under paragraph (b) or (d) of the definition thereof, subsequent allocations of income, gain, loss and deduction with respect
to that asset will take account of any variation between the adjusted basis of the asset for federal income tax purposes and its
Gross Asset Value in the same manner as under Code Section 704(c) and the related Regulations Any elections or other decisions
relating to allocations under this Section 6.4.3 (including selection of the method for making such allocations) will be made
by the Manager in its sole discretion.

 

6.4.4 Tax
Credits. Unless otherwise required by the Code, any tax credits of the Company shall be allocated among the Members
in accordance with their Percentage Interests. Any recapture of tax credits shall be allocated among the Members in the same ratio
as the applicable tax credits were allocated to the Members.

 

6.4.5 Tax
Purposes. Allocations under this Section 6.4 are solely for purposes of federal, state and local income taxes and
will not affect, or in any way be taken into account in computing, any Member's Capital Account or share of Profits, Losses or
other items or distributions under any provision of this Agreement.

 

6.5          Allocation
of Excess Nonrecourse Liabilities. Solely for the purpose of allocating excess Nonrecourse Liabilities of the Company
among the Members in connection with the determination of the Members' adjusted tax bases for their interests in the Company,
in accordance with Section 752 of the Code and the Regulations from time to time promulgated thereunder, the Members agree that
each Member's interest in Company profits equals the Member's Percentage Interest.

 

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ARTICLE 7

 

MANAGEMENT

 

7.1           Management
by Manager. Except as otherwise specifically provided in this Agreement (including Section 7.3), the management of the
Company shall be vested in the Manager. The Members hereby designate ARC as the Manager of the Company. Except as provided in
Section 7.3 or as otherwise specifically provided in this Agreement, the Manager shall have full, exclusive and complete discretion
in the management and control of the business and affairs of the Company, and shall make all decisions affecting the Company's
business and affairs, including the delegation of such management and control to third party service providers. Except as otherwise
provided herein, any action taken by the Manager (in its capacity as such) shall constitute the act of and serve to bind the Company.
All authority of the Manager to act on behalf of the Company shall include the same authority to act on behalf of each Property
Entity either directly or by causing the Company to act on behalf of each Property Entity. The Manager shall have the right to
cause the Company and each Property Entity to acquire, finance, refinance, and lease the Property. The Manager shall have the
right to cause the Company and the Property Entity to dispose of any real property or interests therein in its sole discretion.
The Manager shall have the authority to make all expenditures on behalf of the Company and the Property Entity to the extent (i)
set forth in an Annual Budget, (ii) required by applicable law, or (iii) required by the Management Agreement or the Advisory
Agreement. The Manager shall have the authority to make other expenditures and engage in any other acts and transactions on behalf
of the Company and the Property Entity that are not Major Decisions. The Manager shall implement all Major Decisions approved
by the Members pursuant to Section 7.3. In addition, notwithstanding Section 7.3 and the limitations of the Annual Budgets, the
Manager shall have the authority at any time or from time to time in an emergency situation to take any action (including make
expenditures and incur obligations) on behalf of the Company and the Property Entity without obtaining the prior written approval
of either Member if such action is, in the Manager's reasonable judgment, reasonably necessary or advisable to preserve or protect
the assets of the Company and the Property Entity or to prevent injury to any Person. The Manager shall not employ, or permit
any other Person to employ any funds or assets of the Company in any manner other than for the exclusive benefit of the Company.
The Company shall not pay fees to the Manager as consideration for the performance of its duties as such; provided, however, the
Company shall reimburse the Manager for all reasonable direct costs and allocable overhead incurred by the Manager, its Affiliates,
employees or agents on behalf of the Company or otherwise in connection with the performance of its duties as Manager. The Manager
may designate one or more of its Affiliates, agents or employees to carry out its duties and responsibilities as the Manager.

 

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7.2           Annual
Budgets. On or before November 1 of each year, the Manager shall prepare or cause to be prepared a preliminary annual
budget for the Company and for the Property Entity for the next calendar year, which budget shall be approved or modified in ARC's
sole discretion. The Manager will provide DASCO with a copy of the approved budget on or before December 1 each year.

 

7.3           Major
Decisions. Notwithstanding anything in Section 7.1 to the contrary, the actions or decisions by or on behalf of
the Company or any Property Entity that are designated below as "Major Decisions" shall require the prior written approval
of both Members. For this purpose and for purposes of any other approvals, consents or elections by each Member under this Agreement,
each Member shall from time to time designate in writing to the other Member two individuals, each of whom shall be authorized
to act on behalf of such Member. The individuals initially authorized to act on behalf of ARC are Nicholas S. Schorsch and William
M. Kahane. The individual initially authorized to act on behalf of DASCO is Malcolm Sina. The Members shall meet by teleconference
upon one Business Days' prior written notice to both of the individuals then authorized to act on behalf of the other Member.
An agenda for each meeting shall be prepared in advance by the Member requesting such meeting and submitted to the other Member.
The "Major Decisions" are as follows:

 

7.3.1 Any amendment
to this Agreement. Any Amendment altering the economic benefits to the Members or removing the Company from ownership of the Property
Entity without an economic sale or transfer occurring shall require unanimous vote of the Members.

 

7.4           Engagements
by the Company. Subject to the applicable Annual Budget and Section 7.3, the Manager may engage, on behalf and
at the expense of the Company, such Persons as the Manager in its reasonable judgment shall deem advisable for the conduct and
operation of the business of the Company, including property managers, rental and sales agents and brokers, mortgage bankers,
attorneys, accountants, architects, engineers, consultants, contractors and purveyors of other services or materials for the Company
on such terms and for such compensation as the Manager, in its reasonable discretion, shall determine. Subject to the applicable
Annual Budget and Section 7.3, the Manager shall have the right to engage Affiliates of the Manager to provide services or materials
to the Company. The Members hereby approve (i) the Advisory Agreement under which the Advisor will provide advisory services to
the Company in exchange for fees and expense reimbursements payable by the Company to the Advisor; and (ii) the Management Agreement
under which the Property Manager will manage the Properties in exchange for and agreed-upon market rate fee payable by the Company
or the Property Entity.

 

7.5           Other
Activities Permitted. The Manager, the Members and their respective Affiliates, and each of them, are now involved
in, and shall continue to have the absolute right to organize and operate, other partnerships (whether limited or general), corporations,
trusts, sole proprietorships, limited liability companies, or any other form of business entity, venture or enterprise, to purchase,
own, manage and operate, for investment or any other purposes, other real property or businesses, and may otherwise engage in
any other business venture of any kind, including acquiring, financing, developing, leasing, managing, operating and selling medical
office property or other real property and improvements thereon, all without participation by the other Member, or its Affiliates,
and without liability to any of them. Neither the Company, nor any other Member, shall have the right to any income or profit
derived by a Member or its Affiliates from any such enterprise or opportunity.

 

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7.6           Devotion
of Time. The Manager and each Member shall devote so much of its business time to the affairs of the Company as
may be reasonably necessary for the proper conduct of the business of the Company, but subject to this requirement, shall not
be required to devote its full business time to the Company.

 

7.7           Duties.
The Manager shall not have a fiduciary duty to the Company, the Members, their respective Affiliates or constituent Persons
in connection with its role as Manager under this Agreement. No Member shall have a fiduciary or other duty to the Company, the
other Members, the Manager, their respective Affiliates or constituent Persons pursuant to this Agreement. Notwithstanding the
foregoing, the elimination of duties on the part of the Manager and the Members under this Section 7.7 shall not (i) limit or
eliminate liability for any act or omission that constitutes a bad faith violation of the implied contractual covenant of good
faith and fair dealing, or (ii) limit the liability of the Manager or any Member for fraud, misappropriation of funds or property,
or intentional destruction of the Company's assets.

 

7.8           Liability
of Manager; Indemnity.

 

7.8.1 Limitation
on Liability of Manager. The Manager and its Affiliates, agents and employees shall not be liable, responsible
or accountable in damages or otherwise to the Company or any of the Members or their successors or assigns for any acts performed
or omitted within the scope of its authority as Manager, or otherwise conferred on the Manager and such Affiliates, agents and
employees by this Agreement, provided that the Manager or such Affiliates, agents or employees shall act in good faith and shall
not commit an act or omission of willful misconduct or gross negligence.

 

7.8.2 Indemnification
by Company. The Company shall indemnify, defend and hold the Manager and its Affiliates, employees and agents,
or their respective successors, executors, administrators or personal representatives, harmless from and against any loss, liability,
damage, cost or expense (including reasonable attorneys' fees) sustained or incurred as a result of any act or omission concerning
the business or activities of the Company; provided that the Manager or any Affiliate, employee or agent is not guilty of gross
negligence or willful misconduct and was acting in good faith within what it reasonably believed to be the scope of its authority
for a purpose which it reasonably believed to be not opposed to the best interests of the Company. The foregoing indemnity shall
not be enforceable against any Member personally.

 

7.9           Deposit
of Company Funds. All Company funds shall be deposited in the Company's name in federally-insured bank accounts
or other recognized, suitable depositories. Withdrawals from Company accounts shall be made on the signature of a duly authorized
agent of the Manager.

 

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7.10 REIT
Compliance. The Members acknowledge that ARC REIT, a direct owner of ARC, has elected to be treated as a REIT for
federal income tax purposes. Accordingly, and as a material inducement to ARC entering into this Agreement, the Company shall
at all times conduct the business of the Company and each Property Entity such that the nature of the Company property and gross
revenues would permit ARC REIT (i) to avoid realizing any income that is nonqualifying gross income for purposes of the 95% and
75% gross income tests of Section 856(c)(2) and (c)(3) of the Code, (ii) to avoid owning any assets that would cause a violation
under Section 856(c)(4); (iii) to otherwise maintain its status as a REIT under the Code and (iv) to avoid incurring any tax under
Section 4981 of the Code, any tax on prohibited transactions under Section 857(b)(6) of the Code and any tax on redetermined rents,
redetermined deductions and excess interest under Section 857(b)(7) of the Code. Without limiting the generality of the foregoing,
the Members hereby agree that the Company's future operations shall be managed and conducted in compliance with the guidelines
set forth on Exhibit B and any other guidelines that may be provided by ARC to the Company and which in its reasonable judgment
are necessary or desirable to assure compliance with the foregoing provisions of this Section 7.10. The Members shall cooperate
in all reasonable respects with respect to (a) structuring the acquisition of interests in the Property Entity and the operation
of the Company business, (b) amending this Agreement or changing the structure of the ownership or operation of the Company, the
Property Entity, and their business in a manner that would allow the Company and each Property Entity, if it made an election
under Section 856 of the Code, to qualify as a REIT and not incur any amount of tax pursuant to Section 857 or 4981 of the Code,
(c) in the discretion of and upon request by ARC, structuring the acquisition, operation or ownership of the Property or any other
Company property in a manner that would allow ARC REIT to invest in all or a part of the Property, through one or more taxable
REIT subsidiaries (as defined in Section 856(1) of the Code), and (d) solely at the election of ARC, conducting any sale of the
Property as a sale of the Property Entity.

 

7.11 Replacement
of Manager. If at any time a Manager shall resign, dissolve or otherwise terminate its legal existence, such Manager shall
immediately thereupon cease to be a Manager of the Company except in the event of a merger or reorganization of the Manager, in
which case its successor in interest will become the Manager. A Manager may resign at any time by delivering written notice thereof
to each Member, and any such resignation shall be effective upon the date of delivery of such notice or such later date as may
be specified in such notice. Except as otherwise specifically provided in this Agreement, in the case of a Manager that is also
a Member, the termination of such Manager's status as Manager shall not in any manner affect such Person's Interest as a Member
or any rights or obligations attributable to such Interest. If the Manager ceases to be a Manager for any reason, ARC shall have
the right to appoint a replacement manager. If at any time there shall be more than one Manager, then each Manager shall have
all of the rights and duties attributed to the Manager under this Agreement.

 

ARTICLE 8

 

RIGHTS AND DUTIES OF MEMBERS

 

8.1           Admission
of Members. Each of ARC and DASCO is hereby recognized as a Member of the Company. No other Person shall be recognized
or admitted as a Member of the Company unless such Person has satisfied the requirements of Article 9.

 

8.2           No
Individual Authority. Except as otherwise expressly provided in this Agreement or in the Act, no Member, acting alone,
shall have any authority to act for, or to create, undertake or assume any liabilities, obligations or responsibilities on behalf
of the Company or any other Member.

 

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8.3           No
Compensation. Except as specifically provided in this Agreement,
no Member shall be entitled to receive any compensation or reimbursement from the Company or from any other Member for
services performed or costs incurred in its capacity as a Member.

 

8.4           Indemnification
by the Members. Each Member hereby agrees to indemnify the Company
and each of its other Members and hold them each harmless from and against all liability, loss, cost, damage and expense (including
attorneys' fees and costs incurred in the investigation, defense and settlement of the matter) which the Company or any of such
other Members shall ever sustain, suffer or incur which relate or arise out of or in connection with a breach by the indemnifying
Member of any representation, warranty or covenant made by the indemnifying Member in this Agreement. If the Company is made a
party to any litigation or otherwise incurs any loss or expense as a result of or in connection with any Member's personal obligations
or liabilities unrelated to Company business, such Member shall indemnify and reimburse the Company for all such loss and expense
incurred, including reasonable attorneys' fees. The liability of any Member pursuant to this Section 8.4 shall be enforceable
against such Member personally.

 

8.5           Indemnification
by the Company. The Company shall indemnify each of its Members
and former Members for all costs, losses, liabilities and damages paid or incurred by any of them in connection with the business
of the Company, including any judgments, settlements, penalties, fines and expenses incurred in a proceeding to which any such
person is a party because the person is or was a Member of the Company, to the fullest extent provided or allowed by the Act or
any other applicable laws, provided, however, that such liability does not arise by reason of the willful misconduct or gross
negligence of such Member or any matter described in Section 8.4 with respect to which the Member is obligated to indemnify the
Company. The foregoing indemnity shall not be enforceable against any Member personally.

 

8.6           Rights
of a Former Member. No Member shall have the right or power to
resign or withdraw by voluntary act from the Company. If a Member shall cease to be a Member, and if the Company is not
then dissolved, then, notwithstanding Section 18-604 of the Act, such former Member shall not thereby be entitled to receive the
fair market value of such former Member's membership interest in the Company or any other payment or any other distribution except
as specifically provided in this Agreement.

 

ARTICLE 9

 

TRANSFER OF MEMBERSHIP INTEREST

 

9.1           Restrictions
on Transfer. Except as expressly permitted in Sections 9.3, 9.4,
9.5 and 9.6, no Member shall Transfer, or cause or permit the Transfer of, all or any portion of its Interest or any interest
therein, without obtaining the prior written consent of the other Member. Such consent may be given or withheld in the sole and
absolute discretion of any Member, whether reasonable or unreasonable under the circumstances. Any Transfer, or purported Transfer,
of all or any part of an Interest made in violation of the provisions of this Article 9 shall be void and of no
force or effect against the Company, the other Member, any creditor of the Company or any claimant against the Company. If a Member
consents to a Transfer of the Interest of another Member or if a Member effects a Transfer of its Interest permitted under this
Article 9, then the giving of any such consent or the making of such permitted Transfer in any one or more instances shall
not limit or waive the requirement for such consent or the application of the provisions of this Article 9 to any other or subsequent
Transfer of such Member's Interest.

 

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9.1.1 Condition
to All Transfers. It shall be a condition to any Transfer that any required consent to such Transfer by any Secured Lender
(and any other creditors of the Company or any Property Entity that have approval rights under the terms of their credit documents)
shall have been obtained. It shall also be a condition to the effectiveness of any Transfer (other than a Transfer arising as
a result of a Terminating Event, as described in Section 9.6.1) of all or part of the Interest of a Member to a Person other than
a Member, including Transfers otherwise permitted by Section 9.3 or Section 9.4, and a condition to the purported transferee of
such Transfer being admitted as a Member of the Company or otherwise being entitled to any benefits or rights under this Agreement
or otherwise associated with such Interest, that:

 

(i)          except
in the case of a Transfer of ownership interests in a Member permitted by Section 9.3.3 or 9.3.5, (a) the transferee shall execute
and deliver to the other Member a written agreement reasonably satisfactory to the other Member accepting and adopting the terms
of this Agreement and unconditionally assuming and agreeing to be bound by all obligations, conditions and covenants of the transferring
Member hereunder with respect to the Interest transferred (whether in existence at the time of such Transfer or accruing thereafter),
and (b) any guarantor of the obligations of the transferor under this Agreement shall execute a written guaranty of the obligations
of the transferee hereunder, to the same extent and on the same terms as such guaranty of the transferor's obligations;

 

(ii)         except
in the case of a Transfer of ownership interests in a Member permitted by Section 9.3.3 or 9.3.5, the other Member shall have
received such evidence (including opinions of counsel) of the due authorization, execution and delivery of instruments by, and
the validity and enforceability of such instruments against, such transferee as the other Member shall reasonably request;

 

(iii)        the
other Member shall have received an opinion of counsel reasonably acceptable to the other Member that (a) such Transfer shall
not violate any federal or applicable state securities law or cause the Company to fail to qualify for an exemption from registration
under the federal and any applicable state securities laws, and (b) such Transfer will not result in the imposition of fiduciary
responsibility on the Company, any Property Entity, the Manager, any Member or any Affiliate of any Member under the Employee
Retirement Income and Security Act of 1974, as amended from time to time ("ERISA"); and

 

(iv)        except
in the case of a Transfer of ownership interests in a Member permitted by Section 9.3.5, the other Member shall have received
either (a) an opinion of counsel reasonably satisfactory to the other Member that such Transfer will not result in a termination
of the Company for federal income tax purposes, or (b) an indemnity against any additional income tax liability of the other Member
(including any taxes payable with respect to payments under such indemnity) and any other costs of such Member (including such
Member's Percentage Interest of any costs of the Company) arising from such a termination resulting from such Transfer, such indemnity
to be in such form and from a party having such creditworthiness as is reasonably acceptable to the other Member, the choice of
(a) or (b) above being in the sole discretion of the transferring Member.

 

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9.2          Indirect
Transfers. If an Interest is at any time held by a Member that is a partnership, corporation, limited liability
company, trust or other Entity, any Transfer of a direct or indirect ownership interest in such Member shall be deemed a Transfer
of the Interest of such Member and subject to the provisions of Section 9.1, except as expressly provided in Section 9.3.

 

9.3          Certain
Permitted Transfers.

 

9.3.1 Transfers
by ARC. Notwithstanding the other provisions of Section 9.1 and 9.2, but subject to the limitations of Section
9.1.1, ARC may at any time Transfer all or any portion of ARC's Interest to any Person, without the consent of the Manager or
any other Member.

 

9.3.2 Intentionally
Omitted.

 

9.3.3 Indirect
Transfers. Notwithstanding the other provisions of Sections 9.1 and 9.2, but subject to the limitations of Section
9.1.1, any Person who is a stockholder, partner, member or other direct or indirect owner of any Member may, from time to time,
Transfer all or a portion of such Person's direct or indirect interest in such Member to any Person, provided that (a) either
(i) the assignee of such interest satisfies the provisions of Section 9.3.5 or (ii) the Members receive other evidence satisfactory
to each of them that the proposed Transfer shall not result in adverse consequences to such Member or the Company relating to
ERISA, and (b) after giving effect to such Transfer, such Member would come within the definition of a "Transfer Affiliate"
as applied to such Member as constituted on the date of this Agreement.

 

9.3.4 Transfers
to Transfer Affiliates.         Subject to the limitations
of Section 9.1.1, each Member shall have the right, at any time or from time to time, without the consent of the Manager or any
other Member, to sell or assign all or any portion of its Interest to a Transfer Affiliate of such Member. In the event of any
such Transfer, the transferee shall assume all obligations of the transferor attributable to the Interest transferred in accordance
with Section 9.1.1; provided that the transferor shall not thereby be released and shall continue to be jointly and severally
liable with such transferee for all such obligations. Furthermore, any transferee of all or any portion of the Interest of a Member
shall have the right, pursuant to this Section 9.3.4, to assign all or any portion of its Interest to such Member or any Transfer
Affiliate of such Member, except that if a Member has assigned its entire Interest, any further assignment of all or any portion
of such Interest shall be subject to the provisions of this Article 9. If a Member shall transfer less than its entire Interest
to a Transfer Affiliate, references to such Member in this Agreement shall refer to such Member and its Transfer Affiliate collectively,
and such transferor Member shall be authorized to act on behalf of such Transfer Affiliate for all purposes under this Agreement.

 

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9.3.5 Transfers
of Registered Securities. Notwithstanding any other provision of this Agreement to the contrary, any owner of any
securities issued by any Member or any direct or indirect owner of any Member may transfer those securities pursuant to a transaction
occurring in the ordinary course of trading of publicly-traded securities, if the securities were issued pursuant to a registration
statement that has been filed with and declared effective by the United States Securities and Exchange Commission, subject only
to any required consent of any Secured Lender.

 

9.3.6 Continuation
of Guaranty. Notwithstanding the transfer of any Interest or of any direct or indirect interest in any Member permitted
by this Section 9.3, any guaranty of the obligations of the transferor hereunder then in effect shall not thereby be released,
but shall continue in effect both with respect to such transferor and with respect to any and all obligations of the transferee
under this Agreement.

 

9.4          Intentionally
Omitted.

 

9.5          Go-Along
Obligation. If at any time ARC enters into a definitive written agreement to sell or transfer all of the Interests
in the Company to any third party, ARC shall promptly give DASCO written notice thereof (a "Go-Along Notice"). DASCO
agrees to (i) sell and transfer its entire Interest in accordance with the terms and conditions of such definitive written agreement,
and (ii) execute and deliver any and all documents and instruments reasonably necessary in connection therewith, provided that
(A) the price payable to DASCO shall equal DASCO's initial capital contribution set forth in Section 4.1.2. If DASCO shall fail
or refuse to sell and transfer its Interest in accordance with this Section 9.5, or to execute all documents and instruments reasonably
necessary in connection therewith, DASCO hereby irrevocably appoints ARC, with full power to act alone, as DASCO's agent and attorney-in-fact
to execute and deliver said documents and sell and transfer the Interest of DASCO.

 

9.6          Terminating
Event to Member.

 

9.6.1 Effect
of Terminating Event. Except as specifically provided in this Agreement, the occurrence of a Terminating Event
to a Member (the "Terminated Member") shall not cause the dissolution or termination of the Company, and the Company
shall continue in effect under this Agreement. Upon the occurrence of a Terminating Event (other than a Termination Event described
in clause (i) of the definition thereof), the representative, trustee in bankruptcy, or lawful successor or assigns of the Terminated
Member (i) shall within 15 days of the occurrence of the Terminating Event, deliver written notice to the other Member of such
Terminating Event, its nature and date of occurrence, and (ii) shall, except as otherwise specified in this Section 9.6, succeed
to the Terminated Member's rights, powers and obligations solely for the purpose of administering the Interest of the Terminated
Member. Upon settlement of the winding up and dissolution or reorganization of the Terminated Member, the successors or assigns
of the Terminated Member pursuant to such winding up and dissolution or reorganization shall, subject to the continuation of the
Company and the provisions of this Section 9.6, become a substitute Member
in the Company in the place and stead of the Terminated Member and shall succeed to the Interest of the Terminated Member
in accordance with the terms of the settlement of the winding up and dissolution, or reorganization of, the Terminated Member's
affairs. Notwithstanding the foregoing, from and after the date on which a Terminating Event occurs to a Terminated Member, all
of the Terminated Member's rights to management and control of the Company shall immediately terminate, including the right to
approve Annual Budgets, the right to participate in other Major Decisions, the right to appoint a Manager, the right to consent
to Transfers of Interests by any other Member (or Transfers of interests in any other Member), the right to participate in a Transfer
under Section 9.4, and the right to initiate any of the provisions of Section 9.5 or 9.6.2; and the other Member (the "Remaining
Member") shall have the sole right to replace the Manager and otherwise act on behalf of the Company.

 

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9.6.2
Right of Remaining Member to Purchase. Notwithstanding
the provisions of Section 9.6.1, upon the occurrence of a Terminating Event, the Remaining Member shall have the right to elect
to purchase all, but not less than all, of the Interest of the Terminated Member. Such right shall be exercisable by delivering
written notice to the Terminated Member (or its successor in interest) within 180 days after (i) the expiration of the five-day
period described in clause (i) of the definition of Terminating Event, in the case of a Terminating Event described in that clause
(i), or (ii) the receipt of written notice of the occurrence of the Terminating Event in accordance with Section 9.6.1 in the
case of any other Terminating Event, provided that the receipt of the notice described in clause (ii) above shall not be a condition
to the rights of the Remaining Member described in this Section 9.6.2. If the Remaining Member elects to purchase the Interest
of the Terminated Member, then the Fair Market Value of the Terminated Member's Interest shall be determined by appraisal pursuant
to the procedures specified in Section 9.15. Upon receipt of the final determination of Fair Market Value based on such appraisal,
the Remaining Member shall have the right, within 90 days thereafter, to elect to purchase or not purchase the Interest of the
Terminated Member for a purchase price equal to (x) 65% of the Fair Market Value of the Terminated Member's Interest if the Terminating
Event is described in clause (i) of the definition thereof, or (y) 100% of the Fair Market Value of the Terminated Member's Interest
in the case of any other Terminating Event. Exercise by the Remaining Member of its election to purchase the Interest of the Terminated
Member under this Section 9.6.2 shall be made by delivering written notice of such election to the Terminated Member (or its successor
in interest) within such 90-day period. Failure of the Remaining Member to deliver such notice within such period shall constitute
an election not to purchase the Interest of the Terminated Member pursuant to this Section 9.6.2. Upon election by the Remaining
Member to purchase the Interest of the Terminated Member, the purchase and sale of the Terminated Member's Interest shall be consummated
pursuant to the provisions of Sections 9.8 through 9.13.

 

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9.7           Priority
of Purchase Rights. Notwithstanding any other provisions of this
Article 9, a Member may not initiate the procedures under any of Sections 9.3.1, 9.3.2, 9.4, 9.5 or 9.6.2 during any period after
which the provisions of any such Section have been initiated and the purchase of a Member's Interest is pending, until either
such pending transaction has been consummated or it has been conclusively determined that such pending transaction shall
not be consummated either by reason of the expiration of any specified time periods or otherwise. The order of the initiation
of the procedures under Sections 9.3.1, 9.3.2, 9.4, 9.5 and 9.6.2 shall be determined by the date of deemed delivery of the applicable
notices, as provided in Section 13.2.

 

9.8           Liabilities;
Indemnity. If a Member's Interest is purchased by another Member pursuant to any provision of this Article 9, the purchasing
Member (and the Company, if it continues in existence) shall indemnify, defend and hold the selling Member, its directors, officers,
shareholders, partners, members, managers, employees and agents, or any of them harmless from any and all claims, demands, actions,
losses, liabilities, costs, or expenses (including reasonable attorneys' fees) arising out of or in connection with all obligations
or liabilities of the Company, whether or not incurred or accrued while the selling Member was a Member or after the date of consummation
of the purchase and sale of the selling Member's Interest.

 

9.9           Releases.
In connection with a purchase by a Member of another Member's Interest under any provision of this Article 9, if the selling
Member or any Affiliate thereof is a guarantor or an indemnitor of or with respect to any obligations of the Company for or in
connection with borrowed money or is otherwise liable thereon, then at or prior to the closing of such transaction and as a condition
precedent to such closing, the purchasing Member shall obtain a release of such guarantee or liability (excluding only any environmental
indemnity to any lender to the Company to the extent that such indemnity relates to the period preceding the closing); or if such
a release is not obtainable without the payment of any money by any Member, with the consent of the selling Member (which may
be granted or withheld in its sole discretion), the purchasing Member shall fully indemnify the selling Member and its Affiliates
with respect to any such obligations. Any such indemnity by the purchasing Member shall be secured by its right to all Distributions
by the Company (both with respect to the purchased Interest and with respect to all other Interests of the purchasing Member and
its Affiliates). If the releases described above are not obtainable without the payment of money by any Member and the selling
Member does not consent to the indemnification described above, then the Members shall have no further rights or obligations under
this Agreement to purchase or sell the applicable Interest with respect to the particular event or election giving rise to such
rights. Notwithstanding the immediately preceding sentence, the right of a Member to purchase the other Member's Interest under
this Article 9 may subsequently arise as a result of similar or other circumstances, subject in each case to this Section 9.9.

 

9.10 Form of Payment
of Purchase Price. In the case of a purchase by a Member of another Member's Interest under any provision of this Article
9, the purchase price for a Member's Interest shall be paid by wire transfer of immediately available funds as directed by the
selling Member.

 

9.11 Procedures
for Closing of Purchase and Sale Transactions. The provisions of this Section 9.11 shall apply to any purchase by one
Member of another Member's Interest pursuant to any provision of this Article 9, except to the extent otherwise specified in the
applicable Section within this Article 9.

 

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9.11.1 Location
and Time Periods. The closing of any purchase and sale of an Interest between Members under this Agreement shall be held
at the principal office of the Company or such other location as the Members may mutually agree upon. The purchase and sale transaction
shall close not later than one hundred twenty (120) days after the date the purchase price for the Member's Interest has been
determined under the applicable provisions of this Article 9.

 

9.11.2 Closing Documents.
Each Member shall deposit such documents and instruments, duly executed, and acknowledged where required, as may be necessary
to consummate the purchase and sale of a Member's Interest hereunder. Without limiting the foregoing, the selling Member shall
execute and deliver at the closing an assignment, instrument of conveyance or other instrument appropriate to convey the entire
Interest of the selling Member to the purchasing Member, and shall deliver to the purchasing Member such evidence as the purchasing
Member may reasonably request showing that the Interest being sold is owned or will be owned by the purchasing Member free and
clear of any and all claims, liens and encumbrances of any kind or nature. In addition, as a condition precedent to the closing,
the parties to the transaction shall obtain the written consents of any lenders to the Company (to the extent such consents are
required under the applicable loan documents) to the transactions to be consummated at the closing. The purchasing and selling
Members shall each use their reasonable best efforts and cooperate in good faith to obtain such lenders' consents. If any such
consent cannot be obtained, then, at the election of the purchasing Member, either (i) the purchasing Member may, in its sole
discretion, waive the requirement of such consents; or (ii) the rights and obligations of the Members to purchase and sell resulting
from the applicable election shall terminate and no Member shall have any further right or obligation arising from such election
to purchase or sell.

 

9.11.3 Payment of
Loans. If there shall be any outstanding loans owed by the Company to the selling Member or its Affiliates, such loans,
including accrued and unpaid interest, shall be purchased without discount by the purchasing Member as a condition precedent to
the closing. The purchase price for such loans shall be paid in full at the closing in the same manner as the purchase price for
the Interest is paid. At the closing, the selling Member shall deliver to the purchasing Member each note or other instrument
evidencing such loans, all documents securing such loans and an assignment or satisfaction, which assignment or satisfaction shall
be at the election of the purchasing Member.

 

9.11.4 Closing Costs
and Prorations. On the date of the closing of the purchase of a Member's Interest by another Member, any closing adjustments
and prorations of items of income and expense of the Company shall be made between the Members and either charged or debited to
the selling or purchasing Member, as may be appropriate. One hundred twenty (120) days after the date of the closing, any such
prorations shall be adjusted to the extent necessary to reflect actual events. The purchase price to be paid for a selling Member's
Interest shall also be (i) increased by the aggregate amount of all Capital Contributions made by the selling Member to the Company
between the date on which the purchase price for such Member's Interest was established pursuant hereto and the date of closing
and (ii) reduced by the aggregate amount of all Distributions of any kind or character received by the selling Member between
the date on which the purchase price was established and the date of closing. Furthermore, the purchasing Member shall have the
right to offset any sums owed by the selling Member to the purchasing Member or the Company against the purchase price payable
for the Interest acquired. All closing costs shall be borne equally by the selling Member and the purchasing Member. Notwithstanding
the foregoing, the costs of obtaining any appraisals pursuant to Section 9.15 shall be paid as provided in Section 9.15.

 

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9.11.5 Specific
Performance. It is the intent of the Members that the requirements or obligations, if any, of any Member to sell
its Interest and of any Member to purchase another Member's Interest in accordance with the provisions of this Article 9 shall
be enforceable by an action for specific performance, with the same force and effect and at least to the same extent as is permitted
at law or in equity for the specific performance of a contract relating to the purchase of real property or an interest therein.

 

9.11.6 Right
to Assign. Each Member understands that to preserve the character of the Company and consummate the purchase of
the entire Interest of the other Member, the purchasing Member may assign its purchase rights under this Article 9 in whole or
in part to any Affiliate or unrelated party who, upon closing, shall become a Member of the Company, and accordingly agrees that
any such purchase rights shall be assignable by the purchasing Member without the consent of the selling Member, provided that
(a) the purchasing Member delivers written notice to the selling Member of such assignment and of the identity of the assignee
prior to the closing; (b) such assignment, in the opinion of counsel to any Member, would not require registration of any interests
in the Company under the Securities Act of 1933 or any applicable state securities law, or result in any violation of any such
laws; and (c) no such assignment shall relieve the purchasing Member of its obligations and liabilities under this Article 9,
including any indemnity obligations.

 

9.12 Assignees.
For purposes of this Agreement, the Interest of each Member shall include all Company Interests owned by such Member
and any Interest that is owned by any Affiliate of such Member or that has been assigned by such Member to an Affiliate of such
Member or to any other Person (other than to another Member or an Affiliate thereof). Any elections made by any Member, and any
obligations of any Member to sell its Interest under this Article 9 shall bind any Affiliate and any other such assignee of such
Member. All references in this Article 9 to a Member shall include all Affiliates of such Member and, except as provided above,
all Persons to which any such Member has assigned any portion of its Interest.

 

9.13 Termination
on Sale. Upon consummation of the purchase and sale of a Member's entire Interest to another Member under this
Article 9, (i) the selling Member's Interest in the Company shall be fully and completely settled and terminated, and (ii) the
selling Member's rights and obligations under this Agreement shall terminate, except (x) as to items incurred or accrued as of
such date and not subject to indemnification hereunder, and (y) as to any indemnity obligations of such selling Member attributable
to acts or events occurring prior to such date or otherwise specified in this Article 9.

 

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9.14 No
Partitions or Withdrawal from Company. No Member shall have the right to have any property of the Company or of
any Property Entity or any portion thereof partitioned, and each Member on its own behalf, and on behalf of its successors, representatives,
heirs and assigns, hereby expressly waives any such right. No Member shall have the right to withdraw from the Company, except
pursuant to the procedures specified herein with respect to Transfers or other events giving rise to the right of a Member to
purchase an Interest.

 

9.15 Appraisals.
Whenever this Agreement provides for a valuation or determination by appraisal, then such valuation or determination
shall be determined by appraisal pursuant to the applicable terms, conditions and procedures specified in this Section 9.15.

 

9.15.1 Specification
of Appraisal Parameters. As used herein, the "Fair Market Value" of an Interest shall mean the value
of the Interest to be sold or purchased, determined as specified in Section 9.15.3, based on the Fair Market Value of the Company,
except that the value of the Interest shall not be discounted because the Interest, represents a minority interest or because
of a lack of marketability of the Interest. As used herein, the "Fair Market Value" of the Company or the property of
the Company shall mean the cash price that a sophisticated purchaser would pay, as of the date an appraisal is to be made hereunder,
for all Company property in excess of all liabilities of the Company, such evaluation to be made utilizing the assumptions that
(i) such property is in its then-existing condition and is subject to any agreements, including leases, and management and service
agreements but excluding this Agreement, then in effect which would be binding on such purchaser, (ii) the purchase agreement
of such sophisticated purchaser is subject to a reasonable closing period, (iii) such sophisticated purchaser is acquiring solely
the Company property and is giving no other separate consideration or economic incentives (such as a below-market leaseback of
the property or any space therein), and (iv) the offer of the sophisticated purchaser is unconditional and noncontingent. The
Fair Market Value of the Company or the property thereof shall be reduced to give effect to any customary brokerage, title insurance
and other closing costs (not exceeding, in the aggregate, six percent (6%) of such Fair Market Value prior to such reduction)
that would be incurred if all of the property of the Company were sold. A "sophisticated purchaser" shall mean a Person
who would take into account the nature, extent, maturity date and other terms of the liabilities of the Company, whether fixed
or contingent, including the favorable or unfavorable nature of any financing then encumbering the property of the Company and
whether such financing is assumable, and the prospects that the income from the property of the Company would be sufficient to
satisfy such liabilities when due (excluding any liability under financing already taken into account), or through appropriate
refinancing thereof

 

9.15.2 Appraisal
Procedure.

 

9.15.2.1   Agreement
of Members. If any provision of this Agreement requires a valuation or determination by appraisal, then the Members
(or a Member's representative, such as a trustee in bankruptcy or receiver) shall in good faith attempt to agree upon the Fair
Market Value of the Company and/or of the Interest of the affected Member.

 

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9.15.2.2
Appointment of Appraisers on Failure of Members to Agree. If
the Members are not able to so agree within twenty (20) days after receipt of notice of the event giving rise to the invocation
of the appraisal procedure, then unless the Members agree within the same period on one Appraiser, each Member shall, within ten
Business Days after the expiration of such twenty (20) day period, specify by written notice to the other Member the name and
address of an Appraiser to act on behalf of such Member. If a Member fails to appoint its Appraiser within such ten Business Day
period, then the Appraiser appointed by the other Member shall carry out the appraisal hereunder.

 

9.15.2.3
Rendition of Appraisals. Within forty-five (45) days
after the appointment of the Appraiser or Appraisers pursuant to Section 9.15.2.2, each such Appraiser shall render an
opinion in writing setting forth the net fair market value of the Company or the property of the Company (as may apply), and deliver
the same to each Member. The net fair market value of the Company or the property of the Company shall be determined in accordance
with sound, customary and usual appraisal practices for the appraisal of real estate and other Company assets, taking into account
the standards specified herein and shall otherwise assume that the Company property is then being used for the highest and best
use. The Appraisers shall have the right, but shall not be obligated, to consult the Members, the Manager, the Accountants, experts
and competent authorities, and receive factual information or evidence pertaining to a determination of the net fair market value
of the Company, as the Appraisers may consider necessary or useful. The determination of each Appraiser shall contain appropriate
supporting detail and explanation. Such determinations shall be binding and conclusive upon the Members, absent fraud or
manifest error.

 

9.15.2.4
Determination of Fair Market Value. If only one Appraiser
is appointed pursuant to Section 9.15.2.2, then the Fair Market Value of the Company or the property of the Company (as
may apply) shall be the net fair market value thereof, as determined by such Appraiser, as provided above. If two Appraisers are
appointed pursuant to Section 9.15.2.2, and the determination of the net fair market value of the Company or the Property of the
Company (as may apply) that is higher in amount exceeds the lower of such determinations by no more than 10% of the amount of
such higher determination, then the Fair Market Value of the Company or the property of the Company (as may apply) shall be the
arithmetic average of the two appraisals. If two Appraisers are appointed pursuant to Section 9.15.2.2 and the higher of the two
appraisals exceeds the lower of the two appraisals by more than 10% of the amount of the higher of the two appraisals, then the
provisions of Section 9.15.2.5 shall apply.

 

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9.15.2.5
Appointment of Third Appraiser. If this Section 9.15.2.5
applies, within ten Business Days after the delivery to the Members of the later to be received of the two appraisals described
above, the two Appraisers shall appoint a third Appraiser. If the two Appraisers are unable to agree upon a third Appraiser within
such ten Business Day period, then the Members themselves shall select a third Appraiser within a further period of five Business
Days. If the Members are unable to agree within such five Business Day period, then either Member, on behalf of both of them,
may request the American Institute of Real Estate Appraisers to appoint the third Appraiser and the other Member shall not raise
any objection to such Person's full power and jurisdiction to entertain the application and make the appointment. The third Appraiser
shall determine the net fair market value of the Company or the property of the Company (as may apply), in accordance with the
standards described in Section 9.15.2.3. The Fair Market Value of the Company or the property of the Company (as may apply) shall
be the net fair market value thereof as set forth in the one of the three appraisals that is neither higher than nor lower than
both of the other two appraisals.

 

9.15.3
Determination of Fair Market Value of Interest. The
Accountants shall determine the Fair Market Value of an Interest to be purchased. The Fair Market Value of such Interest
shall be equal to the amount the selling Member would receive if (i) the property of the Company were sold for the Fair Market
Value of the Company or the property of the Company determined under Section 9.15.2, and (ii) the affairs of the Company were
wound up and the remaining proceeds of sale distributed by the Company to the Members pursuant to the provisions of Section 11.3.
The Accountants shall notify the Members in writing of their determination within 20 days after the determination of the Fair
Market Value of the Company or the property of the Company under Section 9.15.2, and such determination by the Accountants shall
be final and binding on the Members, absent fraud or manifest error.

 

9.15.4
Costs and Fees. All costs and fees payable to Appraisers
or the Accountants in connection with the procedures under this Section 9.15 shall be paid equally by the Members, except
that in the case of transactions described in Section 9.6.2, such costs and fees shall be paid entirely by the Terminated Member.
Notwithstanding the foregoing provisions of this Section 9.15.4, all costs and expenses incurred by a Member to retain its own
attorneys or other independent consultants in connection with the appraisal procedure hereunder shall be borne by such Member.

 

ARTICLE 10

 

BOOKS OF ACCOUNT; TAX AND ACCOUNTING MATTERS

 

10.1
Maintenance of Records and Documents. Full and accurate
accounts of all transactions of the Company and the Property Entity shall at all times be kept in proper and accurate records
and books of account according to GAAP. The Company shall also maintain all other documents and instruments affecting its business
and operations (including those of the Property Entity), including all contracts, service agreements, leases, and plans and specifications.
All such books and records shall be the property of the Company. The Company books shall be closed and balanced at the end of
each Fiscal Year. Such books and records shall include such separate and additional accounts for each Member as shall be necessary
to reflect accurately the rights and interests of the respective Members.

 

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10.2
Reports. The Manager shall prepare or cause to be
prepared and distributed to each of the Members, at Company expense, the following reports:

 

10.2.1 As soon
as practicable after the end of each Fiscal Year, the Manager shall cause the Accountants to undertake a general accounting and
audit, covering the assets, liabilities and income of the Company and each Property Entity, their dealings, transactions and operations
during such Fiscal Year, and all matters and things customarily included in such accountings and audits, and the Manager shall
distribute all statements resulting from such accounting and audit to each Member as soon as practicable after receipt thereof
by the Company. Such statements shall include a balance sheet for the Company prepared in accordance with the generally accepted
accounting principles, an income statement for the Company prepared in accordance with generally accepted accounting principles,
statements of changes in financial condition for the Company, a statement of Profit or Loss for the Company, statements of changes
in each Member's Capital Account, statements of Net Cash Flow, and a full and complete report of the audit scope and audit findings
in the form of a management audit report with internal control memorandum. To the extent applicable, each such statement shall
show a comparison between such statement and both the same statement for the immediately preceding Fiscal Year and the corresponding
portions of the Annual Budget for such Fiscal Year.

 

10.2.2 As soon
as practicable after the end of each Fiscal Year, the Manager shall cause to be distributed to each Member the federal income
tax returns for the Company, and all state and local income tax returns as may be required to be filed by the Company, together
with Schedules K-1 and any other schedules and information relative to the Company as may be required or necessary for the preparation
of the Members' federal, state and local income tax returns.

 

10.3
Location. The Company shall maintain at its principal
place of business the following:

 

10.3.1
List of Members. A current list of the full name and
last known business address of each Member, together with the Capital Contributions and the Percentage Interest of each
Member.

 

10.3.2
Certificate. A copy of the Certificate and all amendments
thereto, together with executed copies of any powers of attorney pursuant to which any such certificate has been executed.

 

10.3.3
Tax Returns. Copies of the Company's federal, state
and local income tax or information returns and reports, if any, for the six most recent taxable years.

 

10.3.4
Agreement. Copies of this Agreement, and all amendments
hereto.

 

10.3.5
Financial Statements. Financial statements of the
Company for the six (6) most recent Fiscal Years.

 

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10.3.6 Books and Records.
The Company's books and records for at least the current and past six (6) Fiscal Years.

 

10.3.7 Other Information.
Such other information and records as the Act may require to be made available to the Members.

 

Upon request of any Member, the Manager shall
promptly deliver to such Member or its authorized representative a copy of any of the information maintained under Sections 10.3.1
through 10.3.7. The cost of providing such copies to the Members shall be borne by the requesting Member. The authorized representative
of each Member shall have the right any time during regular business hours and with prior notice to examine and copy any of the
documents described in this Section 10.3.

 

10.4 Tax Matters
Partner. ARC shall be the "tax matters partner" as defined in the Code. Subject to the constraints otherwise
contained in this Agreement, ARC shall undertake and perform all of the rights, duties and obligations of the tax matters partner
pursuant to the Code. The Company shall reimburse ARC for all costs incurred by it in connection with acting as tax matters partner.

 

10.5 Disposition
of Documents and Records on Occurrence of Certain Events. All documents, books and records of the Company maintained under
this Article 10 shall, upon dissolution and termination of the Company under Article 11, be retained or deposited by the Manager
or a trustee designated by the Manager. The Manager or such trustee shall retain such documents, books and records within the
continental United States, for a period of not less than six years and shall make such documents, books and records available
during normal business hours to each Member for inspection and copying at such Member's cost and expense. If a Member's Interest
in the Company is purchased by the other Member and the Company is not continued, then all such documents, books and records shall
be maintained by the purchasing Member at its then principal place of business, for a period of not less than six years thereafter,
and all such documents, books and records shall be available for inspection, examination and copying by the authorized representative
of the selling Member at its own expense upon five Business Days' advance notice during such six-year period.

 

ARTICLE 11 

 

DISSOLUTION AND LIQUIDATION

 

11.1 Termination and Dissolution.
The Company shall terminate and dissolve upon the earliest to occur of the following:

 

11.1.1 Decision of ARC. The decision by ARC
to dissolve the Company.

 

11.1.2 Sale
of Assets. The sale or other disposition of all or
substantially all of the Company property other than cash and cash equivalents, provided that if the Company receives a note as
consideration therefor, the Company shall not be dissolved until such note is paid in full, however, in such case, ARC shall have
the option to buy out DASCO at an amount equal to Dasco's initial Capital Contribution.

 

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Except as provided above, notwithstanding
Section 18-801(4) of the Act, the death, retirement, resignation, expulsion, bankruptcy or withdrawal of a Member shall not cause
a dissolution of the Company.

 

11.2 Procedure.
Upon dissolution of the Company pursuant to this Agreement or applicable law, the Manager shall immediately commence to
wind up its affairs. The Manager shall take full account of the assets and liabilities of the Company, and shall thereafter liquidate
the property of the Company. Notwithstanding dissolution of the Company, the business of the Company and the affairs of the Members,
as such, shall continue to be governed by this Agreement, but shall be confined to those activities reasonably necessary to wind
up the Company's affairs, discharge its obligations and preserve and distribute its assets as provided by this Article 11. The
liquidation of the Company property shall be carried on in an orderly fashion over a reasonable period of time according to established
and sound practices for the disposition of real property.

 

11.3 Distribution of Assets.
Upon dissolution of the Company, the Manager shall apply and distribute the Company assets in the following order of priority:

 

11.3.1
Creditors. Payment of the bona fide claims of creditors of the Company (including Members and
their Affiliates) and the expenses of liquidation, in the order of priority provided by law.

 

11.3.2 Reserves.
Establishment of any Reserves which the Manager deems reasonably necessary for any contingent or unforeseen liabilities
or obligations of the Company. The funds set aside as Reserves shall be deposited with a bank, as trustee, to be held by it in
an interest-bearing account for disbursement under the direction of the Manager in payment of contingent or unforeseen liabilities
or obligations of the Company, and at the expiration of such period as the Manager deems advisable, shall be distributed in accordance
with the provisions set forth below.

 

11.3.3 Balance. The
balance of the assets, if any, to the Members pursuant to the provisions of Article 5.

 

11.3.4 Deficit
Make-Up Not Required. No Member shall be required to make any payment to the Company, any Member or any creditor of the
Company or of any Member by reason of having a deficit balance in its Capital Account following the liquidation of the Company
or at any other time.

 

11.4 Distributions
and Allocations. During the period of liquidation and winding up of the Company, the Members shall continue to share in
Distributions and Profits and Losses in the same manner as before dissolution pursuant to Articles 5 and 6.

 

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11.5 Effective Date
of Dissolution; In Kind Assets. Dissolution of the Company shall be effective as of the date of the occurrence of the
event giving rise to dissolution as provided in Section 11.1, but the Company shall not terminate until the assets of the Company
have been distributed as provided in Section 11.3. If any part of the assets of the Company consists of notes or accounts receivable,
or other non-cash assets, the Manager shall take whatever steps it deem necessary or appropriate to convert such assets into cash,
or into any other form which would facilitate distribution thereof hereunder. Each Member shall have the right to bid on and purchase
any of the assets being sold. If despite diligent effort, at the time of termination of the Company, the Company owns non-cash
assets, such as work in progress, notes, deeds of trust, or similar assets, then such assets shall be distributed to each Member
in lieu of cash, proportionately to such Member's right to receive the assets of the Company under Section 11.3 on an equitable
basis, reflecting the Fair Market Value of such assets so distributed, which Fair Market Value shall be determined by appraisal
in accordance with the procedure specified in Section 9.15, adjusted as reasonably necessary to reflect the nature of the asset
being appraised.

 

11.6 Certificate
of Cancellation. Upon completion of the liquidation of the Company and the distribution of all Company property,
the Company shall terminate and the Manager shall execute and record a Certificate of Cancellation of the Company as well as any
and all documents required or considered advisable by the Manager to effectuate and evidence the dissolution and termination of
the Company.

 

ARTICLE 12 

 

REPRESENTATIONS AND WARRANTIES

 

12.1 Representations
and Warranties of ARC. ARC represents and warrants to DASCO as follows as of the date hereof:

 

(a)          ARC
is a limited partnership duly organized, validly existing and in good standing under the laws of the State of Delaware.

 

(b)          The
execution and delivery of this Agreement and all other documents, instruments and agreements to be executed in connection with
the transactions contemplated by this Agreement (the "Transaction Documents") have been duly and validly authorized
by all necessary actions of ARC, and shall constitute the legal, valid and binding obligations of ARC enforceable against ARC
in accordance with the terms hereof and thereof except as the enforcement thereof may be limited by bankruptcy, insolvency, reorganization,
liquidation, receivership, moratorium or other similar laws related to or affecting the enforcement of creditors' rights generally
or by general principles of equity, regardless of whether such enforceability is considered in a proceeding in equity or at law.

 

(c)          No
consent, waiver, approval or authorization of or notice to any other Person (including any government entity) is required to be
made, obtained or given by ARC in connection with the execution and delivery of this Agreement or any other Transaction Document
except for those which have been heretofore obtained.

 

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(d)          Neither
the execution or delivery of this Agreement nor any other Transaction Document does or will, with or without the giving of notice,
lapse of time or both, (i) violate or constitute a default under any term or provision of (A) any agreement to which ARC is a
party or by which it is bound, or (B) any judgment, decree, order, statute, injunction, rule or regulation of a government entity
applicable to ARC, or by which it or its assets or properties are bound, or (ii) result in the creation of any lien or encumbrance
upon ARC or its assets.

 

(e)          ARC
is a United States person within the meaning of Code Section 7701(a)(30).

 

12.2 Representations
and Warranties of DASCO. DASCO represents and warrants to ARC as follows as of the date hereof:

 

(a)          DASCO
is a Florida limited liability company duly organized, validly existing and in good standing under the laws of the State of Florida.

 

(b)          The
execution and delivery of the Transaction Documents have been duly and validly authorized by all necessary actions of DASCO, and
shall constitute the legal, valid and binding obligations of DASCO enforceable against DASCO in accordance with the terms hereof
and thereof except as the enforcement thereof may be limited by bankruptcy, insolvency, reorganization, liquidation, receivership,
moratorium or other similar laws related to or affecting the enforcement of creditors' rights generally or by general principles
of equity, regardless of whether such enforceability is considered in a proceeding in equity or at law.

 

(c)          No
consent, waiver, approval or authorization of or notice to any other Person (including any government entity) is required to be
made, obtained or given by DASCO in connection with the execution and delivery of this Agreement or any other Transaction Document
except for those which have been heretofore obtained.

 

(d)          Neither
the execution or delivery of this Agreement nor any other Transaction Document does or will, with or without the giving of notice,
lapse of time or both, (i) violate or constitute a default under any term or provision of (A) any agreement to which DASCO is
a party or by which it is bound, or (B) any judgment, decree, order, statute, injunction, rule or regulation of a government entity
applicable to DASCO, or by which it or its assets or properties are bound, or (ii) result in the creation of any lien or encumbrance
upon DASCO or its assets.

 

(e)          DASCO
is a United States person within the meaning of Code Section 7701(a)(30).

 

(f)          The
sole asset of DASCO is its interest in the Company.

 

    	35

    	 

    

 

12.3 Brokers.
Each Member represents and warrants to the other Member that it has not dealt with any real estate broker or finder
in connection with the formation of the Company or its transactions contemplated herein. ' ARC hereby indemnifies and holds harmless
the Company, each Property Entity and DASCO from and against any and against any losses, costs and expenses resulting from any
claim that may be made against DASCO, the Company or any Property Entity by any broker, or any other person, claiming a commission,
fee or other compensation by reason of this transaction, if the same shall arise by, through or on account of any alleged act
of ARC or any of its Affiliates. DASCO hereby indemnifies and holds harmless the Company, each Property Entity and ARC from and
against any and against any losses, costs and expenses resulting from any claim that may be made against ARC, the Company or any
Property Entity by any broker, or any other person, claiming a commission, fee or other compensation by reason of this transaction,
if the same shall arise by, through or on account of any alleged act of DASCO or any of its Affiliates.

 

12.4 Survival.
The representations and warranties provided for in Section 12.1 and Section 12.2 shall survive the execution of this Agreement
for a period of one year (the "Survival Period"), before the expiration of which the party claiming a breach must have
notified the other in writing of the alleged breach. In furtherance thereof, each Member acknowledges and agrees that such Member
shall have no right to make any claim against any other Member on account of any breach of any representation or warranty contained
in Section 12.1 or Section 12.2 unless an action on account thereof shall be filed within one year following the execution of
this Agreement. To the fullest extent permitted by law, the foregoing shall constitute an express waiver of any applicable statute
of limitations on account of a Member's breach of its representations and warranties contained in Section 12.1 and Section 12.2.
The representations and warranties and indemnifications contained in Section 12.3 shall survive the execution of this Agreement
indefinitely.

 

ARTICLE 13 

 

MISCELLANEOUS

 

13.1 Amendments. This Agreement
may be amended at any time and from time to time only by an amendment in writing, executed by each of the Members.

 

13.2 Notices.
All notices, demands, requests or other communications (collectively, "Notices")
which may be or are required to be given, served, or sent by any party to any other party pursuant to this Agreement shall
be in writing and shall be hand delivered or transmitted by e-mail (with the original to be
sent the same day by Federal Express or other nationally recognized overnight delivery service) or by Federal Express or other
nationally recognized overnight delivery service addressed to the recipient at its address set forth below (or at such other address
as the recipient may theretofore have designated in writing). Each Notice which shall be hand delivered or sent by Federal Express
in the manner described shall be deemed sufficiently given, served, sent, received, or delivered for all purposes on the day the
Notice is delivered to the addressee (with the return receipt, the delivery receipt, or the affidavit of messenger being deemed
conclusive (but not exclusive) evidence of such delivery), provided that such day is a Business Day (if such day is not a Business
Day, such Notice shall be deemed given and received on the first Business Day following such day), or if delivery is refused,
then on the day that delivery of the Notice is refused by the addressee upon presentation, provided that such day is a Business
Day (if such day is not a Business Day, such Notice shall be deemed given and received on the first Business Day following such
day). Each Notice which shall be e-mailed in the manner described above shall be deemed sufficiently given, served, sent, received,
or delivered for all purposes on the date of such e-mail provided that (i) such e-mail is received (y) prior to 5:00 P.M. (EST)
on a Business Day (if such email is received on a day that is not a Business Day or such email is received after 5:00 P.M. (EST)
on a Business Day, such Notice shall be deemed given and received on the first Business Day following such day) and (ii) further
provided that the original of such notice is sent by Federal Express or other nationally recognized overnight delivery service,
as provided above. Subject to the above, all Notices shall be addressed as follows:

 

    	36

    	 

    

 

	If to ARC:	American Realty Capital Healthcare Trust
	 	Operating Partnership, L.P.
	 	405 Park Avenue, 12th Floor
	 	New York, NY 10022
	 	Attention: William M. Kahane, President
	 	e-mail: bkahane@arlcap.com
	 	 
	with a copy to:	American Realty Capital Healthcare Trust
	 	Operating Partnership, L.P.
	 	106 York Road
	 	Jenkintown, PA 19046
	 	Attention: Brian S. Block, CFO
	 	e-mail: bblock@arlcap.com
	 	 
	If to DASCO:	Peoria MOB Investors LLC
	 	11360 Jog Road
	 	#200
	 	Attention: Malcolm Sina
	 	e-mail: msina@lendlease.com

 

13.3 Construction.
The provisions of this Agreement shall be construed as a whole according to their common meaning, not strictly
for or against any Member and consistent with the provisions herein contained, in order to achieve the business objectives and
purposes of the Company. The Table of Contents and captions preceding the text of each Article and Section are included only for
convenience of reference and shall be disregarded in the construction or interpretation of this Agreement.

 

13.4 Further
Assurances; Covenant to Sign Documents. Each Member shall take all actions and do all things, and execute, with
acknowledgement or affidavit if required, any and all documents and writings, that may be necessary or advisable in the creation
of the Company, the achievement of its purposes, or the consummation of any matter covered by this Agreement, in accordance with
the applicable terms and conditions of this Agreement.

 

13.5 Successors
and Assigns. Subject to the limitations contained in this Agreement regarding Transfers, this Agreement shall be
binding upon and inure to the benefit of the Members and their respective heirs, successors, assigns and personal representatives.

 

    	37

    	 

    

 

13.6 Entire
Agreement. This Agreement contains the entire agreement of the Members relating to the rights granted and obligations
assumed hereunder. Any prior correspondence, memoranda, agreements, warranties, representations, or other statements, documents
or instruments, whether written or oral, are replaced in their entirety by this Agreement.

 

13.7 No
Waiver. The failure of a Member to insist upon the strict performance of a covenant hereunder or of any obligation
hereunder, irrespective of the length of time for which such failure continues, shall not constitute a waiver of such Member's
right to demand strict compliance in the future.

 

13.8 Governing
Law. This Agreement, the affairs of the Company and the rights and obligations of the Members hereunder shall be
governed by and interpreted in accordance with the laws of the State of Delaware.

 

13.9 Severability.
Invalidation of any provision contained in this Agreement, or of the application thereof to any Person or circumstance,
shall in no way affect any of the other provisions hereof, or the application of such provision to any other Person or circumstance,
and the same shall remain in full force and effect.

 

13.10 Approvals.
All approvals required hereunder shall be made in writing. The giving of an approval by a Member in one instance
shall not limit or waive the necessity to obtain such Member's approval in any other instance.

 

13.11 Days.
Provisions in this Agreement relating to the number of days shall be calendar days, unless otherwise specified;
provided that if the last day for any period to give notice, reply to a notice or to undertake any other action occurs on other
than a Business Day, then the last day for undertaking the action or giving or replying to the notice shall be the next succeeding
Business Day.

 

13.12 Counterparts.
This Agreement may be executed in any number of counterparts, each of which as executed shall constitute an original
and all of which shall constitute one Agreement binding on all the Members.

 

    	38

    	 

    

 

IN WITNESS WHEREOF, the Members
have executed this Agreement as of the clay and year first above written.

 

	 	AMERICAN REALTY CAPITAL

HEALTHCARE TRUST OPERATING

PARTNERSHIP, L.P.,
	 	 	 
	 	By:	/s/ William M. Kahane
	 	 	Name: William M. Kahane
	 	 	Title: President

 

	 	PEORIA MOB INVESTORS LLC
	 	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 

 

    	 

    	 

    

 

IN WITNESS WHEREOF, the Members have
executed this Agreement as of the day and year first above written.

 

	 	AMERICAN REALTY CAPITAL

        HEALTHCARE TRUST OPERATING

        PARTNERSHIP, L.P.,

	 	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 

 

	 	PEORIA MOB INVESTORS LLC
	 	 	 
	 	By:	/s/ Malcolm S. Sina
	 	 	 
	 	Name:	Malcolm S. Sina
	 	 	Title: 	Managing Member 

 

    	 

    	 

    

 

EXHIBIT A

 

PROPERTY

 

	Property Entity	 	Property
	ARHC MNPERIL001, LLC	 	2338 West Sud Parkway, City of Peoria, IL

 

    	 

    	 

    

 

EXHIBIT B

 

REIT GUIDELINES

 

1.            Neither
the Company nor any Property Entity will enter into, as direct or indirect, lessor or licensor, any lease, license, concession
or other agreement or permit any sublease, license, concession or other agreement that provides for rent based in whole or in
part on the income or profits of any Person, excluding for this purpose a lease that provides for rent based in whole or in part
on a fixed percentage or percentages of gross receipts or gross sales of any Person (without reduction for any sublessor costs
in the case of any sublease).

 

2.            Neither
the Company nor any Property Entity will lease, as direct or indirect lessor, personal property, excluding for this purpose a
lease of personal property that is entered into in connection with a lease of real property where the rent attributable to the
personal property is less than 15% of the total rent provided for under the lease.

 

3.            Neither
the Company nor any Property Entity will acquire or hold any debt investments, excluding for these purposes "debt" solely
between wholly-owned subsidiaries of the Company, unless (i) the amount of interest income received or accrued by the Company
under such loan does not, directly or indirectly, depend in whole or in part on the income or profits of any person, and (ii)
the debt is fully and adequately secured by mortgages on real property or on interests in real property.

 

4.            Neither
the Company nor any Property Entity will acquire or hold, directly or indirectly, more than 10% of the outstanding securities
of any one issuer (by vote or value) other than an entity which either (i) is taxable as a partnership for United States federal
income tax purposes, or (ii) has properly elected to be a "taxable REIT subsidiary" of ARC REIT by jointly filing with
REIT IRS Form 8875.

 

5.            Neither
the Company nor any Property Entity will make an election or take any action or fail to take any action that would cause the Company
or any subsidiary or affiliate of the Company to be treated as (i) an entity that is not classified as a partnership or disregarded
entity for U.S. federal income tax purposes or (ii) a publicly traded partnership as defined in Section 7704 of the Code.

 

6.            Neither
the Company nor any Property Entity will enter into any agreement under which the Company or Property Entity receives amounts,
directly or indirectly, for rendering services to the tenants of any property that is owned, directly or indirectly, by the Company
or any Property Entity other than (i) amounts received for services that are customarily furnished or rendered in connection with
the rental of real property of a similar class in the geographic areas in which the Property is located where such services are
either provided by (A) an Independent Contractor (as defined in Section 856(d)(3) of the Code) who is adequately compensated for
such services and from which neither the Company nor any Property Entity, directly or indirectly, derives revenue or (B) a taxable
REIT subsidiary that is adequately compensated for such services or (ii) amounts received for services that are customarily furnished
or rendered in connection with the rental of space for occupancy only (as opposed to being rendered primarily for the convenience
of the tenants of the Company or Property Entity).

 

    	 

    	 

    

 

7.            Neither
the Company nor any Property Entity will enter into any agreement if a material amount of income received or accrued by the Company
or Property Entity under the agreement, directly or indirectly, does not qualify as either (i) "rents from real property"
or (ii) "interest on obligations secured by mortgages on real property or on interests in real property," in each case
as such terms are defined in Section 856 of the Code.

 

8.            Neither
the Company nor any Property Entity will hold cash available for operations or distribution in any manner other than a traditional
bank checking or savings account.

 

9.            Neither
the Company nor any Property Entity will sell or dispose of any property, subsidiary or other asset prior to (i) the completion
of a two-year holding period beginning on the date the Company or Property Entity acquires a direct or indirect interest in such
property and begins to hold such property, subsidiary or asset for the production of rental income, and (ii) the satisfaction
of any other requirements under Section 857 of the Code necessary for the avoidance of a prohibited transaction tax on the REIT.
Notwithstanding the foregoing, the Company or a Property Entity may sell or dispose of any such property, subsidiary or asset
on prior written notice from the Manager to each Member.

 

10.          Neither
the Company nor any Property Entity shall, directly or indirectly, allocate or distribute gains to ARC that would cause ARC REIT
to violate either of the gross income tests under Section 856(c)(2) or Section 856(c)(3).

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